NI 43-101 Updated Technical Report Pan Gold Project White Pine County, Nevada

Effective Date: June 30, 2017 Report Date: July 7, 2017

Report Prepared for And

GRP Minerals Corp. Fiore Exploration Ltd 8310 South Valley Highway Suite 3123, Suite 180 595 Burrard Street Englewood, Colorado 80112 Vancouver, BC V7X 1J1

Report Prepared by

SRK Consulting (U.S.), Inc. 5250 Neil Road, Suite 300 Reno, NV 89502

SRK Project Number: 493800.050

Signed by Qualified Persons: J. B. Pennington, M.Sc., C.P.G. Kent Hartley, P.E. Justin Smith, P.E., RM-SME. Deepak Malhotra, RM-SME Valerie Sawyer, RM-SME Brooke J. Miller, M.Sc., C.P.G.

Reviewed by: John Tinucci, PhD, PE

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Table of Contents 1 Summary ...... 1 1.1 Property Description and Ownership ...... 1 1.2 Geology and Mineralization ...... 2 1.3 Status of Exploration, Development and Operations ...... 3 1.3.1 Status of Operations and Development ...... 3 1.3.2 Restarting Pan and Achieving Commercial Production ...... 3 1.3.3 New Mine Operating Team and Staff ...... 4 1.3.4 Operational Changes ...... 4 1.3.5 Capital Investment ...... 7 1.3.6 Status of Exploration ...... 7 1.4 Mineral Processing and Metallurgical Testing ...... 8 1.5 Mineral Resource Estimate ...... 8 1.6 Mineral Reserve Estimate ...... 10 1.7 Mining Methods ...... 11 1.8 Recovery Methods ...... 12 1.9 Project Infrastructure ...... 13 1.10 Environmental Studies and Permitting ...... 13 1.11 Capital and Operating Costs ...... 14 1.11.1 Capital Cost Summary ...... 14 1.11.2 Operating Cost Summary ...... 14 1.12 Economic Analysis ...... 15 1.13 Conclusions and Recommendations ...... 16 2 Introduction ...... 18 2.1 Terms of Reference and Purpose of the Report ...... 18 2.2 Qualifications of Consultants (SRK) ...... 18 2.3 Details of Inspection ...... 19 2.4 Sources of Information ...... 19 2.5 Effective Date ...... 19 2.6 Units of Measure ...... 20 3 Reliance on Other Experts ...... 21 4 Property Description and Location ...... 22 4.1 Property Location ...... 22 4.2 Mineral Titles ...... 23 4.2.1 Nature and Extent of Issuer’s Interest ...... 24 4.3 Royalties, Agreements and Encumbrances ...... 24

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4.4 Environmental Liabilities and Permitting ...... 25 4.4.1 Environmental Liabilities ...... 25 4.4.2 Required Permits and Status ...... 25 4.5 Other Significant Factors and Risks ...... 27 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ...... 28 5.1 Topography, Elevation and Vegetation ...... 28 5.2 Accessibility and Transportation to the Property ...... 28 5.3 Climate and Length of Operating Season ...... 28 5.4 Sufficiency of Surface Rights ...... 28 5.5 Infrastructure Availability and Sources ...... 28 6 History ...... 31 6.1 Prior Ownership and Ownership Changes ...... 31 6.2 Exploration and Development Results of Previous Owners ...... 31 6.3 Historical Mineral Resource and Reserve Estimates ...... 33 6.3.1 Echo Bay ...... 33 6.3.2 Alta Bay Joint Venture ...... 34 6.3.3 Latitude Minerals Corporation ...... 35 6.3.4 Castleworth Ventures ...... 36 6.3.5 Midway 2011 ...... 37 6.3.6 Midway 2015 ...... 38 6.4 Historical Production ...... 39 7 Geological Setting and Mineralization ...... 40 7.1 Regional Geology ...... 40 7.2 Local and Property Geology ...... 42 7.2.1 Lithology and Stratigraphy ...... 42 7.2.2 Alteration ...... 46 7.2.3 Structure ...... 47 7.3 Significant Mineralized Zones ...... 48 7.3.1 Type ...... 48 7.3.2 Character ...... 48 7.3.3 Distribution...... 48 8 Deposit Type ...... 49 8.1 Mineral Deposit ...... 49 8.2 Geological Model ...... 49 9 Exploration ...... 50 9.1 Relevant Exploration Work ...... 50 9.2 Sampling Methods and Sample Quality ...... 50

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9.3 Significant Results and Interpretation ...... 50 9.3.1 Near Mine Targets ...... 50 9.3.2 Step-Out Targets ...... 52 10 Drilling ...... 54 10.1 Type and Extent ...... 54 10.2 Procedures ...... 57 10.3 Interpretation and Relevant Results ...... 57 11 Sample Preparation, Analysis and Security ...... 63 11.1 Security Measures ...... 63 11.2 Sample Preparation for Analysis ...... 64 11.3 Sample Analysis ...... 64 11.4 Quality Assurance/Quality Control Procedures ...... 65 11.4.1 Reference Samples ...... 65 11.4.2 Blank Samples ...... 71 11.4.3 Duplicate Samples ...... 72 11.4.4 Actions ...... 74 11.4.5 Results ...... 74 11.5 Opinion on Adequacy ...... 74 12 Data Verification ...... 75 12.1 Procedures ...... 75 12.1.1 Drillhole Location Verification ...... 75 12.1.2 Logged Geology Verification ...... 75 12.1.3 Gold Value Verification ...... 76 12.2 Limitations ...... 77 12.3 Opinion on Data Adequacy ...... 77 13 Mineral Processing and Metallurgical Testing ...... 78 13.1 Testing and Procedures ...... 78 13.2 Relevant Results ...... 78 13.2.1 Metallurgical Study Test Work, 2011 to 2015 ...... 78 13.2.2 Metallurgical Operating Practices from 2014 to 2015 ...... 79 13.2.3 Metallurgical Test work by GRP after May 2017 ...... 80 13.2.4 Conclusions from the characterization work ...... 87 13.2.5 Recommendations for future work ...... 88 13.2.6 Static Leach Tests ...... 88 13.2.7 Over all Conclusions from the GRP-generated Metallurgical test work ...... 97 13.3 Historical Metallurgical Report ...... 97 13.3.1 Ore Sampling and Test Work ...... 97

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13.3.2 Recent Metallurgical Test Work ...... 98 14 Mineral Resource Estimate ...... 120 14.1 Introduction ...... 120 14.2 Project Coordinates and Topography ...... 121 14.3 Drillhole Database ...... 121 14.4 Geologic Model ...... 121 14.5 Mineral Domains for Interpolation ...... 125 14.6 Block Model ...... 126 14.7 Assay Capping ...... 127 14.8 Compositing ...... 128 14.9 Variogram Analysis and Modeling ...... 130 14.10 Grade Estimation ...... 135 14.11 Density Modeling ...... 137 14.12 Model Validation ...... 138 14.12.1 Visual Comparison ...... 138 14.12.2 Comparative Statistics ...... 150 14.12.3 Swath Plots ...... 150 14.13 Resource Classification...... 152 14.14 Mineral Resource Statement ...... 153 14.14.1 Calculation of Cut-off Grade ...... 154 14.14.2 Pit Limited Resource ...... 154 14.15 Mineral Resource Sensitivity ...... 156 14.16 Relevant Factors ...... 158 14.17 Resource Potential ...... 158 15 Mineral Reserve Estimate ...... 162 15.1 Conversion Assumptions, Parameters and Methods ...... 162 15.1.1 Dilution ...... 162 15.1.2 Break Even Cut-off Grade ...... 163 15.1.3 Internal Cut-off Grade ...... 163 15.2 Reserve Estimate ...... 163 15.3 Relevant Factors ...... 164 16 Mining Methods ...... 165 16.1 Current or Proposed Mining Methods ...... 165 16.2 Parameters Relevant to Mine or Pit Designs and Plans ...... 165 16.2.1 Geotechnical Design - Pits ...... 166 16.2.2 Geotechnical Design – Waste Rock Disposal Areas ...... 166 16.2.3 Hydrological ...... 167

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16.3 Pit Optimization ...... 167 16.3.1 Mineral Resource Models ...... 167 16.3.2 Topographic Data ...... 167 16.3.3 Optimization Parameters and Constraints ...... 167 16.3.4 Optimization Results ...... 169 16.4 Design Criteria ...... 172 16.5 Mining Losses ...... 179 16.6 Mine Production Schedule ...... 180 16.6.1 Mine Production ...... 180 16.6.2 Pit Schedule Sequence ...... 181 16.7 Waste and Stockpile Design ...... 193 16.8 Mining Fleet and Requirements ...... 194 16.8.1 General Requirements and Fleet Selection ...... 194 16.8.2 Drilling and Blasting ...... 195 16.8.3 Loading and Hauling ...... 195 16.8.4 Support and Auxiliary Equipment ...... 195 16.8.5 Manpower ...... 195 16.8.6 Ore Control ...... 195 16.9 Mine Dewatering ...... 196 16.9.1 Water Data Sources ...... 196 16.9.2 Surface Water ...... 196 16.9.3 Groundwater ...... 196 16.9.4 Dewatering System ...... 196 17 Recovery Methods ...... 197 17.1 Operation Results ...... 197 17.2 Processing Methods ...... 198 17.3 Flowsheet ...... 198 17.4 Plant Design and Equipment Characteristics...... 201 17.4.1 Crushing and Conveying ...... 201 17.4.2 Leach Pad ...... 204 17.4.3 Recovery Plant ...... 208 17.4.4 Assay Lab ...... 210 17.5 Consumable Requirements ...... 213 17.5.1 Power ...... 213 17.5.2 Water ...... 213 17.5.3 Major Reagents ...... 214 17.5.4 Labor Requirements ...... 214

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18 Project Infrastructure ...... 215 18.1 Infrastructure and Logistic Requirements ...... 215 18.1.1 On-Site Infrastructure ...... 215 18.1.2 Water Supply and Site Water Management ...... 216 18.1.3 Service and Access Roads ...... 216 18.1.4 Mine Operations and Support Facilities ...... 217 18.1.5 Process Support Facilities ...... 217 18.1.6 Additional Support Facilities ...... 217 18.1.7 Power Supply and Distribution ...... 218 18.2 Heap Leach Pad ...... 218 19 Market Studies and Contracts ...... 219 19.1 Contracts and Status ...... 219 20 Environmental Studies, Permitting and Social or Community Impact ...... 220 20.1 Required Permits and Status ...... 220 20.2 Environmental Study Results ...... 222 20.2.1 Special Status Plant and Animal Species ...... 222 20.2.2 Wild Horses ...... 224 20.2.3 Cultural Resources ...... 224 20.2.4 Mine Waste Characterization and Management ...... 225 20.2.5 Surface and Groundwater Characterization ...... 225 20.2.6 Visual Resources ...... 226 20.3 Environmental Issues ...... 226 20.4 Operating and Post Closure Requirements and Plans ...... 226 20.4.1 Developed Operations ...... 226 20.4.2 Period of Operations ...... 226 20.4.3 Planned Operating Procedures ...... 227 20.5 Post-Performance or Reclamations Bonds ...... 228 20.6 Social and Community ...... 228 20.7 Mine Closure ...... 228 20.8 Reclamation Measures During Operations and Project Closure ...... 229 20.8.1 Reclamation of Open Pits ...... 230 20.8.2 Reclamation of WRDA ...... 230 20.8.3 Reclamation of the Heap Leach Facility ...... 231 20.9 Closure Monitoring ...... 231 20.10 Reclamation Bond and Closure Cost Estimate ...... 232 21 Capital and Operating Costs ...... 234 21.1 Capital Cost Estimates ...... 234

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21.1.1 Basis for Capital Cost Estimates ...... 234 21.1.2 Heap Leach Construction Cost ...... 234 21.1.3 Crushing, Agglomeration, and Conveying Cost ...... 234 21.1.4 Other Capital Costs ...... 235 21.1.5 Reclamation Cost ...... 235 21.2 Operating Cost Estimates ...... 235 21.2.1 Basis for Operating Cost Estimates ...... 236 21.2.2 Mining Cost Estimates ...... 236 21.2.3 Processing Cost Estimates ...... 237 21.2.4 General and Administrative Cost Estimate ...... 239 22 Economic Analysis ...... 240 22.1 Principal Assumptions and Input Parameters ...... 240 22.2 Cash Flow Forecasts and Annual Production Forecasts ...... 240 22.3 Taxes, Royalties and Other Interests ...... 243 22.3.1 Federal Income Tax ...... 243 22.3.2 Royalties ...... 243 22.4 Sensitivity Analysis ...... 243 23 Adjacent Properties ...... 245 24 Other Relevant Data and Information ...... 246 25 Interpretation and Conclusions ...... 247 25.1 Exploration ...... 248 25.2 Mineral Resource Estimate ...... 248 25.3 Mining and Mineral Reserve ...... 249 25.4 Metallurgy and Processing ...... 249 25.5 Projected Economic Outcomes ...... 249 25.6 Foreseeable Impacts of Risks ...... 250 26 Recommendations ...... 251 26.1 Recommended Work Programs and Costs ...... 251 26.1.1 Costs ...... 252 27 References ...... 254 28 Glossary ...... 256 28.1 Mineral Resources ...... 256 28.2 Mineral Reserves ...... 256 28.3 Definition of Terms ...... 257 28.4 Abbreviations ...... 258

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List of Tables Table 1-1: Mineral Resource Statement for the Pan Gold Deposit, White Pine County, Nevada, USA. February 10, 2017 ...... 10 Table 1-2: Pan Project Mineral Reserve Estimate as of March 16, 2017 ...... 11 Table 1-3: Capital Cost Summary ...... 14 Table 1-4: Operating Cost Summary ...... 14 Table 1-5: Indicative Economic Results ...... 15 Table 2-1: Site Visit Participants ...... 19 Table 4-1: Pan Royalty Schedule ...... 25 Table 4-2: Status of Major Permits, Authorizations, and Licenses as of June 2017 ...... 26 Table 6-1: Project Drilling History ...... 33 Table 6-2: Echo Bay Polygonal Ore Reserve Estimation, 1988 ...... 34 Table 6-3: Alta Bay Polygonal Geologic Ore Reserves, 1990 ...... 34 Table 6-4: Alta Bay Computer Generated Ore Reserves, 1990 ...... 34 Table 6-5: Alta Bay Polygonal Geologic Ore Reserves, 1991 ...... 35 Table 6-6: Alta Bay Computer Model Generated Recoverable Ore Reserves, 1991 ...... 35 Table 6-7: Latitude Resource Estimate, 1999 ...... 36 Table 6-8: Castleworth Ventures Resource Estimate, 2005 ...... 37 Table 6-9: Midway Resource Estimate, 2011 ...... 38 Table 6-10: Midway Reserves Statement, 2011 ...... 38 Table 6-11: Midway Resource Estimate, 2015 ...... 38 Table 6-12: Midway Reserves Statement, 2015 ...... 39 Table 6-13: Historical Gold Production at Pan ...... 39 Table 9-1: Near Mine Exploration Targets ...... 52 Table 11-1: Gold Analysis Methods ...... 65 Table 11-2: Certified Reference Material Mean Values ...... 66 Table 12-1: Drillholes Selected for Verification...... 75 Table 13-1: Head Analyses of Composite Samples Including ICP ...... 81 Table 13-2: XRF Analysis ...... 82 Table 13-3: Summary of XRD Results ...... 82 Table 13-4: Particle Size Distribution of Crushed Samples ...... 84 Table 13-5: Agglomeration Tests ...... 84 Table 13-6: Bottle Roll Leach Results ...... 85 Table 13-7: Carbon Test Results ...... 86 Table 13-8: Particle Size and Precious Metal Distribution (North Pan) ...... 90 Table 13-9: Static Leach Results ...... 91 Table 13-10: Lithology of Composite Samples ...... 98

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Table 13-11: Head Analyses of Composite Samples ...... 99 Table 13-12: XRF Analyses of Surface Samples ...... 100 Table 13-13: XRF Analysis – Different Rock Types ...... 100 Table 13-14: XRD Test Results ...... 101 Table 13-15: ICP Analyses of Composite Samples ...... 101 Table 13-16: Crushability and Abrasion Test Results ...... 102 Table 13-17: Static Bucket Leach Test Results ...... 104 Table 13-18: Bottle Roll Cyanidation Test Results – Composite Sample, 6-mesh ...... 105 Table 13-19: Bottle Roll Cyanidation Test Results – Composite Sample, 200-mesh ...... 106 Table 13-20: Assay-by-Size Fraction Data ...... 108 Table 13-21: Summary of Column Leach Test Results for North Pan Samples ...... 110 Table 13-22: Summary of Column Leach Test Results for South Pan Samples ...... 111 Table 13-23: Percolation Test Results ...... 112 Table 13-24: Residue Assay-by-Size Data ...... 113 Table 13-25: Pregnant Solution Analyses ...... 113 Table 13-26: Pregnant Solution Analyses ...... 114 Table 13-27: Agglomeration Test Results ...... 115 Table 13-28: Size Distribution of Feed to Different Size Columns ...... 115 Table 13-29: Summary of Column Leach Test Results ...... 116 Table 13-30: Summary of Locked-Cycle Column Leach Test Results Performed at PE ...... 117 Table 13-31: Gold Extraction as a Function of Feed Size ...... 118 Table 13-32: Summary of Column Leach Test Results ...... 118 Table 14-1: Pan 3D Block Model Extents ...... 127 Table 14-2: Pan 3D Block Model Items ...... 127 Table 14-3: Gold Assay Capping Values for Pan Modeling ...... 128 Table 14-4: Pan Gold Composite Statistics by Lithology and Interpolation Domain ...... 129 Table 14-5: Variogram (Correlogram) Parameters by Interpolation Domain ...... 133 Table 14-6: Ordinary Kriging Interpolation Parameters for the Pan Gold Estimation ...... 136 Table 14-7: Density Statistics by Material Type and Formation ...... 137 Table 14-8: Density Assignments by Material Type Used in Modeling...... 138 Table 14-9: Model Validation - Modeled Au OK vs. ID2 vs. Au NN vs. Composite Au CAP ...... 150 Table 14-10: Mineral Resource Statement for the Pan Gold Deposit, White Pine County, Nevada, USA. February 10, 2017 ...... 154 Table 14-11: Pan Total MI&I Resource Sensitivity within the 2017 SRK Resource Pit ...... 157 Table 14-12: Optimized Pit Price Sensitivity Material Quantities Reported at Fixed Au Cut-offs ...... 160 Table 15-1: Pan Project Mineral Reserve Estimate as of March 16, 2017 ...... 164 Table 16-1: Geotechnical Criteria for Mine Design ...... 166 Table 16-2: Design Criteria for Waste Rock Disposal Areas ...... 166

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Table 16-3: Pit Optimization Parameters ...... 168 Table 16-4: Ultimate LG Pit Material Quantities, US$1,200 Gold Sale Price ...... 169 Table 16-5: Pit Design Criteria ...... 172 Table 16-6: Reserves by Pit Phase ...... 173 Table 16-7: Mining Losses ...... 180 Table 16-8: Annual Production Schedule ...... 181 Table 16-9: Production Schedule by Pit ...... 181 Table 16-10: Mine Production Equipment ...... 194 Table 16-11: Personnel Requirements ...... 195 Table 17-1: Crushing and Stacking Design Parameters ...... 202 Table 17-2: Summary of Heap Leach Design Parameters ...... 204 Table 17-3: Major Recovery Plant Equipment ...... 210 Table 17-4: 24-hr/7-day per week Scheduled Labor ...... 214 Table 17-5: 10-hr/5-day per week Scheduled Labor ...... 214 Table 17-6: Management and Technical Labor ...... 214 Table 18-1: Maximum Water Usage ...... 216 Table 20-1: Status of Major Permits, Authorizations, and Licenses as of June 2017 ...... 221 Table 20-2: Summary of Authorized Phase 1 and Life-of-Mine Disturbance ...... 227 Table 21-1: Heap Leach Phase 2A Construction Cost ...... 234 Table 21-2: Crusher Cost Estimate ...... 235 Table 21-3: Other Life-of-Mine Capital Costs ...... 235 Table 21-4: Operating Cost Summary ...... 236 Table 21-5: Mining Contractor Cost ...... 237 Table 21-6: Other Mining Costs ...... 237 Table 21-7: Mine Production Costs ...... 237 Table 21-8 Major Element Process Cost for ROM Ore ...... 238 Table 21-9: Major Element Process Cost for Crushed Ore ...... 238 Table 21-10: Labor Cost ...... 238 Table 21-11: Power Cost ...... 238 Table 21-12: Cost of Consumables ...... 239 Table 22-1: Financial Assumption for Economic Modeling ...... 240 Table 22-2: Mine Production Summary ...... 241 Table 22-3: Process Production Summary ...... 241 Table 22-4: Project Economic Results ...... 242 Table 22-5: Cash Cost ...... 242 Table 22-6: Project Sensitivities ...... 244 Table 22-7: Project Sensitivity to Metal Price ...... 244

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Table 26-1: Exploration Recommendations and Cost Estimate ...... 251 Table 26-2: Summary of Costs for Recommended Work, 2017-2018 ...... 253 Table 28-1: Definition of Terms ...... 257 Table 28-2: Abbreviations ...... 258

List of Figures Figure 1-1: Project Location Map ...... 2 Figure 1-2: Mine Production in 2017 ...... 4 Figure 1-3: Cash Cost for 2017 Production ...... 4 Figure 4-1: Project Location Map ...... 22 Figure 4-2: Land Status Map ...... 23 Figure 5-1: Existing Project Infrastructure ...... 30 Figure 7-1: Regional Geology Map ...... 41 Figure 7-2: Geologic Map of the Pan Mine Area with Conceptual Pit Crests ...... 43 Figure 7-3: Pan Project Stratigraphic Column ...... 44 Figure 9-1: Map of Near Mine Exploration Targets ...... 51 Figure 9-2: Step-Out Targets ...... 53 Figure 10-1: Pan North Area Drillhole Collars ...... 55 Figure 10-2: Pan South Area Drillhole Collars ...... 56 Figure 10-3: Fire Assay Gold Results in 2016 South Drill holes, 14,271,045N ...... 58 Figure 10-4: Fire Assay Gold Results in 2016 South Drill holes, 14,271,800N ...... 59 Figure 10-5: Fire Assay Gold Results in 2016 South Drill holes, 14,272,300N ...... 60 Figure 10-6: Fire Assay Gold Results in 2016 North Drill holes, 14,279,800N ...... 61 Figure 10-7: Fire Assay Gold Results in 2016 North Drill holes, 14,280,925N ...... 62 Figure 11-1: Open Sample Bin, During Drilling ...... 63 Figure 11-2: Closed Sample Bin, after Drillhole Completion ...... 64 Figure 11-3: OREAS 15f Results ...... 66 Figure 11-4: OREAS 2Pd Results ...... 67 Figure 11-5: OREAS 6Pc Results ...... 68 Figure 11-6: CDN OxC129 Results ...... 69 Figure 11-7: CDN OxE126 Results ...... 70 Figure 11-8: CDN OxJ120 Results ...... 71 Figure 11-9: Pan 2016 Blank Sample Results ...... 72 Figure 11-10: Duplicate Samples Relative Difference by Grade ...... 73 Figure 11-11: Duplicate Samples Relative Difference by Certificate Date ...... 73 Figure 13-1: Sample Preparation Process ...... 83

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Figure 13-2: Carbon Adsorption Kinetics ...... 87 Figure 13-3: North Pit Sample Locations ...... 89 Figure 13-4: Static Test Results, Pan North, plus 6 Inch ...... 92 Figure 13-5: Static Test Results, Pan North, 2 x 6 Inch ...... 93 Figure 13-6: Static Test Results, Pan North, 1 x 2 Inch ...... 94 Figure 13-7: Static Test Results, Pan North, minus 1 Inch ...... 95 Figure 13-8: Static Test Results, Pan South ...... 96 Figure 13-9: South Pan Gold Recovery vs Crush Size ...... 117 Figure 14-1: Resource drilling in model area, showing resource pit outlines (red) ...... 123 Figure 14-2: 3D Geologic Model, Plan View ...... 124 Figure 14-3: 3D Geology Model, Perspective View ...... 124 Figure 14-4: Pan Interpolation Domains ...... 126 Figure 14-5: Histogram of Raw Assay Gold Values ...... 128 Figure 14-6: Example Correlogram for North Fault Interpolation Domain in Primary Direction (azm 190, dip - 75) ...... 131 Figure 14-7: Example Correlogram for Stratigraphic Interpolation Domain in Primary Direction (azm 60, dip - 55) ...... 132 Figure 14-8: Search Ellipses Relative to Interpolation Domains ...... 134 Figure 14-9: Visual Grade Validation - Plan View ...... 139 Figure 14-10: Visual Grade Validation – Section N 14,270,800 ...... 140 Figure 14-11: Visual Grade Validation – Section N 14,271,300 ...... 141 Figure 14-12: Visual Grade Validation – Section N 14,271,800 ...... 142 Figure 14-13: Visual Grade Validation – Section N 14,272,300 ...... 143 Figure 14-14: Visual Grade Validation – Section N 14,273,500 ...... 144 Figure 14-15: Visual Grade Validation – Section N 14,275,900 ...... 145 Figure 14-16: Visual Grade Validation – Section N 14,278,900 ...... 146 Figure 14-17: Visual Grade Validation – Section N 14,279,600 ...... 147 Figure 14-18: Visual Grade Validation – Section N 14,280,100 ...... 148 Figure 14-19: Visual Grade Validation – Section N 14,280,925 ...... 149 Figure 14-20: East/West Gold Swath Plot – 40 ft Swath Width ...... 151 Figure 14-21: North/South Gold Swath Plot – 60 ft Swath Width ...... 151 Figure 14-22: Elevation Gold Swath Plot – 20 ft Swath Width ...... 152 Figure 14-23: Pan Estimated Blocks Colored by Classification Code ...... 153 Figure 14-24: Pan 2017 Resource Pit in Plan ...... 155 Figure 14-25: Optimized Pit Price Sensitivity Reported at Fixed Au Cut-offs ...... 159 Figure 16-1: LG Pit Tonnages and Net Revenue by Gold Price ...... 170 Figure 16-2: US$1,200 Au Sales Price Ultimate LG Pit ...... 171 Figure 16-3: South Pit Phase 1 Design ...... 174

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Figure 16-4: South Pit and Satellite Pit Final Design ...... 175 Figure 16-5: North Pit Phase 1 Design ...... 176 Figure 16-6: North Pit, Red Hill and Central Pit Final Design ...... 177 Figure 16-7: North Pit Cross-Section ...... 178 Figure 16-8: South Pit Cross-Section ...... 179 Figure 16-9: Gold Ounces to Leach Pad by Mining Year ...... 182 Figure 16-10: Ore and Waste Production by Mining Year ...... 182 Figure 16-11: Ore Production by Pit and Year ...... 183 Figure 16-12: Starting Topography with Facilities Boundaries ...... 184 Figure 16-13: End of 2017 ...... 185 Figure 16-14: End of 2018 ...... 186 Figure 16-15: End of 2019 ...... 187 Figure 16-16: End of 2020 ...... 188 Figure 16-17: End of 2021 ...... 189 Figure 16-18: End of 2022 ...... 190 Figure 16-19: End of 2023 ...... 191 Figure 16-20: Post-Reclamation Topography ...... 192 Figure 16-21: North Pan Final WRDA ...... 193 Figure 16-22: South Pan Final WRDA ...... 194 Figure 17-1: Leach Pad Dozer Cut/ Fill for Panel ...... 198 Figure 17-2: Mining and Processing Flowsheet for Pan Mine ...... 200 Figure 17-3: Crushing System Process Flow Diagram ...... 203 Figure 17-4: Heap Leach Pad Site Layout ...... 206 Figure 17-5: Heap Leach Pad Post-Reclamation ...... 207 Figure 17-6: Pan ADR Plant and Refinery ...... 208 Figure 17-7: Interior of ADR Plant ...... 209 Figure 17-8: Laboratory Plan ...... 212 Figure 18-1: Existing Administrative Area Infrastructure ...... 215 Figure 22-1: Project Sensitivities at 5% Discount Rate ...... 244

Appendices Appendix A: Certificates of Qualified Persons Appendix B: Mineral Claims Appendix C: Nevada Department of Transportation Right-Of-Way Permit

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1 Summary This report was prepared as a feasibility-level National Instrument 43-101 (NI 43-101) Technical Report (Technical Report) for GRP Minerals Corp (GRP) by SRK Consulting (U.S.), Inc. (SRK) on the Pan Gold Project (Pan or the Project). The Pan Mine is owned by GRP Pan, LLC, a Nevada limited liability company and GRP’s wholly owned subsidiary.

GRP acquired the Pan property as part of the acquisition of various mineral assets from subsidiaries of Midway Gold Corp. (Midway) by way of an asset purchase agreement. The acquisition closed on May 17, 2016, following approval of the asset sale by the United Stated Bankruptcy Court for the District of Colorado.

1.1 Property Description and Ownership The Pan property is located in the northern Pancake Range in White Pine County, Nevada, 22 miles southeast of the town of Eureka and 50 miles west of Ely. Location of the property is shown in Figure 1-1. The Project claim boundary encompasses approximately 10,473 acres, and consists of 550 contiguous, active, unpatented lode mining claims. Unpatented lode mining claims are kept active with annual maintenance fees paid to the Bureau of Land Management (BLM) and White Pine County by September 1st of each year.

Effective May 17, 2016, the Pan Mineral Lease dated January 7, 2003 was assigned and conveyed to GRP Pan, LLC.

On July 24, 2017, GRP entered into an arrangement agreement with Fiore Exploration Ltd. (“Fiore”) pursuant to which, among other things, GRP will acquire all of the issued and outstanding common shares of Fiore (the “Transaction”). Upon completion of the Transaction, Fiore will become a wholly- owned subsidiary of GRP. Fiore is presently listed on the TSX Venture Exchange. Following completion of the Transaction, GRP will assume Fiore’s listing on the TSX Venture Exchange and Pan will be the principal mineral property. All references to GRP in this report refer, as the context requires, to GRP following completion of the Transaction and the acquisition of Fiore.

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Source: GRP, 2017 Figure 1-1: Project Location Map

1.2 Geology and Mineralization The Project is located in the eastern sector of the Great Basin Physiographic Province. The current Great Basin landscape is shaped by crustal extension, which began in the middle Tertiary and resulted in north-south trending mountain ranges and wide intervening valleys with thick sedimentary deposits. Mountain ranges are comprised of folded and tilted, Jurassic to Cambrian-age marine sedimentary rocks that have been uplifted on steeply dipping normal faults. Tertiary extension has also caused localized volcanism, resulting in mafic to felsic flow, tuff, and ash units capping sedimentary rocks. Lithologic units in the Pan area are Devonian- to Pennsylvanian-age marine sediments, Cretaceous igneous intrusions, Tertiary volcanic tuffs and debris flows, and minor Tertiary to Quaternary alluvial deposits.

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The Pan gold deposits are Carlin-style, which are epithermal in origin, comprised of disseminated gold hosted in sedimentary rock units. Gold particles occur as micron to submicron size disseminations. Visible or coarse gold is not common in this type of deposit, and has not been observed at Pan. Controls on mineralization in Carlin-style systems and at the Pan Project include both structure and stratigraphy. Pan has three main mineralized zones; North, Central, and South. Gold mineralization follows the Devil’s Gate Limestone – Pilot Shale contact in all three, and is also controlled by steeply- dipping faults that trend north-south or northeast-southwest. North Pan is dominated by silicified solution breccia of Pilot Shale and Devil’s Gate Limestone adjacent to the Branham Fault. Central and South Pan have more argillic alteration than silicic. Mineralization in Central Pan is at the Pilot – Devil’s Gate contact where faults intersect it, and is not associated with the Branham Fault. South Pan mineralization occurs in a wide, clay-altered solution breccia zone along the east side of the Branham Fault, and east of the Branham fault along the Pilot – Devil’s Gate contact.

1.3 Status of Exploration, Development and Operations

1.3.1 Status of Operations and Development Production at the Pan Project began in March of 2015. During initial operation of the Pan mine and heap leach facility, Midway placed 4.2 million tons (Mt) of ore that contained an estimated 44,600 ounces (oz) of gold on the leach pad. The placed ore was predominately South Pan ore that was high in clay content and proved to have permeability problems. A minor amount of North Pan material was placed as overliner on the Phase 1 leach pad and during Midway’s cap and fluff efforts to improve gold recovery during Midway’s bankruptcy. Gold has continually been recovered from the leach pad since March of 2015 with an estimated 30,226 oz recovered from the Midway placed material, implying a 67.8% recovery.

Since acquiring the assets in May 2016, GRP has placed an additional 1.07 Mt of blended North and South Pan rock and clay ores through May 2017. GRP-placed ore contains an estimated 15,473 oz of gold. Total recovered gold since inception through May 2017 is 34,522 oz with an implied total recovery-to-date of 57.5%. The recovered oz will improve as the leach cycle runs to completion.

GRP commissioned the onsite metallurgical/assay lab, changed processing practices, designed capital improvements, hired experienced operations staff, and restarted mining. The exploration drilling program contributed to updated mineral resources and reserves and new ore type identification. GRP also instituted new ore placement techniques to address metallurgical characteristics of the Pan ores, and new grade control practices.

GRP and SRK utilized the knowledge gained as drilling has been completed, along with information from past and present mining, to improve the grade modeling technique used to estimate the mine reserves. Also new in 2017, the lithology and alteration were modeled into the block model to help quantify the material types which will aid in mine planning for ore type (rock and clay) mixing and treatment.

1.3.2 Restarting Pan and Achieving Commercial Production The restart of Pan operations in January 2017 began with trial mining to test and prove mitigation strategies for Midway’s operational issues. As GRP ramps up to commercial production, the mining rate and production are improving as shown on Figure 1-2 and Figure 1-3. These improvements are a result of GRP changes to staffing, operational practices, and capital improvements.

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Figure 1-2: Mine Production in 2017

Figure 1-3: Cash Cost for 2017 Production

1.3.3 New Mine Operating Team and Staff GRP hired new mine management staff: a Mine Manager, Process Manager and Chief Mine Engineer. Together they have more than 75 years of combined mining experience. Additional expertise was added with an Ore Control Geologist mapping the pit geology to aid in determining ore and waste dig limits, and trained staff at the lab to provide timely assay data which improves operations through cost- effective data supporting the mining and processing operations.

GRP’s operations team is committed to conducting mining in a safe and environmentally responsible manner. In 2016, GRP received the Nevada Mining Association’s First Place Mine Operator Safety Award for small surface operations.

1.3.4 Operational Changes Over the course of 2016 calendar year, GRP improved operational procedures. These changes address the whole range of mining operations from blasthole drilling and sampling, ore control, ore mixing and stacking, leaching operations, lab commissioning, and adsorption-desorption-recovery (ADR) process operations. Highlights of the changes GRP has made are described below.

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New Processes and Procedures to Resolve the Metallurgical Challenges There were a number of metallurgical challenges that were apparent during prior mining and processing problems at Pan. GRP has addressed these challenges by:

• Finishing leach pad reconditioning through capping and fluffing with North pit rocky ores. • Blending of rocky and clayey ores to address leach permeability. • Changing heap leach pad heights and ore stacking methodologies to reduce compaction. • Improved solution management practices on the heap leach pad and modifications to the plant to reduce cyanide consumption. • GRP intends to add an additional 2.2 million square feet (M ft2) of leach pad space required to maintain adequate leach cycle times. • GRP intends to add a crushing and agglomeration circuit to blend clay and rocky ores to improve agglomeration and overall gold recoveries.

In June of 2015, around the time when Midway Gold suspended mining operations, efforts to recondition the heap leach pad began. Reconditioning was achieved through capping and fluffing the first lift of ore placed on the heap leach pad. Three to five ft of rocky North pit ore was placed on top of the existing heap, then blended using an excavator and dozer to a depth of 15 to 20 ft. The resulting improved permeability characteristics of the heap, enhanced residual gold recovery, and improved geotechnical stability of the heap. Capping and fluffing was completed in May of 2017.

Current mining operations use a blending process of North pit rock ore and South pit clay ores to alleviate previous permeability issues arising from the placement of high clay content ore on the heap leach pad. A 60% rock ore to 40% clay ore ratio, using ore from both North pit and South pit, is being blended on the heap leach pad to ensure adequate permeability. This blending method was supported by bulk sample testing on the heap leach pad that was completed during Q3 of calendar year 2015. GRP is using the new geologic model that identifies rock types and lithology to better manage mining practices that ensure the operation achieves proper blending to treat metallurgical characteristics of the ore.

Ore stacking methodology on the heap leach pad has been changed to reduce compaction and facilitate blending of rock and clay ores. A new ore loading method is used to place material in 15 ft lift heights, specifically designed to decrease material compaction and improve permeability on the heap leach pad. Previous ore placement involved dumping from a 100-ton capacity haul truck off 30 ft lifts onto the leach pad, resulting in larger sized particles rolling to the bottom of the pile while smaller sized material (roughly less than 1/16-inch in diameter - called “fines”) remained near the top. This size segregation, with fines on top of the heap, reduced permeability and slowed gold recovery.

The new method uses haul trucks dumping with the appropriate blend ratio of ores. For example, dumping a mix of six truckloads of rock ore and four truckloads of clay ore onto the top of an already existing 22 ft high heap. A dozer, which will cause significantly less compaction than haul trucks, combines the rock and clay ore by pushing the blended material over the edge of the 22 ft high leach pad cell until two-thirds of the designed pad cell is filled. To further reduce compaction and improve blending, the 22 ft lift is then cut down by the dozer to a 15 ft nominal height to fill the remaining one- third of the cell. The cell is then ripped and cross ripped to a depth of 8 ft to further break up compacted material and increase permeability before the leach drip emitters are placed over the ore.

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GRP recently implemented a new solution management procedure for delivering solution to the heap leach pad. Flow meters installed in each heap leach pad cell allow operators to measure and monitor the application rate of leaching solution. This information allows GRP to more efficiently deliver solution to the heap leach pad and monitor gold recoveries relative to metallurgical recovery curves.

Ore Control Sampling Practices New sampling practices have been implemented to improve grade reconciliation and on-site ore-waste delineation. The goal of minimizing ore dilution and ore loss was achieved by:

• Altered drilling equipment to improve sample containment. • Developed new sampling practices to gain more representative blasthole samples. • Initiated procedures using geostatistical methodologies to improve dig line locations. • Commissioned the on-site lab.

New ore control practices began with modifications to blasthole drilling equipment. The mine has implemented a new sampling methodology that focuses on gaining a representative sample of the blasthole cutting pile. The drill decks and skirting have been modified to confine drill cuttings closer to the drillhole. The cuttings pile is trenched in four directions away from the drilled hole using a four-inch wide, long-bladed shovel. Then, for each of these cuts, a slice or slices of material representing the entire thickness of the pile are taken from the side of the cut. The material is placed in a bag, dried, crushed, and split down to size for pulverization and assay at the onsite lab.

Once the assay from the sample is received from the assay lab, the data is combined with all available data from the mine bench as well as from the benches above and any exploration drillholes from around the bench. As the blasthole cuttings are being sampled for assay, the mine geologist is mapping the rock lithology and alteration to ensure the mined material is properly blended. These data are used to geostatistically model the ore and waste to generate dig lines that will reduce ore dilution and deletion.

Processing Plant Improvement and Lab Commissioning

• Utilization of daily geological statistics, pit mapping, and integration of geology into daily mine planning. • Improved operating procedures at the ADR plant. • Improved solution management practices. • Commissioned the on-site metallurgical laboratory.

After acquiring the Midway assets, GRP completed commissioning of the on-site assay lab, hiring staff and stocking supplies. This created a twofold benefit to the operation: 1) it significantly reduced the assaying costs; and 2) allowed both the mine and process operations to work with real time data to manage operations and production.

Carbon handling procedures have been changed by measuring solution flows and gold grades, allowing for real-time management of flows and reagent levels. Information from the flow meters on the heap leach pad and assay data from the on-site metallurgical lab assist in providing operators with real-time actionable data. Through this procedure an operator can control cyanide and other reagent levels to optimize gold recoveries from the heap and through the ADR plant.

Adding reagents through the ADR Plant has been improved to reduce cyanide consumption rates through the direct addition of cyanide into the pipe that supplies the solution to the heap leach pad, as

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opposed to adding cyanide to the barren solution pond. This change has improved cyanide retention rates and reduced consumption by as much as 50%.

1.3.5 Capital Investment GRP intends to make capital improvements to Pan during calendar year 2017. As of March 31, 2017, Pan had approximately 2.00 M ft2 of leach pad area, capable of holding a total of approximately 5.0 Mt of additional ore. During Q3 and Q4 of fiscal year 2017, GRP will construct approximately 2.2 M ft2 of additional leach pad space capable of holding approximately an additional 11 Mt of ore. By Q1 of fiscal year 2018, GRP will complete the installation of a crushing and agglomerating circuit with on pad conveyor stacking.

Significant goals are:

• Complete capital improvements at Pan, including expanding the heap leach pad in Q3 2017. • Adding a crushing and agglomeration circuit and radial stacker in early 2018. • Following construction of the crushing and agglomeration circuit and additional resource drilling, GRP will evaluate an increased rate of mining operations potentially up to the 17,000 tons per day (t/d) of ore permitted capacity.

GRP is engineering, developing and permitting a crushing and agglomeration circuit to treat 10,000 t/d of ore. This circuit will include a primary jaw crusher, secondary cone crusher and belt agglomeration with the addition of water and cement. The crushing and agglomeration circuit will further improve permeability characteristics of the clay ores and increase gold recoveries. Haul trucks will stock pile rock and clay ores and a front-end loader will feed blended ore from stock piles into the circuit.

Simultaneous to the addition of the crushing and agglomeration circuit, GRP will add a radial conveying stacker that will place ore on the leach pad and eliminate truck and dozer ore placement. The conveyors will be designed and sized to handle more than 17,000 t/d of ore to facilitate increases in production. The use of conveyors is anticipated to significantly reduce ore placement costs and potential compaction of the heap leach pad. GRP will continue to truck stack ore using dozer blending techniques until installation of the crushing and agglomerating circuit and radial stacker.

1.3.6 Status of Exploration During calendar year 2016, GRP completed the first phase of a multi-phase, multi-year drilling campaign to replace and add to reserves at Pan. The US$1.66 million program focused on infilling gaps in the mine resources and extending reserves adjacent to the current mine pits, including:

• Drilling approximately 45,700 ft, across approximately 127 reverse circulation drillholes. • Adding ounces to the mine plan. Locations focused on filling gaps in current pits and extending resources and reserves adjacent to current pits. • Adding 16,000 oz to the 2017 mineral reserve. • Updating the geologic model that now maps rocky and clayey alteration types to aid mine planning for ore blending to manage metallurgical characteristics of the ores. • Identifying new targets for resource expansion drilling to be continued during 2017 and 2018.

GRP expects to complete the next phase of a resource expansion drill program that include continued drilling of resources adjacent to current mine areas. In addition, mapping, and geochemical sampling

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of targets away from currently mined areas will be performed in anticipation of future drilling in these targets.

1.4 Mineral Processing and Metallurgical Testing Extensive metallurgical and process development test work has been done between 2011 and 2017. That work is described in Section 13.

The ores to be mined at Pan are typical Carlin style gold ores. Ore types are argillic shale and limestones, argillic solution shale, argillic solution breccia limestone, silicified solution breccia limestones, shales and clays. Major minerals are quartz, mica, illite, kaolinite and alunite with lesser amounts of K-spar, calcite, hematite and barite.

Test work on the ores types consisted of detailed mineralogical characterization studies including X-ray diffraction (XRD), X-ray fluorescence (XRF) and Inductively Coupled Plasma Mass Spectroscopy (ICP-MS). The ores contain low parts per million (ppm) quantities of cyanacides such as copper, zinc, lead, and manganese.

Metallurgical testing included 60 open circuit 8-inch column tests from drill core samples, 10 large diameter (2- to 4-ft diameter) column test from trench samples, three large diameter column tests from South Pan blasted rock and 18 static bucket tests from trench and surface samples from the mining faces. The work also included characterization for pregnant solution; barren solution and actual carbon strip solutions as well as carbon assays. The work that was done prior to 2017 has been used in previous feasibility study.

The test work shows the ores are readily amenable to run-of-mine (ROM) heap leaching provided that the clay ores are mixed with sufficient rocky ore to obtain adequate permeability for leach solution percolation through the heap. The work also shows that the ore types low in silica and higher in clay do not exhibit any gold extraction to particle size dependency. Ores with high silica content do exhibit gold extraction to particle size dependency. Operating parameters such as cyanide consumption, lime consumption, cement requirements, agglomerate strength, particle size versus gold extraction, crusher work indices, pregnant solution makeup, carbon loading, carbon analysis, were also determined in numerous tests.

Test work showed the average recovery for South Pan soft and clayey ores crushed to minus 1.5 inches was 84.5% while North Pan harder more siliceous ores crushed to minus 1.5 inches was 62%. Run-of-Mine (ROM) test work shows the projected recovery for North Pan hard ores to be 52% while South Pan softer ores have a projected recovery of 75%.

Due to the argillaceous nature of the South Pan ores and the size dependent gold recovery of the North Pan ores, the recommended flowsheet was a two-stage open circuit crushing/agglomeration system treating a mix of the hard and soft ores. The recommended crush size is 80% minus 1 inch.

1.5 Mineral Resource Estimate This report provides a Mineral Resource estimate and a classification of resource reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves, May 10, 2014 (CIM, 2014). The resource estimate and related geologic modeling were conducted by, or under the supervision of, J.B. Pennington, M.Sc., C.P.G., and Justin Smith, B.Sc., P.E., SME-RM, both of SRK Consulting, Reno,

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Nevada. Mr. Pennington and Mr. Smith are Qualified Persons, and are independent of GRP for purposes of NI 43‐101 reporting.

The Pan Project drillhole database used for this resource model consists of 380,068 ft from 1,185 drillholes, including 2,324 ft from five monitoring wells and one water well, which were logged for geology but not sampled for assay. The majority of the drilling done to date (96%) was completed using RC methods with 5 ft sample intervals. The typical sample size was 15 lb per sample. The remaining 4% of drilling was completed by diamond drill core for twinning or metallurgical purposes. Raw assay values were back-coded with the interpolation domain wireframes described in Section 14.5, resulting in 24,028 assays coded within the mineralized domain. These coded assays were then composited honoring interpolation domain boundaries to a fixed 10 ft down-hole length. There were a total of 12,267 composites generated with an average grade of 0.015 oz/t Au.

Pan is a Carlin-style epithermal, sediment-hosted disseminated gold deposit. Controls on mineralization at the Pan Project include both structure and stratigraphy. Gold mineralization is generally distributed in broad zones adjacent to high-angle faults, and subparallel to stratigraphy. Solution breccias developed in association with faults in the Pan deposit serve as the primary host for gold mineralization. Additional mineralization is hosted in favorable stratigraphy, such as the lower Pilot Shale and the upper Devil’s Gate Limestone. Mineralization has been confirmed to depths in excess of 750 ft over a strike length of greater than 2.5 miles.

The 2017 resource modeling exercise began with a reconstruction of the property geology in three dimensions based on surface mapping, logged geology and a new set of 2016 geologic cross-sections from GRP. The cross-sections (84 total) are oriented N60°E and spaced 100 ft apart for the majority of the 13,000 ft of strike length of the deposit. These cross-sections served as a guide for 3D contouring software to locate fault and lithologic contact surfaces. Based on the drillhole spacing and anticipated surface mining methods and bench heights, it was decided that a 20 ft x 20 ft x 20 ft (XYZ) block size would be appropriate.

The Mineral Resource statement for the Pan deposit is presented in Table 1-1, which includes a separate statement for oxide and sulfide material. To comply with NI 43-101, and satisfy the guideline that reported mineralization have “reasonable prospect for eventual economic extraction,” SRK reports Mineral Resources within a Lerchs-Grossmann (LG) optimized pit shape. Economic inputs for the LG constraining pit are provided in the explanatory bullets below Table 1-1.

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Table 1-1: Mineral Resource Statement for the Pan Gold Deposit, White Pine County, Nevada, USA. February 10, 2017 Model Area Cut-off Grade (CoG) Material Mass Contained Contained Grade Metal Au (oz/t) kt Au (oz/t) Au (koz) Measured 9,021 0.018 159 Indicated 21,044 0.013 275 Total Multiple Measured & Indicated 30,065 0.014 434 Inferred 5,670 0.013 72 Measured 4,708 0.018 87 North and Indicated 8,731 0.014 126 0.005 Central Measured & Indicated 13,439 0.016 213 Inferred 2,054 0.012 25 Measured 4,312 0.017 72 Indicated 12,313 0.012 149 South 0.004 Measured & Indicated 16,626 0.013 221 Inferred 3,616 0.013 47 Source: SRK, 2017 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources estimated will be converted into a Mineral Reserves; Resources stated as contained within a potentially economically minable open pit; pit optimization was based on an assumed gold price of US$1,350/oz, North and Central area recoveries of 62% for Au and a Southern area recovery of 85% for Au, a mining cost of US$2.00/t, an ore processing and G&A (general and administrative) cost of US$3.55/t, and a pit slope of 50 degrees in the North and 45 degrees in the South and Central Areas; Resources are reported using a gold CoG of 0.005 oz/t in the North and Central Areas and 0.004 oz/t in the South Area; and, Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.

1.6 Mineral Reserve Estimate In accordance with the CIM classification system only Measured and Indicated resource categories can be converted to reserves (through inclusion within the open-pit mining limits). In all Mineral Reserve statements, Inferred Mineral Resources are reported as waste. In some mineral resource statements Inferred mineral resources are reported separately.

The conversion of mineral resources to ore reserves required accumulative knowledge achieved through LG pit optimization, detailed pit design, and associated modifying parameters. Reserve estimation was achieved using Hexagon’s MineSight® software and applies to the full GRP Pan resource. Detailed access, haulage, and operational cost criteria were applied in this process for South Pan and satellite pits, and North Pan and satellites pits (Central Pan & Red Hill) independently. The Project was built in U.S. units and all metal grades are in troy ounces per short ton (oz/t).

Conversion of resources to reserves requires consideration of:

• The ore extraction method(s) used in relation to the ore body characteristics, which determine mining dilution and recovery; and • Project operating costs and resulting CoG’s.

The Mineral Reserves for the Pan Mine are presented in Table 1-2.

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Table 1-2: Pan Project Mineral Reserve Estimate as of March 16, 2017 Ore Au Grade Au Metal Waste Strip Ratio Pit Classification kt (oz/t) (koz) kt (waste/ore) Proven 7,430 0.018 137 Total Probable 13,519 0.013 182 28,091 1.34 Proven and Probable 20,949 0.015 318 Proven 3,481 0.018 61 South Pan Probable 7,220 0.012 88 15,225 1.42 Proven and Probable 10,702 0.014 150 Proven 164 0.017 3 South Satellite Probable 324 0.013 4 859 1.76 Proven and Probable 488 0.014 7 Proven 3,112 0.018 55 North Pan Probable 5,742 0.015 84 10,061 1.14 Proven and Probable 8,854 0.016 139 Proven 411 0.033 14 Red Hill Probable 119 0.024 3 1,660 3.13 Proven and Probable 531 0.031 16 Proven 261 0.016 4 Central Pan Probable 113 0.016 2 285 0.76 Proven and Probable 374 0.016 6 Source: SRK, 2017 Reserves stated in the table above are contained within an engineered pit design following the US$1,200/oz Au sales price Lerchs-Grossman pit. Reserves for South Pan and South Satellite Pits are based upon a minimum 0.004 oz/t Au Internal CoG, using a US$1,200/oz- Au sales price and a Au Recovery of 85%, an Au Sales cost of US$3.48/oz, Ore and Waste Mining Cost = US$2.12/t, Processing and G&A Cost = US$3.80/t and a 4% Net Smelter Royalty (NSR). Reserves for North Pan, Red Hill and Central Pan are based upon a minimum 0.006 oz/t Au Internal CoG, using a US$1,200/oz- Au sales price and a Au Recovery of 62%, an Au Sales cost of US$3.48/oz, Ore and Waste Mining Cost = US$2.12/t, Processing and G&A Cost = US$3.80/t and a 4% NSR. Mineral Reserves stated above are contained within and are not additional to the Mineral Resource.

1.7 Mining Methods The Pan gold deposits contain mineralization at or near the surface that is suitable for open pit mining methods. Gold grade distribution and the results of preliminary mineral processing test work, as well as Pan Mine operating experience, indicate that Pan ore can be processed by conventional heap leaching methods. Due to the argillic alteration predominantly found in the southern pits, ore from the North and South will be blended to ensure permeability and heap stability. This blend will initially be 60% rock to 40% clay, by weight, and will change as the heap leach height increases.

Currently, conventional open pit mining methods are implemented at Pan. A contract miner is conducting the mining activities. Ore and waste is drilled and blasted, then loaded into 100-t payload haul trucks with 14 to 15 loose cubic yard (LCY) bucket capacity wheel loaders. The loading and haulage fleet is supported by track dozers, motor graders, and water trucks. Waste is hauled to waste rock storage facilities near each pit. Ore is currently hauled and placed directly on the heap leach pad. GRP proposes to install a crushing and agglomeration system with a radial stacker to place ore. When this system is in place, the contractor will haul the ore to stockpiles at the crushing facility. GRP will be responsible for loading and operating the crushing system.

Ore production is planned at a nominal rate of 10,000 t/d, equivalent to 3.6 million tons per year (Mt/y) with a 6-year mine life. Mining is planned on a 7-day per week schedule on a single 12-hour shift per day, 355 days per annum. The average life-of-mine (LOM) stripping ratio is 1.31:1 waste-to-ore, using

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a 0.004 oz/t internal cut-off for the South and Central pits and a 0.006 oz/t internal cut-off on the North pit.

1.8 Recovery Methods Pan was started up as a ROM leach and did not include the recommended crushing and agglomeration plant. ROM leaching of the South Pan ores proved problematic due to solution percolation problems resulting from material compaction attributable to the heap building techniques initially practiced. This was centered on the lack of sufficient rock within the heap to offset solution flow issues caused by the clays at Pan. The culmination of these effects severely limited solution flow through the heaps to about 25% of design. Some months after the operations commenced the practice of mixing ROM rock into the ore that was stacked onto the heaps (capping and fluffing) was instituted. This resulted in improved solution flow through the heap and an improvement in the rate of gold recovery at Pan.

After GRP acquired the project in May of 2016, the heap was completely rehabilitated for continued ROM leaching by thoroughly blending ROM rock ore into the previously stacked material. Presently, ROM ores containing rock and clays are truck dumped onto the leach pad surface in a controlled manner and dozer mixed to 15 ft deep lifts. Gold and trace silver are recovered by applying dilute sodium cyanide solution to the stacked and mixed ore at 0.004 gallons per minute per square feet (gpm/ft2) through drippers laid on the surface. The precious metals bearing solution (pregnant solution) flows through the heaps to the leach pad liner that is equipped with collection pipes for gathering the solution and ultimate transport to the pregnant solution pond.

From the pond, the pregnant solution is pumped to a train of 6 carbon columns for recovery of the gold and silver onto carbon. The barren solution flows from the carbon columns to the barren solution pond by gravity. Reagents are added as needed and the solution is pumped back to the leach pad as leach solution. The ponds are designed to accommodate drain down and storm events.

The gold and silver are recovered from the carbon in a conventional carbon stripping plant that includes a sludge cell electrowinning circuit, retort for mercury removal and a refining furnace to produce doré on site. The plant is also equipped with a complete carbon acid washing circuit, regeneration kiln and associated emission controls and mercury scrubbing throughout.

The existing leach pad is designed to be a multi-lift pad that will accommodate ore stacked to an ultimate height of 160 ft. Individual lifts are designed to be 15 to 25 ft. The initial pad was designed to hold 9.2 Mt of stacked ore. An addition to the pad will be constructed in 2017 and it will increase the leach pad capacity to a total of 22.2 Mt of stacked ore. Additional pads will be constructed as needed in the future.

In 2018 GRP Minerals plans to install a two-stage crushing and agglomeration circuit at Pan as well as a conveyor heap stacking system. The crushing plant is designed to treat 10,000 t/d of ore while the conveyors and stacker is designed with a capacity of 17,000 t/d to allow for growth. ROM ore will be transported from the pits to either a rock stockpile or a clay stockpile, both located near the jaw crusher. An end loader will then mix and feed the ore to the crusher plant consisting of a portable jaw and cone crusher equipped with attendant feeders, screens and conveyors. Cement and water will be added to the crushed ore and agglomeration will occur by mixing in the several conveyor belt transfer points designed for that purpose. The crushed agglomerated ore will be transported by overland conveyor to a stacker designed to place the ore in 15 to 25 lifts on the existing heaps. Drip emitters

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will be employed to distribute the leach solutions. Gold will be recovered from the solution using the existing ADR facilities at Pan.

The site is a fully functioning operating mine and processing plant that has all of the support facilities and functions normally associated with a heap leach operation including an on-site laboratory. The laboratory is equipped to handle fire and CNAA assaying of blasthole samples to support a 30,000 ton per day of mined material operation as well as solution sample assaying to support a 17,000 t/d heap leach. In addition, the lab is equipped for bottle leach testing and is being equipped for column leach testing.

