ORSU METALS CORPORATION

NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

May 2019 Wardell Armstrong International Baldhu House, Wheal Jane Earth Science Park, Baldhu, Truro, Cornwall, TR3 6EH, United Kingdom Telephone: +44 (0)1872 560738 Fax: +44 (0)1872 561079 www.wardell-armstrong.com

DATE ISSUED: 21 May 2019 JOB NUMBER: ZT61-1731 VERSION: V2.0 REPORT NUMBER: MM1301 STATUS: Final

ORSU METALS CORPORATION

NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

May 2019

PREPARED BY: Andrey Tsoy Principal Resource Geologist Phil Newall Managing Director

APPROVED BY: Phil Newall Managing Director

This report has been prepared by Wardell Armstrong International with all reasonable skill, care and diligence, within the terms of the Contract with the Client. The report is confidential to the Client and Wardell Armstrong International accepts no responsibility of whatever nature to third parties to whom this report may be made known.

No part of this document may be reproduced without the prior written approval of Wardell Armstrong International.

ENERGY AND CLIMATE CHANGE ENVIRONMENT AND SUSTAINABILITY INFRASTRUCTURE AND UTILITIES Wardell Armstrong is the trading name of Wardell Armstrong International Ltd, Registered in England No. 3813172. LAND AND PROPERTY MINING AND MINERAL PROCESSING Registered office: Sir Henry Doulton House, Forge Lane, Etruria, Stoke-on-Trent, ST1 5BD, United Kingdom MINERAL ESTATES UK Offices: Stoke-on-Trent, Cardiff, Carlisle, Edinburgh, Greater Manchester, London, Newcastle upon Tyne, Sheffield, Taunton, Truro, West Bromwich. International Offices: Almaty, Moscow WASTE RESOURCE MANAGEMENT ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

CONTENTS

1 EXECUTIVE SUMMARY ...... 1 2 INTRODUCTION ...... 6 2.1 Scope of Work ...... 6 2.2 Sergeevskoe Project ...... 6 2.3 Independent Consultant ...... 7 2.4 Source of Information ...... 7 2.5 Personal Inspection ...... 8 2.6 Statement of independence ...... 8 2.7 Units and Currency ...... 8 2.8 Limitations, Reliance, and WAI Declaration ...... 9 3 RELIANCE ON OTHER EXPERTS ...... 10 4 PROPERTY DESCRIPTION AND LOCATION ...... 11 4.1 Location ...... 11 4.2 Mineral Tenure ...... 12 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 15 5.1 Accessibility and Infrastructure ...... 15 5.2 Climate ...... 15 5.3 Local Resources and Infrastructure ...... 16 5.4 Physiography ...... 17 6 HISTORY ...... 18 6.1 Introduction ...... 18 6.2 Kluchevskoye ...... 18 6.3 Sergeevskoe ...... 19 6.4 Historical Prospects...... 25 7 GEOLOGICAL SETTING AND MINERALISATION ...... 28 7.1 Regional Geology ...... 28 7.2 Sergeevskoe Property ...... 30 7.3 Mineral Occurrences ...... 32 8 DEPOSIT TYPES ...... 40 9 EXPLORATION ...... 43 9.1 Introduction ...... 43 9.2 Check Sampling ...... 43 9.3 Orsu Trenching 2017-2018 ...... 44 10 DRILLING ...... 48 10.1 Introduction ...... 48 10.2 Orsu Drilling 2017-2018 ...... 48 11 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 51 11.1 Introduction ...... 51 11.2 Orsu Exploration Campaign 2017-2018 ...... 51 11.3 Security ...... 84 11.4 Authors Opinion ...... 84 12 DATA VERIFICATION ...... 85 ZT61-1731/MM1301 Final V2.0 Page i May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

12.1 WAI Personal Inspection ...... 85 12.2 Database Validation ...... 88 12.3 WAI Opinion ...... 88 13 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 89 13.1 Introduction ...... 89 13.2 2017 Oxide Testwork ...... 89 13.3 2018 Metallurgical Testwork ...... 91 13.4 Summary ...... 92 14 MINERAL RESOURCE ESTIMATES ...... 93 14.1 Introduction ...... 93 14.2 General Methodology ...... 93 14.3 Data Transformations and Software ...... 94 14.4 Database ...... 94 14.5 Wireframe Modelling / Mineralised Domains ...... 96 14.6 Statistical Analysis and Variogram Modelling ...... 97 14.7 Block Modelling ...... 102 14.8 Mineral Resource Classification ...... 109 15 MINERAL RESERVE ESTIMATES ...... 113 16 MINING METHODS ...... 114 17 RECOVERY METHODS ...... 115 18 PROJECT INFRASTRUCTURE ...... 116 19 MARKET STUDIES AND CONTRACTS ...... 117 20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT...... 118 20.1 Introduction ...... 118 20.2 Environmental Studies ...... 118 20.3 Social and Communities ...... 118 20.4 Conclusion ...... 119 21 CAPITAL AND OPERATING COSTS ...... 120 22 ECONOMIC ANALYSES ...... 121 23 ADJACENT PROPERTIES ...... 122 23.1 Introduction ...... 122 23.2 The Kluchevskoye Deposit ...... 122 23.3 The Alexandrovka Project ...... 124 24 OTHER RELEVANT DATA AND INFORMATION ...... 127 25 INTERPRETATION AND CONCLUSIONS ...... 128 26 RECOMMENDATIONS ...... 131 27 REFERENCES ...... 132

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TABLES

Table 1.1: Undiluted Mineral Resource Estimate for the Sergeevskoe Gold Project ...... 4 Table 4.1: Sergeevskoe Concession Area Coordinates ...... 14 Table 6.1: Historical Exploration Activities ...... 21 Table 9.1: Orsu Check Sample Exploration Results ...... 44 Table 11.1: Laboratory Assay Analysis Methods ...... 56 Table 11.2: Summary of Field Duplicate Sample Analysis ...... 71 Table 11.3: Certified Reference Material ...... 72 Table 11.4: Average Analysis Results for Silver in CRMs...... 73 Table 11.5: Internally Produced Blank Sample Tests Results ...... 80 Table 11.6: Risk Matrix: QA/QC Sample Auditing ...... 82 Table 14.1: Sample File Structure ...... 94 Table 14.2: Sergeevskoe Database Summary ...... 95 Table 14.3: Wireframe Models Supplied by Orsu ...... 96 Table 14.4: Domain Coding at Sergeevskoe ...... 97 Table 14.5: General Statistics for Composites Inside Wireframe ...... 98 Table 14.6: Top Cut Applied at Sergeevskoe, Gold ...... 99 Table 14.7: Top Cut Applied at Sergeevskoe, Silver ...... 99 Table 14.8: Modelled Variogram Parameters for Sergeevskoe ...... 101 Table 14.9: Block Model Prototype ...... 103 Table 14.10: General Density Data at Sergeevskoe ...... 103 Table 14.11: Grade Interpolation Plan ...... 105 Table 14.12: Search Ellipsoid ...... 105 Table 14.13: Comparison of Gold Grade in Block Model, Samples and Composites for Zone 100 .... 106 Table 14.14: Pit Optimisation Parameters ...... 111 Table 14.15: Undiluted Mineral Resource Estimate for the Sergeevskoe Gold Project ...... 112 Table 23.1: Recorded Historical Production from Kluchevskoye ...... 124 Table 25.1: Pit Optimisation Parameters ...... 129 Table 25.2: Undiluted Mineral Resource Estimate for the Sergeevskoe Gold Project ...... 129 Table 26.1: 12 Month Budget and Work Programme (Orsu)...... 131

FIGURES

Figure 1.1: Schematic Plan View of Mineralised Zones at Sergeevskoe (Orsu) ...... 2 Figure 4.1: Location Map of the Sergeevskoe Property...... 11 Figure 4.2: Sergeevskoe Concession Area (Blue outline) ...... 13 Figure 5.1: Route Map from Davenda to Chita Airport (579km via M58/AH30) ref. Googlemaps ...... 15 Figure 6.1: Typical Drilling Passport from Soviet Era (Orsu) ...... 24 Figure 6.2: Composite Geological/Sampling Map Over Zone 23 (Orsu) ...... 24 Figure 6.3: Sampling Plan at Zone 23 and Adit 5 Occurrences (WAI) ...... 26 Figure 7.1: Regional Geology, Kluchevskoye District (Orsu) ...... 29 Figure 7.2: Geological Map of Concession Area (Orsu) ...... 31 Figure 7.3: Main Ore Controlling Faults, Sergeevskoe (Orsu) ...... 32 ZT61-1731/MM1301 Final V2.0 Page iii May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

Figure 7.4: Main Mineral Occurrences within the Sergeevskoe License (Orsu) ...... 33 Figure 8.1: Grade and Tonnage for RIRGS Deposits (Hart, 2007) [BCC = Brewery Creek Classic zone, CC = Clear Creek] ...... 40 Figure 8.2: Generalised Model for RIRGS Deposits ...... 41 Figure 8.3: Global distribution of Au deposits suggested to be RIRGS (Modified from Thompson et al. (1999), Lang et al. (2000), and Lang and Baker (2001)) ...... 41 Figure 11.1: Sample Preparation Scheme ...... 55 Figure 11.2: Au Field Duplicates, 2017 Exploration, ALS Laboratory, Drillholes ...... 59 Figure 11.3: Ag Field Duplicates, 2017 Exploration, ALS Laboratory, Drillholes ...... 60 Figure 11.4: Au Field Duplicates, 2017 Exploration, SGS Laboratory, Trenching ...... 61 Figure 11.5: Ag Field Duplicates, 2017 Exploration, SGS Laboratory, Trenching ...... 62 Figure 11.6: Au Field Duplicates, 2018 Exploration, SGS Laboratory, Drillholes ...... 63 Figure 11.7: Au Field Duplicates, 2018, ALS Laboratory, Drillholes ...... 64 Figure 11.8: Au Field Duplicates, 2018 Exploration, SGS Laboratory, Trenching ...... 65 Figure 11.9: Au Field Duplicates, 2018 Exploration, ALS Laboratory, Trenching ...... 66 Figure 11.10: Ag Field Duplicates, 2018 Exploration, ALS Laboratory, Trenching ...... 67 Figure 11.11: Ag Field Duplicates, 2018 Exploration, SGS Laboratory, Trenching ...... 68 Figure 11.12: Ag Field Duplicates, 2018 Exploration, ALS Laboratory, Drillholes ...... 69 Figure 11.13: Ag Field Duplicates, 2018 Exploration, SGS Laboratory, Drillholes...... 70 Figure 11.14: CRM for Au, 2017 Drillholes (DH) and Trenches (TR) ...... 74 Figure 11.15: CRM for Au, 2018 Drillholes (Part 1) ...... 75 Figure 11.16: CRM for Au, 2018 Drillholes (Part 2) ...... 76 Figure 11.17: CRM for Ag, 2018 Drillholes ...... 76 Figure 11.18: CRM for Au, 2018 Trenches (Part 1) ...... 77 Figure 11.19: CRM for Au, 2018 Trenches (Part 2) ...... 78 Figure 11.20: CRM for Ag, 2018 Trenches ...... 79 Figure 11.21: Blank Analysis Results, 2017 Exploration ...... 80 Figure 11.22: Blank Analysis for Au and Ag, Drillholes, 2018 ...... 81 Figure 11.23: Blank Analysis for Au and Ag, Trenches, 2018 ...... 81 Figure 14.1: Plan View of Drillhole (green) and Trench (blue) Location at Sergeevskoe ...... 95 Figure 14.2: Mineralised Domain Wireframe Models at Sergeevskoe (Fault Zone – grey) ...... 97 Figure 14.3: Au Modelled Variogram, Domain 700, Along Strike ...... 100 Figure 14.4: Au Modelled Variogram, Domain 700, Down Dip ...... 100 Figure 14.5: Au Modelled Variogram, Domain 700, Cross Strike ...... 101 Figure 14.6: Au Grade – Density Relationship for Primary Mineralisation ...... 104 Figure 14.7: Block Model Grade vs Original Samples ...... 107 Figure 14.8: SWATH Plots for Block Model Grade vs Composite Data, All Zones, South-North ...... 108 Figure 14.9: SWATH Plots for Block Model Grade vs Composite Data, All Zones, West-East ...... 108 Figure 23.1: Location of Adjacent Properties (Orsu) ...... 122

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PHOTOGRAPHS

Photo 5.1: Kluchevskiy Village with Open Pit in Background (WAI) ...... 16 Photo 6.1: Adit Portal, Kluchevskoye ...... 19 Photo 6.2: Trench K996, Zone 23, from the Soviet Era (WAI) ...... 22 Photo 6.3: Shaft 28 at Kozie (WAI) ...... 23 Photo 9.1: Dozer Trench Stripping (WAI) ...... 45 Photo 9.2: Trench Hand Cleaning (WAI) ...... 45 Photo 9.3: Trench Sample Cutting with Portable Diamond Saw (WAI) ...... 46 Photo 9.4: Cut Trench Sampling (WAI) ...... 47 Photo 10.1: Atlas Copco CS 14 Drill Rig (WAI) ...... 48 Photo 10.2: Drillcore Awaiting Transfer from Drill Site (WAI) ...... 49 Photo 10.3: Completed Drillhole Collar SDH17-2 (WAI) ...... 50 Photo 11.1: Trench Samples Being Cut (WAI) ...... 51 Photo 11.2: Core Cutting Equipment (WAI) ...... 52 Photo 11.3: Cut Core and Trench Samples (WAI) ...... 53 Photo 11.4: Sample Bags Prepared for Dispatch (WAI) ...... 53 Photo 12.1: Massive Sulphides in Hole 17-15 Around 150m Depth ...... 86 Photo 12.2: High Sulphide Zone, Hole 17-17 around 99m Depth ...... 87 Photo 12.3: Massive Brecciated Sulphides in Hole 18-31 at 36m Depth ...... 87 Photo 23.1: The Alexandrovka Project Area (Zapadnaya, 2016) ...... 125

APPENDICES

APPENDIX 1: Certificate of Author APPENDIX 2: Statistical Data for Individual Wireframe Zone APPENDIX 3: Gold Decile Analysis for Individual Zones APPENDIX 4: General Statistic Plots for Au APPENDIX 5: Silver Decile Analysis for Individual Zones APPENDIX 6: Moisture Content and Density Tables APPENDIX 7: Comparison of Gold Grade in Block Model, Samples and Composites for Individual Zones APPENDIX 8: Rejected Duplicates from QAQC APPENDIX 9: JORC Table 1

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1 EXECUTIVE SUMMARY

The Sergeevskoe Property is located in the Zabaikalsky Region in the Russian Federation. The property is situated 40km to the southwest of town – the district capital with a large railway station on the Trans-Siberian Railway. The newly built Chita-Khaborovsk motorway passes within 8km to the south of the property. The distance from Chita to Sergeevskoe is 560km.

