2015 Nordgold

Mineral Resources 6

and Ore Reserves 201 Overview May

CONTENTS TABLES ...... 5 FIGURES ...... 6 1 INTRODUCTION ...... 9 2 GROUP MINERAL RESOURCES AND ORE RESERVES ...... 13 2.1 Overview of Group Mineral Resources and Ore Reserves ...... 13 2.2 Assessment and Reporting Criteria ...... 21 2.3 Development and Exploration Projects ...... 23 3 OPERATING MINES - BURKINA FASO ...... 24 3.1 Regional Geology ...... 24 3.2 Bissa ...... 25 3.2.1 Location and Access ...... 25 3.2.2 Project Ownership and License Details ...... 26 3.2.3 Local Geology ...... 27 3.2.4 Current Mineral Resources and Ore Reserves ...... 29 3.2.5 Operational Profile – Mine and Plant ...... 29 3.2.6 Key Operational Developments ...... 30 3.2.7 Recent Exploration ...... 31 3.2.8 Technical Reports References ...... 32 3.3 Taparko ...... 33 3.3.1 Location and Access ...... 33 3.3.2 Project Ownership and License Details ...... 34 3.3.3 Local Geology ...... 35 3.3.4 Current Mineral Resources and Ore Reserves ...... 35 3.3.5 Operational Profile – Mine and Plant ...... 36 3.3.6 Key Operational Developments ...... 36 3.3.7 Recent Exploration ...... 37 3.3.8 Technical Reports References ...... 38 4 OPERATING MINES - GUINEA ...... 39 4.1 Lefa ...... 39 4.1.1 Location and Access ...... 39 4.1.2 Project Ownership and License Details ...... 40 4.1.3 Regional and Local Geology ...... 41 4.1.4 Current Mineral Resources and Ore Reserves ...... 42 4.1.5 Operational Profile – Mine and Plant ...... 42 4.1.6 Key Operational Developments ...... 42 4.1.7 Recent Exploration ...... 44 4.1.8 Technical Reports References ...... 44 5 OPERATING MINES - RUSSIA ...... 45 5.1 Berezitovy ...... 45 5.1.1 Location and Access ...... 45

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5.1.2 Project Ownership and License Details ...... 46 5.1.3 Regional and Local Geology ...... 47 5.1.4 Current Mineral Resources and Ore Reserves ...... 47 5.1.5 Operational Profile – Mine and Plant ...... 48 5.1.6 Key Operational Developments ...... 48 5.1.7 Recent Exploration ...... 49 5.1.8 Technical Reports References ...... 50 5.2 Neryungri ...... 51 5.2.1 Location and Access ...... 51 5.2.2 Project Ownership and License Details ...... 52 5.2.3 Regional and Local Geology ...... 52 5.2.4 Current Mineral Resources and Ore Reserves ...... 53 5.2.5 Operational Profile – Mine and Plant ...... 53 5.2.6 Key Operational Developments ...... 54 5.2.7 Recent Exploration ...... 54 5.2.8 Technical Reports References ...... 55 5.3 Aprelkovo ...... 56 5.3.1 Location and Access ...... 56 5.3.2 Project Ownership and License Details ...... 57 5.3.3 Regional and Local Geology ...... 58 5.3.4 Current Mineral Resources and Ore Reserves ...... 58 5.3.5 Operational Profile – Mine and Plant ...... 58 5.3.6 Key Operational Developments ...... 59 5.3.7 Recent Exploration ...... 59 5.3.8 Technical Reports References ...... 60 5.4 Zun-Holba ...... 61 5.4.1 Location and Access ...... 61 5.4.2 Project Ownership and License Details ...... 62 5.4.3 Regional and Local Geology ...... 63 5.4.4 Current Mineral Resources and Ore Reserves ...... 63 5.4.5 Operational Profile – Mine and Plant ...... 64 5.4.6 Key Operational Developments ...... 64 5.4.7 Recent Exploration ...... 65 5.4.8 Technical Reports References ...... 65 5.5 Irokinda ...... 67 5.5.1 Location and Access ...... 67 5.5.2 Project Ownership and License Details ...... 68 5.5.3 Regional and Local Geology ...... 68 5.5.4 Current Mineral Resources and Ore Reserves ...... 69 5.5.5 Operational Profile – Mine and Plant ...... 69 5.5.6 Key Operational Developments ...... 69 5.5.7 Recent Exploration ...... 71 5.5.8 Technical Reports References ...... 71

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6 OPERATING MINES – KAZAKHSTAN ...... 72 6.1 Suzdal ...... 72 6.1.1 Location and Access ...... 72 6.1.2 Project Ownership and License Details ...... 73 6.1.3 Regional and Local Geology ...... 73 6.1.4 Current Mineral Resources and Ore Reserves ...... 74 6.1.5 Operational Profile – Mine and Plant ...... 74 6.1.6 Key Operational Developments ...... 74 6.1.7 Recent Exploration ...... 76 6.1.8 Technical Reports References ...... 76 7 DEVELOPMENT PROJECTS – BURKINA FASO ...... 77 7.1 Bouly ...... 77 7.1.1 Location and Access ...... 77 7.1.2 Project Ownership and License Details ...... 78 7.1.3 Regional and Local Geology ...... 78 7.1.4 Current Mineral Resources and Ore Reserves ...... 79 7.1.5 Planned Operational Profile – Mine and Plant ...... 79 7.1.6 Key Project Developments ...... 79 7.1.7 Technical Reports References ...... 80 8 DEVELOPMENT PROJECTS - RUSSIA ...... 81 8.1 Gross ...... 81 8.1.1 Location and Access ...... 81 8.1.2 Project Ownership and License Details ...... 82 8.1.3 Regional and Local Geology ...... 82 8.1.4 Current Mineral Resources and Ore Reserves ...... 82 8.1.5 Level of Study, Proposed Mining and Processing Methodology ...... 83 8.1.6 Technical Reports References ...... 84 8.2 Uryakh ...... 85 8.2.1 Location and Access ...... 85 8.2.2 Project Ownership and License Details ...... 87 8.2.3 Regional and Local Geology ...... 87 8.2.4 Mineral Resources ...... 88 8.2.5 Level of Study, Proposed Mining and Processing Methodology ...... 88 8.2.6 Technical Reports References ...... 88 9 EXPLORATION PROJECTS – BURKINA FASO ...... 89 9.1 Bissa Regional Exploration Projects ...... 89 9.1.1 Location and Access ...... 89 9.1.2 Project Ownership and Licence Details ...... 90 9.1.3 Regional and Local Geology ...... 90 9.1.4 Current Mineral Resources and Ore Reserves ...... 91 9.1.5 Operational Profile – Mine and Plant ...... 91 9.1.6 Technical Reports References ...... 92 9.2 Taparko Regional Exploration Projects ...... 92

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9.2.1 Location and Access ...... 92 9.2.2 Project Ownership and Licence Details ...... 92 9.2.3 Regional and Local Geology ...... 92 9.2.4 Current Mineral Resources and Ore Reserves ...... 93 9.2.5 Level of Study, Proposed Mining and Processing Methodology ...... 93 9.2.6 Technical Reports References ...... 93 9.3 Burkina Faso Regional Exploration Projects ...... 93 9.3.1 Location and Access ...... 93 9.3.2 Project Ownership and Licence Detail ...... 94 9.3.3 Regional and Local Geology ...... 94 9.3.4 Current Mineral Resources and Ore Reserves ...... 95 9.3.5 Technical Reports References: ...... 95 10 EXPLORATION PROJECTS – RUSSIA ...... 96 10.1 Sergachinskaya (Additional Resource Base for Berezitovy Mine) ...... 96 10.1.1 Location and Access ...... 96 10.1.2 Project Ownership and License Details ...... 96 10.1.3 Regional and Local Geology ...... 96 10.1.4 Level of Study, Proposed Mining and Processing Methodology ...... 97 10.1.5 Technical Report References ...... 97 10.2 Zhanok ...... 97 10.2.1 Location and Access ...... 97 10.2.2 Project Ownership and License Details ...... 98 10.2.3 Regional and Local Geology ...... 98 10.2.4 Level of Study, Proposed Mining and Processing Methodology ...... 98 10.2.5 Technical Reports References ...... 98 10.3 Onot-Kitoy ...... 98 10.3.1 Location and Access ...... 98 10.3.2 Project Ownership and License Details ...... 99 10.3.3 Regional and Local Geology ...... 99 10.3.4 Level of Study, Proposed Mining and Processing Methodology ...... 99 10.3.5 Technical Reports References ...... 99 11 EXPLORATION PROJECTS - KAZAKHSTAN ...... 100 11.1 Zherek ...... 100 11.1.1 Location and Access ...... 100 11.1.2 Project Ownership and Licence Details ...... 100 11.1.3 Regional and Local Geology ...... 100 11.1.1 Current Mineral Resources and Ore Reserves ...... 101 11.1.2 Level of Study, Proposed Mining and Processing Methodology ...... 101 11.1.3 Technical Reports References ...... 101 11.2 Balazhal ...... 102 11.2.1 Location and Access ...... 102 11.2.2 Project Ownership and Licence Details ...... 102 11.2.3 Regional and Local Geology ...... 103

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11.2.4 Level of Study, Proposed Mining and Processing Methodology ...... 103 11.2.5 Mineral Resources ...... 103 11.2.6 Technical Reports References ...... 103 12 MONTAGNE D’OR ...... 104 12.1 French Guiana ...... 104 12.1.1 Location and Access ...... 104 12.1.2 Project Ownership and Licence Details ...... 105 12.1.3 Regional and Local Geology ...... 106 12.1.4 Current Mineral Resources and Ore Reserves ...... 106 12.1.5 Level of Study, Proposed Mining and Processing Methodology ...... 107 12.1.6 Key Project Developments ...... 107 12.1.7 Technical Reports References: ...... 107 13 PISTOL BAY ...... 108 13.1 Nunavut Territory, Canada ...... 108 13.1.1 Location and Access ...... 108 13.1.2 Project Ownership and Licence Details ...... 109 13.1.3 Regional and Local Geology ...... 109 13.1.4 Level of Study, Proposed Mining and Processing Methodology ...... 110 13.1.5 Technical Reports References: ...... 110 14 SILVER PROJECTS – RUSSIA ...... 111 14.1 Prognoz ...... 111 14.1.1 Location and Access ...... 111 14.1.2 Project Ownership and Licence Details ...... 112 14.1.3 Regional and Local Geology ...... 112 14.1.4 Current Mineral Resources and Ore Reserves ...... 113 14.1.5 Level of Study, Proposed Mining and Processing Methodology ...... 113 14.1.6 Technical Report References ...... 113

TABLES

Table 1.1: Nordgold Mineral Resources and Ore Reserves Statement as at 31st December 2015...... 9 Table 1.2: Nordgold Licenses Summary ...... 10 Table 2.1: Nordgold Gold Mineral Resources and Ore Reserves by Operating Assets, Growth and Exploration Projects ...... 14 Table 2.2: Nordgold Silver Mineral Resources and Ore Reserves by Growth and Exploration Projects 15 Table 2.3: Nordgold Copper Mineral Resources by Exploration Project ...... 15 Table 2.4: Nordgold Management Company Competent Persons in Accordance with JORC Code (2012) ...... 22 Table 2.5: Contributing Persons ...... 22 Table 2.6: Exploration Drilling and Expenditure ...... 23 Table 3.1: Summary of Recent Bissa Drilling Campaigns ...... 31 Table 4.1: Summary of Exploration & Near Mine Drilling at Lefa ...... 44

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Table 5.1 : Summary of Recent Berezitovy Drilling Campaigns ...... 50 Table 5.2 : Summary of Recent Neryungri Drilling Campaigns ...... 54 Table 5.3 : Summary of Recent Aprelkovo Drilling Campaigns ...... 60 Table 5.4 : Summary of Recent Zun-Holba Drilling Campaigns ...... 65 Table 5.5 : Summary of Recent Irokinda Drilling Campaigns ...... 71 Table 6.1 : Summary of Recent Suzdal Drilling Campaigns ...... 76 Table 8.1: Summary of Recent Neryungri-Gross Drilling Campaigns ...... 83 Table 8.2: Gross Project Parameters ...... 83 Table 8.3: Summary of Recent Uryakh Drilling Campaigns ...... 88 Table 8.4: Uryakh Project Parameters ...... 88 Table 9.1: Lagongo Mineral Resources in Accordance with the JORC Code (2012), December 2014 91 Table 9.2: Zinigma Mineral Resources in Accordance with the JORC Code (2012), December 2014 91 Table 9.3: Bissa Sud Mineral Resources in Accordance with the JORC Code (2012), December 2014 ...... 91 Table 9.4: Nayiri Mineral Resources in Accordance with the JORC Code (2004) ...... 93 Table 9.5: Wayin Mineral Resources in Accordance with the JORC Code (2004) ...... 95 Table 10.1: Sergachinskaya Project Parameters ...... 97 Table 11.1: Zherek WAI 2011 Mineral Resources in Accordance with the JORC Code (2004)* ...... 101 Table 11.2: Balazhal WAI 2011 Mineral Resources in Accordance with the JORC Code (2004)* .... 103 Table 12.1: Montagne d’Or Mineral Resources in Accordance with the JORC Code (2012)* ...... 106 Table 14.1: Prognoz in-situ Mineral Resources in Accordance with the JORC Code (2004) ...... 113 Table 14.2: Prognoz Project Parameters ...... 113

FIGURES

Figure 2.1: Nordgold Mineral Resources by Operating Assets, Growth and Exploration Projects ...... 16 Figure 2.2: Managed Mineral Resources by Operating Assets, Growth and Exploration Projects ... 18 Figure 2.3: Nordgold 24-month Movement in Mineral Resources by Operating Assets, Growth and Exploration Projects ...... 18 Figure 2.4: Nordgold Ore Reserves by Operating Assets and Growth Projects ...... 19 Figure 2.5: Managed Mineral Reserve by Operating Assets, Growth and Exploration Projects ...... 20 Figure 2.6: Nordgold 24-month Movement in Ore Reserves by Operating Assets and Growth Projects ...... 21 Figure 3.1: Burkina Faso Regional Geologic Map ...... 24 Figure 3.2: Location of Bissa Group in Northeastern Burkina Faso ...... 25 Figure 3.3: Detailed Location of Bissa Mine and Bissa Satellite Projects ...... 26 Figure 3.4: Gold Mineralization at Bissa Project ...... 28 Figure 3.5: Exploration Drilling Programme at Southwest Extension of Z51, Z52 and SW Pits ...... 32 Figure 3.6: View of South West Pit Cutback (January 2016) ...... 32 Figure 3.7: View Bissa Process Plant 7th CIL tank construction ...... 32 Figure 3.8: Location of Taparko Group in Northeastern Burkina Faso ...... 33 Figure 3.9: Detailed Location of Taparko-Bouroum-Yeou ...... 34 Figure 3.10: Welcome Stranger Pit near Bouroum ...... 38

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Figure 3.11: Pebble crusher installation ...... 38 Figure 4.1: Location of the Lefa Gold Mine ...... 39 Figure 4.2: Detailed Location of the Lefa Gold Mine...... 40 Figure 4.3: Mining Of The Karta Open Pit complex ...... 44 Figure 4.4: Heavy Vehicle Wash Bay ...... 44 Figure 5.1: Location of Berezitovy Gold Deposit, Amurskay Region, Russian Federation ...... 45 Figure 5.2: Detailed Location of Berezitovy ...... 46 Figure 5.3: Berezitovy Pit March 2016 looking towards stage 3 cutback ...... 50 Figure 5.4: GP500 crusher feed screen upgrade ...... 50 Figure 5.5: Location of Neryungri Gold Deposit, Sakha-Yakutia Republic, Russian Federation ...... 51 Figure 5.6: Detailed Location of Neryungri ...... 52 Figure 5.7: Neryungri Exploration Targets ...... 55 Figure 5.8: Neryungri Pit ...... 55 Figure 5.9: Neryungri Heap Leach Facility ...... 55 Figure 5.10: Location of Aprelkovo Gold Deposit, Chita Region, Russian Federation ...... 56 Figure 5.11: Detailed Location of Aprelkovo ...... 57 Figure 5.11: ROC Blast hole Rig ...... 60 Figure 5.12: Aprelkovo pit Feb 2015 ...... 60 Figure 5.15: Location of Zun-Holba Gold Deposit, Republic of Buryatia, Russian Federation ...... 61 Figure 5.16: Detailed Location of Zun-Holba ...... 62 Figure 5.16: New Truck for Deeps Decline ...... 65 Figure 5.17: Zun-Holba Summer Absorption columns ...... 65 Figure 5.18: Location of Irokinda Gold Deposit, Republic of Buryatia, ...... 67 Figure 5.19: Detailed Location of Irokinda ...... 68 Figure 5.20: Irokinda Equipment Hotbox for improved winter availability ...... 71 Figure 5.21: Irokinda flotation cell upgrade...... 71 Figure 6.1: Location of Suzdal in the North-eastern Kazakhstan ...... 72 Figure 6.2: Detailed Location of Suzdal and Zherek ...... 73 Figure 6.3: Suzdal Hot Leach regrind mill installation ...... 76 Figure 6.4: Suzdal Hot Leach plant construction ...... 76 Figure 7.1 Location of Bouly Project ...... 77 Figure 7.2: General View of Bouly Project and Relationship to Bissa ...... 78 Figure 7.3: View of Bouly Starter Pit ...... 80 Figure 7.4: Bouly Crusher construction...... 80 Figure 8.1: Location of Neryungri and Gross Gold Deposits, Sakha-Yakutia Republic, Russian Federation ...... 81 Figure 8.4: Location of the Uryakh project ...... 86 Figure 8.5: Detailed Location of the Uryakh project ...... 87 Figure 9.1: Bissa and Taparko Satellite Project Locations ...... 89 Figure 9.2: RC Drilling at Lagongo, February 2015 ...... 92 Figure 9.3: Location of Wayin Exploration Project ...... 94 Figure 11.2: Location of Balazhal in Northeastern Kazakhstan ...... 102 Figure 12.1: Location of Montagne d’Or, French Guiana ...... 104

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Figure 12.2: Detailed Location of Montagne d’Or ...... 105 Figure 12.3: Typical Section Montagne d’Or ...... 106 Figure 12.4: General view of Montagne d’Or, Paul Isnard Gold Project ...... 107 Figure 13.1: Location of Pistol Bay Project ...... 108 Figure 13.2: Detailed Location of Pistol Bay Project ...... 109 Figure 14.1: Location of Prognoz Silver Project within the Yakutia Region, Russian Federation ...... 111 Figure 14.2: Detailed Location of Prognoz Silver Project ...... 112

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1 INTRODUCTION

The objective of the Nord Gold N.V. (“Nordgold” or the “Company” or the “Group”) Mineral Resource and Ore Reserve overview is to provide an annual update of Mineral Resources, Ore Reserves and exploration management, to ensure transparency, integrity and materiality in reporting, in compliance with the JORC 2012 code and the Company’s LSE listing, to inform all stakeholders on the status of the Company’s fundamental asset base. The overview also provides reference to technical reports for additional detail, and results announcements available in the public domain.

In 2015, Nordgold’s gold production totalled 950 thousand ounces ("koz"), 4% down from 985 koz in 2014; increased gold production at Lefa, Neryungri, Berezitovy and Irokinda, off-set by reduced gold production at Bissa, Taparko, Zun-Holba, Aprelkovo and Suzdal mines.