The details of the existing processing facilities and the design of the leach pad expansion and crushing and agglomerating facilities are described in Section 17.

1.9 Project Infrastructure The Project is a fully operational mine with infrastructure constructed by the previous operator. The existing infrastructure includes electrical power supply and distribution, access roads, security fences and gates, water supply and storage, office buildings, assay laboratory, and mineral processing facilities. In addition to the existing infrastructure, there are plans to add an ore crushing, agglomeration, and stacking system, and a phased expansion of the existing leach pad.

1.10 Environmental Studies and Permitting The permitting schedule for the Pan Mine Project was dictated by the federal National Environmental Policy Act (NEPA) process requirements, which typically include at least one year of baseline studies followed by a scoping process and production of draft and final environmental impact statement (EIS) documents. Public review periods are required at the scoping, draft and final EIS stages. The Pan Mine baseline studies were completed in 2011, and the project went through the scoping process in 2012. The draft EIS was released for public review in March 2013. The final EIS was made available November 22, 2013, and the Record of Decision (ROD) was signed December 23, 2013. Construction began in January, 2014. The Nevada Division of Environmental Protection-Bureau of Mining Regulation and Reclamation (NDEP-BMRR) issued Reclamation Permit No. 0350, replacing exploration Permit No. 0228. The NEPA and permitting processes required approximately 36 months from initiation of baseline studies to the receipt of the ROD in late 2013.

Midway Gold acquired the required federal, state, and local permits for construction, operations, and reclamation of the Pan Mine. GRP has successfully transferred the permits to their control.

Environmental issues identified in the final EIS completed for the mine are mitigated by the requirements of the ROD as described for each resource below. At the time of publication, known environmental issues had been addressed and mitigated, as required.

The closure and reclamation of supporting facilities, and post-closure monitoring, will require approximately 30 years, bringing the entire Project life to approximately 38 years. Monitoring of the heap leach draindown may continue for up to 30 years following closure. Concurrent reclamation during active mining has been planned to begin as soon as practicable on areas where no further disturbance will occur, minimizing the need for post-mining reclamation.

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1.11 Capital and Operating Costs

1.11.1 Capital Cost Summary The Pan Mine has been constructed and is currently operating. Additional capital is now needed to build the Phase 2A leach pad expansion and for crushing, screening, and stacking equipment for ore processing. These project additions are required to sustain operations and improve recoveries. Capital cost for leach pad construction is based on the inflated adjusted cost of the 2015 leach pad construction and current contracting mining rates for portions of the work. The crusher capital cost includes a Q4 2016 quotation for major equipment cost, which constitutes 40% of the total estimate. The remaining costs included in the crusher capital cost are based on inflated adjusted installation rates from the original plant construction estimate using current engineered material quantities. An allowance for sustaining capital has also been included in the capital estimate.

The capital cost summary for the Project is presented in Table 1-3. Ongoing (sustaining capital) and closure costs for a total LOM capital cost of US$42.7 million.

Table 1-3: Capital Cost Summary Capital Cost Item Cost US$000’s Mining $250 Processing $14,366 Leach Pad $9,530 Owner and Infrastructure $2,020 Closure $12,662 Contingency $3,887 LOM Capital Total $42,705 Source: SRK, 2017

Capital and operating costs are based on quotations and estimates in 2017 dollars. No inflation factors have been used in the economic projections.

1.11.2 Operating Cost Summary The operating cost summary for the Project is presented in Table 1-4. The mine is presently operating using a contractor for all mining activities. Mining costs were developed based on the current mining contract and historic costs. Processing costs were developed from: 1) the Q2 2017 wage rates paid; 2) reagent consumption as determined by current site usage rates, site-specific test programs or industry standards, and current prices; and 3) wear and replacement parts by testing, manufactures recommendations, and industrial standards. Crushing maintenance and power costs were estimated by GRP using Infomine Costmine. The supervisory and administrative support staff was sized to efficiently handle the administrative, technical and management functions required for the proposed operation. Provisions for task training and required safety training were also included.

Table 1-4: Operating Cost Summary Operating Costs (US$000) US$/t-ore Mining $93,799 $4.48 Processing $46,848 $2.24 G&A $16,767 $0.80 Total Operating $157,414 $7.51 Source: SRK, 2017

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Diesel fuel cost of US$2.00 per gal was based on an actual cost for fuel supplied to the operation.

1.12 Economic Analysis Pan is an operating gold project with a favorable economic projection based on Feasibility-level capital and operating costs from a detailed mining and processing development plan. Economic results from this study indicate a LOM after tax Net Present Value (NPV) of US$41 million is forecast with an internal rate of return (IRR) of 62.7% and a payback period of 2.2 years over a 6-year mine life using a discount rate of 5% and an average LOM gold price of US$1,215/oz. Before Federal income tax, the NPV is US$52 million with an IRR of 71%. A total of 230 koz of recovered gold are scheduled for production at an average rate of 37 koz of saleable gold per year.

The indicative economic results are shown on Table 1-5. The following provide the basis of the LOM plan and economics:

• Production Rate: 10,000 t/d ore; • Mine Life: 6.2 years; • Average Gold Recovery: 72% • LOM Strip Ratio: 1.34:1 (waste:ore); • LOM Capital Cost: US$42.7 million; • Cash Costs per Gold Ounce Recovered: US$685; • Average Annual Gold Production: 37,300 oz; Average Gold Grade: 0.015 oz/t; • After tax IRR: 62.7%; and • After tax payback Period: 2.2 years.

Table 1-5: Indicative Economic Results Description With Tax Without Tax ($US) ($US) Market Prices Gold (LOM Avg) /oz-Au $1,215 $1,215 Estimate of Cash Flow (all values in US$000’s) Payable Metal Gold koz 229.8 229.8 Gross Revenue Gold $279,200 $279,200 Revenue $279,200 $279,200 Freight & Handling ($430) ($430) Gross Revenue $278,770 $278,770 Royalty ($11,151) ($11,151) Net Revenue $267,619 $267,619 Operating Costs $/t-ore Mining $4.48 $93,799 $93,799 Processing $2.24 $46,848 $46,848 G&A $0.80 $16,767 $16,767 Property & Net Proceeds Tax $0.24 $4,983 $4,983 Total Operating $7.75 $162,397 $162,397 Operating Margin (EBITDA) $105,222 $105,222 LOM Capital $42,705 $42,705 Income Tax $12,816 $0 Cash Flow Available for Debt Service $49,700 $62,517 NPV 5% $41,008 $51,605 IRR 62.7% 71.0% Source SRK, 2015

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1.13 Conclusions and Recommendations The Pan mine is economically viable at current gold prices and has significant economic potential given the possibility for higher gold prices in the future. Additionally, there is opportunity to expand the reserve through additional drilling. Cost improvements are also possible.

In order to develop and operate the project the company will have to raise the required financing. There is risk associated with an inability to raise the funds necessary to upgrade and continue the Pan operation.

The operating plan is to achieve commercial production at Pan while continuing to expand resources and develop our exploration properties. The restart of Pan operation is well under way. GRP will continue to truck stack ore using the blending techniques described above until installation of the crushing and agglomerating circuit and radial stacker.

Pan has placed over 1 Mt of ROM ore on the leach pad since restarting the operations and to date has good results with solution permeability and recovery of gold. This has been accomplished by:

• Blending rock and clay ores to which results in increased permeability of the heap, • Stacking the blended ore to 22 foot lifts, then cutting the lift height to 15 foot with dozers to reduce segregation and compaction from truck traffic

The planned crushing, agglomeration and belt stacking of the ore should reduce the risk of permeability issues and increase the overall gold recovery.

Significant improvements have been implemented as detailed above in Status of Exploration, Development and Operations. These include significant accomplishments and goals:

• Improve the resource through drilling, geologic modeling, and development of drilling plans for future resource expansion. • Develop new processes and procedures that will resolve the metallurgical challenges associated with prior operations. • Implement new sampling practices to improve on site ore-waste delineation to reduce ore dilution and deletion. • Implement new sampling practices to improve grade reconciliation. • Improvements to the processing plant and commissioning the lab. • Hiring and training a new well experienced operating team and staff.

Success in the short-term strategy described above was accomplished with diligent monthly cost control, incrementally improving operational practices and capital raises. GRP intends to achieve its long-term strategy of increasing production and expanding resources and reserves through exploration and development of existing pits and multiple near mine targets. The short-term and long-term strategies require continued effective management of several inherent challenges and risks.

GRP intends to make capital improvements to Pan during calendar year 2017. As of March 31, 2017, Pan had approximately 2.00 M ft2 of leach pad area, capable of holding a total of approximately 5.0 Mt of additional ore. During the Q3 and Q4 of fiscal year 2017, GRP will construct approximately 2.2 M ft2 of additional leach pad space capable of holding approximately an additional 11 Mt of ore. By Q1 of fiscal year 2018, GRP will complete the installation of a crushing and agglomerating circuit with on pad ore stacking. Significant goals are:

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• Complete capital improvements at Pan, including expanding the heap leach pad in Q3 2017. • Adding a crushing and agglomeration circuit and radial stacker in early 2018. • Following construction of the crushing and agglomeration circuit and additional resource drilling, GRP will evaluate an increase the rate of mining operations potentially up to the 17,000 t/d of ore permitted capacity.

GRP also intends to commence the next phase of our resource expansion drill program in 2017 to 2018. Plans for the next two years:

• During calendar year 2017, GRP plans on conducting another program largely focused on replacing mined reserves and extending resources. • During calendar year 2018, GRP expects to execute an expanded drill program to both add to reserves and to begin testing targets away from the current mine areas.

SRK recommends that additional column test work be carried out to ensure that the prescribed blend of hard and soft ores performs as expected. Recovery is critical to the economic success of the project and while each of the principal ore types has been characterized individually, the combination of materials as they are planned to be crushed, blended and stacked has not yet been fully tested. The Company must ensure sufficient percolation during irrigation to confirm recovery projections.

Residuals from this combined-ore column test should be used for compacted permeability evaluation, which provides important geotechnical data for heap stability under load and reduces operational risk.

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2 Introduction 2.1 Terms of Reference and Purpose of the Report This report was prepared as a feasibility-level National Instrument 43-101 (NI 43-101) Technical Report (Technical Report) for GRP Minerals Corp (GRP) by SRK Consulting (U.S.), Inc. (SRK) on the Pan Gold Project (Pan or the Project). The Pan Mine is owned by GRP Pan, LLC, a Nevada limited liability company and GRP’s wholly owned subsidiary.

The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in SRK’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 GRP subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits GRP to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to NI 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. The responsibility for this disclosure remains with GRP. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued.

This report provides Mineral Resource and Mineral Reserve estimates, and a classification of resources and reserves prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines, May 10, 2014 (CIM, 2014).

2.2 Qualifications of Consultants (SRK) The Consultants preparing this technical report are specialists in the fields of geology, exploration, Mineral Resource and Mineral Reserve estimation and classification, underground mining, geotechnical, environmental, permitting, metallurgical testing, mineral processing, processing design, capital and operating cost estimation, and mineral economics.

None of the Consultants or any associates employed in the preparation of this report has any beneficial interest in GRP. The Consultants are not insiders, associates, or affiliates of GRP. The results of this Technical Report are not dependent upon any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings between GRP and the Consultants. The Consultants are being paid a fee for their work in accordance with normal professional consulting practice.

The following individuals, by virtue of their education, experience and professional association, are considered Qualified Persons (QP) as defined in the NI 43-101 standard, for this report, and are

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members in good standing of appropriate professional institutions. QP certificates of authors are provided in Appendix A. The QP’s are responsible for specific sections as follows:

• Brooke Miller, M.Sc. C.P.G., is the QP responsible for Drilling and Data Validation, Sections 2, 3, 4, 5, 6, 9,10,11,12, 23 and 24 of this Technical Report. • Jay Pennington, M.Sc., C.P.G., is the QP responsible for Geology and Mineral Resources, Sections 7, 8 and 14 of this Technical Report. • Justin Smith, B.Sc., P.E., SME RM, is the QP responsible for Mining, Sections 15 and 16 of this Technical Report. • Kent Hartley, B.S., P.E., is the QP responsible for Infrastructure, Costs and Economics, Sections 1, 18, 19, 21, 22, 25 and 26 of this Technical Report. • Valerie Sawyer, B Sc., SME RM, the QP responsible for Environmental Section 20 of this Technical Report. • Deepak Malhotra, PhD, SME RM is the QP responsible for Metallurgy Sections 13 and 17 of this Technical Report.

2.3 Details of Inspection Table 2-1: Site Visit Participants Details of Personnel Company Expertise Date(s) of Visit Inspection Pits, haul roads, Mining heap leach, Kent Hartley SRK February 28, 2017 Engineering processing facilities, lab Resource Drill rigs, pits, Brooke Miller SRK 17 and 18 November, 2016 Geology outcrops Resource Field area, data J. B. Pennington SRK 17 and 18 November 2016 Geology review Pre-construction Valerie Sawyer SRK Environmental January 14, 2014 landforms, met with permitting staff Pit, haul roads, heap Mining Justin Smith SRK November 17 and 18, 2016 leach, processing Engineering facilities Mine, heap leach pads, ADR plant, the pregnant and barren Deepak Malhotra RDi Metallurgy February 28, 2017, March 1, 2017 ponds and the location of the future crushing plant Source: SRK, 2017

2.4 Sources of Information The sources of information include data and reports supplied by GRP personnel as well as documents cited throughout the report and referenced in Section 27.

2.5 Effective Date The effective date of this report is June 30, 2017.

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2.6 Units of Measure The US System for weights and units has been used throughout this report. Tons are reported in short tons of 2,000 lb. All currency is in U.S. dollars (US$) unless otherwise stated.

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3 Reliance on Other Experts The Consultant’s opinion contained herein is based on information provided to the Consultants by GRP throughout the course of the investigations. Specifically, GRP provided information regarding the status of mineral titles and legal agreements relative to the Property. These items have not been independently reviewed by SRK and SRK did not seek an independent legal opinion of these items.

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4 Property Description and Location 4.1 Property Location Section 4 is extracted from the Gustavson (2015) report. Standardizations have been made to suit the format of this report. Changes to the text are indicated by the use of brackets [ ] or in sentences containing “SRK”.

The Pan property is located in the northern Pancake Range in White Pine County, Nevada, 22 miles southeast of the town of Eureka and 50 miles west of Ely, as shown in Figure 4-1. The geographic center of the property is located at 39°17’N latitude and 115°44’W longitude, and the primary zones of mineralization on the property are located in Sections 25 and 36, Township 17 North, Range 55 East (T17N, R55E) and Section 1, T16N, R55E, Mount Diablo Base and Meridian (MDBM).

Source: GRP, 2017 Figure 4-1: Project Location Map

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4.2 Mineral Titles The Project claim boundary encompasses approximately 10,473 acres, all located within surveyed townships. The Pan property consists of 550 contiguous, active, unpatented lode mining claims covering portions of Sections 12 through 15, 22 through 27, and 34 through 36, T17N, R55E; portions of Sections 19, 30, and 31, T17N, R56E; portions of Sections 1 through 3, 10, through 12, 14, 15, 22, and 23, T16N, R55E; and portions of Sections 6 and 7, T16N, R56E, as shown in Figure 4-2. A complete listing of the claims on file with the BLM and White Pine County is included in Appendix B. The U.S. Department of the Interior – BLM, Ely District Office – Bristlecone Field Office administers the federal public lands within the Project boundary. No private, United States Department of Agriculture (USDA) – Forest Service, or state-owned lands are located within the Plan Area or mineral materials sales site.

Source: GRP, 2017 Figure 4-2: Land Status Map

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4.2.1 Nature and Extent of Issuer’s Interest The Pan property is located approximately 5 miles off US Highway 50 and can be accessed by an all- weather gravel access road. The Nevada Department of Transportation Right-Of-Way Permit #200571 permits access from the exit off Highway 50 to the gate of the property via the access road. Permit #200571 is provided in Appendix C. With regards to to minerals and surface area within the boundaries of the present operation, GRP Pan, LLC possess these rights through the ownership and lease of unpatented mining claims.

Unpatented lode mining claims are kept active with annual maintenance fees paid to the BLM and White Pine County by September 1st of each year.

GRP Pan, LLC must incur a minimum of US$65,000 per year work expenditures during the term of the mining lease from Nevada Royalty Corp (NRC).

4.3 Royalties, Agreements and Encumbrances GRP Minerals Corp. and its subsidiaries acquired various mineral properties, including the Pan Assets, on May 17, 2016, pursuant to an Asset Purchase Agreement (APA) with subsidiaries of Midway Gold Corp., which was approved and authorized by the United States Bankruptcy Court for the District of Colorado, in Midway Gold US Inc., et al, Case No. 15-16835 MER. On May 13, 2016, the Bankruptcy Court entered the Revised Order under 11 U.S.C §§ 105, 363, and 365 and Fed. Bankr. P. 2002, 6004, 6006, and 9014 (I) Approving (A) the Sale of Substantially All of the Debtor Assets Pursuant to the Asset Purchase Agreement with GRP Minerals, LLC and Related Agreements Free and Clear of Liens, Claims, Encumbrances and Other Interests and (B) the Assumption and Assignment of Certain Executory Contracts and Unexpired Leases in Connection with the Sale; and (II) Granting Related Relief.

Effective May 17, 2016, the Pan Mineral Lease dated January 7, 2003 was assigned and conveyed to GRP Pan, LLC. Nevada Royalty Corp. (NRC), successor in interest to the Lyle F. Campbell Trust, is the Lessor and owner of the claims subject to the Lease. As of November 22, 2013, NRC assigned to Orion Royalty Company, LLC, NRC’s right to receive advance minimum and production royalty payments under the Pan Mineral Lease. On or before January 5 of each year, GRP Pan, LLC must pay an advance minimum royalty of the greater of US$60,000 or the US dollar equivalent of 174 oz of gold valued by the average of the London afternoon fixing for the third calendar quarter preceding January 1 of the year in which the payment is due. All minimum advance royalties will be creditable against a sliding scale gross production royalty of between 2.5% and 4% as shown in Table 4-1.

Ten claims are also subject to an overriding 1% NSR payable to Americomm Resources Corporation. They are PA 8A, PA 10, PA 12-18, and PA 49A.

There are 121 additional unpatented claims within the Pan property that are without royalty burden and are not subject to the NRC area of interest. They are the 10 PC, 56 NC, 53 GWEN, and 2 REE claims.

100% of the advanced minimum royalty paid within a calendar year can be applied to that same year’s production royalty due. If the total production royalty due in any calendar year exceeds the advance minimum royalty paid within that year, GRP Pan, LLC can credit all un-credited advance minimum royalties paid in previous years against 50% of the gross production royalty due. The remaining advanced minimum royalty pre-paid balance at the end of calendar year 2016 was US$954,792.95.

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Table 4-1: Pan Royalty Schedule Price of Gold (US$) Percentage To and including $340.00/oz. 2.5% From $340.00/oz. to $450.00/oz. 3.0% $450.00/oz. and greater 4.0% Source: GRP, 2017

4.4 Environmental Liabilities and Permitting

4.4.1 Environmental Liabilities Mining activity has taken place in the general region since 1876, but mining of the Pan deposit had not occurred prior to 2015. There are no existing environmental liabilities on any portion of the Project land package.

4.4.2 Required Permits and Status Midway Gold acquired the required federal, state, and local permits for construction, operations, and reclamation of the Pan Mine. GRP has successfully transferred the permits to their control. Table 4-2 provides a list of the major permits and authorizations and their status as of March 2017.

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Table 4-2: Status of Major Permits, Authorizations, and Licenses as of June 2017 Permit Agency Permit Number Approval Date/ Transfer Status Federal Permits and Authorizations Notification of Commencement of Mine Safety and Health Administration 26-02755 (GRP Pan) Updated and transferred online on June 9, 2016 Operations Record of Decision and approved Plan of BLM NVN-090444 (GRP Pan) Transferred to GRP Pan Operation Bond filed June 22, 2016 Mineral Materials Negotiated Sale NVN-089672 (GRP Pan) Transferred to GRP Pan; Bond filed July 7, 2016 (Borrow) Programmatic Agreement(1) BLM/State Historic Preservation Office NVN-090444 Transfer submitted to BLM October 18, 2016 Hazardous Waste ID (RCRA) USEPA/NDEP/Department of Energy SQG NVR 000 089 227 (GRP Pan) Transferred to GRP Pan June 28, 2016 Converted to SQG May 31, 2017 FCC Radio License Federal Communications Commission Reg. #0023652175 Call Sign Transfer completed online WQUC703 Explosives Permit Bureau of Alcohol, Tobacco, Firearms, and Explosives Permit held by mining contractor Not applicable CSAT Security Threat Department of Homeland Security Midway Gold Corporation (MDW) Pan Waiver provided to MDW Pan Facility ID 4133675 Agency contacted GRP March 2017 requesting that we re-submit; Facility survey ID 8022095 (dated Dec. ID request submitted and review initiated March 16, 2017 30, 2014) State Permits Air Quality Operating Permit -Class I NDEP Bureau of Air Pollution Control AP1041-3301 Modification submitted December 2016, approval expected Q3 2017 Surface Area Disturbance Permit Fugitive Dust Control Plan submitted January 22, 2013 Air Quality Permit –Mercury Controls AP1041-3302 (GRP Pan) Administrative Amendment transfer to GRP Pan August 17, 2016 Reclamation Permit NDEP Bureau of Mining Regulation and Reclamation 0350 (GRP Pan) Transferred to GRP Pan Aug 18, 2016 Bond filed June 22, 2016, 2016 update Approved and posted June 2017 Water Pollution Control Permit NEV2012107 (GRP Pan) Application for transfer to GRP Pan approved Aug. 18, 2016 Dam Safety Permit Nevada Division of Water Resources J-679 NV10821 (GRP Pan) Transfer to GRP Pan August 29, 2016 Water Appropriation (GRP Pan) Leased from Kinross Encroachment Permit Nevada Department of Transportation Occupancy Permit No. 200571 (MDW Letter submitted to NDOT June 7, 2016 Pan) Industrial Artificial Pond Permit Nevada Department of Wildlife S407100S (GRP Pan) Transferred to GRP Pan June 21, 2016; Updated June 20, 2017 Stormwater Permit NDEP Bureau of Water Pollution Control MSW-42137 (GRP Pan) Transfer to GRP Pan Complete and annual fees submitted; Correspondence with agency says that with USACE 404 waiver, this permit is not needed. However, GRP is holding on to it due to construction needs. Commercial Septic System Construction GNEVOSDS09 (MDW Pan) Expired May 8, 2014; Construction verified Dec. 14, 2014; NOI Discharge filed Dec. 14, 2014: ; GRP transfer notice resubmitted Permit May 23, 2017 Landfill Permit NDEP Bureau of Waste Management SW 539 SW1762 (GRP Pan) Both SW-539 and SW-1762 transferred to GRP Pan; expire Aug. 11, 2021 2 LPG Licenses Nevada Board for the Regulation of Liquefied 5-5427-01 (Admin) 5-5427-02 (ADR) Both expire Sept. 30, 2017 November 2, 2016. Petroleum Gas (GRP Pan) Potable Water “non-transient non- NDEP Bureau of Safe Drinking Water WP-1142-NT-NTNC (GRP Pan) Issued to GRP Pan, expires Oct. 31, 2017. Transfer in progress community water system” Mine Safety Nevada Department of Business and Industry, Division Mine ID 26-02755 (GRP Pan) Commencement of mine operation Submitted. Transferred to GRP in June, 2016 of Industrial Relations Source: SRK, 2017 (1) Also signed by Mt. Wheeler Power Company, Te-Moak Tribe of Western Shoshone Tribe, Duckwater Shoshone Tribe, and the Lincoln Highway Association, Nevada.

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4.5 Other Significant Factors and Risks At the time of publication, known environmental issues had been addressed and mitigated, if necessary, and operations are compliant with the 2013 Record of Decision. There are no other significant factors or risks to proposed development.

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5 Accessibility, Climate, Local Resources, Infrastructure and Physiography Section 5 is extracted from Gustavson (2015) report. Standardizations have been made to suit the format of this report. Changes to the text are indicated by the use of brackets [ ] or in sentences containing “SRK”.

5.1 Topography, Elevation and Vegetation The Pan property is located within the rolling hills of the northernmost portion of the Pancake Range. The terrain is gentle to moderate throughout most of the project area, with no major stream drainages. Elevation ranges from 6,400 to 7,500 ft above mean sea level (amsl). Local vegetation includes Pinyon-Juniper woodlands broken by open areas of sagebrush and grass. No springs are known to exist on the property.

5.2 Accessibility and Transportation to the Property Access to the Pan property is via a gravel road that intersects US Highway 50 approximately 17 miles southeast of Eureka, Nevada. It is approximately 5 miles by road from US 50 to the Pan Project site. The road is constructed as a gravel embankment and has been constructed specifically for the Pan Project. The property is accessible year-round, but weather conditions occasionally make access and on-site travel difficult during the winter months.

5.3 Climate and Length of Operating Season The local climate is typical for the high desert of east-central Nevada and the Basin and Range province. Climate data collected in Eureka, Nevada between 1997 and 2008 reports average annual precipitation of 8.1 inches, and average temperatures ranging from 11°F in the winter to 91°F in the summer (Western Regional Climate Center, 2009). Mining and exploration can be conducted year- round, but snow may cause delays in overland travel during the winter months.

5.4 Sufficiency of Surface Rights The surface rights as described in Section 4.2 are sufficient to conduct exploration and mining operations as currently planned for the Pan deposit. The Pan Project is wholly located on and operations will be contained within GRP land holdings.

5.5 Infrastructure Availability and Sources The town nearest to the project site, Eureka, Nevada, hosts a population of 610 according to 2010 US Census data. Greater Eureka County and White Pine County host area populations of 1987 and 10,030 respectively, though population is centered primarily in Eureka and Ely, Nevada. Elko, Nevada, population of 18,297, is the nearest major city to the project site and is located approximately 110 miles to the north by road.

Logistical support is available in Eureka, Ely, and Elko, all of which currently support large open pit mining operations. The Ruby Hill Mine near Eureka has had recent operations (2014) and the Bald Mountain Mine, approximately 50 miles north of Pan, is currently being operated by Kinross. Robinson Nevada Mining Company operates the Ruth Copper pit near Ely, and large-scale mining by Barrick

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and Newmont Mining Corporation is ongoing near Elko and Carlin, Nevada to the north. Mining personnel and resources for operations at Pan have commuted from Eureka, White Pine, and Elko Counties.

Mine construction began in January 2014 and continued until operations were ceased in 2015. Figure 5-1 shows the current layout of the facilities at the Pan Mine. The South Pit is completely opened to the Phase One footprint, while the North Pan Pit is only partially developed. The leach pad has been constructed and loaded with a single lift of ore. The processing plant is complete and operational as are the power line, water systems, and administrative facilities.

Detailed descriptions of existing and planned infrastructure are in Section 18.

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Figure 5-1: Existing Project Infrastructure

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6 History The Pan property is located in the loosely-defined Pancake District of east-central Nevada. The district was first organized in 1870, when silver ore was discovered approximately 10 miles to the southwest at Pogue’s Station (MDA, 2005, Smith, 1976). Occurrences of lignite near Pancake Summit were briefly exploited from 1872-1877, with only minor production (Smith, 1976). During the 1870s, the Chainman Sandstone was also quarried from at least two localities in the District, for furnace lining at the Eureka smelter (Smith, 1976). There is no historic gold or silver mining activity on the Pan property.

6.1 Prior Ownership and Ownership Changes Mr. Lyle Campbell discovered the Pan deposit while prospecting in 1978, when he encountered gold- bearing jasperoid, now referred to as Campbell Jasperoid. Mr. Campbell staked 147 original unpatented mining claims, and transferred ownership of the claims to the LFC Trust in 1986. The LFC Trust was bought out in 2008 by Gold Standard Royalty (Nevada) Inc., which merged with, and is now owned by, Nevada Royalty Corp. Since 1978, numerous claims have been added and released from the Pan claim block. Between 1978 and 1993, several exploration companies leased the Pan claims and completed drilling programs. The Project was dormant from 1994 to 1998. Mr. Campbell passed away in 1998 and the LFC Trust continued to manage the Pan property until 2008. Exploration began again in 1999, starting with Latitude Minerals Corporation, then Castleworth Ventures, which became Pan Nevada Gold Corporation, and was acquired by Midway Gold Corp. in 2007.

Midway added unpatented claims to the land position, to assemble the current land package. In 2016, GRP acquired the assets and mineral leases held by Midway in the Asset Purchase Agreement, as described in Section 4.3.

6.2 Exploration and Development Results of Previous Owners Exploration on the Property has been conducted by several companies since 1978, and is summarized below.

• Mr. Campbell leased his claims to Amselco in 1978. The majority of drilling exploration carried out by Amselco took place in North Pan. Homestake completed several drillholes; three of them, completed in 1980, are verified and included in the current drillhole database. • In 1986, Hecla conducted an exploration drilling program in the central portion of the Pan property. • Echo Bay completed an exploration drilling program in 1987 that resulted in the discovery of gold mineralization at South Pan. • The Alta Gold and Echo Bay joint venture, Alta Bay, conducted drilling in both North and South Pan, in conjunction with geologic mapping, geochemical sampling, and an induced polarization geophysical survey. Alta Bay initiated studies in support of mining development, including an archaeological survey, additional metallurgical test work, and preliminary mineral reserve estimations and mine designs. • Alta Gold completed exploration drilling in 1992. Drilling results were reported, but the associated holes have not been validated and are not included in the current drillhole database. • In 1993, Southwestern completed several reverse circulation holes. The associated drillhole collars have been identified in the field, but no other information has been located to validate

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these holes. These holes are not included in the current database. Drilling completed nearby in 2007 could not confirm the reported results. • Between 1999 and 2001, the Latitude - Degerstrom joint venture conducted geologic mapping and outcrop and soil sampling, as well as drilling and metallurgical testing. Latitude drilling programs focused primarily on North and South Pan mineralization, but also resulted in the discovery of mineralization in the Syncline and Black Stallion target areas of Central Pan. Latitude terminated the joint venture with Degerstrom in mid-2001, and joint ventured the project with Metallica later that year. From LFC Trust files, it appears that Metallica focused on thermal imagery and lineament study of satellite data over the Pan area. No additional subsurface exploration work was completed by Metallica. • Castleworth Ventures. Inc. completed exploration drilling and conducted geologic mapping, surface sampling, metallurgical test work, and resource estimation between 2003 and 2006. • Between 2007 and 2015, Midway completed 287 holes, of which 260 were reverse circulation and 27 diamond core drillholes for a total of 136,507 ft. Drilling efforts focused on expanding known mineralization, but also included confirmation drilling, core drilling for metallurgical samples, and exploration drilling in several potential target areas on the Pan property. Midway drilled seven water supply or monitoring wells in 2012. These were logged for geology, but not assayed and are not included in the drillhole database. In addition to exploration drilling, Midway completed geologic mapping, soil and outcrop sampling, and a gravity survey. • Midway began construction of the Pan Mine in February 2014. Mining was initiated in October 2014 and heap leaching was initiated in February 2015. The first gold pour was in March 2015. Mining operations were suspended in June 2015 due to poor leach pad permeability and slower metal recovery than anticipated. Midway initiated bankruptcy in June 2015. Leaching and gold recovery continued through bankruptcy proceedings and the sale of the Property to GRP. • GRP Pan, LLC acquired the Pan assets on May 17, 2016, from subsidiaries of Midway.

Drilling history to date is summarized in Table 6-1. More than 1,200 exploration or resource definition drillholes have been completed at Pan; many of the earliest drillholes cannot be verified, and are not included in the database. Most drillholes completed early in the Project history by Alta Gold and Echo Bay are not included in the current database, due to lack of verifiable collar locations, geology and/or assay results. Water wells drilled by Midway in 2012 were logged for geology but not assayed, and are excluded from the Table 6-1.

The current Mineral Resource drillhole database includes 1,179 drillholes totaling 377,744 ft, plus 2,324 ft in six water wells logged for geology but not sampled for assay. Of the assayed drillholes in the database, 1,146 holes with 364,839 ft were drilled by RC or rotary methods, and the rest were diamond core holes, totaling 12,905 ft in 33 drillholes.

MDA (2005), and Gustavson (2011, 2015) have reported on validation of the existence of drillhole collar location information, drilling logs and assay records for the drillholes in earlier modeling databases. Data verification and validation for the 2016 drillholes is reported in subsequent sections of this document.

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Table 6-1: Project Drilling History Holes Drilled Footage Drilled Company Years Drill Type (RC/ Core) (RC/Core) Amselco 1978 to 1985 84 21,771 RC Homestake 1980 3 620 RC Hecla 1986 7 1,415 RC Echo Bay* 1987 to 1988 108/5(1) 19,905/825(1) RC/Core (Met) Alta Bay Venture 1988 to 1991 213 66,960 RC Alta Gold* 1991 to 1992 10/7 2,645/958 RC (Twin)/Core (Met) Latitude/Degerstrom JV 1999 to 2001 54 16,143 RC Castleworth Ventures 2003 to 2006 290/6 68,005/1,289 RC/Core Midway Gold(2) 2007 to 2015 260/27 124,355/11,616 RC/Core GRP Minerals 2016 127 45,665 RC Totals In Database 1,146/33 364,839/12,905 RC/Core Source: GRP and SRK, 2017 (1) No Alta Gold drillholes, or core drillholes by Echo Bay, are incorporated into the database for lack of verifiable collar locations, geology and/or assay results. (2) Midway drilled 8 groundwater supply or monitoring wells in 2012. These were logged for geology, but not assayed; and are not included in this table. Six of these are included in the geological database, but none have assay data.

6.3 Historical Mineral Resource and Reserve Estimates Many of the historical Resource and Reserves estimates for Pan were completed prior to implementation of NI 43-101 standards. A Qualified Person has not done sufficient work to classify these historical estimates as NI 43-101 compliant, and the issuer is not treating these as currently compliant.

6.3.1 Echo Bay A qualified person has not done sufficient work to classify the Echo Bay historical estimate as a current resource estimate or Mineral Reserve and the issuer is not treating the historical estimate as a current resource estimate.

Echo Bay completed a cross-sectional polygonal ore reserve estimation in 1988, presented in Table 6-2. These reserve estimates have not been verified, are not considered reliable, are not relevant to the updated mineral resource presented in this report, and are mentioned here for historical completeness only.

The estimate was prepared based on grade cut-offs of 0.015 oz/t Au and 0.020 oz/t Au over minimum drill lengths of 10 ft. The area of influence allowed per hole was ½ the distance to the adjacent cross- section, up to 100 ft, in the north-south direction, and ½ the distance to the nearest hole, up to 50 ft, in the east-west direction. Tonnage factors used were 15 ft3/t at North Pan, and 13 ft3/t at South Pan.

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Table 6-2: Echo Bay Polygonal Ore Reserve Estimation, 1988 0.015 oz/t Au Cut-off 0.020 oz/t Au Cut-off Area Tons Gold Grade Contained Au Tons Gold Grade Contained Au (oz/t) Ounces (oz/t) Ounces North Pan 2,877,822 0.027 76,258 1,869,200 0.032 59,146 South Pan 2,476,340 0.031 76,689 1,958,365 0.035 68,244 Total 5,354,162 0.029 152,947 3,827,565 0.033 127,390 Source: Jeanne, 1988, reported in MDA, 2005

6.3.2 Alta Bay Joint Venture Documentation of the following Alta Bay resource and reserve estimates is limited to annual reports submitted to LFC Trust that pre-date NI 43-101, and none appear to be in compliance with NI 43-101 standards.

Alta Bay calculated a polygonal geologic ore reserve in 1988 from 100 ft spaced cross-sections, presented in Table 6-3. The estimation was completed at 0.020 oz/t Au cut-off and an area of influence of 100 by 50 ft per drillhole. Tonnage factors used were 15 ft3/t at North Pan, and 13 ft3/t at South Pan.

Table 6-3: Alta Bay Polygonal Geologic Ore Reserves, 1990 Area Tons Gold Grade Contained Ounces (oz/t Au) North Pan 6,744,406 0.021 140,942 South Pan 4,191,765 0.025 106,130 Total 10,936,171 0.023 247,072 Source: Myers, 1990, reported in MDA, 2005

In 1989 Alta Bay reported the results of [electronic] computer generated ore reserves for the Pan Project, summarized in Table 6-4. The annual report to LFC Trust indicates a strip ratio of 1.87 for North Pan and 1.63 for South Pan, but no other details are provided in the report. No original work could be located to further document this estimate.

Table 6-4: Alta Bay Computer Generated Ore Reserves, 1990 Area Tons Gold Grade Contained Ounces (oz/t Au) North Pan 5,125,240 0.022 112,509 South Pan 5,874,519 0.020 117,972 Total 10,999,759 0.021 230,481 Source: Myers, 1990, reported in MDA, 2005

In 1991, Alta Bay updated the polygonal “geologic ore reserves” for the project. This estimate was prepared using tonnage factors of 13 ft3/t for all material, except argillaceous material at South Pan, which has a tonnage factor of 14 ft3/t. All other parameters are the same as used in the previous estimation.

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Table 6-5: Alta Bay Polygonal Geologic Ore Reserves, 1991 Area Tons Gold Grade Contained Ounces (oz/t Au) North Pan 6,744,406 0.0209 140,942 South Pan 4,687,126 0.0238 111,641 Total 11,431,532 0.0231 252,583 Source: Myers, 1991, reported in MDA, 2005

Also in 1991, Alta Bay reported “recoverable geologic ore reserves” for the Pan deposit. This model was completed using a tonnage factor of 13 ft3/t for North Pan and South Pan, a gold recovery rate of 65%, and a gold price of US$400/oz (Myers, 1991). No geology was used to constrain the model, and no other details were reported in the annual report to LFC Trust.

Table 6-6: Alta Bay Computer Model Generated Recoverable Ore Reserves, 1991 Area Contained Ounces(1) Recoverable Ounces North Pan 153,762 99,945 South Pan 115,343 74,973 Total 259,105 174,918 Source: Myers, 1991, reported in MDA, 2005 (1) Contained Ounces values are calculated from Recoverable Ounces and recovery rate.

6.3.3 Latitude Minerals Corporation Prior to performing any surface work at the Pan Project, Latitude contracted Lynn Canal Geological Services of Juneau, Alaska to compile a digital drilling database, construct a three-dimensional geologic model, and estimate mineral resources on the property. The resource was modeled by performing variography on composited drill data to establish reasonable estimation parameters and estimated gold grades. Faults and lithologic contacts were used as hard boundaries. Tonnage factors applied were 13 ft3/t at North Pan and 14 ft3/t at South Pan. The resource estimate is summarized in Table 6-7, and according to MDA (2005) it appears to conform to definitions and criteria set out in NI 43-101. This resource estimate was not reviewed for the current report and is presented for project history only. Increase of the resource from the previous estimate appears to be the result of a lower resource CoG, as the same data was used for both.

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Table 6-7: Latitude Resource Estimate, 1999 Indicated Resources North Pan South Pan Total Indicated Cut-off Gold Gold Gold Tons Gold Tons Gold Tons Gold (oz/t Grade Grade Grade (Mt) Ounces (Mt) Ounces (Mt) Ounces Au) (oz/t Au) (oz/t Au) (oz/t Au) 0.010 10.41 0.017 172,800 8.46 0.017 144,300 18.86 0.017 317,100 0.015 4.88 0.022 107,900 4.26 0.022 94,900 9.14 0.022 202,800 0.020 2.37 0.028 66,100 2.25 0.027 61,300 4.62 0.028 127,400 Inferred Resources North Pan South Pan Total Indicated Cut-off Gold Gold Gold Tons Gold Tons Gold Tons Gold (oz/t Grade Grade Grade (Mt) Ounces (Mt) Ounces (Mt) Ounces Au) (oz/t Au) (oz/t Au) (oz/t Au) 0.010 3.46 0.013 44,500 3.89 0.013 50,600 7.34 0.013 95,100 0.015 0.78 0.017 13,900 0.94 0.018 17,300 1.72 0.018 31,200 0.020 0.14 0.024 3,400 0.31 0.022 6,900 0.45 0.023 10,300 Source: White and Buxton, 1999, reported in MDA, 2005

6.3.4 Castleworth Ventures After exploration drilling in 2003 and 2004, Castleworth Ventures commissioned MDA to complete a NI 43-101-compliant resource estimate on the Pan Project. Parameters for the estimate are thoroughly discussed in the 2005 MDA report, and the results are summarized in Table 6-8. Using a 0.010 oz/t Au cut-off, the measured and indicated total resource is 18.97 Mt at 0.019 oz/t Au, with 361,400 gold oz contained. The inferred total was 8.30 Mt at 0.017 oz/t Au, with 140,600 gold oz contained. This resource evaluation used an economic cut-off of 0.010 oz/t Au. Reported resources are total in situ resources unconstrained by an economic pit shell.

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Table 6-8: Castleworth Ventures Resource Estimate, 2005 Measured Resources North Pan South Pan Total Measured Cut-off Gold Gold Gold Tons Gold Tons Gold Tons Gold (oz/t Grade Grade Grade (Mt) Ounces (Mt) Ounces (Mt) Ounces Au) (oz/t Au) (oz/t Au) (oz/t Au) 0.010 3.09 0.019 59,600 - - - 3.09 0.019 59,600 0.015 1.66 0.026 42,700 - - - 1.66 0.026 42,700 0.020 1.03 0.031 32,200 - - - 1.03 0.031 32,200 0.030 0.40 0.043 17,300 - - - 0.40 0.043 17,300 0.040 0.19 0.054 10,300 - - - 0.19 0.054 10,300 0.050 0.10 0.064 6,100 - - - 0.10 0.064 6,100 Indicated Resources North Pan South Pan Total Indicated Cut-off Tons Gold Gold Tons Gold Gold Tons Gold Gold (oz/t (Mt) Grade Ounces (Mt) Grade Ounces (Mt) Grade Ounces Au) (oz/t Au) (oz/t Au) (oz/t Au) 0.010 9.13 0.018 162,600 6.75 0.021 139,200 15.88 0.019 301,800 0.015 4.88 0.023 111,300 4.53 0.025 112,500 9.31 0.024 223,800 0.020 2.50 0.029 73,500 2.84 0.030 84,100 5.34 0.029 157,600 0.030 0.77 0.042 32,600 1.04 0.040 41,800 1.81 0.041 74,300 0.040 0.36 0.052 18,700 0.42 0.050 20,700 0.77 0.051 39,400 0.050 0.20 0.058 11,600 0.15 0.061 9,300 0.35 0.060 21,00 Inferred Resources North Pan South Pan Total Inferred Cut-off Tons Gold Gold Tons Gold Gold Tons Gold Gold (oz/t (Mt) Grade Ounces (Mt) Grade Ounces (Mt) Grade Ounces Au) (oz/t Au) (oz/t Au) (oz/t Au) 0.010 2.82 0.017 49,200 5.49 0.017 91,400 8.30 0.017 140,600 0.015 1.46 0.023 32,900 3.17 0.020 62,900 4.62 0.021 95,900 0.020 0.79 0.028 22,000 1.12 0.026 28,800 19.1 0.027 50,800 0.030 0.26 0.036 9,600 0.28 0.036 9,200 0.52 0.036 18,700 0.040 0.08 0.045 3,600 0.04 0.045 2,000 0.12 0.045 5,500 0.050 0.01 0.051 700 0.01 0.053 400 0.2 0.052 1,200 Source: MDA, 2005

6.3.5 Midway 2011 Between 2006 and 2011, Midway completed 209 drillholes, primarily RC holes for exploration and resource delineation, and several core holes for metallurgical studies. Estimated Resources and Reserves from the 2011 Feasibility Study are reported in Table 6-9 and, Table 6-10 respectively.

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Table 6-9: Midway Resource Estimate, 2011 Pan Total Measured Resource CoG (oz/t) Tons Grade Au oz/t Ounces 0.008 30,150,640 0.0173 520,186 0.006 34,013,935 0.0161 546,756 0.004 40,697,193 0.0142 579,238 Pan Total Indicated Resource 0.008 29,901,186 0.0152 453,351 0.006 35,992,335 0.0138 495,357 0.004 47,529,031 0.0116 550,571 Pan Total Measured plus Indicated Resource 0.008 60,051,826 0.0162 973,537 0.006 70,006,270 0.0149 1,042,112 0.004 88,226,224 0.0128 1,129,809 Pan Total Inferred Resource 0.008 1,952,486 0.0170 33,120 0.006 2,457,481 0.0149 36,581 0.004 4,330,080 0.0105 45,261 Source: Gustavson, 2011

Table 6-10: Midway Reserves Statement, 2011 Total Reserves Tons Gold (000’s) oz/t Ounces (000’s) Proven Reserves 27,827 0.018 487.51 Probable Reserves 25,427 0.015 376.71 Proven & Probable Reserves 53,254 0.016 864.22 Inferred within Designed Pit 695 0.013 9.0 Waste within Designed Pit 94,582 Total tons within Designed Pit 148,531 Source: Gustavson, 2011

6.3.6 Midway 2015 Midway issued an updated feasibility study (Gustavson, 2015) following a new resource and reserves estimation that incorporated early mine production data. The 2015 updated Mineral Resource and Mineral Reserve statements are presented in Table 6-11 and Table 6-12, respectively. The 2015 Mineral Resource Estimate and Reserves Statement both meet NI 43-101 criteria.

Table 6-11: Midway Resource Estimate, 2015 Measured Indicated M&I Inferred Cut-off Tons Grade Contained Tons Grade Contained Tons Grade Contained Tons Grade Contained (oz/t) (000’s) (oz/t) (000’s oz) (000’s) (oz/t) (000’s oz) (000’s) (oz/t) (000’s oz) (000’s) (oz/t) (000’s oz) 0.008 15,676 0.017 264.7 12,208 0.014 167.4 27,886 0.016 433.3 6,014 0.015 88.4 0.006 18,339 0.015 283.3 15,818 0.012 192.8 34,157 0.014 477.1 9,517 0.012 112.5 0.004 20,430 0.014 293.4 19,185 0.011 210.1 39,614 0.013 503.8 15,400 0.009 141.1 Source: Gustavson, 2015 Note: Open pit optimization was used to determine potentially mineable tonnage. Measured, Indicated and Inferred mineral classification was determined according to CIM Standards. Mineral resources, which are not mineral reserves, do not have demonstrated economic viability. The 2015 Measured, Indicated and Inferred resource is constrained within a US$1,500 LG Pit shell. The base case estimate applies a CoG of 0.004 oz/t based on the current operating costs, the 2011 Feasibility Study recoveries, and a US$1,200 gold price.

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Table 6-12: Midway Reserves Statement, 2015 Total Reserves Tons Gold All Pits (000’s) oz/t ounces (000’s) Proven Reserves 14,004 0.0155 217.4 Probable Reserves 7,192 0.0118 85.1 Proven & Probable Reserves 21,196 0.0143 302.4 Waste within Designed Pits 19,289 Total Tons within Designed Pits 40,486 Source: Gustavson, 2015

6.4 Historical Production Application of process solution to the leach pad began at Pan in March of 2015 and by June 2015, Midway initiated bankruptcy proceedings. Production continued from the stacked ore while reorganization was underway. Production did not stop after the sale to GRP Minerals, but by that time the rate of gold production from the stacked ore had diminished greatly. The production record is summarized in Table 6-13.

Table 6-13: Historical Gold Production at Pan Mine Operator Years of Production Gold Ounces Midway Gold Corp. March 2015-May 2016 27,586 GRP Minerals Corp. May 2016- January 2017 2,298 Total 30,514

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7 Geological Setting and Mineralization 7.1 Regional Geology The Pan Project is located in the Pancake Range of central Nevada, in the eastern sector of the Great Basin Physiographic Province (Figure 7-1. When bedrock sediments were deposited during the middle to late Paleozoic Era, what is now central Nevada was at the margin of the North American plate. Variations in sea level caused facies changes in the sediments, from deep water shale to shallow water sandstone, and calcareous sediments at intermediate depths.

The Great Basin region was subjected to compression during the Sevier and Laramide orogenies during the Cretaceous and early Tertiary, about 140 to 60 mega-annum (Ma). This compression resulted in the formation of generally north-striking folds and thrust faults. Localized magmatism was common during this period, and metal deposits related to igneous activity of this period are widespread throughout western North America. Examples near Pan include the Mt. Hope porphyry-skarn system and the Mt. Hamilton silver-gold deposit.

The current Great Basin landscape is shaped by crustal extension, which began in the middle Tertiary and resulted in north-south trending mountain ranges and wide intervening valleys with thick sedimentary deposits. Mountain ranges are comprised of folded and tilted, Jurassic to Cambrian-age marine sedimentary rocks that have been uplifted on steeply dipping normal faults. Precambrian metamorphic rocks are present in some ranges, like the Ruby Mountains north of the Project, but Paleozoic marine sedimentary rocks comprise the typical bedrock in the region.

Tertiary extension has also caused localized volcanism, resulting in mafic to felsic flow, tuff, and ash units capping sedimentary rocks. Volcanic units occur north and southeast of the Pan deposit areas.

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Figure 7-1: Regional Geology Map

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7.2 Local and Property Geology Geology in the Project area is dominated by Middle to Late Paleozoic stratigraphy overlain by minor Tertiary-aged volcanic units. Quaternary-aged detrital deposits are limited to drainage channels. Consequently, there is good bedrock exposure in most of the Project area.

7.2.1 Lithology and Stratigraphy Lithologic units in the Pan area are Devonian- to Pennsylvanian-age marine sediments, Cretaceous igneous intrusions, Tertiary volcanic tuffs and debris flows, and minor Tertiary to Quaternary alluvial deposits. Midway geologists mapped the thickness and location of the stratigraphic units at Pan in 2013, and the results are presented below, including a geologic map in Figure 7-2. The stratigraphic column generated from field mapping is shown in Figure 7-3. Lithologic units are presented in order from oldest to youngest.

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Source: GRP, 2016 Figure 7-2: Geologic Map of the Pan Mine Area with Conceptual Pit Crests

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Source: Midway, 2013 Figure 7-3: Pan Project Stratigraphic Column

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Simonson Dolomite (Ds) – Devonian The Simonson Dolomite is the lowermost and oldest lithologic unit intersected by drilling, and it does not outcrop in the Project area. Thickness ranges from 500 to 1,300 ft thick in White Pine County (Smith, 1976), but only the top portion of the dolomite has been drilled at South Pan. The dolomite is a light gray, massively bedded unit.

Devil’s Gate Limestone (Dd) - Late Devonian The Devil’s Gate Limestone is the oldest lithologic unit that outcrops in the northern Pancake Range. Measured thicknesses of the unit range from about 1,000 ft to 2,500 ft, but at Pan only the topmost 438 ft are exposed on the surface. The section at Pan is interpreted to be a part of the Hayes Canyon Member, which consists of medium to massive bedded sparitic to micritic limestone that is often mildly argillaceous with some sandy beds. Amphipora, rugose and gastropod fossils are common. The upper Devil’s Gate Limestone is a host of gold mineralization at the Pan property, near the contact with Pilot Shale.

Pilot Shale (MDp) - Late Devonian to Early Mississippian Pilot Shale at Pan is 678 ft thick, and has different characteristics in the upper and lower portions of the unit. Lower Pilot is calcareous and carbonaceous flaggy siltstone with silty limestone interbeds near the base. It is dark gray on a fresh surface and weathers to buff or tan. Silicified and argillized Lower Pilot Shale is a host of gold mineralization at the Pan property.

Upper Pilot is mostly thinly bedded siltstone with zones of thinly bedded papery siltstone.

Joana Limestone (Mj) - Mississippian Joana Limestone is 120 ft thick at Pan, and ranges in thickness from 90 to 500 ft in White Pine County (Smith, 1976). It is a gray, medium grained, unevenly bedded limestone with abundant fossil fragments, chert nodules, and detrital limestone interbeds. Reported fossil types include echinoderm, bryozoans, foraminifera, algae, and crinoids. Locally, quartz arenite sandstone is present at the base of the unit.

Chainman Shale (Mc) - Mississippian The Chainman Shale ranges in thickness from 1,000 to 2,000 ft, and is 700 ft thick at Pan, possibly indicating structural thinning from regional faulting. It consists of dark gray to black shale with thin interbeds of olive gray silty shale and siltstone. The upper most portions contain relatively thin beds of rusty colored sandstones which grade upward into the Diamond Peak Formation.

Diamond Peak Formation (Md) - Mississippian The Diamond Peak Formation consists of irregular beds of chert pebble orthoconglomerate, paraconglomerate and litharenite sandstone. Thickness of the formation ranges from less than 1,000 to 3,700 ft, and was measured at about 1,700 ft thick near Pan.

Ely Limestone (Pe) - Pennsylvanian The Ely Limestone was measured at 2,070 ft in the Pan area. The lower 700 ft consist of thin to medium bedded micrite to fine sparite with abundant brachiopod beds and tan to grey chert stringers and nodules. The upper 1,370 ft is medium to thin bedded limestone and silty limestone with minor chert nodule horizons. The siliciclastic content increases near the top of the unit.

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Igneous Intrusives (Ki) - Cretaceous Intrusive rocks are not common in the Pan area. Within the deposit area, rocks interpreted as thin dikes have been intercepted in a few drillholes, which consist of pinkish monzonite porphyry containing irregular feldspar, hornblende, and biotite phenocrysts in a fine quartz-orthoclase matrix. Texture and composition is similar to that of other intrusive rocks in the White Pine Mountains, and these dikes are thought to be related temporally.

Volcanic Units, General (Tv) - Tertiary Tertiary volcanic flows and tuffs cover the sedimentary units at the north end of North Pan, and a fairly young volcanic debris flow mantles the sediments southeast of the South Pan pit. At the north end of the North Pan mineralization, drilling has penetrated through these volcanic units and intercepted mineralized sediments. This would indicate that mineralization is older than the volcanic units.

Pinto Basin Tuff (Tvpb) The Pinto Basin tuff is a light-colored pumice-rich, non-welded air fall tuff. Its thickness has been measured at 285 ft near Pan and has been dated at other locations at 34.6 Ma (Nolan et al, 1974).

Richmond Mountain Andesite (Tvb) The Richmond Mountain andesite is a dark, aphanitic to glassy flow with flow banding, minor cooling jointing, and a basal layer of scoria. Near Pan the unit is 240 ft thick.

Pancake Summit Tuff (Tvps) Tan or pink, crystal-rich, moderately welded ash flow tuff with coarse smoky quartz, sanidine, and biotite crystals. It is 400 ft thick near Pan.

Bates Mountain Tuff (Tvbm) Densely welded, crystal-poor tuff with common spherulitic textures and vapor phase alteration. It is 50 ft thick near Pan.

Debris Flow (Tvdf) Heterolithic, unconsolidated debris flow consisting of basaltic and siliciclastic cobbles and boulders in finer pumice-rich matrix. Thickness is variable and it is interpreted as a volcanic unit.

Tertiary and Quaternary Sedimentary Deposits Silt to cobble clast size, unconsolidated material that post-dates the rock units listed above.

QTog: Older gravel commonly cemented by caliche, with incised drainages later filled with alluvium, and overlain by colluvium.

Qc: Colluvium as slope debris of variable composition and thickness, gravel to cobble clast size.

Qal: Alluvium as graded channel deposits, silt to gravel clast size, mostly limited to currently active intermittent stream channels.

7.2.2 Alteration Alteration associated with the Pan deposits is typical of Carlin-style gold systems, and includes silicification, argillization, decalcification, and oxidation. Breccia bodies may be silicified, as jasperoid, or argillized, and can contain variably altered fragments, including silicified, clay altered, and/or

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decalcified fragments. The Pilot Shale-Devil’s Gate Limestone contact may be argillized and/or decalcified.

Silicification is characterized by multi-phase brecciation and passive silica flooding along bedding and structures. Silicification occurs in breccia zones and in the Pilot Shale, and small zones have also been identified in the Devil’s Gate Limestone. Minor quartz veining has been reported in North Pan, particularly in association with the Campbell Jasperoid.

Clay alteration is generally associated with hydrothermal alteration and carbonate destruction. Clay along faults and bedding is common in both the Pilot Shale and Devil’s Gate Limestone, and is a common matrix of solution/collapse breccias. Clay content in some South Pan ores can be upwards of 30% of the rock by weight, and is dominantly composed of illite and lesser amounts of kaolinite.

Decalcification of both the Devil’s Gate Limestone and calcareous siltstones of the Pilot Shale is spatially associated with mineralization encountered at Pan. Decalcification results in a sanded, punky texture, especially in lithologic units with high original carbonate content.

Mineralization at Pan occurs in strongly oxidized rock to a nominal depth of 500 ft and locally as deep as 700 ft. Oxidation is prevalent throughout each of the zones with strong development of goethite and hematite iron oxides. Liesegang banding in the Pilot Shale is associated with oxidation. Sulfide minerals have rarely been described in drill logs at Pan, and are not associated with known gold mineralization.

Barite is a typical accessory mineral for gold mineralization and silicification. Most mineralized areas contain elevated barite levels, typically above 0.2% weight percent. Hydrothermal barite veins were briefly exploited in the 1970s at the Cue Ball Barite Mine, in the southeast area of the Property.