The license is irregular in shape, covers some 7.6km2 and is approximately 4km in an east-west direction and 1.5km north-south. Orsu advises that the license is currently valid and in good standing according to the rules, regulations, and laws of the Russian Federation.

The Sergeevskoe licence area is located within the Mogocha Gold District, within a major tectonic Proterozoic to Mesozoic fold belt of the southwestern margin of the Aldan-Stanovoi Shield of the Siberian Craton. The region predominantly comprises various granitoids surrounded by metamorphic rocks. Plutons from the Middle Palaeozoic (Olekma Complex), Permian (Amanan Complex) and Jurassic (Amudzhikan Complex) intrude the Precambrian metamorphic rocks and host a number of gold and molybdenum deposits and occurrences.

The granitoid complexes are located adjacent to a marked flexure (dilational jog) in the regional east- west trending “Latitudinal Fault”, a segment of the regional Mogocha-Bushuley Fault Zone, marking the contact between Proterozoic and Palaeozoic to Mesozoic granitoids.

The deposit cluster in the area is hosted by the Davenda granite massif (Amanan Complex) which has a strike length of 50km and a width of 2-3km. Although gold and molybdenum mineralisation is hosted in Permian granite, it is related to the porphyry intrusions of the Amudzhikan Complex and associated with the zones of endocontact and exocontact of the Davenda massif as well as with the magmatic breccia and five generations of Jurassic dykes.

The Sergeevskoe license lies immediately to the west of the historic Kluchevskoye open pit gold mine which has produced well over 1Moz Au and has a resource potential of several more million ounces gold and which is now the focus of a BRICS consortium looking to re-start the project1. Furthermore, 5 km to the west of Sergeevskoe license lies the recently opened Alexandrovskoe open pit gold mine.

The gold mineralisation is generally related to quartz stockwork system which is often accompanied by alteration (tourmalinisation, pyritisation, sericitisation) together with sulphide polymetallic mineralisation. The major ore-controlling faults at Kluchevskoye pass westwards into the Sergeevskoe license and it is quite clear that the mineralised structures that were mined at Kluchevskoye are continuous to a greater or lesser extent into the Sergeevskoe area, although the information is not necessarily indicative of the mineralisation on the property that is the subject of the technical report.

1 https://indianexpress.com/article/india/indian-driven-gold-mining-project-in--praised-at-brics-summit- 5278885/ https://www.reuters.com/article/us-safrica-brics-russia-gold/indias-sun-gold-china-national-gold-to-go-ahead- with-siberian-gold-project-idUSKBN1KG32X ZT61-1731/MM1301 Final V2.0 Page 1 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

Previous (historical) works at Sergeevskoe in the 1950-60s included geochemical sampling and geophysical surveys, trenching and limited core drilling resulting in the delineation of a number of gold, copper and molybdenum anomalous areas. In total, and to varying degrees of study, more than 10 gold occurrences and numerous mineralised points for gold, molybdenum and copper have been identified at the Sergeevskoe property. Numerous geochemical anomalies of Au, Cu and Mo were also delineated in the area.

Since 2016, Orsu has completed 48 surface trenches for a total of 6,089.0m and the recovery of 5,170 samples plus a further 82 diamond drillholes for a total of 17,107.80m and the collection of 12,486 samples. This is the baseline data used in the maiden mineral resource estimate.

A Mineral Resource Estimate has been prepared by Wardell Armstrong International based on data provided by Orsu in the form of an electronic trench and drillhole database along with digital mineralised wireframes. The compiled mineral resource dataset comprises 31,126 composites with gold grades from 0.001 to 242.1g/t Au and averaging 0.6g/t Au. The current estimate is based on a mineralised domain interpretation on the basis of composited gold grades. Domain boundaries were digitised on cross-sections, snapped to drillhole traces where appropriate, then wire-framed into a three-dimensional solid.

The resource model comprised a large stockwork, containing 122 segments of sheeted subparallel quartz-tourmaline-sulphide veins (zones) within nine domains. The individual vein segments are separated by faults or unmineralised intervals. The most important divide is represented by the Shirotnyi Fault (Figure 1.1). To its south are Zone 23 West, Zone 23 Middle, Zone 23 East, Adit 5 West, and Adit 5 East domains. To the north are the Intermediate, Klyuchi West, Kozie and Peak Klyuchi domains.

Figure 1.1: Schematic Plan View of Mineralised Zones at Sergeevskoe (Orsu)

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The block model was constructed with a parent cell size of 10m x 10m x 10m, sub-celling was allowed down to 2.0m x 2.0m x 2.0m, with respect to overburden and oxide/primary material and within all individual zone wireframes. Inverse Power Distance Squared (IPD2) was the principal interpolation method and Ordinary Kriging (OK) as the secondary (check) method for Au and Ag. Zonal control and dynamic anisotropy were used for grade interpolation. Six estimation passes were run with each one using a consecutively larger ellipsoid to ensure that all blocks were estimated. Block model validation included comparing estimated block grades with their informing composites and included inspection of sectional plots of the model and drill data, and review of swath plots.

CIM (2014) requires that publicly reported Mineral Resource estimates only include material for which it can be demonstrated that there is “reasonable prospect for eventual economic extraction”. One of the methods applied is to constrain the Mineral Resource within a notional optimised pit shell using assumed parameters. The optimisation parameters used reflect a conventional open pit operation. The Mineral Resource model blocks were classified as Inferred on the basis of geological continuity and complexity, results of QAQC analysis and the quality of data, spatial grade continuity and the results of geostatistical analysis, and quality of resultant block model.

Mineral Resources are not Mineral Reserves and have not demonstrated economic validity. The extent to which mining, metallurgical, marketing, infrastructure, permitting, marketing and other financial factors may affect the eventual Mineral Resource estimate is not precisely defined. The declared Mineral Resource estimate was constrained by notional economic assumption to demonstrate reasonable prospects of eventual economic extraction as required by CIM (2014) and the JORC Code (2012). No Mineral Reserve under CIM (2014), or Ore Reserve under the JORC Code (2012), has been defined for the Sergeevskoye Project at this stage of development.

The Sergeevskoye Mineral Resource was estimated by Mr Andrey Tsoy, under the supervision of Dr Phil Newall of Wardell Armstrong International, a Qualified Person for the purpose of Mineral Resource reporting under NI 43-101. The estimate is based on surface trench and diamond drilling data supplied by Orsu with an effective date of 15th of April 2019.

At a cut-off grade of 0.5g/t Au, an Inferred mineral resource of 25.09Mt at 1.47g/t Au (containing 1.19Moz) has been estimated based on an undiluted (sub-celled) block model as presented in Table 1.1 below. The mineral resource is constrained by an optimised pit shell and limited by the licence boundary to the east. Essentially the proximity of the licence boundary limits the extent of the optimised open pit shell, equally mineralisation is truncated at the licence boundary although is considered to extend in an easterly direction towards the Kluchevskoe open pit mine.

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Table 1.1: Undiluted Mineral Resource Estimate for the Sergeevskoe Gold Project Open Pit Constrained by Licence Class COG Tonnes Grade Contained Metal (Mt) (g/t Au) Au (‘000 oz) Inferred 0.4 25.22 1.47 1,192 Inferred 0.5 25.09 1.47 1,186 Inferred 0.6 23.93 1.52 1,169 Inferred 0.7 21.59 1.61 1,118 Inferred 0.8 18.64 1.75 1,049 Notes: 1. Mineral Resources reported for the Sergeevskoe Gold Project are classified as Inferred. 2. Mineral Resources are not reserves until they have demonstrated economic viability based on a Feasibility Study or Pre-Feasibility Study. 3. Mineral Resources are reported inclusive of any Ore Reserves. 4. All figures are rounded to reflect the relative accuracy of the estimate, apparent errors may occur due to rounding. 5. The mineral resources reported are undiluted, representing the sub-celled model with no account of potential mining dilution of the mineralisation as a result of the narrow mineralised veins. 6. The block model has been constrained by an open pit optimisation study based on economic and technical parameters as provided by Orsu Metals Corporation and constrained by the licence area. 7. Mineral Resources for the Sergeevskoe Gold Project have been classified in accordance with CIM (2014) guidelines and the guidelines of the JORC Code (2012) by Dr Phil Newall, an independent Competent Person as defined by JORC. 8. The estimate is based on surface trench and diamond drilling data supplied by Orsu with an effective date of 15th of April 2019. 9. Contained metal refers to estimated contained metal in the ground not adjusted for metallurgical recovery.

Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves or Ore Reserves, and there is no certainty that all or any part of the Mineral Resources or mine plan tonnes would be converted into Mineral Reserves.

Metallurgical testwork has been conducted in 2017, for oxide material, and in 2018, on primary sulphide material. Positive cyanidation test results were received for the oxide samples taken from Adit 5 (85.17% to 95.3% recovery) and Kozie (91.72% to 92.32%) prospects, both showing amenability for heap leaching. For primary material the results were positive with up to 89% recovery from sulphide material.

The 2018 drillholes and trenches were completed within a 1.0km2 area in the southeast of the Sergeevskoe license at Zone 23, Adit 5, Klyuchi West and Kozie prospects, with scout holes drilled at the Sergeeva and Peak Klyuchi prospects.

To date, only limited baseline environmental studies have been undertaken, although further environmental and social impact studies will be necessary, in order to meet the requirements of future feasibility studies completed according to international standards.

There is good potential to grow the mineralisation envelope at the Sergeevskoe Project beyond that identified in this maiden Mineral Resource Estimate. Mineralisation remains open both along the ZT61-1731/MM1301 Final V2.0 Page 4 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION westward strike and downdip. In particular, there is a good possibility to identify new mineralisation at the western continuation of Klyuchi West and Intermediate domains, and only partly drill-tested mineralisation in between these domains and Kozie domain. The western extension of Zone 23 remains open, with some gold mineralisation recognised in historical holes and by Orsu during scout sampling at the Sergeeva prospect some 500m west. Peak Klyuchi requires additional attention as a direct continuation of the Intermediate mineral domain. Kozie domain is also open westward, with gold mineralisation intercepted in Orsu’s trench SKZTR17-11 (see Figure 1.1).

Of key interest for growth potential is testing of the downdip continuation of gold mineralisation in the Intermediate, Klyuchi West and Zone 23 domains, particularly due to a clear increase in gold grade. The reported gold mineralisation at Sergeevskoe was drill-tested to a depth of 750mRL from approximately 950 - 1,000mRL topographic surface, whereas the adjacent Kluchevskoye gold mineralisation is drill-intersected to a depth of 450 - 500mRL.

In addition, there are numerous occurrences of gold mineralisation and geochemical/geophysical anomalies not yet tested by Orsu beyond the area of detailed works within the 7.6km2 licence area of the Sergeevskoe Project.

Recommendations for further work programmes have been presented to Orsu, with costings that have been reviewed by the QP. Essentially, over the next 12 months, Orsu is focussed on expanding the current resource base through a targeted trenching (circa 3,000m) and drilling (circa 3,500m) programme. Subject to positive results, this will then progress into a subsequent drilling programme in the order of 6,000m (not included within this initial budget) to include more detailed metallurgical testwork. This next phase of work will be supplemented with some targeted metallurgical testwork and geophysical survey (detailed magnetic and Induced Polarisation). A summary of the next phase of work is presented in the table below:

№ Item / Task US$ 1 Drilling 3,500m and Trenching 3,000m 450,000 2 Assays 150,000 3 Logging of drill core and trenches, core splitting, sample transportation, etc. 250,000 4 Metallurgical testwork (2 samples/programmes) 200,000 5 Geophysical works 50,000 6 External consultants 75,000 7 G&A (local) 75,000 8 Updated Resource 75,000 9 Contingency 10% 132,500 10 TOTAL 1,457,500

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2 INTRODUCTION

2.1 Scope of Work

Wardell Armstrong International (WAI) was commissioned by Orsu Metals Corporation (“Orsu” or the “Client”) to prepare a Mineral Resource Estimate (MRE) under the Requirements of the Canadian National Instrument 43-101 (NI 43-101) for the Sergeevskoe Property, located in the Mogocha District, Zabaikalskiy Krai of Russia.