The 31 December 2015 Mineral Resources inclusive of growth projects, total 28.5 (29.0 as at 31 December 2014) million ounces (“Moz”) of gold, 245.7 (245.9) Moz of silver, and 33.7 (33.7) thousand tonnes (kt) of copper, as shown in Table 1.1 (Page 9). The 31 December 2015 Mineral Resources, exclusive of growth projects, total 13.1 (13.6) Moz of gold. During 2014, Nordgold adopted reporting Mineral Resources within pit shells that are defined by an USD1,600/oz price, costs and relevant modifying factors used for their estimates. In 2015, the gold price assumption was reduced to USD1,500/oz.

Table 1.1: Nordgold Mineral Resources and Ore Reserves Statement as at 31st December 20151

Resources Reserves Assets Dec 2014 Dec 2015 Dec 2014 Dec 2015 Gold (Moz) West Africa 13.2 12.9 6.2 6.9

Russia 14.1 13.8 6.1 6.4

Kazakhstan 1.8 1.8 0.7 0.8

Total 29.0 28.5 13.0 14.0 Silver (Moz) Russia 245.9 245.7 23.6 23.4 Copper (000 t)

West Africa 33.7 33.7 0.0 0.0

1 Numbers may not add up due to rounding.

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The corresponding gold Ore Reserves is 14.0 (13.0) Moz of gold net of 1.1 Moz of depletion since the previous declaration of 31 December 2014. In 2015 Ore Reserves were reported at a USD1,200/oz gold price, compared with USD1,250/oz in 2014 and 2012. In 2015, the Russian Rouble and the Kazakhstani Tenge devaluated by 29% and 86% against the US Dollar (USD) respectively, while the world oil price dropped to USD38 per barrel by year-end (70% YoY reduction); the latter currency devaluations and price reductions are fully reflected in actual Mineral Resources and Ore Reserves operational cost assumptions.

The Nordgold Mineral Resources and Ore Reserves pipeline includes: early stage exploration to Ore Reserves replacement projects at its existing operations, and Bouly, Gross and Uryakh gold growth projects. Exploration for the 12-months to December 2015 centred heavily on existing operations and associated satellite projects, compared with a focus on gold growth and exploration projects for the previous 12-month period to December 2014.

Key to sustaining Ore Reserves at the existing assets, and developing growth and exploration projects are in-house specialists capability supported by processes, systems and high-quality technical data; which continues to be a key focus area for Nordgold in 2015.

Nordgold (LSE: NORD) is publicly traded on the London Stock Exchange, and is an internationally diversified low-cost gold producer established in 2007.

The status of the Company’s asset base licences are summarised in Table 1.2.

Table 1.2: Nordgold Licenses Summary License or Interest Type/ Expiry Surface Asset Decree Holder Comments (%) Status Date area (km2) Number Russia Mining/ 31/12/ Above 150 m Aprelkovo ChIT 01545 BE Aprelkovo 100 6.62 Valid 2020 depth Exploration/ 25/02/ Below 150 m Aprelkovo ChIT 02190 BP Aprelkovo 100 6.62 Valid 2016 depth North Gold Mining/ 01/07/ Nerchinsk ChIT 01944 BR Mining 100 34.6 Valid 2033 Company North Gold Mining/ 01/07/ Kunikan ChIT 01945 BR Mining 100 31.26 Valid 2033 Company Mining/ 01/08/ Berezitovy BLG 11787 BR Berezitovy 99.91 17 Valid 2017 Sergachin- Mining/ 25/05/ BLG 14149 BR Berezitovy 100 162.7 skaya Valid 2032 Mining/ 31/12/ Khaikta BLG 02694 BR Berezitovy 100 365.02 Valid 2035 Mining/ 31/12/ Neryungri YaKU 01860 BR Neryungri 100 0.93 Valid 2020 Mining/ 10/06/ Gross YaKU 03559 BE Neryungri 90.6 14 Valid 2033

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Exploration/ 31/12/ South Uguy YaKU 12112 BP Neryungri 100 58 Valid 2018 Mining/ 11/01/ Zun-Holba UDE 00213 BE Buryatzoloto 100 3.66 Valid 2019 Mining/ 31/12/ Zun-Holba UDE 00231 BR Buryatzoloto 100 3.1 Pionerskiy Site Valid 2019 Mining/ 29/06/ 15 km Perspective Zun-Holba UDE 00419 BR Buryatzoloto 100 67 Valid 2024 Zone Mining/ 01/03/ Zun-Holba UDE 01367 BR Buryatzoloto 100 9.53 Smezhniy Site Valid 2031 Mining/ 01/03/ Zun-Holba UDE 01368 BR Buryatzoloto 100 41.001 Yuzhniy Site Valid 2031 Mining/ 14/03/ Onot-Kitoy UDE 01592 BR Buryatzoloto 100 396.2 Valid 2039 Mining/ 31/12/ Irokinda UDE 00212 BR Buryatzoloto 100 227 Valid 2021 Mining/ 20/02/ Irokinda UDE 01434 BR Buryatzoloto 100 41.8 Severny Site Valid 2037 Mining/ 03/12/ Zhanok UDE 01573 BR Buryatzoloto 100 980.06 Valid 2038 North Gold Mining/ 01/12/ Vitimkan UDE 01191 BR Mining 100 1394.43 Valid 2032 Company North Gold Mining/ 20/11/ Uryakh IRK 02473 BR Mining 100 52.17 Valid 2032 Company Mining/ 30/09/ Prognoz YaKU 14002 BE Prognoz 50 56 Silver deposit Valid 2025 Kazakhstan Contract №47a Celtic Resources 13/03/ Suzdal (License MG 100 Mining 5.9 (Central Asia) 2017 №35a) Contract №203 Celtic Resources 28/05/ Zherek (License MG 100 Mining 1.52 (Central Asia) 2022 №107D) Contract №851 28/12/ Balazhal (No license Nord Gold N.V. 100 Mining 0.458 2026 required) Burkina Faso 2014- Bissa- Mining/ 23/06/ Renewable for 5 778/PRES/PM/ Bissa Gold SA N/A 171.25 Zandkom Valid 2031 years MME 2004- Societe des 329/PRES/PM/ Mines de Mining/ 04/08/ Renewable for 5 Taparko N/A 666.5 MCE/MFB/MED Taparko Valid 2024 years EV/MECV (SOMITA SA) Societe des 2005- Mines de Mining/ 22/06/ Renewable for 5 Bouroum 342/PRES/PM/ N/A 11.7 Taparko Valid 2025 years MCE/MFB (SOMITA SA) Societe Nord Mining/ A Mining license Yeou N/A N/A Gold Yeou Pending application has

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been submitted for the Yeou project (inside former Yeou exploration license) A Mining license application has been submitted for Societe Nord Mining/ the Zinigma Zinigma N/A N/A Gold Zinigma Pending project (inside former Yargo exploration license) A Mining license application has been submitted for the Ronguen Societe Nord Mining/ Ronguen N/A N/A projects (inside Gold Ronguen Pending former Tikare & Kongoussi 1 exploration licenses) 2015- High River Gold 3rd renewal has Exploration/ 22/08/ Yimiougou 170/MME/SG/D Mines (West N/A 117.4 been received Valid 2017 GMG Africa) Ltd 12/06/2015 2015- 2nd renewal has Jilbey Burkina Exploration/ 03/07/ Bissa Sud 160/MME/SG/D N/A 3.59 been received Sarl Valid 2017 GCM 05/06/2015 2015- High River Gold 1st renewal has Exploration/ 15/09/ Baola II 302/MME/SG/D Exploration N/A 250 been received Valid 2020 GCM Burkina Sarl 21/10/2015 2014- High River Gold Exploration/ 21/01/ Wayin 202/MME/SG/D Exploration N/A 89.33 Valid 2017 GMG Burkina Sarl 2015- 2nd renewal has Jilbey Burkina Exploration/ 09/12/ Zandkom II 407/MME/SG/D N/A 29.29 been received Sarl Valid 2018 GCM 31/12/2015 2015- 3rd renewal has Jilbey Burkina Exploration/ 04/10/ Noungou 408/MME/SG/D N/A 136.7 been received Sarl Valid 2017 GCM 31/12/2015 Guinea Societe Miniere D/94/024/ Mining/ 16/02/202 Renewable for 5 Lefa de Dinguiraye N/A 1559.3 PRG Valid 4 years (SMD)

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2 GROUP MINERAL RESOURCES AND ORE RESERVES

2.1 Overview of Group Mineral Resources and Ore Reserves

Total Mineral Resources, inclusive of gold growth and exploration projects, are 28.5 (29.0) Moz of gold as shown in Table 1.1 (Page 9). Total Mineral Resources, exclusive of gold growth and exploration projects, are 13.1 (13.6) Moz. Total Mineral Resources of gold growth and exploration projects are 15.5 (15.4) Moz. All numbers are post 12-months of depletion since the December 2014 statement, with 2014 declared numbers shown in brackets. In 2015, Nordgold reported Mineral Resources within pit shells that are defined by an USD1,500/oz price, costs and relevant modifying factors used for their estimates, compared with reporting Mineral Resources in 2014 defined by an USD1,600/oz price. For the purpose of this Overview, Resources includes Measured, Indicated and Inferred Categories and Reserves includes Proved and Probable categories.

Total Ore Reserves, inclusive of gold growth projects, are 14.0 (13.0) Moz of gold, as shown in Table 1.1 (Page 9). Total Ore Reserves, exclusive of gold growth projects, are 8.3 (7.1) Moz. Total Ore Reserves of gold growth projects are 5.8 (5.8) Moz. All numbers are net of 12-months of depletion since the December 2014 statement totalling 1.1 Moz, with 2014 declared numbers shown in brackets. The growth in Ore Reserves, reported at a USD1,200/oz gold price, are mainly due to additions from the Lefa, Bissa, Neryungri, Suzdal and Zun-Holba mines. Exploration for the 12-months to December 2015 was shifted to existing operations, including Bissa and Taparko satellite projects, to ensure timeous conversion of Mineral Resources to Ore Reserves is leveraged. Berezitovy reported a maiden underground Ore Reserve following the completion of a Pre-Feasibility study. At Taparko, the maiden Goengo open pit, and at Bissa, the maiden Yimiougou and Noungou open pits Ore Reserves were reported.

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Table 2.1: Nordgold Gold Mineral Resources and Ore Reserves by Operating Assets, Growth and Exploration Projects Resources Reserves Assets Dec 2015 Dec 2014 Dec 2015 Dec 2014 Mt g/t Moz Moz Mt g/t Moz Moz Russia – Open pit mines Neryungri 49.3 0.89 1.41 1.38 32.7 0.73 0.77 0.31 Berezitovy 14.6 1.64 0.77 1.09 11.9 1.59 0.61 0.64 Aprelkovo 9.7 0.97 0.30 0.30 2.1 1.73 0.05 0.17 Russia – Underground mines Zun-Holba 1.5 10.82 0.53 0.57 1.1 5.04 0.18 0.15 Irokinda 1.6 9.37 0.47 0.34 1.6 6.05 0.31 0.31 Western Africa – Open pit mines Lefa 110.7 1.35 4.79 5.53 62.2 1.50 3.00 2.60 Bissa 72.4 1.27 2.96 2.60 48.3 1.33 2.07 1.67 Taparko 8.7 2.57 0.72 0.67 5.4 2.88 0.50 0.58 Kazakhstan – Underground mine Suzdal 6.7 5.11 1.11 1.11 4.0 5.97 0.76 0.70 Russia – Open pit and Underground projects Gross 397.8 0.67 8.55 8.61 189.1 0.73 4.44 4.51 Uryakh – Open pit 3.4 3.89 0.42 0.42 ------Uryakh – Underground ine 11.2 3.74 1.35 1.35 ------West Africa – Open pit projects Bouly 189.6 0.57 3.49 3.49 73.8 0.56 1.32 1.32 Nairy 0.53 1.74 0.03 0.11 ------Zinigma 2.9 1.19 0.11 0.17 ------Wayin 16.0 0.69 0.36 0.36 ------Goengo 1.2 3.26 0.12 ------Kangarse 1.2 1.38 0.05 ------Yimiougou 3.7 1.76 0.21 ------Noungou 1.0 2.70 0.09 ------Baola ------0.04 ------Ankouma ------0.07 ------Sakou ------0.10 ------Bissa Sud ------0.02 ------Kazakhstan – Open pit projects Zherek 9.8 1.79 0.56 0.56 ------Balazhal 1.1 3.20 0.11 0.11 ------Nordgold Total 914.8 0.97 28.52 28.99 432.1 1.01 14.01 12.97

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Total silver Mineral Resources decreased by Gross trial stage mining depletion 245.7 (245.9) Moz, as shown in Table 2.2 (Page 15).

The Gross silver Mineral Resources decreased slightly from 38.3 Moz to 38.1 Moz, post-depletion (0.21 Moz); due to reporting Mineral Resources within a pit shell that are defined by a USD1,600/oz gold price, costs and relevant modifying factors used for estimates.

Silver Mineral Resources for the Uryakh project remain unchanged at 2.6 Moz. Open pit minable silver Mineral Resources are contained within a Whittle pit shell and reported above a 0.65g/t Ag cut-off grade, while underground mineable silver Mineral Resources were reported above a 2.00g/t Ag cut-off grade and are not contained within specified stopes.

The Prognoz project silver Mineral Resources remain unchanged at 205 (205) Moz. Nordgold has a 50% ownership of the project.

Table 2.2: Nordgold Silver Mineral Resources and Ore Reserves by Growth and Exploration Projects

Resources Reserves Assets Dec 2015 Dec 2014 Dec 2015 Dec 2014 Mt g/t Moz Moz Mt g/t Moz Moz Russia – Open pit and Underground Gross 397.8 3.08 38.10 38.31 305.7 2.38 23.44 23.65 Prognoz 9.0 708.22 205.00 205.00 ------Uryakh – Open pit 3.4 9.84 1.06 1.06 ------Uryakh – Underground 11.2 4.20 1.51 1.51 ------mine Nordgold Total 421.3 18.23 245.68 245.88 305.7 2.38 23.44 23.65

Total copper Mineral Resources are 0.0337 (0.0337) million tonnes (Mt) at Wayin project, remaining unchanged, and are shown in Table 2.3.

Table 2.3: Nordgold Copper Mineral Resources by Exploration Project

Resources Reserves Assets Dec 2015 Dec 2014 Dec 2015 Dec 2014 Mt g/t Kt Kt Mt g/t Kt Kt Western Africa – Open-pit Wayin 16.0 0.21 33.69 33.69 ------Nordgold Total 16.0 0.21 33.69 33.69 ------

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The distribution of Nordgold Mineral Resources by operating assets, growth and exploration projects are shown in Figure 2.1 (Page 16). The West Africa Mineral Resources total 12.9 Moz or 45% of the total Mineral Resources, with the Bouly development project contributing 3.5 Moz or 12%. Russian open pit Mineral Resources totals 11.3 Moz or 40% of the total Mineral Resources, with the Gross development project contributing 8.6 Moz or 30%. Nordgold’s underground Mineral Resources totals 2.5 Moz or 9% of the total Mineral Resources, with the maiden Berezitovy underground project contributing 0.2 Moz or 1%. For the Uryakh project, Mineral Resources were reported as mineable from open pits totalling 0.4 Moz and from underground totalling 1.4 Moz. The Kazakhstan Mineral Resources total 1.8 Moz or 6% of the total Mineral Resources.

Figure 2.1: Nordgold Mineral Resources by Operating Assets, Growth and Exploration Projects

The 12-month period movements in gold Mineral Resources for the Nordgold operating assets are shown in Figure 2.2 (Page 18) and Figure 2.3 (Page 18):

 The Neryungri open pit Mineral Resources increased from 1.36 Moz to 1.41 Moz post- depletion (0.10 Moz); due to lower operating costs, increased process volumes and improvements in operating efficiencies off-setting the lower gold price assumption. In 2015, a 8,489 m infill and conversion drilling programme was completed;  The Berezitovy open pit Mineral Resources decreased from 1.09 Moz to 0.77 Moz post- depletion (0.15 Moz); due to an updated open pit resource model and the lower gold price assumption. Maiden Berezitovy underground Mineral Resources of 0.17 Moz and Kolbachi satellite pit Mineral Resources of 0.01 Moz were produced. In 2015, a 14,017 m drilling programmes were completed at Berezitovy and Kolbachi;

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 The Aprelkovo open pit Mineral Resources increased from 0.27 Moz to 0.30 Moz post- depletion (0.4 Moz); mainly due to additions at Aprelkovo Main pit and Zone 10, off-setting the lower gold price assumption. In 2015, exploration programmes comprised 2,798 m of drilling focussed on the Central, South and Southwest extensions of the Main pit as well as Zone 10;  The Zun-Holba underground Mineral Resources decreased slightly from 0.57 Moz to 0.53 Moz post-depletion (0.05 Moz). In 2015, exploration was focussed on utilising drill platform created along the Zun-Holba 2 Decline to drill the Dalnaya, Kvartsevaya, Kontaktovoe and Severnoe-3 zones;  The Irokinda underground Mineral Resources increased from 0.34 Moz to 0.47 Moz post- depletion (0.07 Moz). Exploration drilling comprised 2,798 m, and resulted in additional Inferred Resources of 145 koz.  The Suzdal underground Mineral Resources remained at 1.11 Moz post-depletion (0.12 Moz). Exploration drilling comprised 11,500 m of underground drilling and 5,000 m of surface drilling, and focussed on Ore bodies 1-3 and 8;  The Lefa open pit Mineral Resources decreased from 5.53 Moz to 4.79 Moz post-depletion (0.24 Moz). Additional drilling incorporated into updated Mineral Resource models resulted in increases at the Lero-Karta Complex, Fayalala East, and Toume-Toume deposit, off-set by reductions at Firifirini, Fayalala Complex, Kankarta Complex (0.81 Moz reduction) and Kankarta North, also due to the lower gold price assumption in reporting. Regional and near-mine exploration drilling comprised 19,600 m of drilling in 2015.  The Taparko open pit Mineral Resources increased from 0.67 Moz to 0.72 Moz post-depletion (0.10 Moz). Additional drilling incorporated into updated Mineral Resource models resulted in increases at the Taparko and Bouroum pits, off-set by a reduction at Yeou, also due to the lower gold price assumption in reporting; and  The Bissa open pit Mineral Resources increased from 2.60 Moz to 2.95 Moz post-depletion (0.26 Moz). Mainly due to successful extensional exploration drilling delivering significant additions at the Bissa SW pit and Gougre pit, while remodelling of the Ronguen deposit also resulted in additional Mineral Resources. Lower operating costs, increased process volumes and improvements in operating efficiencies, also off-setting the lower gold price assumption.

The 24-month period movements in gold Mineral Resources for the Nordgold growth and exploration projects are shown in Figure 2.2 (Page 18) and Figure 2.3 (Page 18).