7.2.3 Structure The Branham Fault Zone is a north-south trending, steeply dipping structure that controls the geology at Pan. The fault zone is exposed in the South Pit, and has a slight dip west from vertical. On the west side of the fault, Devonian through Mississippian stratigraphic units strike north-south and dip 10° to 30° westward. On the east side of the fault, Devonian through Permian units strike about 30° to 35° to the northwest and dip 65° to 70° to the northeast.

The stratigraphic units on the east side of the Branham Fault comprise the southwest limb of a northwest trending syncline which is truncated by the Branham Fault. The Branham Fault is recognizable in the field by the juxtaposition of younger sedimentary rocks to the east against older sedimentary rocks to the west, and can be tracked north to Tertiary volcanic units. The displacement along the Branham fault is not yet completely understood, but given the juxtaposition of broadly folded, northeast dipping units against gently westerly dipping units, it seems difficult to ascribe simple normal displacement to the fault. It may be that the fault has a complex history of movement, perhaps with different displacement vectors, over its active history. To the south of the deposit area, the Branham Fault may be offset by cross-cutting northeast trending faults and appears to proceed south with Devil’s Gate Limestone on both sides of the fault, and without the distinctive alteration and mineralization in the Pan deposit area.

The terrain west of the Branham Fault is cut by a number of northeast trending high angle faults with varying displacement senses. There are also a number of north trending faults, which may include high angle, dip-slip faults, and low angle, easterly-directed thrust faults.

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Considerable solution/collapse breccia is present along and in proximity to the Branham Fault and other associated structures to the west. The breccias host a substantial portion of the gold resource at the Pan Project and are interpreted as solution/collapse breccias and hydrothermal breccias. These formed by the small-scale transport of broken rock bodies in association with hot hydrothermal fluids during the mineralizing event(s). The resultant geometry is one of elongate pods of brecciation and alteration that form along north-south or northeasterly trending faults, along with brecciation and alteration forming along bedding planes of preferential units, most notably along the contact of the Pilot Shale and Devil’s Gate Limestone. Breccias vary from clast to matrix supported, and contain angular to subrounded sedimentary fragments. Associated crackle breccia, wherein the rock is shattered but fragments remain roughly in place and are not rotated, occurs marginal to or as relicts within the larger breccia bodies, and is altered and mineralized in a manner similar to the more well- developed breccias.

7.3 Significant Mineralized Zones

7.3.1 Type Gold mineralization at the Pan deposit is Carlin-style disseminated and typically very fine grained.

7.3.2 Character The disseminated mineralization is hosted in oxidized solution breccia and sedimentary stratigraphy and is typically associated with either strong silica alteration or moderate to strong argillic alteration along structures and sedimentary unit contacts.

7.3.3 Distribution Pan has three main mineralized zones; North, Central, and South. Together these zones represent over 6,000 feet of strike length along the primary mineralized structure: The Branham Fault. Mineralization extends to a nominal depth of 500 feet and up to 700 feet as drilled in the fault zone. The mineralization is usually steeply dipping and ranges from 50 to 200 feet in true width.

Away from the main fault zone, gold mineralization follows the Devil’s Gate Limestone – Pilot Shale contact, and is also controlled by steeply-dipping faults that trend north-south or northeast-southwest. North Pan is dominated by silicified solution breccia of Pilot Shale and Devil’s Gate Limestone adjacent to the Branham Fault. Central and South Pan have more argillic alteration than silicic. Mineralization in Central Pan is at the Pilot – Devil’s Gate contact where faults intersect it, and is not associated with the Branham Fault. South Pan mineralization occurs in two zones: a wide, clay-altered solution breccia zone along the west side of the Branham Fault, and a stratigraphically-controlled zone east of the Branham fault along the Pilot – Devil’s Gate contact. This zone dips northeast at about 55°.

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8 Deposit Type 8.1 Mineral Deposit The Pan gold deposits are Carlin-style, which are epithermal in origin, comprised of disseminated gold hosted in sedimentary rock units. Gold particles occur as micron to submicron size disseminations. Visible or coarse gold is not common in this type of deposit, and has not been observed at Pan. Controls on mineralization in Carlin-style systems and at the Pan Project include both structure and stratigraphy.

8.2 Geological Model At Pan, gold mineralization is generally distributed along high-angle faults, and in a more tabular fashion subparallel to stratigraphy. Solution breccias developed in association with faults at the Pan Project serve as the primary host for gold mineralization, and have internal anisotropy that follows relic bedding orientation. Additional mineralization is hosted in favorable stratigraphy, such as the lower Pilot Shale and the upper Devil’s Gate Limestone.

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9 Exploration The 2016 exploration work by GRP Minerals was the drilling program focused on adding to the mineral reserves. This work is described in Section 10 of this report.

The Pan Project has a long history of exploration dating back to 1978. Results from previous geologic mapping and geochemical sampling programs were digitized and added to GRP’s Geographic Information Systems (GIS) database in 2016. This surface dataset, in addition to historical drilling results, has helped GRP identify new exploration targets.

9.1 Relevant Exploration Work Exploration programs have been described previously by Gustavson (2015) and others. They include geologic mapping, rock chip and soil sampling, and a ground gravity survey.

9.2 Sampling Methods and Sample Quality Exploration sampling programs have been reported (Gustavson, 2015), and no additional exploration sampling has been completed since.

9.3 Significant Results and Interpretation The interpretation of geologic mapping and surface geochemistry, coupled with the understanding of the subsurface geology, has led GRP to identify several exploration targets near the Pan Mine pits, as well as other targets distributed throughout the Property. GRP intends to conduct exploration on these targets concurrent with mining, to increase Resources and Reserves.

9.3.1 Near Mine Targets Near mine targets are extension of, or additions to, ore bodies already being mined, or planned to be mined using existing data. These extensions may be to depth or along strike of outlined mineralization, or may not be connected to mineralization, but a new body adjacent to existing or planned workings. This type of target has several distinct advantages. The targets may already be within permitted boundaries, will likely have ore characteristics similar to ore currently being mined, and due to proximity to existing infrastructure, will likely have a low capital costs for development.

Figure 9-1 illustrates seven near mine exploration targets. Many of these targets may contain scattered existing drillholes, often with some mineralization. Others are yet to be drilled. As these targets are close to defined resources, they have the benefit of nearby drilling to aid in subsurface geological interpretations. Using these interpretations, it is possible to estimate the amount of drilling these targets would need to define resources in these regions. This information is presented in Table 9-1.

Due to proximity to defined mineral resources and existing mine infrastructure, these targets should have high priority in future drilling programs.

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Source: GRP, 2017. Figure 9-1: Map of Near Mine Exploration Targets

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Table 9-1: Near Mine Exploration Targets Estimated Drilling Target Location (ft) North Pan Sediments Pilot-Devil’s Gate contact west of current North Pit 12,500 Breccia Hill Pilot-Devil’s Gate contact between North and Central Areas 10,000 Limestone Canyon New target between planned pits in Central Area 3,000 North Extension South Mineralization along Branham Fault zone about 100 ft north 4,500 Pan of current South Pit Chainman-Diamond Peak contact in footwall of Branham Footwall Chainman 5,000 Fault Footwall Joana Joana-Chainman Contact in footwall of Branham Fault 5,000 South Pan South South of South Pit on Southeast trend 5,800 Extension Total 45,800 Source: GRP, 2017

9.3.2 Step-Out Targets There are many other exploration targets within the property boundary that remain to be tested. The map in Figure 9-2 shows these targets with surface geology and the approximate locations of North and South Pan deposits. Some of these targets have completed drillholes, including one area that contains several significant intercepts, but not enough coverage to include in the current Mineral Resource.

Most of these targets could benefit from geologic and structural mapping, and denser surface sample distribution. Additional surface exploration would contribute to refine drill targets. Midway completed this work in several of the current step-out target areas in 2013 and 2014.

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Source: GRP, 2017 Figure 9-2: Step-Out Targets

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10 Drilling The 2016 Pan drilling program consisted of 127 RC drillholes totaling 45,665 ft. To date, a total of 1,208 drillholes have been drilled at Pan (Figure 10-1 and Figure 10-2). A summary of the 2016 Pan drilling program follows. Previous drilling programs are summarized in Section 6.2. GRP completed 127 RC drillholes between July and December 2016, totaling 45,665 ft. Resource definition holes were the focus, with 75 total, and 49 closely-spaced drillholes completed for resource optimization in the current mine area. West of the current Resource areas, three condemnation drillholes were completed.

10.1 Type and Extent The contractor selected for the 2016 Pan program was O’Keefe Drilling, based in Butte, Montana. O’Keefe is an established drilling contractor experienced with RC drilling in Nevada. A truck-mounted Reichdrill 690 and a buggy-mounted Prospector 750 were used during the program. Angled RC drillholes between 120 and 720 ft long were completed with hammer bits of 5½ or 5¾ inches in diameter. A tricone bit was used when drilling conditions prevented penetration and sample recovery using a hammer bit, and was seldom necessary. Surface casing was installed to about 10 to 20 ft, if needed to stabilize the drillhole collar.

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Figure 10-1: Pan North Area Drillhole Collars

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Figure 10-2: Pan South Area Drillhole Collars

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10.2 Procedures Collar locations were staked in the field by GRP geologists, using a GPS-enabled tablet computer. When the rig was set up to drill, a GRP geologist verified the location, azimuth, and dip on surface before drilling began. Before drilling, cloth sample bags were each labeled with a serial sample number, and plastic chip trays were labeled with drillhole ID and depth intervals.

Both RC rigs included an in-line cyclone sample splitter. The riffles in the cyclone were adjusted to control the drill cuttings delivered to the discharge ports. For each 5 ft sample interval, a sample weight between 20 and 30 lb was targeted. A cloth sample bag in a five-gallon bucket was placed under one of the discharge ports of the sample splitter. The in-line cyclone splitter was adjusted so there was little or no overflow of drill cuttings from the sample bag.

Samples were placed in bins for storage and transport. When a bin was filled, or at the end of the shift, a cover was locked on it with a chain and a padlock. The full, locked bins were transported to a temporary storage area. Periodically, the bins were picked up by the assay lab with dedicated trucks and delivered directly to the lab for sample preparation and analysis.

Geologic logs were completed for each drillhole and compiled in the Project database. GRP geologists logged RC cuttings and data directly into Microsoft Excel® spreadsheets using a ruggedized tablet computer during drilling. Observations of drilling included changes in the drill cuttings, like particle size, color, voids, and intervals without circulation. Depths of bit changes and rod additions were noted. For each interval, a small sample of cuttings was retained in a chip tray for later visual logging.

The logging terminology for formation, lithology, alteration, oxidation, and waste type were preapproved, and any changes to the form required the approval of the project manager. All drillhole information was imported to a secure Microsoft Access® database, which was stored on the main project computer and backed up to the Pan Mine server. All completed drill logs were printed and catalogued by drillhole name. Paper copies of related drillhole information were filed with the printed logs, and stored at the Pan Mine office.

Loss of fines through dust dispersion is a potential source of sample bias, given the lack of groundwater at the Project. GRP addressed this potential bias by having the driller inject water to fluidize the drill cuttings. Sample collection was monitored by the rig geologist to ensure that the sample container did not overflow. Overflow of the sample container would cause a loss of fines, similar to the risk of dust dispersion. Overflow was minimized by limiting the amount of water injected and adjusting the cyclone splitter to reduce the mass of cuttings discharged to the sample port.

Downhole surveys are required to accurately locate completed drillholes for resource estimation. International Directional Services (IDS) of Elko, Nevada, used a Surface Recording Gyroscope, model DG-69, for downhole surveys. Downhole surveys were completed near the end of the planned drillhole, and the survey data at the final depth of some drillholes are projected values.

After drillhole completion, Basin Engineering of Ely, Nevada surveyed collar locations and provided the coordinates to GRP in UTM Zone 11N NAD 83, feet. Surface locations of completed drillholes were surveyed in several batches, with about 15 to 20 drillholes per batch.

10.3 Interpretation and Relevant Results The true thicknesses of drill intercepts are well understood in the context of geology at Pan. Geometry of mineralized zones was used to constrain modeled boundaries, particularly the extents of solution

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breccia, and orientation of gold mineralization continuity was applied to grade interpolation. Pan is a disseminated gold deposit with both structural and stratigraphic controls. Recent 2016 exploration drilling was aligned to cross sections to facilitate interpretations. Most of the drilling was oriented nominally northeast (Azimuth 60°) with dips between 60° to 75° from horizontal. As infill holes, they were not designed to achieve true-width intercepts rather, they were targeted to confirm mineralized contacts and add assay data in untested rock to improve the confidence of resource estimates. In most cases the 2016 drilling achieved between 50-70% of the true thickness of mineralization.

The cross-sections in Figure 10-3 through Figure 10-7 show only gold values from 2016 drilling, with modeled geology on the cross-section plane. The geological model includes all available data as of January 2017. Exploration drillholes are shown in all cross-sections. One section from each area also shows the closely-spaced, shallow grid drillholes that were completed for short-term mine planning and ore control in the North and South Areas.

Figure 10-3: Fire Assay Gold Results in 2016 South Drill holes, 14,271,045N

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Figure 10-4: Fire Assay Gold Results in 2016 South Drill holes, 14,271,800N

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Figure 10-5: Fire Assay Gold Results in 2016 South Drill holes, 14,272,300N

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Figure 10-6: Fire Assay Gold Results in 2016 North Drill holes, 14,279,800N

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Figure 10-7: Fire Assay Gold Results in 2016 North Drill holes, 14,280,925N

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11 Sample Preparation, Analysis and Security For the Pan 2016 drilling program, all sample preparation and analysis was completed by American Assay Labs (AAL), located in Sparks, Nevada. AAL is an independent analytical laboratory and holds ISO accreditation (ISO/IEC 17025:2005), which specifies “the general requirements for the competence to carry out tests and/ or calibrations, including sampling” (AAL, 2017). AAL’s internal Quality Management System (QMS) is based on the ISO/ IEC 17025 International Quality Standard. This system ensures that all laboratory procedures and internal quality criteria are consistent through time. The sample reduction and analytical procedures selected by GRP for this program are suitable for the type of results applicable to resource estimation for the Project. All tables and figures in this section were generated by SRK in 2017, unless otherwise noted.

11.1 Security Measures The drilling contractor was responsible for drilling and sampling, and a field geologist provided oversight and quality control during the process. RC chip samples were split, using a conventional rotary wet splitter at the rig site to an 8 to 10 kg mass, collected in cloth bags labeled with the serial sample number, securely tied to close, and placed in a sample bin (Figure 11-1). At the end of each shift, a cover was locked onto the bin to prevent unauthorized access to the samples and to protect them from weather and inadvertent contact with equipment (Figure 11-2). When each drillhole was completed, the bins were again locked in preparation for transport from the drill site to AAL in Sparks, Nevada. Chain of custody on the drill samples was maintained by GRP until the samples were relinquished to AAL for preparation, analysis, and temporary storage.

Source: SRK, 2016 Figure 11-1: Open Sample Bin, During Drilling

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Source: SRK, 2016 Figure 11-2: Closed Sample Bin, after Drillhole Completion

11.2 Sample Preparation for Analysis At AAL, Pan drillhole samples were prepared for analysis using current industry standard techniques that are suitable for disseminated gold deposits. Upon receipt, the samples were placed in drying ovens at 105 degrees Fahrenheit, and when dry, were massed to 0.01 kilogram (kg). The entire sample was jaw crushed to minus 10-mesh (2 mm) particles, and a 300 gram (g) split from a Jones riffle splitter was pulverized to minus 150-mesh (0.1 mm). The 300 g pulp sample was used for fire assay and cyanide-soluble gold analysis.

11.3 Sample Analysis Samples were analyzed by AAL, in Sparks, Nevada, for gold with the techniques listed in Table 11-1. Some certificates reported results in ppm only, but the majority were reported in both ppm and oz/t. No samples were fire assayed at greater than 10 ppm, the upper detection limit. If any had reported at greater than 10 ppm, a gravimetric finish would have been completed on the fire assay sample.

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Table 11-1: Gold Analysis Methods Method Unit Lower Procedure Detection Limit FA-PB30-ICP ppm 0.003 Fire assay fusion with Inductively Coupled Plasma FA-PB30-ICP oz/t 0.001 (ICP) finish, 30g charge All AuCN15 ppm 0.003 Sodium cyanide digestion in 1-hour tumble leach at Samples: ambient temperature, 15g charge, Atomic Absorption AuCN15 oz/t 0.001 Spectrometry (AAS)

Assay certificates included the sample ID code, dry sample weight, fire assay and cyanide-soluble gold results reported in ppm and oz/t, or in ppm only. Reference samples used for assay Quality Assurance/Quality Control (QA/QC) have certified values in ppm units. If necessary, ppm values were converted to oz/t values by GRP for resource estimation.

11.4 Quality Assurance/Quality Control Procedures GRP’s sampling and fire assay QA/QC procedures for the 2016 Pan drilling program included mineralized and barren control samples, and duplicate samples collected at the drill rig. The control samples assess the analytical capability of the lab, whereas blank samples test for cross- contamination during preparation. Both types of control samples may show sample mix-ups and instrument calibration drift. Reference material certified for cyanide-soluble gold content is not readily available. The assay QA/QC results presented below are fire assay only. Cyanide-soluble gold values were compared to total values from fire assay, and no issues in CN-sol results were apparent.

Drill rig duplicate samples assess the quality of sample reduction in the cyclone splitter attached to the reverse circulation drill discharge. Sample bias from this initial reduction would be apparent from comparing the primary and duplicate sample results.

AAL includes two levels of quality control for internal assessment of data quality.

1. Internationally certified reference and blank samples, and;

2. 10% of pulp samples have duplicate analysis.

Before AAL reports analytical results, they are compared to internal quality control criteria, and any failures are rectified before the certificate is released to the client.

11.4.1 Reference Samples Mineralized control samples used in the Pan 2016 drilling program are listed in Table 11-2. These Certified Reference Material (CRM) samples are sourced from internationally-recognized suppliers, and have reported mean gold value ranges in reported in ppm, equivalent to grams per metric tonne. All CRM sample results presented below are in ppm units as reported by AAL. The resource CoG for total gold is 0.171 ppm (0.005 oz/t). The selected CRM types have suitable gold values for comparison with economic Pan gold mineralization.

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Table 11-2: Certified Reference Material Mean Values Certified Lower 95% Upper 95% Mean - 2 Mean plus 2 Reference Source Mean Confidence Confidence Standard Standard Material Value Interval Interval Deviations Deviations OREAS 15f OREAS 0.334 0.326 0.341 0.301 0.366 OREAS 2Pd OREAS 0.885 0.869 0.900 0.826 0.943 OREAS 6Pc OREAS 1.52 1.470 1.580 1.39 1.66 OxC129 ROCKLABS 0.205 0.207 0.203 0.191 0.219 OxE126 ROCKLABS 0.623 0.628 0.618 0.591 0.655 OxJ120 ROCKLABS 2.365 2.348 2.382 2.239 2.491

CRM results by certificate date are presented in Figure 11-3 through Figure 11-8. Generally, all CRM performed well, and there are no apparent trends through time. Exceptions include OxC129 results reported on 16 November 2016, which are biased low. From the same certificate, OxE126, OREAS 15f, and OREAS 6Pc samples performed well, with no bias. Results from two OxE126 samples are greater than the maximum accepted value, and should be confirmed with the laboratory.

Figure 11-3: OREAS 15f Results

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Figure 11-4: OREAS 2Pd Results

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Figure 11-5: OREAS 6Pc Results

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Figure 11-6: CDN OxC129 Results

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Figure 11-7: CDN OxE126 Results

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Figure 11-8: CDN OxJ120 Results

11.4.2 Blank Samples Commercially available coarse landscape marble was used as barren control sample material. The geographic source of the material is not known, but marble is typically barren of gold and silver. Results from coarse blank samples would show any cross contamination during sample crushing from incomplete equipment cleaning between samples. Blank samples also show sample mix-ups, and may show high bias in analytical equipment calibration. Blank sample fire assay results by certificate date are shown in Figure 11-9.

Most of the blank sample results are less than five times the lower method detection limit (LMDL). Four samples are between five and ten times the LMDL, and one from PND16-48 is 22 times the LMDL. This sample may indicate a mix-up, and should be verified. The rest of the blank sample results are within the expected range, and do not require follow-up. Overall, the blank results indicate clean sample preparation, and no bias is evident.

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Figure 11-9: Pan 2016 Blank Sample Results

11.4.3 Duplicate Samples Duplicate samples were collected on every 25th drill sample. For all samples, half of the drill cuttings were collected. Duplicate samples are the other half of the cuttings, and for intervals without duplicate samples, the second half of the cuttings was discharged with the rest of the drilling fluid.

The 2016 program has 265 pairs of original and rig duplicate samples. Results are presented in Figure 11-10 by gold grade of the original sample, and in Figure 11-11 by assay certificate date.

The typical target range of drill sample duplicates is within 30% of the pair’s average value for disseminated gold deposits. At lower grades, greater deviation is expected, due to analytical uncertainty and the greater magnitude of relative differences for small numbers. At economic grades, duplicate sample pairs generally performed well. At sub-economic grades, there is more variation between original and duplicate values. From the charts of percent relative difference by original sample grade and by certificate date, no systematic bias is evident.

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Figure 11-10: Duplicate Samples Relative Difference by Grade

Figure 11-11: Duplicate Samples Relative Difference by Certificate Date

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11.4.4 Actions In certificate SP0116409, there were three CRM samples with drillhole PND16-05 that failed. GRP requested re-analysis on the samples from this drillhole, and the lab re-analyzed the entire certificate. The values on the re-issued certificate, SP0116409-R, meet assay QA/QC criteria. To date, no other corrective actions on assay results have been completed.

11.4.5 Results Although there are several samples that should be verified, there are no systematic quality issues through time, or with a particular certificate. Generally, reference and duplicate samples performed as expected.

11.5 Opinion on Adequacy Sampling, security, and sample preparation procedures implemented during the Pan 2016 drilling program meet or exceed current industry standards for quality. The secure sample bins at the drill rig are ideal to minimize sample handling and maintain chain of custody between the time of sample collection and transfer of custody to the laboratory. Sample preparation procedures ensured adequate particle size reduction before splitting out 300 g for pulp preparation. The assay QA/QC program assesses the sampling and analysis at most phases of the process, and no fatal flaws in data quality are apparent in the results. The analytical techniques used to assess total gold and cyanide soluble gold provide results suitable for resource estimation at this deposit.

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12 Data Verification The final modeling database provided by GRP was . It included collar locations, downhole trajectory surveys, geologic logging, and gold analysis data. For selected 2016 drillholes, each of these components was verified against source data and the results of the data verification are presented below.

12.1 Procedures A subset of thirteen drillholes completed in 2016 from North and South Pan were selected for data verification, summarized in Table 12-1. This subset represents the drilling program spatially and temporally. By both the total number of drillholes and assay intervals, 10 percent of the 2016 drilling was verified.

Table 12-1: Drillholes Selected for Verification Hole ID Purpose Area Total Depth PND16-001 Infill North 600 PND16-014 Infill North 460 PND16-023 Infill North 420 PND16-034 Infill South 560 PND16-047 Infill South 500 PND16-052 Infill South 540 PND16-064 Infill South 600 PND16-075 Infill North 560 PND16-080 Grid South 140 PND16-091 Grid South 120 PND16-105 Grid South 120 PND16-126 Grid North 120 PND16-138 Grid North 120 Source: SRK, 2017

12.1.1 Drillhole Location Verification Collar location surveys were compiled from digital tables provided by Basin Engineering, and imported to the database as available. Eleven of the thirteen drillhole collars verified had no discrepancies from the source data files. One had a discrepancy of about 0.4 ft in the elevation value, and the other had discrepancies on the order of 0.1 ft for northing and elevation values. The rest matched the source files provided by the surveyor.

Downhole surveys were imported from digital comma-separated values (CSV) tables provided by International Directional Services (IDS) from gyroscopic surveys. The downhole surveys from the thirteen drillholes verified had no discrepancies from the source data files.

12.1.2 Logged Geology Verification For the 2016 drilling program, geologic logging was done in an Excel form that included data validation. Logged values were limited with pick lists for the data fields. The completed log files were summarized in separate tables and appended to the central database tables for formation, lithology, and alteration.

During lithology and alteration modeling, no obvious discrepancies of logged material types in proximal drillholes from different drilling programs were noted. Because the new drillholes support the existing

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data, we conclude that logging methods have been consistent for the current data set, and it is suitable to model material types in the resource areas.

Formation and Lithology Logged formation was applied to model stratigraphy for the 2017 model, particularly to define the Pilot shale and Devil’s Gate limestone contact in all areas of the resource model. Solution breccia, from the logged lithology field, was modeled as a later feature, and overprints the stratigraphy. GRP’s polyline interpretation of formation and lithology was weighted on newer drilling data, and generally matched older drilling data where it was available. This shows consistent lithology and formation assignment through time.

The formation intervals for all thirteen drillholes verified match the source data. PND16-80 was re- logged after senior review, to correct discrepancies with nearby drillholes. The original and corrected logs were reviewed, and the corrected geology is in the database. Two intervals in PND16-014 should be reviewed and edited to eliminate a gap, but the rest of the database values for verified drillholes match the source data.

Lithology 1 and Lithology 2 values in the database matched the source logs for all thirteen drillholes verified. Database lithology in general may need some cleanup to eliminate invalid depths and missing data. The clean data should be used to update the InterpLith table Access database.

Alteration For the 2016 drilling program, alteration was logged as primary, secondary, and tertiary types, with an intensity for each in a separate column. SRK processed the alteration data to assign intensity by alteration type from Alt 1, Alt 2, Alt 3 fields, to fully represent the logged alteration in a format suitable for implicit modeling. For example, all logged silicic alteration intensities from Alt1, Alt2, and Alt3 fields were collated to a new Silicification field, and the logged intensities were used for implicit modeling via the indicator interpolant method. Alteration data used for modeling was verified against source data after processing, and was found to fully represent it. Alteration data verification discussed below was completed on the logged vs. database values.

Five of the thirteen drillholes have incomplete or incorrect alteration values in the database. Most of the discrepancies were in Alt2 or Alt3 types or intensities, and primary alteration matched source data with few exceptions.

12.1.3 Gold Value Verification Gold is the only metal estimated in the 2017 mineral resource model and was the sole analyte for 2016 drillhole samples. For this drilling program, AAL reported fire assay and cyanide-soluble gold results for all samples in digital CSV tables and PDF certificates. The CSV files are modified by GRP to remove QA/QC samples, and columns for sample interval from and to depths are added. Edited CSV files are then imported to the master database. Fire assay gold values in ppm were collated to the “Au_sel_ppm” field, and reported oz/t values were collated to the “Au_sel” field. For the few drillholes with ppm values reported without corresponding oz/t values, the ppm values were converted to oz/t in the “Au_sel” field. The values in the “Au_sel” field were used for resource estimation. Values reported on the secure PDF certificates were compared to the values in the “Au_sel_ppm” and “Au_sel” fields used for resource estimation.

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The discrepancies found were only in PND16-001, for samples that had a laboratory duplicate in addition to the primary sample. The reported primary and duplicate values were averaged, and this average value was carried through to the “Au_sel” fields. Duplicate and primary sample values should not be averaged, and the values in the database should be reimported to match the values reported by the laboratory for each sample. Laboratory duplicate samples are a portion of the assay Quality Assurance/ Quality Control program, and duplicate sample results should be separate from primary results. Approximately 10% of the samples in PND16-001 have laboratory duplicates. Impact of averaging duplicate pair results is minor for the drillholes verified. The database gold values in twelve of the thirteen drillholes verified matched the certificate values.

12.2 Limitations The scope of data review was limited to the 2016 drilling data, which is new to the Project since the last resource estimation. Previous Technical Reports include data verification and indicate that the digital modeling database accurately represents, or represented, the source data for drillhole locations, downhole surveys, logged geology, gold assay data, and other relevant items.

Data verification did not include any soil sample or other exploration data, and focused on the drillhole data used for the resource estimation.

12.3 Opinion on Data Adequacy The processes of data collection allow direct import from source files to the Pan Project database for most types of drillhole data. The comparison of source data and the contents of the project database indicate that the geological data used for modeling matches the primary data for the selected 2016 drillholes, and the gold data matches assay certificates for most values reported at greater than the method detection limit. Survey, geological logging, and analytical methods are suitable for the Pan deposit and the resulting data are applicable to resource estimation.

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13 Mineral Processing and Metallurgical Testing 13.1 Testing and Procedures Several metallurgical testing programs have been conducted for the Pan project since 2010 by Resource Development Corp.(RDi), Phillips Enterprises LLC, Kappes Cassidy and Associates, and McClelland Laboratories, Inc. Except for the recent pre- and post-operational work conducted by RDi on behalf of GRP Minerals, Gustavson reported on the previous work in a NI 43101 in June 25, 20915. For reader convenience and for completeness, the Gustavson June 25, 2015 reported work is presented below along with the results of the more recently completed work by RDi.

The following reports were reviewed to prepare this section of the report:

1. Metallurgical Testing of Midway Pan Samples, RDi report dated September 22, 2011.

2. Addendum to RDi report Titled “Metallurgical Testing of Midway Pan Samples” dated September 22, 2011; RDi report dated March 19, 2012.

3. Column Leach Testing at Coarse Size of South Pan Trench Samples, RDi report dated December 13, 2012.

4. Large-Column Leaching Studies for the Pan Project of Midway Gold US, Inc., Phillips Enterprises LLC report dated January 7, 2013.

5. Pan Project Report of Metallurgical Test Work, KCA, April 2014.

6. Midway Gold Partially Leached Ore, FLSmidth, June 2015.

7. Midway Gold – Pan Project Metallurgical Review, Metallurgies, November 5, 2015.

8. Interim Report on Midway Gold Heap Leach Pad, Bill Pennstrom, November 2015.

9. Heap Leach Test Program, Pan Project, GRP Resources prepared by RDI dated January 23, 2017.

10. Static Leach Test Program Pan Project, GRP Resources prepared by RDI dated May 5, 2017.

13.2 Relevant Results

13.2.1 Metallurgical Study Test Work, 2011 to 2015 As mentioned in Section 13.1, extensive work had been done previously by reputable investigators on several core and bulk samples from the Pan ore bodies. The work was conducted on each of the ore types including argillic shale and limestones, argillic solution breccia shale, argillic solution breccia limestone, and silicified solution breccia limestone, and shales and clays. In addition to extensive mineralogical and characterization studies on each rock type, the work included 60 open circuit column tests, 10 large diameter column tests from trench samples, three large diameter column tests from South Pan blasted rock, and 18 static bucket tests from trench and surface samples. The work also included characterization of the solutions from the various phases of the testing including pregnant solution, barren solution and actual carbon strip solutions as well as carbon assays.

Significant conclusions from the previous work included the following: (Note the reader is referred to the Section 13.3 for the quantitative information to support the statements below.)

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• The major host rocks are quartz, mica/illite, kaolinite and alunite with lesser amounts of K- spar, calcite, hematite, and barite. • The South Pan ores are significantly softer and contain more clay that the North Pan ores do; North Pan ores are siliceous. • North Pan ores have crusher work indices ranging from 16.94 to 8.22 Kw-hr/ ST with an abrasion index of 0.28 to 0.078 respectively. • South Pan ores have a crusher work index ranging from 3.23 to 12.44 Kw-hr/ ST with abrasion indices ranging from 0.002 to 0.28. • ICP and XRF analysis show varying but low ppm levels of elements considered cyanacides such as Cu, Mn, Zn, and Pb. • Column tests produce gold recoveries from minus 1.5-inch ore from the South Pit averaging 84.7 % of contained gold. • Column tests produce gold recoveries from minus 1.5-inch ore from the North Pit averaging 60.8%. • Little to no column slump was noted in the ores that were agglomerated prior to column leaching. • Four-foot diameter column testing of South Pit ore produced a gold recovery of 92% • The ROM column tested ore from the South Pit showed 5 to 6 % slump and significant material disintegration during leaching indicating a possibility of permeability issues for non-agglomerated ores. • South Pan ore recovery is not size dependent in sizes from ROM to minus 200-mesh. • North Pan ore recovery is size dependent in sizes from 6 inches to minus 200-mesh. • The recommended flowsheet from the metallurgical test work was a two-stage crusher plant that included agglomeration and heap stacking of ore by conveyor.

13.2.2 Metallurgical Operating Practices from 2014 to 2015 Pan was started up as a ROM leach and did not include the recommended crushing and agglomeration plant. The large column test work from South Pan ore provided the gold recovery information to support that decision. However, actual heap leaching of the South Pan ROM ores proved problematic and resulted in poor solution percolation and hence slower than planned gold recovery. The heaps suffered from percolation problems due to material compaction. The lack of the inclusion of sufficient rock within the heap to offset solution flow issues due to the clay proved problematic. The heap building techniques employed also caused compaction to further contribute to the problems. Employing lift heights greater than 15 ft proved a problem as well. The culmination of these effects severely limited solution flow through the heaps and prohibited the addition of leach solution flow greater than about 0.001 gpm/ft2; about 25% of design. This effect resulted in slower than planned gold recoveries from Pan that negatively impacted cash flow.

On site personnel, supplemented by operations consultants, designed a 10,000-t test heap consisting of a mix of 60% ROM rock from the North Pit and 40% ROM ore from the South pit. This test was designed to test heap permeability. As reported by the late Bill Pennstrom in reference 7, the heap as constructed was capable of percolating solutions at more than the 0.004 gpm/ft2 design. The conclusion was reached that by blending rock in a 60/40 mix with the softer clay ores that a ROM leach operation could work at Pan.

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Therefore, the operating team at Pan began the practice of “cap and fluff” on the ore previously stacked on the leach pad to initiated gold production. Capping and fluffing consisted of mixing rock into the heap with an excavator thereby improving the solution percolation characteristics of the heap. This proved partially effective and resulted in the production of 30,226 oz of gold from the 4.2 Mt of South Pan ore placed on the pad. This calculates to an indicated recovery of 67.8%.

13.2.3 Metallurgical Test work by GRP after May 2017 GRP acquired the Pan project in May of 2017 and began an immediate on the ground assessment of the entire operation. Very experienced in-house people conducted this work with select consultants with specific areas of expertise. Among the programs conducted are those reported in Heap Leach Test Program, Pan Project, GRP Resources prepared by RDi dated January 23, 2017.

This is a report of a program that was designed primarily to complete a physical characterization of the various ore types at Pan to determine their response when subjected to a heap leach process. The program focused on agglomeration testing of the various rock types and to confirm the gold extractions that were to be expected during heap operations.

Sample Description Samples for the test work were sourced from the now opened mine at Pan. They were gathered by trenching along the ore faces of both the North and South Pits. A total of approximately 6,000 lb of ore were gathered by ore type. The ore types and sample weights are shown below.

• Sample A1 (South Pan Trench C) – Argillized Shale (814 lb) • Sample A2 (South Pan Trench C) – Argillized Limestone (989 lb) • Sample B1 (South Pan Trench B) – Argillized Solution Breccia (1003 lb) • Sample B2 (South Pan Trench B) – Argillized Solution Breccia (908 lb) • Sample C1 (South Pan Trench A) – Silicified Solution Breccia Limestone (1263 lb) • Sample D1 (North Pan Ore Face) – Silicified Solution Breccia Shale (1042 lb)

A head sample was cut from each of the ore types for mineralogical characterization, as well as gold and silver assaying. The results are shown in Table 13-1 through Table 13-3.

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Table 13-1: Head Analyses of Composite Samples Including ICP Element A1 A2 B1 B2 C1 D1 Au, g/t 0.94/0.93 0.49/0.48 0.56/0.56 0.51/0.52 0.61/0.60 0.27/0.27 Ag, g/t <1.7/<1.7 8.6/<1.7 2.0/<1.7 <1.7/1.7 2.5/6.1 <1.7/21.0 CN Sol Au g/t 0.68 0.24 0.48 0.49 0.42 0.14 CN Sol Ag g/t 0.02 0.02 0.02 0.02 1.04 0.38 ICP Data % Al 7.23 3.99 2.45 3.00 1.14 1.11 Ca 0.5 15.2 16.7 17.5 1.2 2.2 Fe 3.93 2.43 2.56 1.98 0.63 0.74 K 3.18 1.60 1.16 1.43 0.4 0.41 Mg 0.73 0.43 0.31 0.36 0.09 0.08 Na 0.07 0.06 0.04 0.06 0.03 0.03 Ti 0.18 0.12 0.06 0.09 0.03 0.03 ppm As 634 403 1240 3200 121 107 Ba 782 713 10300 4130 16200 1670 Bi <10 <10 <10 <10 <10 <10 Cd 9 5 5 4 1 2 Co 27 10 <1 4 <1 1 Cr 137 61 50 49 143 169 Cu 38 17 15 21 15 9 Mn 550 914 732 702 61 77 Mo 9 6 7 6 3 4 Ni 165 70 54 40 20 23 Pb 26 11 50 22 9 8 Sr 178 173 240 225 158 47 V 113 41 47 62 29 32 W <10 <10 <10 <10 <10 <10 Zn 439 204 678 250 169 55

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Table 13-2: XRF Analysis Sample A1 A2 B1 B2 C1 D1 Element Wt. % Na2O <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 MgO 1.43 1.16 0.92 1.06 0.18 0.16 Al2O3 18.4 12.0 8.88 10.2 2.98 3.13 SiO2 70.9 41.0 54.2 51.9 84.9 91.7 P2O5 0.28 0.34 0.11 0.13 0.08 0.06 S 0.06 <0.05 0.58 0.08 1.50 0.22 Cl <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 K2O 3.95 2.48 2.10 2.48 0.51 0.61 CaO 0.41 26.7 24.8 24.8 2.62 2.53 TiO2 0.62 0.43 0.35 0.43 0.09 0.11 MnO2 0.06 0.17 0.15 0.16 <0.01 <0.01 Fe2O3 4.75 3.93 5.05 3.84 0.88 1.17 BaO 0.07 0.04 3.68 0.56 6.68 0.18 Element ppm V 127 52 82 103 19 37 Cr 84 64 31 64 45 66 Co 36 29 27 34 12 13 Ni 144 68 82 56 27 21 W 15 27 34 25 25 <10 Cu 33 11 20 18 23 <10 Zn 334 249 1173 407 204 68 As 500 480 1879 4919 81 67 Sn <50 <50 <50 <50 <50 <50 Pb 10 <10 114 54 41 <10 Mo <10 14 17 13 <10 <10 Sr 210 172 343 245 175 47 U <20 <20 <20 <20 <20 <20 Th <20 <20 <20 <20 <20 <20 Nb 14 <10 <10 <10 <10 <10 Zr 215 291 101 117 23 47 Rb 133 81 52 73 12 21 Y 129 45 13 15 <10 <10

Table 13-3: Summary of XRD Results Composite Sample Mineral Formula A1 A2 B1 B2 C1 D1 Quartz SiO2 45 21 39 34 81 89 Mica/illite (K,Na,Ca)(Al,Mg,Fe)2(Si,Al)4O10(OH,F)2 37 22 18 22 <5 5 Kaolinite Al2Si2O5(OH)4 13 12 --- <3 ------K-feldspar KAlSi3O8 <3 ------Calcite CaCO3 --- 42 37 38 <5 <5 Barite BaSO4 ------5 <1 10 --- Goethite FeO(OH) <5 <3 <3 <3 ------Hematite Fe2O3 ------<3 Apatite Ca5(PO4,CO3)3(OH,F,Cl) --- <1 ------Unidentified <5 <5 <5 <5 <5 <5

A comparison of the mineralogical data for this sample suite including the trace element analysis show that the mineralogy of the samples used in this testing is consistent with that from the samples used in previous test work by others. Additional results for the Head Analysis are:

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• The gold values in the samples ranged from 0.27 g/mt Au for D1 to 0.94 g/mt Au for A1. All other samples ranged from 0.49 g/mt Au to 0.61 g/mt Au. Very little silver was detected in any of the samples. • The cyanide soluble gold assays indicate that the majority of the gold is cyanide soluble, with sample D1 having the lowest value. • Samples C1 and D1 are mainly composed of quartz while the other samples are a mixture of quartz, mica, calcite, and kaolinite. Both of the A samples contain a significant amount of clay while the A2 sample and the B samples contain a significant amount of calcite. Arsenic was the main trace element found in the A and B samples.

Agglomeration Characterization Sample preparation The purpose of this phase of the program was to determine the agglomeration strength characteristics of each rock type to aid in future blending requirements and studies. The flowsheet used for the sample preparation work is shown in Figure 13-1. This was intended to approximate an open circuit minus 1 inch cone crushed product.

Figure 13-1: Sample Preparation Process

The particle size of the crushed products is shown in Table 13-4.

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Table 13-4: Particle Size Distribution of Crushed Samples Weight % Retained at Each Screen Fraction Screen Fraction B1 A1 A2 B1 Wet B2 C1 D1 Dry plus 3/4 " 16.6 19.0 13.9 7.8 15.2 18.6 23.2 3/4" x 1/2" 20.9 20.8 18.0 7.4 18.7 21.0 33.4 1/2" x 10-mesh 45.4 41.5 45.3 23.7 46.9 42.4 37.1 10-mesh x 65-mesh 9.8 10.6 14.9 13.7 12.3 10.2 4.9 65-mesh x 100-mesh 0.9 0.9 1.2 1.5 1.1 0.9 0.3 100-mesh x 200-mesh 2.7 3.1 3.1 2.6 2.4 2.7 0.6 minus 200-mesh 3.7 4.0 3.6 43.3 3.3 4.1 0.6

Agglomeration Testing Agglomeration testing was conducted with each of the composite samples. Agglomeration was completed with the combination of site water and site cement. Five-kg charges of each sample were placed in a cement mixer without baffles for agglomeration. Water was added by way of spray bottles while the material was mixed. Once the proper agglomeration was achieved, the amount of water added to the sample was recorded.

The initial agglomeration tests utilized sample A1 with various cement additions. Cement additions of 1 lb/t, 2 lb/t, 3 lb/t, and 4 lb/t were tested. The agglomerates from these tests did not have significant strength, so higher cement additions were tested. The subsequent tests with sample A1 included cement additions of 7 lb/t, 14 lb/t, and 21 lb/t. Additionally, one agglomeration test was conducted with each of the other composite samples at 7 lb/t cement addition.

The agglomerates produced from each test were evaluated to determine their strength and stability utilizing a wash test. The results of the agglomeration evaluations are given in Table 13-5.

Table 13-5: Agglomeration Tests Test # Sample Cement Addition (lb/ton) Added % Moisture % Loss in Weight PAT1 A1 1 15.6 4.4 PAT2 A1 2 14.0 4.9 PAT3 A1 3 13.3 5.2 PAT4 A1 4 13.4 6.2 PAT5 A1 7 14.0 7.1 PAT6 A1 14 14.0 8.3 PAT7 A1 21 13.8 4.1 PAT8 A2 7 9.5 9.9 PAT9 B1 7 9.1 4.5 PAT10 B2 7 9.1 4.0 PAT11 C1 7 6.6 3.6 PAT12 D1 7 3.1 0.5

The agglomeration test results indicate the following

• None of the agglomeration tests by individual rock type produced agglomerates of significant strength. • Additional cement addition did not significantly improve the agglomerate strength of the A1 sample. • The A and B samples will need to be blended with the C and D samples to produce stable agglomerates.

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A significant amount of water was needed to create the agglomerates with sample A1 since the material readily absorbed water. The additional cement did not improve the agglomerate strength as measured by the wash test. The B1 and B2 samples were easier to agglomerate than the A1 and A2 samples. These samples produced large agglomerates, but with only slightly better strength than the A samples. The C1 and D1 samples contained very little fine material and did not readily agglomerate.

Agglomerates previously produced with composites A1, A2 and B1 were tested to determine the permeability in a column to validate the results observed during the washing tests. Two kg of agglomerates from each composite were added to individual 4-inch columns. Cyanide solution at a concentration of 0.5 g/L NaCN and pH 11 was added to each column at a rate of 0.005 gpm/ft2. After 24 hours of solution addition, no plugging was observed with any of the samples. The effluent from each column was clear and no evidence of fines migration was observed. The slump was measured to be 7% for A1, 5% for A2, and 15% for B1. The material was removed from each column and evaluated. The A1 and A2 samples appeared to absorb the leach solution and the agglomerates maintained some integrity. The B1 sample had broken down and standing liquid was observed in the material indicating that the column would have plugged at some point if additional solution was to be added.

Leaching Tests Cyanide leaching tests were completed with 1 kg charges from each composite sample at P80 10-mesh and P80 65-mesh to determine reagent consumptions and precious metal recoveries. Bottle roll leach tests were conducted for all samples at 40% solids with 1 lb/t sodium cyanide maintained for 24 hours and site water at pH of 10.5 adjusted with site cement. Results of the bottle roll tests are shown in Table 13-6.

Table 13-6: Bottle Roll Leach Results Extraction Residue Calc Head NaCN Cement Grind % Grade Grade Composite Consumption Consumption (P80) Au Ag Au Ag Au Ag (kg/mt) (kg/mt) (g/mt) (g/mt) (g/mt) (g/mt) A1 10-mesh 90.2 0.7 0.08 30.2 0.82 30.4 0.279 1.756 A1 65-mesh 83.8 10.3 0.09 1.2 0.54 1.3 0 1.328 A2 10-mesh 71.2 1.0 0.10 3.4 0.35 3.4 0.089 1.207 A2 65-mesh 80.1 3.0 0.09 3.0 0.47 3.1 0.036 1.187 B1 10-mesh 85.7 1.3 0.06 3.6 0.42 3.6 0.155 1.151 B1 65-mesh 88.8 6.2 0.04 2.4 0.36 2.6 0.032 1.098 B2 10-mesh 86.4 1.3 0.05 3.8 0.35 3.8 0.090 1.076 B2 65-mesh 87.0 14.1 0.05 2.0 0.36 2.3 0.014 1.031 C1 10-mesh 56.0 5.4 0.25 3.4 0.57 3.6 0.017 1.113 C1 65-mesh 80.1 15.7 0.13 4.6 0.67 5.5 0.099 1.004 D1 10-mesh 30.8 1.5 0.19 4.4 0.27 4.5 0.084 1.164 D1 65-mesh 70.1 31.1 0.09 1.0 0.31 1.5 0.096 1.145

The leach test results indicate the following:

• The leach extractions were similar for the A and B samples. The gold extractions ranged from 71.2% to 90.2%. Very little silver was extracted from the samples, ranging from 0.7% to 14.1% Ag extraction. Finer particle sizes exhibited small improvements in precious metal extraction.

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• Cyanide consumptions were low with an average consumption of 0.0826 kilograms per metric ton (kg/mt) NaCN. Cement consumption were consistent between rock types with an average of 1.188 kg/mt. • Finer particle sizes significantly increased the leach extraction for samples C1 and D1. This indicates that these samples have low permeability and the finer grind creates more liberation of gold and silver particles.

Carbon Testing A series of test were performed on activated carbon that was used in actual production from the Pan mine. The purpose of the tests was to compare adsorption the actual carbon that had been in use throughout 2015 and 2016 with new carbon to determine the effectiveness for continued use in the plant.

The new carbon sample from Jacobi Carbons was attrited by rolling the sample in a bottle at 40% solids for 24 hours. The material was then washed on a 20-mesh screen to remove any fines. The carbon sample lost approximately 0.4% of the weight after attritioning. Few flat flakes were observed during microscopic evaluation.

A standard gold solution was created for testing with 1 ppm Au, pH 10.5, and 0.5 g/L NaCN. Carbon samples weighing 2 grams were pre-wetted and atted to a liter of standard solution. Solution samples were taken at various intervals extending to 5.5 hours. The solutions were then assayed to determine the amount of gold remaining in the solution. Samples of the regenerated Pan carbon were tested without pretreatment, after 10% hydrochloric acid treatment, and after 10% nitric acid treatment. The Jacobi carbon sample was also tested. The adsorption results are summarized in Table 13-7 and shown in Figure 13-2.

Table 13-7: Carbon Test Results Solution Assays (mg/L Au) Residence Time Pan Pan Carbon After 10% Pan Carbon After 10% Jacobi (min) Carbon HCl Wash HNO3 Wash Carbon 0 1.148 1.133 1.056 0.961 6 0.996 1.019 1.048 0.927 12 0.904 0.934 0.926 0.940 20 0.817 0.816 0.842 0.850 30 0.728 0.701 0.730 0.745 45 0.620 0.612 0.606 0.621 60 0.592 0.570 0.509 0.502 75 0.510 0.475 0.424 0.417 90 0.465 0.436 0.337 0.332 105 0.400 0.362 0.294 0.284 120 0.378 0.359 0.248 0.233 150 0.335 0.311 0.194 0.159 210 0.104 0.091 0.105 0.071 330 0.042 0.043 0.042 0.000

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Figure 13-2: Carbon Adsorption Kinetics

The carbon test results indicate the following:

• The adsorption kinetics were similar for all samples. Over 95% of the gold was adsorbed to the carbon samples after 5.5 hours. • Acid pre-treatment of the Pan carbon did not significantly improve the gold adsorption rate even though both acids appeared to react with the carbon due to out gassing during acid washing.

13.2.4 Conclusions from the characterization work The following conclusions can be drawn from the test work:

• The gold values in the samples ranged from 0.27 g/mt Au to 0.94 g/mt Au. The cyanide soluble gold assays indicate that the majority of the gold is cyanide soluble. Very little silver was detected in any of the samples. • The A samples contain a significant amount of clay while the A2 sample and the B samples contain a significant amount of calcite. The C1 and D1 samples are mainly composed of quartz. • Drying screening of the samples indicated that the minus 100 fractions of each sample ranged from 1.2% to 7.1%. Submersion tests showed that the B samples readily broke down in water, while the A samples showed slight degradation, and the C and D samples did not degrade. Wet screening of the B1 sample produced 43.3% minus 200-mesh. • The gold grade generally increases with decreased particle size for all samples, but the gold distribution is consistent with the weight distribution. • None of the agglomeration tests by individual rock type produced agglomerates of significant strength. Additional cement addition did not significantly improve the agglomerate strength of

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the A1 sample. The B sample appears to be most problematic due to the breakdown of particles once wetted. The A and B samples will need to be blended with the C and D samples to produce stable agglomerates. • Leach extractions were similar for the A and B samples, ranging from 71.2% to 90.2%. Very little silver was extracted from the samples, with a maximum of 14.1% extraction. Finer particle sizes exhibited small improvements in precious metal extraction for the A and B samples and larger improvements were observed with the C1 and D1 samples. • Cyanide consumptions were low with an average consumption of 0.0826 kg/mt NaCN. Cement consumption were consistent between rock types with an average of 1.188 kg/mt. • The adsorption kinetics were similar for both the Jacobi and Pan carbon samples, with and without treatment. Over 95% of the gold was adsorbed to the carbon samples after 5.5 hours.

13.2.5 Recommendations for future work • Additional agglomerate testing should be completed with various blends of the A and B material with the C and D material. The blending ratios of material will need to be determined based on availability of the material in accordance with the mining plan. • Column leach tests should be completed with the best performing material blends to predict heap performance.

13.2.6 Static Leach Tests A series of static leach tests were conducted on a 700-kg sample of freshly mined North Pit ore. The sample from the mine was gathered from the pit face as shown in Figure 13-3.

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Figure 13-3: North Pit Sample Locations

Sample Preparation and Characterization RDi received approximately 700 kg of North Pan sample. The entire sample was thoroughly blended and split in half. One half of the material was retained for further testing. The other half of the sample was dry screened utilizing screens ranging from 6 inches to 1 inch. A representative split from the minus 1-inch fraction was further screened at ¾-inch, ½-inch, ¼-inch, 10-mesh, 65-mesh, 100-mesh,

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and 200-mesh to determine the complete particle size distribution. Representative samples from the plus 6 inch, 2 x 6 inch, 1 x 2 inch, and minus 1-inch screen fractions were split out, pulverized, and submitted for fire assay of gold and silver. The particle size distribution for the composite sample, including gold and silver assay values, are summarized in Table 13-8.

Table 13-8: Particle Size and Precious Metal Distribution (North Pan) Screen Fraction Wt % Au (g/mt) % Au Dist Ag (g/mt) % Ag Dist Feed (calculated) 100.0 0.53 100.0 2.3 100.0 plus 6 inch 7.5 0.25 3.6 3.4 11.0 2 x 6 inch 12.7 0.75 17.8 2.6 14.2 1 x 2 inch 31.4 0.63 37.2 1.8 24.4 minus 1 inch 48.4 0.46 41.4 2.4 50.3 3/4" x 1" 8.7 1/2" x 3/4" 11.0 1/4" x 1/2" 11.7 10-mesh x 1/4" 10.2 65-mesh x 10-mesh 4.3 100-mesh x 65-mesh 0.4 200-mesh x 100-mesh 0.8 minus 200-mesh 1.4

Nearly half of the material is minus 1 inch. The precious metal distribution is similar to the particle size distribution. The calculated head grade of the sample was 0.53 g/mt Au and 2.3 g/mt Ag. Only 2.2% of the material is minus 100-mesh.

Static Leach Tests Static leach tests were completed with the North Pan composite sample to determine the leach characteristics at various particle sizes. Static leach test results are predictive of column leach results and can provide extraction information with less sample, decreased cost and schedule as compared to a full set of column tests.

The static leach tests were conducted with the North Pan composite sample at four different screen fractions (plus 6”, 2" x 6”, 1" x 2", and minus 1") and an "as received" sample that would be considered ROM. In addition, a composite sample from South Pan comprised of equal parts A2, B1, B2, and C used in previous test work, was also tested at a crush size of P80 3/4". The static leach results are summarized in Table 13-9.

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Table 13-9: Static Leach Results Projected Extraction 180 Day Residue Calc Head % NaCN Cement % Grade Grade Sample (21 Days) Consumption Consumption Extraction (kg/mt) (kg/mt) Au Ag Au Ag Au Ag Au Ag (g/mt) (g/mt) (g/mt) (g/mt) North + 13.6 0.5 19.7 0.5 0.32 3.6 0.37 3.6 0.657 0.100 6 inch North 2 18.9 0.2 28.5 0.4 0.66 3.4 0.81 3.4 0.727 0.283 x 6 inch North 1 19.4 0.4 29.4 0.6 0.54 3.8 0.66 3.8 0.828 0.442 x 2 inch North - 39.3 1.2 59.4 1.6 0.35 3.4 0.57 3.4 1.285 0.525 1 inch North 35.2 1.5 51.8 2.1 0.30 2.6 0.46 2.6 1.033 0.667 ROM South - 52.2 3.7 81.6 6.3 0.29 1.0 0.61 1.0 1.487 0.130 3/4"

The test results were plotted and a best fit curve was developed for each size fraction of the North pit ore and for the minus ¾-inch sample of South Pan ore. The curves are shown in Figure 13-4 through Figure 13-8.

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Figure 13-4: Static Test Results, Pan North, plus 6 Inch

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Figure 13-5: Static Test Results, Pan North, 2 x 6 Inch

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Figure 13-6: Static Test Results, Pan North, 1 x 2 Inch

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Figure 13-7: Static Test Results, Pan North, minus 1 Inch

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Figure 13-8: Static Test Results, Pan South

The following conclusions can be drawn from the test work:

• The calculated head grade of the North Pan sample was 0.53 g/mt Au and 2.3 g/mt Ag based on assay-by-size data. The precious metal distribution is similar to the particle size distribution with the lowest grade material coming from the plus 6-inch fraction. • Static leach testing results showed that maximum gold extraction was achieved with the minus 1-inch material at 39.3%, while material at coarser size fractions achieved a maximum gold extraction of 19.4%. The ROM sample achieved slightly lower gold extractions than the minus 1-inch material (35.2% vs 39.3%) Silver extractions were less than 4% for all samples. • The projected gold recovery after 180 days of leaching would be 51.8% for the North Pan ROM sample and 81.6% for the South Pan minus 3/4 inch, based on a logarithmic model. • Reagent consumptions increased as the particle size decreased. The North Pan ROM test consumed 1.03 kg/mt of NACN and 0.67 kg/mt of cement. Actual consumptions in operation will be significantly less than the lab consumptions. • Static leach testing results indicate that the gold extractions are similar for the ROM and minus 1-inch North Pan samples. An economic analysis should be completed to determine if the additional gold extraction observed with the finer material would justify the additional cost of crushing.

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Recommendations Static leach testing of the North Pan sample indicates that gold extraction would continue after the 21 days of leaching completed during the test program. Additional testing, including column tests, may be needed to verify gold extraction projections made to predict expected extractions during heap leach operation.

13.2.7 Over all Conclusions from the GRP-generated Metallurgical test work Metallurgical test results and mineralogical characterization of bulk samples taken from both the North Pan pit and South Pan pits confirm that the ores from both pits are amenable to direct cyanidation via the heap leach process.

North Pit Pan ores are generally composed of harder more siliceous rocks and have a size dependent gold recovery. ROM gold recovery is projected to be a maximum 52% while ore crushed to 80% minus 1 ½ inches has a projected gold recovery of 65%.

South Pan ores are generally more argillic and therefore are softer. These ores are projected to have a ROM recovery of 80%. The gold recovery from the South Pan argillic ores is not size dependent.

ROM leaching of the ores from Pan requires blending the harder North Pan ores with the softer South Pan ores. Test work in a 10,000-t test heap has shown that a blend of 60% North Pan hard ore and 40% softer South Pan ROM ores can be effectively leached.