Orsu Metals Corporation is a base and precious metals exploration and development company, with its headquarters in White Rock, BC, Canada and is listed on the TSX Venture Exchange (TSXV) under the code OSU.

This MRE was carried out for the purpose of determining the maiden tenor of the mineralisation hosted within the Sergeevskoye Project in Russia. This report is produced for Public Reporting under Canadian National Instrument (“NI”) 43-101 in Canada (NI 43-101, 2014).

This MRE was prepared in accordance with the requirements of:

• Disclosure and reporting requirements of the TSXV; • Canadian National Instrument 43-101, ‘Standards of Disclosure for Mineral Projects’, Form 43-101F1 and Companion Policy 43-101CP (NI 43-101, 2014); and • Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards (CIM, 2014).

2.2 Sergeevskoe Project

The Sergeevskoe Project is located in the Zabaikalsky Region of the Russian Federation. The property is situated 40km to the southwest of Mogocha town – the district capital with a large railway station on the Trans-Siberian Railway. The newly built Chita-Khabarovsk motorway passes within 8km to the south of the property and the distance from Chita to Sergeevskoe is 560km.

The Project sits adjacent to the historic suspended Kluchevskoye open pit which since 1901 mined the eastern parts of the same mineralised zone seen at Sergeevskoe, initially by underground means and more latterly, open pit.

As such, Sergeevskoe Project is conceived as a potential open pit, mined for gold and silver by conventional drill and blast operation, excavated by face shovel configured excavators feeding respective haul trucks. It is expected that a conventional CIL process plant with a sulphide flotation circuit to enhance gold recovery will be required. Gold bullion will be produced on site for sale into the international market.

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2.3 Independent Consultant

WAI has provided the mineral industry with specialised geological, mining, and processing expertise since 1987, initially as an independent company, but from 1999 as part of the Wardell Armstrong Group. WAI’s experience is worldwide and has been developed in the coal and metalliferous mining sector.

Our parent company is a mining engineering/environmental consultancy that services the industrial minerals sector from ten regional offices in the UK and international offices in Almaty, Kazakhstan, and Moscow, Russia. Total worldwide staff complement is now close to 500.

WAI, its directors, employees and associates neither has nor holds:

• Any rights to subscribe for shares in Orsu Metals Corporation either now or in the future; • Any vested interests in any concessions held by Orsu Metals Corporation; • Any rights to subscribe to any interests in any of the concessions held by Orsu Metals Corporation either now or in the future; • Any vested interests in either any concessions held by Orsu Metals Corporation or any adjacent concessions; or • Any right to subscribe to any interests or concessions adjacent to those held by Orsu Metals Corporation, either now or in the future.

WAI’s only financial interest is the right to charge professional fees at normal commercial rates, plus normal overhead costs, for work carried out in connection with the investigations reported here. Payment of professional fees is not dependent on the success of the Admission or linked to the value of the Company.

2.4 Source of Information

This report is based on information provided by Orsu and collected by WAI during the site visits, as well as personal knowledge of the adjacent Kluchevskoye deposit.

Although some of data viewed derives from the Soviet era, WAI has no reason to doubt the reliability and robustness of this information. Moreover, the majority of data that makes up the Mineral Resource estimate has been derived recently by the Client.

The information in this technical report is based on the following sources:

• Technical discussion with Orsu personnel on site visit; • Inspection of the Sergeevskoe Property area, including geological investigation; • Review of exploration data provided by Orsu; and

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• Additional information from public domains such as company news, presentation and reports.

Unless otherwise stated, all images and figures have been provided by Orsu.

Throughout this NI43-101 Technical Report, the term ‘reserve’ is used to denote the Russian Classification system of reserves. It should be noted that the Russian Classification system (GKZ) is not compliant with CIM, nor any other international reporting system or code, and no reliance or comparison should be made to any international reporting code when the term ‘reserve’ is used. No Mineral Reserve under CIM (2014), or Ore Reserve under the JORC Code (2012), has been defined for the Sergeevskoye Project at this stage of development.

2.5 Personal Inspection

In compliance with National Instrument 43-101 guidelines, Dr Phil Newall, BSc (ARSM), PhD (ACSM), CEng, FIMMM, Managing Director of WAI, conducted a personal inspection of the Sergeevskoe property between 2-3 November 2016, primarily covering the geology, exploration and the previous drilling programmes. A more recent inspection of the latest drilling was undertaken on site on 5-6 June 2018.

2.6 Statement of independence

WAI is an independent consulting company contracted by Orsu to carry out this MRE study. Neither WAI, nor the authors of this report, have or have had previously, any material interest in Orsu or the mineral properties in which Orsu has an interest. WAI’s relationship with Orsu is solely one of professional association between client and independent consultant.

This report is prepared in return for professional fees based upon agreed commercial rates and the payment of these fees is not contingent on the results of this report. No member or employee of WAI is, or is intended to be, a director, officer or other direct employee of Orsu.

In the preparation of this Independent Technical Report WAI has used information provided by Orsu and other experts. Orsu has verified this information making due enquiry of all material issues that are required in order to comply with NI 43-101 requirements.

2.7 Units and Currency

All units of weight and measurement in this report are metric, unless otherwise noted. Units of currency are in US dollars, unless otherwise specified. Specific abbreviations used include:

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Abbreviation Unit m Metre km Kilometre g Gramme t Tonne g/t Grammes per tonne oz Ounce % Percentage cm Centimetre °C Degrees centigrade

2.8 Limitations, Reliance, and WAI Declaration

WAI’s opinion contained herein is based on information collected throughout the course of WAI’s work, which in turn reflects various technical and economic conditions as of the effective date. Given the nature of the mining business, these conditions can change significantly over relatively short periods of time. Consequently, actual results may be significantly more or less favourable than assumed according to changes in metal prices or other variables.

This report may include technical information that requires subsequent calculations to derive sub- totals, totals and weighted averages. Such calculations inherently involve a degree of rounding, and consequently introduce a margin of error. Where these occur, WAI does not consider them to be material.

WAI is not an insider, associate, or affiliate of Orsu, nor has WAI acted as an advisor to this company or its subsidiaries or affiliates in connection with this Project. The results of the technical review by WAI are not dependent on any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings.

Except as specifically required by law, WAI does not assume any responsibility and will not accept any liability to any other person for any loss suffered by any such other person as a result of, arising out of, or in connection with this Technical Report or statements contained herein, except required by and given solely for the purpose of complying with the mandate as outlined in this Technical Report and compliance with NI 43-101. WAI has no reason to believe that any relevant additional information or material facts have been withheld by Orsu.

The authors hereby acknowledge Orsu for assistance with field review and data gathering.

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3 RELIANCE ON OTHER EXPERTS

This technical report has been prepared by WAI on behalf of Orsu Metals Corporation.

For the purposes of this report, WAI has relied on ownership information provided by Orsu Metals Corporation, and although WAI has not researched property title or mineral rights, WAI believes the asset to be secure and unencumbered.

This is supported by a title opinion document, provided to Orsu in November 2016 by Saveliev, Batanov & Partners, a Russian legal firm. This document opines on the overall validity of the licence as well as whether there were any grounds for early revocation, following the successful Auction.

The conclusions from this work were that Orsu does have secure title to the property and is in full compliance with Russian regulations.

WAI has seen this document and it is on this opinion that WAI relies in respect of Section 4.2 of this report.

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4 PROPERTY DESCRIPTION AND LOCATION

4.1 Location

The Sergeevskoe Property is located in the Zabaikalsky Region in the Russian Federation (Figure 4.1). The property is situated 40km to the southwest of Mogocha town – the district capital with a large railway station on the Trans-Siberian Railway. The newly built Chita-Khaborovsk motorway passes within 8km to the south of the property. The distance from Chita to Sergeevskoe is 560km.

Figure 4.1: Location Map of the Sergeevskoe Property

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4.2 Mineral Tenure

The Sergeevskoe license area occupies 7.6km2. The LLC SC "Alexandrovskoe", a subsidiary of Sibzoloto Investments Limited (“Sibzoloto”), a Cyprus registered company and the sole owner of LLC GK Alexandrovskoe, acquired the license at a public auction from the Russian Government that took place on 22 November 2013. The license was issued on 31 December 2013 and it is valid until 31 December 2031. In 2016, the license was actualised by the Ministry of Natural Resources of the Russian Federation. This confirmed the validity of the license.

Orsu acquired privately owned Sibzoloto on 18 May 2017 in a share and cash transaction. Orsu currently owns 90% share in Sibzolot. The Sellers became significant shareholders of Orsu and joined the Executive Team and Board.

The Sergeevskoe license was granted by Zabaikalnedra, a local administrative branch of Rosnedra, a Federal Agency responsible for issuing such licenses. The license is not listed as a strategic asset by the Russian Government. There is no previous ownership in relation to the territory or its part covered by the Sergeevskoe license. The surface rights belong to the Russian Government, which granted a license to LLC SC "Alexandrovskoe". The license holder obtained all necessary permits, including a consent from the Forest Protection Authorities, to conduct exploration works. This permit allows to undertake trenching and drilling works.

The license was issued for geological study, exploration and mining and has no limitation to the depth of mining. In addition, there is no obligation on financial expenditure at the license, although the license holder has to achieve certain milestones:

• Completion of resource assessment to Russian-style “C2 and P1” standards by 31.12.2018 (this deadline was rescheduled to Q1 2020); • Completion of resource assessment to Russian-style “C1 and C2” standards by 31.12.2022; • Construction to start by 31.12.2024; and • Production to start by 31.12.2025.

During geological study, the license holder must pay 208 Rubles per km2 per annum. This will increase to 10,115 Rubles per km2 during the detailed exploration stage. Taxes during mining will be applied in accordance with the typical practices in the Russian Federation.

The license holder must obey all environmental regulations of the Russian Government, such as water and forest protection, contamination of the ground. The license holder must conduct background environmental monitoring.

To comply, in late 2016, GK Aleksandrovskoe contracted a Chita-based Laboratory of Environmental Problems (“LEP”) to undertake a baseline study, which involved assessment of the environmental situation prior to the new exploration works. As part of the programme, chemical, radiometric and

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A final report from LEP was received in mid-February 2017. Its main conclusions are as follows:

• Surface waters are insignificantly contaminated due to the technogenic impact of the historical operations. Their chemical and physical properties are similar to natural concentrations; • Some soil and stream bed samples contain elevated concentrations of copper, zinc, arsenic and sulphur due to the influence of historical mining works.

No other permits are necessary to conduct exploration works at the Sergeevskoe license area.

A plan view of the concession area is shown in Figure 4.2 and coordinates are presented in Table 4.1.

Klyuchevskoe Open Pit

Figure 4.2: Sergeevskoe Concession Area (Blue outline)

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Table 4.1: Sergeevskoe Concession Area Coordinates No Easting Northing 1 20659841 5936878 2 20659899 5936261 3 20659945 5935860 4 20659141 5936297 5 20658758 5936748 6 20658475 5936445 7 20657809 5936734 8 20657107 5936765 9 20656565 5937274 10 20656033 5937440 11 20654659 5937296 12 20654655 5937565 13 20656414 5938357 14 20656841 5938322 15 20657961 5937934 16 20658415 5937276 17 20658572 5937297 18 20658123 5937930 19 20658735 5937918 20 20658729 5938002 21 20657926 5938064 22 20656712 5938491 23 20657608 5938888 24 20660062 5938467

WAI notes that the concession coordinates are presented in the Pulkovo 1942 GK Zone 20 coordinates system.

In summary, WAI has seen the license for the Sergeevskoe area and can confirm the license number, coordinates and expiry date. In addition, WAI has also seen legal opinion on the property and therefore can conclude that all documentation is in place for Orsu to have legal tenure over the property.

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility and Infrastructure

The Sergeevskoe property is accessed via a recently constructed M58 road from Chita (560km) which runs approximately 8km south of the site (Figure 5.1); or alternatively from the town of Mogocha (36km) which has regular train services to Chita, Moscow and other major Russian cities.

The regional transport infrastructure includes the Trans-Siberian and BAM rail-roads which provide links to the Far East and Central Russia. The region also has direct rail connections with China and Mongolia.

All principal cities and towns are connected by paved and all-season gravel roads. There is an airport in Chita with regular flights to Moscow, other major Russian cities and some cities in China.

Mogocha Sergeevskoe

Figure 5.1: Route Map from Davenda to Chita Airport (579km via M58/AH30) ref. Googlemaps

5.2 Climate

The climatic conditions in the Zabaikalsky Region are extreme continental, exhibiting long cold winters and short cool summers. Historical weather observation records are available from a weather station situated in Mogocha, along with a weather station installed at site during the summer of 2013.

The coldest recorded annual month is January with an average temperature of -28°C; the warmest annual average month is July with an average temperature of +17°C. The overall average temperature of the region is -4.8°C.