 The Gross open pit Mineral Resources decreased from 8.61 Moz to 8.55 Moz post-depletion (0.07 Moz);  The Bouly project Mineral Resources remain unchanged at 3.49 Moz. The Mineral Resources are reported within a pit shell that are defined by a USD1,400/oz gold price, costs and relevant modifying factors used for their estimates;  The Uryakh open pit and underground Mineral Resources remain unchanged at 1.77 Moz. Open pit minable gold Mineral Resources are contained within a pit shell that are defined by a USD1,350/oz gold price and reported above a 0.65g/t Au cut-off grade, while underground

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mineable gold Mineral Resources were reported above a 2.00g/t Au cut-off grade and are not contained within specified stopes;  Mineral Resources for the Taparko Regional exploration projects are reported as 0.21 Moz, and include Nairy and the newly discovered Goengo and Kangarse deposits.  Mineral Resources for the Bissa Regional exploration projects increased from 0.29 Moz to 0.41 Moz; and include Zinigma and the newly discovered Noungou and Yimiougou deposits;  Mineral Resources for the Burkina Faso Regional exploration project of Wayin remain unchanged at 0.36 Moz; and  In Kazakhstan, the Balazhal and Zherek deposits Mineral Resources remain unchanged at 0.11 Moz and 0.56 Moz respectively.

Figure 2.2: Managed Mineral Resources by Operating Assets, Growth and Exploration Projects

Figure 2.3: Nordgold 24-month Movement in Mineral Resources by Operating Assets, Growth and Exploration Projects

The distribution of Nordgold Ore Reserves by operating assets and growth projects are shown in Figure 2.4 (Page 19). The West Africa Ore Reserves total 6.9 Moz or 49% of the total Ore Reserves, with the Bouly growth project contributing 1.3 Moz or 9%. Russian open pit Ore Reserves totals 5.8 Moz or 41% of the total Ore Reserves, with the Gross development project contributing 4.4 Moz or 32%. Nordgold’s

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underground Russian Ore Reserves totals 0.6 Moz or 4% of the total Ore Reserves, with the Berezitovy maiden underground project contributing 0.1 Moz or 1% of the total Ore Reserves. The Kazakhstan Ore Reserves total 0.8 Moz or 5% of the total Ore Reserves.

Figure 2.4: Nordgold Ore Reserves by Operating Assets and Growth Projects

The 12-month period movements in gold Ore Reserves for the Nordgold operating assets are shown in Figure 2.5 (Page 20) and Figure 2.6 (Page 21).

 The Neryungri open pit Ore Reserves increased from 0.31 Moz to 0.77 Moz post-depletion (0.10 Moz); mainly due to conversion drilling, lower operating costs, increased process volumes and improvements in operating efficiencies In 2015;  The Berezitovy open pit Ore Reserves decreased from 0.64 Moz to 0.61 Moz post-depletion (0.15 Moz); due to an updated open pit model grade decrease off-setting lower operating costs and improvements in operating efficiencies. A Maiden Berezitovy underground Ore Reserves of 0.11 Moz were produced following the completion of an in-house Pre-Feasibility study;  The Aprelkovo open pit Ore Reserves decreased from 0.17 Moz to 0.05 Moz post-depletion (0.04 Moz);  The Zun-Holba underground Ore Reserves increased from 0.15 Moz to 0.18 Moz post- depletion (0.05 Moz). Depletion of the Adit levels Ore Reserves, were off-set by increases at Dalnaya, Kvartsevaya, Kontaktovoe and Severnoe-3 zones. The Zun-Holba 2 Decline which was

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commenced in December 2014 to access future Ore Reserves, achieved the milestone of 1,000 m of development in October 2015, and provides access to drill platforms;  The Irokinda underground Ore Reserves were maintained at 0.31 Moz post-depletion (0.07 Moz);  The Suzdal underground Ore Reserves increased from 0.70 Moz to 0.76 Moz post-depletion (0.12 Moz). Drilling for Ore Reserves replacement focussed on Ore bodies, 2, 1-3 and 4. A Decline to access Ore body 4 commenced in February 2015. Lower operating costs, resulting from improvements in operating efficiencies, and devaluation of the Kazakhstani Tenge;  The Lefa open pit Ore Reserves increased from 2.60 Moz to 3.00 Moz post-depletion (0.24 Moz). Ore Reserves were increased at Lero-Karta (1.91 Moz), Fayalala (0.56 Moz) and Toume Toume (0.4Moz); mainly due to infill drilling, remodelling and the positive affect of lower operating costs due to cost initiatives, and operational and productivity improvements. Ore Reserves at Kankarta (0.15 Moz) and Firifirini open pit (0.18 Moz) decreased, while the historical Heap Leach (0.16 Moz) Ore Reserves remained unchanged.  The Taparko open pit Ore Reserves decreased from 0.58 Moz to 0.50 Moz post-depletion (0.10 Moz). Ore Reserves decreased at the Taparko pits (0.31 Moz); off-set by increases in satellite pit Ore Reserves (0.18 Moz), including a maiden Ore Reserve at the Goengo deposit; and  The Bissa open pit Ore Reserves increased from 1.67 Moz to 2.01 Moz post-depletion (0.27 Moz). Successful near-mine Ore Reserves replacement drilling programmes focussed on the SW and Gougre pits; while maiden Ore Reserves were reported for the Yimiougou and Noungou satellite pits.

The 12-month period movements in gold Ore Reserves for the Nordgold growth projects are shown in Figure 2.5 and Figure 2.6 (Page 21).

Figure 2.5: Managed Mineral Reserve by Operating Assets, Growth and Exploration Projects

 The Gross open pit Ore Reserves decreased from 4.51 Moz to 4.44 Moz post-depletion (0.05 Moz);  The Bouly project Ore Reserves remained unchanged at 1.32 Moz, defined in the course of the Feasibility Study. Construction is well advanced, with commissioning and first gold production planned for Q3 2016.

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Figure 2.6: Nordgold 24-month Movement in Ore Reserves by Operating Assets and Growth Projects

2.2 Assessment and Reporting Criteria

The assessment and reporting criteria as outlined in the 2012 JORC have been used in the 31 December 2015 preparation of Mineral Resources and Ore Reserves for each operating asset, from which the numbers for this report have been drawn. The process principally comprises a technical review of the Mineral Resources and Ore Reserves, together with a techno-economic appraisal of the relevant mining and processing assets. The Mineral Resources and Mineral Reserves are underpinned by appropriate Mineral Resources Management processes and protocols that ensure adequate corporate governance.

During 2015, Nordgold has further developed its expertise in exploration, resource modelling, mine planning and reconciliation methodologies for open pit and underground operations. It constantly reviews and considers the application of industry best practices in Mineral Resources Management at all its operating assets, growth and exploration projects.

Comprehensive quality assurance and quality control protocols are in place at all Nordgold assets, development and exploration projects, using leading industry practice in data acquisition, reputable certified laboratories and analytical controls.

Mineral Resources tonnages and grades are estimated in-situ over a minimum mining width, and include mineralisation below the selected cut-off grade to ensure that the Mineral Resources comprise practical mining blocks of adequate size and continuity. Measured and Indicated Mineral Resources are reported inclusive of those Mineral Resources modified to produce Ore Reserves. A USD1,500/oz gold price was used for Mineral Resources reporting of the operating assets, representing upside potential to that used for Ore Reserves.

Ore Reserves planning assumptions were developed for each operating asset and all growth projects, and reflect specific technical assumptions and costs structures derived from actual production history or extensive Pre-feasibility or Feasibility Studies. The reported Ore Reserves are that portion of the Mineral

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Resources, which technically and economically have demonstrated, can justify extraction at the time of disclosure (to a minimum of a Pre-Feasibility Study). Estimates of tonnages and grades quoted as Ore Reserves include allowances for all mining dilution, all other mining factors (modifying factors) and consequently are reported as net tonnes and grades delivered to the processing facilities. An USD1,200/oz gold price was used for Ore Reserves reporting.

The Competent Persons in terms of JORC 2012 who take responsibility for the reporting of Nordgold’s Mineral Resources and Ore Reserves, have conducted internal technical reviews, and are listed in Ошибка! Источник ссылки не найден.. The operations, growth and exploration projects contributing persons are listed in Ошибка! Источник ссылки не найден..

Table 2.4: Nordgold Management Company Competent Persons in Accordance with JORC Code (2012) Geology Mining Processing Georgii Sorokin, Louw Smith, Alexey Shcherbachev, Mike Philip Engelbrecht Howard Golden Monaghan

Table 2.5: Contributing Persons Area Asset Geology Mining Processing Aprelkovo Phil Newall, WAI 2014 Mikhail Tarasyuk, Boris Lankov Mikhail Tarasyuk, Marsel Berezitovy Georgii Sorokin, Victor Frolov

Gazizov

Neryungri Mikhail Tarasyuk, Zagan Boris Lankov, Philip Georgii Sorokin,

(Tabornoe) Vitalii Engelbrecht Russia Gross Georgii Sorokin, Alexey Shcherbachev Boris Lankov Zun-Holba Gennady Shulyak Aleksandr Melanin Victor Frolov Irokinda Gennady Shulyak Aleksandr Melanin Victor Frolov Olivier Varaud, Chandra Bissa Arnand van Heerden Glen Smith Sumarah

Optiro, Alexander Olivier Varaud, Mike Taparko Andre Morneau Hagan Monaghan Olivier Varaud, Mike Yeou Phil Newall, WAI 2014 Andre Morneau Monaghan Optiro, Alexander Olivier Varaud, Mike Burkina Faso Burkina Bouroum Andre Morneau Hagan Monaghan Bart Stryhas, SRK Bret Swanson, SRK Consulting Eric Olin, SRK Consulting Bouly Consulting Inc. Inc. Inc.

Nana Owusu Ansah, Martin Lefa Ignatius Krogh Luke Holden White Toume Nana Owusu Ansah, Martin Guinea Luke Holden

Toume White

Aleksandr Melanin , Suzdal Mikhail Netesov Yerzhan Karkaranov

Iakovenko Grigorii Kazakhstan

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Exploration / New John Learn, Boris Alexey Shcherbachev, Mike Boris Lankov, Philip Projects Malkin Monaghan Engelbrecht 2.3 Development and Exploration Projects

In 2015, Nordgold’s investment in exploration remained at comparatively high levels, with exploration expenditure for the period amounting to USD31.0 million (USD25.6 million), as listed in Table 2.6.

The exploration for the 12-months to December 2015 centred heavily on reserves conversion as well as on gold growth and exploration projects. The majority of the exploration expenditure was invested in African in-mine and near-mine exploration as well as drilling at the Zun-Holba and Irokinda underground mines. All gold depleted during 2015 was replaced through the activities of exploration and resource to reserve conversion. Additionally, the Company invested in exploration programmes of the Montagne d’Or earn-in project (USD6.0 million) and Pistol Bay project (USD3.9 million).

Table 2.6: Exploration Drilling and Expenditure 2015 2014 Asset Meters Drilled (000) USD Meters Drilled (000) USD Russia

Aprelkovo 2,798 67 2,085 630 Berezitovy 14,017 1,578 13,134 363 Neryungri-Gross 7,865 3,580 1,886 1,691 Buryatzoloto (Zun-Holba and 52,192 7,422 65,684 7,303 Irokinda mines) Green Fields 186 1,280 898 Burkina Faso

Taparko* 18,083 3,367 12,952 1,812 Bissa 57,195 3,355 70,192 3,449 Green Fields (including 78,337 6,200 51,131 5,364 Bouly)* Guinea Lefa* 42,086 4,536 38,500 3,154 Kazakhstan Suzdal 65,108 662 16,188 913 * including RC, RAB and/or Auger drilling

The 2015 primary exploration focus has shifted from main growth projects, where the target of delivering substantial Ore Reserves was achieved by 2015, to on and around existing mines infrastructure to ensure that the timeous conversion of Mineral Resources to Ore Reserves are leveraged.

Comprehensive quality assurance and quality control protocols are in place at all the Nordgold operations, growth and exploration projects, using leading industry practice in data acquisition, reputable certified laboratories and analytical controls.

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3 OPERATING MINES - BURKINA FASO

3.1 Regional Geology

The geology of Burkina Faso can be subdivided into three major litho-tectonic domains: a Paleo-proterozoic basement underlying most of the country; a Neo-proterozoic sedimentary cover developed along the western, northern and south-eastern portions of the country; and a Cenozoic mobile belt forming small inliers in the northwestern and extreme eastern regions of the country.

Figure 3.1: Burkina Faso Regional Geologic Map

Most of the known gold occurrences are hosted in Neo-proterozoic Birimian meta-sediments and volcanics, which mainly include volcaniclastics, tuffaceous beds and a few more massive metamorphosed basaltic flows in addition to Eburnean granitoid intrusions.

The principal hosts of most of the epithermal and mesothermal gold deposits include faults, fractures and shear zones, and the continuous reactivation of these structures likely had a profound effect on both the distribution and the mode of gold mineralization throughout the region.

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3.2 Bissa

3.2.1 Location and Access

The Bissa gold deposit is located approximately 85km north of Ouagadougou, the Capital City of Burkina Faso, and is accessible in about 1½ hours via Route Nationale 22, a sealed road, connecting Kongoussi to Ouagadougou. The Bissa Mine includes the Ronguen gold deposit which is located approximately 15km North-Northwest of the Bissa Mine.

Figure 3.2: Location2 of Bissa Group in Northeastern Burkina Faso

2 Location maps throughout this report were created using ArcGIS® software by Esri. ArcGIS® and ArcMap™ are the intellectual property of Esri and are used herein under license. Copyright © Esri. All rights reserved.

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Figure 3.3: Detailed Location of Bissa Mine and Bissa Satellite Projects

3.2.2 Project Ownership and License Details

Nordgold has an interest in the Bissa gold mine through their 100% interest in High River Gold (HRGWA). Bissa Gold SA, which owns both the Bissa mine and Bouly deposit, is 90% owned by Nordgold through HRGWA and 10% by the state of Burkina Faso. Exploration permits are owned by Jibley Exploration Burkina, which is a wholly owned subsidiary of Nordgold.

The Tikaré and Kongoussi 1 exploration permits which cover the Ronguen gold deposit are owned by Goldrush Burkina SARL, and are two adjacent exploration tenements located south of the town of Kongoussi in the Province of Bam. Nordgold has 100% interest in Goldrush Burkina SARL. The land tenure information presented herein is derived from copies of the Orders of the Ministère des Mines, des Carrières et de l’Énergie granting each permit. The boundaries of each permit are defined by corner posts positioned according to geographic coordinates (UTM Clarke 1880 ellipsoid, Adindan Datum).

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License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Burkina Faso 2014- Bissa- Mining/ 23/06/ Renewable for 5 778/PRES/PM/ Bissa Gold SA N/A 171.25 Zandkom Valid 2031 years MME A Mining license application has been submitted for the Ronguen Societe Nord Mining/ Ronguen N/A N/A project (inside Gold Ronguen Pending former Tikare & Kongoussi 1 exploration licenses)

3.2.3 Local Geology

Refer Figure 3.1: Burkina Faso Regional Geologic Map (Page24).

The Bissa Mine and Ronguen Gold Project occur on the northeast portion of the Boromo greenstone belt. The dominant geological features in this area include the Kogkoundi Granodiorite, an elongated northeast- southwest felsic intrusion and the Sabce deformation zone with a large linear chain of gold-in-soil anomalies located along its northwest margin. The volcano-sedimentary sequence comprises mafic to intermediate volcanic and clastic sedimentary rocks, the contact between the two being characterised by a thin and discontinuous quartz-pebble conglomeratic sub-unit.

The principal areas of gold mineralisation are summarised below:

 At Bissa Hill, two elongated tabular auriferous bodies are located along the discontinuous quartz pebble conglomerate contact between clastic sedimentary rocks and mafic volcanic rocks, and the mineralisation consists of quartz breccias and quartz veins and sulphide-rich veinlets;  The Bissa South Extension (“Bissa SE”) area, which has a strike length of about 1.3km, represents the strike extension of the Bissa Hill deposit; however gold mineralization is mainly developed in mafic schists to the southeast of the sedimentary-volcanic rock contact;  The Bissa Southwest (“Bissa SW”) area is situated to the west of Bissa Hill and Bissa SE; the gold mineralisation is related to weak to moderate hydrothermal alteration, developed along the sheared limbs of a train of folds affecting argillaceous and sandstone sub-units;  The IO area is located to the southwest of Bissa SE and gold mineralization occurs in mafic volcanic rocks and forms a crescent shaped zone shallowly plunging to the northeast; and  Further to the southwest, Zones 51, 52 and 53 comprise gold mineralization developed predominantly in mafic schists of volcanic origin over a broad area extending south of Bissa South Extension and Bissa Southwest.

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Figure 3.4: Gold Mineralization at Bissa Project

The Boken zone, located further to the south-west, contains gold mineralization characterized by sulphide irregular veinlets (pyrite and pyrrhotite) associated with silica-based epidotic and amphibolite weathering, and locally hosts white mica. Most of the gold mineralisation is hosted in pervasive silica-pyrite altered rocks associated with a ductile-brittle shear zone that borders the mineralization to the north.

The Gougre deposit, located about 10 km south of Bissa mine, contains gold mineralisation hosted mainly in the hanging wall of the Gougre fault. Gold is associated with stringers and disseminations of pyrite in basaltic rocks metamorphosed to amphibolite facies. The “Gougre fault” dips about 70°E and is only a few metres wide, yet it juxtaposes two lithological domains of contrasting metamorphic grade, (greenschist- amphibolite) implying a significant vertical component of displacement.

The Ronguen deposit is hosted in a late E-W trending thrust fault, dipping 35°S, that cross-cuts steeply dipping bimodal sedimentary rocks (conglomerates and pelites with only a very rare sandstone component). Gold is associated with quartz veining and disseminated pyrite (plus minor arsenopyrite) in graphitic rocks. Metallurgical recoveries in the graphitic rocks are very poor, so only the oxide and upper transition zones are economically mineable to a maximum depth of about 70m.

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3.2.4 Current Mineral Resources and Ore Reserves Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven 11,785 1.11 419 Probable 36,482 1.40 1,648 Proven+Probable 48,267 1.33 2,067 RESOURCES

Measured 10,446 1.37 461 Measured Stockpiles 5,894 0.83 157 Indicated 41,388 1.22 1,622 Measured+Indicated 57,729 1.21 2,240 Inferred 14,719 1.52 719 Total (Measured+Indicated+Inferred) 72,448 1.27 2,959

3.2.5 Operational Profile – Mine and Plant

Infrastructure Process plant, associated workshops and administration buildings Mine Type Open Pit - RC grade control, drill & blast, excavation & transportation operation of multiple-pits Processing Type Conventional crushing, grinding and carbon in leach (CIL) Start-up Commenced production January 2013

Mining operations, totaling 25.0Mt total material mined in 2015, currently consist of eight separate open pits at the SW, IO, SE, BH1, BH2, Z51, Z52 and Gougre pits. During 2015, mining of the first stages of the IO, SE, BH 1 and BH 2 pits were completed, mining operations in Gougre pits commenced and expansion of Z51 and Z52 continued. During 2016, mining operations of the Gougre, Z51, Z52 and SW pits will continue. The Bissa open pits are currently operated by a conventional truck and excavator mining method. Mining is based on 12m high benches for ore and waste, and both are excavated on 3m high lifts.

Ore is processed by conventional single stage crushing, SAG and Ball milling, and gold is recovered in a carbon in leach (CIL) circuit, which are used to produce gold doré.