Column test work on cement-agglomerated ores crushed to as fine as minus ½ inch from both North and South Pan are excellent candidates for the heap leach process. Crushing to minus 1 inch and cement agglomeration produce a product with the highest probability of obtaining the projected gold recoveries from Pan.

Based on a review of these results and the results of previous test work as shown in Section 13.3, it is recommended that the mine proceed with the installation and operation of a crushing and agglomeration as was proposed in 2011.

13.3 Historical Metallurgical Report This section is extracted from Gustavson (2015) with minor modifications to suit the format of this Technical Report.

13.3.1 Ore Sampling and Test Work Extensive metallurgical testing has been undertaken on samples from the Pan Project. Recent studies were performed on fresh core samples and trench samples collected in 2010 and 2012. The studies were initiated in December 2010 by Midway and performed by Resource Development Inc. (RDi), Phillips Enterprises LLC, and Kappas, Cassiday and Associates (KCA). The primary objective of these test programs was to generate sufficient metallurgical data for preparation of Preliminary Feasibility and Feasibility Study. Test data from historical and current test programs indicate that the ore is amenable to heap leaching with economic recoveries. The test results described in this section are limited to the recent test programs.

The following reports were reviewed to prepare this section of the report:

• Metallurgical Testing of Midway Pan Samples, RDi report dated September 22, 2011

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• Addendum to RDi report Titled “Metallurgical Testing of Midway Pan Samples” dated September 22, 2011, RDi report dated March 19, 2012 • Column Leach Testing at Coarse Size of South Pan Trench Samples, RDi report dated December 13, 2012 • Large-Column Leaching Studies for the Pan Project of Midway Gold US, Inc., Phillips Enterprises LLC report dated January 7, 2013 • Pan Project Report of Metallurgical Test Work, KCA, April 2014 • Midway Gold Partially Leached Ore, FLSmidth, June 2015

13.3.2 Recent Metallurgical Test Work For the 2010 test work, RDi received three surface samples, designated NP 1, NP 2, and SP 1, and a ½ split of HQ (2.5-in diameter) drill core from thirteen drillholes in 2010. Seven of the drillholes are from the South Pan pit while six are from North Pan. A total of 29 composites were prepared from the drillhole samples. The composites were prepared to evaluate different lithologies, ore types, and feed grades. Composites 1 to 10 represent North Pan and composites 11 to 29 represent South Pan. The lithology associated with each composite sample is identified in Table 13-10.

Table 13-10: Lithology of Composite Samples Pit Lithology Composites North Pit Silicified Solution Breccia (Sbs) 1-8, 10, NP-1, NP-2 Argillicly altered Solution Breccia (SbA) 9 South Pit Argillicly altered Shale (ShA) 11, 28, 29 Silicified Shale (ShS) 12, 13 Argillicly altered Solution Breccia (SbA) 14-18, 22, 24-27, SP-1 Argillicly altered Solution Breccia (SbA) 19, 23 Silicified Hydrothermal Breccia (HbS) 20 Argillicly altered Hydrothermal Breccia (HbA) 21

Additional trench samples were collected for the South Pan area in 2012 for large-scale column tests with coarser feed material. These samples were designated Trench A and Trench D samples. The samples assayed 1.04 g/t Au and 0.49 g/t Ag respectively. ROM samples were also collected in June 2013 and shipped to KCA for test work. The sample assayed 0.76 g/t Au and 0.56 g/t Ag.

Detailed information regarding sample preparation protocols and quality control procedures is presented in reports prepared by RDi, “Midway Gold Corporation, Metallurgical Testing of Midway Pan Samples”, dated September 14, 2011 and by Phillips Enterprises LLC “Large-Column Leaching Studies for the Pan Project of Midway Gold US, Inc., dated January 7, 2013 and by KCA, “Pan Project Report of Metallurgical Test Work” dated April 2014.

Head Assays The results of head analyses conducted on the composite samples are given in Table 13-11. The samples were submitted for gold and silver assay using one-assay-ton fire assay, mercury, and pregnant robbing analyses.

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Table 13-11: Head Analyses of Composite Samples Assay Composite No. Au (g/t) Hg (g/t) % Preg-Robbing North Pan NP-1 0.814 0.68 - NP-2 2.446 1.01 - 1 0.271 0.60 <0.6 2 0.267 1.52 <0.6 3 2.153 2.11 <0.6 4 0.377 1.45 1.1 5 0.693 1.38 2.92 6 0.226 3.90 <0.6 7 0.439 1.98 6.8 8 0.720 1.41 2.3 9 0.521 5.63 3.8 10 0.727 0.56 <0.6 South Pan SP-1 0.302 3.58 - 11 0.418 2.71 2.92 12 0.401 0.80 3.4 13 0.535 1.38 <0.6 14 0.230 2.58 0.6 15 0.350 3.20 <0.6 16 0.645 3.12 4.68 17 0.504 2.23 <0.6 18 0.826 3.64 <0.6 19 0.384 2.24 1.7 20 0.542 2.13 6.2 21 0.682 1.22 <0.6 22 0.593 1.64 <0.6 23 1.327 1.96 1.5 24 1.265 1.48 4.0 25 0.250 1.35 <0.6 26 1.087 1.30 <0.6 27 0.483 1.41 <0.6 28 1.035 1.60 5.7 29 0.542 0.78 <0.6

The head analyses indicate the following:

• The gold assays range from 0.23 g/t Au to 2.15 g/t Au • The mercury values in these samples range from 0.56 to 5.63 g/t Hg • The majority of the composites exhibited negligible preg-robbing properties

XRF Analyses X-ray fluorescence (XRF) analyses were conducted on selected samples representing the various composite lithologies, and on the surface samples. The XRF test results are presented in Table 13-12 and Table 13-13. Test results indicate that traces of arsenic were present in the samples, though the major elements present were silica and alumina.

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Table 13-12: XRF Analyses of Surface Samples Sample Sample Element % Element ppm NP1 NP2 SP1 NP1 NP2 SP1 Na2O <0.05 0.09 0.11 V 28 56 125 MgO 0.25 0.57 0.8 Cr 133 64 128 Al2O3 6.25 10.0 11.7 Co <10 <10 <10 SiO2 87.6 75.7 75.1 Ni <10 13 25 P2O5 0.08 0.17 0.29 W <10 <10 <10 S 1.59 2.84 1.37 Cu 11 19 27 Cl <0.02 <0.02 <0.02 An 25 31 92 K2O 1.38 2.72 2.76 As 845 164 1628 CaO 0.17 0.45 1.65 Sn <50 <50 <50 TiO2 0.27 0.39 0.44 Pb 48 17 16 MnO <0.01 <0.01 <0.01 Mo <10 <10 <10 Fe2O3 1.68 3.68 4.63 Sr 56 129 256 BaO 1.72 1.31 0.09 U <20 <20 <20 Th <20 <20 <20 Nb <10 12 14 Zr 157 231 238 Rb 32 78 63 Y 11 21 24

Table 13-13: XRF Analysis – Different Rock Types Composite No. Element % 7 12 15 20 21 28 Na2O <0.05 0.14 <0.05 <0.05 <0.05 <0.05 MgO 0.35 0.37 0.89 0.29 0.23 1.11 Al2O3 5.23 8.7 9.68 6.26 6.0 8.55 SiO2 90 82.6 76.3 88.9 82.1 74.3 P2O5 0.14 0.19 0.28 0.26 0.24 0.19 S 0.42 1.41 0.33 0.64 1.63 <0.05 Cl <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 K2O 1.34 1.78 2.62 1.4 1.77 2.35 CaO 0.07 0.14 2.6 0.19 0.15 2.43 TiO2 0.24 0.37 0.42 0.31 0.32 0.39 MnO <0.01 <0.01 0.04 <0.01 <0.01 0.04 Fe2O3 1.13 2.83 4.12 2.64 2.86 3.23 BaO 0.07 0.03 0.14 0.04 0.18 0.03

XRD Analysis X-ray diffraction (XRD) analyses provide an indication of major minerals in the samples. The samples analyzed by XRF were also analyzed by XRD. The results of the XRD analyses indicate that the major host rock minerals are quartz, mica/illite, and alunite. The XRD test results are summarized in Table 13-14.

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Table 13-14: XRD Test Results XRD Analysis of Different Rock Types Approximate Wt. % Mineral 7 12 15 20 21 28 NP1 NP2 SP1 Quartz 85 74 63 83 79 66 85 70 63 Mica/illite 10 7 24 9 6 21 5 10 16 Kaolinite - 8 <5 <5 <3 5 - - 8 K-spar - - - - - 3? - - - Alunite <3 9 - <5 10 - 8 14 9 Calcite - - <5 - 10 - - <3 Hematite <2? <3 <3 <3 <3 - - <3 <3 Barite - - - - - <5 <3 - Unidentified <5 <5 <5 <5 <5 <5 <3 <5 <5

ICP Analysis The results of ICP analysis of the composite samples are summarized in Table 13-15. The results of the ICP analyses are similar to the results of XRF analyses of the composite samples.

Table 13-15: ICP Analyses of Composite Samples Element, Composite No. % 1 2 3 4 5 6 7 8 9 Al 2.46 1.99 1.99 2.14 2.44 4.03 2.20 2.68 3.71 Ca 0.09 0.07 0.09 0.08 0.06 4.49 0.08 0.83 1.90 Fe 0.89 0.68 0.81 1.43 1.44 2.32 0.69 0.69 2.15 K 1.00 0.86 0.69 0.85 0.80 1.70 1.02 1.21 1.50 Mg 0.12 0.14 0.12 0.06 0.06 0.38 0.14 0.23 0.29 Na 0.03 0.05 0.05 0.03 0.06 0.04 0.03 0.08 0.04 Ti 0.08 0.03 0.06 0.06 0.03 0.09 0.05 0.05 0.10 Element, ppm As 88 249 179 279 562 342 145 100 436 Ba 417 1995 1955 8020 858 5219 798 2344 7730 Bi 26 <10 <10 22 <10 36 18 20 41 Cd 3 0 1 9 2 14 4 4 13 Co 5 10 <1 9 6 33 17 9 10 Cr 39 31 117 28 33 49 31 35 52 Cu 69 16 20 43 16 52 41 63 53 Mn 13 17 13 13 35 260 18 40 146 Mo 2 4 5 9 8 8 10 2 8 Ni 14 18 23 15 22 152 20 25 61 Pb 78 52 39 185 29 146 64 82 101 Sr 116 81 107 196 168 164 84 137 254 V 105 81 106 60 81 107 84 62 85 W 44 168 <10 77 63 25 105 75 51 Zn 36 62 43 70 76 574 65 227 233 Element, Composite No. % 10 11 12 13 14 15 16 17 18 19 20 Al 2.17 5.55 3.72 4.65 3.77 4.41 3.92 3.27 3.89 2.41 3.07 Ca 0.09 6.59 0.11 0.46 16.02 1.43 0.13 0.11 0.12 0.10 0.12 Fe 0.49 2.81 1.65 4.69 1.94 2.28 1.92 1.67 1.85 1.80 1.58 K 0.70 2.33 1.30 1.27 1.60 2.16 1.25 1.17 1.51 0.97 1.16 Mg 0.15 0.79 0.13 0.22 0.32 0.31 0.11 0.12 0.15 0.14 0.13 Na 0.05 0.07 0.13 0.10 0.09 0.07 0.13 0.06 0.04 0.05 0.03 Ti 0.09 0.07 0.08 0.14 0.09 0.11 0.04 0.08 0.10 0.06 0.07 Element, ppm As 39 3120 350 1120 451 851 2360 1012 1063 464 302 Ba 295 426 216 273 430 952 332 378 617 1056 328 Bi <10 27 31 11 32 41 <10 27 29 21 26

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Cd 1 6 10 6 12 25 2 27 30 12 8 Co 2 36 3 5 5 11 3 4 4 5 2 Cr 92 59 57 95 43 65 43 52 52 41 52 Cu 20 31 37 34 19 27 11 22 41 24 42 Mn 4 1226 30 73 585 334 15 16 10 18 8 Mo 2 21 20 24 7 9 9 6 9 2 4 Ni 19 148 33 57 52 83 23 31 33 26 14 Pb 28 29 81 34 38 77 24 49 52 30 53 Sr 111 127 194 160 263 270 174 191 211 190 200 V 92 60 211 331 73 100 95 226 171 191 141 W 12 18 19 <10 6 11 28 22 26 37 20 Zn 33 199 92 84 154 351 77 69 108 121 117 Element, Composite No. % 21 22 23 24 25 26 27 28 29 Al 3.24 2.88 2.86 1.92 3.16 1.27 2.38 4.25 3.87 Ca 0.16 25.32 15.22 24.20 19.68 8.30 21.13 1.56 0.11 Fe 2.07 1.47 1.31 1.08 2.01 0.63 1.31 2.02 2.19 K 1.45 1.18 1.15 1.03 1.54 0.63 1.26 1.86 1.42 Mg 0.10 0.31 0.38 0.34 1.97 0.23 1.87 0.38 0.38 Na 0.02 0.05 0.05 0.05 0.02 0.01 0.05 0.07 0.06 Ti 0.09 0.09 0.09 0.06 0.09 0.04 0.06 0.11 0.05 Element, ppm As 428 752 219 791 527 59 264 458 1165 Ba 2186 5600 10234 6487 18218 21697 4873 286 556 Bi 26 28 <10 22 34 16 22 34 21 Cd 14 21 2 22 18 7 9 14 3 Co 3 7 <1 4 16 8 6 9 6 Cr 58 34 78 28 36 16 31 49 45 Cu 40 19 19 21 77 82 15 31 21 Mn 8 2666 1183 1786 638 492 2418 311 89 Mo 2 10 4 12 9 5 4 17 19 Ni 20 32 24 20 44 12 23 68 76 Pb 34 35 37 26 36 44 29 31 40 Sr 145 163 88 124 200 76 146 178 97 V 138 39 11 27 39 30 35 173 211 W 31 7 <10 7 10 63 8 9 25 Zn 110 235 198 212 140 161 262 183 195

Crushability Work and Abrasion Index Crusher work index and abrasion index tests were performed on six samples, each representing a different lithology. The test results, summarized in Table 13-16, indicate that the surface samples were relatively hard and abrasive whereas the drill core samples were soft and non-abrasive.

Table 13-16: Crushability and Abrasion Test Results Crushability Work Index and Abrasion Index for Composite Samples Crushability Wi Sample Lithology Ai (Kw-hr/st) Composite 7 SbS 6.15 0.0450 Composite 12 ShS 6.02 0.0086 Composite 15 SbA 4.92 0.0052 Composite 20 HbS 3.23 0.0022 Composite 21 HbA 7.46 0.0405 Composite 28 ShA 8.91 0.0107 NP-1 SbS 16.94 0.2820 NP-2 SbS 8.22 0.0780 SP-1 SbA 12.44 0.0236

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Static Bucket Leach Tests for Surface Samples The as-received surface samples were screened into six size fractions, and the individual fractions of equal size were combined in order to obtain a sufficient amount of each. The size fractions were placed into a plastic container and covered with a 1 g/L NaCN solution. The material was gently mixed and allowed to stand. A sample of the slurry was taken for pH and free cyanide measurement and gold assay. The pH of solution was adjusted to 11 and NaCN concentration to 1 g/L. Following the completion of the test, the solids were filtered, washed, and dried. The dried material was pulverized and assayed for gold.

Static bucket leach test results are summarized in Table 13-17 test results indicate the following:

• Gold extraction from the coarsest to the finest size fractions was good for the SP-1 sample; gold recovery is not size dependent for the South Pan samples; • The gold leaches very quickly, even from the coarse size fractions for the South Pan samples; • Gold extractions for the two North Pan samples were size dependent; the finer the crush size, the higher the gold extraction, and; • The gold extraction was acceptable once the North Pan samples were crushed to 0.5-inch or finer.

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Table 13-17: Static Bucket Leach Test Results Static Bucket Leach Tests (21-day duration) Sample SP-1 Sample NP-1 Sample NP-2 Size Extraction % Residue g/t Calc. Feed Extraction % Residue g/t Cal Feed g/t Extraction % Residue g/t Calc. Feed (inches) Au Au g/t Au Au Au Au Au Au g/t Au 3 x 4 93.7 0.189 3.013 51 0.399 0.815 52.4 0.547 1.15 2 x 3 76.7 0.034 0.146 58.3 0.394 0.946 59.2 0.879 2.169 1.5 x 2 86.4 0.046 0.339 53.3 0.42 0.899 64.2 0.437 1.22 1 x 1.5 84 0.069 0.432 65.1 0.153 0.438 59.3 0.674 1.656 0.5 x 1 86.2 0.086 0.622 64.2 0.149 0.416 84 0.233 1.453 -0.5 85.6 0.154 1.072 70.6 0.18 0.612 79.2 0.381 1.832

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Bottle Roll Leach Tests Cyanide bottle roll leach tests were performed on each composite sample at P80 6-mesh and 200-mesh. The test results are summarized in Table 13-18 and Table 13-19. The test results show that gold extraction from the North Pan samples was poor for most composites (28% to 65%) at 6-mesh, but improved significantly (to over 75%) at P80 200-mesh. This suggests that gold extraction is size dependent at North Pan. Gold extraction from the South Pan samples was over 70% at 6-mesh and over 80% at 200-mesh. The extraction of South Pan ROM bulk sample ground to P80 of 200 mesh was 93% for gold and 33% for silver. The NaCN consumptions were reasonable for all the bottle roll leach tests ranging from 0.1 to 0.3 kg/t except for few samples showing higher NaCN consumption.

Table 13-18: Bottle Roll Cyanidation Test Results – Composite Sample, 6-mesh Bottle Roll Cyanidation Test Results for Composite Samples at 6-mesh Reagent Consumption, Test Composite Extraction % Residue g/t Calc. kg/t No. No. Au Au Head NaCN Lime BR-1 NP-1 82.9 0.12 0.68 0.176 2.542 BR-2 NP-2 85.3 0.38 2.56 0.173 6.094 27 1 71.9 0.09 0.306 0.056 2.607 7 2 48.7 0.12 0.23 0.301 2.723 39 3 28.7 1.41 1.971 0.121 2.549 28 4 65.3 0.15 0.436 0.054 2.008 8 5 52.3 0.43 0.89 0.12 1.749 29 6 74.4 0.1 0.386 Trace 3.597 49 7 33.7 0.34 0.51 0.12 2.688 17 8 34.4 0.45 0.69 0.113 2.942 50 9 85.2 0.11 0.728 0.233 2.978 40 10 60.5 0.32 0.802 0.058 2.489 BR-3 SP-1 89.5 0.06 0.6 0.288 3.523 9 11 58.2 0.17 0.41 0.109 4.335 18 12 72.8 0.14 0.5 0.297 2.995 41 13 91.9 0.07 0.863 0.112 6.922 19 14 78.1 0.06 0.26 0.355 2.926 20 15 82.5 0.06 0.33 0.109 4.424 10 16 65.4 0.23 0.67 0.239 2.581 21 17 72.2 0.16 0.57 0.171 3.067 30 18 73.4 0.32 1.209 0.176 2.91 22 19 59.5 0.18 0.45 0.11 2.644 51 20 81.3 0.09 0.503 0.229 3.363 52 21 76.8 0.18 0.768 0.16 2.533 23 22 76.5 0.14 0.6 0.248 2.755 42 23 63.1 0.53 1.422 Trace 1.905 24 24 70.2 0.39 1.31 0.292 2.423 31 25 77.5 0.08 0.351 0.103 2.404 32 26 45.4 0.66 1.209 Trace 1.917 25 27 81.9 0.1 0.54 0.418 2.745 26 28 93 0.09 1.25 0.231 4.645 11 29 68.5 0.15 0.46 0.296 3.63 Average North Pan 60.3 0.34 0.85 0.127 2.91 Average South Pan 73.9 0.19 0.71 0.189 3.23

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Table 13-19: Bottle Roll Cyanidation Test Results – Composite Sample, 200-mesh Reagent Test Composite Extraction % Residue g/t Calc. Head g/t Consumption No. No.% Au Au Au Kg/t NaCN Lime BR-4 NP-1 90.8 0.07 0.72 1.309 3.31 BR-5 NP-2 88.6 0.28 2.41 0.465 5.501 33 1 85.4 0.09 0.594 0.115 5.881 12 2 79.8 0.06 0.29 0.159 5.248 43 3 75.2 0.56 2.235 1.279 7.983 34 4 87.4 0.07 0.556 0.125 4.656 13 5 82.6 0.15 0.89 0.125 4.641 35 6 87.5 0.07 0.591 0.597 3.571 36 7 75.6 0.17 0.687 0.116 5.031 45 8 81.5 0.16 0.879 0.34 6.622 37 9 89.1 0.07 0.643 0.112 4.107 48 10 77.2 0.16 0.697 1.125 7.055 BR-6 SP-1 89.7 0.05 0.49 0.153 6.119 14 11 71.9 0.12 0.42 0.111 7.087 44 12 83.2 0.11 0.63 0.221 6.17 53 13 87.3 0.08 0.624 0.222 3.057 54 14 81.8 0.04 0.217 0.227 3.009 55 15 80.6 0.07 0.362 0.157 4.621 15 16 92.9 0.05 0.65 0.229 5.55 56 17 80.8 0.12 0.608 0.168 3.885 38 18 87.8 0.17 1.396 0.108 5.314 57 19 79.1 0.1 0.484 0.282 3.508 58 20 86.8 0.07 0.559 0.28 1.586 59 21 87.8 0.14 1.151 0.104 2.907 60 22 84.2 0.09 0.577 0.097 3.248 61 23 82.4 0.25 1.42 0.098 2.757 62 24 81.8 0.23 1.269 0.046 2.798 46 25 83.6 0.06 0.347 0.15 6.912 47 26 82.3 0.2 1.153 0.11 5.823 63 27 86.7 0.07 0.504 0.095 3.225 64 28 88.0 0.16 1.311 0.088 4.248 16 29 63.2 0.18 0.48 0.102 6.151 Average North Pan 83.4 0.16 0.93 0.489 5.3 Average South Pan 83.1 0.12 0.73 0.152 4.4

After 72 hours of leach, the average gold extraction from the bottle roll leach tests at P80 6-mesh was 60.3% for North Pan samples and 73.9% for South Pan samples. Sodium cyanide consumption averaged 0.127 kg/t for the North Pan samples and 0.189 kg/t for the South Pan samples. The average head grades for the North and South Pan samples are 0.85 g/t and 0.71 g/t, respectively.

The average extractions at P80 200-mesh were almost identical for the North and South Pan samples (83.4% and 83.1%) for 72 hours of leach time. The cyanidation and lime consumption at finer grind was much higher for North Pan samples than for South Pan samples.

Column Leach Tests A total of 60 plus open-circuit column leach tests were performed on the three surface samples, 29 composite drill core samples and a South Pan ROM bulk sample. At least two column tests are run on each composite, and all columns at RDi are run in standard plexiglass columns of variable diameter. The feeds of P80 0.5-inch, 1.0-inch, and 1.5-inch are processed in 4-inch, 6-inch, and 8-inch diameter columns, respectively.

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The two trench samples collected in 2012 were tested at Phillips Enterprises LLC and RDi. Ten large-scale tests in 18-in, 24-in and 36-in diameter columns constructed with double-walled HDPE drainage pipe were run in conjunction with carbon columns so that barren solution was recycled back to the columns. RDi ran four 8-in diameter columns open-cycle tests at the same time large-scale tests were performed.

KCA ran three column leach tests utilizing South Pan ROM material in 4 ft inside diameter columns. The material was leached with NaCN solution for 123 days.

Assay-by-Size Fraction for Gold Assay-by-size for gold was determined for the composite feed sample used for running the columns at P80 1.5-inch crush size. Data from select composites is summarized in Table 13-20. The data indicate that the distribution of gold is generally proportional to weight for the North Pan samples, and that the gold tends to distribute preferentially in the finer sizes for the South Pan samples. This was also confirmed by assay-by-size data generated for the South Pan ROM bulk sample by KCA.

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Table 13-20: Assay-by-Size Fraction Data Assay-by-Size Fraction for Gold in Composite Samples NP-1 SP-1 Composite No. 1 Composite No. 10 Size Fraction (inches) Distribution % Distribution % Distribution % Distribution % Assay g/t Au Assay g/t Au Assay g/t Au Assay g/t Au Wt. Au Wt. Au Wt. Au Wt. Au plus 1.5 1.00 16.8 30.7 0.16 17.1 6.9 1.94 10.4 15 0.9 5.8 4.3 1 x 1.5 0.49 30.5 27.3 0.15 16.5 6.2 1.02 26.2 19.6 0.66 31.2 17.1 0.75 x 1 0.38 16.3 11.4 0.18 10.5 4.8 1.3 19 18.1 0.69 14.9 8.5 0.5 x 0.75 0.45 11.6 9.5 0.18 7.2 3.2 1.32 20.6 20 0.82 17.2 11.6 minus 0.5 0.47 24.8 21.1 0.64 48.7 78.9 1.56 23.8 27.3 2.29 30.9 58.5 Calc. Feed 0.55 0.39 1.36 1.21 Assay-by-Size Fraction for Gold in Composite Samples 13 16 19 24 Size Fraction (inches) Distribution % Distribution % Distribution % Distribution % Assay g/t Au Assay g/t Au Assay g/t Au Assay g/t Au Wt. Au Wt. Au Wt. Au Wt. Au plus 1.5 0.34 14.7 9.4 1.45 31.9 41.8 0.31 36.9 31.8 0.79 34 27.8 1 x 1.5 0.52 20.4 19.8 0.8 36.8 26.3 0.24 20.8 13.9 1.1 20.5 23.3 0.75 x 1 0.49 13 12 0.53 13.1 6.2 0.14 8.7 3.3 1.06 10.6 11.7 0.5 x 0.75 0.33 14.5 9 1.19 7.3 7.9 0.45 9.1 11.3 1.13 8.8 10.3 minus 0.5 0.71 37.5 49.8 1.83 10.8 17.8 0.58 24.5 39.8 0.99 26.1 26.9 Calc. Feed 0.54 1.11 0.36 0.96

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Test Results Column leach test results for the North and South Pan samples are presented in Table 13-21 and Table 13-22, respectively. The test data for all samples (including KCA samples) are averaged for each crush size (0.25, 0.5, 1.0, and 1.5-inch) and for all columns. Test results indicate the following:

• Gold extraction for North Pan samples were 60.3 % in 76 days of leach time at P80 of 0.25-inch, 61.1% in 81 days at P80 of 0.5-inch, 78.5% in 61 days at P80 1.0-inch, and 60.8% in 86 days of leach time at P80 1.5-inch crush size. • The average gold extraction for all North Pan samples was 61.4% in 81 days of leach time. The NaCN consumption averaged 1.253 kg/t. However, in actual operation, the NaCN consumption will be 40% to 50% of that reported in the column tests. • Gold extraction for South Pan samples were 85.6% in 54 days of leach time at P80 0.5-inch crush size, 83.2% in 66 days of leach time at P80 1.0-inch crush size, 85.0% in 67 days of leach time at P80 1.5-inch crush size and 92% in 138 days of leach time with ROM ore having P80 of 7.3-inches. • The average gold extraction for all South Pan samples excluding ROM ore was 84.7% in 62 days of leach time. The NaCN consumption averaged 0.701 kg/t. The bulk ROM ore sample from one location gave higher gold extraction (92%) and consumed significantly lower amount of NaCN (± 0.15 kg/t).

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Table 13-21: Summary of Column Leach Test Results for North Pan Samples Summary of Column Leach Test Results for North Pan Samples Calc. NaCN Composite Crush Size Leach Extraction Residue Head g/t Consumption No. P80 ins Time Days % Au g/t Au Au Kg/t NP-1 1.5 41 52.4 0.309 0.649 0.154 NP-1 0.5 41 73.4 0.182 0.637 0.637 NP-2 0.5 41 73.1 0.394 1.462 0.873 NP-2 1.5 41 46.1 0.792 1.470 0.196 2 0.5 31 53.0 0.141 0.300 0.458 3 1.5 62 35.4 0.874 1.353 0.476 5 0.5 31 48.4 0.471 0.913 0.528 8 0.5 90 39.5 0.393 0.649 2.219 9 1.0 61 78.5 0.063 0.587 0.432 10 1.5 108 84.7 0.225 1.474 1.245 1 0.5 142 82.3 0.175 0.987 4.058 1 0.25 93 86.4 0.077 0.568 3.229 2 0.5 67 45.0 0.135 0.245 1.479 4 0.5 112 67.2 0.161 0.491 2.935 4 0.25 69 50.6 0.291 0.589 1.923 5 0.5 137 70.3 0.475 1.601 4.333 6 0.5 35 71.1 0.091 0.315 0.889 6 0.25 71 60.8 0.276 0.704 1.888 7 0.5 69 40.9 0.154 0.260 1.465 7 0.25 71 43.2 0.199 0.351 2.207 8 0.5 71 24.8 0.283 0.376 1.621 KCA32480 0.5 110 73.0 0.218 0.746 0.990 KCA32480 1.5 112 71.0 0.218 0.809 0.415 KCA32481 0.5 110 78.0 0.467 2.084 1.480 KCA32481 1.5 112 73.0 0.559 2.115 0.575 KCA32482 0.5 74 85.0 0.124 0.809 1.270 KCA32482 1.5 77 85.0 0.124 0.840 0.360 KCA32483 0.5 110 58.0 0.467 1.120 0.875 KCA32483 1.5 112 54.0 0.498 1.089 0.430 KCA32484 0.5 110 55.0 0.404 1.151 0.985 KCA32484 1.5 112 46.0 0.467 1.151 0.430 Average 0.25 76 60.3 0.211 0.553 2.312 Average 0.5 81 61.1 0.300 0.832 1.464 Average 1.0 61 78.5 0.063 0.587 0.432 Average 1.5 86 60.8 0.452 1.216 0.476 Average All 81 61.4 0.312 0.900 1.253

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Table 13-22: Summary of Column Leach Test Results for South Pan Samples Summary of Column Leach Test Results for South Pan Samples Calc. NaCN Composite Crush Size Leach Extraction Residue Head g/t Consumption No. P80 ins Time Days % Au g/t Au Au Kg/t SP-1 0.5 41 95.7 0.015 0.352 0.628 11 0.5 31 74.3 0.125 0.487 0.509 11 1.0 66 77.8 0.204 0.918 0.729 12 0.5 62 86.5 0.069 0.513 1.058 13 1.5 62 95.5 0.039 0.860 0.416 14 0.5 62 91.2 0.024 0.274 1.058 14 1.5 60 91.3 0.031 0.356 0.444 15 0.5 62 85.2 0.026 0.352 0.764 15 1.5 60 95.2 0.026 0.537 0.454 16 0.5 31 85.0 0.098 0.655 0.493 16 1.0 68 83.8 0.158 0.945 0.878 16 1.5 60 90.8 0.091 0.994 0.674 17 0.5 62 86.3 0.072 0.526 0.880 17 1.5 69 79.2 0.082 0.395 0.641 18 1.0 61 87.5 0.120 0.961 0.437 18 0.5 68 75.1 0.192 0.772 1.378 19 0.5 60 92.8 0.034 0.471 0.853 19 1.5 69 92.4 0.043 0.568 0.467 20 1.0 61 54.2 0.398 0.870 0.790 21 1.0 61 85.8 0.098 0.688 0.574 22 0.5 60 75.8 0.149 0.616 0.974 23 1.5 62 76.1 0.370 1.551 0.445 24 0.5 62 83.2 0.171 1.015 0.695 25 1.0 66 78.7 0.110 0.517 0.764 25 1.5 69 76.8 0.177 0.764 0.503 26 1.0 66 94.7 0.031 0.588 0.705 27 0.5 62 94.5 0.031 0.565 0.651 27 1.5 69 78.4 0.209 0.967 0.502 28 0.5 62 98.7 0.022 1.752 0.849 29 0.5 31 74.1 0.117 0.451 0.547 12 1.0 69 90.7 0.036 0.385 0.724 22 1.0 69 84.9 0.069 0.458 0.816 28 1.0 77 96.3 0.033 0.896 0.722 29 1.0 69 81.7 0.082 0.447 0.956 24 1.5 93 73.7 0.291 1.105 0.564 Average 0.5 54 85.6 0.082 0.629 0.81 Average 1.0 66 83.2 0.122 0.697 0.736 Average 1.5 67 85.0 0.136 0.810 0.511 Average All 62 84.7 0.110 0.702 0.701 ROM Bulk 1 7.3 138 92.0 0.068 0.81 0.12 ROM Bulk 2 7.3 123 93.0 0.059 0.82 0.15 ROM Bulk 3 7.3 123 93.0 0.053 0.77 0.16

% Slump The height of the agglomerated material in all the columns was recorded before and after leaching by RDi and by Phillips Enterprises LLC. None of the columns showed much slump, indicating low probability of permeability problems in production heaps. However, large-scale column tests run on unagglomerated ROM ore at KCA indicated a 5% to 6% slump. In addition, a comparison of the head screen and tail screen analyses showed that the material significantly disintegrated during leaching. Hence, there is a possibility of encountering permeability issues on the heap for unagglomerated ores.

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Drain Down and Maximum Percolation Rate At the conclusion of leaching, all columns were allowed to drain as completely as possible. The columns were then rinsed for several days and monitored for free cyanide. When free cyanide could no longer be detected, the rinse was shut down and the columns were allowed to drain.

Percolation tests were conducted on most of the columns after leaching was completed. Each column was flooded to a level approximately 2 inches above the surface of the material, and the water flow rate adjusted to maintain that level. The amount of solution exiting the bottom of the column was measured to determine the flow rate following stabilization of the water level. Percolation test results are reported in Table 13-23.

Table 13-23: Percolation Test Results Percolation Rate, Liters/min Composite No. Column Diameter, inches Liters/min gpm/ft2 Multiple of Application Rate 3 8 19.36 14.648 2930 9 6 2.362 3.178 636 12 4 4.892 14.806 2961 13 8 18.928 14.321 2864 14 4 0.195 0.59 118 15 4 0.36 1.09 218 17 4 4.936 14.939 2988 18 6 2.641 3.553 711 19 4 4.321 13.078 2616 20 6 1.946 2.618 524 21 6 3.601 4.845 969 23 8 18.475 13.978 2796 24 4 5.01 15.163 3033 27 4 5.052 15.291 3058 28 4 3.875 11.728 2346 25 6 2.835 3.814 763 8 4 2.878 8.711 1742 18 4 4.413 13.357 2671 16 6 2.572 3.46 692 16 8 18.076 13.676 2735 17 8 5.475 4.142 828 19 8 10.116 7.654 1531 25 8 3.063 2.317 463 27 8 5.872 4.443 889 10 8 18.475 13.978 2796 11 6 11.415 15.357 3071 26 6 2.612 3.514 703

Tailing Analyses After completion of the percolation tests, the columns were allowed to drain for a period of 48 hours before being dumped and prepared for tailings analysis. A sample of air dried, crushed and split leached residue was wet- and dry-screened and assayed for gold by size fraction. Test results of the residue assay-by-size are summarized in Table 13-24.

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Table 13-24: Residue Assay-by-Size Data Distribution of Gold in Leach Residues by Size Composite 10 Composite 24 Composite 27 Size Fraction Distribution Assay Distribution % Assay g/t Distribution % Assay (inches) % g/t Au Au g/t Au Wt. Au Wt. Au Wt. Au plus 1.5 0.11 16.0 11.6 0.04 18.4 11.6 0.13 24.9 18.7 1 x 1.5 0.15 42.0 42.7 0.07 35.5 42.6 0.17 22.6 21.7 0.75 x 1 0.14 16.2 14.9 0.05 12.3 10.6 0.12 3.7 2.4 0.5 x 0.75 0,15 13.3 13.4 0.08 8.8 10.7 0.10 5.8 3.2 minus 0.5 0.21 12.5 17.4 0.06 25.0 24.4 0.22 43.0 54.0 Calc. Feed 0.15 0.06 0.17

Pregnant Solution Analysis The pregnant solution from the column tests were analyzed during leaching to determine the quality of the solution. The results of the solution analysis are summarized in Table 13-25 and Table 13-26. Test results indicate that no problem-creating components were present in the pregnant solution during carbon loading.

Table 13-25: Pregnant Solution Analyses Pregnant Solution Analyses for Surface Samples Column No. Element ppm NP-1 NP-2 SP-1 Days 2-6 Days 14-23 Days 2-6 Days 14-23 Days 2-6 Days 14-23 Au 0.27 0.05 0.7 0.09 0.43 0.01 Al 0.05 0.1 0.6 <0.1 0.2 <0.1 As 0.02 <0.1 0.5 0.8 0.1 0.5 Ba 0.4 <0.1 <0.1 <0.1 0.1 <0.1 Bi <0.1 <0.1 0.6 <0.1 <0.1 <0.1 Ca 47 1.5 5 1.7 134 4 Cd <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Co <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Cr 0.1 <0.1 0.1 <0.1 0.2 <0.1 Cu 1.7 0.3 1.7 0.3 3.3 0.3 Fe <0.1 <0.1 <0.1 0.1 <0.1 <0.1 K 14 3.9 7 2.9 4 2.6 Mg <0.1 <0.1 <0.1 0.1 0.2 <0.1 Mn <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Ni <0.1 <0.1 0.1 <0.1 0.2 <0.1 Pb <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Sr 1 0.1 0.3 0.1 1.5 0.2 Ti <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 V 0.1 <0.1 0.2 <0.1 <0.1 0.1 W <0.1 0.1 <0.1 <0.1 <0.1 <0.1 Zn 0.9 <0.1 0.7 <0.1 4.9 0.2

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Table 13-26: Pregnant Solution Analyses Pregnant Solution Analyses for 0.5-inch Column Tests 2 11 12 10 Element ppm Days Days Days Days 1-5 16-25 29 1-5 16-25 29 2 19 43 1.5 19 43 Au 0.29 0.01 0.4 0.47 0.01 1.1 0.04 0.01 0.18 0.1 0.08 Al 1.2 0.4 0.1 0.2 0.1 0.1 0.9 0.6 0.5 0.8 0.4 0.1 As 0.3 <0.1 <0.1 0.2 0.5 0.7 <0.1 0.6 1.7 <0.1 0.1 0.2 Ba <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 0.1 0.1 Bi <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 6.1 <0.1 Ca 0.3 <0.1 118 <0.1 <0.1 <0.1 108 18.6 3.1 1.6 2.2 1.5 Cd <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 0.1 <0.1 <0.1 <0.1 Co <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Cr 0.1 <0.1 0.3 <0.1 <0.1 <0.1 0.2 <0.1 <0.1 <0.1 <0.1 <0.1 Cu 2.5 0.3 9.4 <0.1 <0.1 1.9 0.4 0.2 <0.1 0.1 0.1 <0.1 Fe <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 K 17.3 2.5 3.4 2.6 <0.1 0.9 6.9 1.9 1.5 2.6 1.5 1.7 Mg 0.1 <0.1 <0.1 0.9 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 0.2 0.1 Mn <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Ni 0.1 <0.1 <0.1 0.1 <0.1 <0.1 0.4 0.1 0.1 <0.1 <0.1 <0.1 Pb 0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 Sr 0.3 <0.1 <0.1 1 <0.1 <0.1 2 0.3 0.2 <0.1 0.1 0.1 Ti <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 V <0.1 <0.1 <0.1 <0.1 <0.1 <0.1 0.1 0.1 0.1 <0.1 <0.1 <0.1 W 0.5 <0.1 <0.1 <0.1 <0.1 <0.1 0.4 0.1 <0.1 <0.1 <0.1 <0.1 Zn <0.1 <0.1 <0.1 0.4 <0.1 <0.1 23.4 5.7 0.1 <0.1 2.9 3.1

Agglomeration Tests Agglomeration tests were conducted on three ore types (SbS, SbA and ShA) to determine if agglomeration of the material is required. A series of five tests were run on each ore type with varied levels of cement addition, including a blank with no cement addition. The agglomeration test results are reported in Table 13-27. The SbS tests were completed on ½-inch crush material while the SbA and ShA tests were completed with 1 inch crush material. The agglomeration test procedure was as follows:

• A 1 kg charge of material was placed in a 4,000-mL beaker with the correct amount of lime and cement. The sample was then mixed thoroughly by rotating the beaker. • Tap water was then sprayed onto the material as the beaker was rotated to agglomerate the sample. The weight of the water used was recorded once the fines agglomerated and were no longer loose. • The material was then placed in a sealed bag and allowed to cure for 36 hours. • After 36 hours, the cured material was placed in a 10-mesh screen and submerged in a bucket of water. The screen was submerged in the bucket of water 10 times, with a constant rhythmic motion. The plus 10-mesh material was then dried and weighed to determine the percentage of material that was retained.

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Table 13-27: Agglomeration Test Results Agglomeration Test Results Lime Test Composite Size 1 Cement % Retained % Moisture After Rate, No. No. kg, inch Rate, lb/ton (10-mesh) Agglomeration lb/ton 1 SbS 1/2 0 0 93.5 3.9 2 SbS 1/2 2 2.5 98.1 4.6 3 SbS 1/2 2 5 97.1 5.3 4 SbS 1/2 2 7.5 97.5 5.4 5 SbS 1/2 2 10 97.1 5.6 6 SbA 1 0 0 90.1 6.4 7 SbA 1 2 2.5 94.1 6.9 8 SbA 1 2 5 96.7 7.4 9 SbA 1 2 7.5 93.6 7.5 10 SbA 1 2 10 93.7 7.9 11 ShA 1 0 0 95.6 4.5 12 ShA 1 2 2.5 95.0 5.3 13 ShA 1 2 5 96.0 5.4 14 ShA 1 2 7.5 96.5 5.7 15 ShA 1 2 10 97.4 5.8

Carbon Loading Tests Pregnant solution from one of the column tests was used to conduct a preliminary carbon load test. The objective was to determine the rates of gold to silver on the loaded carbon. A 20-gram carbon sample was reacted with 1 liter of pregnant solution for 4 hours in a bottle roll, and a portion of the carbon was then analyzed for gold and silver. The carbon assayed 99.36 g/t Au and 2 g/t Ag, for an Au/Ag ratio of 50:1.

Large-Scale Column Tests Two bulk trench samples from the South Pan area were leached in large diameter columns at several coarser sizes to determine the effect of feed size on gold extraction. A total of fourteen column tests were performed; ten tests were performed at Phillips Enterprises LLC (PE) and four tests at RDi. These tests were followed up by collecting a large bulk sample for ROM ore testing at KCA.

The bulk samples from two areas, designated Trench A and Trench D, were received at PE and the samples were screened into different size fractions, namely plus 6 inches, 4 x 6 inch, 2 x 4 inch, 0.5 x 2 inch, and minus ½ inch. The size distribution of the feed material to the columns is given in Table 13-28. The feed was nominal 2 inch in 8 inch and 18 inch diameter columns and was nominal 4 inch and plus 6 inch in 24 inch and 36 inch diameter columns, respectively.

Table 13-28: Size Distribution of Feed to Different Size Columns Distribution % Size (inches) 8-inch Columns 18-inch Columns 24-inch Columns 36-inch Columns >6 - - 3.6 6 X 4 - - 4.6 4 X 2 - 19.6 48.2 2 X 0.5 54.0 43.4 20.2 <0.5 46.0 37.0 23.3 8-inch columns were run at RDi and the remaining columns were run at Phillips Enterprises LLC

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The results of the open-circuit column tests performed at RDi are summarized in Table 13-29. The test results indicate the following.

• The average gold extraction for Trench A sample was 87.8% in 38 days of leach time from an average feed assaying 0.926 g/t Au. The average cyanide consumption was 0.318 kg/t. • The average gold extraction for Trench D was 71.9% in 38 days of leach time from an average feed assaying 0.397 g/t Au. The average cyanide consumption was 0.244 kg/t.

Table 13-29: Summary of Column Leach Test Results Column Extraction % Residue g/t Calc. Head g/t NaCN Consumption Composite No. Au Au Au Kg/t 1 A 89.1 0.101 0.929 0.340 2 A 86.5 0.125 0.923 0.296 Average A 87.8 0.113 0.926 0.318 3 D 74.3 0.105 0.409 0.258 4 D 69.4 0.118 0.385 0.229 Average D 71.9 0.112 0.397 0.244 Crush Size: Nominal 2 inch. Leach Time: 38 days.

The results of the locked-cycle column tests performed at PE are summarized in Table 13-30. The test results indicate the following:

• The calculated head for the trench samples were extremely variable for the different size column tests. For example, it varied from 0.482 g/t Au to 0.809 g/t Au for the Trench A sample and 0.265 g/t Au to 0.420 g/t Au for Trench D sample. Therefore, gold extractions were calculated based on feed and residue analyses. • The gold extraction is a function of feed grade. Generally, the higher the feed grade, the higher the recovery. • The gold extraction for the various feed sizes for Trench A sample indicates that extraction appears to be independent of the size of feed. This is illustrated in Table 13-31 and Figure 13-9 for the various sizes. • The extraction for Trench D is lower because of lower grade feed material (i.e., 60% to 71% vs. 80% plus).

Three locked-cycle column leach tests were performed utilizing ROM material in 4 ft inside diameter columns at KCA. These tests were run on “as received” material and without agglomeration. The test results, summarized in Table 13-32, indicate the following:

• The calculated head for the bulk ROM ore was ±0.8 g/t Au which is significantly higher than the average grade of the South Pan deposit. • The gold extraction was 92% to 93% for the bulk sample with a low cyanide consumption of ±0.15 kg/t. • The operating moisture content of the columns was as high as ±20% thereby indicating presence of significant amount of water adsorbing clays. • The columns slumped 5% thereby indicating the possibility of permeability issues.

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Figure 13-9: South Pan Gold Recovery vs Crush Size

Table 13-30: Summary of Locked-Cycle Column Leach Test Results Performed at PE Residue Column Composite Extraction % Au Assayed Head g/t Au NaCN Consumption kg/t g/t Au A 18-7 A 85.7 0.168 0.958 0.21 A 18-8 A 91.0 0.152 0.958 0.205 Average - 88.4 0.160 0.958 0.208 A 24-3 A 92.1 0.115 0.992 0.28 A 24-4 A 92.6 0.112 0.992 0.285 Average - 92.4 0.114 0.992 0.283 A 36-3 A 88.6 0.184 1.117 0.24 A 36-4 A 82.9 0.196 1.117 0.265 Average 85.75 0.190 1.117 0.253 D 18-5 D 78.0 0.164 0.473 0.26 D 18-6 D 73.0 0.162 0.473 0.21 Average - 75.5 0.163 0.473 0.235 D 36-1 D 79.8 0.090 0.289 0.27 D 36-2 D 67.0 0.103 0.289 0.265 Average - 73. 4 0.097 0.289 0.268 PE Columns extractions are based on high assay values and assayed feed and residue assays

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Table 13-31: Gold Extraction as a Function of Feed Size Nominal Size (inches) Column Test Extraction % Au Comments >6 A 36-3 & 4 85.75 PE data 4 A 24-3 & 4 92.4 PE data 1, 2 87.8 RDi data 2 18-7 & 8 88.4 PE data 1.5 RDi 85 Average of 10 Column tests 1.0 RDi 83.2 Average of 11 Column tests 0.5 RDi 85.6 Average of 14 Column tests

Table 13-32: Summary of Column Leach Test Results Column Extraction % Au Residue g/t Au Calc. Head g/t Au NaCN Consumption kg/t 1 92.0 0.068 0.81 0.12 2 93.0 0.059 0.82 0.15 3 93.0 0.053 0.77 0.16 Feed P80 = 7.3 inches

2013 Phillips Enterprises In 2013 Phillips Enterprises conducted large column leach tests on Pan mineralized material. The Phillips test work focused on the relationship between the size of the agglomerated ore and the recovery.

The Phillips test was based on two trench samples, A and D. Both samples are characterized as originating from the South Pan area. The conclusions presented are:

• Gold extraction for Trench A at 0.033 oz/st ranged from 85% to 89%. • Gold extraction for Trench D at 0.016 oz/st ranged from 67% to 74%. • Solution-to-ore ratios reached 8: 1 for Trench A tests with >6" rock. • Solution-to-ore ratios reached 5: 1 for Trench D tests with >6" rock

Trench A large rock appeared to leach equally to the fine fractions whereas the larger rock from Trench D showed decreasing gold extraction with greater size. Based on the data for Trench A, Trench A appears to leach equally well for all size fractions examined and leaching of rock sizes greater than 10 inches may be possible. The ore represented by Trench D appeared to leach the best for the <2 inch fractions. Fractions greater than 2 inches showed minimal gold extraction based on assay data.

2014 Kappes Cassidy and Associates (KCA) In 2014, Kappes Cassidy and Associates (KCA) conducted large column leach tests on Pan mineralized material with the objective to determine if ROM leaching was an option for the Pan project.

The KCA test was based on about 24 t of exposed material from the preproduction work at the mine. This material was characterized as “ROM bulk material, with rock particles ranging in size from 24 inches down to fines under 10-mesh Tyler. The fines composed an estimated 20% of the sample. Overall, the sample was light tan in color and was identified as oxide material. The plus 10-mesh material consisted of tan (45%), light grey (10%), and light orange (45%) rocks. The tan rocks contained some red veining, the light grey rocks contained some deep red oxidation staining and veins,

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and the light orange rocks contained heavy orange oxidation staining. All rocks ranged from slightly hard to easy to break, and broke into angular pieces. No sulfide or organic material was visible.”

This was described as material from the breccia area of South pan and appears to have been relative low in fines. The material was also nearly double the average grade of the South Pan deposit at 0.026 oz/t. Gustavson believes that this material was representative of the South Pan breccia zone, however may not have been representative of the balance of South Pan ore.

This ROM leach test resulted in an average of 93% gold recovery for the sample tested. Based on the results of this test, the decision was made to move forward with ROM leaching.

The review of “Partially Leached Ore” conducted by FLSmidth in 2015 tested one sample from the existing leach pad. The sample is described as “...mostly a quartz and calcite rich rock with clay minerals (muscovite/illite + kaolinite + swelling clay) as the secondary phases and minor amounts of dolomite and barite. The grain coatings and the minus 10-mesh material have similar mineralogies…” and goes on to state that “Chemical assays show that most of the gold is in the grain coatings (1.1 ppm) and silver is in the coarse grains (6.9 ppm). The water-soluble gold accounts for nearly half of the total gold in the sample.” As this material was loaded over several months, it can be expected that this is typical of the material to be processed from South Pan.

Based on a review of these results and previous work performed by RDi, it is recommended that the mine proceed with crushing and agglomerating ore as proposed in 2011.

Metallurgical Testing Conclusions The composite samples assayed 0.23 g/t to 2.153 g/t Au and 0.56 g/t to 5.63 g/t Hg, and did not exhibit preg-robbing properties. The major host rock mineral is quartz; the ore is competent with low clay minerals content. The South Pan samples have low crushability work index compared to North Pan samples, and abrasion index values indicate that the ore is non-abrasive. Static leach tests and bottle roll tests indicate that South Pan samples leach quickly and at relatively coarse size. Gold extraction was independent of crush size up to nominal 6 inch evaluated in the previous test work. A bulk sample was taken in 2013, and ROM column test work was performed at Kappes Cassidy labs. Test results indicate that recoveries of 90% were achievable with ROM ore leaching. However, some indications of high clay presence and potential permeability issues were indicated by these tests.

North Pan samples are size dependent and need finer crush to obtain reasonable recoveries.

Average gold extraction in a leach time of 79 days was significantly higher for South Pan samples than for North Pan samples, as was NaCN consumption.

Pregnant solution analyses indicate low probability of problems with carbon loading. The gold recoveries for the commercial operation are projected to be 80% for South Pan using ROM ore leach and 65% for North Pan ore crushed to 80% < 1 ½ inch

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14 Mineral Resource Estimate 14.1 Introduction The most recent Mineral Resource Estimation for the Pan deposit was prepared by Gustavson Associates in 2015 for Midway Gold Corp. That resource is now superseded by this 2017 resource estimate, prepared for GRP Pan LLC by SRK. The new resource includes 127 new reverse circulation drillholes drilled in 2016 by GRP leading to enhancements to geologic interpretations and improvements to the geologic model. The current Mineral Resource estimate, with an effective date of February 10, 2017, has been prepared pursuant to the guidance of the Canadian National Instrument 43‐101 – Standards of Disclosure for Mineral Projects National Instrument (NI 43-101). Working closely with the GRP staff, SRK has constructed a new block model that includes an independent review of the analytical data added to 2016 database, construction of new 3D wireframes for lithology and alteration using Leapfrog™ software, and an estimation of gold grades in a 3D block model using MineSight® software.

In preparing the current resource statement, SRK has used engineering experience and informed assumptions to define the appropriate CoGs to reflect the mining and processing methods and costs anticipated as the project advances. This report provides a Mineral Resource estimate and a classification of resource reported in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves, May 10, 2014 (CIM, 2014). The resource estimate and related geologic modeling were conducted by, or under the supervision of, J.B. Pennington, M.Sc., C.P.G., and Justin Smith, B.Sc., P.E., SME-RM, both of SRK Consulting, Reno, Nevada. Mr. Pennington and Mr. Smith are Qualified Persons, and are independent of GRP for purposes of NI 43‐101 reporting.

The Mineral Resource estimate was based on a 3D geological model of major structural features and geologically controlled alteration and mineralization. A total of seven litho-structural mineral domains were interpreted from mineralized drill intercepts, comprised mostly of 5 ft reverse circulation drill samples. Composites of 10 ft fixed length intervals informed a model with block dimensions of 20 ft x 20 ft x 20 ft (XYZ). Gold was estimated into model blocks using Ordinary Kriging (OK). Density was assigned based on a combination of lithology and overprinting alteration determined from 256 density measurements. The project is in U.S. standard units.

Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources and Inferred Resources: This report uses the terms “Measured” and “Indicated resources.” These terms are recognized and required by Canadian regulations; The U.S. Securities and Exchange Commission (SEC) does not recognize them and U.S. investors are cautioned not to assume that any part or all of mineral resources in these categories will ever be converted into reserves. This section also uses the term “Inferred resources.” This term is recognized and required by Canadian regulations; the SEC does not recognize it. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or prefeasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an Inferred resource exists, or is economically or legally minable. Reserves meeting the

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requirements of the Securities and Exchange Commission’s Industry Guide 7 for the Pan project have not been determined.

14.2 Project Coordinates and Topography The coordinate system of the project is UTM NAD 83 Zone 11 ft.

The topographic surface used for this resource estimate was provided by GRP based on an aerial survey by Aerotech in 2010. That base survey has subsequently been modified in the mining areas by GRP mine survey department staff to represent mining cuts and waste rock placement dimensions.

14.3 Drillhole Database The Pan Project drillhole database used for this resource model consists of 380,068 ft from 1,185 drillholes, including 2,324 ft from six water wells, which were logged for geology but not sampled for assay. The majority of the drilling done to date (96%) was completed using RC methods with 5 ft sample intervals. The typical sample size was 15 lb per sample. The remaining 4% of drilling was completed by diamond drill core for twinning or metallurgical purposes.

It is SRK’s understanding that historically, a small percentage of the total gold analytical database was extracted by cold cyanide methods rather than fire assay. An analysis by Castleworth in 2005, reported by Gustavson (2015), identified a 24% low bias in these cyanide-only samples. The cyanide-only results represent a subset of the Amselco and Alta Bay assays that originally fell below 0.01 oz/t Au and were therefore not re-assayed by fire assay to save costs. SRK has opted to apply a conservative approach and use these low-biased cyanide-only assay values as is, un-factored, for grade estimation.

True thickness of mineralized intercepts is variable as the controls on mineralization at Pan include sedimentary bedding and higher angle structures. Intercepts in sedimentary targets are typically very close to true thickness, while intercepts near the high-angle structures are have apparent thickness. Drilling in the resource area is shown in Figure 14-1 in reference to interpreted mineralization (yellow) and 2017 resource pit outlines (red).

The drillhole database was expanded by GRP in 2016 with the addition of 127 RC holes for 45,665 ft between July and December of 2016. A total of 75 of these holes were drilled for resource definition, three for condemnation of mine facilities, and 49 drilled in a closely-spaced grid to aid in optimizing the resource model. All sample preparation and analysis was completed by AAL, located in Sparks, Nevada.

A comprehensive quality control program of mineralized and barren control samples and rig duplicates samples was implemented for all new 2016 drilling. The quality control data were analyzed by SRK (Sections 11 and 12 of this report). SRK concluded that sampling, security, and sample preparation procedures implemented during the Pan 2016 drilling program meet or exceed current industry standards for quality.

14.4 Geologic Model Pan is a Carlin-style epithermal, sediment-hosted disseminated gold deposit. Controls on mineralization at the Pan Project include both structure and stratigraphy. Gold mineralization is generally distributed in broad zones adjacent to high-angle faults, and subparallel to stratigraphy. Solution breccias developed in association with faults in the Pan deposit serve as the primary host for

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gold mineralization. Additional mineralization is hosted in favorable stratigraphy, such as the lower Pilot Shale and the upper Devil’s Gate Limestone. Mineralization has been confirmed to depths in excess of 750 ft over a strike length of greater than 2.5 miles.

The 2017 resource modeling exercise began with a reconstruction of the property geology in three dimensions based on surface mapping, logged geology and a new set of 2016 geologic cross-sections from GRP. The cross-sections (84 total) are oriented N60°E and spaced 100 ft apart for the majority of the 13,000 ft of strike length of the deposit. These cross-sections served as a guide for 3D contouring software to locate fault and lithologic contact surfaces. The resulting SRK 3D geologic model is shown in plan and perspective in Figure 14-2 and Figure 14-3 respectively.