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The recorded data indicates that the region is subject to relatively low snowfall during the winter period, with the maximum annual precipitation occurring in July (430mm), with variations ranging between 269.4mm (1954) and 691.5mm (1934). Precipitation in the form of snowfall occurs on average between the end of October and March, giving an average snow-cover thickness of between 0.15m and 0.20m. The snow-cover typically melts between March and April.

The location of the project is within a transitional zone of permafrost and seasonal ground-frost. The maximum depth of ground permafrost is recorded to be between 70m and 120m below ground level.

However, notwithstanding the harsh climate, exploration and mining operations are possible all year round.

5.3 Local Resources and Infrastructure

The property is located between the Davenda and Kluchevskiy villages. Davenda has a population of 978 and is located at the western boundary of the Sergeevskoe license area and approximately 4km west of the main area of exploration activity. Kluchevskiy has a population of 1,200, the eastern boundary of the property is approximately 1.5km west of the village (Photo 5.1). The roads to the camp from the villages are graded dirt roads.

Photo 5.1: Kluchevskiy Village with Open Pit in Background (WAI)

The main industries in the region are alluvial and hard rock gold mining, with forestry enterprises and railway and motorway maintenance. The populations of Kluchevskiy village and the nearby settlement of Davenda are in part populated by former employees of closed and operating mining enterprises ZT61-1731/MM1301 Final V2.0 Page 16 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION and provide a pool of skilled labour. The main power grid is available through 110kV transmission lines.

Aggregate, dimension stone, construction sand and refractory clays are all available locally.

5.4 Physiography

The region has an elevation of 900-1,200m above sea level (mASL), in the drainage basin of the River. The project area comprises moderate relief hills with approximate peaks of 1,200mASL and river valleys at 900mASL.

Vegetation comprises coniferous and broadleaf forest, typical of the boreal zone. Areas of permafrost in the area are discontinuous and can extend to depths of 120m below the surface. It is reported that permafrost is not present in the area of the current open pit at Kluchevskoye, but is in some areas of the waste dumps. Seasonal freezing within the soil profile is reported to reach depths of 2.3m to 3.6m.

In terms of the license area to sustain the infrastructure required for mining, although the project is at a very early stage of exploration, the author believes there will be sufficient space for plant, tailings and waste dumps should a viable operation be developed.

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6 HISTORY

6.1 Introduction

Much of the history of the Sergeevskoe licence area is intimately related to the exploration and development of the adjacent Kluchevskoye deposit as many of the mineralised occurrences at Sergeevskoe are thought to be continuations or off-sets from the Kluchevskoye ore zones, although the information is not necessarily indicative of the mineralisation on the property that is the subject of this technical report.

6.2 Kluchevskoye

In the second half of the 19th century alluvial gold mining operations commenced within the Mogocha region, within the Zheltuga River and its tributaries. In 1860, alluvial gold was mined from the Bolshaya Kudecha River, to the south of the project area. In 1901 a joint Anglo-Russian company, the Gold Company Ltd commenced hardrock mining of the Kluchevskoye deposit by an underground system of drives, cross-cuts and rises on the 848mASL and 818mASL. The main targets of this mining were the high grade quartz-tourmaline veins with the ore being processed by mercury amalgamation. The operational mine life between 1901 and 1910 produced approximately 688kg of gold from oxide grading 13 to 30g/t of gold.

Further exploration commenced in the 1930s and continued through to 1941, and it was during this period that the first formal reserve statements were produced estimating to contain 8.3Mt of ore grading 5.15g/t to contain 42.8 tonnes of gold in 1934. Underground mining operations restarted in 1936 and continued until 1952 (Photo 6.1) using shrink stoping and “Glory Hole” mining to extract pipe-shaped high-grade shoots. Between 1936 and 1952 a reported 5,855kg of gold (grading 7.5g/t to 9.8g/t of gold) was produced by mercury amalgamation, with the plant having a throughput of 150t/day. In 1939, the Kluchevskoye reserves were re-estimated to contain 15.477Mt with 79 tonnes of gold.

Underground exploration was advanced between 1947 and 1951 with the development and sampling on the 888mASL, 848mASL, 830mASL and 780mASL levels. These exploration activities resulted in five separate levels of underground sampling (including those developed in 1901) which were sampled and estimated for both vein-type and stockwork-type mineralisation. To complement the sampling, underground drilling was completed, resulting in a revised reserve estimate in 1955. The 1947-51 exploration works culminated in new estimation of reserves, which recognized the deposit as one of the largest in the Soviet Union. However, the ongoing mining results did not reconcile well against the exploration works. This led to revision works in 1952-55 under supervision of NIGRIzoloto. These works recognized the problems with quality of the assays in the local laboratory and new reserve calculation was not approved. However, it was demonstrated that Kluchevskoye deposit can be mined as an open pit.

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Photo 6.1: Adit Portal, Kluchevskoye

By 1955 the open pit mining had exhausted the oxide material and reached the sulphide reserves. During the initial operation of the open pit, the ore was processed into a sulphide concentrate at a new flotation plant, which was decommissioned in 2002. The derelict building shell remains on site. It is reported that when operational, these processing facilities had a capacity of 530,000tpa of ore. The concentrate produced was shipped to the Ural copper smelters for further processing and gold recovery.

Exploration work in 1970 included underground development on the 730mASL and 630mASL levels. A new reserve in 1977 formed the basis for the more recent open pit gold mining.

Exploitation at the Kluchevskoye deposit further spanned a period of 25 years, from 1977 to 2002. During this period approximately 8.9Mt or ore was milled at an average grade of 1.68g/t Au. In 2003 production ceased due to increased processing and transportation costs against the background of lower gold prices. The third stage of the open pit design projected in 1982 to reach an elevation of 680mASL (depth of 250m below surface) was not completed.

Despite suspension of mining, as of 01 December 2009, the Russian style С1+С2 reserves of the Kluchevskoye deposit contained 36.9Mt grading 2.017g/t of gold (at a cut-off grade of 0.7g/t of gold) with 74.4 tonnes of gold.

6.3 Sergeevskoe

6.3.1 General

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Historical exploration works were conducted in the 1950-60s attempting to test the western extension of the Kluchevskoye orebodies. They consisted of geological mapping, geophysical surveys, exploration trenching (>16,000m) and drilling (8,500m). The exploration works were conducted by the geological party affiliated to the mining enterprise that operated the nearby Kluchevskoye gold deposit. Between 1975 and 1984, geophysical and geochemical studies were conducted by geologists from Lvov University (present day Ukraine). However, these exploration activities were not followed up by trenching or drilling.

Table 6.1 shows details of the historical exploration activities.

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Table 6.1: Historical Exploration Activities Year Project and work stage Basic operations Unit Scope 1960 Geological surveying 1:200,000 Survey km2 8 1962 Geological surveying 1:50,000 Survey km2 8 1966- Prospecting works Geophysical operations: 1978 MR 1:10 000 km2 8 Resistivity method 1:10,000 km2 8 IP 1:10,000 km2 2.3 Lithochemical survey 1:10,000 LM 80 Analytical works sample 4,000 1951- Project for geophysical operations Core drilling LM 400 1954 1:10,000 Davenda exploration crew Driving 2 pits (40.8 LM) m3 40.8 Roadway driving (38 m) m3 152 Coring acquisition samples 80 Trench sampling LM 52 Analytical operations samples 130 1953- Project for geophysical operations Trenching m3 2,650 1955 1:10,000, Davenda exploration crew Core drilling (underground) LM 240 Tunneling (195m) m3 780 Cross cutting (38m) m3 152 Trench sampling LM 1,001 Coring acquisition samples 100 Chemical analytical operations samples 1,101 1952- Project for geological exploration, Trenching m3 45,000 1955 Davenda exploration crew Core drilling LM 6,100 Driving 2 adits (305m) m3 1,120 Shaft sinking (50m) m3 380 Driving 5 pits (120 m) LM 120 Trench sampling samples 650 Coring acquisition samples 370 Chemical analytical operations samples 1,020 1961- Project for verification of Trenching m3 1,500 1962 lithogeochemical anomalies by ChSU Trench sampling LM 29 Eastern Expedition Chemical analytical operations samples 29 1963- Project for geological exploration, Trenches m3 26,800 1967 Kluchi exploration crew Core drilling LM 2,100 Trench sampling LM 530 Coring acquisition samples 80 Chemical analytical operations samples 610 1972 Project for geological exploration, Trenches m3 3,990 Kluchi exploration crew Trench sampling LM 532 Chemical analytical operations samples 532 1975 - Lvov University (present day Ukraine) Geophysical and geochemical 1984 studies

Due to the very historical nature of the data described above, it is difficult to read too much into the data other than as preliminary target delineation work. Nevertheless, based on historical works, LLC SC “Alexandrovskoe” estimated Russian-style potential (“P”) resources in July 2016 prior to involvement of Orsu at Sergeevskoe. The Russian style P1 to P3 categories estimated a total of 29.7Mt of mineralisation in several prospects within the Sergeevskoe license area with a total of 59.31t

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(approximately 1.91Moz) of gold to a depth of 100m. Such P classification (Prognostic) resources are not compliant to NI 43-101 standards.

Although Sergeevskoe can be treated as a brownfield site, the most recent historical works included only soil-geochemistry and sampling at 1:10,000 scale as well as different ground and airborne geophysical survey methods resulting in the delineation of a number of gold, copper and molybdenum anomalous areas which were not tested by drilling after 1967.

From these works, a number of occurrences were identified including Zone 23, Kozie, Karamaevskoe, Vodorazdelnoe, Peak Kluchi, Sergeeva, Severnoe and Kladbischenskoe.

The prospecting/exploration activities at the occurrences included surface trenching (Photo 6.2), restricted amounts of drilling and underground developments (shallow shafts (Photo 6.3) and adits with cross-cuts). Predominately the exploration activities were between 1950s-1967.

Photo 6.2: Trench K996, Zone 23, from the Soviet Era in November 2016 (WAI)

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Photo 6.3: Shaft 28 at Kozie in November 2016 (WAI)

In summary, the exploration activities included >8,500m of historical drilling to a maximum depth of 300m, but more typically 50-70m, with grades similar to those historically exploited at Kluchevskoye immediately to the east, although the information is not necessarily indicative of the mineralisation on the property that is the subject of this technical report.

Importantly, the majority of the original trenches, drillholes and shafts/adits can be located at surface, although as most are around 50 years old, the absolute location was not always completely accurate.

An example of the sample records for Hole 197 at Karamaevskoe, drilled in 1967, can be seen in Figure 6.1 whilst a snap shot of the composite sampling plan is shown in Figure 6.2.

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Figure 6.1: Typical Drilling Passport from Soviet Era (Orsu)

Figure 6.2: Composite Geological/Sampling Map Over Zone 23 (Orsu)

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6.4 Historical Prospects

6.4.1 Kozie

A gold anomaly (at +0.025g/t Au level) was detected on the Kozie prospect based on soil geochemistry sampling, whilst geophysical SP (up to 150mV) and IP (up to 7%) anomalies were also recorded. As a result, the eastern part of the Kozie area was explored by trenches and two shallow shafts (No 28 and 29 excavated in 1951-54) which had depths of 15.8 and 25.6m respectively.

The shallow shafts were sunk along a quartz-tourmaline vein which demonstrated high gold grades (up to 19.8g/t Au). Three drives were developed out from the shafts with a cumulative length of 38m (10m, 10m and 18m). Sampling showed irregular gold distribution within the vein and wallrock, with grades varying from 0.1g/t Au to 30.0g/t Au for 1m sampling intervals.

Four inclined holes (No 139, 140, 141 and 142) were drilled to trace the vein. The depth of the holes was from 50 to 100m. All holes intersected the vein and returned gold grades varying from 0.4g/t to 3.8g/t Au.

In general gold grades in trenches and boreholes were from 0.1 to 1.0g/t Au with some isolated intervals which demonstrated gold grades from 3.8g/t Au to 8.67g/t Au. Again, sampling was carried out selectively focusing mainly on the quartz-tourmaline veins ignoring wall-rock intervals. The samples were assayed at the plant laboratory, which, as mentioned above, had quality control issues.

The northwest trending fault zone was also trenched in 1965. The trenches crossed a few narrow zones with stringer-disseminated mineralisation, but these could not be linked together due to the sparse trenching grid. Typical grade values were from 0.1g/t to 2.0 - 3.0g/t Au.

A few trenches and two boreholes (C-237 and C-238) were drilled in the western part of the Kozie Occurrence in 1965. They intersected a few quartz-tourmaline veins which were accompanied by zones of intensively altered (tourmalinisation and pyritisation) explosive breccia. Sampling of drill core and trenches returned lower gold grades from 0.1g/t to 0.4-0.6g/t Au. The very few higher grade gold intervals (2 - 3g/t Au) could not be linked together. The best intersection was one interval of 4.3m thickness with an average gold grade of 5.0g/t in a trench.

In summary, as with all the historical data from the Sergeevskoe Project, the age of the information (in many cases more than 50 years), coupled with the uncertainty of both the exploratory techniques used (poor-quality non-diamond drilling) as well as the quality of the assays returned, means that at best the Kozie area was identified as a major target for future exploration. This is due to the presence of similar mineralisation and structures that have been identified and mined in the Kluchevskoye open pit.