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3.2.6 Key Operational Developments

Mining:  Mineral Resource models were updated inclusive of all 2015 drilling and pit mapping during mining operations. Mineralization was constrained;  The Bissa pits are currently developed in multiple stages to optimise NPV. The final SW pit will consist of 3 stages, the current stage 2 and 3 have reached pit bottoms of +228m asl and +320m asl respectively. The Z51 pit has reached the +290m asl in the starter pit where the cut back has reached to 330m asl and the Z52 starter pit has reached the +303m asl whilst the cutback has reached the 340m asl;  The Gougre open pit will consist of 5 stages; and  Drill and blast optimisation through implementation of improved drilling and blasting QA/QC practises including: . Improved blast analysis i.e. fragmentation, powder factor, and D & B database. . Ore loss/Dilution control through introduction of Blast Monitoring Technology i.e. blast monitoring markers (balls) to measure ore block displacement. . Computerised blast designs using a blast design editor (2DBench from JK SimBlast) for analysing any blast based on the hole layout, the explosives and timing. Geotechnical  The optimum inter-ramp angle in the weathered zone should not exceed 35°, using factor of safety of 1.3. For IO pit where the weathered zone thickness is up to 80m, the inter-ramp slope angle in the weathered zone is 33°; and  The pits at Bissa currently designed with a slope configuration of 60° batter angle, 10m bench height, and 6m berm width which has an inter-ramp angle of 40°. Resulting the factor of safety of 1.14.

Mobile Maintenance:  Condition based maintenance philosophy implemented for mobile equipment by making use of VisionLink, Minestar Health, oil & fuel analysis, together with an component rebuild program (PCR) assist in increasing the availability and reliability of the fleet at Bissa;  Infrastructure upgrade for the wash bay and bulk oil supply in the workshop, which will allow for proper washing of the units to be serviced and introducing kidney loop filtering of the units at 500 hour service intervals;  A 120 t low bed loader, E190 Sleipner unit will be delivered towards the end of Q2 2016 to reduce the walking time of equipment from pit to pit and workshop, which should increase the productivity and reduce undercarriage repairs cost and time going forward;  Review of the PCR program for the next cycle under review in order to ensure that the correct strategy is adopted to reduce the USD/t cost of the fleet; and  Additional service tucks will also be delivered end Q2 2016 in order to cover the expanding operation.

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Processing:  Bissa processed 4,1Mt of ore in 2015, a 9% improvement compared with 2014, and 36.7% above design, in spite of increasing ore hardness. Increased milling throughput was achieved partially due to continued improved operational practices, maintenance and the installation of a pebble crusher;  Mill throughput is forecast to reduce in line with increased hard ores in the mill feed blend;  Gold recovery 2% lower compared with 2014 recoveries at 86.9% as a result of reduced leach retention time due to increased throughput and the processing lower recovery South West fresh ores. Leach tank No. 7 is being constructed to mitigate the impact of reduced retention time, commissioning scheduled for H1 2016; and  The tailings storage facility continues to be raised as per current LoM design.

General:  A key Bissa’s management priority remains the optimisation of the Business System of Nordgold (BSN) programmes on the mine, which aims to establish best in class sustainable processes across the company. The Bissa BSN program achieved USD13.8 million savings in 2015. Target for 2016 is to deliver a proper improvement in cost control and to reinforce operational practices, with special focus on productivity increases in the mining areas. The targeted 2016 effect on EBITDA is circa USD8 million.

3.2.7 Recent Exploration

During 2015, exploration works focused on the conversion of Inferred Resources through infill drilling and mineralisation extensions at the Bissa North and South open pits as well as sterilisation drilling for waste and infrastructure locations.

Table 3.1: Summary of Recent Bissa Drilling Campaigns Method Year Number of Drillholes Metres 2013 12 2,298 Core (Wireline) 2014 29 2,095 2015 55 3,610

An in-house feasibility study, leading to a Mining License application, was finalised for the Ronguen deposit.

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Figure 3.5: Exploration Drilling Programme at Southwest Extension of Z51, Z52 and SW Pits

Figure 3.6: View of South West Pit Cutback (January Figure 3.7: View Bissa Process Plant 7th CIL tank 2016) construction

3.2.8 Technical Reports References

 Castaing, C et al 2003: Notice explicative de la Carte géologique et minière du Burkina Faso à 1/1 000 000, Ministère des carrières des mines et de l’énergie, Burkina Faso;  SRK Canada 2007: Bissa Mineral Resource Estimation Report, April 2007;  SRK Canada 2009: Bissa Mineral Resource Evaluation Report, June 2009; and  WAI 2013: CPR Report on the Taparko-Bouroum and Bissa Assets, Burkina Faso, July 2013.

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3.3 Taparko

3.3.1 Location and Access

The Taparko-Bouroum gold project is located in the Namentenga Province, Burkina Faso in West Africa, approximately 200km northeast of Ouagadougou, the Capital City of Burkina Faso.

Figure 3.8: Location of Taparko Group in Northeastern Burkina Faso

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The F12 and Welcome Stranger projects are in the Bouroum licence, which lies approximately 40km west of the Taparko Licence, and is easily accessible from the capital.

Figure 3.9: Detailed Location of Taparko-Bouroum-Yeou

3.3.2 Project Ownership and License Details

Nordgold has an interest in the Taparko gold mine through their 100% interest in High River Gold (HRGWA), the previous owners whose right to the Taparko-Bouroum-Yeou gold project is held through the Société des Mines de Taparko, SOMITA SA, a Burkinabe subsidiary. SOMITA SA is 90% owned by HRG with the remaining 10% carried interest held by the Government of Burkina Faso. An Exploitation Permit for gold is in place for Taparko and covers an area of 666.5km2. An Exploitation Permit is also in place for Bouroum, this license applies to an area of 11.7km2.

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License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Burkina Faso 2004- Societe des 329/PRES/PM/ Mines de Mining/ 04/08/ Renewable for 5 Taparko N/A 666.5 MCE/MFB/ME Taparko Valid 2024 years DEV/MECV (SOMITA SA) Societe des 2005- Mines de Mining/ 22/06/ Renewable for 5 Bouroum 342/PRES/PM/ N/A 11.7 Taparko Valid 2025 years MCE/MFB (SOMITA SA) A Mining license application has been submitted Societe Nord Mining/ for the Yeou3 Yeou3 N/A N/A Gold Yeou Pending project (inside former Yeou exploration license)

3.3.3 Local Geology

Refer Figure 3.1: Burkina Faso Regional Geologic Map (Page24).

Gold at Taparko occurs predominantly associated with the Taparko shear zone, a north-north westerly trending splay off the regional Markoye Fault, located along a thin band of meta-volcanic and metasedimentary rocks enclosed by granodiorite. Gold-bearing, sulphide poor quartz veins and veinlets occur throughout most of the known length of the Taparko shear zone.

3.3.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven 583 1.12 21 Probable 4,840 3.09 481 Proven+Probable 5,422 2.88 502 RESOURCES

Measured 138 2.52 11 Measured Stockpiles 583 1.12 21 Indicated 7,869 2.76 697 Measured+Indicated 8,590 2.64 730 Inferred 2,505 2.08 167 Total (Measured+Indicated+Inferred) 11,095 2.52 897

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Mining operations currently consist of three separate open pits located at Taparko, and one satellite open pit located at Bouroum. The Taparko open pits are operated by a conventional truck and excavator mining method. Mining is based on 10m high benches for ore and waste, and both are excavated on 3m high lifts.

Ore is processed by conventional 3-stage crushing, grinding, and gold is recovered in a carbon in leach (CIL) circuit, which are used to produce gold doré.

The Yeou project is likely to consist of two small satellite pits to feed the Taparko mine, and will be operated by conventional truck and excavator mining. Ore will be trucked to Taparko for processing.

3.3.5 Operational Profile – Mine and Plant

Infrastructure Process plant, associated workshops and administration buildings Mine Type Open Pit - RC grade control, drill & blast, excavation & transportation operation of multiple-pits Processing Type Conventional crushing, grinding and carbon in leach (CIL) Start-up Commenced production late-2007

3.3.6 Key Operational Developments

Mining:  Implementation of Reverse Circulation drilling, pit mapping and reconciliation processes improved the quality of mine planning;  The Taparko open pits are currently developed in stages in order to expose the ore from the best profit stages earlier and to optimise the NPV. The final 35 pit will consist of 5 stages, the current stage 1 and 2 have reached pit bottoms of +570m asl and +570m asl respectively. The final 2N2K and GT open pits will consist of 4 stages, the 2N2K pit has reached the +570m asl and the GT pit has reached the +570m asl respectively;  The final Bouroum open pit will consist of 5 stages; stage 1 current pit bottom is at +570m asl, and has reached the transitional ores;  Yeou open pit feasibility study was completed in H2 2015; mine development is scheduled for H1 2017;  Goengo open pit feasibility study was completed in H2 2015; mine development is scheduled for H2 2016; and  Drill and blast optimisation through implementation of improved drilling and blasting QA/QC practises including: . Improved blast analysis i.e. fragmentation, powder factor, D & B database. . Ore loss/Dilution control through introduction of Blast Monitoring Technology i.e. blast monitoring markers (balls) to measure ore block displacement.

Mobile Maintenance:

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 Condition based maintenance philosophy implemented for mobile equipment and selected fixed plant.

Processing:  The Taparko processing plant improvements focussed on: . Throughput optimization – hard rock processing capacity was improved by the installation of a double deck screen in the 3 stage crushing circuit to improve tertiary crushing capacity by reducing the circulating load and the installation of a pebble crusher; and . Recovery optimization – installation of a 5mtpa oxygen plant was completed in H1 2015 as planned; and  The construction of the final 5m tailings wall raise with sufficient capacity for current LoM was completed in 2015 as planned.

General:  Business systems cost optimisations achieved USD4.8 million in 2015 with the target to reach USD6.9 million in 2016; and  The Mak1 generator construction and commissioning was completed in H2 2015, the targeted HFO/LFO consumption of 90/10 has been achieved.

3.3.7 Recent Exploration

Table 3.2: Summary of Exploration Drilling at Taparko (including Yeou and Goengo) Year Number of Drillholes Metres 2013 425 27,138 2014 402 35,222 2015 205 18,083

The 2014 near mine exploration program focused of converting Mineral Resources to Ore Reserves at the GT, 2N2K, Zone 4 & 7, and 35 pits at Taparko and F12 and Welcome Stranger at Bouroum.

Regional exploration drilling including development drilling was also undertaken on Goengo and Yeou 3 prospects. The objective of this drilling was to enable an upgrade of the Mineral Resources from Inferred to Indicated or Measured classification, under the guidelines of the JORC code (2012), as well as test the down dip and along strike extensions to mineralisation.

Recent exploration has shown that the mineralised zones at Kangarse, Goengo and Yeou3 extend both at depth and to a lesser extent, along strike, offering up the potential to significantly increase the contained ounces.

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Figure 3.10: Welcome Stranger Pit near Figure 3.11: Pebble crusher installation Bouroum

3.3.8 Technical Reports References

 WAI 2013: CPR Report on the Taparko-Bouroum and Bissa Assets, Burkina Faso, July 2013; and  WAI 2015: Mineral Resource Estimate for the Yeou Gold Deposit, Burkina Faso, January 2015.

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4 OPERATING MINES - GUINEA

4.1 Lefa

4.1.1 Location and Access

The Lefa Gold Mine is located in the north of the Kankan region, approximately 700km northeast of Conakry (the capital of the Republic of Guinea) at Léro near the Malian border and some 10km south of the village of Siguirini.

Figure 4.1: Location of the Lefa Gold Mine

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Figure 4.2: Detailed Location of the Lefa Gold Mine

4.1.2 Project Ownership and License Details

The Dinguiraye Mining Concession comprises the main Licence of the Lefa Gold Project and was granted on 17 February 1999. The Licence covers an area of 1,559km2 and was granted for a term of 25 years with a renewal every 5 years.

Nine exploration permits have also been granted to SMD at various times since this and comprise areas adjoining the main Dinguiraye Concession. After initial two year renewals the majority of these Exploration Permits have since been relinquished or expired and not renewed. The concession boundaries have not been legally surveyed, but are described by latitude and longitude via decree.

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License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Guinea Societe D/94/024/ Miniere de Mining/ 16/02/ 1559. Renewable for 5 Lefa N/A PRG Dinguiraye Valid 2024 3 years (SMD)

4.1.3 Regional and Local Geology

The Lefa gold project lies within the Siguiri Basin, part of the Birimian volcano-sedimentary series, which dominates the basement geology of the West African Shield. The Birimian Series, including the Firifirini Basin, is under-plated by a cratonised block of Archaean high-grade metamorphic and intrusive rocks termed the Man Shield. A collisional environment resulted in the development of dominantly greenschist facies metamorphism and regional northeast to northwest trending deformation zones, considered to be fundamental to the development of gold mineralisation in the Firifirini Basin.

2 The Lefa ‘corridor’ is a zone some 10km wide within the 1,500km Dinguiraye Concession. The oldest rock types, Birimian sediments, comprise an upper clayey formation and a lower coarser arkosic layer, with gold occurrences more common in the latter. Apart from younger dolerites and sandstones there is virtually no fresh outcrop. Extensive weathering and lateritisation have resulted in economic laterite and saprolite gold deposits, with primary gold mineralisation occurring in quartz vein deposits within the Birimian sedimentary units.

There are three major styles of mineralisation within Birimian sedimentary units:  Quartz stockwork and sheeted quartz-carbonate-albite-sulphide veins (Fayalala);  Disseminated pyrite-gold mineralisation in haematite-silica-carbonate highly fractured structures (Lero, Karta); and Retrograde skarn style mineralisation with magnetite-epidote (Firifirini, formerly Siguirini).

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4.1.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven 13,773 0.54 241 Probable 48,404 1.77 2,761 Proven+Probable 62,177 1.50 3,003 RESOURCES 3 Measured 2,196 1.69 119 Measured Stockpiles 13,847 0.57 253 Indicated 71,526 1.53 3,522 Measured+Indicated 87,569 1.38 3,893 Inferred 23,103 1.21 901 Total (Measured+Indicated+Inferred) 110,672 1.35 4,794

4.1.5 Operational Profile – Mine and Plant

Infrastructure Mines, process plant, associated workshops and administration buildings Mine Type Open Pit - RC grade control, drill & blast, excavation & transportation operation of multiple-pits Processing Type Conventional crushing, grinding and carbon in pulp (CIP) Start-up Commenced production late-2007

4.1.6 Key Operational Developments

Mining:  Technological programmes implementation (Datamine, Leapfrog) improve modelling turnaround and accuracy;  The Lefa pits are mined based on stages to optimise NPV. The Lero-Karta Complex is divided in to 4 contiguous pit areas each of which is stage mined, the Kankarta complex is currently not being mined, but planned for mining in H2 2016, the Fayalala complex is split into 3 main stages and the Fayalala South section is currently being exploited, the Firifirini complex is split in to 8 stages. Stages 1 and 2 are completely mined while stages 3 and 6 are being mined for ore. Stages 4 and 5 are also being prepared for production. Kankarta North is a single phase pit which is currently being mined by a contractor;  The stage designs for the Lero-Karta Complex were re-optimised to give quick access to ore while push backs continue on other stages. This strategy is yielding results as the complex will be providing a constant ore supply for milling from the second half of 2016;

3 Mineral Resources constrained by pit shells at US$1,500/oz.

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 Drill and Blast contractor option study is underway to analyse best direction for the execution of the life of mine drill and blast master plan;  Drill and blast optimisation through implementation of improved drilling and blasting QA/QC practises include improved blast analysis i.e. fragmentation, powder factor, D & B database; and  Ore loss/Dilution control through introduction of Blast Monitoring Technology i.e. blast monitoring markers (balls) to measure ore block displacement.

Mobile Maintenance:  Haulage unit replacement strategy being implemented 2016 and 2017 to mitigate poor availability performance of the site’s Komatsu 785-5 dump trucks. The first six (6) replacement trucks are due to be commissioned in Q4 2016. It is anticipated that this will increase volume movements by 7% from the current levels;  2016 PCR plan execution is being conducted with the assistance of OEM supplier (BIA) to ensure higher standards of QA/QC and quicker execution of the plan;  Drill and blast rig maintenance restoration plan is being developed with the assistance of OEM supplier (Atlas Copco);  Tyre maintenance strategy re-defined to include periodic tyre inspections, tyre pressure and TKPH monitoring, planned tyre rotation/thread matching, and tyre repair programme. This is expected to reduce mining equipment tyres consumption/cost on site; and  Asset reliability/availability improvement programme being rolled out. This include: . Optimization of maintenance spares requirements through the review of high usage/low value spares as well as safety stock items for major fleets including min/max stock levels; and . Addition of Predictive maintenance activities such as the implementation of a detailed pre-PM inspections, comprehensive backlog planning/execution and post-PM equipment health assessment (PM clinic).

Processing:  Availability and throughput in 2015 was in line with 2014, further improvement in mill availability is expected in 2016 as a result of the successful completion of the Reclaim feeder project. Throughput is however scheduled to decline in 2016 due to the increase of hard rock in the mill feed blend, a feasibility study for the installation of an additional mill will be conducted in H1 2016 to mitigate the impact of harder ores;  Recovery optimization – planned recovery of 89% achieved in 2015 with addition of Peroxide and lead nitrate, an agreement was signed with Rickair to supply and operate a 10 ton per day PSA oxygen generation plant to replace the peroxide addition; and  The current tailings planned 5m raise was partially completed in 2015 and will be completed in H1 2016, providing 12 to 18 month’s capacity. A new tailings location has been identified and sterilisation drilling commenced, construction is scheduled to commence in H1 2017 and will cater for LoM tailings storage requirements.

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General:  Business systems cost optimisations achieved USD23 million in 2015 with the target to reach USD13 million in 2016; and  Mine fleet optimisations through closer monitoring of utilization and productivity. Overall efficiency (OEE) project implementation with focus on training of excavator operators and operational practice improvement (hungry boards installation, a bonus system, and reduction of downtimes)

4.1.7 Recent Exploration

During 2015, exploration work comprised drilling of 622 reverse circulation drill holes totalling 38,500m, focused mainly on infilling Mineral Resources and extension drilling of known mineralization in and around the actively mined pits.

Exploration drill coverage was extended in search of new zones of mineralization around the Firifirini deposit and several prospects within 5km of the Fayalala Plant. Reconnaissance surface geochemical sampling comprised 803 samples collected mainly in the extended area around the Firifirini deposit.

Table 4.1: Summary of Exploration & Near Mine Drilling at Lefa Year Number of Drillholes Metres pre-2015 22,021 1,527,521 2015 798 42,086 Total 22,819 1,569,607

Figure 4.3: Mining Of The Karta Open Pit complex Figure 4.4: Heavy Vehicle Wash Bay

4.1.8 Technical Reports References

 WAI 2013: Updated CPR Report on the Lefa Asset, Guinea, July 2013.

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5 OPERATING MINES - RUSSIA

5.1 Berezitovy

5.1.1 Location and Access

The Berezitovy property is located in the Amurskaya Region of the Russian Federation, 1,000km north of Blagoveshensk, Amurskay Region capital. The closest large town to the property is Skovorodino, approximately 128km southeast by road. The nearest population centre is Urusha located 50km to the south on the Trans-Siberian railway and a major road. Refer to Figure 5.1.