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Source: SRK, 2017 Figure 14-1: Resource drilling in model area, showing resource pit outlines (red)

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Source: SRK, 2017 Figure 14-2: 3D Geologic Model, Plan View

Source: SRK, 2017 Figure 14-3: 3D Geology Model, Perspective View

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14.5 Mineral Domains for Interpolation SRK re-interpreted the deposit’s structural controls and grade trends relative to new 2016 interpreted geology. A total of seven interpolation domains were established to evaluate the search direction and ranges for grade estimation. These interpolation domains are shown in Figure 14-4.

The North Fault Domain is bounded by the Branham Fault on the east and a second parallel high angle structure to the west. The Branham Fault is a through-going structure mapped and drilled over the full strike-length of the deposit. Nearly all of the mineralization in this domain is hosted by solution breccia and trends at a high angle parallel to the bounding faults.

The North Seds Domain is bounded to the east by a post mineral fault and is gradational to the west and south. Gold mineralization in this domain tracks the low-angle east-dipping contact between the Devil’s Gate Limestone and the overlying Pilot Shale. Locally, near Red Hill, mineralization dips more steeply to the east (20°).

The Hangingwall Seds Domain is a large volume of rock that lies west of the Branham Fault. Mineralization in this domain is characterized as nearly flat lying, controlled by the contact between the Devil’s Gate Limestone and the overlying Pilot Shale.

The Black Stallion Domain is a zone of structural complexity at the intersection of several mapped and drilled faults as depicted in Figure 14-2. The primary trend of mineralization in this domain is steeply dipping to the west-northwest tracking the major northeast striking fault in this sector.

The West Seds Domain is also a structural anomaly in the sedimentary package with the primary mineral trend dipping gently south along a mapped fault.

The South Fault Domain is a long, narrow zone, bounded to the west by the Branham Fault. Mineralization west of the Branham Fault is very sparse and tracks shallow bedding planes in the Devil’s Gate Limestone. Within the South Fault Domain, mineralization is controlled by both the high- angle Branham Fault, solution breccia, and by northeast dipping stratigraphy. Both structural and stratigraphic trends are evident in cross-section. This domain is bounded on the east by a high-angle parallel structure which appears to be syn- to post-mineral, suggesting that more than one pulse of mineralization may have occurred in this system.

Finally, the Stratigraphic Domain (formerly known as Wendy), is bounded to the west by a high-angle structure and is gradational to the north and east. The mineralization in this domain is exclusively stratigraphically controlled by the contact between the Devil’s Gate Limestone and the overlying Pilot Shale. This contact is also marked by an increase in alteration intensity (both argillic and silicic). The trend of mineralization has a northeast (60°) pitch and a down plunge of 55° parallel to bedding.

To constrain gold grade estimation, wireframes were constructed using 20 to 30 ft fixed length composites to drive a 0.005 oz/t Au indicator in software. The indicator wireframes were adjusted manually in cross-section to reflect the underlying geology. This methodology provided a smooth boundary and intentionally included lower grade composites, both within and marginal to the main mineralized zones. Within the simplified grade domain, composites lower than cut-off were allowed to average down the estimation and in that way, have imparted a preliminary level of dilution to the surrounding grades. The net effect of this method was to create an overall grade-limiting wireframe at approximately 0.004 oz/t Au. The grade-limiting wireframe (mineralized domain) used in estimation, was shown in plan Figure 14-4 (left).

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Source: SRK, 2015 Figure 14-4: Pan Interpolation Domains

14.6 Block Model The resource block model was informed by 377,744 ft drilled from 1,179 drillholes at an average drillhole spacing less than 100 ft in the principal resource areas (North Pan, South Pan) and less than 150 ft in other mineralized zones within the model space. Based on this drillhole spacing and anticipated surface mining methods and bench heights, it was decided that a 20 ft x 20 ft x 20 ft (XYZ) block size would be appropriate. The model extents are listed in Table 14-1. The Pan 3D block model items and definitions for the 2017 SRK resource model are included in Table 14-2.

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Table 14-1: Pan 3D Block Model Extents Minimum Maximum Size Number of Coordinate (ft) (ft) (ft) Blocks Easting 1995500 2000720 20 261 Northing 14296200 14281900 20 635 Elevation 5200 7300 20 105 Total Number of Blocks 17,402,175 Source: SRK, 2017

Table 14-2: Pan 3D Block Model Items Item Minimum Maximum Precision Description CTOPO 0 100 0.1 Current topography percentage based on Dec 2016 as- built surface OTOPO 0 100 0.1 Original topography percentage CLASS 0 5 1 Material classification item (Measured = 1, Indicated =2, Inferred =3) MAREA 0 10 1 Model area (North =1, Central =2, South =3) LITH 0 10 1 Lithology codes (see LITH item table) ALT 0 10 1 Alteration codes (see ALT item table) MDOM 0 100 1 Model domain (see MDOM item table) INTDM 0 100 1 Interpolation domain = MDOM where AUDOM =1 TF 0 30 0.01 Tonnage factor (cu.ft./ton) AUDOM 0 5 1 Gold gradeshell domain - flags blocks within the 0.005 opt Au shell AUPCT 0 100 0.1 Ore percent item - defines percentage of blocks within AUDOM AUOK 0 4 0.0001 Au grade (opt) from Ordinary Krig Estimation AUID 0 4 1 Au grade (opt) from Inverse Distance Estimation (not used) AUNN 0 4 0.0001 Au grade (opt) from Nearest Neighbor Estimation DCL 0 1,000 0.1 Distance to closest composite from OK estimate DAV 0 1,000 0.1 Average distance to composites from OK estimate NCMP 0 20 1 Number of composites used for OK estimate NDH 0 10 1 Number of drillholes used for OK estimate PASS 0 5 1 Interpolation pass flag for OK estimate KVAR 0 5 0.01 Kriging variance from OK estimate Source: SRK, 2017

14.7 Assay Capping A histogram of the raw assay grades is presented in Figure 14-5. To prevent extremely high-grade values from over-influencing block grade estimates, the assay grades were capped before compositing within each interpolation domain. To determine the appropriate capping values, Log Cumulative Probability Plots (CPPs) were generated for all of the assays by lithology. Statistical outliers of the raw assays in selective units were capped. Capping was only necessary in three lithologies. Others had low maximum values and low total populations that did not require capping. The results of the capping exercise provided in Table 14-3.

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Source: SRK, 2017 Figure 14-5: Histogram of Raw Assay Gold Values

Table 14-3: Gold Assay Capping Values for Pan Modeling Lith Unit Lith Code Au_Cap (oz/t) SBX 6 0.23 Pilot SH 7 0.23 Devil’s Gate LS 8 0.09 Source: SRK, 2017

14.8 Compositing Raw assay values were back-coded with the interpolation domain wireframes described in Section 14.5, resulting in 24,028 assays coded within the mineralized domain. These coded assays were then composited honoring interpolation domain boundaries to a fixed 10 ft down-hole length.

Summary statistics by interpolation domain for each composite file are provided in. A total of 12,267 composites were generated with an average grade of 0.015 oz/t Au.

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Table 14-4: Pan Gold Composite Statistics by Lithology and Interpolation Domain INTDM LITH Valid Minimum Maximum Mean Variance Co. of oz/t Au oz/t Au oz/t Variation Au Volcanics 0 Ely LS 29 0.000 0.010 0.005 0.00001 0.738 Diamond 13 0.003 0.029 0.014 0.00005 0.509 Peak CGL Chainman 0 1_NorthFault SH Joanna LS 0 Soln Bx 4,158 0.000 0.202 0.015 0.0002 0.958 Pilot SH 360 0.000 0.148 0.016 0.00043 1.264 Devil’s LS 75 0.000 0.039 0.007 0.00004 0.896 Total 4,635 0.000 0.202 0.015 0.00021 0.998 Volcanics 0 Ely LS 0 Diamond 0 Peak CGL Chainman 0 2_NorthSeds SH Joanna LS 0 Soln Bx 575 0.000 0.154 0.023 0.00056 1.032 Pilot SH 122 0.000 0.067 0.015 0.00015 0.816 Devil’s LS 63 0.000 0.068 0.011 0.0001 0.874 Total 760 0.000 0.154 0.021 0.00047 1.048 Volcanics 0 Ely LS 0 Diamond 0 Peak CGL Chainman 0 3_BlackStallion SH Joanna LS 0 Soln Bx 216 0.000 0.120 0.017 0.00027 0.984 Pilot SH 46 0.000 0.039 0.012 0.00007 0.663 Devil’s LS 52 0.000 0.046 0.011 0.0001 0.938 Total 314 0.000 0.120 0.015 0.00022 0.980 Volcanics 0 Ely LS 0 Diamond 0 Peak CGL Chainman 0 4_WestSeds SH Joanna LS 0 Soln Bx 100 0.000 0.190 0.027 0.00083 1.049 Pilot SH 100 0.000 0.071 0.014 0.0002 0.983 Devil’s LS 46 0.000 0.050 0.010 0.00012 1.088 Total 246 0.000 0.190 0.019 0.0005 1.176 Volcanics 0 Ely LS 0 Diamond 0 Peak CGL Chainman 0 5_HangingwallSeds SH Joanna LS 0 Soln Bx 500 0.000 0.114 0.014 0.00017 0.945 Pilot SH 99 0.000 0.081 0.012 0.00018 1.117 Devil’s LS 103 0.000 0.044 0.008 0.00004 0.854 Total 702 0.000 0.114 0.013 0.00016 0.990

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INTDM LITH Valid Minimum Maximum Mean Variance Co. of oz/t Au oz/t Au oz/t Variation Au Volcanics 0 Ely LS 0 Diamond 0 Peak CGL Chainman 0 6_Stratigraphic SH Joanna LS 3 0.004 0.007 0.005 0 0.206 Soln Bx 567 0.000 0.173 0.012 0.00018 1.121 Pilot SH 647 0.000 0.183 0.015 0.00032 1.185 Devil’s LS 755 0.000 0.086 0.009 0.00005 0.802 Total 1,972 0.000 0.183 0.012 0.00018 1.156 Volcanics 0 Ely LS 0 Diamond 0 Peak CGL Chainman 0 7_SouthFault SH Joanna LS 0 Soln Bx 2,618 0.000 0.167 0.018 0.00031 0.982 Pilot SH 310 0.000 0.132 0.010 0.00012 1.061 Devil’s LS 710 0.000 0.069 0.009 0.00006 0.891 Total 3,638 0.000 0.167 0.016 0.00026 1.038 Volcanics 0 Ely LS 29 0.000 0.010 0.005 0.00001 0.738 Diamond 13 0.003 0.029 0.014 0.00005 0.509 Peak CGL Chainman 0 Total SH Joanna LS 3 0.004 0.007 0.005 0 0.206 Soln Bx 8,734 0.000 0.202 0.016 0.00027 1.014 Pilot SH 1,684 0.000 0.183 0.014 0.00028 1.173 Devil’s LS 1,804 0.000 0.086 0.009 0.00006 0.871 Total 12,267 0.000 0.202 0.015 0.00025 1.05796 Source: SRK, 2017

14.9 Variogram Analysis and Modeling Variography was carried out on the 10 ft composites by interpolation domain. To facilitate this work SRK used the MineSight® Data Analysis tool kit to develop a series of correlograms, (semi-variograms where the sill has been normalized to 1.0), for each mineral domain.

Before developing the 3D correlograms for each mineral domain, the nugget effect was determined by calculating a downhole variogram. The nugget value was then applied to the variogram models.

The variogram for each interpolation domain was controlled fundamentally by a geologic interpretation (lithology, structure, alteration) of that domain. From that original starting orientation, variograms were then adjusted slightly by changing the search directions by a few degrees around each axis to investigate if the initial directions could be improved. Once this work was completed a final set of directions and search ranges were selected. The downhole, major, semi-major, and minor direction correlograms for the North Fault and Stratigraphic Domains are provided as examples in Figure 14-6 and Figure 14-7.

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Variogram parameters that were carried into grade estimation are listed in Table 14-5. SRK was unable to generate a meaningful variogram for the Black Stallion, West Seds, and Hangingwall Seds Domains, largely due to low data populations in those areas. Ranges and anisotropies for those domains were determined from mineralized trends interpreted from the geologic model.

Source: SRK, 2017 Figure 14-6: Example Correlogram for North Fault Interpolation Domain in Primary Direction (azm 190, dip -75)

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Source: SRK, 2017 Figure 14-7: Example Correlogram for Stratigraphic Interpolation Domain in Primary Direction (azm 60, dip -55)

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Table 14-5: Variogram (Correlogram) Parameters by Interpolation Domain Interpolation Domain Search Range (ft) Rotation Angles Model Information (degrees: GSLIB-MS) INTDM Name Major Semi-Major Minor Rotation Z Rotation X Rotation Y Type Nugget Sill 1 NorthFault 160 120 70 190 -75 90 exp 0.39 0.61 2 NorthSeds 137 125 50 5 0 -20 exp 0.23 0.77 3 BlackStallion 150 120 50 303 -56 0 exp 0.69 0.31 4 WestSeds 150 120 50 192 -12 0 exp 0.57 0.43 5 HangingwallSeds 150 150 50 80 0 0 exp 0.29 0.71 6 Stratigraphic 150 120 50 60 -55 0 exp 0.32 0.68 7 SouthFault 114 110 67 350 0 60 exp 0.41 0.59 All Combined 144 exp 0.45 0.55 Source: SRK, 2016

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Source: SRK, 2016 Figure 14-8: Search Ellipses Relative to Interpolation Domains

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14.10 Grade Estimation Gold grades were estimated using a three pass OK method within each interpolation domain. Grade estimation was repeated using both Inverse Distance Squared (ID2) and polygonal methods (nearest neighbor - NN) to facilitate model validation. The SRK polygonal method used one composite to estimate each block and applied anisotropy that approximated the directional distance weighting used in the OK estimate.

The first pass was limited to data very close to the composites at approximately one half of the variogram range and required at least four composites from a minimum of two holes. This distance factor was adjusted until the SRK QP was satisfied that the blocks estimated in the first pass represented an appropriate volume given the density of the source data, roughly one third of the interpolation domain blocks were assigned in the first pass. This pass ensures that blocks close to composite data have grades consistent with the composite data.

The second interpolation pass was limited to data within the full variogram range and required at least three composites from two drillholes. This distance factor was adjusted until the estimated blocks filled a volume appropriate given the density of the source data.

The third pass was given a large search radius and a minimum of one composite from one drillhole to ensure that all blocks within each interpolation domain were estimated.

The key interpolation parameters for the OK estimate are shown in Table 14-6.

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Table 14-6: Ordinary Kriging Interpolation Parameters for the Pan Gold Estimation Search Distance Factor 0.50 0.75 5.00 0.60 1.00 5.00 0.44 0.64 5.00 0.38 0.57 5.00 0.58 0.90 5.00 0.80 1.17 5.00 0.55 0.80 5.00 Comment1 NorthFault NorthSeds BlackStallion WestSeds HangingwallSeds Stratigraphic SouthFault Comment2 No Variogram No Variogram No Variogram Poor Variogram Interpolation Pass # 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 Comment Values... Interpolation Domain Item - Model INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM Interpolation Domain Code - Model 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 Interpolation Domain Item - Composites INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM INTDM Interpolation Domain Minimum - Composites 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 Interpolation Domain Maximum - Composites 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 6 6 6 7 7 7 Model Grade Item AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID AUID Compsite Grade Item Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Au_CAP Correlogram Range - Major 160 160 160 137 137 137 150 150 150 150 150 150 150 150 150 150 150 150 114 114 114 Correlogram Range - Semi Major 120 120 120 125 125 125 120 120 120 120 120 120 150 150 150 120 120 120 110 110 110 Correlogram Range Minor 70 70 70 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 67 67 67 Rotation - Major 190 190 190 5 5 5 303 303 303 192 192 192 80 80 80 60 60 60 350 350 350 Rotation - Semi Major -75 -75 -75 0 0 0 -56 -56 -56 -12 -12 -12 0 0 0 -55 -55 -55 0 0 0 Rotation - Minor 90 90 90 -20 -20 -20 0 0 0 0 0 0 0 0 0 0 0 0 60 60 60 Correlogram Model Type exp exp exp exp exp exp exp exp exp exp exp exp exp exp exp exp exp exp exp exp exp Nugget Effect 0.39 0.39 0.39 0.23 0.23 0.23 0.69 0.69 0.69 0.57 0.57 0.57 0.29 0.29 0.29 0.32 0.32 0.32 0.41 0.41 0.41 Sill (Without Nugget) 0.61 0.61 0.61 0.77 0.77 0.77 0.31 0.31 0.31 0.43 0.43 0.43 0.71 0.71 0.71 0.68 0.68 0.68 0.59 0.59 0.59 Min No. Comps to Estimate 4 3 1 4 3 1 4 3 1 4 3 1 4 3 1 4 3 1 4 3 1 Max No. Comps to Estimate 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 Max No. Comps per Hole 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 3 2 2 Correlogram Ellipse Block Level 44 42 38 38 44 39 40 Correlogram Ellipse Block Column 178 149 94 65 127 177 167 Correlogram Ellipse Block Row 529 555 338 356 287 181 149 Ellipse Major Search Range 80 120 800 83 137 685 66 96 750 57 86 750 87 135 750 120 176 750 63 92 570 Ellipse Semi-Major Search Range 60 90 600 75 125 625 53 77 600 46 69 600 87 135 750 96 141 600 61 88 550 Ellipse Minor Search Range 35 53 350 30 50 250 22 32 250 19 29 250 29 45 250 40 59 250 37 54 335 Declustering (1=Octant) 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Max# Composites per Oct/Quad 3 3 2 3 3 2 3 3 2 3 3 2 3 3 2 3 3 2 3 3 2 Max# Adjacent Empty Oct/Quad 8 10 15 8 10 15 8 10 15 8 10 15 8 10 15 8 10 15 8 10 15 Outlier Cutoff 999 999 999 999 999 999 999 999 999 999 999 999 999 999 999 999 999 999 999 999 999 Outlier Distance of Influence -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 -999 Closest Comp Distance Item DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL DCL Average Comp Distance Item DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV DAV No. Composites Used NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP NCMP No. Drillholes Used NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH NDH Block Pass Item PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Composite Pass Item PASS1 PASS2 PASS3 PASS1 PASS2 PASS3 PASS1 PASS2 PASS3 PASS1 PASS2 PASS3 PASS1 PASS2 PASS3 PASS1 PASS2 PASS3 PASS1 PASS2 PASS3 Model Grade Reset Item AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK AUOK Model Pass Reset Item PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS PASS Model Grade Reset Zone range 1 99 99 2 99 99 3 99 99 4 99 99 5 99 99 6 99 99 7 99 99 Interpolation Domain Upper Limit Level # 20 20 20 19 19 19 28 28 28 30 30 30 15 15 15 10 10 10 10 10 10 Interpolation Domain Lower Limit Level # 68 68 68 66 66 66 48 48 48 46 46 46 73 73 73 71 71 71 65 65 65 Interpolation Domain Min Limit Column # 161 161 161 125 125 125 78 78 78 47 47 47 78 78 78 142 142 142 136 136 136 Interpolation Domain Max Limit Column # 195 195 195 173 173 173 109 109 109 84 84 84 175 175 175 209 209 209 167 167 167 Interpolation Domain Min Limit Row # 422 422 422 486 486 486 321 321 321 332 332 332 50 50 50 1 1 1 32 32 32 Interpolation Domain Max Limit Row # 635 635 635 623 623 623 354 354 354 379 379 379 523 523 523 293 293 293 293 293 293 Kriging Variance - Model Item KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR KVAR Max Distance for Initial Composite Selection 80 120 800 90 140 690 70 100 750 60 90 750 90 140 750 120 180 750 70 100 570 All distance given in are in ft, angles are in degrees.

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14.11 Density Modeling From a database of 258 density determinations, SRK applied statistics to 256 values, rejecting two outliers that were considered unrepresentative. The remaining set of density values were well located in the deposit, which facilitated a comprehensive assessment of density by material type. In the assessment, material type is a combination of host lithology modified by overprinting alteration.

Primary lithologies included:

• Breccia; • Limestone; and • Shale.

Modifying alteration included:

• Unaltered; • Silicified; and • Argillic (clay).

Alteration was completely remodeled from source data in 2017. Special attention was given to alteration intensity of both silicic and argillic alteration in mineralized areas. Carbonaceous alteration was also present, but its occurrence is very deep and beyond the depth of any potential open pit mining.

After the density samples were grouped into the appropriate geologic categories, the values in each category were averaged. Table 14-7 summarizes the results of that statistical assessment.

Table 14-7: Density Statistics by Material Type and Formation Bulk Density, g/cm3 Formation (Logged) Material Type Count Mean Standard Deviation Tv - Tertiary Volcanics Volcanic Tuff(1) 1 1.90 -- Mc - Chainman Shale Shale 5 2.260 0.089 Breccia 2 2.415 0.290 Breccia - Argillic 29 2.220 0.187 Breccia - Carbon 3 2.230 0.036 Breccia - Silicic 36 2.464 0.093 MDp - Pilot Shale Limestone 1 2.53 -- Limestone - Carbon 1 2.50 -- Shale 14 2.284 0.117 Shale - Argillic 38 2.123 0.171 Shale - Silicic 15 2.315 0.211 Breccia 10 2.555 0.198 Breccia - Argillic 47 2.463 0.201 Breccia - Carbon 2 2.250 0.212 Breccia - Silicic 27 2.475 0.153 Dd – Devil’s Gate Limestone Limestone(2) 9 2.580 0.114 Limestone - Argillic 9 2.457 0.227 Limestone - Carbon 3 2.633 0.115 Limestone - Silicic 1 2.50 -- Breccia - Argillic (Pilot) 3 2.090 0.282 Unspecified Fault Zone Breccia - Silicic (Devil’s) 1 2.60 -- Global Statistics, n = 256 2.365 0.221 (1) Volcanic Tuff sample from depth of 0 ft in drillhole, not representative (SG = 1.9). (2) One limestone sample of 7 g/cm3 was omitted from statistics.

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There are some geologic units that may be mined as waste and were not characterized by the SRK assessment because they were not sampled. For these units, such as the Ely Limestone, Chainman Shale and the Diamond Peak Conglomerate, SRK defaulted to generic densities by rock type as published in the AusIMM Field Geologists Manual (Berkman, 1989). Density values used in modeling are listed in Table 14-8.

Table 14-8: Density Assignments by Material Type Used in Modeling. Tonnage Factor, Lith/Alt/Location SG ft3/t Alluvium 1.54 20.80 Volcanics - North 2.80 11.44 Volcanics - South 2.60 12.32 Ely Limestone 2.58 12.42 Diamond Peak Conglomerate 2.30 13.93 Chainman Shale 2.26 14.18 Joana Limestone 2.58 12.42 SBX - Unaltered 2.49 12.89 SBX - Argillic 2.37 13.51 SBX - Silicic 2.46 13.01 SBX - SE - Unaltered 2.49 12.89 SBX - SE - Argillic 2.18 14.67 SBX - SE - Silicic 2.31 13.84 Pilot Shale - Unaltered 2.28 14.03 Pilot Shale - Argillic 2.12 15.09 Pilot Shale - Silicic 2.31 13.84 Devil’s Gate Limestone - Unaltered 2.58 12.42 Devil’s Gate Limestone - Argillic 2.46 13.04 Devil’s Gate Limestone - Silicic 2.50 12.81 Unassigned 2.37 13.54

14.12 Model Validation Various measures were implemented to validate the Pan Resource block model. These measures included the following:

• Comparison of drillhole composites with resource block grade estimates from all zones visually in section; • Statistical comparisons between block and composite data using distribution analyses; • Statistical comparisons between the OK and NN models; and • Swath plot analysis (drift analysis) comparing the inverse distance model with the NN model and composite grades.

14.12.1 Visual Comparison Visual comparisons between the block grades and underlying composite grades in section show close agreement. Section views through multiple model areas displaying both block and drillhole composite grades are provided in Figure 14-10 through Figure 14-19. Figure 14-9 provides a plan view showing the location of this longitudinal section.

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Source: SRK, 2017 Figure 14-9: Visual Grade Validation - Plan View

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Drawing not to scale Source: SRK, 2017 Figure 14-10: Visual Grade Validation – Section N 14,270,800

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Source: SRK, 2017 Figure 14-11: Visual Grade Validation – Section N 14,271,300

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Source: SRK, 2017 Figure 14-12: Visual Grade Validation – Section N 14,271,800

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Source: SRK, 2017 Figure 14-13: Visual Grade Validation – Section N 14,272,300

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Source: SRK, 2017 Figure 14-14: Visual Grade Validation – Section N 14,273,500

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Source: SRK, 2017 Figure 14-15: Visual Grade Validation – Section N 14,275,900

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Source: SRK, 2017 Figure 14-16: Visual Grade Validation – Section N 14,278,900

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Source: SRK, 2017 Figure 14-17: Visual Grade Validation – Section N 14,279,600

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Source: SRK, 2017 Figure 14-18: Visual Grade Validation – Section N 14,280,100

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Source: SRK, 2017 Figure 14-19: Visual Grade Validation – Section N 14,280,925

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14.12.2 Comparative Statistics SRK ran statistics by interpolation domain comparing the Au NN, ID2, and OK grades against each other as well as the underlying declustered composite grades. The NN interpolation method provides a declustered representation of the sample grades and therefore, the resulting mean grades of any other method should be similar to the mean grade of the NN estimate at a zero CoG. The OK and ID2 estimates were close to the NN estimate, within acceptable tolerances of the NN mean, approximately ±5%. The global mean estimated OK grade was 0.9% greater than the NN estimate. Estimation statistics by domain are provided in Table 14-9.

Table 14-9: Model Validation - Modeled Au OK vs. ID2 vs. Au NN vs. Composite Au CAP

Gold Grades % Difference of AUOK Domain No Blks OK ID NN Comp vs oz/t oz/t oz/t oz/t ID NN Comp 1 44,721 0.011 0.011 0.011 0.012 -0.9% 2.4% -9.9% 2 9,394 0.014 0.014 0.014 0.015 -2.9% -0.3% -7.8% 3 2,697 0.013 0.014 0.014 0.015 -3.3% -4.5% -9.1% 4 1,717 0.015 0.015 0.014 0.016 -0.6% 5.0% -4.7% 5 13,230 0.012 0.012 0.011 0.012 -0.6% 2.6% -3.5% 6 53,251 0.011 0.011 0.011 0.012 -3.3% -1.5% -7.9% 7 35,110 0.012 0.012 0.012 0.013 -0.8% 2.4% -6.1% Total 160,120 0.012 0.012 0.011 0.012 -1.8% 0.9% -7.1% Source: SRK, 2017

14.12.3 Swath Plots A swath plot is a graphical display of the grade distribution derived from a series of bands, or swaths, generated in several directions through the deposit. Using the swath plot, grade variations from the OK model are compared to the distribution derived from the NN grade model and source composites.

On a local scale, the NN model does not provide reliable estimations of grade, but on a much larger scale it represents an unbiased estimation of the grade distribution based on the underlying data. Therefore, if the OK model is unbiased, the grade trends may show local fluctuations on a swath plot, but the overall trend of the OK should be similar to the NN distribution of grade.

Swath plots were generated along east-west and north-south directions, and also for elevation. Swath widths were 75, 75, and 20 m wide for east-west, north-south and elevation, respectively. Au grades were plotted by OK and NN for all estimated blocks as well as the corresponding capped grades in composites. The swath plots are shown in Figure 14-20 through Figure 14-22.

According to the swath plots, there is good correlation between the modeling methods. The degree of smoothing in the NN model is evident in the peaks and valleys shown in some swath plots; however, this comparison shows close agreement between the OK and NN models in terms of overall grade distribution as a function of easting, northing, and elevation; especially where there are high tonnages (vertical bars on the plots). The plots also demonstrate the high degree of grade clustering and variance within the input composites and the modeled smoothing of the composite grades.

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Source: SRK, 2017 Figure 14-20: East/West Gold Swath Plot – 40 ft Swath Width

Source: SRK, 2017 Figure 14-21: North/South Gold Swath Plot – 60 ft Swath Width

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Source: SRK, 2017 Figure 14-22: Elevation Gold Swath Plot – 20 ft Swath Width

14.13 Resource Classification Mineral Resources were classified into Measured, Indicated and Inferred categories based on CIM Definition Standards compliant with NI 43-101 reporting. A minimum of three drillholes were required for the assignment of Measured Mineral Resources within a drill data spacing of 65 ft. Indicated Mineral Resources were classified with a minimum of two drillholes, but within a drill data spacing of 130 ft. Inferred resources represent material estimated by as few as one drillhole at a distance greater than 130 ft from source data, but within the gold grade domain and within the potential mining (pit) shape.

Classification using a purely statistical approach occasionally produces artifacts, blocks that fail mathematical criteria but are clearly related to adjacent blocks. Therefore, to finalize classification, SRK generated wireframes for Measured and Indicated categories. The wireframes were based on a block’s interpolation pass, number of drillholes, and average distance to data; as well as an interpretation of geologic continuity. By building classification wireframes based on a combination of statistics and geology, blocks of contiguous confidence are appropriately categorized and facilitate future mine planning.

An oblique view of model blocks showing the distribution of Measured, Indicated and Inferred categories is provided in Figure 14-23.

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Source: SRK. 2017 Figure 14-23: Pan Estimated Blocks Colored by Classification Code

14.14 Mineral Resource Statement The Mineral Resource statement for the Pan deposit is presented in Table 14-10, which includes a separate statement for oxide and sulfide material. To comply with NI 43-101, and satisfy the guideline that reported mineralization have “reasonable prospect for eventual economic extraction,” SRK reports Mineral Resources within a LG optimized pit shape. The optimized pit defining the mineral resource is shown in Figure 14-24.

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Table 14-10: Mineral Resource Statement for the Pan Gold Deposit, White Pine County, Nevada, USA. February 10, 2017 CoG Mass Contained Grade Contained Metal Model Area Material Au (oz/t) kt Au (oz/t) Au (koz) Measured 9,021 0.018 159 Indicated 21,044 0.013 275 Total Multiple Measured & Indicated 30,065 0.014 434 Inferred 5,670 0.013 72 Measured 4,708 0.018 87 Indicated 8,731 0.014 126 North and Central 0.005 Measured & Indicated 13,439 0.016 213 Inferred 2,054 0.012 25 Measured 4,312 0.017 72 Indicated 12,313 0.012 149 South 0.004 Measured & Indicated 16,626 0.013 221 Inferred 3,616 0.013 47 Source: SRK, 2017 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any part of the Mineral Resources estimated will be converted into a Mineral Reserves; Resources stated as contained within a potentially economically minable open pit; pit optimization was based on an assumed gold price of US$1,350/oz, North and Central area recoveries of 62% for Au and a Southern area recovery of 85% for Au, a mining cost of US$2.00/t, an ore processing and G&A cost of US$3.55/t, and a pit slope of 50 degrees in the North and 45 degrees in the South and Central Areas; Resources are reported using a gold CoG of 0.005 oz/t in the North and Central Areas and 0.004 oz/t in the South Area; The effective date of the Mineral Resource is February 10, 2017; and, Numbers in the table have been rounded to reflect the accuracy of the estimate and may not sum due to rounding.

14.14.1 Calculation of Cut-off Grade Internal CoGs of 0.005 oz/t Au in the North and Central mining areas 0.004 oz/t Au in the south were applied to report resources. The CoG for the resource was determined using a gold sales price of US$1,350/oz, no royalties, gold recoveries of 62% in the North and Central mining areas and 85% in the South, ore and waste mining costs of US$2.00/t, and ore processing and G&A costs of US$3.55/t. The calculation for determining the CoG was:

Internal CoG = Mining Cost Ore + Processing and G&A Costs – Mining Cost Waste Au Price x (Process Recovery – Royalty)

14.14.2 Pit Limited Resource Pit optimization was performed on the Pan model using MineSight Economic Planner (MSEP). MSEP employs the industry-accepted LG algorithm, which determines the maximum pit extents by optimizing the stripping ratio. Blocks classified as Measured, Indicated, and Inferred were all used to define the resource pit shell. Input criteria for the pit optimization, including prices and recoveries for all metals, are described in the footnotes of the resource statement.

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Source: SRK, 2017 Figure 14-24: Pan 2017 Resource Pit in Plan

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14.15 Mineral Resource Sensitivity Per industry standards, the Pan Mineral Resource is reported below at variable cut-offs within the 2017 Resource Pit at incremental CoG’s to demonstrate the sensitivity of the resource. Note, despite the difference in recovery, the North, Central, and Southern model areas are all reported at the same cut-off for the resource sensitivity in Table 14-11. Table 14-11 is only provided to shown the sensitivity of the resource to changes in cutoff grade. The Mineral Resource statement for Pan is presented in Table 14-10.

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Table 14-11: Pan Total MI&I Resource Sensitivity within the 2017 SRK Resource Pit Total Measured Indicated Inferred Cut-off Mass Au Grade Au Metal Mass Au Grade Au Metal Mass Au Grade Au Metal Mass Au Grade Au Metal Au (oz/t) kt (oz/t) (koz) kt (oz/t) (koz) kt (oz/t) (koz) kt (oz/t) (koz) 0.001 15,728 0.015 238.9 4,748 0.018 86.8 8,907 0.014 127.1 2,072 0.012 25.0 0.002 15,724 0.015 238.9 4,748 0.018 86.8 8,905 0.014 127.1 2,072 0.012 25.0 0.003 15,714 0.015 238.9 4,747 0.018 86.8 8,895 0.014 127.1 2,072 0.012 25.0 0.004 15,659 0.015 238.7 4,738 0.018 86.8 8,851 0.014 126.9 2,070 0.012 25.0 0.005 15,493 0.015 237.9 4,708 0.018 86.7 8,731 0.014 126.4 2,054 0.012 24.9 0.006 15,127 0.016 235.9 4,640 0.019 86.3 8,476 0.015 125.0 2,011 0.012 24.7 0.007 14,523 0.016 232.0 4,536 0.019 85.6 8,078 0.015 122.4 1,909 0.013 24.0 0.008 13,564 0.017 224.8 4,365 0.019 84.3 7,483 0.016 117.9 1,716 0.013 22.6 0.009 12,318 0.017 214.3 4,115 0.020 82.2 6,749 0.017 111.7 1,454 0.014 20.4 0.010 11,058 0.018 202.4 3,861 0.021 79.8 6,001 0.017 104.6 1,197 0.015 17.9 0.012 8,723 0.020 176.9 3,286 0.022 73.5 4,657 0.019 90.0 781 0.017 13.4 0.015 5,962 0.023 140.0 2,454 0.025 62.4 3,080 0.022 68.9 428 0.020 8.7 0.020 3,140 0.029 91.6 1,453 0.031 45.1 1,508 0.028 42.0 179 0.025 4.5 0.025 1,658 0.035 58.8 837 0.037 31.4 760 0.034 25.5 61 0.031 1.9 Source: SRK, 2017

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14.16 Relevant Factors For this study, SRK did not identify any environmental, permitting, legal, title, taxation, marketing, or other non-technical factors that could affect resources. Assumptions regarding gold recoveries at low (near-cut-off) grades should be confirmed.

14.17 Resource Potential In addition to the in-pit resource sensitivity, SRK generated a series of pits at varying gold sales prices. Figure 14-25 shows the resulting pits from this work. Table 14-12 includes the resource tonnages within those pits reported at the Au cut-offs defined in the table. Table 14-12 is provided to shown the sensitivity of the resource to changes in confining pit configurations. The Mineral Resource statement for Pan is presented in Table 14-10.

The analysis helps to highlight potential target areas for further exploration. For example, areas between pits that may contain metal but have not been adequately tested represent immediate drill targets to increase the resource. Similarly, any other prospects that are contiguous to this pit shape and could potentially share stripping with known mineralization become high priority targets.

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Source: SRK, 2017 Figure 14-25: Optimized Pit Price Sensitivity Reported at Fixed Au Cut-offs

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Table 14-12: Optimized Pit Price Sensitivity Material Quantities Reported at Fixed Au Cut-offs CoG Constraining Mass Contained Grade Contained Metal Model Pit Au Material Area (Au Sales Price kt Au (oz/t) Au (koz) (oz/t) US$) Measured 7,995 0.018 147 Indicated 14,368 0.014 201 Measured & Indicated 22,363 0.016 349 $1,050

Inferred 2,813 0.013 37 Total 25,176 0.015 386 01 Measured 8,467 0.018 153 02 Indicated 16,565 0.014 226 Measured & Indicated 25,031 0.015 378 $1,150

03 Inferred 3,348 0.013 44 Total 28,380 0.015 422 01 Measured 8,625 0.018 154 02 Indicated 17,505 0.013 236 Measured & Indicated 26,129 0.015 390 Total Multiple $1,250

03 Inferred 3,627 0.013 47 Total 29,756 0.015 437 01 Measured 9,021 0.018 159 02 Indicated 21,044 0.013 275 Measured & Indicated 30,065 0.014 434 $1,350

03 Inferred 5,670 0.013 72 Total 35,735 0.014 506 01 Measured 9,267 0.017 161 02 Indicated 22,843 0.013 297 Measured & Indicated 32,110 0.014 459 $1,500

03 Inferred 7,217 0.013 92 Total 39,327 0.014 551 Measured 4,387 0.019 83 Indicated 7,038 0.015 108 Measured & Indicated 11,425 0.017 191 $1,050

Inferred 1,457 0.013 19 Total 12,882 0.016 210 01 Measured 4,557 0.019 85 02 Indicated 7,838 0.015 117 Measured & Indicated 12,395 0.016 202 $1,150

03 Inferred 1,716 0.012 21 North and Total 14,111 0.016 223 0.005 Central 01 Measured 4,628 0.019 86 02 Indicated 8,277 0.015 122 Measured & Indicated 12,905 0.016 207 $1,250

03 Inferred 1,879 0.012 23 Total 14,785 0.016 231 01 Measured 4,708 0.018 87 02 Indicated 8,731 0.014 126 Measured & Indicated 13,439 0.016 213 $1,350

03 Inferred 2,054 0.012 25 Total 15,493 0.015 238

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CoG Constraining Mass Contained Grade Contained Metal Model Pit Au Material Area (Au Sales Price kt Au (oz/t) Au (koz) (oz/t) US$) 01 Measured 4,859 0.018 88 02 Indicated 9,520 0.014 134 Measured & Indicated 14,379 0.015 222 $1,500

03 Inferred 2,431 0.012 29 Total 16,810 0.015 251 Measured 3,608 0.018 64 Indicated 7,331 0.013 93 Measured & Indicated 10,938 0.014 157 $1,050

Inferred 1,356 0.014 19 Total 12,294 0.014 176 01 Measured 3,909 0.017 68 02 Indicated 8,727 0.012 109 Measured & Indicated 12,636 0.014 176 $1,150

03 Inferred 1,633 0.014 22 Total 14,269 0.014 198 01 Measured 3,996 0.017 69 02 Indicated 9,228 0.012 114 Measured & Indicated 13,224 0.014 183 South 0.004 $1,250

03 Inferred 1,748 0.013 24 Total 14,972 0.014 206 01 Measured 4,312 0.017 72 02 Indicated 12,313 0.012 149 Measured & Indicated 16,626 0.013 221 $1,350

03 Inferred 3,616 0.013 47 Total 20,242 0.013 268 01 Measured 4,408 0.017 73 02 Indicated 13,323 0.012 163 Measured & Indicated 17,731 0.013 236 $1,500

03 Inferred 4,785 0.013 63 Total 22,516 0.013 299 Source: SRK 2017

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15 Mineral Reserve Estimate The conversion of mineral resources to ore reserves required accumulative knowledge achieved through LG pit optimization, detailed pit design, and associated modifying parameters. Reserve estimation was achieved using Hexagon’s MineSight® software and applies to the full GRP Pan resource. Detailed access, haulage, and operational cost criteria were applied in this process for South Pan and satellite pits, and North Pan and satellites pits (Central Pan & Red Hill) independently. The Project was built in U.S. units and all metal grades are in oz/t.

The orientation, proximity to the topographic surface, and geological controls of the GRP Pan mineralization support mining of the ore reserves with open pit mining techniques. To calculate the mineable reserve, pits were designed following an optimized LG pit based on a US$1200/oz Au sales price. The quantities of material within the designed pits were calculated using a base CoG of 0.004 Au oz/t for the South Pit and satellite pits and 0.006 Au oz/t for the North Pit and satellite pits which is based on the static US$1,200/oz Au sales price observed at the time of this study.

15.1 Conversion Assumptions, Parameters and Methods Conversion of resources to reserves requires consideration of:

• The ore extraction method(s) used in relation to the ore body characteristics, which determine mining dilution and recovery; and • Project operating costs and resulting CoG’s.

In accordance with the CIM classification system only Measured and Indicated resource categories can be converted to reserves (through inclusion within the open-pit mining limits). In all Mineral Reserve statements, Inferred Mineral Resources are reported as waste. In some mineral resource statements, Inferred mineral resources are reported separately.

CoG is a function of technical and economical parameters and defines the economic portion of the resource at the time of determination. Break even CoG considers the total unit operating costs, including mining, processing and administration, process recovery, metal prices and additional costs for freight, smelting and/or refining. Where applicable, royalties are included in the calculation. A second CoG often used is the internal CoG that only considers any additional cost to mine ore beyond waste. This cut-off defines material that is uneconomic, but has a lower final cost to the Project if processed rather than wasted.

Once such a CoG is defined all the material with a gold grade above this value should be considered as ore, i.e. economically mineable. Ore feed to plant will have an average grade higher than the CoG value, and this difference provides the profit (return on capital) for the business.

The CoG may be modified to other values during the mining operations to optimize business profits. These operational CoG grades may accomplish different specific purposes.

15.1.1 Dilution Dilution was not accounted for because the material surrounding ore is a gradational low-grade halo, and the dilution near the CoG is relatively minor.

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15.1.2 Break Even Cut-off Grade The typical expression for a break-even (BE) gold CoG is:

BE CoG = Total Unit Ore Mining, Processing and Administration Operating Costs (Au Price – (Royalty + Final Sales Costs)) x Process Recovery

15.1.3 Internal Cut-off Grade An operational CoG, the internal CoG, takes into account all operating costs, but only includes the ore mining cost that exceeds the waste mining cost of that same block. This material is considered marginal once it has been mined (for example to access ore with grades above the BE CoG) the mining cost is considered to be a sunk cost. If the material can pay for downstream processing costs and other ore related costs, then it qualifies as ore. This can be adjusted to allow for differential ore and waste haulage, or other costs.

The typical expression for an internal gold CoG is:

Int. CoG = Total Unit (Ore – Waste) Mining, Processing and Administration Operating Costs (Au Price – (Royalty + Final Sales Costs)) x Process Recovery

The CoG used by SRK to determine whether a block was ore or waste was the internal cut-off reported as CoG of 0.004 Au oz/t for the South, South Satellite, and Central Pits, and 0.006 Au oz/t for the North and Red Hill Pits during the pit optimization process. To maintain consistency with what was used in the optimization, these CoGs were used as a basis to define ore and waste in the production schedule.

15.2 Reserve Estimate The Mineral Reserve Estimate for Pan is presented in Table 15-1.

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Table 15-1: Pan Project Mineral Reserve Estimate as of March 16, 2017 Ore Au Grade Au Metal Waste Strip Ratio Pit Classification kt (oz/t) (koz) kt (waste/ore) Proven 7,430 0.018 137 Total Probable 13,519 0.013 182 28,091 1.34 Proven and Probable 20,949 0.015 318 Proven 3,481 0.018 61 South Pan Probable 7,220 0.012 88 15,225 1.42 Proven and Probable 10,702 0.014 150 Proven 164 0.017 3 South Satellite Probable 324 0.013 4 859 1.76 Proven and Probable 488 0.014 7 Proven 3,112 0.018 55 North Pan Probable 5,742 0.015 84 10,061 1.14 Proven and Probable 8,854 0.016 139 Proven 411 0.033 14 Red Hill Probable 119 0.024 3 1,660 3.13 Proven and Probable 531 0.031 16 Proven 261 0.016 4 Central Pan Probable 113 0.016 2 285 0.76 Proven and Probable 374 0.016 6 Source: SRK, 2017 Reserves stated in the table above are contained within an engineered pit design following the US$1,200/oz Au sales price Lerchs-Grossman pit. Reserves for South Pan and South Satellite Pits are based upon a minimum 0.004 oz/t Au Internal CoG, using a US$1,200/oz-Au sales price and a Au Recovery of 85%, an Au Sales cost of US$3.48/oz, Ore and Waste Mining Cost = US$2.12/t, Processing and G&A Cost = US$3.80/t and a 4% NSR. Reserves for North Pan, Red Hill and Central Pan are based upon a minimum 0.006 oz/t Au Internal CoG, using a US$1,200/oz-Au sales price and a Au Recovery of 62%, an Au Sales cost of US$3.48/oz, Ore and Waste Mining Cost = US$2.12/t, Processing and G&A Cost = US$3.80/t and a 4% NSR. The effective date of the Mineral Reserve is March 16, 2017; Mineral Reserves stated above are contained within and are not additional to the Mineral Resource.

15.3 Relevant Factors SRK is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other issues that could materially affect the mineral reserves stated here. In the interim between the preparation of the Prefeasibility Study and the Feasibility Study, significant additional engineering and cost detail was incorporated into the Project, especially in the areas of processing, power supply and water supply.

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16 Mining Methods The Pan gold deposits contain mineralization at or near the surface that is suitable for open pit mining methods. Gold grade distribution and the results of preliminary mineral processing test work, as well as Pan Mine operating experience, indicate that Pan ore can be processed by conventional heap leaching methods. Due to the argillic alteration predominantly found in the southern pits, ore from the North and South will be blended to ensure permeability and heap stability. This blend will initially be 60% rock to 40% clay by weight, and will change as the heap leach height increases. The method of material transport evaluated for this study is open pit mining using CAT 992 loaders as the main loading units with 100-t rigid frame haul trucks.

16.1 Current or Proposed Mining Methods Currently, conventional open pit mining methods are implemented at Pan. A contract miner is conducting the mining activities. Ore and waste is drilled and blasted, then loaded into 100-t payload haul trucks with 14-15 LCY bucket capacity wheel loaders. The loading and haulage fleet is supported by track dozers, motor graders, and water trucks. Waste is hauled to waste rock storage facilities near each pit. Ore is currently hauled and placed directly on the heap leach pad. GRP proposes to install a crushing and agglomeration system with a radial stacker to place ore. When this system is in place, the contractor will haul the ore to stockpiles at the crushing facility. GRP will be responsible for loading and operating the crushing system.

GRP plans to use a mining contractor for all mining activities up to stockpiling ore at the crushing facility. GRP will own, operate, and maintain all other equipment on the site. The general site layout, including pits, waste dumps, crusher site, ponds, and heap leach pad, is shown in Figure 5-1.

Ore production is planned at a nominal rate of 10,000 t/d, equivalent to 3.6 Mt/y with a 6-year mine life. Mining is planned on a 7 day per week schedule on a single 12-hour shift per day, 355 days per annum. Peak ore and waste production is estimated at 30,200 t/d. The average LOM stripping ratio is 1.31:1 waste-to-ore, using a 0.004 oz/t internal cut-off for the South and Central pits and a 0.006 oz/t internal cut-off on the North pit. The change in CoG from one pit to the next is a result of the metallurgical recovery testing, which showed the South and Central pits have an expected average recovery of 85% with the more silicified North pit having an expected recovery of 62%.

16.2 Parameters Relevant to Mine or Pit Designs and Plans Metallurgical test work and operating experience has indicated that the South and Central Pit ores (argillic/clay ores) need to be blended with Silicified (rock) ore, primarily from the North Pan deposit, to achieve adequate permeability for ROM ores. Ore from the North and South will be blended for permeability and heap stability. This ratio will initially be 60% rock to 40% clay and will reduce as the heap leach pad is stacked higher. Test work also indicates that optimum gold recovery of the ores can be achieved after blending rock and clay ores with crushing and agglomeration using cement, due to the presence of clay minerals. At the time of this writing, approximately 4.2 Mt of ROM ore has been loaded onto the first lift of the Phase 1A leach pad and will continue to recover gold within the mine schedule. The contribution of metal from this ore has not been included in the cash flow supporting this report. The gold recovery curve has been scaled from the previous test work and current leach pad flow and recovery characteristics.

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The ore will be transported to a stockpile near the primary jaw crusher, which will be set up near the leach pad. A front-end loader will feed the primary jaw crusher, which will then convey the ore to the secondary crusher, crushed to P80 minus ¾ inch, and then to the heap leach pad. Waste material will be loaded into the 100-t haul trucks and hauled directly to the waste dumps.

16.2.1 Geotechnical Design - Pits Pit designs were based on geologic criteria provided in the April 2011 Pit Slope Evaluation report produced by Golder Associates. The limestone units were designed with a 70° face highwall angle, with three 20 ft high benches followed by a 30 ft catch bench, resulting in a 50° inter-ramp wall angle and assumes pre-split blasting. All other rock units are designed using a 63° face highwall angle, with three 20 ft high benches followed by a 30 ft catch bench, resulting in a 45° inter-ramp wall angle, again assuming pre-split blasting. Table 16-1 summarizes the criteria for the pit designs.

Table 16-1: Geotechnical Criteria for Mine Design Pit Design Criteria Limestone Units All Other Rock Units Inter-Ramp Angles 50° 45° Face Angles 70° 63° Catch Bench Berm 30 ft 30 ft Catch Bench Vertical Spacing 60 ft 60 ft Road Widths (Including Berm) 90 ft 90 ft Road Grade 10% 10% Road Widths Pit Bottom (Including Berm) 70 ft 70 ft Road Grade Pit Bottom 12% 12% Source: GRP, 2017

The resulting pits are very similar in size and location to the pits in the Golder report and have an overall slope less than those used in the Golder analysis.

16.2.2 Geotechnical Design – Waste Rock Disposal Areas Designed Waste Rock Disposal Areas (WRDA) are based on the current mine plan, which predicts approximately 28.1 Mt of waste rock. The waste rock will be placed in two WRDA at an overall reclaimed slope of 3H:1V (18.4°). Approximately 11.7 Mt will go to the North WRDA and approximately 16.4 Mt will go to the South WRDA. Both WRDA are located along the western perimeters of their respective pits, as shown in Figure 16-12. A summary of basic design parameters and dimensions for the proposed and completed WRDA is shown in Table 16-2.

Vegetation will be cleared from any additional required WRDA footprints; coarse woody debris and plant growth medium will be salvaged and placed in separate stockpiles. Coarse woody debris may be chipped and spread over reclaimed areas or added to growth media stockpiles. The final surfaces of the WRDA will be constructed by end dumping to create typical mining waste rock facilities. On sloped terrain, where safe and practicable, some weathered geologic materials below the plant growth medium may be pushed downhill to construct toe berms, to prevent rocks from scattering on the hillside below the toes of the WRDA.

Table 16-2: Design Criteria for Waste Rock Disposal Areas WRDA As-built slope (degrees) Height (ft) Footprint (acres) North & Central WRDA 18.4 240 85 South WRDA 18.4 260 92 Source: GRP, 2017

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16.2.3 Hydrological Based on existing data and the recent installation of three water supply wells, groundwater at the Project occurs in a deep carbonate aquifer and a shallow alluvial aquifer along the normally dry stream channel west of the mine area. Shallow alluvial groundwater west of the mine area occurs at elevations that are approximately 500 ft higher than the deep carbonate aquifer. The deep carbonate aquifer is approximately 650 to 800 ft below the heap leach facility and approximately 600 ft below the bottom of the south pit. The rock mass in the current mine plan is above the carbonate aquifer water table, and groundwater is not a factor in mine design.

16.3 Pit Optimization Pit optimization was completed using Hexagon’s MineSight Economic Planner (MSEP) pit optimization software. Pit optimization is based on preliminary economic estimations of mining, processing and selling related costs, slope angles, and metal recoveries. These pit optimization factors differ from those reported in the final economic analysis, which is based on the pit design criteria and production schedule that follows the optimization work. The pit optimization software considered grades and tonnages in the model along with prices, recovery factors and mining, processing, and administrative costs to determine what material could be economically extracted through the use of the LG algorithm.

16.3.1 Mineral Resource Models Only Measured and Indicated resources were considered in the evaluation; Inferred resources were treated as waste.

16.3.2 Topographic Data Base topographic data is from an aerial survey completed in July 2010 by Aerotech Mapping of Reno, Nevada. Subsequently, the dataset has been updated with surveys from construction, and end of month surveys for the pit, leach pad, and dumps. The latest topography for the site is the end of year topography for 2016.

16.3.3 Optimization Parameters and Constraints Geotechnical slope parameters were determined by the rock units according to values in Table 16-1, and were incorporated into LG runs. Dilution was not accounted for in the optimization, because the material surrounding ore is assumed to be a gradational low-grade halo, and the dilution near the CoG is relatively minor.

Royalties A royalty of 4% was applied to the Net Smelter Return.

Mining Costs Operating costs were based upon the current mine contractor’s Time and Materials (T&M) agreement and adjusted for the future haul profiles.

Mining costs were estimated to be US$2.12 per ton of material moved for the pit optimization.

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Processing Costs and Recoveries Processing costs for the Pan area deposits, which includes North Pan, Central Pan, Red Hill, South Pan, and South Satellite pits, have been calculated at US$2.40 per ore ton for crushed and agglomerated ore, and US$1.50 per ore ton for ROM ore. This estimate assumes primary and secondary crushing with addition of cement with belt agglomeration. This processing cost includes ADR and leaching costs. Recovery factors of 62% and 85% for North Pan and South Pan, respectively, were used in the optimization runs.

Other Costs General and administration costs were estimated at US$0.80 per ore ton from the current staff levels planned.

The pit optimization parameters are summarized in Table 16-3.

Table 16-3: Pit Optimization Parameters South Pan & Satellite South Pits Item Cost/Rate Units (US$) Mining Cost $2.12 US$ per Total ton Processing Cost $3.00 US$ per Ore ton G&A Cost $0.80 US$ per Ore ton Process Recovery 85% Slope Angle Variable Varies by Rock Units North Pan, Central Pan & Red Hill Pits Item Cost/Rate Units Mining Cost $2.12 US$ per Total ton Processing Cost $3.00 US$ per Ore ton G&A Cost $0.80 US$ per Ore ton Process Recovery 62% Slope Angle Variable Varies by Rock Units Source: GRP, 2017

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16.3.4 Optimization Results Table 16-4 provides the material quantities within the US$1,200 Au sales price Ultimate LG pit.

Table 16-4: Ultimate LG Pit Material Quantities, US$1,200 Gold Sale Price Ore Au Grade Au Metal Waste Strip Ratio Pit Classification kt (oz/t) (koz) kt (waste/ore) Proven 8,273 0.018 150.2 Total Probable 15,391 0.014 210.8 23,961 1.01 Proven and Probable 23,664 0.015 361.1 Proven 3,672 0.017 63.9 South Pan Probable 8,059 0.012 99.9 13,788 1.18 0.004 CoG Proven and Probable 11,731 163.8 Proven 254 0.016 4.0 South Satellite Probable 471 0.013 5.9 1,119 1.54 0.004 CoG Proven and Probable 725 0.014 9.9 Proven 3,210 0.017 55.5 North Pan Probable 5,874 0.015 86.9 6,543 0.72 0.006 CoG Proven and Probable 9,084 0.016 142.5 Proven 451 0.032 14.3 Red Hill Probable 164 0.023 3.7 1,184 1.93 0.006 CoG Proven and Probable 615 0.029 17.9 Proven 686 0.018 12.6 Central Pan Probable 823 0.018 14.4 1,327 0.88 0.006 CoG Proven and Probable 1,509 0.018 27.0 Source: GRP, 2017

During the optimization, a series of LG pits were generated from US$400/oz to US$1,250/oz gold prices. As the gold price increases the pits grow larger in size and the ore and waste tonnages both increase. In Figure 16-1, a graph is presented showing the tonnages and net revenue using a constant US$1,200/oz gold price against each pit. The ore tonnages peak near the US$1,200 gold price.

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Figure 16-1: LG Pit Tonnages and Net Revenue by Gold Price

The ultimate LG pit configuration is shown in Figure 16-2.

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Figure 16-2: US$1,200 Au Sales Price Ultimate LG Pit

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16.4 Design Criteria Haul roads and catch benches for North, Central, and South pits were designed in the optimized pit surfaces based on Golder’s report. Haul roads are designed at a width of 90 ft and a maximum gradient of 10% to provide safe two-way haulage traffic when a berm is added. In some cases, the lowermost benches had the road grade increased to 12% and the haul road width narrowed to 70 ft to minimize excessive waste stripping. Pan’s pit design criteria are presented in Table 16-5.