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6.4.2 Zone 23 and Adit 5

The 1963-65 sampling data for Zone 23 and Adit 5 has been captured by Orsu and is presented on the sampling plans of the occurrence as shown in Figure 6.3. ±

Figure 6.3: Sampling Plan at Zone 23 and Adit 5 Occurrences (WAI)

Results from the historical trenching and drilling, as well as geophysics (self-potential electric survey method), showed that Zone 23 appears fragmentary and separated by negative anomalies which correspond to the sections of hydrothermally altered and sulphidised rock. The geophysical data allowed Zone 23 to be traced for 600m in a northwest direction where some individual soil geochemical anomalies with gold grades from 1g/t Au and above were noted.

6.4.3 Peak Kluchi

Historically, Peak Kluchi has only attracted minimum exploration. Based on the 1963 trenching data, there were 6 separate sub-zones which have strike lengths from 100m to 305m and thicknesses from 2.58m to 14.0m and with average gold grades from 1.0g/t Au to 3.45g/t Au. Three holes were drilled. The 2017 works by Orsu revealed that two of the historic holes were drilled very obliquely to the strike (almost along the strike) of mineralised quartz-sulphide veins and therefore failed to intercept mineralised intervals.

6.4.4 Karamaevskoe Occurrence

The Davenda Exploration Team performed prospecting works in this area in 1952-1955 aiming to identify new resources to substitute the depleted reserves of the then operating Davenda quartz-

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As a result of this work, preliminary indications were that the mineralisation is complex and has a multi-stage sequence.

Most of the exploration activity was focused on exploring for quartz-molybdenite veins; part of them were also sampled for gold. Some of the developments were sampled by 5m long interval or by combined/group samples. This sampling method for gold is not able to give a realistic impression of the intensity, or otherwise, of the gold mineralisation.

In 1963-1967, the Kluchevskaya Exploration Team carried out additional exploration (mainly in the southwestern part of the area at the north-western continuation of the small nearby Alekseevskoe deposit) where work focused on the gold mineralisation. Some old trenches were cleaned up as well as new trenches developed. In addition, 10 boreholes from 50m to 150m depth were drilled at Karamaevskoe.

The gold grade varied from 0.2g/t to 117.1g/t Au. The sampling was focused on the vein itself leaving intra-vein altered rock unsampled. Thus, the high-grade sections were detected as isolate intervals in the trenches. The average gold grade for the whole zone is from 0.2g/t to 0.8g/t Au. Similar results were received from borehole samples.

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7 GEOLOGICAL SETTING AND MINERALISATION

7.1 Regional Geology

The Sergeevskoe licence area is located within the Mogocha Gold District, within a major tectonic Proterozoic to Mesozoic fold belt of the southwestern margin of the Aldan-Stanovoi Shield of the Siberian Craton. The region predominantly comprises various granites surrounded by metamorphic rocks. Plutons from the Middle Palaeozoic (Olekma Complex), Permian (Amanan Complex) to Jurassic (Amudzhikan Complex) ages intrude the metamorphic rocks and host a number of gold and molybdenum deposits and occurrences.

Lithologies include biotitic granites, granodiorites, diorites, quartz-diorites and granitic-porphyries, with dyke swarms of late northwest-trending diorite and so-called hybrid porphyries, as well as rare felsic dykes. Some later lamprophyre dykes have intruded the granitoid and granitic rock sequences, as illustrated in Figure 7.1.

The granitoid complexes are located adjacent to a marked flexure (dilational jog) in the regional east- west trending “Latitudinal (Shirotnyi) Fault”, a segment of the regional Mogocha-Bushuley Fault Zone, marking the contact between Proterozoic and Palaeozoic to Mesozoic granitoids.

The deposit cluster in the area is hosted by the Davenda granite massif which has a strike length in excess of 50km and a width of 2 - 3km. Gold and molybdenum mineralisation is related with the porphyry intrusions of Amudzhikan Complex and associated with the zones of its north-west endocontact and exocontact with the Davenda massif.

There are seven deposits and several other occurrences of gold, molybdenum or copper mineralisation, the most important being the Kluchevskoye and Alexandrovskoye gold deposits, and the mined out Davenda molybdenum deposit.

Intrusive formations of the Amudzhikan Complex can be subdivided into the following three phases:

• Phase I (qμЈ3аs) – quartz monzonites, quartz diorites, quartz monzonite-porphyry, diorites, subalkalic quartz diorites; • Phase II (γδπ2Ј3 аs) – granodiorite-porphyry and diorite porphyry, granite-porphyry, porphyritic granodiorite, quartz syenite, granites; and • Phase III (γ3Ј3аs) – magnophyric granite, granodiorite, granite-porphyry, granodiorite- porphyry, quartz syenite-porphyry.

The final dyke series of the complex is quite diverse. It is represented by granite-porphyry, microdiorite (crowded) porphyry, quartz diorite porphyry, microsyenite (hybrid) porphyry, sub-alkalic leucocratic granite-porphyry, and orthoclasite.

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Legend

Figure 7.1: Regional Geology, Kluchevskoye District (Orsu)

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Hybrid porphyry can be found only in the form of dykes and, similar to granite-porphyry, they are associated to the Davenda massif, although their area of distribution is much broader. They are peculiar rocks, composition of their impregnations (quartz, potassic feldspar) is inherent for acidic mineralisation and composition of ground mass (glass, plagioclase, protobase) is inherent to the basic mineralisation.

Gold mineralisation in the zones of sericitisation, tourmalinisation and silicification is associated with the contacts of late dykes – microdiorite (crowded) porphyry and sometimes microsyenite (hybrid) porphyry, whereas lamprophyre dykes and their contacts are completely barren.

7.2 Sergeevskoe Property

The Sergeevskoe property (Figure 7.2) is part of Davenda-Kluchevskoe metallogenic zone. Proterozoic granitoid occupies the northern part of the area. The intrusive rock is represented by biotite granite, granite-diorite and migmatite. More than 60% of the Sergeevskoe area is occupied by Permian granite of the Davenda intrusion of the Amanan Complex. The contact of the Davenda intrusion and Proterozoic granitoid has a northeast strike. Late Jurassic subvolcanic intrusions of the Amudzikan Complex form a 1 x 2km northeast-trending cluster, which is represented by biotite-hornblende diorite, diorite, quartz diorite, followed by magmatic breccia. All rocks are intruded by dykes of the Amudzhikan Complex.

The largest tectonic structure in the area is the Kluchi-Davenda tectonic zone. It is represented by sequenced bands of rock which in various degrees are crushed, cataclasised, carbonised, ocherised, and in some places, tourmalinised and sulphidised. The eastern extent of Kluchi-Davenda fault is the Glavnyi (Main) or Shirotnyi west-east fault. This fault is one of the main controlling structures of the Kluchevskoe gold deposit mineralisation.

In addition, the Alekseevsko-Glubokinskiy east-west trending fault is located to the north of the Kluchi- Davenda fault. Both these large regional faults are accompanied by numerous splay (strike-slip-related duplex) structures which have predominately northwest strike for the Kluchi-Davenda fault and northeast strike for the Alekseevsko-Glubokinskiy fault (Figure 7.3).

Intensively fractured rocks occur along the northwest contact of the Davenda intusion and Proterozoic granitoid.

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Figure 7.2: Geological Map of Concession Area (Orsu)

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Sergeevskoe Licence

Figure 7.3: Main Ore Controlling Faults, Sergeevskoe (Orsu)

7.3 Mineral Occurrences

7.3.1 Introduction

Historical work at Sergeevskoe identified more than 10 gold occurrences, the locations of which are shown on Figure 7.4.

A description of the individual occurrences is given in the following subsections.

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Figure 7.4: Main Mineral Occurrences within the Sergeevskoe License (Orsu)

7.3.2 Kozie Occurrence

The Kozie occurrence (0.208km2) is located on the eastern slope of Peak Kluchi hill, some 200m to the northwest from the western border of the Kluchevskoe gold deposit. The predominant host rock is granodiorite porphyry of sub-volcanic type with varying amounts of explosive breccia.

Medium-grained granite of the Amanan Complex occupies the eastern part of the occurrence. In some places the contact between granodiorite porphyry and granite is along tectonic structures with steep dips to the west. The younger formation is represented by dykes of hybrid porphyry or diorite porphyry composition.

There are two main faults in the area which may be the boundaries of the occurrence. One of them has a strike of 330 - 340° with a steep dip to the southwest and is presumably a feather structure off the east-west trending Kluchi-Davenda fault, which is considered to be a major ore controlling structure.

The other major tectonic structures are represented by a series of sub-parallel faults/fractures with azimuth strike of 030 - 040° and dip to the northwest at 60 - 85°. They cross-cut and offset the west- northwest-trending faults.

The mineralized system in the area is related to both faults, although the predominant fracturing has a northwest strike.

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Most of the dykes and quartz-tourmaline veins are located in fractures with a northwest strike. Vein minerals are mainly represented by quartz, tourmaline and disseminated pyrite. Chalcopyrite, arsenopyrite and galena are not common within the veins.

Veins are accompanied by zones of altered rock (tourmalinisation and pyritisation); the width of these zones is from a few centimetres to individual metres. Zones with stringer porphyry mineralisation are also present and the thickness of these zones can reach tens of metres.

7.3.3 Zone 23 and Adit No5 Occurrences

The Zone 23 Occurrence (0.316km2) is located on the southeastern slope of Kluchi Hill in the footwall of the main Kluchi-Davenda fault. The occurrence is hosted by medium-grained biotite-granite of the Davenda Complex which is intruded by a number of porphyritic diorite and hybrid porphyry dykes.

The occurrence can be traced for a distance of 900m having a width of 100 - 150m. The southeastern part of the zone, recognized as Adit No5, has a strike of 300 - 320° to 0 - 30o. Zone 23 (senso stricto) of east-west strike is adjacent to the Shirotnyi fault.

In broad terms, the zone is comprised of quartz-tourmaline-sulphide and tourmaline veins which belong to a gold-quartz-pyrite and gold-quartz-tourmaline association. Veins have a variable strike to the northwest, north to northeast and west-east.

The veins in the western part of the occurrence have significant strike lengths of 100 - 150m and thicknesses from tens of centimetres to a few metres. Some veins are branching, merging with each other, forming splay structures, or pinching out both in strike and dip direction.

The veins in the eastern part (Adit 5 area) are relatively short in strike (up to 200m), although having significant thickness (1 - 10m).

In addition, all veins are accompanied by wide zones of intense tourmalinisation which often makes the definition of the vein thickness itself difficult. Zones of intense tourmalinisation often have thicknesses of 10 - 15m, or greater.

The distance between individual veins within the zone is variable. There is a dense system of predominantly narrow sub-parallel stringers, the distance between stringers is tens of centimetres. The distance between bigger veins varies from 1-2m to 20-15m. The intra vein space comprises tourmalinised, in some places silicified, intensively bleached and in different degrees pyritised granite.

There is permanent presence of disseminated and veinlet pyrite within both veins and intervein space. Apart from the pyrite, some chalcopyrite, arsenopyrite and tetrahedrite also occur within zones.

Gold grades within the zone vary from 0.1g/t to 22.6g/t Au. Within this, sub-zones have thicknesses from 2 to 11.6m and strike lengths up to 627m with an average grade of more than 1g/t Au.

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In summary, the mineralisation type and alteration seen at Zone 23 and Adit No 5 is similar to the Kluchevskoye deposit, although the information is not necessarily indicative of the mineralisation on the property that is the subject of the technical report. Moreover, the occurrence already has revealed encouraging sampling results by Orsu. Structurally, it does look as though the occurrence is a direct western extension of the Kluchevskoye gold deposit along the Glavnyi Shirotnyi Fault.

7.3.4 Peak Kluchi Occurrence

The Peak Kluchi Occurrence (0.105km2) occupies the southwestern slope and the peak area of Kluchi hill. There is a distinct step up in the slope gradient around the peak area.

The occurrence comprises a granodiorite of porphyry appearance with large bodies of explosive breccia. A large 2 x 1km body of granodiorite porphyry was mapped on the top of the peak. Dykes of hybrid porphyry are widespread having a strike of 300 - 320° with steep dips to the northeast.

A fault zone of northeast strike with a dip to the northwest at 70 - 85° crosses the area as well as a number of higher order northwest striking faults.

In general, the occurrence represents a few zones of intensively tourmalinised, sometimes oxidised, kaolinised and in some places silicified, sub-volcanic granodiorite porphyry with impregnations of pyrite. There are numerous quartz-tourmaline, tourmaline, quartz-pyrite, narrow pyrite (from a few millimetres to 1cm) and discontinuous stringers in these zones. In addition, there are a few continuous quartz-tourmaline veins which have a northwest strike (300 - 320°) and dip to the northeast at 80 - 85°.

The structure of these zones is similar and the differences are related only to shape and size. In general, there are bands of hydrothermally altered rock, affected by faulting and minor intrusions, which presents a package of variably altered rocks. However, on the whole these individual zones form the single mineralised zone with a thickness of 100 - 120m.

The thickness of individual sub-zones varies from 5 - 10m to 60m. The gold grade in sub-zones and veins varies from traces to 13.6g/t Au.