Figure 5.1: Location of Berezitovy Gold Deposit, Amurskay Region, Russian Federation

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5.1.2 Project Ownership and License Details

In November 2008, Nordgold took a controlling stake in High River Gold Mines Ltd., a Canadian company who had a 99.91% ownership (Amur regional government has a 0.09% stake) of the Berezitovy Project.

Figure 5.2: Detailed Location of Berezitovy

The Berezitovy property comprises one Mineral License (BLG 11787-BR) covering a total area of 17km2. The Mineral License (in accordance with Russian Mining Law) is in good standing, allowing exploration and mining to be carried out until 2017.

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 01/08/ Berezitovy BLG 11787 BR Berezitovy 99.91 17 Valid 2017

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5.1.3 Regional and Local Geology

Berezitovy, located in the Prishulkino Structural-Metallogenic Zone, is situated within the Magochinskaya thrusted block of Archean age rocks and is near the intersection of Sergachinski and Khaiktinski regional faults. Structurally, the region is characterised by Precambrian, Mesozoic and Quaternary events. The Precambrian and Mesozoic rocks have been intruded by several Jurassic age plutons, ranging from alaskites to lamprophyres. The folded volcanic and sedimentary rocks have also been affected by block faulting.

The property is fault bounded, the east-northeast trending North and South Sergachinski faults defining a graben, whereas the north trending Khaiktinski and Bolshe Ilichinski faults define an upthrust block. The Berezitovy deposit is underlain predominantly by early Proterozoic biotite-feldspar gneissic granites and granodiorites.

Gold mineralisation in and around the Berezitovy property is related to explosive breccia within granitic gneisses. This is present within a north-northwest trending and steeply southwest dipping zone of brecciated and hydrothermally altered granodiorite. Gold mineralisation is also associated with metasomatic alteration and quartz flooding in granitic and granodioritic rocks. The contact between the granodiorite and the main metasomatic alteration zone in South Zone can clearly be identified in the open pit.

5.1.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven 4,850 1.17 182 Probable 7,096 1.89 430 Proven+Probable 11,946 1.59 612 RESOURCES Measured 126 2.34 9 Measured Stockpiles 4,173 1.02 137 Indicated 5,808 1.62 302 Indicated Underground Resources 508 4.67 76 Measured+Indicated 10,614 1.54 525 Inferred 3,256 1.47 154 Inferred Underground Resources 774 3.7 92 Total (Measured+Indicated+Inferred) 14,644 1.64 771

* Constrained by a pit shell at USD1500/oz

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5.1.5 Operational Profile – Mine and Plant

Infrastructure Mine, process facilities, associated workshops and administration buildings. Power provided from the main substation at Skovorodino, through a 101km, 110kW power line Mine Type Open Pit – blast hole grade control, drill & blast, excavation & transportation operation of single pit Processing Type Conventional crushing, grinding, leaching and carbon in pulp (CIP) and heap leach crushing and stacking and carbon in solution (CIS) Start-up Commenced production in December 2007

The deposit is mined by conventional open pit techniques with drill and blast using Sandvik Pantera and Atlas Copco DM drill rigs, and haulage utilizing 55t CAT and 45t Belaz trucks.

Ore is processed by conventional 2-stage crushing, SAG/Ball milling, and gold is leached and recovered from a carbon in pulp (CIP) circuit, ultimately producing gold doré. Lower grade ore is processed by heap leaching.

5.1.6 Key Operational Developments

Mining:  The Berezitovy pit is currently developed in three stages to optimise free cash flow generation. Stage 1 has reached a pit bottom of +500m asl and, while the stage 3 has reached the +750m asl. Stage 2 was completed in 2013, and will be incorporated into the stage 3 cutback; and  Drill and blast optimisation through implementation of improved drilling and blasting QA/QC practises including: . Improved blast analysis i.e. fragmentation, powder factor, D & B database; and . In 2016 H1, Ore loss/Dilution control through introduction of Blast Monitoring Technology i.e. blast monitoring markers (balls) to measure ore block displacement. Mobile Maintenance:  Condition based maintenance philosophy implemented for mobile equipment and selected fixed plant. PCR and overhaul schedule on site target extending overall equipment SMU of 70000 hours;  On-site presence of representatives from major equipment manufacturers established to increase respond time to breakdowns and improving parts/components supply and control;  On-site consignment stocks of consumables, parts and components implemented for major equipment; and  Completed project of implementation of utilizing Chinese manufactured engines for Belaz trucks reduced engine cost by 40% vs OEM components.

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Processing:  Plant throughput decreased by 6% in 2015 from 232 to 219 t/h; due to the increase of hard ore in the blend from old stock piles, and delays in the secondary crusher pre-screening project to improve the secondary crusher capacity and efficiency. Further performance improvements will be targeted in 2016 through new design of SAG mill discharge grates, reduce the feed size to the SAG mill by launching a project to change from open to closed circuit pebble crushing to closed circuit targeting a product size of 80% passing 30mm, as well as improved blast fragmentation;  Recovery decreased by 0.68% from 90.2% to 89.54% due to changing of mill feed blend resulting in a decrease in final grinding size by milling. Projects in 2016 include peroxide and lead nitrate trials targeting 91% recovery;  Cyanide consumption optimisation through installation of a TAC 1000 online analyser was completed, cyanide consumption decreased by 37%;  Design and construction of a new tailings storage facility to cater for increased LoM reserves will commence in H2 2016; and  Heap leach production is in line with operational plan. 3rd phase heap construction was completed and stacking will commence in Q2 2016.

General:  Business systems achieved USD3.5 million in 2015 with the target to reach USD2 million in 2016, through cost optimisations include the mining productivity, process optimisation, reagent consumption and overheads reduction; and  An underground scoping study was done by SRK in February 2015. Nordgold conducted an internal Pre-Feasibility study assessing the underground potential at Berezitovy mine in December 2015, targeting 107koz of gold in Ore Reserves. Development is planned for Q4 2016.

5.1.7 Recent Exploration

Kolbachi:  In 2015, exploration drilling was carried out at the Sergachinskaya license, Kolbachi area. Nine (9) trenches were excavated to find intersections with orebody. Additionally, 32 drillholes were drilled for a total 1,983 meters.  Berezitovy pit underground potential; 25 drillholes were drilled in 2015 according to the project of exploration for deep horizons of the Berezitovy pit (10,161.4 m total); and  Berezitovy southern extensions; 18 drillholes were drilled in 2015 at south flank of the open pit to test south strike of orebodies (total length (1872.6m).

Overall, 75 drillholes were drilled, for a total of 14,017m.

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Table 5.1 : Summary of Recent Berezitovy Drilling Campaigns Method Year Number of Drillholes Metres Number of Samples 2013 35 10,953 6,379 Core 2015 75 14,017 8,542

Figure 5.4: GP500 crusher feed screen upgrade

Figure 5.3: Berezitovy Pit March 2016 looking towards stage 3 cutback

5.1.8 Technical Reports References

 WAI 2014: Updated CPR Report on the Berezitovy Asset, Russian Federation, April 2013; and  SRK 2014: A Report for Resource Estimates and Grade Control Practises on the Berezitovy Gold Project Russia, February 2014.

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5.2 Neryungri

5.2.1 Location and Access

Neryungri is located in a remote area in the SW of the Yakutia (Saha) region of the Russian Federation. The deposits are located approximately 125km north east of the Baykal-Amur trunk line (BAM) railway station of Ikabya. Another Nordgold gold project, Gross is situated approximately 4km east of Neryungri. There is no permanent population in the area, the nearest settlements of Olekma, Khani and Ikabia being located approximately 80km south on the BAM trunk line. Access to this mining operation is possible via a new 4WD vehicular access road.

Figure 5.5: Location of Neryungri Gold Deposit, Sakha-Yakutia Republic, Russian Federation

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Figure 5.6: Detailed Location of Neryungri

5.2.2 Project Ownership and License Details

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 31/12/ Neryungri YaKU 01860 BR Neryungri 100 0.93 Valid 2020

5.2.3 Regional and Local Geology

The Neryungri deposit is situated in the south western corner of the Uguskiy Graben. This graben is filled with Lower Proterozoic sediments which discordantly overlie early Archean gneisses and crystalline schists, intruded by later Archean granites and later cretaceous gabbro and syenite. The principal tectonic features in the area consist of a set of N-S striking, steeply dipping faults, a NE–SW striking and steeply dipping shear zone and a shallow thrust of E-W strike, dipping to the south at 20-30°; gold mineralisation is believed to be directly related to the latter.

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The Neryungri deposit is hosted by a potassic metasomatite zone, developed in the sandstones, which strikes EW and dips to the south, parallel to the orientation of the thrust zone. Gold bearing mineralisation occurs in all altered rocks types, notably including the diabase dyke.

5.2.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven 2,737 0.74 65 Probable 29,927 0.73 703 Proven+Probable 32,663 0.73 769 RESOURCES Measured 2,765 0.89 79 Indicated 37,031 0.88 1,044 Measured+Indicated 39,796 0.88 1,123 Inferred 8,939 0.93 267 Total (Measured+Indicated+Inferred) 48,735 0.89 1,390

1 Mineral Resources constrained by pit shells at USD1,500/oz.

5.2.5 Operational Profile – Mine and Plant

Infrastructure Open pit mines, heap leach plant, power generation plant, associated workshops and administration buildings Mine Type Open Pit – Blast hole sampling, drill & blast, excavation & transportation operation of single pit Processing Type Crushing and heap leaching, and dump leach operations Start-up Trial mining commenced in 2001, with the trial heap leach being commissioned in November 2002

Mining operations currently consist of a single open pit located at Neryungri, and trial open pit mine located at Gross. The open pits are currently operated by a conventional truck and excavator mining method. Mining is based on 10m high benches for ore and waste, and both are excavated on 2.5m high lifts.

Ore is processed by conventional 2-stage crushing and stacking, or dump leaching. Gold is adsorbed from pregnant leach solution (PLS) in carbon in solution (CIS) columns, followed by desorption, electro-winning and smelting to produce gold doré.

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5.2.6 Key Operational Developments

Mining:  The Neryungri pit is currently developed in multiple stages to optimise NPV. The eastern stage has reached pit bottom of +965m asl, while the western stage reached pit bottom of +975m and southern stage will commence 2016;  Trench 7 permitting application is in progress; and  Exploration success of previous years led to an increase to 769koz in Ore Reserves. New southern and eastern cutbacks will commence in 2017; permitting application for the pit extensions are in progress.

Mobile Maintenance:  Condition based maintenance philosophy implementation for mobile equipment and selected fixed plant on-going;  On-site presence of representatives from major equipment manufacturers allows their fast respond to breakdowns and improving parts/components supply and control; and  Number of modification to existing maintenance facilities completed in 2015 allowing access to the larger equipment, and improving staff working condition and contamination control.

Processing:  Crushers utilisation and throughput remains similar YoY and ROM stacking of low grade ore continued;  Recovery improved from 82,0% to 83,4% due to improved irrigation volumes, solution management, higher adsorption/desorption efficiencies and recovery of gold from old pads and ponds. This was made possible in part by replacing six (6) old design absorption columns with four (4) new improved design columns with higher efficiency and capacity;  Reagent control improved resulting in a 6% decrease in cyanide consumption; and  Construction of additional leach pads commenced in 2015 (pads № 8 and 9).

5.2.7 Recent Exploration In 2015, near-mine drilling was carried out at west satellite and west and south flanks of open pit, as well as at the “Trench №7” zone and in the “Temniy” area. Infill drilling (up to 40m by 40m) was completed at the satellites and on the flanks of the Tabornoye open pit comprising 45 drillholes drilled for a total of 4,108m. Drilling with same spacing (40m by 40m) was done at “Trench №7” area totaling 27 drillholes drilled for a total of 2,915m. Seven diamond drill holes were drilled at “Temniy” to test deep horizons of mineralized zones (total 842m). The overall drilling volume for Neryungri was 79 drillholes totaling 7,865m.

Table 5.2 : Summary of Recent Neryungri Drilling Campaigns Method Year Number of Drillholes Metres Number of Samples 2014 21 1,886 1,786 Core 2015 79 7,865 7,865

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Figure 5.7: Neryungri Exploration Targets

Figure 5.8: Neryungri Pit Figure 5.9: Neryungri Heap Leach Facility

5.2.8 Technical Reports References

 WAI 2012: Neryungri and Gross Gold Projects, Russia, NI 43 101 Technical Report, September 2012; and  SRK 2013: A Competent Persons Report on the Gross- Neryungri Gold Project, Yakutia, Russian Federation, June 2013. 

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5.3 Aprelkovo

5.3.1 Location and Access

The Aprelkovo gold deposit is situated in the Shilkinskii district, near the towns of Shilka and Nerchinsk and lies approximately 120km east of the regional centre of Chita, and can be easily accessed via a paved highway. The Aprelkovo Mine includes Main Zone, Zone 10 located nearby to the Main Zone and Nerchinsk mineralisation which is situated 5km from Aprelkovo.

Figure 5.10: Location of Aprelkovo Gold Deposit, Chita Region, Russian Federation

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5.3.2 Project Ownership and License Details

Nordgold has 100% ownership of the Aprelkovo license (including Zone 10) which covers an area of 6.62km2 and of the Nerchinsk license which has an area of 34.6km2.

Figure 5.11: Detailed Location of Aprelkovo

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 31/12/ Above 150 m Aprelkovo ChIT 01545 BE Aprelkovo 100 6.62 Valid 2020 depth Exploration/ 25/02/ Below 150 m Aprelkovo ChIT 02190 BP Aprelkovo 100 6.62 Valid 2016 depth North Gold Mining/ 01/07/ Nerchinsk ChIT 01944 BR Mining 100 34.6 Valid 2033 Company North Gold Mining/ 01/07/ Kunikan ChIT 01945 BR 100 31.26 Mining Valid 2033

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Company 5.3.3 Regional and Local Geology

The Aprelkovo deposit is located within an east-west striking thrust that belongs to the Mongol-Okhotsk Regional Fault System. The area comprises metamorphic and volcano-metamorphic sequences, together with intrusive rocks. Mineralisation is of metasomatic type and comprises quartz-albite-sericite (beresite). The metasomatites contain veinlets of quartz-albite, sericite, tourmaline, quartz-sulphide and carbonate, as well as disseminated sulphide mineralisation together with contained gold.

The Nerchinsk deposit mineralisation is associated with zones of tectonic brecciation, hydrothermally and metasomatically altered rock, and includes gold, antimony, arsenic, tungsten and mercury. Metallurgical testwork indicates preferable hydrometallurgical processing of Nerchinsk ore, and can therefore be treated at the Aprelkovo mine heap leach.

5.3.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven 1,168 0.63 24 Probable 908 0.86 25 Proven+Probable 2,076 0.73 49 RESOURCES Measured 551 1.50 27 Measured Stockpiles 1,168 0.63 24 Indicated 6,007 0.98 190 Measured+Indicated 7,727 0.96 240 Inferred 2,015 0.97 63 Total (Measured+Indicated+Inferred) 9,742 0.97 303 1 Mineral Resources constrained by pit shells at USD1,500/oz.

5.3.5 Operational Profile – Mine and Plant

Infrastructure Mine and Heap leach operation with Elution Plant Mine Type 4.0Mtpa open pit operation Processing Type 1.7Mtpa Heap leach operation Start-up 2008

The Aprelkovo open pit is currently operated by a conventional truck and shovel mining method. Ore is processed by heap leach. The current pit bottom (+510m asl) has reached the primary sulphide ores with the pit boundaries being developed to the west.

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5.3.6 Key Operational Developments

Mining:  Pit design documentation is completed and is pending the State approval to allow mining of the pit below +500m; and

Mobile Maintenance:  Condition based maintenance philosophy roll-out continue;  On-site presence of representatives from major equipment manufacturers established; In- house capability to overhaul major components (engines, final drives, diffs) improve cost and components availability; and  Tyre management program on-going and yielding positive results.

Processing:  The project to increase leach pad capacity, which involved the relocation of the two crushing complexes was completed on schedule and budget in H1 2015;  The project to improve the crushing complex throughput and to increase the % -5mm in crushed product at Crusher 1 by installing a double deck screen and circuit reconfiguration to improve the distribution of the load appropriately between second and third stage crushers was completed. As a result, throughput increased by 20% and the -5mm size was increased from 40% to 60%;  Two new heap leach pads were constructed (22 and 21) and stacking commenced; and  Industrial scale testing of leach-aids to improve overall gold extraction has commenced in Q1 2016.

General:  BSN programmes achieved USD4.4 million in 2015 with the target to reach USD0.5 million in 2016 through cost optimisations include the mining productivity and overheads reduction;  Productivity improvement through implementation of overall efficiency project (better balancing of mining fleet, standardization of fuelling and greasing procedures); and  Optimization of drill & blast costs; by the introduction of blast movement techniques, and fragmentation analysis.

5.3.7 Recent Exploration

During 2015, exploration in the central part of the open pit was carried out to follow the orebody below +500m level. As for the south flank of the open pit and Zone 10, the purpose was to update the shapes of the east flank and the main ore body. For the central part of the open pit, 15 drillholes were drilled for 945m. At Zone 10 area 15 drillholes were drilled totalling 989.9m. Twelve drillholes comprising 869m were drilled at the south and south-west flanks. Drilling at Aprelkovo in 2016 was 42 diamond drillholes totalling 2803.9m.

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Table 5.3 : Summary of Recent Aprelkovo Drilling Campaigns Method Year Number of Drillholes Metres Number of Samples 2014 29 2,095 2,214 Core 2015 42 2,798 2,875

Figure 5.12: ROC Blast hole Rig Figure 5.13: Aprelkovo pit Feb 2015

5.3.8 Technical Reports References

 WAI 2015: Mineral Resource Estimate of the Aprelkovo Project, Russian Federation, December 2014.  WAI 2013: Update CPR Report on the Aprelkovo Assets, Russian Federation, April 2013.  WAI 2013: Updated CPR Report for Nercha Asset, Russian Federation, WAI March 2013.  Geognost LLC 2013: Report on Exploration Results and Reserves Estimation of Gold and Other Components on Nerchinsk Prospective Areas TEO of Temporary Approved Reserved Cut-off Grades with the Reserves Estimation on Yuzhniy and Perevozniy areas as on 01.12.2013.

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5.4 Zun-Holba

5.4.1 Location and Access

The Zun-Holba gold deposit is situated in the western portion of the Republic of Buryatia in the Okinskiy district, which borders the Irkutsk Region to the north and west, and Mongolia to the south.

The Zun-Holba gold mine is situated 736km west of the Buryatian Republic capital city of Ulan-Ude, 150km from the village of Orlik, which is the district centre and 100km from the village of Mondy; the latter is 203km via a paved road to the village of Kultuk, at the southern end of Lake Baikal, the nearest station on the Trans-Siberian railway line with a transfer yard for Irokinda flotation concentrate and other supplies.

Figure 5.14: Location of Zun-Holba Gold Deposit, Republic of Buryatia, Russian Federation

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Figure 5.15: Detailed Location of Zun-Holba

5.4.2 Project Ownership and License Details

Nordgold has 90.6% stake in OJSC “Buryatzoloto”.