Table 16-5: Pit Design Criteria Pit Design Criteria Limestone Units All Other Rock Units Inter-Ramp Angles 50° 45° Face Angles 70° 63° Catch Bench Berm 30 ft 30 ft Catch Bench Vertical Spacing 60 ft 60 ft Road Widths 90 ft 90 ft Road Grade 10% 10% Road Widths Pit Bottom 70 ft 70 ft Road Grade Pit Bottom 12% 12% Source: GRP, 2017

A series of pit shells were generated on the South and North resource blocks based on profit factors, which calculate the profit of each block within the resource model based on the revenue minus operating costs using MSEP. A gold price of US$1,200 per oz was used to generate the optimized pit shells. Eight pit shells were generated on the North and eight for the South resource areas separately. The series of pit optimizations were evaluated and graphed to select appropriate economic phases. Both final Phase 2 pits for the North and South pits were based on the maximum value US$1,200 per oz pit shells.

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Table 16-6: Reserves by Pit Phase Pit Classification Ore Au Grade Au Metal Waste Strip Ratio kt (oz/t) (koz) kt (waste/ore) Total Proven 7,430 0.018 137 Probable 13,519 0.013 182 28,091 1.34 Proven and Probable 20,949 0.015 318 South Phase 1 Proven 1,639 0.0172 28 Probable 1,334 0.0122 16 2,259 0.76 Proven and Probable 2,973 0.0150 45 South Phase 2 Proven 1,842 0.0180 33 Probable 5,887 0.0122 72 12,966 1.68 Proven and Probable 7,729 0.0136 105 South Satellite Proven 164 0.017 3 Probable 324 0.013 4 859 1.76 Proven and Probable 488 0.014 7 North Phase 1 Proven 1,438 0.0179 24 Probable 1,640 0.0151 22 2,168 0.70 Proven and Probable 3,078 0.0159 46 North Phase 2 Proven 1,674 0.018 30 Probable 4,102 0.015 63 7,893 1.37 Proven and Probable 5,776 0.016 93 Red Hill Proven 411 0.033 14 Probable 119 0.024 3 1,660 3.13 Proven and Probable 531 0.031 16 Source: GRP, 2017

Figures 16-3 and 16-4 show the phase designs for the South Area pits. North and Central Area pits are shown on Figures 16-5 and 16-6. Cross-sections of the North and South pits are shown on Figures 16-7 and 16-8 respectively.

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Figure 16-3: South Pit Phase 1 Design

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Figure 16-4: South Pit and Satellite Pit Final Design

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Figure 16-5: North Pit Phase 1 Design

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Figure 16-6: North Pit, Red Hill and Central Pit Final Design

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Figure 16-7: North Pit Cross-Section

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Figure 16-8: South Pit Cross-Section

16.5 Mining Losses Mining Losses are the changes in material quantities from the LG guide pit to a designed pit. The differences between the LG cones and the pit designs were related to the small pit areas and the narrow, steeply dipping ore zones, which the LG will mine, but cannot be accessed after roads and ramps are included in the design pit. Designing a pit with access can deviate greatly from the LG cone. The narrow deposit made ramp access difficult to get to the bottom of the LG pit.

It is recommended that additional work be completed to improve the designs to potentially add ore tons and reduce the waste.

Table 16-7 shows the percentage mining losses for each mining area after the inclusion of in-pit ramps, and minimum mining widths. A negative value indicates a lower value in the design pit than the guide LG.

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Table 16-7: Mining Losses Source Pit Cut-off Ore Contained Au Waste (kt) Grade (oz/t) Metal (koz) (kt) Total Variable 23,664 0.015 361 23,961 South Pan 0.004 11,731 0.014 164 13,788 South Satellite 0.004 725 0.014 9.9 1,119 LG Pit North Pan 0.006 9,084 0.016 143 6,543 Red Hill 0.006 615 0.029 17.9 1,184 Central Pan 0.006 1,509 0.018 27 1,327 Total Variable 20,949 0.015 318 28,091 South Pan 0.004 10,702 0.014 150 15,225 South Satellite 0.004 488 0.014 7 859 Designed Pit North Pan 0.006 8,854 0.016 139 10,061 Red Hill 0.006 531 0.031 16 1,660 Central Pan 0.006 374 0.016 6 285 Total Variable -2,715 0.000 -43 4,130 South Pan 0.004 -1,029 0.000 -14 1,437 Difference South Satellite 0.004 -237 0.000 -3 -260 (Design - LG) North Pan 0.006 -230 0.000 -4 3,518 Red Hill 0.006 -84 0.002 -2 476 Central Pan 0.006 -1,135 -0.002 -21 -1,042 Total Variable -11.5% 0.0% -11.9% 17.2% South Pan 0.004 -8.8% 0.3% -8.4% 10.4% % Difference South Satellite 0.004 -32.7% 0.0% -29.3% -23.2% (Design - LG)/LG North Pan 0.006 -2.5% 0.0% -2.5% 53.8% Red Hill 0.006 -13.7% 6.9% -10.6% 40.2% Central Pan 0.006 -75.2% -11.1% -77.8% -78.5% Source: GRP, 2017

16.6 Mine Production Schedule The mine plan begins in January 2017 with mining in both the North and South Pan pits to facilitate blending of rock and clay ores to achieve adequate heap stability and permeability. Mining continues with ore and waste from both the North and South for the blending of ore types until both pits are completed.

16.6.1 Mine Production The yearly mine production schedule is presented in Table 16-8, beginning in January 2017 and ending in early 2022 for a total 6 years. The schedule below was completed monthly for 18 months, from January 2017 through the June 2018, quarterly for 18 months (Q3 2018 through Q4 2019) and annually for years 2020 to 2023, then it was summarized on an annual basis. The production schedule is driven by the nominal rate of 10,000 t/d (3.6 Mt/y). Peak ore and waste production is 30,200 t/d and occurs in 2019.

Scheduling was carried out using the reserve output by bench from each phase of mining for each open pit. MineSight Interactive Planner was used targeting 3.6 Mt/y and a maximum of one bench per month. The number of haulage trucks and loaders needed from the centroid of the top, middle of bottom of each pit phase to the waste dumps and processing facility were checked to ensure that the contractor’s equipment list was sufficient to meet the planned production rate.

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Table 16-8: Annual Production Schedule

Production Schedule 2017 2018 2019 2020 2021 2022 2023 Total Total Production Units Ore Tons (000’s) 2,973 3,842 3,474 3,512 3,554 2,928 666 20,949 Au oz/t 0.014 0.017 0.015 0.014 0.015 0.016 0.014 0.015 Au Oz (000’s) 40.6 63.9 53.2 50.4 53.8 46.5 9.6 318.1 Waste Tons (000’s) 2,792 4,846 6,971 6,196 3,888 3,132 266 28,091 Total Tons (000’s) 5,765 8,688 10,446 9,707 7,442 6,060 932 49,039 Strip Ratio 0.94 1.26 2.01 1.76 1.09 1.07 0.40 1.34 Recoverable Oz. Oz (000’s) 29.0 44.5 38.1 36.4 41.4 36.8 7.1 233.3 Source: GRP, 2017

16.6.2 Pit Schedule Sequence The mining schedule begins in January 2017, with mining starting from the North and South Pan open pits as ROM ore, to the second lift of the Phase 1 leach pad. ROM ore will be mined until the end of the Q4 2017. Mining into the Q1 of 2018 will be a blend of crushed ore from both the North and South Pan area to Phase 2 of the leach pad.

Mining continues with a nominal 60% rock: 40% clay ore ratio for 2017, 2018 and 2019. From 2020 onward, the ratio of North Pit ore decreases as the heap height increases and the need for the higher ratio blend decreases with the weight above the material being placed.

The production schedule by pit is presented in Table 16-9. Charts of gold ounces to the leach pad, ore and waste production, and ore production by pit, by year, are shown in Figure 16-9 through Figure 16-11, respectively. The end of year mine layouts are shown in Figure 16-12 through Figure 16-20.

Table 16-9: Production Schedule by Pit Production Schedule 2017 2018 2019 2020 2021 2022 2023 Total

Units

North Area Production Ore Tons (000’s) 1,770 2,398 2,053 1,587 993 699 258 9,759

Au oz/t 0.014 0.018 0.015 0.018 0.019 0.017 0.017 0.017

Au Oz (000’s) 24.2 42.8 31.2 28.1 18.9 11.9 4.4 161.4 Waste Tons (000’s) 1,705 3,520 3,535 2,330 649 249 19 12,006 Total Tons (000’s) 3,474 5,919 5,587 3,917 1,643 948 277 21,765

Strip Ratio 0.96 1.47 1.72 1.47 0.65 0.36 0.07 1.23

South Area Production Ore Tons (000’s) 1,203 1,444 1,422 1,925 2,560 2,228 408 11,190

Au oz/t 0.014 0.015 0.015 0.012 0.014 0.016 0.013 0.014

Au Oz (000’s) 16.5 21.2 22.0 22.4 34.9 34.6 5.2 156.7 Waste Tons (000’s) 1,087 1,326 3,437 3,866 3,239 2,883 247 16,084 Total Tons (000’s) 2,290 2,769 4,858 5,791 5,799 5,112 655 27,274

Strip Ratio 0.90 0.92 2.42 2.01 1.26 1.29 0.61 1.44 Source: GRP, 2017

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Figure 16-9: Gold Ounces to Leach Pad by Mining Year

Figure 16-10: Ore and Waste Production by Mining Year

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Figure 16-11: Ore Production by Pit and Year

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Figure 16-12: Starting Topography with Facilities Boundaries

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Figure 16-13: End of 2017

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Figure 16-14: End of 2018

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Figure 16-15: End of 2019

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Figure 16-16: End of 2020

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Figure 16-17: End of 2021

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Figure 16-18: End of 2022

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Figure 16-19: End of 2023

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Figure 16-20: Post-Reclamation Topography

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16.7 Waste and Stockpile Design Waste Rock Storage Facility The waste dumps were designed to represent typical haul and end dump facilities. The maximum slope angle of the reclaimed waste dumps is limited to 3H:1V. The South Pan waste dump is designed with a capacity of 16.4 Mt and has additional space for expansion of the South pit in the future. The North and Central Pan waste dump has a design capacity of 11.7 Mt with extra space available for additional waste tons.

The North Pan waste dump will be covered with a vegetated soil cover to minimize the long-term potential for metals leaching. A 12-inch thick growth media cover will be placed over the dump.

The final configurations of the North Pan and South Pan waste dumps are shown in Figure 16-21 and Figure 16-22.

Ore Stockpiles Ore stockpiles will be small and will not be part of the mine plan until early in 2018. Ore stockpiles will be placed at the crusher to feed the crushing system. The stockpiles will contain approximately 10,000 to 15,000 t for blending of the rock and clay ores into the crusher.

Figure 16-21: North Pan Final WRDA

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Figure 16-22: South Pan Final WRDA

16.8 Mining Fleet and Requirements

16.8.1 General Requirements and Fleet Selection All mine production equipment is provided by the mining contractor. Equipment on site includes CAT 992G/K loaders and CAT 777 off highway haul trucks. The contractor utilizes two Atlas Copco DM45 drills for blasthole drilling. Table 16-10 lists the ultimate mining fleet equipment. Presently, there are six haul trucks at the mine, two more will be needed in 2017, and another two will be needed in 2018. GRP is responsible for supplying fuel to the mining contractor.

Table 16-10: Mine Production Equipment Category Make Model Number of Units Truck CAT 777F 10 Water Truck CAT 773F 1 Water Truck CAT 777D 1 Grader CAT 14M 1 Front End Loader CAT 992K or G 3 Dozer CAT D10T 3 Dozer CAT D6 1 Blasthole Drill Atlas Copco DM45 2 Source: GRP, 2017

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16.8.2 Drilling and Blasting Production drilling is covered in the mine contract, while a separate blasting sub-contract under the contract miner is in place at Pan. GRP is responsible for ammonium nitrate and fuel oil (ANFO) as it applies for blasting agents. The design parameter used to define drill and blast requirements are based on a 6.75” blasthole on a 14’ by 16’ pattern in the ore zones and a 15’ by 17’ pattern in the waste zones. Benches are blasted and mined on 20’ levels with 3’ of sub-drill. Buffer rows and pre-shear are planned to allow for controlled blasting and minimize damage to the highwalls and the powder factor for the blasting is 0.50 lb/t for both ore and waste.

16.8.3 Loading and Hauling The main loading units at Pan are CAT 992K front end loaders. Cat 777G haul trucks with 100-t capacity are the main hauling units; the loaders will require 4 to 5 passes to load the trucks. A haulage study was completed to ensure that the mining fleet was sufficient to meet production targets in the mine schedule. Equipment listed in Table 16-10 appears reasonable for an operation of this size and scale.

16.8.4 Support and Auxiliary Equipment Support equipment will consist of three CAT D10 track dozers as the main dozing units and one CAT D6 utilized for the leach pad. One CAT road grader will service the access road, haul roads, and leach pad along with two CAT water trucks. Mobile light plants will be utilized for lighting the working areas during production in low light conditions. A maintenance service truck supplied by the contractor will be used for field maintenance.

16.8.5 Manpower Mining personnel will be supplied by a mining contractor, which will also be responsible for management of the mining crews. GRP technical and mine supervision personnel will direct the mining contractor. The contractor will have one project manager, two shift supervisors, and one maintenance supervisor on site. The contractor will be required to add personnel over time as the truck fleet increases.

GRP will have shift supervisors to supervise the contractor and manage mining. GRP will provide technical staff for mine planning, surveying, and ore control. Required personnel are summarized in Table 16-11.

Table 16-11: Personnel Requirements Supervisory and Technical Operators Maintenance Contractor 4 20-30 Variable, with vendor support GRP 6 0 0 Source: GRP, 2017

16.8.6 Ore Control GRP currently implements a blasthole sampling system for ore control. Blasthole cuttings piles are cut using a narrow shovel and then cut orthogonally to the drillhole to obtain a representative sample. The sample bags are tagged with a number. The drillhole is then staked and tagged with the same number

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as the sample. Samples are then delivered to the on-site laboratory for cyanide solution and fire assay analysis.

Prior to blasting the drillholes locations are surveyed and the cuttings logged for lithology and alteration type determination. This information is then used to develop a geologic map of the blast pattern. This geologic mapping on each blast and bench, with the assay results, are used to design ore blocks. Ore blocks are staked after blasting with lath and pin flags to guide mining. Movement due to blasting is accounted for in the field staking. GRP geologists monitor mining to maintain ore and waste control for proper material routing.

16.9 Mine Dewatering

16.9.1 Water Data Sources Groundwater monitoring and water supply wells have been installed recently at the Project. Several historical wells in the Project vicinity have also provided groundwater data. There are no springs or bodies of surface water in the Project area.

16.9.2 Surface Water Surface water from precipitation will be diverted from the open pits by using berms and ditches, which places the water in sediment basis for evaporation, infiltration or over flow.

Best management practices (BMP) are being used to limit erosion and reduce sediment in precipitation runoff from mining facilities and disturbed areas during construction, operations, and initial stages of reclamation. BMP utilized during construction and operations are designed to minimize erosion and control sediment runoff. These BMP include:

• Surface stabilization measures – dust control, mulching, riprap, temporary gravel construction access, temporary and permanent revegetation/reclamation, and placing plant growth media; • Runoff control and conveyance measures – hardened channels, runoff diversions; and, • Sediment traps and barriers – check dams, grade stabilization structures, sediment detention basins, sediment/silt fence and straw bale barriers, and sediment traps.

Revegetation of disturbed areas will reduce the potential for wind and water erosion. Following construction activities, areas such as cut-and-fill embankments and plant growth media/cover stockpiles are being seeded as soon as practicable and safe. Concurrent reclamation is maximized to the extent practicable to accelerate revegetation of disturbed areas. Sediment and erosion control measures will be inspected periodically, and repairs performed as needed.

16.9.3 Groundwater Groundwater is in a carbonate aquifer that is approximately 600 ft below the bottom of the pit. This will not impact the pit highwalls or operations.

16.9.4 Dewatering System A dewatering system is not necessary for the current mine plan.

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17 Recovery Methods 17.1 Operation Results The initial operation of the heap leach with South Pan ore encountered permeability problems due to the placement methodology of clayey material. The combination of ore placement in lifts as high as 50 ft, truck end dumping ore over the dump face leading to high segregation of coarse and fines as well as excessive equipment compaction on the dump surface all contributed to early permeability issues with the high clay content ROM ores. Leach solution applications much above 0.001gpm/sqft resulted in excessive ponding. These areas had to be shut down to remain in compliance with environmental permits and regulations. To improve permeability and gold recovery the first lift of ore placed on the leach pad was partially “capped and fluffed”. This process involved placing a 3 to 5 ft lift of rocky material on top of the existing ore and blending that material in with the original high clay content ore to a depth of approximately 15 ft with an excavator. This was then triple ripped to a depth of 7 to 8 ft and leached again. Solution application rates of 0.004 gpm/ft2 were achieved and maintained to improve the rate of gold recovery. The previous owners completed capping and fluffing of approximately 60% of the ore stacked on the first lift. When GRP acquired the assets the capping and fluffing work continued for the remaining 40% of the first lift material until sufficient area was created to begin mining and blending ores placed on a second lift. Laboratory testing showed that a 60% rock and 40% clay blend would achieve adequate permeability for primary leaching and to sustain flows when up to 160ft of additional ore is stacked on top of the lift. Lower rock/clay ratios achieved acceptable permeability as the heap height increased and ore stacking on top of the blended material decreases.

GRP has also improved the ROM ore stacking methodology to minimize equipment compaction, ensuring blending of rock and clay. The process starts with the geologic model which now identifies the rock types so the mine plan can better anticipate rock and clay quantities for blending purposes. Additionally, an ore control geologist maps the blasthole drill cuttings and ore faces to ensure proper rock and clay ore identification prior to loading and hauling to the leach pad. The mine department allocates trucks to loaders to achieve the proper blending ratio as they dump ore on the leach pad.

All material is placed on the leach pad in approximately 22.5 ft lifts with trucks dumping on top. Rock and clay material is blended with a dozer that pushes all material over the dump face. The leach cell, approximately 200ft x250ft, is stacked at 22.5ft for roughly 2/3 of the capacity. Once this is complete, a dozer cuts the lift height down to 15ft by ripping and pushing the top compacted 7.5ft of material into the remaining 1/3 of the cell, as illustrated in Figure 17-1. The top surface is then triple ripped with dozers to a depth of 7ft before being placed under leach. As of the date of issuance of this report approximately 750,000 t of ore has been placed using this methodology with solution application rates at or above 0.004 gpm/ft2.

GRP intends to continue placing ROM ore in this manner until the crushing and stacking system is installed in Q1 2018.

Metallurgical testing shows improved recovery as a result of crushing material by anywhere from 10 to 20% over ROM. Therefore, GRP management intends to install a primary crusher, screen, secondary crusher and conveyors and stacker for loading the leach pad and to process fresh ore which is being mined from the South Pan and North Pan areas.

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The future process is designed for a throughput of 10,000 t/d of ore, or 3.6 Mt/y of ore. The ADR plant is designed for a solution flow rate of up to 5,000 gpm, and is expected to produce approximately 40,000 oz/y of gold.

Source: GRP, 2017 Figure 17-1: Leach Pad Dozer Cut/ Fill for Panel

17.2 Processing Methods Material from the South Pan and North Pan pits will be processed using conventional heap leaching methods. Ore was first mined and processed from the South Pan pit as ROM material. The placement methodology resulted in plugging the low permeability, high clay content ore on the heaps. Hence GRP decided to blend the rock ore (primarily North Pan) with the clay ore (Primarily South Pan) to improve the permeability of the heaps when the project was acquired. Currently ROM North Pan ore is being blended with ROM South Pan ore on the heap and placed on the Phase 1 leach pad until the permanent primary crushing plant is purchased and installed.

The pregnant solution reports to the pregnant collection pond and is subsequently treated in a conventional ADR plant.

17.3 Flowsheet The process flowsheet, including the planned crushing circuit, is shown in Figure 17-2. Rock and clay ores will be mined concurrently from both North and South Pan pits and trucked to the crushing facility and stacked on stockpiles segregating the rock and clay ores. The ores will be picked up from each pile in the right proportion with a loader and dumped into a hopper feeding the primary crusher. The product will be crushed to nominal ¾ inch in the secondary crusher before being stacked on the heap using a conveyor system. Approximately 2 lb/t of cement would be added to the ore on the conveyor. Agglomeration will take place through the cascading action of material at the belt transfer points between the crusher and the radial stacker. The ore will be stacked 15 to 30 ft lifts with the stacker.

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The existing pregnant and barren solution ponds constitute a solution management system that will accommodate all process solutions including meteoric waters that enter the system as a result of the 25-year, 24-hour storm event. Barren solution is pumped from the barren pond via submersible and booster pumps to the top of the ore on the heap leach pad and the ore irrigated using drip tube emitters. Cyanide levels are monitored and controlled with cyanide addition to the barren line as it pumps solution to the pad. Pregnant solutions report to the pregnant collection pond, and are subsequently treated in the existing conventional ADR plant.

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Figure 17-2: Mining and Processing Flowsheet for Pan Mine

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17.4 Plant Design and Equipment Characteristics

17.4.1 Crushing and Conveying A crushing and conveying circuit will be added in the Q1 of 2018 to improve gold recovery. The ore from the North Pan pit requires crushing to meet optimal recovery in a heap leach. In addition, the South Pan pit contains a sufficient amount of clay fines to require agglomeration. Blending the ores has proven to improve permeability and leach pad stability. Mined ore will be stockpiled at the crusher based on the clay content. A loader at the crusher will feed rock and clay ore at a prescribed ratio, initial 60% rock and 40% clay. This ratio may change, depending on the stacking height. Ore will be crushed to approximately -3.25 inches at the jaw crusher. All ore will be screened and oversize will be run through a cone crusher to make a nominal -3/4-inch product. Ore from the cone crusher will be added to the screen undersize material. Cement will be added to the recombined material and transported to the leach pad via grasshopper conveyors and stackers. Passive agglomeration will occur at the transfer points. The agglomerated ore will be mechanically stacked on the heap with a conveyor and stacking system in 15 to 30 ft lifts.

Agglomerating the ore will ensure heap leach solution permeability throughout the life of the heap. Compacted permeability tests will be required to assure that heap leach solution percolation can be maintained up to an ultimate heap height of 160 ft for all ore blends when sufficiently agglomerated. Initial cement dosage is planned at 2 lb cement/t ore. However, monitoring the cement dosage and agglomerate stability through the life of the Project will be required to ensure proper heap stability and adequate solution percolation to maintain gold recovery.

Stacking will begin at the down gradient toe of the leach pad over the full width of each phase of the pad and advance in successive lifts up gradient. The remainder of the leach pad will be stacked with a radial stacker in lifts built parallel to the toe of the pad. As multiple lifts are placed, the edges of the heap may be concurrently reclaimed to a 3:1 slope. This will reduce closure costs and facilitate safer and easier leaching of the slopes.

Table 17-1 provides the key screening, agglomerating and stacking process design parameters, and Figure 17-3 shows a process flow diagram of the of the crushing system.

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Table 17-1: Crushing and Stacking Design Parameters Design Parameter Required Value General Crushing/Agglomeration Throughput 10,000 standard t/d General Conveying Throughput 17,000 t/d Loader Feed 550 standard tons per hour (t/h) Availability 80%, 20 hours per day All equipment shall be trailer mounted < 3-1/2" undersize – 315 t/h, > 3-1/2" Vibrating Grizzly Feeder, 51" wide x24" long oversize – 235 t/h Jaw Crusher, 36 x 50 w/ dust collection baghouse 235 t/h, P65 3-1/2" < 3/4" undersize – 185 t/h, >3/4" Oversize – Triple Deck Screen, 7' x 20' long w/ dust collection baghouse 365 t/h Cone Crusher K500, 60" head, w/ dust collection baghouse 365 t/h, P80 3/4" Portable Horizontal Cement Silo, 1,200CF/57T capacity 0.55 t/h Agglomeration/Dust Control water, 6% 33 t/h Ramp Conveyors, 36" x 125', 35' lift, 4ea 750 t/h Jump Conveyors, 36" x 125', 10' lift, 20ea 750 t/h HIC Feed Conveyor, 36" x 70', 20' lift, 1ea 750 t/h Horizontal Indexing Conveyor, 36" x 125', 1ea 750 t/h Telestacking Conveyor, 36"x158", 1ea 750 t/h

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Source: GRP, 2017 Figure 17-3: Crushing System Process Flow Diagram

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17.4.2 Leach Pad The originally-permitted design for three phases of HLP construction was presented in Volume 4: Engineering Design Report (EDR), included with the Water Pollution Control Permit Application for the Pan Project (Midway, 2012, transferred to GRP August 18, 2016 (NDEP, 2016)). The original leach pad layout was previously approved via issuance of Water Pollution Control Permit (WPCP) NEV20120107 on March 20, 2013.

Key heap leach process design parameters are provided in Table 17-2.

Table 17-2: Summary of Heap Leach Design Parameters Design Parameter Required Value Ore stacking rate 17,000 t/d Dry ore unit weight 100 lb/ft2 (average under load) Ore lift height 15 to 25 ft Solution application rate 0.004 gpm/ft2 Ore leach cycle 90 days Ore leach area 1,250,000 ft2 Total application flow rate to pad 5,000 gpm HLP overall slope 3H:1V HLP maximum height 160 ft Source: SRK, 2016

The size of the Phase 1A HLP initially constructed was reduced to about 2/3 of the original footprint to reduce initial construction costs. This HLP size reduction was approved by Nevada Division of Environmental Protection – Bureau of Mining Regulation and Reclamation (NDEP-BMRR) via email correspondence on May 16, 2013, and the initially constructed portion was renamed by NDEP as “Phase 1A” and the remaining portion of Phase 1 to the east was to be referred to as “Phase 1B”.

Phase 1A construction was completed in 2014 and the Phase 1A pad was loaded with ore in late 2014 and early 2015. In March 2015, an EDC was submitted to NDEP-BMRR to construct “Phase IIA” of the HLP. The current permitted design for Phase IIA construction was approved by NDEP-BMRR in correspondence dated May 12, 2015.

The leach pad and process facilities extend from an elevation of 6,400 ft amsl at the toe of the process ponds to an elevation of 6,700 ft amsl at the edge of the leach pad perimeter road. In total, the originally permitted Stage I HLP will have a total lined area of 9.2 M ft2, or approximately 211 acres. The Stage I heap leach pad layout is shown in Figure 17-4.

The leach pad design through Phase IIA provides a total ore capacity of approximately 15.5 M cubic yards, or 20.9 Mt using an average dry density of 100 lb/ft3 (1.35 t/yd3) for stacked ore. The entire Stage I permitted area or approximately 9.2 M ft2 has a capacity of approximately 77 Mt of ore (average density of 100 lb/ft3) with a maximum heap height of 160 ft.

The final reclaimed surface of the leach pad will be graded to an 8% top slope with 3H:1V (horizontal to vertical) side slopes and will be covered with 2.5 ft of growth media. The heap leach pad as reclaimed is shown in plan and in cross-section in Figure 17-5.

Prior to development, the footprint of each facility will be cleared and grubbed of existing vegetation and topsoil. Cut-to-fill regrading will be utilized where possible to minimize earthworks requirements.

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Excess soil removed from the base of each phase will be stockpiled for later use as growth media to provide for the over to be placed over the finished leach pad at the end of the Project.

The leach pad liner system will be a compacted 12-inch-thick low-permeability subgrade layer (underliner) overlain by a single geosynthetic liner. The primary geosynthetic liner will be a smooth 80-mil high-density polyethylene (HDPE) geomembrane liner. The subgrade layer will consist of 12 inches of either locally imported low-permeability soil or an admixture of bentonite and locally imported soil to achieve a hydraulic conductivity of 1x10-6 centimeters per second (cm/sec) or less.

The solution channel, Pregnant Pond and Barren Pond have been constructed with a double synthetic liner system consisting an 80-mil HDPE primary liner and a 60-mil HDPE secondary liner. The secondary liner consists of Agru Drain Liner which has protrusions that provide a drainage layer between primary and secondary liners. Each pond liner system is equipped with a leak collection and recovery system (LCRS).

The pregnant solution collected at the base of the heap via the overliner solution recovery system will be routed to Pregnant Pond via a 24-inch solid-wall HDPE conveyance pipe installed in the lined solution channel.

A seismic hazard analysis was performed for the heap leach pad design using the Probabilistic Seismic Hazard Analysis (PSHA) method. Stability analyses were performed on critical slope surfaces using the computer program SLIDE (Version 5.026). For all analyses, the factors of safety (FoS) under static and pseudostatic conditions are higher than the required minimum FoS of 1.3 and 1.05 (NDEP, 1994). The proposed heap leach pad configuration will be stable under both static and pseudostatic conditions for both the initial lift and final ore grading configurations.

During operations, stormwater runoff from the heap will be captured by the solution collection system, channeled to the process ponds, and incorporated in the process circuit. The designs of the Process Solution and Event Ponds provide for storage of a 12-hour operating volume, the volume of the 100- year, 24-hour storm event falling on the pad and ponds, and dead storage to allow for pump operation. Following closure, stormwater runoff from the covered and reclaimed heap surface will be collected by a trapezoidal channel constructed on the interior side of the perimeter access road, which will route flows to the northeast and southeast corners of the heap and discharge them into adjacent natural drainages.

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Source: SRK, 2017 Figure 17-4: Heap Leach Pad Site Layout

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Source: SRK, 2017 Figure 17-5: Heap Leach Pad Post-Reclamation

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17.4.3 Recovery Plant A carbon ADR circuit is used at the Pan Mine to recover the gold from the PLS. The ADR plant recovers and converts the gold to marketable doré bars. The Pan ADR plant was completed in 2015 and is currently in use. Photographs of the ADR plant exterior and interior are shown in Figure 17-6 and Figure 17-7.

Figure 17-6: Pan ADR Plant and Refinery

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Figure 17-7: Interior of ADR Plant

Due to the mercury levels found in the ore, the ADR plant is provided with all of the mercury recovery and controls as currently required by the State of Nevada.

The high-grade pregnant solution contains a maximum gold metal concentration of 0.004 oz/t of solution. The pregnant solution is pumped from the Pregnant Pond to the ADR plant for recovery of the gold from the solution. The PLS flow rate is 3,000 gpm. The carbon adsorption, stripping, and acid washing vessels process 2.0 t of carbon per vessel.

Adsorption of the gold onto activated granular coconut carbon is conducted in a six-stage carbon column circuit. Carbon is advanced through each of the six 4.0 t carbon adsorption columns and contacted with the pregnant solution to maximize the carbon loading; 35 oz Au+Ag per t of carbon. With the gold removed from solution, the now barren solution is pumped back to the heap at 3,000 gpm.

The loaded carbon is transferred from the last adsorption column to an acid wash vessel and rinsed with a weak acid solution to remove calcium carbonate scale. The carbon is then transferred to a 2.0 t stripping vessel to begin the elution process. Elution is conducted at 100 psi and 250°F. Sodium hydroxide will be added to the stripping solution to aid stripping and provide electrolyte for the subsequent electrowinning stage.

At the end of the elution cycle, the stripped carbon is transferred to a kiln where the carbon is regenerated at approximately 1,200°F. The reactivated carbon is then transferred back into the last adsorption column completing the carbon adsorption/desorption cycle.

Recovery of the rich gold eluate solution is conducted in a single electrowinning cell. The rich eluate is heated in a heat exchanger to 185°F and then transferred to the electrowinning cells. The precious metal ions transfer from the solution to the stainless-steel wool cathode at a 1,000-amp induced current

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between the electrowinning anodes and cathodes with a 9-kW rectifier. The lean eluate solution is then returned to the stripping vessel completing the elution cycle.

The precious metal laden steel wool is cleaned and the resultant sludge is transferred to the mercury retort. Mercury is volatilized at 700°F and then condensed and placed into flasks for storage or transport to market.

The sludge is then transferred to the furnace for smelting. Fluxes are added to collect any additional impurities and the furnace heated to 2,370°F. The liquid gold is then poured into a mold where it cools and separates from the slag. The slag is removed from the gold doré bullion, and is then shipped to the market at 80 to 93% Au/Ag purity.

Table 17-3 lists the major plant equipment.

Table 17-3: Major Recovery Plant Equipment Equipment Qty Size Hp (ea) Comment Leaching: Pregnant Solution Pond Pump 2 2,500 gpm / 60’ TDH 75 Submersible Barren Pond Solution Pump 2 5,000 gpm / 30’ TDH 30 Submersible Barren Booster Pump 2 5,000 gpm / 350’ TDH 500 Centrifugal ADR Plant: Carbon-In-Column Circuit: Carbon Column 6 20’ dia. x 4 t capacity 4 t Carbon Capacity Carbon Safety Screen 1 5’ x 10’ Static Acid Wash & Regeneration: Acid Wash Vessel 1 1,200 gal 2.0 ton Carbon Capacity Regeneration Kiln 1 154 lb/hr/440 kBTU Propane Fired Carbon Fines Filter Press 21.5 ft3 Carbon Sizing Screen 4’ x 8’ Static Elution Circuit: Elution Vessel 1 4’ diam. X 18’ tall 2.0 t Carbon Capacity Boiler 1 2.4 mBTU/hr 3 Propane Fired Heat Exchangers 1 45/75 gpm barren/boiler Plate and Frame Style Electrowinning Circuit Electrowinning Cells 1 48 ft3 11 cathodes, 12 anodes Rectifier 1 1,000 amps 20 Filter Press 1 5.0 ft3 Plate and Frame Smelting: Smelting Furnace 1 100 lb. crucible Propane Fired Furnace Scrubber 1 Mercury Retort and Handling: Retort 1 4.0 ft3 4 Retort Scrubber 1 Reagent Handling: Cyanide Storage Tank 1 13,000 gal Caustic Storage Tank 1 10,000 gal Nitric Storage Tank 1 9,000 gal

17.4.4 Assay Lab The analytical laboratory at the Pan Mine is located adjacent to the Administration Building, and is housed in a pre-engineered building. It contains all the necessary facilities and equipment for sample preparation and gold determination via fire assay and atomic absorption (AA) spectrometry. The facility is currently complete, and has all equipment required to fully support mine and recovery plant

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operations. Metallurgical laboratory equipment is also included in the facility, with capabilities for bottle roll and screen analysis. In addition to the analytical and metallurgical facilities, the lab contains offices and a sanitary facility for the technicians.

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Source: GRP, 2017 Figure 17-8: Laboratory Plan

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The sample preparation area has drying ovens and crushing, pulverizing, and splitting equipment for up to 250 samples per shift. The sample preparation area has dedicated ventilation and make-up air systems for dust control. The fire assay section includes two large electric furnaces for fusion and one smaller furnace for cupellation. The fire assay section has a dedicated ventilation system. The AA section has two AA machines (one dedicated to mercury analysis), hot plates, centrifuges and an acid fuming hood. The weighing area has a microbalance and a computer station for sample and analytical logging and reporting. The metallurgical area has sufficient space for a bottle roller and pulp weighing and filtering.

The analytical laboratory is capable of completing 200 hot cyanide-soluble atomic absorption (CNAA) assays and 60 fire assays (FA) per shift. It is capable of solid and liquid copper and mercury analysis, pH determination, weak acid dissociable cyanide analysis, and loaded carbon and bullion assays.

The assay laboratory work schedule is both seven, twelve-hour days and five, ten hour days. Fire assaying is done on a five day per week schedule. Both AA analysis and sample preparation are conducted seven days per week.

All of the mine grade control samples are assayed by CNAA for soluble precious metal determination. Approximately 95% of the grade control samples are assayed by FA, primarily ore grade samples, for resource and mine model reconciliation.

ROM samples are collected by hand from the leach pad using a grid. Prior to leaching, a sample from each grid cell is collected. When the crusher is operating, the heap leach feed shift sample will be sampled with conveyor rotary belt sampler. The sampling system will be located after the secondary crusher. Material from the sampled conveyor will be delivered to the laboratory once per 12-hour shift for additional preparation and analysis. These samples will both be analyzed by FA and CNAA.

The ADR plant has an identical four-element AA machine for routine plant and heap leach solution assays.

17.5 Consumable Requirements

17.5.1 Power 24.9 kV electric power from the site distribution power system is stepped down at the ADR plant to 480 V to operate the leach pumps and recovery system. The process plant equipment average power demand, including solution distribution to the leach pad, is 1,466 kilovolt-ampere (kVA).

A 6,400 ft overhead power line will be built from the existing distribution system to the crushing plant. Stepdown transformers will reduce voltage to 480 V for the crusher and conveying system. The average power demand for the crushing and conveying system will average 1,347 kVA.

17.5.2 Water The peak make-up water requirement for the Project is 520 gpm, 600 gpm during leach pad construction. The water source for the Project will be production water well PW-1, located approximately three-quarters of a mile north of the ADR plant and PW-2A located approximately 2,000 ft southwest of the ADR plant. PW-1 is and PW-2A are equipped with a submersible pump, pumping to an enclosed tank located three-quarters of a mile north of the ADR plant at the 6,520-ft. elevation. The system is designed for a peak flow of 500 gpm, and consistent delivery of 380 gpm.

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17.5.3 Major Reagents The estimated reagent consumption will be as follows:

• 2 lb./t Cement and/or lime • 0.1 lb./t Sodium cyanide

The cyanide consumption is based on the actual consumption at site during the last several months whereas cement consumption is based on ±50% of the consumption determined in the RDI laboratory.

17.5.4 Labor Requirements Labor requirements are divided into two sets: 1) 24 hours, 7 days per week, and 2) 10 hours, 5 days per week schedules. Labor in each category is listed in Table 17-4 and Table 17-5. Management and technical labor is listed in Table 17-6. The total processing plant, crushing system, leach pad, refinery and analytical laboratory labor requirement is 31 workers.

Table 17-4: 24-hr/7-day per week Scheduled Labor 24-hr/7-day Schedule Per Shift Total ADR Supervision 1 5 ADR Operations 1 4 Crushing/Stacking 2 8 Totals 4 17

Table 17-5: 10-hr/5-day per week Scheduled Labor 10-hr/5-day Schedule Per Shift Total Leach Pad 2 2 Assay Lab 3 6 Maintenance 3 3 Totals 8 11

Table 17-6: Management and Technical Labor 4-hr /7-day Schedule Per Shift Total Superintendent 1 Metallurgist 1

Totals 2

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18 Project Infrastructure The following introductory information is from Gustavson, 2015. Content in the rest of this chapter was written in 2017 for this report.

The Project is located five miles by an all-season gravel road from US Highway 50, a major east-west, two-lane paved highway through central Nevada. Highway 50 connects to the towns of Eureka, 25 miles to the west and Ely, 60 miles to the east. Both towns supply housing for mine personnel. In addition, Ely has some mine vendors and support services. Elko, Nevada is a major hub for mining vendors and support services and is approximately 140 road miles to the north.

Airline service is available in Elko, Reno, Las Vegas, and Salt Lake City.

18.1 Infrastructure and Logistic Requirements

18.1.1 On-Site Infrastructure The Project is a fully operational mine with infrastructure constructed by the previous operator. The following is a brief description of the existing infrastructure. In addition to the existing infrastructure, there are plans to add an ore crushing, agglomeration, and stacking system, and a phased expansion of the existing leach pad.

Figure 18-1 shows exiting infrastructure at the administrative office area.

Figure 18-1: Existing Administrative Area Infrastructure

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18.1.2 Water Supply and Site Water Management GRP Pan LLC leases water rights with a total consumptive use limitation of 1,200.69 acre-feet annually. The peak diversion rate under all permits is 4.469 cubic Feet per second (2,005 gpm). This is equivalent to a continuous annual pumping rate of 744 gpm and is sufficient for all of the Pan Project’s needs, as summarized in Table 18-1. Predicted periods of additional water consumption during leach pad expansion are limited to four months or less, averaging 174 gpm over a 12-month period, assuming a peak demand of 1.0 million gallons per day during major earthworks.

Table 18-1: Maximum Water Usage Required Makeup GPM Ore 200 Roads/Dust Control 300 Operations 100 Construction 200 Total 800 Source: GRP, 2017

Water is currently extracted from two wells, PW-1 and PW-2A, which were constructed to depths of approximately 900 ft and have static water levels at approximately 640 ft. Both wells are fully equipped and operational. The well PW-1 is equipped with a 125 HP pump and can deliver approximately 500 gpm. Well PW-2A is equipped with a 250 HP pump and is capable of delivering approximately 800 gpm. PW-3 has been drilled, but does not have a pump installed at this time.

Water from PW-1 meets Nevada drinking water standards and will feed the potable and process water systems as well as fire suppression systems for all facilities. Well PW-2A has slightly elevated arsenic levels and is used for process water only. A chlorination system may be necessary to condition potable water supplied to the administration offices, security and safety building, assay laboratory, and process plant.

Fire water is supplied to GRP’s and mining contractor’s offices, assay laboratory, security/safety building, ADR plant, and refinery. The fire suppression system is automated and includes a diesel-powered firewater pump located in the pump-house adjacent to the fire water storage. Fire water is reserved and physically separated in the bottom half of the tank. In addition to the fire water pumps the pump-house also accommodates the process water distribution pumps, the truck wash pump, and potable water distribution pump.

Two septic systems were constructed. One serves the administration offices, assay laboratory and guard-house/safety building. The second system serves the process plant. Portable toilets will be placed at the mining and crushing areas as necessary.

18.1.3 Service and Access Roads The mine access road connects the project site to US Highway 50, approximately 5 miles from the front gate of the property. The access road is an all-weather gravel road. GRP is responsible for all road maintenance, including snow removal. In the summer, GRP applies magnesium chloride to the road for dust control.

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Mine access and haulage roads have been established from the mining areas to the leach pad and waste rock storage facilities and to the administrative areas. New haulage roads may be constructed as required to access new waste rock storage areas and access to the planned crushing facilities.

18.1.4 Mine Operations and Support Facilities The mining contractor uses a reinforced concrete pad for tire and large component maintenance work. Adjacent to this pad is a separate truck wash pad with high pressure monitors and oil separator.

Diesel and gasoline are purchased in bulk and stored on site at two refueling depots. Both fuel facilities have been constructed using double wall tanks as a means of secondary containment. Mining and on- site diesel powered mobile equipment are fueled at the 30,000-gallon storage tank. Over-the-highway diesel vehicles and gasoline powered vehicles refuel at the split tank having a capacity of 6,000 gallons of diesel and 2,000 gallons of gasoline.

18.1.5 Process Support Facilities The process building is a pre-engineered, high-bay/low-bay steel building, with a footprint of 13,000 ft2. The 30 ft high-bay section of the building contains all of the ADR process equipment, including the carbon-in-column (C-I-C) train, plant air system, and reagent storage tanks. The low-bay section houses the vault, refinery, and two security offices. The refinery is constructed with concrete-filled and steel-reinforced concrete blocks.

The laboratory is a pre-built modular building that is sized and fully equipped to handle all blasthole and process samples, including sample preparation and assaying. It includes a drying oven, fire assay kiln, and an instrument for AA analysis.

Buildings are heated with propane. Propane is also used by the carbon regeneration kiln and gold melt furnace. Tanks for propane storage are located in the administrative area and the process plant area.

18.1.6 Additional Support Facilities The mine office building is a single-story, 4,320 ft2 modular building that houses all administrative and technical staff. Meeting and training rooms are included in this building. It is located near the main access gate to the mine site.

The security and first aid building is a 240 ft2 modular building which is located at the main gate. Standard security measures and operating procedures are established to control access to the site and secure the gold product. Security cameras record key areas around the mine site. Magnetic door locks with electronic key pads are used to control property gates and facility access.

The perimeter of the mine site is fenced with 3-strand barbed wire to keep out unauthorized personnel and grazing cattle. A security chain link fence is installed around the two process water ponds.

The emergency vehicle garage is a 1,200 ft2 pre-engineered building to house the emergency and rescue vehicle.

The mining contractor has a single-story, 2,880 ft2 modular building for administrative staff offices, a crew line out area, and training rooms.

A small pre-engineered steel building provides short-term storage for hazardous materials before they are shipped off-site to approved hazardous waste storage or disposal facilities.

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A microwave-based communication system is on site to support internet and VOIP necessary for daily operation of the mine, plant, and office. The mine site also has good cell phone coverage.

A two-way radio system is established at the Project. Plant operators, survey crews, supervisors, and the mine contractor have portable hand-held radios for operational communications.

18.1.7 Power Supply and Distribution The project is connected via a 69 kV utility power line to the mine substation with two transformers, each with a maximum capacity of 8,300 M Volt-Amperes, installed for 100% redundancy and being more than able to support all anticipated load additions and project expansions. The initial connected electrical load for the current operation is approximately 2.4 megawatts. The normal operating demand load is estimated to be 2.1 megawatts. When crushing, screening and agglomeration equipment are added, the demand load will increase to approximately 3.6 megawatts. Current power cost is 7.3 cents per kWh under a contract that limits power demand to 2.5 megawatts. When the anticipated load exceeds this level, a new contract will need to be negotiated with the utility company.

Site power is distributed throughout the mine site with three phase overhead powerlines at 24.9 kV. Local transformers drop the voltage to three phase 480 V or single phase 110/220 at the administrative area, the Process Plant, the water wells and at the future new crusher and ore stacking facility.

In the event of utility power interruption, back-up power is provided by a 1.5 MW diesel powered generator sized to run the pregnant and barren solution leach pumps thereby ensuring continuous control of process solutions and the maintaining of minimum freeboards in both process solution ponds. Back-up power is also available for critical pumps and processes in the ADR plant and communications systems.

18.2 Heap Leach Pad Ore is currently processed on a 2,500,000 ft2 leach pad, which is designed for an estimated 9.200,000 t. A 2,200,000 ft2 expansion is planned in 2017 and a 1,000,000 ft2 expansion is scheduled for 2019. With expansions, the leach pad will hold the scheduled the total anticipated tonnage of ore. A description of the heap leach facilities is detailed in Section 17.

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19 Market Studies and Contracts The process facility for this operation produces gold doré bars between 90 and 99% purity, with 2 to 3% silver on average. Gold bars will be weighed and assayed at the mine to establish value. The bars are shipped regularly to a commercial refiner where their value is verified. Sale prices are obtained based on world spot or London Metals Exchange market pricing and are easily transacted. Silver values were not included in the economic analysis for this study.

A market study for the gold product was not undertaken for this study. Gold is sold through commercial banks and market dealers. The gold market is stable in terms of established commodity price and investment interest.

19.1 Contracts and Status This study assumes a static price curve for the gold market price. In the economic evaluations, the gold price was set at US$1,215/oz. which is the three-year trailing average for gold as May 31, 2017.

Terms for an off-take and smelting agreement are based on an existing refinery agreement with METALOR Technologies USA Corporation, an international smelting and refining company with a facility at 225 John L. Dietsch Boulevard, North Attleboro, Massachusetts.

Contract terms and doré treatment charges listed below were used in this study:

• Treatment and Refining Charge: US$0.65/oz gross weight shipped; • Gold Return: 99.93% of assayed content; • Settlement: 5 working days from receipt; and • Transportation Fee: US$400 pick-up fee plus US$0.22 of gross weight.

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20 Environmental Studies, Permitting and Social or Community Impact The permitting schedule for the Pan Mine Project was dictated by the federal NEPA process requirements, which typically include at least one year of baseline studies followed by a scoping process and production of draft and final EIS documents. Public review periods are required at the scoping, draft and final EIS stages. The Pan Mine baseline studies were completed in 2011, and the project went through the scoping process in 2012. The draft EIS was released for public review in March 2013. The final EIS was made available November 22, 2013, and the ROD was signed December 23, 2013. Construction began in January 2014. The NDEP-BMRR issued Reclamation Permit No. 0350, replacing exploration Permit No. 0228. The NEPA and permitting processes required approximately 36 months from initiation of baseline studies to the receipt of the ROD in late 2013.

20.1 Required Permits and Status Midway Gold acquired the required federal, state, and local permits for construction, operations, and reclamation of the Pan Mine. GRP has successfully transferred the permits to their control. Table 20-1 provides a list of the major permits and authorizations and their status as of June 2017.

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Table 20-1: Status of Major Permits, Authorizations, and Licenses as of June 2017 Permit Agency Permit Number Approval Date/ Transfer Status Federal Permits and Authorizations Notification of Commencement of 26-02755 Mine Safety and Health Administration Updated and transferred online on June 9, 2016 Operations (GRP Pan) Record of Decision and approved Plan of NVN-090444 Transferred to GRP Pan Bond filed June 22, 2016 Operation (GRP Pan) BLM Mineral Materials Negotiated Sale NVN-089672 Transferred to GRP Pan; Bond filed July 7, 2016 (Borrow) (GRP Pan) Programmatic Agreement(1) BLM/State Historic Preservation Office NVN-090444 Transfer submitted to BLM October 18, 2016 SQG NVR 000 089 227 Transferred to GRP Pan June 28, 2016 Hazardous Waste ID (RCRA) USEPA/NDEP/Department of Energy (GRP Pan) Converted to SQG May 31, 2017 Reg. #0023652175 Call Sign FCC Radio License Federal Communications Commission Transfer completed online WQUC703 Explosives Permit Bureau of Alcohol, Tobacco, Firearms, and Explosives Permit held by mining contractor Not applicable MDW Pan Facility ID 4133675 Waiver provided to MDW Pan CSAT Security Threat Department of Homeland Security Facility survey ID 8022095 (dated Agency contacted GRP March 2017 requesting that we re-submit; ID request submitted and review initiated March 16, 2017 Dec. 30, 2014) State Permits Air Quality Operating Permit -Class I Modification submitted December 2016, approval expected Q3 2017 AP1041-3301 Surface Area Disturbance Permit NDEP Bureau of Air Pollution Control Fugitive Dust Control Plan submitted January 22, 2013 Air Quality Permit –Mercury Controls AP1041-3302 (GRP Pan) Administrative Amendment to GRP Pan August 17, 2016 Reclamation Permit 0350 (GRP Pan) Transferred to GRP Pan Aug 18, 2016 Bond filed June 22, 2016, update approved and posted June, 2017 NDEP Bureau of Mining Regulation and Reclamation NEV2012107 Water Pollution Control Permit Application for transfer to GRP Pan approved Aug. 18, 2016 (GRP Pan)) Dam Safety Permit J-679 NV10821 (GRP Pan) Transfer to GRP Pan August 29, 2016 Nevada Division of Water Resources Water Appropriation (GRP Pan) Leased from Kinross Occupancy Permit No. 200571 Encroachment Permit Nevada Department of Transportation Letter submitted to NDOT June 7, 2016 (MDW Pan) S426563 Industrial Artificial Pond Permit Nevada Department of Wildlife Transferred to GRP Pan June 21, 2016; updated June 20, 2017 (GRP Pan) MSW-42137 Transfer to GRP Pan Complete and annual fees submitted; Correspondence with agency says that with USACE 404 waiver, Stormwater Permit (GRP Pan) this permit is not needed. However, GRP is holding on to it due to construction needs. NDEP Bureau of Water Pollution Control Commercial Septic System Construction Expired May 8, 2014; Construction verified Dec. 14, 2014; GNEVOSDS09 (MDW Pan) Permit NOI Discharge filed December 14, 2014; GRP transfer notice resubmitted May 23, 2017 Landfill Permit NDEP Bureau of Waste Management SW 539 SW1762 (GRP Pan) Both SW-539 and SW-1762 transferred to GRP Pan; expire Aug. 11, 2021 Nevada Board for the Regulation of Liquefied 5-5427-01 (Admin) 5-5427-02 LPG Licenses (2) Both expire Septimate 30, 2017 Transfer to GRP Pan September 15, 2016 Petroleum Gas (ADR) (GRP Pan) Potable Water “non-transient non- NDEP Bureau of Safe Drinking Water WP-1142-NT-NTNC (GRP Pan) Issued to GRP Pan November 2, 2016 community water system” Nevada Department of Business and Industry, Division Commencement of mine operation Submitted. Transferred to GRP in June, 2016 Mine Safety Mine ID 26-02755 (GRP Pan) of Industrial Relations (1) Also signed by Mt. Wheeler Power Company, Te-Moak Tribe of Western Shoshone Tribe, Duckwater Shoshone Tribe, and the Lincoln Highway Association, Nevada. Source: SRK, 2017

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20.2 Environmental Study Results The final EIS identified potential impacts and provided for mitigation for the following resources:

• Special status plant and animal species; • Archeological and cultural resources; • Wild horses; • Mine waste characterization and management; • Groundwater characterization; and • Visual resources.

20.2.1 Special Status Plant and Animal Species Sagebrush Cholla – three specimens of sagebrush cholla were found west of the site, outside of the proposed Project Area. Sagebrush cholla is a Nevada Natural Heritage Program special status species (BLM, 2013). Identification and relocation of plants found in disturbance areas was required by the ROD. Relocations ultimately only were necessary along the relocated powerline route.

The ROD stipulates that a BLM-approved native seed mix be used within sand cholla habitat. A reference area was established at the time of transplantation and will be used as the target for reclamation. The frequency, density, and ground cover of the native vegetation will be documented for sand cholla habitat.

Greater Sage-Grouse – The Pan Mine is situated where there are few or no springs and seeps and sits high enough on the mountainside to not be located in primarily sagebrush habitat. During the EIS development, the mine was considered to be located within “preliminary priority” and “preliminary general” habitats. The habitat definitions and nomenclature have since changed as has the status of greater sage-grouse as described in the Approved Resource Management Plan Amendments for the Great Basin Region (ARMPAs) (BLM 2015). However, the ROD was issued prior to the finalization of the ARMPAs, so the mine activities are not presently subject to the conditions of the ARMPAs.

In addition to the suitable greater sage-grouse habitat associated with the Project area, four greater sage-grouse leks were identified within three miles of the mine. Two of the leks are considered active, one lek has an unknown status, and one lek is inactive. The power line and access road route were relocated to avoid these leks. There are other leks further away that are either sufficiently far away from the mining activities to not pose a threat to the birds’ well-being or are inactive. There were no timing limitations required during construction, and normal mining activities should not be impacted.

The ROD stipulates that no construction or new ground disturbance will occur during the period from March 1 through May 15 from one hour before sunrise until three hours after sunrise within two miles of active greater sage-grouse leks. Monitoring of noise at the lek locations during the lekking period (March 1 to May 15) from one hour before sunrise to three hours after sunset is also required by the ROD. The noise limit is 10 decibels above ambient. Ambient is 18 decibels (L50). GRP also has off- site compensatory mitigation which is a monetary sum they will have to pay once the amount is finalized with the BLM. GRP currently anticipates that amount will be less than US$200,000 (Williams, 2017).

An off-site greater sage-grouse mitigation plan will be developed and approved by the BLM, of which the key components will include:

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• Complete off-site mitigation of impacted priority habitat on a 3:1 basis where three acres of habitat will be restored or enhanced either adjacent to the project, within the population management unit, or within adjacent priority habitats for each one acre of priority habitat impacted. • Complete off-site mitigation of impacted general habitat on a 2:1 basis. • Off-site mitigation will be initiated within one year of ground disturbance and completed within 10 years of ground disturbance (BLM 2013).

Pygmy Rabbits – No pygmy rabbits were found on the project site during baseline studies, though habitat is present and could be occupied (BLM 2013).

The ROD stipulates that pre-construction clearance surveys for pygmy rabbits will occur prior to any surface disturbance regardless of the season. If occupied pygmy rabbit habitat is identified during pre- construction clearance surveys and natal burrows are found, new disturbance will not occur within 200 ft of those areas. If disturbance of these areas is determined to be unavoidable, consultation with the appropriate BLM and National Department of Wildlife (NDOW) wildlife biologists will occur to develop mitigation techniques. The pre-construction surveys only identified habitat in the southwest corner of the property, and this area has been avoided. However, future work in this area will require survey and potentially avoidance or consultation.

Western Burrowing Owl – Suitable habitat for western burrowing owl is present within the survey area though occurrences have not been documented. Construction activities could potentially destroy suitable and occupied nesting habitat for burrowing owls as well as displace individual owls.

The ROD stipulates that pre-construction clearance surveys for western burrowing owl will occur prior to any surface disturbance occurring from March 15 through August 31. If occupied western burrowing owl nesting territories are encountered, GRP will avoid the area within 0.25 miles of the active territory until a qualified biologist has determined the young have fledged, and the nesting territory has been abandoned for the season. If disturbance of these areas is determined to be unavoidable, consultation with the appropriate BLM and NDOW wildlife biologists will occur to develop mitigation techniques. The pre-construction clearance surveys did not identify any occupied nesting territories and no mitigation was required.

Golden Eagles and Raptors – The golden eagle is listed as sensitive by the BLM and is protected by the State of Nevada. The species has no special status with the U.S. Fish and Wildlife Service (USFWS), although it is protected under the MBTA and the Bald and Golden Eagle Protection Act (BGEPA). During agency consultation, NDOW identified those golden eagle nests documented within the project vicinity. Two golden eagle nests were identified within the northern portion of the Project Area and 39 were identified within a 10-mile buffer. Further, golden eagles were observed nesting during baseline surveys (BLM 2013).

The bald eagle is listed as Sensitive by the BLM and is protected by the State of Nevada. The Plan Area and adjacent areas serve as potential foraging habitat.

The Bird and Bat Conservation Strategy (BLM 2013, Appendix 4A) describes the avian and bat protection measures for eagles, raptors, and other migratory bird and bat species. Annual nest surveys are required for the identified golden eagle and raptor nests within a 10-mile radius of the mine.

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Migratory Birds and Bats – Several migratory bird species were found at the Pan site during baseline surveys. The BLM considers all bat species to be sensitive; however, no nesting or roosting habitat were found on site, and no further evaluation is required by the ROD.