In summary, the Peak Kluchi occurrence has an intermediate position between Zone 23 and Kozie occurrences. Although historically only limited sampling has taken place, the structural position of the occurrence is analogous to a similar intrusion-related zone to the northwest of main mineralisation at Kluchevskoye. Under this hypothesis, Peak Kluchi could be a northwest off-shoot extension of Zone 23, although its relation to the Glavnyi Shirotnyi Fault is unclear.

7.3.5 Karamaevskoe Occurrence

The occurrence (0.855km2) is located in the watershed of the upper stream of the Glubokiy and Alekseevskiy springs and is considered to have potential for molybdenum mineralisation.

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Mineralisation is represented by veins and veinlets of complex composition due to multi-phase fluid deposition in the same fractures.

Wallrock alteration is related to silicification with sulphide dissemination and sericitisation with an average thickness of 0.7m. Quartz-molybdenite (quartz-molybdenite association) veins and veinlets are the most abundant in the area. The mineralisation of later quartz-polysulphide and quartz-barite- carbonate association are superimposed onto these veins.

The ore bodies comprise a complex mineral association including quartz, pyrite, chalcopyrite, tennantite-tetrahedrite, galena and sphalerite.

More than 40 veins are known at the Karamaevskoe occurrence. The largest strike length is seen by veins, historically labelled as 8, 5, 38, 21, 22, 1, 19, 36 and 61. Most of these veins have lengths from 50m to 100 - 150m. Two veins were traced for 300m and 500m. The vein thickness varies from centimetres to a few metres.

The bulk of the veins are located within fractures trending in a northwesterly direction (310 - 320°) dipping to the northeast at 75 - 85°. Some veins have northwest or east-west strike. Almost all veins are related to the zone of intensive fracturing striking in a northwest direction.

This zone represents a wide section of granite intensively crossed by veins, dykes of late lamprophyre and dislocated by tectonic structures which have different thickness and strike.

Further work in 1963 - 1967 demonstrated that the mineralised vein zone was uncovered and is represented by separate veins and veinlets. The zone width including wallrock alteration is from 0.15m to 4m with an average thickness of 0.51m. The vein minerals are represented by quartz, tourmaline, pyrite, molybdenite, chalcopyrite and tetrahedrite.

The gold grade in veins varied from 0.2g/t to 117.1g/t Au, whilst the average gold grade for the whole zone was from 0.2g/t to 0.8g/t Au. Similar results were received from borehole samples.

In summary, historically only one vein structure (Vein 7 - Vein 38) out of nine large veins was explored and sampled for gold. Although the actual vein grade results were encouraging, as stand-alone targets, these are of little interest without significant mineralised intra-vein host rocks.

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7.3.6 Other Occurrences

7.3.6.1 Sergeeva Occurrence

The Sergeeva Occurrence (0.271km2) is located in the area of Sergeeva Hill and comprises of mineralised zones No22 and No29 and a number of veins and veinlet-disseminated mineralisation located in between the zones.

The area is comprised of rocks of the Davenda Complex: medium- and fine-grained aplite-like granite intruded by porphyritic granodiorite of sub-volcanic profile with large bodies of explosive breccia. The porphyritic granodiorite was mapped in the southern part of the area in the footwall of the Glavny fault. All these formations are crossed by dykes of different composition: porphyritic granodiorite, diorite porphyry and dykes of the late lamprophyre.

The faults are represented by a fragment of the Glavny fault which is accompanied by east-west and northwest striking faults of higher order. Most of these faults control quartz-tourmaline veins, which are located in east-west (270 - 290°) and northwest (300 - 310°) trending fractures with steep dips to the north and northeast.

The key element of the occurrence is the presence of a few sub-parallel zones of intensively tourmalinised and pyritised rock which often contains quartz-tourmaline veins and veinlets. The thickness of such zones is varying from a few metres to 20m. The thickness of the quartz-tourmaline veins is inconsistent and is varying from tens of centimetres to a few metres and having a strike length up to 150 - 200m.

There are sharp changes in vein thickness over short distances as well as branching and re-joining, and breccia texture is often observed.

In general, these veins are characteristic of the quartz-tourmaline-pyrite mineral association which is widespread in the southern part of the Kluchevskoye ore field. They are separated into two mineralised zones of 100 - 120m thickness.

Gold grade within veins varies from trace to 8.1g/t Au. Orsu collected several grab samples and run only one trench in this area. Follow-up works are necessary to assess the mineral potential of this occurrence.

7.3.6.2 Severnoe Occurrence

The Severnoe occurrence (0.322km2) is located on the right slope of the Glubokiy stream valley, some 1.8km to the east of the Zapadnoe deposit which occurs to the north of the Sergeevskoe license area.

The occurrence is related to a zone of intensive fracturing of northeast strike (050 - 060°). This zone is developed within Proterozoic granitoid and controlled by dykes of the Amanan Complex. The zone is apparently a splay structure of the Alekseevsko-Glubokinskiy fault. ZT61-1731/MM1301 Final V2.0 Page 37 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

The rock is intensively limonitised and in some areas cataclasised and silicified. The zone width is 124m, the zone strike is to the northeast (080 - 085°) with dipping steeply (80 - 85°) to the northwest.

Historical work intersected a 1.2m wide mineralised zone with an average gold grade of 2.0g/t Au within fractured rock on the contact with a quartz porphyry dyke. The mineralised zone is represented by silicified, intensively limonitised and kaolinised rock with numerous quartz-sulphide stringers. The zone width is increased up to 3m in the south, whilst the average grade is 3.8g/t Au with a maximum grade of 9.2g/t Au over 1m thickness.

The zone width to the northeast increases to 6.5m, although the gold grade does not exceed 0.1g/t. The total strike length of the zone is 200m. Field inspection of this occurrence by Orsu in one of the historical trenches did not locate visually significant mineralization.

Apart from this mineralised zone, other areas of veinlet-disseminated mineralisation within sections of fractured rock were identified. The rock alteration here is represented by K-feldspar alteration, silicification and tourmalinisation. Quartz-tourmaline veins and veinlets as well as lens-like veins of milk-white and grey quartz occur within the zone.

The veinlet-disseminated mineralisation is represented by pyrite, chalcopyrite, arsenopyrite, and in some cases by molybdenite, bismuthine and oxidised forms of these minerals.

In general, the geological structure and structural position of the Severnoe occurrence is similar to the structures of the nearby Zapadnoe deposit. There is an impression that they are related en echelon- like structures.

7.3.6.3 Vodorazdelnoe Occurrence

The Vodorazdelnoe occurrence (1.111km2) is located on the watershed of the rivers Glybokaya and Malaya Borovaya some 1.4km to the southeast of the Zapadnoe deposit and 2km west of Kozie.

The occurrence occupies the apical part of the Daveda granitoid massif which is crossed by dykes of porphyritic granodiorite and quartz-diorite, as well as dykes of late lamprophyre.

The mineralized structures have a northwest and east-west strike.

Numerous quartz-tourmaline-pyrite veins with molybdenite were inserted by trenching. The host rock has been subjected to silicification, K-feldspar alteration and pyritisation. Thickness of the veins varies from 0.1m to 0.3m, whilst the strike is 310 - 315°, dipping at 60 - 70° to the southwest.

Some 800m to the west of the intersected veins, one trench uncovered a zone in the granite which is silicified, K-feldspar altered and pyritised. Based on historical results, the zone width is 8m, with gold grades within the veins from 0.1 - 3.8g/t Au, and a gold grade for the zone averaging 3.0g/t. Orsu visited this occurrence and collected only several grab samples, which generally confirmed the historically reported grades. ZT61-1731/MM1301 Final V2.0 Page 38 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

7.3.6.4 Kladbischenskoe Occurrence

The Kladbischenskoe Occurrence (0.605km2) is located on the west slope of the river Malaya Pad valley, some 7km to the west of the Kluchevskoye mine. The occurrence is situated within Proterozoic granitoid which is cut by dykes of porphyritic diorite and lamprophyre extending in a northeast direction.

The occurrence is represented by a contiguous zone of veinlet-disseminated mineralisation type. The host rock alteration is related to silicification, K-feldspar altered and pyritisation. Quartz-tourmaline veins and veinlets occur within the zone. Mineralisation is represented by pyrite, chalcopyrite, arsenopyrite, sometimes by molybdenite, bismuth and oxidised forms of these minerals – limonite, malachite, azurite. The gold grade varies from 0.2g/t to 1.9g/t Au.

The combined thickness of the zones is 100 - 120m. In addition, quartz veinlets with a thickness of 3cm containing bismuth and visible gold have been described on the left slope of the occurrence. Orsu only briefly visited this occurrence during initial assessment of the area.

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8 DEPOSIT TYPES

The Sergeesvkoe Deposit can be classified as a Reduced Intrusion Related Gold System (RIRGS) hosted in Jurassic intrusions and its country rocks associated with well-preserved moderate to high- temperature Mesozoic collisional belts.

RIRGS are a recently recognised class of gold only mineral deposit styles with a direct genetic link to cooling felsic intrusion during their formation. Mineralisation in RIRGS may be present as skarns, veins, disseminations, stockworks, replacements, and breccias.

The resource grade and tonnages of known RIRGS deposits are displayed in Figure 8.1 below, which also notes the host of the mineralisation. However, it should be noted that the information contained therein is not necessarily indicative of the mineralisation on the property that is the subject of this technical report.

Figure 8.1: Grade and Tonnage for RIRGS Deposits (Hart, 2007) [BCC = Brewery Creek Classic zone, CC = Clear Creek]

Most RIRGS consist of intrusion-hosted, sheeted arrays of thin, low-sulphide Au-Bi-Te-W quartz veins; gold grade is mainly controlled by vein density, a generalised model for RIRGS deposits is displayed in Figure 8.2.

The RIRGS model was developed from Au deposits in Alaska (USA) and Yukon (Canada) which were discovered in the 1990s, including Fort Knox, Dublin Gulch, Scheelite Dome and Clear Creek, which are found in the Tombstone Gold Belt that reaches 1,000km across central Yukon and Alaska.

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Figure 8.2: Generalised Model for RIRGS Deposits (Modified after Thompson and Newberry (2000))

Other deposits that may be RIRGS include Timbarra and Kidston (Australia), Penedona and Jales (Portugal), Salave and Solomon (Spain), Mokrsko and Petrackova Hora (Czech Republic), Vasilkovskoye (Kazakhstan), Niuxinshan (China), Kori Kollo (Bolivia), and Petza River and Miller Mountain (USA). The global distribution of known RIRGS deposits is displayed in Figure 8.3.

Figure 8.3: Global distribution of Au deposits suggested to be RIRGS (Modified from Thompson et al. (1999), Lang et al. (2000), and Lang and Baker (2001))

Most RIRGS are emplaced at a depth of between 1km and 7km, with the majority forming at depths ranging from 3km to 6km. Gold mineralisation is spatially associated with intermediate to felsic cupolas and contact aureoles of volatile-rich plutons of leucocratic and felsic magmatic phases. These generally fall within the ilmentite series medium- to high-K magma field.

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Magnetite contents are low due to relatively low magmatic oxidation states; such conditions inhibit early sulphide or SO2 formation, maintaining the solubility of gold in the melt fraction of the magma until the magma is emplaced into shallow crustal levels.

RIRGS generally lack the vein stockworks characteristic of porphyry deposits due to their deeper levels of emplacement. Fluid flow and mineralisation in most RIRGS systems is largely controlled by structural features. The dominant structural control is arrays of parallel fractures infilled with thin (0.1–5cm), auriferous, low-sulphide quartz veins in extensive intrusion-hosted sheeted arrays.

Melt inclusions taken from RIRGS mineralising intrusions contain gold and are therefore suggestive of a magmatic origin for the gold. Fluid inclusion evidence from RIRGS at shallow crustal levels (<5km) suggests a high temperature (>350°C) immiscible brines, and low-salinity CO2 vapours. At deeper crustal levels (>5km) the mineralising fluids are dominated by high temperature low-salinity, CO2-H2O fluids. Isotopic data are indicative of a large crustal contamination component to the melt.

The RIRGS metal assemblage may contain high fineness Au (>700) with or without Bi, W, Mo, Te, As, Sb, Cu, and Sn. Unlike porphyry-copper mineralisation, significant Cu is lacking. Scheelite-rich systems (Mo-W or Sn-W) occur, but there does not appear to be a direct correlation with gold.

An overlapping metal zonation has been noted for RIRGS from the host Intrusion (Au-Bi-W-Te-Mo- As- Cu) out through a Proximal Assemblage (Au-As-W-Sb) and a Distal Association (Au-As-Sb-Pb- Zn-Ag).

Deposits show evolution from early, high temperature magmatic stages to lower temperature hydrothermal veins. Metal zonation occurs in response to a steep temperature and fluid chemical gradient away from the mineralising pluton.

RIRGS consistently exhibit low sulphide contents (<5% by volume); sulphide minerals include pyrite, arsenopyrite and pyrrhotite. RIRGS alteration mineralogy is highly variable both in style and intensity due to the range of potential host lithologies and structural settings associated with steep temperature and fluid chemical gradients away from the pluton.

Most notable alteration types range from potassic (K-feldspar), sodic (albite), sericitic, greisen, and skarn. Tourmalinisation is rarely developed and trace element associations include B, F, Cs, Rb and Li.