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 11/01/ Zun-Holba UDE 00213 BE Buryatzoloto 100 3.66 Valid 2019 Mining/ 31/12/ Zun-Holba UDE 00231 BR Buryatzoloto 100 3.1 Pionerskiy Site Valid 2019 15 km Mining/ 29/06/ Zun-Holba UDE 00419 BR Buryatzoloto 100 67 Perspective Valid 2024 Zone Mining/ 01/03/ Zun-Holba UDE 01367 BR Buryatzoloto 100 9.53 Smezhniy Site Valid 2031 Mining/ 01/03/ Zun-Holba UDE 01368 BR Buryatzoloto 100 41.001 Yuzhniy Site Valid 2031

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5.4.3 Regional and Local Geology

The Zun-Holba deposit is located in a Caledonide system in the north eastern peripheral part of the Garganskaya dome which comprises the core of the approximately east-west striking Gargan-Butugolskiy anticlinorium, and is included in the Holbinskoye mineralised area (Garganskiy gold district). The Holbiskaya fault zone in the Zun-Holba deposit limits led to formation of three northwest trending sub-parallel shear zones viz. Perspectivnaya, Yuzhnaya and Smezhnaya, the dominant structural features which host the gold mineralisation at the mine.Twenty-four sub-vertical mineralised zones have been discovered within the Perspectivnaya shear zone and include almost all of the mineral “reserves” of the Zun-Holba deposit. The mineralised zones, located on the north eastern limb of the anticline, are hosted by the hydrothermally altered rocks of the Ilchirskaya package at the contact with the Irkutnaya suite limestone.

At Zun-Holba, most significant mineralised zones contributing to the Ore Reserves are: Severnoe-3 (48%); Dalnee (16%); Sulphidnoe-1 (9%); Severnoe-2 (8%), the rest of the reserves, 19 % are concentrated in 9 ore bodies (Severnoe-1, Severnoe-5, Babkina, Listvenitivoe, Dorozhnoe-2, Dorozhnoe-3, Sulphidnoe-2, Vavilovskoe-1, Vavilovskoe-3 and two small deposits Pionerskoe and Pravoberezhnoe.

5.4.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES (Zun-Holba)

Proven 445 4.96 71 Probable 642 5.10 105 Proven+Probable 1,087 5.04 176 RESOURCES (Zun-Holba) Measured 488 7.29 114 Indicated 925 12.48 351 Measured+Indicated 1,414 10.24 465 Inferred 119 17.68 68 Total (Measured+Indicated+Inferred) 1,533 10.82 533

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5.4.5 Operational Profile – Mine and Plant

Infrastructure Power is provided by an 86km long, double-line 110kV power line from Mondy to Samarta; two transformer substations distribute the power around the site and an emergency electrical supply is provided by eleven power generators with a total capacity of 8,360kWs. Associated workshops and administration buildings. Mine Type Underground mine employs three mining methods: • Cut-and-fill (64% of total mined material); • Shrinkage with bolting and plastic mesh reinforcement (22%) and; • Shrinkage with timber settings (14%). Processing Type The plant utilises the standard processes of crushing, grinding, gravity processing, flotation and carbon in pulp leaching (CIP) of the flotation concentrate. Start-up Mining operation started in 1986. The Buryatzoloto state gold mining company was founded in January 1991.

5.4.6 Key Operational Developments

Mining:  Currently mining Adits №7bis, №14. Adit №5 planned to be refurbished for further exploration activities and mining. Main mining activities are carried out on shaft levels 1,290m, 1,340m, 1,390m, Severnoe 3, Vavilovskoe and Sulfidnoe 1 and 2 ore bodies;  Conventional mining practise are employed in Adits and Shaft levels, whilst mechanised mining practises are being employed for development of the Decline for opening of new sites; Dal'nyaya zone, the ore bodies of Kontaktovoe, Kvartsevoe, Severnoe-3 and Deep levels Mineral Resources (below 1,290m). The level of mechanised mining will grow with the development of the Decline and opening of Ore Reserves in the mentioned ore zones;  In 2015 main production from Kontaktovoe and Kvartsevoe ore bodies, from Shaft levels 1,290m and 1,340m and also from adits №7bis, №5bis and №14;  In 2016 and 2017 production from ore bodies Kontaktovoe and Kvartsevoe will increase to an amount up to 14koz; and  In 2018 and 2019 plan to start production from ore bodies Severnoe-3 and Deep levels will amount up to 63koz. After the 2019 opening, preparation and production of ore will be carried out at Deep levels below 990m.

Mobile Maintenance:  Maintenance of Sandvik equipment working on Decline is outsourced to Sandvik and spare parts consignment stock in placed; and  An enclosed maintenance facility has been commissioned in 2015 and equipped with required hand and special tools.

Processing:  Utilisation decreased by 4% due to a reduction in ore supply from mining;

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 Recovery decreased by 1.1 to 90.6% due to the head grade dropping by 18%, recovery

improvements at lower head grade involve increasing P80 of flotation feed from 94% to 95% passing 75 micron and testing new flotation reagents;  Recovery of gold from wooden chips commenced in 2015 with 59kg being recovered for the year and continues in 2016;  Design and permitting of a new flotation tailings storage facility with sufficient capacity for current LoM was launched in Q1 2016.

General:  Business systems achieved USD3.9 million in 2015 with the target to reach USD2.3 million in 2016 through cost optimisations include: . The mining productivity and debottlenecking of the crusher; and . Reduction of key consumption rates in mining with focus of fuel and tires consumption.

5.4.7 Recent Exploration

In 2015, exploration drilling as part of underground development on the flanks of the deposit was undertaken, and will be continued in 2016 (northwest flank - including ore bodies Dorozhnoe-4, Severnoe- 3, 5 and Dal'nyaya zone, southeast flank - include ore body Babkina). In the central part of the deposit exploration of ore bodies Severnoe-1, 2 and 3, Vavilovskoe-3 will be carried out below the 1,290m level.

Table 5.4 : Summary of Recent Zun-Holba Drilling Campaigns Method Year Number of Drillholes Metres Number of Samples 2014 128 37,552 13,184 Core 2015 102 27,117 10,544

Figure 5.16: New Truck for Deeps Decline Figure 5.17: Zun-Holba Summer Absorption columns

5.4.8 Technical Reports References

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 WAI 2011: Updated CPR Report on the Assets of Nordgold for Burkina Faso, Guinea, Kazakhstan and the Russian Federation, August 2011; and  Micon 2013: NI 43-101 Technical Report and Audit of the Resource and Reserves Estimates for the Zun-Holba Gold Mine Republic of Buryatia (Buryatia), Russian Federation, February 2013.

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5.5 Irokinda

5.5.1 Location and Access

The Irokinda gold mine is located in the far northern portion of the Republic of Buryatia in the Muiskay district. The mine is situated 700km northeast of the Buryatian republic capital city of Ulan-Ude, which hosts an international airport with numerous regional flights to other major Russian cities, as well as international destinations, and 74km from the village of Taximo which is the nearest railhead.

The Irokinda mine is readily accessible from the railway station at Taximo on the Baikalo-Amurskaya (BAM) railway, via a 70km all-weather gravel road, which takes approximately 2 hours by 4WD vehicle. This road crosses a high mountain pass which is prone to poor weather during the winter months, but is rarely closed, a result of regular inspections and snow clearance.

Figure 5.18: Location of Irokinda Gold Deposit, Republic of Buryatia, Russian Federation

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Figure 5.19: Detailed Location of Irokinda

5.5.2 Project Ownership and License Details

Nordgold has 90.6% stake in OJSC “Buryatzoloto”.

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 31/12/ Irokinda UDE 00212 BR Buryatzoloto 100 227 Valid 2021 Mining/ 20/02/ Irokinda UDE 01434 BR Buryatzoloto 100 41.8 Severny Site Valid 2037

5.5.3 Regional and Local Geology

The main structural unit in the region is the Uzhno-Muiskaya formation, one of the blocks of the Archean basement, which is constrained on its western and eastern sides by contacts with the Kelyansakaya and Tuldunskaya mobile zones, respectively, and on the northern and southern boundaries by the Muisky and Tilishminsky faults, respectively.

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In total approximately 140 quartz veins have been identified at the Irokinda deposit, of which some 30 veins contain “reserves”, with average gold grades in the different veins between 10.0g/t and 36.5g/t Au.

Deposits consist primarily of quartz with less than 3% content of other minerals, comprising a low sulphidation assemblage: the most abundant minerals are pyrite and galena, with rare chalcopyrite and fahlore, plus accessory pyrrhotite, arsenopyrite and scheelite. Epigenetic minerals include iron hydroxides, malachite, azurite, jarosite and others.

5.5.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES (Irokinda)

Proven 508 8.08 132 Probable 1,079 5.09 177 Proven+Probable 1,587 6.05 309 RESOURCES (Irokinda) Measured 357 13.62 156 Measured Stockpiles 18 3.33 2 Indicated 581 8.91 166 Measured+Indicated 955 10.57 325 Inferred 604 7.47 145 Total (Measured+Indicated+Inferred) 1,560 9.37 470

5.5.5 Operational Profile – Mine and Plant

Infrastructure Electric power for the Irokinda mine and settlement is supplied from a 220/110/35kV substation, located in Taximo and transmitted via a single 70km, 110kV power line. Mine Type Multiple, shallow underground mines accessed through adits. Processing Type Crushing, milling and gold recovery by gravity and flotation circuits. The gravity concentrate is smelted on site whilst the flotation concentrate is shipped to Zun- Holba for processing in the CIP plant. Start-up Mining commenced in 1974. The Buryatzoloto state gold mining company was founded in January 1991.

5.5.6 Key Operational Developments

Mining:  In 2015 mining production was from vein Visokaya, vein №3 and vein Serebryakovskaya  As of January 2016, mining operations are planned on the following main veins: №3, Vysokaya and Serebryakovskaya, vein Petrovskaya to start in H2 2016; these make up 90% of ore production while remaining 10% of is estimated to come from veins №9, №35а, №35, №52 and №30; and

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 In 2017 and 2018 mining of the veins of Sluchaynaya and Medvezh'ya shall commence. In 2016 development works are carried out on these veins to access ore bodies.

Mobile maintenance:  Equipment maintenance is done by mine staff under guidance of representatives from equipment manufacturers; SLA’s (Service Level Agreements) are in place. Selected consignment stocks of parts and consumables are placed; and  There is number of ongoing projects focused on developing of maintenance infrastructure (enclosed facilities, and tools).

Processing:  Utilisation remains high at 95%, throughput increased by 4% through improved maintenance scheduling and operating practises. Further availability and throughput improvements are expected in 2016 with the increasing of surge capacity ahead of milling;  Recovery remains similar at 94%; further improvements are expected in H1 2016 due to modernisation of gravity stream by the addition of an ICON i350 centrifugal concentrator; and  A cost engineering study and long lead items procurement will be launched in Q2 2016 ; aimed at increasing throughput from 350kt to 380kt whilst maintaining current recoveries.

General:  Business systems achieved USD2.3 million in 2015 with the target to reach USD1.9 million in 2016 through cost optimisations, productivity improvement in the mine and headcount reductions;  Reduced OPEX spend by optimizing ventilation, dewatering costs at mine, in-mine ore transportation, labour and dilution management;  Opening of new Mineral Resources at the ore zones will be made in view of mechanized capital development and ore transport;  Created a geotechnical section in the mining department; to carry out special geotechnical work aimed at improving safety and productivity; and  Dilution management; and timely development of mechanised Declines to access future Ore Reserves.

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5.5.7 Recent Exploration

Table 5.5 : Summary of Recent Irokinda Drilling Campaigns Method Year Number of Drillholes Metres Number of Samples 2014 93 28,132 1,771 Core 2015 62 25,075 1,046

Figure 5.20: Irokinda Equipment Hotbox for Figure 5.21: Irokinda flotation cell upgrade improved winter availability

5.5.8 Technical Reports References

 WAI 2011: Updated CPR Report on the Assets of Nord Gold for Burkina Faso, Guinea, Kazakhstan and the Russian Federation, August 2011; and  Micon 2013: NI 43-101 Technical Report and Audit of the Resource and Reserves Estimates for the Irokinda Gold Mine Republic of Buryatia (Buryatia), Russian Federation, February 2013.

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6 OPERATING MINES – KAZAKHSTAN

6.1 Suzdal

6.1.1 Location and Access

The Suzdal gold mine is located 55km southwest of Semipalatinsk in northern Kazakhstan. Access to the Suzdal site is from Semipalatinsk, with the first 32km on asphalt road, followed by 23km on a reasonably well graded dirt road to the south. Total driving time from Semipalatinsk is approximately 60 minutes.

Figure 6.1: Location of Suzdal in the North-eastern Kazakhstan

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Figure 6.2: Detailed Location of Suzdal and Zherek

6.1.2 Project Ownership and License Details

Nordgold holds 100% ownership of the Suzdal license which covers an area of 5.9km2. Nordgold has the right to extend the validity terms agreement.

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Kazakhstan Contract №47a Celtic 13/03/ Suzdal (License MG Resources 100 Mining 5.9 2017 №35a) (Central Asia)

6.1.3 Regional and Local Geology

Suzdal comprises typical shear-hosted mesothermal gold mineralisation distributed within a late Palaeozoic turbidite sequence, along northeast trending shear zones, which contain four distinct mineralized orebodies; the most common minerals are pyrite, arsenopyrite and pyrrhotite rendering a significant

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proportion of the gold refractory. Individual veins have strike lengths ranging from 100-600m with thicknesses ranging from 1-30m.

6.1.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES 4

Proven 1,951 6.08 381 Probable 2,024 5.87 382 Proven+Probable 3,975 5.97 763 RESOURCES5 Measured 1,221 5.38 211 Measured Stockpiles 47 7.42 11 Measured Tailings Treatment 663 7.17 153 Indicated 3,099 5.02 500 Measured+Indicated 5,031 5.41 875 Inferred 1,705 4.20 230 Total (Measured+Indicated+Inferred) 6,736 5.11 1,106

6.1.5 Operational Profile – Mine and Plant

Infrastructure Power comes from 2 x 6kV power lines, with potable water from an underground aquifer pumped from bores 1.3km to the north of the deposit. Underground mines, waste dumps, plant, offices, maintenance buildings, accommodation and canteen. Mine Type Originally open pit mine, currently underground mine using sub-level open stoping methods. Processing Type Processing plant with crushing, grinding, flotation, BIOX, CCD and CIL circuits. Start-up Mining commenced in 1985.

6.1.6 Key Operational Developments

Mining:  In 2015 ore production was carried from Ore bodies 1-3 and 2. 6 000t of ore was mined from Ore body 4 during Decline development;  Over the next five (5) years, the main ore production volumes will come from Ore bodies No 1- 3 and 2. Ore Reserves extensions at Ore bodies No 1-3 and 2 are expected on the deeper levels

4 In-situ Reserves at cut-off grade 3.1 g/t. Stockpiles and Tailings Reserves at cut-off grade 2.0 g/t. 5 In-situ and Stockpiles Resources at cut-off grade 1.5 g/t, Tailings - at 2.0 g/t.

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below -200m towards Ore body No 4. The main development of mining operations for Ore bodies 1-3 and 2 will be directed along the Gornostayevskoye thrust to the level -500m;  In 2014, drainage of the historical open pit No 4 was completed, allowing underground access to Ore body No 4 down to level +220m;  Successful 2015 and 2016 geological exploration, will lead to mine development below the horizon + 220m;  In 2016 ore production to be carried from Ore bodies 1-3, 2 from -200 m and below levels and Ore body 4; and  In 2017 and 2018 ore mining from Ore bodies 1-3 and 2 from levels -240 m, Ore body 4 from level +160m.

Mobile Maintenance:

 Equipment maintenance is done by own staff and SLA’s are in place with major equipment manufacturers (Atlas, and Caterpillar) starting from Q2 2016.  Oil contamination control is the main focus in 2016; and  Developing approach of placing consignment stocks on site, while meeting KZ regulations.

Processing:  Utilisation remain high at 95%, further improvement in maintenance scheduling and practises will be targeted in 2016;  Two additional BIOX reactors was launched to process high sulphide concentrate from ore body 4;  An anti-scalant dosing system was launching for heat exchangers and cooling towers;  Recovery increased by 1.8% to 66.3% due to flotation circuit upgrade and CIL carbon management improvement, lower recoveries are expected in 2016 with introduction of increased amount of lower recovery Ore body 4 into the feed;  Construction of the Hot Leach project aimed at reducing gold losses due to preg-robbing is on schedule for commissioning in Q2 2016; and  Construction of a new flotation tailings storage facility with sufficient capacity for the 2015 LoM was completed in H2 2015 as planned. Construction of a new CIL tailings facility will commence in H2 2106.

General:  Business systems achieved USD1.8 million in 2015 with the target to reach USD2.1 million in 2016 through cost optimisations, productivity improvement in the mine and headcount reduction; and  Created a geotechnical function in the mining department to carry out special geotechnical work aimed at improving safety and productivity.

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6.1.7 Recent Exploration

Exploration was concentrated at north-west and south-east flanks of Ore bodies 1-3. Eight diamond drillholes were drilled from surface totalling 5,000m. Forty-nine diamond drillholes were drilled from underground comprising 11,500m. Underground development totalling 459.6m for exploration was also completed at level -150m. Overall drilling volumes totalled 57 diamond drillholes drilled for 16,500m.

Table 6.1 : Summary of Recent Suzdal Drilling Campaigns Method Year Number of Drillholes Metres Number of Samples 2014 808 62,973 48,096 Core 2015 1165 16,500 64,185

Figure 6.3: Suzdal Hot Leach regrind mill installation

Figure 6.4: Suzdal Hot Leach plant construction

6.1.8 Technical Reports References

 WAI 2012: The Suzdal Gold Project, Kazakhstan, NI 43-101 Technical Report, September 2011; and  Micon 2013: Technical Report for the Resources and Reserves at the Suzdal Project, republic of Kazakhstan, March 2013.

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7 DEVELOPMENT PROJECTS – BURKINA FASO

7.1 Bouly

7.1.1 Location and Access

The Bouly Project is located approximately 85km north of Ouagadougou, the capital city of Burkina Faso and is accessible in about 1½ hours via Route Nationale 22, a sealed road connecting Kongoussi to Ouagadougou. The Bouly Project is only 10km east of Nordgold’s Bissa Mine.

Figure 7.1 Location of Bouly Project

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Figure 7.2: General View of Bouly Project and Relationship to Bissa

7.1.2 Project Ownership and License Details

Nordgold (through Bissa Gold SA) owns 90% of Project with remaining 10% owned by the state of Burkina Faso. Project is located within the Bissa gold Mine permit (former Namtenga permit).

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Burkina Faso 2014- Bissa- Mining/ 23/06/ Renewable for 5 778/PRES/PM/ Bissa Gold SA N/A 171.25 Zandkom Valid 2031 years MME

7.1.3 Regional and Local Geology

The Bouly deposit is a large (approximately 3km long and 400m wide), low-grade deposit with many similarities to porphyry-style gold-copper deposits. Hosted in intermediate intrusive rocks, mineralization is mainly associated with weakly disseminated pyrite and chalcopyrite.