The ROD stipulates that Midway, now GRP, will fully implement and adhere to the construction techniques, design standards, and avian mortality reporting set forth in the Bird and Bat Conservation Strategy for raptors, western burrowing owls, migratory birds, and bats and the Eagle Conservation Plan, if required, for golden and bald eagles. An Eagle Conservation Plan was not required by the USFWS subsequent to the ROD. Nesting surveys for migratory birds will be conducted within seven days of disturbance if disturbance needs to occur between April 1 and July 31. In coordination with the BLM, an avoidance buffer will be determined, and the nest will be avoided to prevent destruction or disturbance of nests until the birds are no longer present.

Dark Kangaroo Mouse – During pre-construction trapping for dark kangaroo mice in potentially suitable habitat within the Mine Area, occupied dark kangaroo mouse habitat was identified; however, this habitat is outside of the disturbance area. If disturbance of this area is proposed in the future, consultation with the appropriate BLM and NDOW wildlife biologists will occur to develop avoidance strategies and mitigation techniques.

20.2.2 Wild Horses To minimize the potential of wild horses accidentally entering the fenced portion of the Project area and not being able to be released easily, gates will be installed along the fence line at every corner. If the fence stretches longer than one mile, a gate will be placed at one-mile increments. Gates will also be placed on either side of cattle guards.

20.2.3 Cultural Resources The BLM, Nevada State Historic Preservation Office, and Midway signed a Programmatic Agreement (PA: FEIS Appendix 3B; BLM, 2013) in conjunction with Mt. Wheeler Power Company and the Lincoln Highway Association, Nevada that directed all activities associated with identifying and mitigating archaeological sites. This PA, which has been completed and transferred to GRP, facilitates future archaeological work on site.

The Lincoln Highway/Hamilton Stage Road – US Highway 50, was developed over the Lincoln Highway route in the Project area. The dirt road which originally accessed the Pan Mine and traversed the south end of the North Pit may have been an unimproved alternative route for the Lincoln Highway from 1913 to 1926, prior to the development of US Highway 50. Studies of this section of the route have determined that parts are eligible, and some parts are not eligible, for listing on the National Register of Historic Places (NRHP). A treatment plan was prepared, submitted to the BLM, and all required mitigation of segments within the mine disturbance area have been completed. The plan included designating another similar road in the area as a mitigation route, providing signage to inform and direct travelers to the new route, and installing two culverts on the road. Concurrence from the BLM was obtained in January 2013 and the completion of the mitigation was completed in early spring 2013.

The Hamilton Stage Road was a Pony Express, stage, and freight route between Elko and Hamilton, Nevada. It was likely constructed, or became used, in the late 1800s and was outdated by the early

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1900s. The exact routing in the area of the Pan Project is unknown. It is believed to be in the Newark Valley, and not in the area of the Pan Project.

Carbonari sites, burn piles, and habitations from Swiss/Italian and Chinese charcoal producers have been identified within and near the Pan Mine Area. Cultural surveys have been conducted to identify, locate, and record the Carbonari sites. Approximately 300 sites were identified. Of these, approximately 150 were determined eligible for listing. Fifteen sites (10 percent) were determined to require mitigation due to their ability to provide knowledge about the Carbonari in the area. A plan to mitigate the sites through recordation prior to disturbance was developed and submitted to the BLM in January 2013. The sites were mitigated during the early spring 2013.

20.2.4 Mine Waste Characterization and Management To assess the potential impact to groundwater during the operations, maintenance, and reclamation phase of mining, acid-base accounting (ABA) and metals leaching (ML) potential tests were performed on a variety of rock samples at the site. ABA-ML tests were performed on over 600 rock samples from the site. Based on the results of this testing, using parameters established by the NDEP-BMRR and BLM guidelines, the majority of waste rock samples were found to be non-acid generating with an overall low to moderate potential for metals leaching (BLM 2013).

Waste rock from the South Pan Pit has very low sulfur content (average sulfide sulfur less than 0.1 percent) and has a high neutralizing potential due to the high percentage of limestone (approximately 70 percent). The waste rock from the North Pan Pit has a higher percentage of samples considered potentially acid generating (PAG). Using Nevada BLM criteria, the majority of waste rock samples are considered non-acid generating, having both a net neutralization potential greater than 20 t of material per thousand tons of calcium carbonate and a neutralization to acid potential ratio of greater than 3. Using the NDEP-BMRR criteria, the percentage of samples considered non-acid generating increases to 90 percent. Results of meteoric water mobility procedure (MWMP) analyses showed a low metals-leaching potential, with only arsenic and thallium having some leaching potential. Each of these elements was slightly above its respective Nevada groundwater Profile I Reference Value of 0.01 mg/L and 0.002 mg/L, respectively. Consequently, the potential for acid rock drainage and/or metals leaching from the WRDA is considered low (BLM 2013).

GRP continues to monitor waste rock and ore geochemistry as stipulated by the state water pollution control permit. During operations, waste rock grab samples are collected quarterly for each major rock type encountered and submitted for ABA and MWMP testing. Routine blasthole monitoring of a minimum of 10 percent of the North Pan Pit blastholes is tested to identify any PAG materials. Testing includes visual inspection, paste pH, net acid generating pH, and LECO carbon/sulfur analyses.

20.2.5 Surface and Groundwater Characterization The Pan Mine is located primarily in the Newark Valley (Hydrographic Basin 154), with a small portion in the northern end of the Railroad Valley Basin/Northern Part (Hydrographic Sub-Basin 173b). Both are terminal basins that drain to playas. The Newark Valley is approximately 801 square miles in an area with no surface water inlets or outlets, and the Railroad Valley/Northern Part is approximately 2,140 square miles (BLM 2013).

No seeps or springs were identified in the Plan Area, and all streams are ephemeral (BLM 2013). No water quality analyses are available.

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There are three aquifers of note in southern Newark Valley: a small, perched alluvial aquifer just west of the Plan Area; an extensive valley fill aquifer; and a deep, regional, carbonate bedrock aquifer. The depth to groundwater beneath the Plan Area ranges from 650 to 800 ft below ground surface and, is not expected to be encountered by the construction or mining activities (BLM 2013). Groundwater quality below the Plan Area was good, with a neutral pH and total dissolved solids ranging from 260 to 290 mg/L. Groundwater was relatively warm at 80 degrees Fahrenheit (BLM 2013).

Five monitoring wells were installed in 2013. Well DMW-1 characterizes the water quality in the deeper carbonate aquifer south of the property and four wells (MW-1, MW-2, MW-3, and MW-4) characterize the perched alluvial aquifer. An observation well (OBS-1) was installed prior to drilling the first production well. This well is used as a second deeper carbonate aquifer monitoring well on the north side of the property. The water quality was noted to vary between the deep carbonate and shallow alluvial aquifers (BLM 2013).

20.2.6 Visual Resources The exterior surfaces of any ancillary facilities visible from any project Key Observation Point (KOP) or Highway 50 will be painted with non-reflective shale green if located in pinyon-juniper vegetation or shadow gray if located in shrublands or other open areas. Other non-reflective colors of paint, as determined by the BLM, may be used in place of shale green or shadow gray.

20.3 Environmental Issues Environmental issues identified in the final EIS completed for the mine are mitigated by the requirements of the Record of Decision (ROD) as described for each resource below. At the time of publication, known environmental issues had been addressed and mitigated, as required.

20.4 Operating and Post Closure Requirements and Plans

20.4.1 Developed Operations Mining began in May 2014 with pre-stripping and construction of the access road, South WRDA, and Phase 1 heap leach pad. Processing began when ore was first placed on the heap leach pad beginning late in the Q3 2014 with first leach solution applied in the Q1 2015. GRP is operating two pits within the Mine Area. Three smaller satellite pits are planned to be mined in the future. Ore from the South and North pits is blended; in the future, ore may be crushed on site, agglomerated, and processed on the heap leach facility.

20.4.2 Period of Operations The permitted mining period is 13 years, with associated construction, closure, reclamation, and post- closure monitoring periods extending the Project life to approximately 38 years. The reclamation surety covers phased development (1,039 acres of disturbance) rather than the authorized 3,233 acres of disturbance. GRP will update the reclamation costs and surety as necessary.

The pits, WRDA, heap leach facility, roads, and ancillary facilities and a 69-kV transmission line will ultimately result in about 3,233 acres of total disturbance. Upon completion of mining, the operation will be closed and reclaimed in accordance with federal, state, and local requirements. Table 20-2

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summarizes the bonded disturbance evaluated for Phase 1, and the total disturbance acreage for each component of the Pan Mine for complete build-out.

Table 20-2: Summary of Authorized Phase 1 and Life-of-Mine Disturbance Total Phase 1 Subsequent Phases Total LOM Component Disturbance(1) (acres) Disturbance(2) (acres) Disturbance (acres) Open Pits South Pan Pit 62.0 192.0 254.0 North Pan Pit 31.0 74.0 105.0 Black Stallion Pit 17.0 17.0 South Syncline Pit 3.0 3.0 North Syncline Pit 15.0 15.0 WRDA South 122.0 80.0 202.0 Northwest 65.0 10.0 75.0 Northeast - 102.0 102.0 Other Roads 135.0 35.0 170.0 Heap Leach 110.0 110.0 220.0 Facility Process Facilities 12.0 2.0 14.0 Process Ponds 15.0 - 15.0 Yards 41.0 - 41.0 Growth Media 46.0 10.0 56.0 Stockpiles Borrow Areas 69.0 141.0 210.0 Exploration 121.0 88.0 209.0 Ancillary Facilities 36.0 3.0 39.0 Inter-facility 174.0 1,312.0 1,486.0 Disturbance Total 1,039.0 2,194.0 3,233.0 Source: NDEP-BMRR Reclamation Permit No. 0350 August 18, 2016 (1) Current bonded disturbance (2) Additional surety will have to be posted before engaging in Subsequent Phase disturbance.

Heap leach draindown, closure, and reclamation will require approximately four years, ending in about Year 8 of the authorized mine closure plan. The closure and reclamation of supporting facilities, and post-closure monitoring, will require approximately 30 years, bringing the entire Project life to approximately 38 years. Monitoring of the heap leach draindown may continue for up to 30 years following closure. Concurrent reclamation during active mining has been planned to begin as soon as practicable on areas where no further disturbance will occur, minimizing the need for post-mining reclamation.

20.4.3 Planned Operating Procedures In addition to permit compliance, GRP has committed to many practices to prevent undue and unnecessary environmental degradation during the life of the mine. The practices listed below are part of the operating procedures included in the 2013 Plan of Operations, or are parts of other permits.

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• Fugitive dust control plan • Programmatic agreement • Groundwater monitoring plan • Stormwater pollution protection plan • Waste rock management plan • Quality assurance plan • Spill contingency and mitigation plan • Interim management plan • Petroleum-contaminated soils management plan • Bird and bat conservation strategy

20.5 Post-Performance or Reclamations Bonds NDEP-BMRR and the BLM issued reclamation permits (NVN-90444 and NDEP#0350) in 2013 and co-ordinate annual reviews. The SRCE is managed by NDEP and the bond (or surety) is held by the BLM. The bond is phased in that each year it is updated and re-calculated to estimate the predicted impacts for three years beyond the present.

20.6 Social and Community The Pan Mine enjoys overwhelming support from the local community, counties (White Pine and Eureka), and state permitting authorities due to its capability to provide jobs and tax income. The two local Shoshone Tribes; the Ely and Duckwater Tribes, are both in support of the mine, which can provide employment for tribal members and for support of their own initiative to expand the Duckwater Reservation by about 31,229 acres. This initiative was realized in the Nevada Nations Land Act signed into law by President Obama on October 7, 2016. GRP has initiated a community relations plan and supports various groups and community activities to the degree possible for an early start-up company. The final EIS identified a potential need for housing in the area. However, layoffs from other mines in the area that are closing or reducing operations, has reduced this potential impact. The Pan Mine has no set obligations to fund housing, but a lack of housing can affect staffing needs.

20.7 Mine Closure Mine closure is defined as the chemical stabilization of process components. Nevada Administrative Code (NAC) 445A.379 defines “stabilized” as “the condition which results when contaminants in a material are bound or contained so as to prevent them from degrading waters of the state under the environmental conditions that may be reasonably expected to exist at a site”.

The heap leach facilities will be decommissioned in accordance with NDEP regulations and guidelines for closure. A Tentative Plan for Permanent Closure, as required by NAC 445A.398, was included in the water pollution control permit. A Final Plan for Permanent Closure, to include all proposed expansion components, will be prepared and submitted to the NDEP and the BLM two years prior to the anticipated final termination of the heap leach facility operation, per NAC 445A.447.

Chemical stabilization of the heap leach facilities is required to obtain permanent closure. GRP anticipates that the spent heap will be allowed to drain with no fresh water rinsing. Final details of heap neutralization and closure will be developed at least two years prior to Project closure pursuant to the requirements of NAC 445A.446 and NAC 445A.447.

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Midway developed, and GRP adopted, the following conceptual plan for process fluid stabilization:

• After cessation of leaching, process solution will be recirculated from the process ponds to the heap until drain down is less than active evaporation capacity. • Process solution will be actively evaporated on the heap until drain down flows can be managed through passive evaporation in the process ponds. • The heap will be regraded. • Growth media, i.e., cover soil, will be placed on the heap, as described in Section 3.8.2 above, with the aim of limiting long-term flow from the heap to a de minimus quantity. • The pregnant process pond will be converted to an ET cell to store and release heap drain down through ET until de minimus flow is achieved, at which time the ET cell will be closed.

Operational monitoring data for drain down flows and chemistry will be used to confirm modeled flows and submitted as part of the Final Plan for Permanent Closure at least two years prior to the closure of the heap leach facility.

20.8 Reclamation Measures During Operations and Project Closure Reclamation of disturbed areas resulting from activities outlined in the Pan Mine Plan of Operations and Reclamation Permit Application (Midway 2013) have and will continue to be completed in accordance with BLM and NDEP-BMRR regulations. The purpose of Subpart 43 CFR § 3809 – Surface Management, is to prevent unnecessary or undue degradation of public lands by operations authorized under the mining laws. This subpart establishes procedures and standards to ensure that operators and mining claimants meet this responsibility and provide for the maximum possible coordination with appropriate state agencies. The NDEP-BMRR requires that a reclamation plan be developed for any new exploration or mining project and for expansions of existing operations (NAC 519A).

GRP anticipates that, with the exception of the open pits for which reclamation exemptions under NAC 519A.250 were obtained, surface mine components and exploration will be reclaimed and revegetated according to the approved reclamation plan. The goals of the reclamation plan are to:

• Minimize surface disturbance and environmental impact to the extent practicable; • Create diverse, reclaimed landscapes to promote vegetation and habitat diversity and hydrologic stability over time; • Return mine-related disturbances to productive post-mining land uses that emphasize livestock grazing, greater sage-grouse habitat, wild horse use, and wildlife use with dispersed recreation and mineral exploration usage; • Comply with applicable state and federal environmental rules and regulations; • Limit visual impacts; and, • Limit and/or eliminate long-term maintenance following reclamation to the extent practical.

These goals will be achieved by meeting the primary objectives listed below:

• Establish stable surface topographic and hydrologic conditions during mining and after reclamation that are compatible with the surrounding landscape by designing stable fill and cut slopes, controlling erosion, and managing surface water and earthen materials to minimize water quality impacts;

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• Establish a stable, diverse and self-sustaining plant community through removing and redistributing suitable plant growth media on disturbed areas and by the seeding and planting of native and adapted plant species; • Reclaim facilities that are no longer needed for operations as soon as practicable during the production period by implementing concurrent reclamation; • Integrate mining plans with soil, water and waste management and reclamation plans; • Separate process water and contact water from non-contact (i.e. un-impacted) water; and, • Incorporate operational stormwater management facilities into the design of closure stormwater.

GRP is committed to operating in a manner that protects, and where possible enhances, the environmental and social values of the ecosystems and communities within which it operates. To this end, GRP has proposed a reclamation plan to reclaim the land to productive post-mining land uses. Such voluntary measures include:

• Live-handling of plant growth media, including removal and direct placement of plant growth media on surfaces that have been prepared for reclamation without stockpiling; • Construction of WRDA using stable design principles; • Salvage and redistribution of woody debris for final reclamation; • Contouring the top of the spent heap leach pad to create more natural forms and lines; and, • A revegetation plan that includes sowing seed and planting shrub seedlings according to landscape position and aspect.

20.8.1 Reclamation of Open Pits Pit berms will be constructed along the pit perimeters where necessary to preclude public access and deter livestock, for the pits that will remain as post-mining features. Groundwater conditions at the Pan Mine indicate the regional water table lies about 300 ft below the bottom of both proposed pits. No groundwater will enter the pit either during operations or post closure. Depending upon the balance between surface water runoff and evaporation, there is the potential that the pits may temporarily accumulate surface water during spring melt and/or large storm events. Precipitation-related water that could accumulate in the bottom of the pits and/or benches will be temporary given the high net evaporation (51.5 inches) compared to precipitation (11.85 inches). The pits are exempted from backfilling.

20.8.2 Reclamation of WRDA The goal of the WRDA design is to establish a sustainable landform. The WRDA will be constructed and reclaimed to slopes of 3H:1V and concurrently reclaimed where practicable. Erosion during an initial equilibration period is anticipated and considered acceptable, as long as it stabilizes to a sufficiently low long-term rate.

The WRDA soil cover is intended to be non-erosive, or, for segments that undergo erosion, able to self-armor in a way that halts erosion before waste rock is exposed or free drainage is compromised. Concurrent reclamation of the WRDA during the production period would allow mine managers to monitor performance of the design, retrofit eroded areas as needed, and make adjustments to yet-to- be constructed segments, as part of an adaptive management strategy.

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Waste rock would be placed in accordance with the Waste Rock Management Plan (Interralogic, 2013). Material determined to be PAG that is in manageable pods in the pit would be isolated in the central portion of the Northeast and Northwest WRDA, as needed. The final lift over the isolated PAG material in the Northeast and Northwest WRDA would consist of approximately 2.5 ft of high carbonate material using waste rock set aside during mining, with an overlying vegetated growth media cover 12 inches thick to minimize the long-term potential for acid generation and metals leaching. GRP has committed to covering the PAG material within the WRDA with 6.5 ft of non-PAG ROM waste in addition to the 2.5 ft of high carbonate material and 12 inches of growth media, for a total cover thickness of 10 ft if PAG material is identified in future testing.

20.8.3 Reclamation of the Heap Leach Facility The heap leach pad will be constructed in lifts set on a 3H:1V (horizontal to vertical) balance line such that the overall reclaimed slope angle will be approximately 3H:1V. Following the end of heap leaching operations, drain down, and closure as described above, each heap lift will be regraded to the final slope configuration of approximately 3H:1V. This design will mitigate aesthetic impacts, provide stability, promote run-off, and reduce infiltration.

When no longer required for evaporation of fluids, the surface solution distribution piping will be removed. The side-slopes of the heap will be graded so the final toe is within the interior crest of the perimeter berm. A store and release or evapotranspiration (ET) cover will be installed on the regraded heap surface to limit infiltration of precipitation into the spent ore. The soil cover on the spent heap will allow retention of water in the cover material during snow melt and precipitation to establish grass and herbaceous vegetation. By retaining the water in the soil cover for plant uptake and ET, the amount of water infiltrating is reduced, thus minimizing the drain down solution and steady–state seepage that will need to be managed during closure and post-closure. The recontoured heap will be covered with 2.5 ft of growth media, i.e., cover soil. Midway conducted vadose zone modeling of potential cover soil types from within the mine disturbance and borrow areas. The vadose zone modeling indicated that for representative potential cover soil types, a 2.5 ft thick layer of cover soil will limit infiltration through the cover to one percent under average and wet climate conditions.

Reclamation of the heaps will be carried out following growth media placement as described above. The Grassland/Erosion Control seed mixture will be applied to the heap. The working slopes and the ability to operate equipment safely will determine the method of seeding. Stormwater diversion structures will be constructed upgradient of the heaps to prevent impacts from stormwater run-on. These structures will be maintained to minimize erosion over the long term.

20.9 Closure Monitoring During operations, annual qualitative monitoring of key indicators of site stability of concurrently reclaimed areas will be conducted. These key stability indicators may include vegetation, surface erosion, sedimentation, and slope stability parameters. If specified performance guidelines are not satisfied then appropriate maintenance activities will be implemented. Following completion of concurrent reclamation activities and until such time that a final bond release is attained, maintenance activities will occur as necessary to satisfy performance guidelines. Maintenance activities may include one or more of the following:

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• Sediment removal from sediment ponds, stormwater drainage channels, and diversion as necessary to maintain their design capacity; • The function of temporary erosion control BMP such as silt fences and straw bales will be maintained. These BMP will be removed when no longer essential for erosion control; • Diverting surface water away from reclaimed areas where erosion jeopardizes attainment of reclamation standards; • Stabilization of rills, gullies, other erosion features or slope failures that have exposed mine waste; • Noxious weed control; and • Reseeding or re-application of reclamation treatments will occur in areas where determined through monitoring and agency consultation that reclamation has not yet met reclamation standards.

Quantitative reclamation monitoring to measure compliance with the revegetation success criteria will begin during the first growing season after final reclamation is completed and will continue for a minimum of three years or until the reclamation success criteria are achieved. Qualitative monitoring of key indicators of site stability will continue, and the reclamation performance management guidelines will apply during this time. The reclamation bond release criteria will be applied to the data collected in the third year following reclamation. Data from previous years will be used to determine management needs. Revegetation success will be determined based on the NEDP guidelines contained in the document “Attachment B–Nevada Guidelines for Successful Revegetation for the Nevada Division of Environmental Protection, the Bureau of Land Management, and the USDA Forest Service” (NDEP, BLM, and USFS, 2016).

GRP submits an annual report on or before April 15 of each year to the BLM and NDEP for the preceding calendar year. The annual reports contain descriptions of the reclamation activities completed during the previous year. The annual report will also include a summary of areas reclaimed and a discussion of the general vegetation performance, surface erosion status, slope stability status, and corrective actions completed and/or proposed.

The ET cell and associated downgradient monitoring wells will continue to be monitored for 30 years following construction of the ET cell.

20.10 Reclamation Bond and Closure Cost Estimate The reclamation incremental cost estimate is calculated annually using the Nevada Standardized Reclamation Cost Estimator (SRCE) (NDEP, 2016). This number includes all closure and post-closure monitoring plus contingencies, should the agency need to have the work done by a third-party contractor. Currently, the 2016 annual bond update, recently approved by both agencies, stands at US$15,287,194, covering 1,039 acres of disturbance.

GRP has not provided a verifiable first-party closure cost estimate. As such, SRK has assumed that the closure cost estimate will be similar to or equivalent to the current reclamation cost estimate.

Within the Mine Area, GRP will be responsible for reclaiming areas disturbed by other operators and not previously reclaimed. In the event GRP re-occupies previously disturbed or reclaimed areas outside of the mine fence and within the Plan Area, such disturbance will be considered new

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disturbance, and GRP will provide financial assurance to reclaim such areas under the provisions of this Plan.

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21 Capital and Operating Costs 21.1 Capital Cost Estimates The Pan Mine has been constructed and is currently operating. For the purposes of this Technical Report, all capital spent to date is considered a sunk cost. Additional capital is now needed to build the Phase 2A leach pad expansion and to source crushing, screening, and stacking equipment for ore processing. These project additions are required to sustain operations and improve recoveries.

21.1.1 Basis for Capital Cost Estimates Capital cost for leach pad construction is based on the inflated adjusted cost of the 2015 leach pad construction and current contracting mining rates for portions of the work. The crusher capital cost includes a Q4 2016 quotation for major equipment cost, which constitutes 40% of the total estimate. The remaining costs included in the crusher capital cost are based on inflated adjusted installation rates from the original plant construction estimate using current engineered material quantities.

21.1.2 Heap Leach Construction Cost Due to the relatively small Phase 1A leach pad footprint, additional leach pad area is required. Phase 2A leach pad expansion is scheduled to commence in July 2017 and will have a duration of approximately four months at a cost of US$6.5 million. The estimated costs, including earthworks, Quality Assurance/Quality Control, underdrain piping and liner costs, are summarized in Table 21-1. The design and necessary regulatory approvals for expanding the leach pad are in place to add another 2.2 M ft2 of pad though an engineering design change (EDC) will be required to define the bentonite addition to obtain the required impermeability for the underliner material.

Table 21-1: Heap Leach Phase 2A Construction Cost Description Cost, US$000 Eng/Permitting/Mgmt $370 Earthworks $2,888 Liner and Piping $1,763 Overliner $1,900 Total $6,921 Contingency ~15% $1,038 Total W/ Cont. $7,959 Source SRK, 2017

An additional phase of construction is scheduled in 2019. The cost of construction of an additional 1.0 Mft2 is estimated at US$3.0 million, including contingency. The area planned for the leach pad is already permitted but will require final design and final design approval by the Nevada Department of Environmental Quality (NDEQ).

21.1.3 Crushing, Agglomeration, and Conveying Cost The original assumptions for processing ores from the South pan pits were predicated on the metallurgical responses achieved in the April 2014 laboratory testing that indicated high recoveries for ROM ore with standard solution application rates. However, commercial operations determined that

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the ore had lower permeability than originally presumed. This led Pan management to conclude that crushing and agglomeration is necessary to achieve acceptable ore permeability.

The crushing and agglomeration system is designed to support 10,000 t/d of ore placed on the leach pad. Trade-offs have been reviewed between loader and truck ore placement on the pad or conveyor stacking. The capital costs in Table 21-2 represents the on-pad conveyor stacking option, which is the most cost effective for the life of the mine, but more initially capital intensive.

Table 21-2: Crusher Cost Estimate Description Total, US$0001 Engineering $382 Permitting/Insurance $150 Crushing System $3,632 On-Pad Stacking $5,924 25kV Power Distribution $680 Raw Water Distribution $1,028 Site Civils $2,000 First Fills/Spares $570 Total $14,366 Contingency, ~17% $2,448 Total W/ Cont. $16,814 All major equipment, roughly 40% of the costs above, are based on quotes from Q4 2016

21.1.4 Other Capital Costs Capital for engineering and metallurgical test work in 2017, light vehicles, and other sustaining capital have been included in the capital estimate. An estimated 12 light vehicles will be purchased over the life of the operation. An allocation of approximately US$300,000 per year has been included for undesignated sustaining capital. The summary of other LOM capital costs is shown in Table 21-3.

Table 21-3: Other Life-of-Mine Capital Costs Description Total (US$) Engineering and Met support $210,000 Light Vehicles $480,000 Sustaining Capital $1,330,000

21.1.5 Reclamation Cost The capital required for mine closure capital was estimated using the SRCE, the Nevada State- approved method of calculating reclamation bonds. The “in-ground” reclamation cost including contractor profit was US$12.7 million. This estimate assumes that GRP will perform the work and is less than the bonded cost shown in Section 20, which includes large costs for governmental supervision and prevailing wage costs. Contingency is built into the SRCE calculations.

21.2 Operating Cost Estimates Total operating cost estimates for the Project are presented in Table 21-4. The unit operating costs are based on total mined material of 49,039 thousand tons (kt), of which 28,091 kt is waste and

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20,949 kt is ore. Operating costs include only those activities that occurred after commencing metal production. The estimated mine life is six years.

Table 21-4: Operating Cost Summary Operating Costs (US$000) US$/t-ore Mining $93,799 $ 4.48 Processing $46,848 $ 2.24 G&A $16,767 $ 0.80 Total Operating $157,414 $ 7.51 Source: SRK, 2017

21.2.1 Basis for Operating Cost Estimates Mining costs were dictated by the equipment selected and the conditions of the mine environment. The mine is presently operating using a contractor for all mining activities. Mining costs were developed based on the current mining contract and historic costs.

Processing costs were developed from: 1) the Q2 2017 wage rates paid; 2) reagent consumption as determined by current site usage rates, site-specific test programs or industry standards, and current prices; and 3) wear and replacement parts by testing, manufactures recommendations, and industrial standards.

The supervisory and administrative support staff was sized to efficiently handle the administrative, technical and management functions required for the proposed operation. Provisions for task training and required safety training were also included.

21.2.2 Mining Cost Estimates The Pan operation currently employs Ledcor Group, a contract miner, for all mining activities. The Contractor supplies all the mining and support equipment, personnel to operate the equipment and direct supervision. The contract is a Time and Materials (T&M) contract where the contractor supplies the equipment and personnel, and works at the direction of GRP. This type of contract gives GRP the greatest flexibility on where the contractor will operate and the production rate. The contract includes both variable costs for equipment and labor and fixed monthly costs for supervision, support, and maintenance functions. Table 21-5 shows the estimated cost for the direct contractor costs. During ROM placement of ore on the pad, the mining department is responsible for contractor cost for dozing and ripping the ore on the leach pad. When crushing and stacking activities begin, feeding the crusher with contractor equipment will also be costed to the mining operation.

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Table 21-5: Mining Contractor Cost Item US$/t Mined LOM (US$000) Drilling Ore & Waste 0.115 5,616 Blasting Ore & Waste 0.094 4,595 Loading Ore & Waste 0.163 7,988 Haulage Cost 0.456 22,362 Support Equipment Cost 0.242 11,880 Pad Dozer 0.014 692 Loader feeding crusher 0.126 6,155 Re-Handle, Allowance 0.024 1,172 Contractor Supervision 0.091 4,440 Contractor Support Equipment and Maintenance 0.266 13,048 Total Contractor Cost 1.590 77,949

In addition to the direct contractor cost, Pan will supply fuel, and blasting agents and supplies. Fuel use was estimated from historical data and contractor supplied information at 0.09 gallons/t mined. Consumption of blasting agents, primarily ammonium nitrate, is planned at 0.50 lbs/t. Pricing for blasting services from the contractor includes all “downhole services”, including blasting consumables, labor to load the blastholes, and blast initiation. Fuel cost used in this cost estimate is US$2.00/gal, which is the current price paid by the operation.

Pan is responsible for all engineering services including mine planning and survey, blasthole sampling, ore control and overall supervision of the contractor’s operation. Table 21-6 shows the estimated additional mining costs. Table 21-7 summarizes the mine production costs.

Table 21-6: Other Mining Costs Item US$/t Mined LOM (US$000) Fuel Cost 0.180 8,827 AN Cost 0.110 5,394 GRP supervision, $/month 0.033 1,628 Total Other Mining Cost 0.323 15,849

Table 21-7: Mine Production Costs Item Cost (US$) Unit LOM Mining Cost 93,799 US$000 Cost per ton mined 1.913 $/ton mined Cost per ton ore 4.478 $/ton ore

21.2.3 Processing Cost Estimates The major processing cost elements include: labor, power, consumables, maintenance materials and other for the processing areas of crushing, leaching, ADR, and administration. The LOM operating cost to process 20.9 Mt of ore is US$46.0 million, or US$2.19/t ore processed, including both ROM and crushed ore. ROM processing is planned to continue through the Q1 of 2018. Major elements of ROM costs are shown in Table 21-8. Table 21-9 shows expected costs for the crushing and stacking operation.

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Table 21-8 Major Element Process Cost for ROM Ore Item LOM (US$000) US$/t-ore Labor 2,004 0.674 Power 299 0.100 Consumables 1,406 0.473 Maintenance Materials 505 0.170 Other 89 0.030 Total Processing Cost 4,303 1.448 Source: SRK, 2017

Table 21-9: Major Element Process Cost for Crushed Ore Item LOM (US$000) US$/t-ore Labor 15,393 0.856 Power 4,448 0.247 Consumables 8,503 0.473 Maintenance Materials 8,449 0.470 Other 5,752 0.320 Total Processing Cost 42,545 2.367 Source: SRK, 2017

Labor costs are summarized in Table 21-10. Process labor costs are based on current actual manpower costs. Operating labor is factored up based on current manpower actual costs to reflect GRP’s anticipated increased manpower when the crushing and stacking systems are in place. Cost per ton is based on a nominal 3.6 Mt/y operating rate.

Table 21-10: Labor Cost Item Number of Persons Annual Costs (US$000) US$/t-ore Management (Staff/Supervisor) 6 704 0.20 Operating Labor (Including Maintenance) 15 2,095 0.58 Total 21 2,799 0.78 Source: SRK, 2017

Power cost estimates are summarized in Table 21-11. Power cost for the existing ROM operation, including ADR and leaching, refining, laboratory and administration, is based on current power expenses of approximately US$25,000/month. This cost is expected to be constant throughout the LOM. The estimated all-in power cost, including energy cost, demand cost, power factor adjustment and other fees, averages US$0.0843/kW-hr. Crushing and conveying power usage was estimated by GRP using Infomine Costmine.

Table 21-11: Power Cost Utility Power Item (US$000) (US$/t) Crushing (Crushing tons only) 2,806 0.1561 Leaching/ADR/Lab/Admin 1,940 $0.09 Total Power 4,747 $0.227 Source: GRP, 2017

The two major reagents consumed in the process are lime and sodium cyanide. Table 21-12 provides a LOM cost of consumables. The unit prices include tax and delivery to the Project site.

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Table 21-12: Cost of Consumables Consumable Consumption (lb/t) Unit Cost (US$/lb) (US$000) (US$/t) Cement 2.0 0.066 2,954 0.141 Sodium Cyanide 0.1 1.41 2,765 0.132 (1) Other consumables 2,095 0.100 Total Consumables 7,814 0.373 Source: SRK, 2017 (1) Other reagents include antiscalant, HCl, NaOH, carbon, propane and fluxes.

Maintenance costs were estimated by GRP using Infomine Costmine and information supplied by the equipment manufacturer. Repair and maintenance cost for crushing and leaching operations was estimated at US$0.30/ore ton crushed. Wear items for crushing and leaching were estimated at US$0.17/ton crushed.

Other costs include administration office costs, safety supplies, training and travel, consultants, maintenance contracts, light vehicle operating costs, other mobile equipment costs and a mercury disposal cost during the production period. The total LOM production cost is US$4.9 million or US$0.32/t ore processed.

Laboratory costs are included in General and Administrative.

21.2.4 General and Administrative Cost Estimate General and Administrative costs are estimated by GRP to average US$0.80/t ore crushed based on current manning levels and actual costs, which are expected to remain relatively constant through the life of the operation.

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22 Economic Analysis The financial results of this report have been prepared on an annual basis. All costs are in Q2 2017 US$.

22.1 Principal Assumptions and Input Parameters A financial model was prepared on an unleveraged, pre- and post-tax basis, the results of which are presented in this section. Key criteria used in this analysis are discussed in detail throughout this report. Financial assumptions used in this analysis are shown summarized in Table 22-1.

Table 22-1: Financial Assumption for Economic Modeling Model Parameter Technical Input Mine Life 6 years LOM Gold Price (US$/oz) $1,215 Operating Days per Year 360 Discount Rate 5.0% Source: SRK, 2017

The Project is currently in production. The mine will have a six-year life according to the Mineral Reserve described in this report.

Capital and operating costs are based on quotations and estimates in 2017 dollars. No inflation factors have been used in the economic projections. The analysis assumes static conditions for the gold market price over the six-year mine life. The gold price was set at US$1,200/oz. This price is slightly lower than the 36-month trailing average (US$1,215/oz) and lower than the current spot price, US$1265/oz.

22.2 Cash Flow Forecasts and Annual Production Forecasts The economic results, at a discount rate of 5%, indicate an NPV of US$33.7 million with an IRR of 60.4% after estimated taxes. Payback of 2017-2018 construction activities will be in 2.6 years from January 2017. The following provides the basis of the SRK LOM plan and economics:

• A mine life of 6+ years; • An overall average gold recovery rate of 72%; • An average operating cost of US$685 /Au oz-produced; • Going forward capital costs of US$30.4 million; • Mine closure cost estimate of US$12.7 million; • The analysis does not include any allowance for end of mine salvage value; and • No allowance for corporate overhead.

Table 22-2 shows the LOM production, ore grades, and contained metal used in the economic analysis.

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Table 22-2: Mine Production Summary

Item Value Units Mine Production Waste 28,091 kt Ore 20,949 kt Total Material 49,039 kt Stripping Ratio 1.34 waste:ore Avg. Daily Ore Capacity 10,000 t per day ROM Grade Gold 0.015 oz/t Contained Metal Gold 318.1 koz

Table 22-3 shows the LOM process tonnage, recoveries for from the heap leach operation, and recovered metal used in the economic analysis.

Table 22-3: Process Production Summary

Item Value Units Ore to Leach Pad 20,949 kt Avg. Daily Capacity 10,000 t/d Process Plant Contained Metal Gold 318.1 koz Recovery Gold 72% Recovered Metal Gold 230.0 koz

Table 22-4 contains the calculated Project cash flow and NPV at a 5% discount rate, with the IRR for the Project both with and without taxes.

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Table 22-4: Project Economic Results Description With Tax Without Tax (US$) (US$) Market Prices Gold (LOM Avg) /oz-Au $1,215 $1,215 Estimate of Cash Flow (all values in $000’s) Payable Metal Gold koz 229.8 229.8 Gross Revenue Gold $279,200 $279,200 Revenue $279,200 $279,200 Freight & Handling ($430) ($430) Gross Revenue $278,770 $278,770 Royalty ($11,151) ($11,151) Net Revenue $267,619 $267,619 Operating Costs $/t-ore Mining $4.48 $93,799 $93,799 Processing $2.24 $46,848 $46,848 G&A $0.80 $16,767 $16,767 Property & Net Proceeds Tax $0.24 $4,983 $4,983 Total Operating $7.75 $162,397 $162,397

Operating Margin (EBITDA) $105,222 $105,222 LOM Capital $42,705 $42,705 Income Tax $12,816 $0 Cash Flow Available for Debt Service $49,700 $62,517 NPV 5% $41,008 $51,605 IRR 62.7% 71.0%

Table 22-5 contains the LOM cash cost for the Project and cost per ton processed based on total revenue, total operating cost, and total operating margin.

Table 22-5: Cash Cost

Cash Costs Value Units Gold $1,215 per oz Leached Ore 20,949 kst Total Revenue Gold $279,200 US$000 Total Revenue $279,200 US$000 $/t-ore $13.33 Costs Refining and Transport $430 US$000 Royalty $11,151 US$000 Operating Costs $162,397 US$000 Cash Cost $173,978 US$000 $/t-ore $8.30 Margin Operating Margin $105,222 US$000 $/t-ore $5.02

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22.3 Taxes, Royalties and Other Interests GRP will be subject to the following taxes as they relate to the Project:

• Federal Income Tax; and • Nevada Net Proceeds of Mining Tax.

GRP is also subject to royalties as described in Section 22.3.2.

22.3.1 Federal Income Tax Corporate Federal income tax is determined by computing and paying the higher of a regular tax or a Tentative Minimum Tax (TMT). If the TMT exceeds the regular tax, the difference is called the Alternative Minimum Tax (AMT). Regular tax is computed by subtracting all allowable operating expenses, overhead, depreciation, and amortization from current year revenues to arrive at taxable income before depletion. There are two forms of depletion for tax purposes: (1) Cost depletion, which is based on a cost recovery concept, and (2) Percentage depletion, which is a statutory concept based upon gross income of the applicable property. Taxpayers are required to use the method which results in the greatest depletion deduction amount in each year. Depletion is subtracted from taxable income before depletion to arrive at taxable income. The tax rate is then determined from the published progressive tax schedule. An operating loss may be used to offset taxable income, thereby reducing taxes owed, in the previous three and following 15 years. The highest effective corporate income tax is 35%.

The AMT is determined in three steps. First, regular taxable income is adjusted by recalculating certain regular tax deductions, based on AMT laws, to arrive at AMT Income (AMTI). Second, AMTI is multiplied by 20% to determine TMT. Third, if TMT exceeds regular tax, the excess is the AMT amount payable in addition to the regular tax liability. An estimated AMT of US$28,000 is paid during the Project.

Federal taxation has been applied to the SRK Technical Economic Model using the following guidelines provided by GRP:

• Three-year and five-year Modified Accelerated Cost Recovery System (MACRS) tables. The seven-year MACRS table was used for the pre-production periods and for the first two years of production. The five-year table was used for the remainder of the Project; • Depreciable costs (examples include buildings, equipment, and mobile equipment) are deductible on MACRS depreciation; and • Reclamation costs were accrued over the life of the Project on a per ton mined basis.

22.3.2 Royalties GRP is subject to a complicated royalty agreement which takes into account prepayment and other factors. A simplified approach taken in this study was to apply a 4% NSR cost.

22.4 Sensitivity Analysis Based on sensitivities of Market Price, Operating costs, and Capital costs, Pan is most sensitive to changes in Market Price and least sensitive to Capital Costs. The overall sensitivity at 5% discount rate is detailed in Table 22-6 and illustrated in Figure 22-1.

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Table 22-6: Project Sensitivities

NPV (5%) US$000 85% 90% 95% 100% 105% 110% 115% Gold Price $15,649 $24,113 $32,514 $41,008 $49,265 $57,546 $65,823 Operating Cost $56,022 $51,052 $46,030 $41,008 $35,810 $30,641 $25,401 Capital Costs $46,673 $44,785 $42,896 $41,008 $39,119 $37,231 $35,342

Source: SRK, 2017 Figure 22-1: Project Sensitivities at 5% Discount Rate

Metal price sensitivity is presented in Table 22-7, with the base case of US$1,215/oz gold in bold text. Federal tax rate of 35% and Nevada Net Proceeds of Mine tax of 5% are constant, as well as the discount rate of 5%.

Table 22-7: Project Sensitivity to Metal Price

Gold US$/oz $1,000 $1,100 $1,215 $1,300 $1,400 Cash Flow, US$000 $15,956 $31,574 $49,700 $62,875 $78,408 NPV 5% US$000 $10,964 $25,026 $41,008 $52,561 $66,195 IRR 19.7% 39.4% 62.7% 80.7% 105.2% Payback (Years) 4.4 3.0 2.2 1.9 1.8 Source: SRK, 2017

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23 Adjacent Properties There are no significant properties adjacent to the Pan property.

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24 Other Relevant Data and Information There is no additional relevant technical or socio-economic information that SRK is aware of that would materially impact the conclusions of this report.

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25 Interpretation and Conclusions The operating plan is to achieve commercial production at Pan while continuing to expand resources and develop the exploration properties. The restart of Pan operations is well under way. GRP will continue to truck stack ore using the blending techniques described above until installation of the crushing and agglomerating circuit and radial stacker.

Significant improvements have been implemented as detailed above in Status of Exploration, Development and Operations. These include significant accomplishments and goals:

GRP intends to make capital improvements to Pan during calendar year 2017. As of March 31, 2017, Pan had approximately 2.00 M ft2 of leach pad area, capable of holding a total of approximately 5 Mt of additional ore. During the third and Q4 of fiscal year 2017, GRP will construct approximately 2.2 M ft2 of additional leach pad space capable of holding approximately an additional 11 Mt of ore. By Q1 of fiscal year 2018, GRP will complete the installation of a crushing and agglomerating circuit with on pad ore stacking. Significant goals are:

• Complete capital improvements at Pan, including expanding the heap leach pad in Q3 2017. • Adding a crushing and agglomeration circuit and radial stacker in early 2018. • Following construction of the crushing and agglomeration circuit and additional resource drilling, GRP will evaluate an increase the rate of mining operations potentially up to the 17,000 t/d of ore permitted capacity.

GRP also intends to commence the next phase of our resource expansion drill program in 2017 to 2018. Plans for the next two years:

• During calendar year 2017, GRP plans on conducting another drill program largely focused on replacing mined reserves and extending resources. • During calendar year 2018, GRP expects to execute an expanded drill program to both add to reserves and to begin testing targets away from the current mine areas.

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25.1 Exploration Sedimentary contacts and horizons have mineralization potential and many have not been tested. The Pan land package has potential for additional economic discoveries. Exploration targets should be included in future exploration expenditure, to increase the resource and replenish the reserves mined.

As production ramps up at Pan, it is important to conduct additional drilling to both replace reserves that are being mined and to maximize the mine life projections to create options for future financing. GRP Pan LLC has segregated exploration drilling at Pan into three groups:

• Infill or development drilling • Near Mine Targets • Property Targets

It is recommended that a multi-year multi-phase program of exploration drilling is planned that allow for the growth of the overall project resources and reserves. The program should be laid out utilizing a strategy of prioritizing targets nearest current production to reduce planning and development time as well as improve odds of success.

The recommended phase I program with cost estimate is shown in Section 26.1.

In addition to drilling, general exploration of areas away from current mining should be completed. Detailed geologic mapping and additional geochemical sampling may provide additional targets for future drilling.

25.2 Mineral Resource Estimate The 2017 mineral resource estimate for Pan was constrained by a 0.005 Au oz/t grade domain boundary and also within a potential open pit configuration built on conservative assumptions. The resource model honors structural, lithological and alteration boundaries and therefore has strong underlying geologic controls. There is overall potential, with additional drilling, to expand the resource within distances that would readily convert to reserves and extend the mine life using the existing infrastructure.

A detailed analysis of the grade distribution in the blastholes should be used to improve the local accuracy of the model. SRK did not use the blasthole data in the development of the block model. However, an inspection of these data in South Pan revealed important patterns in the grade distribution that, if applied to the resource model, would provide a basis for more accurate short term mine planning.

The patterns identified in blasthole grades suggest that in parts of South Pan, the relict stratigraphy is more dominant on grade distribution than are the major structures. Application of this trend in future modeling has the potential to increase tons and grades in parts of the South Fault and Stratigraphic mineral domains.

Suggestions for improving future resource estimates:

• Complete mine to model reconciliation to provide picture of model performance o Reconciliation should include review of spatial data distribution (blastholes vs Modeled grades) to determine models spatial accuracy and determine more precise search parameters and better drillhole spacing.

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• Collect information to improve alteration model so the model can be better utilized during mining for the planning for mixing ore types to maximize gold production.

25.3 Mining and Mineral Reserve A detailed pit optimization analysis should be performed to maximize the NPV of the deposit at the projected reserve prices. This work should include analysis of the effect of ramps on the pit slopes, especially in the smaller pits where a greater discrepancy was seen between the LG pits and the final design.

Pit slopes should be evaluated for internal phases to see if there is opportunity to steepen them. This will push some waste mining back in the production schedule and improve the project economics.

Generally, SRK considers the mine plan to be conservative. Therefore, additional refinement to the mine plan should improve the economic projections of the operation.

25.4 Metallurgy and Processing SRK recommends that additional column test work be carried out to ensure that the prescribed blend of hard and soft ores performs as expected. Recovery is critical to the economic success of the project and while each of the principal ore types has been characterized individually, the combination of materials as they are planned to be crushed, blended and stacked has not yet been fully tested. The Company must ensure sufficient percolation during irrigation to confirm recovery projections.

Complete construction of the phase 2 leach pad expansion in 2017 to provide sufficient leach pad for uninterrupted leach cycles and gold production.

Based on review of the results it is recommended that the mine proceed with the installation and operation of a crushing, agglomeration and stacking circuit as was proposed in 2011. This will allow closer control of the rock to clay blending ratio, improve gold recovery over ROM ores, improve agglomeration of clays that will improve permeability and the rate of gold recovery and reduce the risks of heap compaction by eliminating heavy equipment operation on the heaps.

25.5 Projected Economic Outcomes Capital were developed from primarily from vendor quotations and from 2015 construction costs, inflated for current conditions operating costs were developed from current mining contract and current operating costs. Where vendor quotes were not available third-party cost source, such as Infomine were used. In some instances, SRK developed cost estimated. Capital and operating 2017 dollars. No inflation factors have been used in the economic projections

The analysis assumes static conditions for the gold market price over the mine life. The gold price was set at US$1,215/oz. NPV of the Project is US$41.0 million a discount rate of 5% with an IRR of 62.7% (after estimated taxes). Payback will be in 2.2 years from the start of production. the mine is currently in production. Capital costs of the Project total US$42.7 million, Sustaining capital over the LOM of US$30.0 million. Mine closure cost estimate, including contingency, of US$12.7 million. The analysis does not include any allowance for end of mine salvage value and no allowance for corporate overhead. The LOM average cash cost is US$685/Au oz produced.

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The Pan mine is economically viable at current gold prices and has significant economic potential given the possibility for higher gold prices in the future. Additionally, there is opportunity to expand the reserve through additional drilling. Cost improvements are also possible.

Financing and Liquidity – In order to develop and operate the project the company will have to raise the required financing. There is risk associated with an inability to raise the funds necessary to upgrade and continue the Pan operation.

25.6 Foreseeable Impacts of Risks Gold prices are volatile and there is no guarantee that GRP will receive the gold price as used in the economics.

Compacted permeability tests on agglomerated ore need to be run to determine if there will be sufficient permeability in the leach pad. If the agglomerated ore does not have sufficient strength, the permeability of the stack could be adversely affected, causing the pad to “blind off” and reduce the overall recovery to below economic level from the incomplete contact of ore with leaching solution.

If the agglomerated ore does not have sufficient strength at the planned height for the leach pad, more leach pad will have to be constructed to handle the planned ore volume. This will increase the capital required for leach pad construction in the future.

There is a risk of heap blinding if the blending ratios of rock to clay ore are not carefully monitored and adhered to. The operation should continue the current stacking practices for ROM ore on the leach pad to minimize the risk of blinding. The planned crushing, agglomeration and belt stacking should reduce the risk of permeability loss in the leach pad if properly operated and monitored.

Changes in government regulations could adversely impact the future growth and operation of the facilities.

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26 Recommendations 26.1 Recommended Work Programs and Costs Priorities for work program are as follows:

1. 2017 Leach pad construction,

2. Pan exploration, metallurgical and geotechnical drilling;

3. Metallurgical testing, and

4. Crushing, agglomeration and stacking system.

Details of the drilling programs and costs are presented in Table 26-1. A summary of all recommended work and costs is presented in Table 26-2. The funding of the crushing system will be dependent on the results of the exploration program, the metallurgical testing, and funding.

Leach Pad Expansions Leach pad expansion in 2017 is necessary for continued mining operations. This work is scheduled to begin in the 3rd quarter of 2017.

Based on the current production schedule, additional leach pad expansion will be required in 2019.

Exploration and Drilling Throughout the Pan Property boundary, sedimentary horizons and contacts have the potential to be mineralized but remain untested. Future exploration should test stratigraphic and structural targets outlined in Section 9.3. Phased exploration programs including surface mapping and sampling, followed by drilling, are suggested over several years. An estimated budget for the first year of Property exploration is summarized in Table 26-1. Future annualized budgets for exploration would depend on the results of the initial program and availability of resources, but would also be US$3 to 5 million.

Table 26-1: Exploration Recommendations and Cost Estimate Program Method Estimated Cost Test known near-mine targets 50,000 ft of RC drilling $2,000,000 Investigate 3 to 5 step-out targets Geologic mapping, denser soil grid, $50,000 additional rock sampling Exploration or follow-up drilling of 3 to 5 12,000 ft of RC Drilling $450,000 property targets Pit slope geotechnical drilling and 6,250 ft of Core drilling $500,000 metallurgical drilling Total $3,000,000 Source: GRP, 2017

For future drilling programs, SRK recommends a method to track assay QA/QC sample results and follow up with the lab in real time. Several software solutions are available, at a range of price points. Many of the geological data management software packages can organize and plot QA/QC sample results automatically.

Duplicate pulp samples from coarse reject samples assess the heterogeneity of the crushed sample and are useful to verify the adequacy of crushing before splitting for pulverization. A set of duplicate

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pulp samples, one every 25th drill sample, would also be suitable to send to a second laboratory for check analysis. By using the duplicate samples, the primary pulp samples would remain for additional test work.

To correct observed discrepancies, the assay database should be updated with the reported values for each sample, and averaged values for samples with a duplicate should be eliminated. If any values in the existing database are corrected, that process should be documented and summarized in a future Technical Report.

Metallurgical Testing SRK recommends that additional column test work be carried out to ensure that the prescribed blend of hard and soft ores performs as expected. Recovery is critical to the economic success of the project and while each of the principal ore types has been characterized individually, the combination of materials as they are planned to be crushed, blended and stacked has not yet been fully tested. The Company must ensure sufficient percolation during irrigation to confirm recovery projections.

Crushing, Agglomeration and Stacking System Based on current knowledge, SRK strongly recommends the implementation of a crushing, agglomeration and conveyor stacking system. However, based on the planned exploration and metallurgical testwork and the availability of funding, it will be management’s decision on how to proceed with the crushing system.

Mining The current pit designs may not maximize NPV. SRK recommends that affects pit ramps be incorporated into the future LG analysis. The mine has the personnel capable of doing this analysis in-house.

Mining is currently being done by a mining contractor on a Time and Material (T&M) basis. This has proved to be cost effective, especially when compared to the mining contract from the previous operation. T&M contracts take additional management from the Owner. To date, this management has proved to be adequate to meet production targets at reasonable costs. To better track and project future costs, SRK recommends the contractor be directed to split billed costs into categories of work (mining, leach pad operations, feeding crusher, individual special projects, construction by projects). Current management fees should cover the contractors cost for this costing split.

If future pit and WRDA designs are no longer similar to the designs in the Golder stability analysis, SRK recommends that additional stability analysis be completed.

26.1.1 Costs A summary of cost for the recommendations, in order of priority, are included in Table 26-2.

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Table 26-2: Summary of Costs for Recommended Work, 2017-2018 Area Cost Estimate (US$) Leach Pad Expansion - 2017 $6,900,000 Exploration Drilling $3,000,000 Metallurgical Testing $750,000 Crushing, Agglomeration and Stacking System $14,400,000

In addition to the recommended work shown in Table 26-2, the leach pad expansion in 2019 is estimated to cost US$2,600,000.

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27 References CIM (2014). Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Reserves: Definitions and Guidelines, May 10, 2014.

AAL, 2017. American Assay Labs website and Services Brochure: www.aallabs.com Accessed 14 February 2017.

Berkman, 1989. Field Geologists Manual. The Australasian Institute of Mining and Metallurgy (AusIMM) Monograph 9, Third Edition. 382 pages.

BLM, 2013. Pan Mine Final Environmental Impact Statement Volume I and II, November 2013. https://eplanning.blm.gov/epl-front- office/eplanning/planAndProjectSite.do?methodName=dispatchToPatternPage¤tPageId=4041 3 Accessed May, 2017.

BLM, 2015. Record of Decision and Approved Resource Management Plan Amendments for the Great Basin Region, Including the Greater Sage-Grouse Sub-Regions of Idaho and Southwestern Montana, Nevada and northeastern California, Oregon, and Utah. September 2015.

Golder Associates, 2011. Pre-feasibility Level Pit Slope Evaluation, Pan Project, White Pine County, Nevada, prepared for Midway Gold Corp. and dated April 2011. (Project 103-91724). Golder Associates: Reno, NV

Gustavson, 2011. NI 43-101 Technical Report, Feasibility Study for the Pan Gold Project, White Pine County, Nevada. Prepared for Midway Gold, by Gustavson Associates, L.L.C., Lakewood, Colorado, 15 November 2011, 204 pages.

Gustavson, 2015. NI 43-101 Technical Report, 2015 Feasibility Study for the Pan Gold Project, White Pine County, Nevada. Prepared for Midway Gold, by Gustavson Associates, L.L.C., Lakewood, Colorado, 25 June 2015, 275 pages.

Interralogic, 2013. Waste Rock Management Plan, Pan Project, Nevada. Prepared for Midway Gold US Inc. and dated December 2013.

MDA, 2005. Pan Gold Project, Updated Technical Report, White Pine County, Nevada, USA. Prepared for Castleworth Ventures, Inc. by Mine Development Associates Mine Engineering Services, Reno, Nevada, January 2005.

Midway, 2013. Pan Mine Plan of Operations and Reclamation Permit Application, December 2013.

NDEP, 2016. Nevada Standardized Reclamation Cost Estimator (SRCE). Updated annually. Current version at http://www.nvbond.org/about.htm.

NDEP, BLM, and USFS. 2016. Attachment B --Nevada Guidelines for Successful Revegetation for the Nevada Division of Environmental Protection, the Bureau of Land Management, and the USDA. Forest Service. Available from NDEP online: https://ndep.nv.gov/bmrr/reveg.pdf (April 17, 2017).

Nolan, T. B., C. W. Merriam, and M. C. Blake Jr., 1974. Geologic map of the Pinto Summit quadrangle, Eureka and White Pine Counties, Nevada. USGS Map I-793. One plate.

Smith, R.M., 1976. Part II, Mineral Resources, in Geology and Mineral Resources of White Pine County, Nevada, Nevada Bureau of Mines and Geology, Bulletin 85.

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Western Regional Climate Center, 2009. Climatological Summary for Eureka, Nevada, September 1997 to December 2008: http://www.wrcc.dri.edu/summary/p68.nv.html Accessed 26 April 2017.

Williams, T. 2017. Email to V. Sawyer dated March 20, 2017.

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28 Glossary The Mineral Resources and Mineral Reserves have been classified according to CIM (CIM, 2014). Accordingly, the Resources have been classified as Measured, Indicated or Inferred, the Reserves have been classified as Proven, and Probable based on the Measured and Indicated Resources as defined below.

28.1 Mineral Resources A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.

A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.

28.2 Mineral Reserves A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.

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The reference point at which Mineral Reserves are defined, usually the point where the ore is delivered to the processing plant, must be stated. It is important that, in all situations where the reference point is different, such as for a saleable product, a clarifying statement is included to ensure that the reader is fully informed as to what is being reported. The public disclosure of a Mineral Reserve must be demonstrated by a Pre-Feasibility Study or Feasibility Study.