Granites associated with RIRGS deposits exhibit subequal ratios of quartz, plagioclase and alkali feldspar. Biotite is the dominant mafic mineral with lesser amounts of hornblende and pyroxene. Associated with the intrusions are dykes of aplite and pegmatite, together with more mafic phases such as lamprophyres. Pluton characteristics indicate high volatile contents, which are identified by unidirectional solidification textures, miarolitic cavities, tourmaline veins, and greisen alteration. RIRGS associated granitoids exhibit low aeromagnetic and gravity response, together with low magnetic susceptibility readings. Elevated K and U signatures are characteristically associated with highly fractionated granitoids, together with Th anomalies in metaluminous I-type granitoids.

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9 EXPLORATION

9.1 Introduction

Orsu is treating all historical exploration as indicative and no historical data have been used for the current mineral resource estimation.

The primary objective of Orsu’s exploration strategy is to:

• Improve understanding of the extent and style of mineralisation in order to better define the tenor and confidence level of the deposit; and • Develop the mineral resource database and permit estimation of mineral resources.

9.2 Check Sampling

In 2016, Orsu used a hand-held GPS device (with an 8.0m accuracy) to check the location of the historical trenches. Several trenches with significant mineralised intercepts, as shown on historical maps, were then selected for field inspection and grab sampling. The grab samples were then delivered to the SGS Vostok laboratory for assaying (Table 9.1). In total, some forty-one samples (plus one laboratory and two field duplicates) were collected from the Sergeevskoe area during the initial site visit in July 2016.

As samples were collected from poorly preserved trenches, they largely represent the randomly available material and cannot be treated as representative material.

Furthermore, the samples were not collected using any specific spacing or density, although most samples were collected from the historical trench K-679 as shown on historical maps, one of the longest historical trenches which exhibits several mineralised intervals across both Zone 23 and Kozie occurrences.

The samples were assayed using standard fire assay technique for gold and atomic absorption for silver at the SGS Vostok Limited laboratory, which is independent from Orsu.

In conclusion, it should be noted that the grab samples are not representative and were used only as an indication for the presence of gold and silver mineralisation in the Sergeevskoe license area.

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Table 9.1: Orsu Check Sample Exploration Results Sample # Easting Northing Au (g/t) Ag (g/t) 1 20659375 5937084 0.58 2.0 2 20659377 5937090 0.3 1.0 3 20659486 5937157 0.21 1.8 4 20659486 5937157 0.22 1.7 5 20659486 5937157 0.21 0.9 6 20659500 5937139 14.5 7.2 7 20659569 5937158 0.51 2.0 8 20659569 5937152 0.26 0.7 9 20659410 5937100 2.24 1.8 10 20659410 5937100 0.69 0.8 11 20659442 5937091 0.27 0.15 12 20659442 5937091 0.78 0.6 13 20659563 5937069 1.5 1.7 14 20659560 5937052 0.92 0.5 15 20659542 5936742 0.33 0.8 16 20659006 5936595 0.15 1.5 17 20659007 5936603 0.1 0.4 18 20659008 5936626 0.34 26.1 19 20659008 5936626 0.71 14.3 20 20659723 5936455 0.46 2.6 21 20659723 5936455 0.23 0.15 22 20659723 5936455 11.3 4.7 23 20660240 5936872 0.26 0.6 24 20660240 5936872 0.16 0.4 K-1 20659603 5938257 0.18 3.0 K-2 20659577 5938279 1.17 1.3 Ser-01 20659514 5936482 5.69 3.1 Ser-02 20659523 5936561 0.42 1.7 Ser-03 20659525 5936578 0.53 3.2 Ser-03 20659525 5936578 0.55 3.1 Ser-04 20659542 5936693 0.08 1.3 Ser-05 20659536 5936718 0.04 0.4 Ser-06 20659535 5936783 0.21 0.4 Ser-07 20659542 5936860 1.60 11.4 Ser-08 20659565 5936975 0.16 1.6 Ser-09 20659552 5937032 0.34 3.8 Ser-10 20659562 5937109 0.07 <0.3 Ser-11 20659564 5937145 0.18 0.5 Ser-12 20659751 5937014 0.35 1.2 Ser-13/28 20659529 5937078 1.25 2.7 Ser-TR 20659072 5937108 0.58 3.4 Ser-14 20659456 5938057 0.40 1.2

9.3 Orsu Trenching 2017-2018

Trenching was carried out using a dozer to move overburden material (Photo 9.1) followed by hand cleaning of bedrock to expose the mineralised zones (Photo 9.2). The width of the trenches was typically >3.0m taking into account the depth of overburden. Trenches were excavated perpendicular to the strike of mineralisation, typically in a north-south orientation.

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Photo 9.1: Dozer Trench Stripping (WAI)

Photo 9.2: Trench Hand Cleaning (WAI)

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Trench sampling was carried out using a portable diamond saw (Photo 9.3 and Photo 9.4) cutting lengthways along the strike of the trench, i.e. cross-cutting the mineralised zones.

Trench samples collected were placed into bags, tagged and given a unique reference number, before being returned to the camp in Kluchi village for processing prior to dispatch and submitting to the laboratory for sample preparation and assaying.

Photo 9.3: Trench Sample Cutting with Portable Diamond Saw (WAI)

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Photo 9.4: Cut Trench Sampling (WAI)

In total, Orsu excavated 48 trenches for a total length of 6,089.0m and recovered 5,170 samples with an average length of 1.13m.

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10 DRILLING

10.1 Introduction

The majority of drillholes at the site are more than 50 years old, little reliance can be placed on the absolute assayed gold values indicated by these drillholes, particularly with the knowledge that the holes generally had very poor core recovery. No further information is available about the techniques used, nor is there any remaining core on which to pass comment. However, no historical drill core data is used in the current mineral resource estimation.

Orsu commenced drilling at Sergeevskoe in 2017 and this is summarised in the following sections. This drilling only comprises of diamond core drilling.

10.2 Orsu Drilling 2017-2018

During the 2017-2018 exploration programme, drilling was carried out using diamond core techniques. Diamond drilling was carried out with an Atlas Copco CS 14 drill rig (Photo 10.1) using 3.0m double tube wire-line core barrels recovering HQ (63.5mm) and NQ (47.6mm) diameter drill core as the holes deepened.

Photo 10.1: Atlas Copco CS 14 Drill Rig Used during the 2018 Programme (WAI)

No specific measures were taken to reduce losses other than standard procedures of reducing drill runs when drilling through the unoxidized rock. It is reported by Orsu that no drilling campaign

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Collar positions for all drillholes were laid out by the on-site surveyor (Orsu) using a differential GPS (DGPS) with centimetre precision and then checked again once drilling was completed. Downhole surveys were carried out for all of the diamond drillholes using Reflex Ez-Shot equipment with measurements taken approximately every 20m.

Core was extracted and carefully removed to prepared metal core trays for clean-up prior to being placed into wooden core boxes (Photo 10.2). Core was logged and sample intervals were marked up by Orsu geologists and contractors prior to sample preparation and assay. Core was photographed and the core was logged for RQD data, core recovery and lithology information.

Photo 10.2: Drillcore Awaiting Transfer from Drill Site (WAI)

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Core was logged on site by company geological personnel using a standardised logging convention, to a level sufficient to support geological interpretation, modelling, and subsequent mineral resource estimation, and included a description of lithology, alteration/weathering, major structures, mineralisation, and veining on a qualitative basis. Rock Quality Designation (RQD) measurements were also completed by the field geologists. All logging was initially done manually on paper templates before transfer on site to an electronic system using Excel spreadsheets.

No geophysical or portable analysis tools were used to determine assay values, although magnetic susceptibility readings were regularly included in the exploration database.

Core was sent in its entirety to the sample preparation facility located in the Kluchi village 2 km away from the Sergeevskoye area where Orsu has a camp with secure core storage facility and where the core cutting equipment is located.

In total, Orsu completed 82 diamond cored drillholes for a total length of 17,107.80m, and 12,486 samples collected with an average sample length of 1.14m.

Upon completion, all drill collars are marked with a protruding steel drill tube set into a concrete plinth, see Photo 10.3 showing drillhole SDH17-2 (X coordinate 20659372.87; Y coordinate 5937138.328, Z coordinate 1070.965).

Photo 10.3: Completed Drillhole Collar SDH17-2 (WAI)

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11 SAMPLE PREPARATION, ANALYSES AND SECURITY

11.1 Introduction

The nature of historical data is unknown, no information is available other than to say that sample preparation, analysis and security would have been undertaken following stringent Soviet protocols which were common across the whole FSU. However, no historical data is used in the current mineral resource estimation.

11.2 Orsu Exploration Campaign 2017-2018

11.2.1 Trenching

Trench channel samples were initially cut with a portable diamond saw and collected using hammer and chisel with sample material placed directly into a plastic bag (Photo 11.1). The sample bags labelled with a Sample ID written on the outside of the bag as well as labelled on a tag inside the bag.

Photo 11.1: Trench Samples Being Cut (WAI)

Trenching was used to obtain predominately 1.0m samples (minimum length 0.10m to a maximum of 2.00m). The entire sample interval was bagged and taken for sample preparation (crushing/pulverising) to produce a final sub-sample for laboratory analysis.

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11.2.2 Diamond Drilling

Upon receipt, the drill core was sawn (or divided) in half with one half returned to storage in the core box and the second half sawn in half again with one quarter sent for analysis as the main sample and the second quarter as a duplicate sample. The use of field duplicate sample (1/4 of core or parallel channel sample next to original trench sample) analysis has been used throughout the Orsu exploration campaign at Sergeevskoe in order to monitor precision and reproducibility. Photo 11.2 shows the core cutting equipment and Photo 11.3 shows cut core within wooden core trays.

Photo 11.2: Core Cutting Equipment (WAI)

Samples were dispatched to the preparation facility in bags labelled with a Sample ID written on the outside of the bag as well as labelled on a tag inside the bag (Photo 11.4).

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Photo 11.3: Cut Core and Trench Samples (WAI)

Photo 11.4: Sample Bags Prepared for Dispatch (WAI)

11.2.3 Sample Preparation

Sample preparation has followed standard industry practices and was carried out in the assaying laboratories of either ALS Chita or SGS Chita during different periods of exploration.

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Samples were accompanied by a sample submission sheet listing the Sample IDs in the sample batch, sample weights, and the type of sample (trench or core). Two copies of the sample submission sheet were used with both the submitting geologist and the receiving laboratory signing off on the sample submission and each party retaining a copy.

Samples were stored inside the preparation and laboratory facility where the samples are weighed and checked against the sample submission sheet. Two ovens are used by the preparation facility to dry the samples with each oven capable of handling 200 samples.

Samples were dried for 12-15 hours at 105°C depending on the sample moisture content. Samples were taken out of the oven and placed into batches of 30 samples for processing with each sample retaining its original Sample ID throughout the preparation process.

The sample preparation scheme for core and channel samples is shown in Figure 11.1. Dried samples are crushed to 85% passing 2mm and pulverised to 85% passing 1mm. A sub sample of between 0.3 and 1.0kg is pulverised further to 95% passing 75µm with a final sub sample of 300-500g taken for chemical analysis.

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Figure 11.1: Sample Preparation Scheme

11.2.4 Sample Analysis

Both ALS Chita Laboratory and SGS Vostok Limited (Chita) laboratories analysed primary and duplicate samples. The results of the external control were not available at the time of completion of this report. The primary assay methodology for gold analysis was fire assay with an atomic absorption spectroscopy (AAS) finish. Samples shown to have a gold content of >10g/t Au were reanalysed with a gravimetric finish. Silver was analysed for using acid digestion with either AAS (Chita) or atomic emission spectroscopy (ALS) finishes.

Multiple element analysis ICP40B was also performed, but not for all drillholes and trenches. This analysis was carried out for 32 elements with four acid digestion and atomic emission spectroscopy finish.

Analytical procedures at the two laboratories used is summarised in Table 11.1.

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Table 11.1: Laboratory Assay Analysis Methods

y Au Ag r o t

a Sample Detection Sample Detection r o

b Method weight limit Method weight limit a

L (g) (ppm) (g) (g/t) Fire Assay (FAA505) 50 0.01-10 Two acid digestion 2 0.3g -300 ) a

t with atomic absorption (AAS12E) in aqua i h

C spectroscopy (AAS) regia with atomic (

d finish absorption e t i spectroscopy (AAS) m i

L finish.

k o t s For Au> 10ppm: Fire 30 >0.3 For Ag>300g/t: Fire >10g o V assay with a gravimetric assay with a S

G finish (FAG303) gravimetric finish S (FAG313) Fire Assay (AA24) with 50 0.005-10 Four acid digestion 0.5-100 atomic absorption (ME-ICP61) spectroscopy (AAS) with atomic

a finish. emission t i

h spectroscopy finish. C

S For Au >10ppm: 30 0.01-100 L

A Fire Assay (AA25) with atomic absorption spectroscopy (AAS) finish.

Both laboratories are accredited to international standards. In addition, the accreditation program has been monitored by the Russian Federal Agency on Technical Regulating and Metrology (GOST R System).

11.2.5 Quality Assurance and Quality Control (QA QC)

11.2.5.1 Introduction

Quality assurance and quality control are the key components to verify the validity of sample collection, security, preparation, and analytical method. The aim of the QA/QC programme is to quantify and monitor any errors and to provide information that might be used to improve sampling and analytical procedures in order to minimise any errors.