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7.1.4 Current Mineral Resources and Ore Reserves

Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven - - - Probable 73,831 0.56 1,318 Proven+Probable 73,831 0.56 1,318 RESOURCES

Measured - - - Indicated 107,453 0.53 1,842 Measured+Indicated 107,453 0.53 1,842 Inferred 82,189 0.62 1,645 Total (Measured+Indicated+Inferred) 189,642 0.57 3,487

7.1.5 Planned Operational Profile – Mine and Plant

Infrastructure Bissa infrastructure to support Bouly. Mine Type Open Pit - drill and blast operation. Processing Type Heap Leach. Start-up 2016

7.1.6 Key Project Developments

 The project has been drilled out through various drilling campaigns, commencing in 2004, with the latest being: . 2013 – Intense exploration program aimed at upgrading deposit to a commercially viable project; and . 2014 – A 38,000m exploration and in-fill drilling program completed allowing upgrade of oxide Inferred Resources to Indicated Resources category.  In Q1 2014, a metallurgical test program, including column test work, were completed with very positive results suggesting gold recoveries in range of 80-93% from oxide and transitional ore;  Life of Mine (Phase I) is 8 years, with annual production of 125kozs (1st 3 years), estimated CAPEX of USD150M. Planned processing capacity 7.5Mtpa with a conservative metallurgical recovery of 83% for oxide and upper transitional ore and a mining strip ratio of 0.7t/t;  Feasibility study was completed in Q2 2015 and Board approval for construction received in February 2015;  Lycopodium was awarded the contract to be the lead consultant for Feasibility Study and responsible for metallurgy/processing, engineering and overall study report;  SRK was responsible for the Mineral Resources and mining part of the Feasibility Study; the Mineral Resources and Ore Reserves are listed in the Tables 8.1 and 8.2;

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 Knight Piésold is responsible for design of the heap leach pads;  Environmental and social study was conducted locally, permit approval in progress;  Detail engineering was awarded to Lycopoduim;  Earthworks commenced Q4 2015 and mechanical construction in Q1 2016;  Grade control, pre-stripping and first ore to ROM was completed in April 2016;  Commissioning of crushers, agglomeration and staking line scheduled for Q2 2016; and  First ore to pad scheduled for May 2016 and first gold in July 2016.

Figure 7.4: Bouly Crusher construction Figure 7.3: View of Bouly Starter Pit

7.1.7 Technical Reports References

 SRK Consulting 2015: Technical Report on Resources and Reserves Bouly Deposits Sanmatenga, Burkina Faso.

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8 DEVELOPMENT PROJECTS - RUSSIA

8.1 Gross

8.1.1 Location and Access

The Gross project is located in south-western Yakutia, some 125km northeast of the Ikabya station on the BAM railway and 4km to the east of Neryungri. The Gross deposit is located only 4km from Nordgold’s existing Neryungri mine (Neryungri) in Russia, thereby enabling the Company to benefit from existing infrastructure and synergies of shared resources.

Figure 8.1: Location of Neryungri and Gross Gold Deposits, Sakha-Yakutia Republic, Russian Federation

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8.1.2 Project Ownership and License Details

Nordgold announced on 20 June 2013 that it was awarded a gold and silver mining licence for the Gross Deposit, representing one of the few grass roots exploration projects progressing through into development within Russia.

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 10/06/ Gross YaKU 03559 BE Neryungri 90.6 14 Valid 2033

8.1.3 Regional and Local Geology

The Gross deposit is hosted within shallowly dipping lower Proterozoic sandstones lying unconformably over Archaean gneisses and schists. The sandstones have been subjected to broad scale metasomatism with associated potassic alteration. Gold and silver mineralisation is associated with this metasomatism. The principal tectonic features in the area consist of a set of N-S striking, steeply dipping faults, a NE – SW striking and steeply dipping shear zone and a shallow thrust of E-W strike, dipping to the south at 20-30°.

The Gross deposit consists of low grade disseminated gold and silver mineralisation associated with the metasomatically altered sandstone sequences. The mineralised sequence is typically between 20m to 200m thick striking approximately east-west and dipping at a shallow 30° to the south. Mineralisation remains open along strike and down dip.

8.1.4 Current Mineral Resources and Ore Reserves

Gross Gold Ore Reserves and Mineral Resources in Accordance with the JORC Code (2012) 1

Category Ore (kt) Grade (g/t) Au (koz) RESERVES

Proven 7,794 0.74 185 Probable 181,318 0.73 4,256 Proven+Probable 189,112 0.73 4,441 RESOURCES

Measured 9,753 0.71 222 Indicated 343,448 0.67 7,449 Measured+Indicated 353,201 0.68 7,671 Inferred 44,591 0.61 877 Total (Measured+Indicated+Inferred) 397,792 0.67 8,548 1 Mineral Resources constrained by pit shells at USD1,600/oz.

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Gross Silver Mineral Resources in Accordance with the JORC Code (2012)*

Category Ore (Mt) Grade (g/t Au) Silver (Moz) RESERVES

Proven 8.4 2.21 0.6 Probable 297.3 2.39 22.8 Proven+Probable 305.7 2.38 23.4 RESOURCES

Measured 10 2.42 1 Indicated 343 3.15 33 Measured+Indicated 353 3.11 34 Inferred 45 2.96 4

* Ore Reserves constrained by pit shell for Au at USD1200/oz. Mineral Resources Constrained by a pit shell for Au at USD1,500/oz

8.1.5 Level of Study, Proposed Mining and Processing Methodology

Gross is an advanced development project and a Feasibility Study was completed in February 2014. The pilot stage operation has included mining and processing of 1.8Mt ore; 29koz of gold produced at the heap leach facility of the satellite Neryungri gold mine in 2014.

Table 8.1: Summary of Recent Neryungri-Gross Drilling Campaigns Method Year Metres 2013 22,925 Core 2014 1,886

Table 8.2: Gross Project Parameters Infrastructure 5km from Neryungri operating mine, access by all-season road. - power and heat supply Coal power plant, 16MWt, coal consumption 140kt per year Mine Type Classical single open pit mine. - average throughput 12.0Mtpa - average stripping ratio 3.25t/t Processing Type Heap leach processing technology for low grade ore. - ore crushing Two stage crushing to -165mm and -40mm, 2000tph - ore transportation 5km conveyors from crusher to leach pad and to ore dump - leaching process Steam heated cyanide solution, absorption to activated carbon - recovery 82.50% - average annual 230koz production Start-up 2018 Life of mine 17 years

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8.1.6 Technical Reports References

. WAI 2012: Neryungri and Gross Gold Projects, Russia, NI 43 101 Technical Report, September 2012; . SRK 2013: A Competent Persons Report on the Gross-Neryungri Gold Project, Yakutia, Russian Federation, June 2013; and . Hatch 2014: Neryungri Metallic, Gross Mine deposit development project, Ref H343184-0000- 90-124-0001, Version 0.

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8.2 Uryakh

8.2.1 Location and Access

The Uryakh gold exploration project is situated in the extreme south-eastern part of Bodaybinskiy district of Irkutsk region on the border with the Republic of Buryatiya and Transbaikal region of the Russian Federation. The project lies approximately 150km north of the main Baikal-Amurskaya (BAM) railway.

The nearest populated areas are Nelyaty village and Muya village located at distance of 60 and 70km respectively (direct distance). The Project is 180km from the city of Bodaibo, where Sukhoi Log is located. The deposit is located approximately 5km to the south the navigable River Vitim.

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Figure 8.2: Location of the Uryakh project

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Figure 8.3: Detailed Location of the Uryakh project

8.2.2 Project Ownership and License Details

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia North Gold Mining/ 20/11/ Uryakh IRK 02473 BR Mining 100 52.17 Valid 2032 Company

8.2.3 Regional and Local Geology

The area is located on the regional Syulbanskiy fault zone which is at the junction of mixed age sedimentary-metamorphic and volcanogenic formations where significant gold occurrences have been identified.

The igneous rocks in the regional Syulbanskiy fault zone exhibit sheared and mylonitised textures. Contact between igneous and host rocks are sharp and distinctively sheared. Dyke-like bodies of igneous rocks are beresitised, fissured and host gold-bearing quartz ladder veinlets.

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Mineralisation is concentrated in a series of sub-parallel high grade quartz vein systems, gold-bearing stockworks as well as other types of mineralisation.

8.2.4 Mineral Resources

Category Ore (kt) Grade (g/t) Au (koz) RESOURCES Measured - - - Indicated Open Pit 3,058 4,07 400 Indicated Underground 8,712 3.71 1,039 Measured+Indicated 11,770 3.80 1,439 Inferred Open Pit 304 2.13 21 Inferred Underground 2,483 3.86 308 Total (Measured+Indicated+Inferred) 14,557 3.78 1,768

8.2.5 Level of Study, Proposed Mining and Processing Methodology

Uryakh is at an advanced exploration stage. The 2008-2014 exploration comprised air and ground based geophysical surveys, geochemical prospecting, drilling, trenching and geological mapping. Positive metallurgical results were obtained from preliminary and limited testwork data (2013). All data are being re-examined during 2016 to produce recommendations for the next phase of work at Uryakh.

Table 8.3: Summary of Recent Uryakh Drilling Campaigns Method Year Metres Core 2013 25,956

Table 8.4: Uryakh Project Parameters Infrastructure Will require construction of all season road. Mine Type Underground and/or Open Pit possible. Processing Type Potential Gravity plus CIL. Scoping Study 2017 Feasibility Study 2019 to take approximately 2 years Start of construction Possibly 2021

8.2.6 Technical Reports References

. WAI, 2013: Updated CPR Report on the Uryakh Asset, Russian Federation, April 2013; and . SRK, 2015: Resource Audit and Mining Review Report Uryakh Project Irkutsk Region, Russia, March 2015

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9 EXPLORATION PROJECTS – BURKINA FASO

9.1 Bissa Regional Exploration Projects

9.1.1 Location and Access

Bissa regional exploration projects include Zinigma and Bissa Sud gold projects. Zinigma is located about 40km north-west from Bissa mine. Zinigma can be easily accessed via Route Nationale 22, a sealed road, connecting Kongoussi to Ouagadougou, and then by dirt road. Bissa Sud is located within 10km from Bissa operating mine. The detailed location of Bissa and Taparko satellite projects are shown below.

Figure 9.1: Bissa and Taparko Satellite Project Locations

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9.1.2 Project Ownership and Licence Details

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Burkina Faso A Mining license application has been submitted Societe Nord Mining/ for the Zinigma Zinigma N/A N/A Gold Zinigma Pending project (inside former Yargo exploration license) A Mining license application has been submitted for the Ronguen Societe Nord Mining/ Ronguen N/A N/A project (inside Gold Ronguen Pending former Tikare & Kongoussi 1 exploration licenses) High River 2015- 3rd renewal has Gold Mines Exploration/ 22/08/ Yimiougou 170/MME/SG/ N/A 117.4 been received (West Africa) Valid 2017 DGMG 12/06/2015 Ltd 2015- 2nd renewal has Jilbey Burkina Exploration/ 03/07/ Bissa Sud 160/MME/SG/ N/A 3.59 been received Sarl Valid 2017 DGCM 05/06/2015 2015- 2nd renewal has Jilbey Burkina Exploration/ 09/12/ Zandkom II 407/MME/SG/ N/A 29.29 been received Sarl Valid 2018 DGCM 31/12/2015 2015- 3rd renewal has Jilbey Burkina Exploration/ 04/10/ Noungou 408/MME/SG/ N/A 136.7 been received Sarl Valid 2017 DGCM 31/12/2015

9.1.3 Regional and Local Geology

Refer Figure 3.1: Burkina Faso Regional Geologic Map (Page24).

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9.1.4 Current Mineral Resources and Ore Reserves Table 9.1: Lagongo Mineral Resources in Accordance with the JORC Code (2012), December 2014

Category Ore (kt) Grade (g/t)* Au (koz) RESOURCES

Measured Indicated 2,698 1.18 102 Measured+Indicated 2,698 1.18 102 Inferred 182 1.37 8 *At Au COG 0.5g/t

Table 9.2: Zinigma Mineral Resources in Accordance with the JORC Code (2012), December 2014

Category Ore (kt) Grade (g/t)* Au (koz) RESOURCES

Measured Indicated Measured+Indicated Inferred 3,463 1.51 168 *At Au COG 0.5g/t

Table 9.3: Bissa Sud Mineral Resources in Accordance with the JORC Code (2012), December 2014

Category Ore (kt) Grade (g/t)* Au (koz) RESOURCES

Measured Indicated Measured+Indicated Inferred 568 0.94 17 *At Au COG 0.5g/t

There are currently no defined Ore Reserves at the Bissa Satellite projects, although Nordgold has contracted WAI to complete a Feasibility study on the Lagongo and Zinigma projects. The study was used as the basis for an application for a Mining Licence from the Burkina Faso Government for Zinigma in May 2015.

9.1.5 Operational Profile – Mine and Plant

The Bissa Regional exploration satellite projects are likely to consist of smaller satellite pits to feed the Bissa plant. Mining by conventional open pit operated by a conventional truck and excavator mining method. Ore will be trucked to Bissa and processed there.

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Phases of exploration in the form of RC and DD drilling to confirm the presence of a Mineral Resource were completed in 2015. Feasibility studies were completed at Bouly, Zinigma and Ronguen.

Figure 9.2: RC Drilling at Lagongo, February 2015

9.1.6 Technical Reports References

WAI CPR Report on the Taparko-Bouroum and Bissa Assets, Burkina Faso, August 2013.

9.2 Taparko Regional Exploration Projects

9.2.1 Location and Access

Taparko Regional exploration projects currently under study include Ankouma, Baola and Nayiri Gold exploration projects. These projects are located to the NW of Taparko and lie approximately 40-60km NW of Taparko, and can be easily accessed. The detailed location of Taparko Regional exploration projects is shown on the Figure 9.1: Bissa and Taparko Satellite Project Locations (Page89)

9.2.2 Project Ownership and Licence Details

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Burkina Faso High River 2015- 1st renewal has Gold Exploration/ 15/09/ Baola II 302/MME/SG/ N/A 250 been received Exploration Valid 2020 DGCM 21/10/2015 Burkina Sarl

9.2.3 Regional and Local Geology

Refer Figure 3.1: Burkina Faso Regional Geologic Map (Page24).

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9.2.4 Current Mineral Resources and Ore Reserves

Table 9.4: Nayiri Mineral Resources in Accordance with the JORC Code (2004)

Category Ore (kt) Grade (g/t)* Au (koz) RESOURCES

Measured Indicated 514 1.74 29 Measured+Indicated 514 1.74 29 Inferred 12 1.45 1 * At Au COG 0.5g/t

9.2.5 Level of Study, Proposed Mining and Processing Methodology

Drilling in 2012 focussed mainly on the Ankouma North target with minor scout RAB/RC drilling elsewhere. 14 DD holes totalling 2,142m and 25 RC holes totalling 3,249m were drilled at resource definition spacing. The programme in 2013 continued to test Ankouma North.

9.2.6 Technical Reports References

 WAI CPR Report on the Taparko-Bouroum and Bissa Assets, Burkina Faso, August 2013

9.3 Burkina Faso Regional Exploration Projects

9.3.1 Location and Access

The Wayin permit is located approximately 70km east of Ouagadougou.

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Figure 9.3: Location of Wayin Exploration Project

9.3.2 Project Ownership and Licence Detail

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Burkina Faso High River 2014- Gold Exploration/ 21/01/ Wayin 202/MME/SG/ N/A 89.33 Exploration Valid 2017 DGMG Burkina Sarl

9.3.3 Regional and Local Geology

The Wayin prospect is mainly underlain by diorite intruding mafic meta-volcanics and minor crystal tuffs. The mineralized structure is 800m long and strikes NE, with steep sub-vertical dip.All units are intruded by mafic porphyry and felsic dykes. A steeply dipping brittle-ductile deformation (shearing) overprints the central part of the mineralized zone. At least two generations of quartz are identified. The first is abundant chalcedonic quartz stringers injecting the rock units. These stringers are concordant to the penetrative

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foliation. A second generation of quartz cross cuts the chalcedonic facies and appears discordant to the foliation.

The alteration is mesothermal (propylitisation) that highlights a mineral paragenesis including Au, Cu, Si, Py, Cpy, Ca, Ep, Mo, Po, Mt and T.

At Wayin, gold mineralization is widely controlled by lens-shape chalcedonic quartz stringers within altered diorite intercalated with basalt. The gold mineralization is associated with 0.3% of copper mineralization in places and regularly to disseminated Py, Cpy, Po, Mt and impregnation of Si, Ca and trace of Mo. The deposit is interpreted to be a “Porphyry Copper” type.

9.3.4 Current Mineral Resources and Ore Reserves

Table 9.5: Wayin Mineral Resources in Accordance with the JORC Code (2004)

Category Ore (kt) Grade (% Cu) Copper (t) RESOURCES

Measured Indicated Measured+Indicated Inferred 16,043 0.21 33,690

9.3.5 Technical Reports References:

 WAI CPR Report on the Taparko-Bouroum and Bissa Assets, Burkina Faso, August 2013.

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10 EXPLORATION PROJECTS – RUSSIA

10.1 Sergachinskaya (Additional Resource Base for Berezitovy Mine)

10.1.1 Location and Access

Refer to Figure 5.2: Detailed Location of Berezitovy (Page 46)

The Sergachinskaya property is adjancent to the Berezitovy mine and is located in the Tyndinski district, within the western part of the Amurskaya Oblast of the Russian Federation, 1,000km north of Blagoveshensk, the Amurskaya Oblast capital city. The regional centre is located at Tynda (Pop. Approx. 40,000) which is located 340km northeast of the property, and the closest large town to the property is Skovorodino, approximately 128km southeast by road. The nearest population centre is Urusha (Population 4,700) located 50km to the south, on the Trans-Siberian railway and a major road.

The main road access to the site is from the railway station in the town of Scovorodino (~128km), initially westwards following the main Federal Highway between Chita and Khabarovsk and then north-westwards from the village of Madalan along the mine road, a distance of some 65km.

10.1.2 Project Ownership and License Details

Sergachinskaya license is allocated into 6 separate areas, namely Videnovskiy, Koloktikan, Perevalniy, Pravoberezhniy, Lazarevskiy and Kolbachiy. The license allows both exploration and subsequent mining activities for gold at each of these.

Refer to Figure 5.2: Detailed Location of Berezitovy (Page 46)

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Sergachin- Mining/ 25/05/ BLG 14149 BR Berezitovy 100 162.7 skaya Valid 2032 Mining/ 31/12/ Khaikta BLG 02694 BR Berezitovy 100 365.02 Valid 2035

10.1.3 Regional and Local Geology

Refer to Figure 5.19: Detailed Location of Irokinda (Page 68)

Berezitovy and the adjacent Sergachinskaya area is located in the Prishulkino Structural-Metallogenic Zone which forms part of the eastern flank of the Eastern Transbaikal Upper Amur Region. Structurally the deposit is situated within the Magochinskaya thrusted block of Archean age rocks and is near the intersection of Sergachinski and Khaiktinski regional faults. To the east, the northwest trending greenstone

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belt, also of Archean age, separates rocks of the Magochinskaya block from other Precambrian rocks of the Amur Region, and to the south, rocks of the Mongolian Miogeosyncline which trend east-north-eastwards.

Gold mineralisation in and around the Berezitovy property is related to metosomatically altered structurally related zones within granitic gneisses.

10.1.4 Level of Study, Proposed Mining and Processing Methodology

Sergachinskaya area is an early stage greenfield project. It is considered as a future additional resource base for Berezitovy mine.