A Probable Mineral Reserve is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proven Mineral Reserve.

A Proven Mineral Reserve is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors.

28.3 Definition of Terms The following general mining terms may be used in this report.

Table 28-1: Definition of Terms Term Definition Assay The chemical analysis of mineral samples to determine the metal content. Capital Expenditure All other expenditures not classified as operating costs. Composite Combining more than one sample result to give an average result over a larger distance. Concentrate A metal-rich product resulting from a mineral enrichment process such as gravity concentration or flotation, in which most of the desired mineral has been separated from the waste material in the ore. Crushing Initial process of reducing ore particle size to render it more amenable for further processing. Cut-off Grade (CoG) The grade of mineralized rock, which determines as to whether or not it is economic to recover its gold content by further concentration. Dilution Waste, which is unavoidably mined with ore. Dip Angle of inclination of a geological feature/rock from the horizontal. Fault The surface of a fracture along which movement has occurred. Footwall The underlying side of an orebody or stope. Gangue Non-valuable components of the ore. Grade The measure of concentration of gold within mineralized rock. Hangingwall The overlying side of an orebody or slope. Haulage A horizontal underground excavation which is used to transport mined ore. Hydrocyclone A process whereby material is graded according to size by exploiting centrifugal forces of particulate materials. Igneous Primary crystalline rock formed by the solidification of magma. Kriging An interpolation method of assigning values from samples to blocks that minimizes the estimation error. Level Horizontal tunnel the primary purpose is the transportation of personnel and materials. Lithological Geological description pertaining to different rock types. LOM Plans Life-of-Mine plans. LRP Long Range Plan. Material Properties Mine properties. Milling A general term used to describe the process in which the ore is crushed and ground and subjected to physical or chemical treatment to extract the valuable metals to a concentrate or finished product. Mineral/Mining Lease A lease area for which mineral rights are held. Mining Assets The Material Properties and Significant Exploration Properties. Ongoing Capital Capital estimates of a routine nature, which is necessary for sustaining operations. Ore Reserve See Mineral Reserve.

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Term Definition Pillar Rock left behind to help support the excavations in an underground mine. ROM Run-of-Mine. Sedimentary Pertaining to rocks formed by the accumulation of sediments, formed by the erosion of other rocks. Shaft An opening cut downwards from the surface for transporting personnel, equipment, supplies, ore and waste. Sill A thin, tabular, horizontal to sub-horizontal body of igneous rock formed by the injection of magma into planar zones of weakness. Smelting A high temperature pyrometallurgical operation conducted in a furnace, in which the valuable metal is collected to a molten matte or doré phase and separated from the gangue components that accumulate in a less dense molten slag phase. Stope Underground void created by mining. Stratigraphy The study of stratified rocks in terms of time and space. Strike Direction of line formed by the intersection of strata surfaces with the horizontal plane, always perpendicular to the dip direction. Sulfide A sulfur bearing mineral. Tailings Finely ground waste rock from which valuable minerals or metals have been extracted. Thickening The process of concentrating solid particles in suspension. Total Expenditure All expenditures including those of an operating and capital nature. Variogram A statistical representation of the characteristics (usually grade).

28.4 Abbreviations The following abbreviations may be used in this report.

Table 28-2: Abbreviations Abbreviation Unit or Term ° degree AAL American Assay Labs AAS Atomic Absorption Spectrometry ABA acid-base accounting ADR adsorption-desorption-recovery Ag silver AMT Alternative Minimum Tax AMTI Alternative Minimum Tax Income Approved Resource Management Plan Amendments for the Great ARMPA Basin Region Au gold BE break-even BGEPA Bald and Golden Eagle Protection Act BLM United States Department of the Interior Bureau of Land Management BMP best management practices C-I-C carbon-in-column CIM Canadian Institute of Mining, Metallurgy and Petroleum cm cenitmeter cm3 cubic centimeter CNAA cyanide-soluble atomic absorption CoG Cut-off Grade CPPs Cumulative Probability Plots CRM Certified Reference Material CSV comma-separated values Cu copper EBITDA earnings before interest, tax, depreciation and amortization EDC engineering design change EIS environmental impact statement ET evapotranspiration

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Abbreviation Unit or Term FA fire assays FoS factors of safety FS 259easibility study ft2 square feet G&A general and administrative g fram g/L grams per liter gal gallon gpm gallons per minute ICP-MS Inductively Coupled Plasma Mass Spectroscopy ID2 Inverse Distance Squared IRR Internal Rate of Return KCA Kappas, Cassiday and Associates kg/mt kilograms per metric ton KOP Key Observation Point koz thousand troy ounce kt thousand tons kV kilovolt L liter lbs pounds LCY loose cubic yard LECO LECO elemental analyzers – LECO Corporation LG Lerchs-Grossmann LMDL lower method detection limit LOM life-of-mine M million MACRS Modified Accelerated Cost Recovery System MDW Midway Gold Corp. mg/L milligrams per liter Midway Midway Gold Corp. ML metals leaching Mn manganese MSEP MineSight Economic Planner MSEP MineSight Economic Planner Mt/y million tons per year MWMP meteoric water mobility procedure NAC Nevada Administrative Code NaCN Sodium cyanide Nevada Division of Environmental Protection-Bureau of Mining NDEP-BMRR Regulation and Reclamation NDEQ Nevada Department of Environmental Quality NDOT Nevada Department of Transportation NDOW Nevada Department of Wildlife NEPA National Environmental Policy Act NI 43-101 National Instrument 43-101 NPV Net Present Value NRHP National Register of Historic Places NSR Net Smelter Royalty oz ounces oz/st ounces per standard ton PAG potentially acid generating Pan Pan Gold Project Pb lead PE Phillips Enterprises LLC ppm parts per million PSHA Probabilistic Seismic Hazard Analysis Q quarter QA/QC Quality Assurance/ Quality Control QMS Quality Management System

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Abbreviation Unit or Term RDi Resource Development Corp. ROD Record of Decision ROM run-of-mine SEC U.S. Securities and Exchange Commission sec second SRCE Nevada Standardized Reclamation Cost Estimator SRK SRK Consulting (U.S.), Inc. ST standard ton t tons T&M Time and Materials t/d tons per day TMT Tentative Minimum Tax USACE U.S. Army Corps of Engineers USDA United States Department of Agriculture USFS United States Forest Service USFWS United States Fish and Wildlife Service V volt VA volt-amperes WRDA Waste Rock Disposal Areas XRD X-ray diffraction (XRD XRF X-ray fluorescence

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Appendices

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Appendix A: Certificates of Qualified Persons

JP/MLM PanProject_NI43-101_493800-050_Rev16_TmP.docx July 2017 SRK Consulting (U.S.), Inc. 5250 Neil Road, Suite 300 Reno, NV 89502

T: (775) 828-6800 F: (775) 828-6820 [email protected] www.srk.com

CERTIFICATE OF QUALIFIED PERSON

I, Brooke J. Miller, M.Sc., CPG, do hereby certify that: 1. I am a Senior Consultant of SRK Consulting (U.S.), Inc., 5250 Neil Road, Suite 300, Reno, Nevada, USA, 89502. 2. This certificate applies to the technical report titled “NI 43-101 Updated Technical Report, Pan Gold Project, White Pine County, Nevada” with an Effective Date of June 30, 2017 (the “Technical Report”). 3. I graduated with a Bachelor of Arts degree in Geology from Lawrence University in 2002 and a Master of Science degree in Geological Sciences from The University of Oregon in 2004. I am a Certified Professional Geologist of the American Association of Professional Geologists (AIPG). I have worked as a Geologist for a total of 11 years since my graduation from university. My relevant experience includes mining and exploration geology. 4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 5. I visited the Pan Mine property on November 17, 2016 for 2 days. 6. I am responsible Sections 2, 3, 4, 5, 6, 9, 10, 11, 12, 23, and 24. 7. I am independent of Fiore Exploration Ltd and GRP Minerals Corp. applying all of the tests in section 1.5 of NI 43-101. 8. I have not had prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form. 10. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 7th Day of August, 2017.

“Signed and Sealed” Brooke J. Miller

U.S. Offices: Canadian Offices: Group Offices: Anchorage 907.677.3520 Saskatoon 306.955.4778 Africa Denver 303.985.1333 Sudbury 705.682.3270 Asia Elko 775.753.4151 Toronto 416.601.1445 Australia Fort Collins 970.407.8302 Vancouver 604.681.4196 Europe Reno 775.828.6800 Yellowknife 867.873.8670 North America Tucson 520.544.3688 South America

SRK Consulting (US) Inc. 5250 Neil Road, Suite 300 Reno, Nevada 89502

T: (775) 828-6800 F: (775) 828-6820

[email protected] www.srk.com

CERTIFICATE OF QUALIFIED PERSON

I, J.B. Pennington, M.Sc., C.P.G., do hereby certify that: 1. I am Principal Mining Geologist of SRK Consulting (U.S.), Inc., 5250 Neil Road, Suite 300, Reno, Nevada 89502. 2. This certificate applies to the technical report titled “NI 43-101 Updated Technical Report, Pan Gold Project, White Pine County, Nevada” with an Effective Date of June 30, 2017 (the “Technical Report”). 3. I graduated with a Bachelor of Science Degree in Geology from Tulane University, New Orleans, La., USA; May 1985; and a Master of Science Degree in Geology from Tulane University, New Orleans, La., USA; May 1987. I am a Certified Professional Geologist through membership in the American Institute of Professional Geologists, C.P.G. #11245. I have been employed as a geologist in the mining and mineral exploration business, continuously, for the past 30 years, since my undergraduate graduation from university. My relevant experience for the purpose of the Technical Report is: • Project Geologist, Archaen gold exploration with Freeport-McMoRan Australia Ltd. Perth Australia, 1987-1989; • Exploration Geologist, polymetallic regional exploration, Freeport-McMoRan Inc; Papua, Indonesia, 1990-1994; • Chief Mine Geologist, mine geology and resource estimation, Grasberg Cu-Au Deposit, Freeport- McMoRan Inc, Papua, Indonesia 1995-1998; • Corporate Strategic Planning: Geology and Resources, Freeport-McMoRan Inc., New Orleans, LA., 1999; • Independent Consultant: Geology, Steamboat Springs, CO., 2000; • Senior Geologist, environmental geology and mine closure, MWH Consulting, Inc., Steamboat Springs, CO., 2000-2003; • Principal Mining Geologist, precious and base metal exploration, resource modeling, and mine development, SRK Consulting (U.S.), Inc., 2004 to present; • Experience in the above positions working with, reviewing and conducting resource estimation and feasibility studies in concert with mining and process engineers; and • As a consultant, I have participated in the preparation of NI 43-101 Technical reports from 2006- 2017. 4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 5. I visited the Pan Mine property on 17 November 2016 for 2 days. 6. I am responsible for Sections 7, 8, and 14 of the Technical Report. 7. I am independent of Fiore Exploration Ltd and GRP Minerals Corp. applying all of the tests in section 1.5 of NI 43-101. 8. I have not had prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form.

U.S. Offices: Canadian Offices: Group Offices: Anchorage 907.677.3520 Saskatoon 306.955.4778 Africa Clovis 559.452.0182 Sudbury 705.682.3270 Asia Denver 303.985.1333 Toronto 416.601.1445 Australia Elko 775.753.4151 Vancouver 604.681.4196 Europe Fort Collins 970.407.8302 Yellowknife 867.873.8670 North America Reno 775.828.6800 South America Tucson 520.544.3688

SRK Consulting (U.S.), Inc. Page 2

10. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 7th Day of August, 2017.

” Signed and Sealed” C.P.G. # 11245 J.B. Pennington, M.Sc., C.P.G.

QP_Cert_Pennington_20170706_Rev02_jbp.docx SRK Consulting (US) Inc. 5250 Neil Road, Suite 300 Reno, Nevada 89502

T: (775) 828-6800 F: (775) 828-6820

[email protected] www.srk.com

CERTIFICATE OF QUALIFIED PERSON

I, Justin Smith, B.Sc., P.E., SME-RM, do hereby certify that: 1. I am Mining Engineer of SRK Consulting (U.S.), Inc., 5250 Neil Road, Suite 300, Reno, Nevada 89502. 2. This certificate applies to the technical report titled “NI 43-101 Updated Technical Report, Pan Gold Project, White Pine County, Nevada” with an Effective Date of June 30, 2017 (the “Technical Report”). 3. I graduated with a B.Sc. degree in Mining Engineering from the Colorado School of Mines in 2009. I am a licensed Professional Mining Engineer in the State of Nevada, license # 23214. In addition, I am a Registered Member of the Society for Mining, Metallurgy and Exploration, registered member # 4152085RM. I have worked as a Mining Engineer for a total of eight years since my graduation from university. My relevant experience includes assisting with resource modeling and mine planning at several disseminated gold operations in Nevada. Additionally, I have been a contributor to several precious and base metal technical reports in Nevada, Alaska, Arizona, Nebraska, Idaho, and internationally. 4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 5. I visited the Pan Mine property on November 17, 2016 for 2 days. 6. I am responsible for Sections 15 and 16 of the Technical Report. 7. I am independent of Fiore Exploration Ltd and GRP Minerals Corp. applying all of the tests in section 1.5 of NI 43-101. 8. I have not had prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form. 10. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 7th Day of August, 2017.

“Signed and Sealed”

Justin Smith, B.Sc., P.E., SME-RM

SRK Consulting (U.S.), Inc. 5250 Neil Road, Suite 300 Reno, NV 89502

T: (775) 828-6800 F: (775) 828-6820 [email protected] www.srk.com

CERTIFICATE OF QUALIFIED PERSON

I, Kent W. Hartley, P.E. Mining, BSc, do hereby certify that: 1. I am Principal Consultant of SRK Consulting (U.S.), Inc., 5250 Neil Road, Suite 300, Reno, NV 89502. 2. This certificate applies to the technical report titled “NI 43-101 Updated Technical Report, Pan Gold Project, White Pine County, Nevada” with an Effective Date of June 30, 2017 (the “Technical Report”). 3. I graduated with a degree in Mining Engineering from Michigan Technological University in 1979. I have worked as an Engineer for a total of 36 years since my graduation from university. My relevant experience includes mine planning and project engineering at a number of open pit and underground mines as well as construction management and cost estimating experience. I am a registered Professional Engineer in Nevada, license number 021612. 4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 5. I visited the Pan Mine property on February 28, 2017 for 2 days. 6. I am responsible for Sections 1, 18, 19, 21, 22, 25 and 26 , of the Technical Report. 7. I am independent of Fiore Exploration Ltd and GRP Minerals Corp. applying all of the tests in section 1.5 of NI 43-101. 8. I have not had prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and Form 43-101-F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form. 10. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 7th Day of August, 2017.

“Signed and Sealed”

Kent W. Hartley, P.E. Mining, BSc

SRK Consulting (U.S.), Inc. 5250 Neil Road, Suite 300 Reno, NV 89502

T: (775) 828-6800 F: (775) 828-6820 [email protected] www.srk.com

CERTIFICATE OF QUALIFIED PERSON

I, Valarie Sawyer, B Sc., SME RM, do hereby certify that: 1. I am Principal Consultant/Practice Leader of SRK Consulting (U.S.), Inc., Suite 520, 1250 Lamoille Highway, Elko, NV, 89801, USA. 2. This certificate applies to the technical report titled “NI 43-101 Updated Technical Report, Pan Gold Project, White Pine County, Nevada” with an Effective Date of June 30, 2017 (the “Technical Report”). 3. I graduated with a degree in Metallurgical Engineering from Michigan Technological University in 1981. I am a Registered Member of the SME. I have worked as an engineer, environmental specialist and consultant for a total of 36 years since my graduation from university. My relevant experience includes metallurgical engineering and environmental compliance and permitting. 4. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 5. I visited the Pan Mine property on January 14, 2014 for 1 day. 6. I am responsible for Section 20 of the Technical Report. 7. I am independent of Fiore Exploration Ltd and GRP Minerals Corp. applying all of the tests in section 1.5 of NI 43-101. 8. I have had prior involvement with the property that is the subject of the Technical Report. The nature of my prior involvement is preparing an exploration plan of operations and environmental assessment when the site was owned by Castleworth Ventures and preparing a mining plan of operations (Midway). 9. I have read NI 43-101 and Form 43-101F1 and the sections of the Technical Report I am responsible for have been prepared in compliance with that instrument and form. 10. As of the aforementioned Effective Date, to the best of my knowledge, information and belief, the sections of the Technical Report I am responsible for contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 7th Day of August, 2017. SRK Consulting (U.S.), Inc.

“Signed and Sealed” Valarie Sawyer, B Sc., SME RM

SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendices

Appendix B: Mineral Claims

JP/MLM PanProject_NI43-101_493800-050_Rev16_TmP.docx July 2017 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC1031802 PR 1 8/31/2017 Nevada Royalty Corp. NMC1031803 PR 2 8/31/2017 Nevada Royalty Corp. NMC1031804 PR 3 8/31/2017 Nevada Royalty Corp. NMC1031805 PR 4 8/31/2017 Nevada Royalty Corp. NMC1031806 PR 5 8/31/2017 Nevada Royalty Corp. NMC1031807 PR 6 8/31/2017 Nevada Royalty Corp. NMC1031808 PR 7 8/31/2017 Nevada Royalty Corp. NMC1031809 PR 8 8/31/2017 Nevada Royalty Corp. NMC1031810 PR 9 8/31/2017 Nevada Royalty Corp. NMC1057236 PC 1 8/31/2017 Nevada Royalty Corp. NMC1057237 PC 2 8/31/2017 Nevada Royalty Corp. NMC1057238 PC 3 8/31/2017 Nevada Royalty Corp. NMC1057239 PC 4 8/31/2017 Nevada Royalty Corp. NMC1057240 PC 5 8/31/2017 Nevada Royalty Corp. NMC1057241 PC 6 8/31/2017 Nevada Royalty Corp. NMC1057242 PC 7 8/31/2017 Nevada Royalty Corp. NMC1057243 PC 8 8/31/2017 Nevada Royalty Corp. NMC1057244 PC 9 8/31/2017 Nevada Royalty Corp. NMC1057245 PC 10 8/31/2017 Nevada Royalty Corp. NMC1057246 PC 11 8/31/2017 Nevada Royalty Corp. NMC1057247 PC 12 8/31/2017 Nevada Royalty Corp. NMC1057248 PC 13 8/31/2017 Nevada Royalty Corp. NMC1057249 PC 14 8/31/2017 Nevada Royalty Corp. NMC1057250 PC 15 8/31/2017 Nevada Royalty Corp. NMC1057251 PC 16 8/31/2017 Nevada Royalty Corp. NMC1057252 PC 17 8/31/2017 Nevada Royalty Corp. NMC1057253 PC 18 8/31/2017 Nevada Royalty Corp. NMC1057254 PC 20 8/31/2017 Nevada Royalty Corp. NMC1102847 NC 125 8/31/2017 Nevada Royalty Corp. NMC1102848 NC 134 8/31/2017 Nevada Royalty Corp. NMC1102849 PAN 114 8/31/2017 Nevada Royalty Corp. NMC1102850 PAN 121 8/31/2017 Nevada Royalty Corp. NMC1102851 LAT 48 8/31/2017 Nevada Royalty Corp. NMC205565 PAN #119 8/31/2017 Nevada Royalty Corp. NMC37169 PAN # 37 8/31/2017 Nevada Royalty Corp. NMC37170 PAN # 38 8/31/2017 Nevada Royalty Corp. NMC37172 PAN # 63 8/31/2017 Nevada Royalty Corp. NMC37173 PAN # 65 8/31/2017 Nevada Royalty Corp. NMC37174 PAN # 67 8/31/2017 Nevada Royalty Corp. NMC37175 PAN # 69 8/31/2017 Nevada Royalty Corp. NMC427129 PE #50 8/31/2017 Nevada Royalty Corp. NMC427131 PE #52 8/31/2017 Nevada Royalty Corp. NMC427133 PE #54 8/31/2017 Nevada Royalty Corp.

Page 1 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC57946 PAN # 71 8/31/2017 Nevada Royalty Corp. NMC57947 PAN # 72 8/31/2017 Nevada Royalty Corp. NMC57948 PAN # 73 8/31/2017 Nevada Royalty Corp. NMC57949 PAN # 74 8/31/2017 Nevada Royalty Corp. NMC61102 PAN # 22 8/31/2017 Nevada Royalty Corp. NMC61103 PAN # 23 8/31/2017 Nevada Royalty Corp. NMC61104 PAN # 24 8/31/2017 Nevada Royalty Corp. NMC61105 PAN # 25 8/31/2017 Nevada Royalty Corp. NMC61106 PAN # 26 8/31/2017 Nevada Royalty Corp. NMC61107 PAN # 27 8/31/2017 Nevada Royalty Corp. NMC61108 PAN # 28 8/31/2017 Nevada Royalty Corp. NMC61114 PAN # 34 8/31/2017 Nevada Royalty Corp. NMC61115 PAN # 35 8/31/2017 Nevada Royalty Corp. NMC61116 PAN # 36 8/31/2017 Nevada Royalty Corp. NMC630283 PA 8A 8/31/2017 Nevada Royalty Corp. NMC630284 PA 10 8/31/2017 Nevada Royalty Corp. NMC630285 PA 12 8/31/2017 Nevada Royalty Corp. NMC630286 PA 13 8/31/2017 Nevada Royalty Corp. NMC630287 PA 14 8/31/2017 Nevada Royalty Corp. NMC630288 PA 15 8/31/2017 Nevada Royalty Corp. NMC630289 PA 16 8/31/2017 Nevada Royalty Corp. NMC630290 PA 17 8/31/2017 Nevada Royalty Corp. NMC630291 PA 18 8/31/2017 Nevada Royalty Corp. NMC630323 PA 49A 8/31/2017 Nevada Royalty Corp. NMC815131 LAT 9 8/31/2017 Nevada Royalty Corp. NMC815132 LAT 10 8/31/2017 Nevada Royalty Corp. NMC815133 LAT 11 8/31/2017 Nevada Royalty Corp. NMC815134 LAT 12 8/31/2017 Nevada Royalty Corp. NMC815135 LAT 13 8/31/2017 Nevada Royalty Corp. NMC815136 LAT 14 8/31/2017 Nevada Royalty Corp. NMC815137 LAT 15 8/31/2017 Nevada Royalty Corp. NMC815138 LAT 16 8/31/2017 Nevada Royalty Corp. NMC815139 LAT 17 8/31/2017 Nevada Royalty Corp. NMC815140 LAT 18 8/31/2017 Nevada Royalty Corp. NMC815141 LAT 19 8/31/2017 Nevada Royalty Corp. NMC815142 LAT 20 8/31/2017 Nevada Royalty Corp. NMC815143 LAT 21 8/31/2017 Nevada Royalty Corp. NMC815144 LAT 22 8/31/2017 Nevada Royalty Corp. NMC815145 LAT 23 8/31/2017 Nevada Royalty Corp. NMC815146 LAT 24 8/31/2017 Nevada Royalty Corp. NMC815147 LAT 25 8/31/2017 Nevada Royalty Corp. NMC815148 LAT 26 8/31/2017 Nevada Royalty Corp. NMC815149 LAT 27 8/31/2017 Nevada Royalty Corp.

Page 2 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC815150 LAT 28 8/31/2017 Nevada Royalty Corp. NMC815151 LAT 29 8/31/2017 Nevada Royalty Corp. NMC815152 LAT 30 8/31/2017 Nevada Royalty Corp. NMC815153 LAT 31 8/31/2017 Nevada Royalty Corp. NMC815154 LAT 32 8/31/2017 Nevada Royalty Corp. NMC815155 LAT 33 8/31/2017 Nevada Royalty Corp. NMC815156 LAT 34 8/31/2017 Nevada Royalty Corp. NMC815157 LAT 35 8/31/2017 Nevada Royalty Corp. NMC815158 LAT 36 8/31/2017 Nevada Royalty Corp. NMC815159 LAT 37 8/31/2017 Nevada Royalty Corp. NMC815160 LAT 38 8/31/2017 Nevada Royalty Corp. NMC815161 LAT 40 8/31/2017 Nevada Royalty Corp. NMC815162 LAT 42 8/31/2017 Nevada Royalty Corp. NMC815163 LAT 44 8/31/2017 Nevada Royalty Corp. NMC815164 LAT 46 8/31/2017 Nevada Royalty Corp. NMC815166 LAT 49 8/31/2017 Nevada Royalty Corp. NMC815167 LAT 50 8/31/2017 Nevada Royalty Corp. NMC815168 LAT 51 8/31/2017 Nevada Royalty Corp. NMC815169 LAT 52 8/31/2017 Nevada Royalty Corp. NMC815170 LAT 53 8/31/2017 Nevada Royalty Corp. NMC815171 LAT 54 8/31/2017 Nevada Royalty Corp. NMC815172 LAT 55 8/31/2017 Nevada Royalty Corp. NMC815173 LAT 56 8/31/2017 Nevada Royalty Corp. NMC815174 LAT 57 8/31/2017 Nevada Royalty Corp. NMC815175 LAT 58 8/31/2017 Nevada Royalty Corp. NMC815176 LAT 59 8/31/2017 Nevada Royalty Corp. NMC815177 LAT 60 8/31/2017 Nevada Royalty Corp. NMC815178 LAT 47 8/31/2017 Nevada Royalty Corp. NMC815179 LAT 61 8/31/2017 Nevada Royalty Corp. NMC815180 LAT 62 8/31/2017 Nevada Royalty Corp. NMC815181 LAT 63 8/31/2017 Nevada Royalty Corp. NMC815182 LAT 64 8/31/2017 Nevada Royalty Corp. NMC815183 LAT 65 8/31/2017 Nevada Royalty Corp. NMC958546 NC 30 8/31/2017 Nevada Royalty Corp. NMC958547 NC 31 8/31/2017 Nevada Royalty Corp. NMC958548 NC 32 8/31/2017 Nevada Royalty Corp. NMC958549 NC 33 8/31/2017 Nevada Royalty Corp. NMC958550 NC 34 8/31/2017 Nevada Royalty Corp. NMC958551 NC 35 8/31/2017 Nevada Royalty Corp. NMC958552 NC 36 8/31/2017 Nevada Royalty Corp. NMC958553 NC 37 8/31/2017 Nevada Royalty Corp. NMC958554 NC 38 8/31/2017 Nevada Royalty Corp. NMC958555 NC 39 8/31/2017 Nevada Royalty Corp.

Page 3 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC958556 NC 40 8/31/2017 Nevada Royalty Corp. NMC958557 NC 41 8/31/2017 Nevada Royalty Corp. NMC958558 NC 42 8/31/2017 Nevada Royalty Corp. NMC958559 NC 43 8/31/2017 Nevada Royalty Corp. NMC958560 NC 44 8/31/2017 Nevada Royalty Corp. NMC958561 NC 45 8/31/2017 Nevada Royalty Corp. NMC958562 NC 46 8/31/2017 Nevada Royalty Corp. NMC958563 NC 47 8/31/2017 Nevada Royalty Corp. NMC958564 NC 48 8/31/2017 Nevada Royalty Corp. NMC958565 NC 49 8/31/2017 Nevada Royalty Corp. NMC958566 NC 50 8/31/2017 Nevada Royalty Corp. NMC958567 NC 51 8/31/2017 Nevada Royalty Corp. NMC958568 NC 52 8/31/2017 Nevada Royalty Corp. NMC958575 NC 59 8/31/2017 Nevada Royalty Corp. NMC958576 NC 60 8/31/2017 Nevada Royalty Corp. NMC958577 NC 61 8/31/2017 Nevada Royalty Corp. NMC958578 NC 62 8/31/2017 Nevada Royalty Corp. NMC958579 NC 63 8/31/2017 Nevada Royalty Corp. NMC958580 NC 64 8/31/2017 Nevada Royalty Corp. NMC958581 NC 65 8/31/2017 Nevada Royalty Corp. NMC958582 NC 66 8/31/2017 Nevada Royalty Corp. NMC958583 NC 67 8/31/2017 Nevada Royalty Corp. NMC958584 NC 68 8/31/2017 Nevada Royalty Corp. NMC958585 NC 69 8/31/2017 Nevada Royalty Corp. NMC958586 NC 70 8/31/2017 Nevada Royalty Corp. NMC958587 NC 71 8/31/2017 Nevada Royalty Corp. NMC958588 NC 72 8/31/2017 Nevada Royalty Corp. NMC958610 NC 94 8/31/2017 Nevada Royalty Corp. NMC958611 NC 95 8/31/2017 Nevada Royalty Corp. NMC958612 NC 96 8/31/2017 Nevada Royalty Corp. NMC958613 NC 97 8/31/2017 Nevada Royalty Corp. NMC958614 NC 98 8/31/2017 Nevada Royalty Corp. NMC958615 NC 99 8/31/2017 Nevada Royalty Corp. NMC958616 NC 100 8/31/2017 Nevada Royalty Corp. NMC958617 NC 101 8/31/2017 Nevada Royalty Corp. NMC958618 NC 102 8/31/2017 Nevada Royalty Corp. NMC958619 NC 103 8/31/2017 Nevada Royalty Corp. NMC958620 NC 104 8/31/2017 Nevada Royalty Corp. NMC958621 NC 105 8/31/2017 Nevada Royalty Corp. NMC958622 NC 106 8/31/2017 Nevada Royalty Corp. NMC958623 NC 107 8/31/2017 Nevada Royalty Corp. NMC958624 NC 108 8/31/2017 Nevada Royalty Corp. NMC958625 NC 109 8/31/2017 Nevada Royalty Corp.

Page 4 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC958626 NC 110 8/31/2017 Nevada Royalty Corp. NMC958627 NC 111 8/31/2017 Nevada Royalty Corp. NMC958628 NC 112 8/31/2017 Nevada Royalty Corp. NMC958629 NC 113 8/31/2017 Nevada Royalty Corp. NMC958630 NC 114 8/31/2017 Nevada Royalty Corp. NMC958631 NC 115 8/31/2017 Nevada Royalty Corp. NMC958632 NC 116 8/31/2017 Nevada Royalty Corp. NMC958633 NC 117 8/31/2017 Nevada Royalty Corp. NMC958634 NC 118 8/31/2017 Nevada Royalty Corp. NMC958635 NC 119 8/31/2017 Nevada Royalty Corp. NMC958636 NC 120 8/31/2017 Nevada Royalty Corp. NMC958637 NC 121 8/31/2017 Nevada Royalty Corp. NMC958638 NC 124 8/31/2017 Nevada Royalty Corp. NMC958640 NC 126 8/31/2017 Nevada Royalty Corp. NMC958641 NC 127 8/31/2017 Nevada Royalty Corp. NMC958642 NC 128 8/31/2017 Nevada Royalty Corp. NMC958643 NC 129 8/31/2017 Nevada Royalty Corp. NMC958644 NC 130 8/31/2017 Nevada Royalty Corp. NMC958645 NC 133 8/31/2017 Nevada Royalty Corp. NMC958647 NC 135 8/31/2017 Nevada Royalty Corp. NMC958648 NC 136 8/31/2017 Nevada Royalty Corp. NMC958649 NC 137 8/31/2017 Nevada Royalty Corp. NMC958650 NC 138 8/31/2017 Nevada Royalty Corp. NMC958651 NC 139 8/31/2017 Nevada Royalty Corp. NMC958652 NC 142 8/31/2017 Nevada Royalty Corp. NMC958653 NC 143 8/31/2017 Nevada Royalty Corp. NMC958654 NC 144 8/31/2017 Nevada Royalty Corp. NMC958655 NC 145 8/31/2017 Nevada Royalty Corp. NMC958656 NC 146 8/31/2017 Nevada Royalty Corp. NMC958657 NC 149 8/31/2017 Nevada Royalty Corp. NMC958658 NC 150 8/31/2017 Nevada Royalty Corp. NMC958659 NC 151 8/31/2017 Nevada Royalty Corp. NMC958660 NC 152 8/31/2017 Nevada Royalty Corp. NMC958661 NC 153 8/31/2017 Nevada Royalty Corp. NMC958662 NC 154 8/31/2017 Nevada Royalty Corp. NMC958663 NC 157 8/31/2017 Nevada Royalty Corp. NMC958664 NC 158 8/31/2017 Nevada Royalty Corp. NMC958665 NC 159 8/31/2017 Nevada Royalty Corp. NMC958666 NC 160 8/31/2017 Nevada Royalty Corp. NMC958667 NC 161 8/31/2017 Nevada Royalty Corp. NMC958668 NC 162 8/31/2017 Nevada Royalty Corp. NMC958669 NC 165 8/31/2017 Nevada Royalty Corp. NMC958670 NC 166 8/31/2017 Nevada Royalty Corp.

Page 5 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC958671 NC 167 8/31/2017 Nevada Royalty Corp. NMC958672 NC 168 8/31/2017 Nevada Royalty Corp. NMC958673 NC 169 8/31/2017 Nevada Royalty Corp. NMC958674 NC 170 8/31/2017 Nevada Royalty Corp. NMC980710 CT 30 8/31/2017 Nevada Royalty Corp. NMC980711 CT 31 8/31/2017 Nevada Royalty Corp. NMC980712 CT 32 8/31/2017 Nevada Royalty Corp. NMC980713 CT 33 8/31/2017 Nevada Royalty Corp. NMC980714 CT 34 8/31/2017 Nevada Royalty Corp. NMC980715 CT 35 8/31/2017 Nevada Royalty Corp. NMC980716 CT 38 8/31/2017 Nevada Royalty Corp. NMC980717 CT 39 8/31/2017 Nevada Royalty Corp. NMC980718 CT 40 8/31/2017 Nevada Royalty Corp. NMC980719 CT 41 8/31/2017 Nevada Royalty Corp. NMC980720 CT 42 8/31/2017 Nevada Royalty Corp. NMC980721 CT 43 8/31/2017 Nevada Royalty Corp. NMC980722 CT 46 8/31/2017 Nevada Royalty Corp. NMC980723 CT 47 8/31/2017 Nevada Royalty Corp. NMC980724 CT 48 8/31/2017 Nevada Royalty Corp. NMC980725 CT 49 8/31/2017 Nevada Royalty Corp. NMC980726 CT 50 8/31/2017 Nevada Royalty Corp. NMC980727 CT 51 8/31/2017 Nevada Royalty Corp. NMC980728 PETER 1 8/31/2017 Nevada Royalty Corp. NMC980729 PETER 2 8/31/2017 Nevada Royalty Corp. NMC980730 PETER 3 8/31/2017 Nevada Royalty Corp. NMC980731 PETER 4 8/31/2017 Nevada Royalty Corp. NMC980732 PETER 5 8/31/2017 Nevada Royalty Corp. NMC980733 PETER 6 8/31/2017 Nevada Royalty Corp. NMC980734 PETER 7 8/31/2017 Nevada Royalty Corp. NMC980735 PETER 8 8/31/2017 Nevada Royalty Corp. NMC980736 PETER 9 8/31/2017 Nevada Royalty Corp. NMC980737 PETER 10 8/31/2017 Nevada Royalty Corp. NMC980738 PETER 11 8/31/2017 Nevada Royalty Corp. NMC980739 PETER 12 8/31/2017 Nevada Royalty Corp. NMC980740 PETER 13 8/31/2017 Nevada Royalty Corp. NMC980741 PETER 14 8/31/2017 Nevada Royalty Corp. NMC980742 PETER 15 8/31/2017 Nevada Royalty Corp. NMC980743 PETER 16 8/31/2017 Nevada Royalty Corp. NMC980744 PETER 17 8/31/2017 Nevada Royalty Corp. NMC980745 PETER 18 8/31/2017 Nevada Royalty Corp. NMC980746 PETER 19 8/31/2017 Nevada Royalty Corp. NMC980747 PETER 20 8/31/2017 Nevada Royalty Corp. NMC980748 PETER 21 8/31/2017 Nevada Royalty Corp.

Page 6 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC980749 PETER 22 8/31/2017 Nevada Royalty Corp. NMC980750 PETER 23 8/31/2017 Nevada Royalty Corp. NMC980751 PETER 24 8/31/2017 Nevada Royalty Corp. NMC980752 PETER 25 8/31/2017 Nevada Royalty Corp. NMC980753 PETER 26 8/31/2017 Nevada Royalty Corp. NMC980754 PETER 27 8/31/2017 Nevada Royalty Corp. NMC980755 PETER 28 8/31/2017 Nevada Royalty Corp. NMC980756 PETER 29 8/31/2017 Nevada Royalty Corp. NMC980757 PETER 30 8/31/2017 Nevada Royalty Corp. NMC980758 PETER 31 8/31/2017 Nevada Royalty Corp. NMC980759 PETER 32 8/31/2017 Nevada Royalty Corp. NMC980760 PETER 33 8/31/2017 Nevada Royalty Corp. NMC980761 PETER 34 8/31/2017 Nevada Royalty Corp. NMC980762 PETER 35 8/31/2017 Nevada Royalty Corp. NMC980763 PETER 36 8/31/2017 Nevada Royalty Corp. NMC980764 PETER 37 8/31/2017 Nevada Royalty Corp. NMC980765 PETER 38 8/31/2017 Nevada Royalty Corp. NMC980766 PETER 39 8/31/2017 Nevada Royalty Corp. NMC980767 PETER 40 8/31/2017 Nevada Royalty Corp. NMC980768 PETER 41 8/31/2017 Nevada Royalty Corp. NMC980769 PETER 42 8/31/2017 Nevada Royalty Corp. NMC980770 PETER 43 8/31/2017 Nevada Royalty Corp. NMC980771 PETER 44 8/31/2017 Nevada Royalty Corp. NMC980772 PETER 45 8/31/2017 Nevada Royalty Corp. NMC980773 PETER 46 8/31/2017 Nevada Royalty Corp. NMC980774 PETER 47 8/31/2017 Nevada Royalty Corp. NMC980775 PETER 48 8/31/2017 Nevada Royalty Corp. NMC980776 PETER 49 8/31/2017 Nevada Royalty Corp. NMC980777 PETER 50 8/31/2017 Nevada Royalty Corp. NMC980778 PETER 51 8/31/2017 Nevada Royalty Corp. NMC980779 BSW 38 8/31/2017 Nevada Royalty Corp. NMC980780 BSW 39 8/31/2017 Nevada Royalty Corp. NMC980781 BSW 40 8/31/2017 Nevada Royalty Corp. NMC980782 BSW 41 8/31/2017 Nevada Royalty Corp. NMC980783 BSW 42 8/31/2017 Nevada Royalty Corp. NMC980784 BSW 43 8/31/2017 Nevada Royalty Corp. NMC980785 BSW 44 8/31/2017 Nevada Royalty Corp. NMC980786 BSW 45 8/31/2017 Nevada Royalty Corp. NMC980787 BSW 1 8/31/2017 Nevada Royalty Corp. NMC980788 BSW 2 8/31/2017 Nevada Royalty Corp. NMC980789 BSW 3 8/31/2017 Nevada Royalty Corp. NMC980790 BSW 4 8/31/2017 Nevada Royalty Corp. NMC980791 BSW 5 8/31/2017 Nevada Royalty Corp.

Page 7 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC980792 BSW 6 8/31/2017 Nevada Royalty Corp. NMC980793 BSW 7 8/31/2017 Nevada Royalty Corp. NMC980794 BSW 8 8/31/2017 Nevada Royalty Corp. NMC980795 BSW 9 8/31/2017 Nevada Royalty Corp. NMC980796 BSW 10 8/31/2017 Nevada Royalty Corp. NMC980797 BSW 11 8/31/2017 Nevada Royalty Corp. NMC980798 BSW 12 8/31/2017 Nevada Royalty Corp. NMC980799 BSW 13 8/31/2017 Nevada Royalty Corp. NMC980800 BSW 14 8/31/2017 Nevada Royalty Corp. NMC980801 BSW 15 8/31/2017 Nevada Royalty Corp. NMC980802 BSW 16 8/31/2017 Nevada Royalty Corp. NMC980803 BSW 17 8/31/2017 Nevada Royalty Corp. NMC980804 BSW 18 8/31/2017 Nevada Royalty Corp. NMC980805 BSW 19 8/31/2017 Nevada Royalty Corp. NMC980806 BSW 20 8/31/2017 Nevada Royalty Corp. NMC980807 BSW 21 8/31/2017 Nevada Royalty Corp. NMC980808 BSW 22 8/31/2017 Nevada Royalty Corp. NMC980809 BSW 23 8/31/2017 Nevada Royalty Corp. NMC980810 BSW 24 8/31/2017 Nevada Royalty Corp. NMC980811 BSW 25 8/31/2017 Nevada Royalty Corp. NMC980812 BSW 26 8/31/2017 Nevada Royalty Corp. NMC980813 BSW 27 8/31/2017 Nevada Royalty Corp. NMC980814 BSW 28 8/31/2017 Nevada Royalty Corp. NMC980815 BSW 29 8/31/2017 Nevada Royalty Corp. NMC980816 BSW 30 8/31/2017 Nevada Royalty Corp. NMC980817 BSW 31 8/31/2017 Nevada Royalty Corp. NMC980818 BSW 32 8/31/2017 Nevada Royalty Corp. NMC980819 BSW 33 8/31/2017 Nevada Royalty Corp. NMC980820 BSW 34 8/31/2017 Nevada Royalty Corp. NMC980821 BSW 35 8/31/2017 Nevada Royalty Corp. NMC980822 BSW 36 8/31/2017 Nevada Royalty Corp. NMC980823 BSW 37 8/31/2017 Nevada Royalty Corp. NMC980824 BSW 46 8/31/2017 Nevada Royalty Corp. NMC980825 BSW 47 8/31/2017 Nevada Royalty Corp. NMC980826 PA 19 8/31/2017 Nevada Royalty Corp. NMC980827 PA 21 8/31/2017 Nevada Royalty Corp. NMC980828 PA 44 8/31/2017 Nevada Royalty Corp. NMC980829 PA 46 8/31/2017 Nevada Royalty Corp. NMC980830 PA 48 8/31/2017 Nevada Royalty Corp. NMC980831 PE 56 8/31/2017 Nevada Royalty Corp. NMC980832 NP 1 8/31/2017 Nevada Royalty Corp. NMC980833 NP 2 8/31/2017 Nevada Royalty Corp. NMC980834 NP 3 8/31/2017 Nevada Royalty Corp.

Page 8 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC980835 NP 4 8/31/2017 Nevada Royalty Corp. NMC980836 NP 5 8/31/2017 Nevada Royalty Corp. NMC980837 NP 6 8/31/2017 Nevada Royalty Corp. NMC980838 NP 7 8/31/2017 Nevada Royalty Corp. NMC980839 NP 8 8/31/2017 Nevada Royalty Corp. NMC980840 NP 9 8/31/2017 Nevada Royalty Corp. NMC980841 NP 10 8/31/2017 Nevada Royalty Corp. NMC980842 NP 11 8/31/2017 Nevada Royalty Corp. NMC980843 NP 12 8/31/2017 Nevada Royalty Corp. NMC980844 NP 13 8/31/2017 Nevada Royalty Corp. NMC980845 NP 14 8/31/2017 Nevada Royalty Corp. NMC980846 NP 15 8/31/2017 Nevada Royalty Corp. NMC980847 NP 16 8/31/2017 Nevada Royalty Corp. NMC980848 NP 17 8/31/2017 Nevada Royalty Corp. NMC980849 NP 18 8/31/2017 Nevada Royalty Corp. NMC980850 NP 19 8/31/2017 Nevada Royalty Corp. NMC980851 NP 20 8/31/2017 Nevada Royalty Corp. NMC980852 NP 21 8/31/2017 Nevada Royalty Corp. NMC980853 NP 22 8/31/2017 Nevada Royalty Corp. NMC980854 NP 23 8/31/2017 Nevada Royalty Corp. NMC980855 NP 24 8/31/2017 Nevada Royalty Corp. NMC980856 NP 25 8/31/2017 Nevada Royalty Corp. NMC980857 NP 26 8/31/2017 Nevada Royalty Corp. NMC980858 NP 27 8/31/2017 Nevada Royalty Corp. NMC980859 NP 28 8/31/2017 Nevada Royalty Corp. NMC980860 NP 29 8/31/2017 Nevada Royalty Corp. NMC980861 NP 30 8/31/2017 Nevada Royalty Corp. NMC980862 NP 31 8/31/2017 Nevada Royalty Corp. NMC980863 NP 32 8/31/2017 Nevada Royalty Corp. NMC980864 NP 33 8/31/2017 Nevada Royalty Corp. NMC980865 NP 34 8/31/2017 Nevada Royalty Corp. NMC980866 NP 35 8/31/2017 Nevada Royalty Corp. NMC980867 NP 36 8/31/2017 Nevada Royalty Corp. NMC980868 NP 37 8/31/2017 Nevada Royalty Corp. NMC980869 NP 38 8/31/2017 Nevada Royalty Corp. NMC980870 NP 39 8/31/2017 Nevada Royalty Corp. NMC980871 NP 40 8/31/2017 Nevada Royalty Corp. NMC980872 NP 41 8/31/2017 Nevada Royalty Corp. NMC980873 ET 1 8/31/2017 Nevada Royalty Corp. NMC980874 ET 2 8/31/2017 Nevada Royalty Corp. NMC980875 ET 3 8/31/2017 Nevada Royalty Corp. NMC980876 ET 4 8/31/2017 Nevada Royalty Corp. NMC980877 ET 5 8/31/2017 Nevada Royalty Corp.

Page 9 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC980878 ET 6 8/31/2017 Nevada Royalty Corp. NMC980879 ET 7 8/31/2017 Nevada Royalty Corp. NMC980880 ET 8 8/31/2017 Nevada Royalty Corp. NMC980881 ET 9 8/31/2017 Nevada Royalty Corp. NMC980882 ET 10 8/31/2017 Nevada Royalty Corp. NMC980883 ET 11 8/31/2017 Nevada Royalty Corp. NMC980884 ET 12 8/31/2017 Nevada Royalty Corp. NMC980885 ET 13 8/31/2017 Nevada Royalty Corp. NMC980886 ET 14 8/31/2017 Nevada Royalty Corp. NMC980887 ET 15 8/31/2017 Nevada Royalty Corp. NMC980888 ET 16 8/31/2017 Nevada Royalty Corp. NMC980889 ET 17 8/31/2017 Nevada Royalty Corp. NMC980890 ET 18 8/31/2017 Nevada Royalty Corp. NMC980891 ET 19 8/31/2017 Nevada Royalty Corp. NMC980892 ET 20 8/31/2017 Nevada Royalty Corp. NMC980893 ET 21 8/31/2017 Nevada Royalty Corp. NMC980894 ET 22 8/31/2017 Nevada Royalty Corp. NMC980895 ET 23 8/31/2017 Nevada Royalty Corp. NMC980896 ET 24 8/31/2017 Nevada Royalty Corp. NMC980897 ET 25 8/31/2017 Nevada Royalty Corp. NMC980898 ET 26 8/31/2017 Nevada Royalty Corp. NMC980899 ET 27 8/31/2017 Nevada Royalty Corp. NMC980900 ET 28 8/31/2017 Nevada Royalty Corp. NMC980901 ET 29 8/31/2017 Nevada Royalty Corp. NMC980902 ET 30 8/31/2017 Nevada Royalty Corp. NMC980903 ET 31 8/31/2017 Nevada Royalty Corp. NMC980904 ET 32 8/31/2017 Nevada Royalty Corp. NMC980905 ET 33 8/31/2017 Nevada Royalty Corp. NMC980906 ET 34 8/31/2017 Nevada Royalty Corp. NMC980907 ET 35 8/31/2017 Nevada Royalty Corp. NMC980908 ET 36 8/31/2017 Nevada Royalty Corp. NMC980909 ET 37 8/31/2017 Nevada Royalty Corp. NMC980910 ET 38 8/31/2017 Nevada Royalty Corp. NMC980911 ET 39 8/31/2017 Nevada Royalty Corp. NMC980912 ET 40 8/31/2017 Nevada Royalty Corp. NMC980913 ET 41 8/31/2017 Nevada Royalty Corp. NMC984635 GWEN 17 8/31/2017 Nevada Royalty Corp. NMC984636 GWEN 18 8/31/2017 Nevada Royalty Corp. NMC984637 PAN 111 8/31/2017 Nevada Royalty Corp. NMC984638 PAN 112 8/31/2017 Nevada Royalty Corp. NMC984640 PAN 120 8/31/2017 Nevada Royalty Corp. NMC984642 PAN 122 8/31/2017 Nevada Royalty Corp. NMC1057292 PC 19 8/31/2017 GRP Pan, LLC

Page 10 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC1057293 PC 21 8/31/2017 GRP Pan, LLC NMC1057294 PC 22 8/31/2017 GRP Pan, LLC NMC1057295 PC 23 8/31/2017 GRP Pan, LLC NMC1057296 PC 24 8/31/2017 GRP Pan, LLC NMC1057297 PC 25 8/31/2017 GRP Pan, LLC NMC1057298 PC 26 8/31/2017 GRP Pan, LLC NMC1057299 PC 27 8/31/2017 GRP Pan, LLC NMC1057300 PC 28 8/31/2017 GRP Pan, LLC NMC1057301 PC 29 8/31/2017 GRP Pan, LLC NMC958517 NC 1 8/31/2017 GRP Pan, LLC NMC958518 NC 2 8/31/2017 GRP Pan, LLC NMC958519 NC 3 8/31/2017 GRP Pan, LLC NMC958520 NC 4 8/31/2017 GRP Pan, LLC NMC958521 NC 5 8/31/2017 GRP Pan, LLC NMC958522 NC 6 8/31/2017 GRP Pan, LLC NMC958523 NC 7 8/31/2017 GRP Pan, LLC NMC958524 NC 8 8/31/2017 GRP Pan, LLC NMC958525 NC 9 8/31/2017 GRP Pan, LLC NMC958526 NC 10 8/31/2017 GRP Pan, LLC NMC958527 NC 11 8/31/2017 GRP Pan, LLC NMC958528 NC 12 8/31/2017 GRP Pan, LLC NMC958529 NC 13 8/31/2017 GRP Pan, LLC NMC958530 NC 14 8/31/2017 GRP Pan, LLC NMC958531 NC 15 8/31/2017 GRP Pan, LLC NMC958532 NC 16 8/31/2017 GRP Pan, LLC NMC958533 NC 17 8/31/2017 GRP Pan, LLC NMC958534 NC 18 8/31/2017 GRP Pan, LLC NMC958535 NC 19 8/31/2017 GRP Pan, LLC NMC958536 NC 20 8/31/2017 GRP Pan, LLC NMC958537 NC 21 8/31/2017 GRP Pan, LLC NMC958538 NC 22 8/31/2017 GRP Pan, LLC NMC958539 NC 23 8/31/2017 GRP Pan, LLC NMC958540 NC 24 8/31/2017 GRP Pan, LLC NMC958541 NC 25 8/31/2017 GRP Pan, LLC NMC958542 NC 26 8/31/2017 GRP Pan, LLC NMC958543 NC 27 8/31/2017 GRP Pan, LLC NMC958544 NC 28 8/31/2017 GRP Pan, LLC NMC958545 NC 29 8/31/2017 GRP Pan, LLC NMC958569 NC 53 8/31/2017 GRP Pan, LLC NMC958570 NC 54 8/31/2017 GRP Pan, LLC NMC958571 NC 55 8/31/2017 GRP Pan, LLC NMC958572 NC 56 8/31/2017 GRP Pan, LLC NMC958573 NC 57 8/31/2017 GRP Pan, LLC

Page 11 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC958574 NC 58 8/31/2017 GRP Pan, LLC NMC958589 NC 73 8/31/2017 GRP Pan, LLC NMC958590 NC 74 8/31/2017 GRP Pan, LLC NMC958591 NC 75 8/31/2017 GRP Pan, LLC NMC958592 NC 76 8/31/2017 GRP Pan, LLC NMC958593 NC 77 8/31/2017 GRP Pan, LLC NMC958594 NC 78 8/31/2017 GRP Pan, LLC NMC958595 NC 79 8/31/2017 GRP Pan, LLC NMC958596 NC 80 8/31/2017 GRP Pan, LLC NMC958597 NC 81 8/31/2017 GRP Pan, LLC NMC958598 NC 82 8/31/2017 GRP Pan, LLC NMC958599 NC 83 8/31/2017 GRP Pan, LLC NMC958600 NC 84 8/31/2017 GRP Pan, LLC NMC958601 NC 85 8/31/2017 GRP Pan, LLC NMC958602 NC 86 8/31/2017 GRP Pan, LLC NMC958603 NC 87 8/31/2017 GRP Pan, LLC NMC958604 NC 88 8/31/2017 GRP Pan, LLC NMC958605 NC 89 8/31/2017 GRP Pan, LLC NMC958606 NC 90 8/31/2017 GRP Pan, LLC NMC958607 NC 91 8/31/2017 GRP Pan, LLC NMC958608 NC 92 8/31/2017 GRP Pan, LLC NMC958609 NC 93 8/31/2017 GRP Pan, LLC NMC965337 GWEN 1 8/31/2017 GRP Pan, LLC NMC965338 GWEN 2 8/31/2017 GRP Pan, LLC NMC965339 GWEN 3 8/31/2017 GRP Pan, LLC NMC965340 GWEN 4 8/31/2017 GRP Pan, LLC NMC965341 GWEN 5 8/31/2017 GRP Pan, LLC NMC965342 GWEN 6 8/31/2017 GRP Pan, LLC NMC965343 GWEN 7 8/31/2017 GRP Pan, LLC NMC965344 GWEN 8 8/31/2017 GRP Pan, LLC NMC965345 GWEN 9 8/31/2017 GRP Pan, LLC NMC965346 GWEN 10 8/31/2017 GRP Pan, LLC NMC973536 REE-81 8/31/2017 GRP Pan, LLC NMC973537 REE-82 8/31/2017 GRP Pan, LLC NMC977345 GWEN 49 8/31/2017 GRP Pan, LLC NMC977346 GWEN 50 8/31/2017 GRP Pan, LLC NMC977347 GWEN 51 8/31/2017 GRP Pan, LLC NMC977350 GWEN 54 8/31/2017 GRP Pan, LLC NMC977351 GWEN 55 8/31/2017 GRP Pan, LLC NMC977352 GWEN 58 8/31/2017 GRP Pan, LLC NMC977353 GWEN 59 8/31/2017 GRP Pan, LLC NMC977354 GWEN 60 8/31/2017 GRP Pan, LLC NMC977355 GWEN 61 8/31/2017 GRP Pan, LLC

Page 12 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix B

BLM Serial # Claim Name Expiration Date Owner NMC977356 GWEN 62 8/31/2017 GRP Pan, LLC NMC977357 GWEN 63 8/31/2017 GRP Pan, LLC NMC977358 GWEN 64 8/31/2017 GRP Pan, LLC NMC977359 GWEN 65 8/31/2017 GRP Pan, LLC NMC984556 GWEN 19 8/31/2017 GRP Pan, LLC NMC984557 GWEN 20 8/31/2017 GRP Pan, LLC NMC984558 GWEN 21 8/31/2017 GRP Pan, LLC NMC984559 GWEN 22 8/31/2017 GRP Pan, LLC NMC984560 GWEN 23 8/31/2017 GRP Pan, LLC NMC984561 GWEN 24 8/31/2017 GRP Pan, LLC NMC984562 GWEN 25 8/31/2017 GRP Pan, LLC NMC984563 GWEN 26 8/31/2017 GRP Pan, LLC NMC984564 GWEN 27 8/31/2017 GRP Pan, LLC NMC984565 GWEN 28 8/31/2017 GRP Pan, LLC NMC984566 GWEN 29 8/31/2017 GRP Pan, LLC NMC984567 GWEN 30 8/31/2017 GRP Pan, LLC NMC984568 GWEN 31 8/31/2017 GRP Pan, LLC NMC984569 GWEN 32 8/31/2017 GRP Pan, LLC NMC984570 GWEN 33 8/31/2017 GRP Pan, LLC NMC984571 GWEN 34 8/31/2017 GRP Pan, LLC NMC984572 GWEN 35 8/31/2017 GRP Pan, LLC NMC984573 GWEN 36 8/31/2017 GRP Pan, LLC NMC984574 GWEN 37 8/31/2017 GRP Pan, LLC NMC984575 GWEN 38 8/31/2017 GRP Pan, LLC NMC984576 GWEN 39 8/31/2017 GRP Pan, LLC NMC984577 GWEN 40 8/31/2017 GRP Pan, LLC NMC984578 GWEN 41 8/31/2017 GRP Pan, LLC NMC984579 GWEN 42 8/31/2017 GRP Pan, LLC NMC984580 GWEN 43 8/31/2017 GRP Pan, LLC NMC984581 GWEN 44 8/31/2017 GRP Pan, LLC NMC984582 GWEN 45 8/31/2017 GRP Pan, LLC NMC984583 GWEN 46 8/31/2017 GRP Pan, LLC NMC984584 GWEN 47 8/31/2017 GRP Pan, LLC NMC984585 GWEN 48 8/31/2017 GRP Pan, LLC

Page 13 of 13 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendices

Appendix C: Nevada Department of Transportation Right-Of- Way Permit

JP/MLM PanProject_NI43-101_493800-050_Rev16_TmP.docx July 2017 SRK Consulting (U.S.), Inc. NI 43-101 Technical Report – Pan Project, NV Appendix C

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