Table 10.1: Sergachinskaya Project Parameters Infrastructure Adjacent to Berezitovy project. Mine Type Open pit. Processing Type n/a Start-up n/a

10.1.5 Technical Report References

 WAI 2013: Updated CPR Report on the Berezitovy Asset, Russian Federation, April 2013.

10.2 Zhanok

10.2.1 Location and Access

Zhanok gold project is located in the far northern portion of the Republic of Buryatia in the Muiskay district. The mine is situated 700km northeast of the Buryatian republic capital city of Ulan-Ude, which hosts an international airport with numerous regional flights to other major Russian cities, as well as international destinations. The straight distance between Znanok license and Irokinda mine is about 20km whereas the distance from Irokinda to the nearest railhead in the Taximo village is 74km.

There are no roads within Zhanok license area. A winter road Irokinda-Uyu-Bagdaring passes along south- east boundary of the license.

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10.2.2 Project Ownership and License Details

Nordgold has 90.6% stake in OJSC “Buryatzoloto”.

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 03/12/ Zhanok UDE 01573 BR Buryatzoloto 100 980.06 Valid 2038

10.2.3 Regional and Local Geology

The main structural unit in the region is the Uzhno-Muiskaya formation, one of the blocks of the Archean basement, which is constrained on its western and eastern sides by contacts with the Kelyansakaya and Tuldunskaya mobile zones, respectively, and on the northern and southern boundaries by the Muisky and Tilishminsky faults, respectively.

Five gold ore anomalies were discovered during a geochemical sampling campaign in 2015.The anomalies are significant in terms of size and intensity and will be pursued during the 2016 dfield season. The gold anomalism is related to to quartz and quartz-carbonate veins as well as to zones of quartz veinlets/stockwork.

10.2.4 Level of Study, Proposed Mining and Processing Methodology

Zhanok license is at an early exploration stage. The historical work includes multi-scale geological mapping and regional geophysical work. Zhanok mineralisation is considered to be a potential resource base for the operating Irokinda mine.

10.2.5 Technical Reports References

 Department of Subsoil Use of Buryatia Republic, 2013: The License for Subsoil Use for Zhanok area, December 2013.

10.3 Onot-Kitoy

10.3.1 Location and Access

Refer to Figure 5.14: Location of Zun-Holba Gold Deposit, Republic of Buryatia, Russian Federation (Page 61)

The Onot-Kitoy gold project is situated in the western portion of the Republic of Buryatia in the Okinskiy district, which borders the Irkutsk Region to the north and west, and Mongolia to the south.

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The Onot-Kitoy license area is rather poorly developed. The license area is situated in 98km to the east from the village Orlik, which is the district centre and in 115km from to the village Mondy the latter is 203km via a paved road to the village of Kultuk, at the southern end of Lake Baikal, the nearest station on the Trans-Siberian railway line.

10.3.2 Project Ownership and License Details

Nordgold has 90.6% stake in OJSC “Buryatzoloto”.

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 14/03/ Onot-Kitoy UDE 01592 BR Buryatzoloto 100 396.2 Valid 2039

10.3.3 Regional and Local Geology

The Onot-Kitoy project is located in the eastern flank of Garganskiy ore district and northern part of Ilchirskiy ore district. The mineralisation is of gold-sulphide and gold-quartz-sulphide type and related to mineralised zones, quartz veins and zones of quartz stockwork.

10.3.4 Level of Study, Proposed Mining and Processing Methodology

Onot-Kitoy project is at an early exploration stage. The historical work includes multi-scale geological mapping, regional geophysical work and some surface trenching. Onot-Kitoy mineralisation is considered to be a potential resource base for Irokinda operating mine.

10.3.5 Technical Reports References

 Department of Subsoil Use of Buryatia Republic, 2014: The License for Subsoil Use for Onot- Kitoy area, March 2014.

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11 EXPLORATION PROJECTS - KAZAKHSTAN

11.1 Zherek

11.1.1 Location and Access

Refer to Figure 6.2: Detailed Location of Suzdal and Zherek (Page 73)

The Zherek deposit lies in the Semipalatinsk Oblast of northeastern Kazakhstan some 36km to the southwest of Semipalatinsk. Access to the Zherek site is very straightforward from Semipalatinsk, with the first 26km on asphalt road, followed by 10km on a reasonably well graded dirt road to the west. Total driving time from Semipalatinsk is approximately 40 minutes.

11.1.2 Project Ownership and Licence Details

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Kazakhstan Contract Celtic 28/05/ Zherek №203 (License Resources 100 Mining 1.52 2022 MG №107D) (Central Asia)

11.1.3 Regional and Local Geology

The Zherek deposit comprises a series of lens-like, sub-parallel orebodies and zones of hydrothermal alteration in sediments of Lower Carboniferous age. Orebodies are oxidised at surface where they “mushroom” up to 15- 30m in width, and extend into primary mineralisation at depth.

The deposit is located within the influence of the northwest trending Mukur fracture system where mineralisation occurs in thin veinlets, stockwork and as disseminations. In the oxide zone, iron and kaolin are prevalent, whilst primary mineralisation occurs at depth.

The main orebodies are associated with metasomatic haloes on the hangingwall side of the gold mineralisation which extend for up to 1,000m. Up to 100-300m away from the orebody, pyrite grades are 1-1.5%, diminishing upwards and the distribution of pyrite in the orebody themselves is not homogeneous, varying from 1–2.5% of the rock, although sporadically up to 5-6%. In addition, irregularly distributed arsenopyrite is also located in the gold zone, and forms a halo from 4-10m wide.

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11.1.1 Current Mineral Resources and Ore Reserves

Table 11.1: Zherek WAI 2011 Mineral Resources in Accordance with the JORC Code (2004)*

Category Ore (kt) Grade (g/t) Au (koz) RESOURCES

Measured Indicated 3,644 2.02 237 Measured+Indicated 3,644 2.02 237 Inferred 6,116 1.66 326 * at Au COG 0.5g/t

11.1.2 Level of Study, Proposed Mining and Processing Methodology

The deposit was discovered in 1968 and by 1978, the investigation of the oxidised gold-bearing ores was completed. From 1979 until 1995, investigation of the oxide portion of the deposit by AltaiZoloto culminated in TKZ-approved reserves, at cut-off grades varying from 1-5g/t Au, of some 618kt containing 3.2t Au with an average grade of 5.2g/t Au.

In 1995 mining works stopped, in 1997, Zherek LLP investigated the concept of heap leaching the remaining oxide ore (2.1Mt @ 2.6g/t Au) with full production commencing in 2003 and in December 2007, Zherek took 100% ownership of the company.

The Zherek gold mine is an open pit operation, with mining having commenced in 2003. Currently the mine is producing at an average rate of approximately 200ktpa of oxidised ore. Total ore production since 2003 is approximately 2Mt.

The infrastructure at Zherek mine is sufficient to operate a relatively small, open pit, heap leach operation, and comprises open pits, small offices, heap leach pads, plant, mechanical workshop, and accommodation.

11.1.3 Technical Reports References

 WAI 2011: CPR Report on the Assets of Nord Gold for Burkina Faso, Guinea, Kazakhstan and the Russian Federation, September 2010.

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11.2 Balazhal

11.2.1 Location and Access

Figure 11.1: Location of Balazhal in Northeastern Kazakhstan

The Balazhal deposit is located in Kokpektinsk district of the East Kazakhstan region, 100km southeast from the railway station Zhangiz-Tobe, 260km from Semipalatinsk and 65km from Georgievka station.

The closest main road to the deposit is the Omsk-Maykapchagai highway which lies 20km to the west. There is a well graded dirt road, 18km long, between the deposit and main road, although this road can be difficult to pass in winter and spring. Total driving time from Ust Kamenogorsk is around 2½ hours.

Other former gold mining enterprises are located nearby.

11.2.2 Project Ownership and Licence Details License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Kazakhstan Contract №851 (No 28/12/ Balazhal Nord Gold N.V. 100 Mining 0.458 license 2026 required)

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11.2.3 Regional and Local Geology

The Balazhal deposit comprises an auriferous stockwork hosted by carbonate metasomatite (beresite) located at the top of an intrusive gabbro-diorite and lying beneath terrigenous sediments.

The quartz veins of Balazhal form a macro stockwork in beresitised diorite and quartz gabbro which hosts sulphide and gold mineralisation. In plan the stockwork has an ellipsoid shape, 500m on strike and 225m wide, and the depth extent identified through borehole intersections is some 400m from surface. The stockwork and the component veins dip to the west.

Gold-quartz veins, about 40 in number, are surrounded by halos of stockwork beresite mineralisation which develop from the vein footwall for 30-40m in a horizontal direction. Veins lie sub-parallel to the stock, developing zones with a high density of fractures, some of which host dykes of aplite, plagiogranite, porphyry, and in some occurrences, ultrabasite.

11.2.4 Level of Study, Proposed Mining and Processing Methodology

The Balazhal gold mine is an open pit operation which has historically fed oxide ore to a cyanide heap leach operation; however with the depletion of the oxide resources, the mine has recently been mothballed pending the delineation of further resources and sulphide ores have been fully exposed in the base of the pit, which has been left to flood. Currently the mine produces only from stockpiled material which has already been mined.

The heap leach operation at Balazhal commenced in 2004. In 2009 gold production was limited to the treatment of 78kt of material which was recovered from old stockpiles, crushed and used to form “Heap No. 6” between May and August 2009.

11.2.5 Mineral Resources

Table 11.2: Balazhal WAI 2011 Mineral Resources in Accordance with the JORC Code (2004)*

Category Ore (kt) Grade (g/t) Au (koz) RESOURCES

Measured Indicated 182 1.53 9 Measured+Indicated 182 1.53 9 Inferred 926 3.53 105 * at Au COG 1g/t

11.2.6 Technical Reports References  WAI 2011: CPR Report on the Assets of Nord Gold for Burkina Faso, Guinea, Kazakhstan and the Russian Federation, September 2010.

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12 MONTAGNE D’OR

12.1 French Guiana

12.1.1 Location and Access

The Montagne d’Or Project is located approximately 85km south of the port of Saint-Laurent-du-Maroni, on the Maroni River, and 180km west of Cayenne, the capital of French Guiana in South America. French Guiana is an overseas department of France.

The project is covered by eight mining concessions with a total area of some 190km2.

Figure 12.1: Location of Montagne d’Or, French Guiana

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12.1.2 Project Ownership and Licence Details

Nordgold has a right to earn a 50.01% plus an additional 5% interest in the Montagne d’Or deposit by funding a minimum of USD30 million in expenditures and completing a Bankable Feasibility Study by no later than March 2017.

By the end of Q1 2016, Nordgold spend USD27 million out of the total of USD30 million commitment.

If Nordgold earns its interest it will take ownership of 55.01% of the shares of SOTRAPMAG S.A.S., the wholly owned French subsidiary of Columbus Gold that owns the Project and Columbus Gold will retain a 44.99% interest. SOTRAPMAG will be the joint venture company.

The mining Concession is valid until 2019 and renewable for a further 25 year period.

Figure 12.2: Detailed Location of Montagne d’Or

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12.1.3 Regional and Local Geology

Montagne d’Or is located within the Guiana Gold Belt. The mineral deposits of the Guiana Gold Belt are very similar to those in other greenstone terrains such as in West Africa. This will enable Nordgold to apply its deep knowledge of West African geology to the Project and other projects in the region.

Mineralisation consists of semi-massive sulphide bands, stringers and disseminations of probable volcanic origin. Visible gold is rarely observed and preliminary mineralogical work suggests that it occurs along micro-fractures and on sulphide grain boundaries. Mineral deposits are typical of those in other greenstone terrains such as in Canada, Australia and West Africa. Potential future mining will be by open pit.

Figure 12.3: Typical Section Montagne d’Or

12.1.4 Current Mineral Resources and Ore Reserves

Table 12.1: Montagne d’Or Mineral Resources in Accordance with the JORC Code (2012)*

Category Ore (kt) Grade (g/t) Au (koz) RESOURCES

Measured Indicated Measured+Indicated Inferred 140,100 1.0 4,300 *At Au COG 0.4g/t

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12.1.5 Level of Study, Proposed Mining and Processing Methodology

Infrastructure Mine Type Open Pit - drill and blast operation. Processing Type Gravity-Floatation- CIL of flotation concentrate Start-up 2021

12.1.6 Key Project Developments

2014 Nov – Completion of Phase II Resource Development drill program, which consisted of 25,570 meters of diamond drilling on a 50m grid and to a vertical depth of 200m. The drilling covered the entire resource model strike length of 2500m; 2015 Q1 – New Mineral Resource Update to Indicated Category (to be done by SRK); 2015 Q1 – Updated Metallurgical Test work results, currently suggesting excellent results in range of 95-97% gold recoveries; Environment Impact Study underway; 2015 Q2 – Preliminary Economic Assessment (to be done by SRK); 2015 Q2 – Phase III drilling program to start aimed at tightening drilling grid to 25m; 2016 Q2 – New Mineral Resource Update to Measured Category; and 2016 Q4 – Bankable Feasibility Study.

Figure 12.4: General view of Montagne d’Or, Paul Isnard Gold Project (source: Columbus Gold web site)

12.1.7 Technical Reports References:

 Nordgold web site, PDAC Presentation Final report, Denver forum – Nordgold Presentation, Bankable Feasibility Study - news release dated Jan 22, 2015 Columbus_gold_presentation_2015-02-03.pdf, NG Indaba Presentation 2015; and  Mineral Resource Estimate NI 43-101 Technical Report, Coffey Mining, August 2014.

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13 PISTOL BAY

13.1 Nunavut Territory, Canada

13.1.1 Location and Access

The Pistol bay gold project is located in Canada, Nunavut Territory, on the coast of Hudson Bay. An all- weather, all season, improved gravel road passes through the centre of the property. The road was constructed by the Hamlet of Whale Cove (population 350) to provide hunters and fishermen with access to summer campsites at the mouth of the Wilson River, and beyond. A branch of the road provides access to the Pistol Bay camp from Whale Cove by pickup truck and ATV.

Whale Cove has a 1,200m air strip with daily flights to and from Winnipeg, Thompson, and local communities. The airstrip is within 2 kilometres of the east boundary of the property. Whale Cove also has a port facility that accepts sealifts from the rail head at Churchill, Manitoba, and Montreal in the shipping season.

Figure 13.1: Location of Pistol Bay Project

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13.1.2 Project Ownership and Licence Details

Nordgold holds an aggregate of 55,574,999 shares of Northquest, representing approximately 51.5% of the issued and outstanding common shares of Northquest on a non-diluted basis as at 31st March 2016.

Figure 13.2: Detailed Location of Pistol Bay Project

The Pistol Bay property consists of 861km2 of mineral rights. The initial, optioned, claims, consisting of six claims covering an area of 54.40km2, were acquired through an option agreement dated December 2, 2010 and four major campaigns of claim staking and permitting have been completed since then such that the property now consists of 104 claims covering an area of 861 square kilometres. The property is located on the west coast of Hudson Bay in eastern Nunavut Territory in NTS 55 K/05, 06, 07, 08, 09, 10, 12 and 55L/09.

13.1.3 Regional and Local Geology

The Pistol Bay project is located within the Rankin-Ennadai greenstone belt in the Hearne Province which has a metamorphic/plutonic age of approximately 2.7 Ga. The Rankin-Ennadai belt consists of several outliers of Archean supracrustal rocks, with a moderate degree of stratigraphic correlation, that resemble outliers of a once much larger and possibly more continuous supracrustal sequence. These isolated

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sequences have various names including the “Rankin”, Yathkyed”, “Henik” and “Kaminak” Groups. The Pistol Bay project is in the Kaminak Belt or “Kaminak Group” of the larger Rankin-Ennadai Belt. The Kaminak Group consists of differentiated volcanic rocks, volcaniclastic and siliciclastic rocks, and iron formation with voluminous debris flows including coarse conglomerates, mudstones, and siltstones plus numerous synvolcanic to late tectonic plutons ranging from diorite to granodiorite with ages that cluster at approximately 2.7 Ga.

Gold mineralization is hosted mainly in an undeformed elliptical gabbro unit immediately south of the Pistol Bay shear zone which comprises mainly felsic and sedimentary rocks. Native gold is common as disseminations of fine to coarse nuggets associated with fractures.

13.1.4 Level of Study, Proposed Mining and Processing Methodology

Early exploration stage, with extensive drilling programme completed in 2014.

13.1.5 Technical Reports References:

 John North, Ph.D., P.Geo. “Technical Report on the Pistol Bay Project of Northquest Ltd. Nunavut Territory, Canada, NTS 55K/05, 06, 07, 08, 09, 10, 12 & 55L/09”, March 21, 2014.

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14 SILVER PROJECTS – RUSSIA

14.1 Prognoz

14.1.1 Location and Access

The region around the Prognoz project has little or no infrastructure to provide support to the project. The major population centre for the region is Yakutsk, 444km south of the project, whilst the administrative centre for the Verkhoyanskiy district is the village of Batagai with a population of approximately 2,000 inhabitants, situated approximately 220km to the northeast of the property. Bagatai is a river port, and is the base for Yangeologia which conducted the historical exploration on the Prognoz property.

There is an all-weather dirt road between the villages of Batagai and Tokuma, and from Tokuma there is a link to the Prognoz project via a road passable, in the summer, only by caterpillar trucks.

Figure 14.1: Location of Prognoz Silver Project within the Yakutia Region, Russian Federation

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14.1.2 Project Ownership and Licence Details

Nordgold owns a 50% interest in Prognoz Silver LLC, which holds Prognoz deposit permit (56km2), with the other 50% owned by private company Argentum CJSC (‘Argentum’).

Figure 14.2: Detailed Location of Prognoz Silver Project

License or Surface Interest Type/ Expiry Asset Decree Holder area Comments (%) Status Date Number (km2) Russia Mining/ 30/09/ Prognoz YaKU 14002 BE Prognoz 50 56 Silver deposit Valid 2025

14.1.3 Regional and Local Geology

The licence is located within the Verkhoyansk mobile belt of northeastern Yakutia. The fold-and-thrust belt forms part of a major orogenic system separating the Siberian North Asian Craton to the west from the immense expanse of accreted terranes, which form most of the Russian Far East.

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The Prognoz property hosts silver-lead-zinc vein-type deposits within a shear zone, where the host rocks are sandstones. Extensive exploration work since 1985 has identified over 30 mineralised veins distributed across four areas.

14.1.4 Current Mineral Resources and Ore Reserves

Table 14.1: Prognoz in-situ Mineral Resources in Accordance with the JORC Code (2004) (Micon 31 December 2007)

Category Ore (kt) Grade (g/t Au)* Silver (Moz) RESOURCES

Measured Indicated 4.5 704.0 102 Measured+Indicated 4.5 704.0 102 Inferred 4.9 659.0 103 * at Ag COG 100g/t

14.1.5 Level of Study, Proposed Mining and Processing Methodology

Table 14.2: Prognoz Project Parameters Infrastructure 300km Winter Road Access Mine Type Potentially Underground Processing Type Heap Leach Start-up Possibly 2019

14.1.6 Technical Report References

 WAI 2011: Updated CPR Report on the Assets of Nordgold for Burkina Faso, Guinea, Kazakhstan and the Russian Federation, WAI August 2011.

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