A comprehensive QA/QC programme should monitor the accuracy, precision and contamination of each step in exploration from the sampling through to the final assay value produced by the laboratory.

WAI understands that Orsu employed a QA/QC programme that included insertion of field duplicate samples, internally produced uncertified coarse blank samples, and certified reference materials (“CRMs”). Pulp duplicates have also been analysed for external and internal control in 2019, although the results are not available at the day of the report preparation. ZT61-1731/MM1301 Final V2.0 Page 56 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

QA/QC samples have been submitted both to internal laboratories as well as external laboratories. The results of the external control were not available at the time of preparation of this report. WAI has been provided with Excel spreadsheets for the duplicate assays, blank samples and CRM analysis results for the drilling campaigns in 2017 and 2018. The field duplicates were inserted at a rate of 1:20, with every 21st samples being a CRM, and every 22nd a blank sample.

11.2.5.2 QAQC Methodology

WAI has undertaken the QA/QC analysis of the 2017-2018 drilling and trenching campaigns.

For duplicate sample sets, the precision can be discussed in terms of the following statistical measures applied by WAI.

• Summary Statistics showing the mean, mode, standard error, range and standard deviation can be indictors if the data sets are in agreement. • Rank HARD Plot which is the ranked half absolute relative difference, ranks all assay pairs in terms of precision levels measured as half of the absolute relative difference from the mean of the assay pairs (HARD), used to visualise relative precision levels (typically 90%) and to determine the percentage of the assay pairs population occurring at a certain precision level (20%). It should be noted that as the HARD statistic uses and absolute difference, a ranked HARD plot does not reveal bias in duplicate data, only the relative magnitude of differences (i.e. precision). The HARD values are sorted from lowest to highest and ranked accordingly, with the rank expressed as a percentage. The ranked HARD plot is then generated by plotting the percent rank on the X-axis against the HARD value on the Y-axis. A rank HARD plot is constructed that enables quick identification of the percentage of the sample pairs with a HARD value less than 20%. • Correlation Plot is a simple plot of the value of the duplicate samples, assay 1 against assay 2. This plot allows an overall visualisation of precision and bias over selected grade ranges. Correlation coefficients are also good indicators to quantify the agreement between data sets. A correlation greater than 0.9 is generally described as strong, whereas a correlation less than 0.6 is generally described as weak. • Thompson and Howarth Plot showing the mean relative percentage error of grouped assay pairs across the entire grade range, used to visualise precision levels by comparing against given control lines. • Mean vs. HARD Plot used as another way of illustrating relative precision levels by showing the range of HARD over the grade range. • Mean vs. HRD Plot is similar to the above, but the sign is retained, thus allowing negative or positive differences to be computed. This plot gives an overall impression of precision and shows whether or not there is significant bias between the assay pairs by illustrating the mean percent half relative difference between the assay pairs (mean HRD).

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For certified reference materials (CRM), control charts such as Shewhart X (average) and R (range) charts are constructed for each element standard. The control charts plot process variability, with metal content on the Y-axis and sample number on the X-axis. The plotting of data on charts of this type allows for the easy recognition of samples that fall outside of the action limits applicable for each standard used. Warning and control limits are established at mean ±2 and ±3 standard deviation limits respectively. Any analysis beyond the ±3 standard deviation limit is considered as a failure.

Blank sample results are analysed against detection limits. A blank result that is greater than five times the detection limits is generally considered a failure.

11.2.5.3 QAQC Results

Field Duplicates

Duplicate samples were inserted into the sample stream of both drillholes and trench samples during the 2017 and 2018 exploration programmes for analysis at both SGS and ALS. A core duplicate consisted of a quarter core split of the primary half core samples. A trench duplicate was a parallel sample in contact with the primary sample with the same start and end positions. These channels have a cross sectional profile of 5cm x 10cm.

Any sample pairs where one or both of the samples returned a result lower than the detection limit were excluded from the statistical analyses. The total number of excluded silver sample pairs is 156, and the total number of excluded gold sample pairs is two. Both laboratories returned lower than detection limit / above detection limit results without obvious systematicity.

The results of the duplicate analysis for both Au and Ag, for 2017 and 2018, are shown in Figure 11.2 to Figure 11.13 and summarised in Table 11.2.

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Figure 11.2: Au Field Duplicates, 2017 Exploration, ALS Laboratory, Drillholes

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Figure 11.3: Ag Field Duplicates, 2017 Exploration, ALS Laboratory, Drillholes

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Figure 11.4: Au Field Duplicates, 2017 Exploration, SGS Laboratory, Trenching

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Figure 11.5: Ag Field Duplicates, 2017 Exploration, SGS Laboratory, Trenching

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Figure 11.6: Au Field Duplicates, 2018 Exploration, SGS Laboratory, Drillholes

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Figure 11.7: Au Field Duplicates, 2018, ALS Laboratory, Drillholes

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Figure 11.8: Au Field Duplicates, 2018 Exploration, SGS Laboratory, Trenching

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Figure 11.9: Au Field Duplicates, 2018 Exploration, ALS Laboratory, Trenching

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Figure 11.10: Ag Field Duplicates, 2018 Exploration, ALS Laboratory, Trenching

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Figure 11.11: Ag Field Duplicates, 2018 Exploration, SGS Laboratory, Trenching

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Figure 11.12: Ag Field Duplicates, 2018 Exploration, ALS Laboratory, Drillholes

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Figure 11.13: Ag Field Duplicates, 2018 Exploration, SGS Laboratory, Drillholes

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Table 11.2: Summary of Field Duplicate Sample Analysis Sample Number of % of Samples Correlation Element Laboratory Year Type Sample Pairs <20% HARD Coefficient Au ALS 2017 Drilling 133 76.7 0.95 Au SGS 2017 Trenches 190 70.2 0.84 Au ALS 2018 Drilling 101 80.2 0.96 Au ALS 2018 Trenches 24 75.0 0.99 Au SGS 2018 Drilling 354 80.2 0.14 Au SGS 2018 Trenches 49 71.4 0.82 Ag ALS 2017 Drilling 85 85.9 0.92 Ag SGS 2017 Trenches 139 76.3 0.93 Ag ALS 2018 Trenches 24 79.2 0.97 Ag ALS 2018 Drilling 70 77.1 0.85 Ag SGS 2018 Trenches 47 70.2 0.97 Ag SGS 2018 Drilling 334 85.9 0.95

Analysis of the field duplicate sample pairs shows that, in general, reasonable precision is seen between the primary and duplicate sample results All data sets show between 70.2 to 85.9% of samples below a 20% HARD limit. Whilst ideally 90% of sample pairs would fall within this limit, WAI view this as an acceptable performance given the nuggety nature of the mineralisation in places, typically observed in oxide material, but not observed in the primary material.

All but one of the sample data sets show a correlation coefficient of between 0.82 and 0.99 for gold and silver. The low correlation coefficient for drillhole samples analysed for gold in 2018 at SGS is due to two sets of sample pairs with large differences between results. In these sample pairs, one of the two samples is high grade (15.8g/t against 1.26g/t Au and 35.42g/t against 0.57g/t Au). These differences are possibly due to the natural variation in gold content in field duplicates. If these two sets of sample pairs are removed from the analysis, the overall correlation coefficient of the remaining samples in this data set increases to 0.83.

Sample pair precision decreased where one of the sample pairs at least was considered high grade gold (>1g/t) or silver (>4g/t) for both laboratories for both the 2017 and 2018 exploration campaigns. As analysis of CRMs did not indicate issues with the laboratory results for the high-grade CRM samples. this is likely due to the nuggety nature of metal in the sampled duplicates.

Q-Q plots occasionally show a small amount of bias such as the SGS duplicate results returned slightly lower results that the original samples in the higher end (>1g/t) of the gold assay range 2017 trenching exploration (Figure 11.4). However, no systematic major bias is seen with these sample sets.

Reference Materials

Orsu used 17 different Certified Reference Material (CRM’s) samples produced by Minstandart (Russia) and Geostats Pty Ltd (Australia). The list of the CRM used throughout the 2017-2018 sample analysis is presented in Table 11.3.

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Table 11.3: Certified Reference Material CRM Producer / Source Au Certified Value (g/t) Ag Certified Value (g/t) G914-4 Geostats Pty Ltd 0.2 G904-6 Geostats Pty Ltd 0.36 G310-4 Geostats Pty Ltd 0.43 G910-8 Geostats Pty Ltd 0.63 G399-5 Geostats Pty Ltd 0.87 G307-1 Geostats Pty Ltd 3.37 G315-8 Geostats Pty Ltd 9.93 G914-8 Geostats Pty Ltd 33.30 MST G160е Minstandart 2.85 MST Gq157d Minstandart 0.85 MST Gq158е Minstandart 1.13 MST GS161f Minstandart 8.05 1.49 MST SG149g Minstandart 0.96 22.5 MST SG150g Minstandart 3.20 46.7 MST G155е Minstandart 4.75 MST SG147f Minstandart 0.312 6.85 MST SG151h Minstandart 5.31 78.3

Orsu did not use any CRMs for silver only. Silver was tested by five CRMs also certified for gold (MST GS161f, MST SG149g, MST SG150g, MST SG147f, MST SG151h). The mean results for the silver analysis for each CRM are shown in Table 11.4. Those CRMs with a certified grade for Ag are shown in bold.

The statistical analysis of all CRMs is shown in Figure 11.14 to Figure 11.20. The CRM charts present the results of the ALS and SGS laboratories divided by breaks on the plots. Several CRMs were tested only a limited number of times and results of these are not deemed statistically significant.

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Table 11.4: Average Analysis Results for Silver in CRMs Certified Ag (bold) or Neutron Activation Mean analysis results CRM Year and Exploration Type Analysis Results for Ag for Ag (g/t) in CRMs (ppm) G914-4 1 1.39 2017 Drillholes and Trenches G310-4 5 4.6 2017 Drillholes and Trenches G910-8 1.6 2.1 2017 Drillholes and Trenches G399-5 <5 0.5 2017 Drillholes and Trenches G307-1 15.2 15.8 2017 Drillholes and Trenches G315-8 5 8.48 2017 Drillholes and Trenches G914-8 2 4.8 2017 Drillholes and Trenches G155e - 0.37 2018 Drillholes G160e - 0.59 2018 Drillholes G307-1 15.2 15.2 2018 Drillholes G310-4 5 4.58 2018 Drillholes G315-8 5 8.13 2018 Drillholes G904-6 <2 0.4 2018 Drillholes G914-8 2 4.67 2018 Drillholes Gq157d - 0.46 2018 Drillholes Gq158e - 0.25 2018 Drillholes GS161f 1.49 1.26 2018 Drillholes SG149g 22.5 21.3 2018 Drillholes SG150g 46.7 46.9 2018 Drillholes G155e - 0.2 2018 Trenches G160e - 0.55 2018 Trenches G307-1 15.2 16.1 2018 Trenches G310-4 5 4.7 2018 Trenches G315-8 5 8.24 2018 Trenches G904-6 <2 0.33 2018 Trenches G914-8 2 4.65 2018 Trenches Gq157d - 0.45 2018 Trenches Gq158e - 0.25 2018 Trenches GS161f 1.49 1.1 2018 Trenches SG149g 22.5 21.2 2018 Trenches SG150g 46.7 47.9 2018 Trenches

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Figure 11.14: CRM for Au, 2017 Drillholes (DH) and Trenches (TR)

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Figure 11.15: CRM for Au, 2018 Drillholes (Part 1)

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Figure 11.16: CRM for Au, 2018 Drillholes (Part 2)

Figure 11.17: CRM for Ag, 2018 Drillholes ZT61-1731/MM1301 Final V2.0 Page 76 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

Figure 11.18: CRM for Au, 2018 Trenches (Part 1)

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Figure 11.19: CRM for Au, 2018 Trenches (Part 2)

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Figure 11.20: CRM for Ag, 2018 Trenches

For CRMs analysed during the 2017 exploration programme, results are generally acceptable. Little evidence of systematic bias is seen at either SGS or ALS where a significant number of CRMs are analysed. However, a significant number of fails are shown for ALS analysis for both G904-6 and G307-1 and the ALS results for G307-1 do show a positive bias from CRMs inserted into the sample stream across drillholes SDH1714, SDH-1715, SDH-1716, SDH-1718 and SDH-1719. It is not clear what remedial action, if any, was taken at the time of sample analysis in identifying these fails and trying to track down the source of the errors.

CRM gold analysis during the 2018 drillhole programme show generally acceptable results with only a limited number of fails and little evidence of bias for most of the CRMs tested. The exception to this is G310-4 which shows 10 failures outside of 2SDs (15.4% failure rate). A number of these are clustered in a short period during analysis at SGS. It is not clear if any remedial action such as reanalysing sample batches was carried out due to these failures.

CRM silver analysis for the 2018 drillhole programme show acceptable results. The only three significant failures seen across SG149g and SG150g returned results of 0g/t against target grades of 22.5g/t and 46.7g/t and are likely a result of sample swapping. Little bias is seen across these three CRMs apart from the latter part of the programme in GS161f where a significant downward trend in results resulted in seven failures outside the 2SD limits. It is not clear if any remedial action such as reanalysing sample batches was carried out due to these failures.

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CRMs inserted into the sample stream for Au and Ag checks during the 2018 trench sampling programme show reasonable results with little evidence of bias, but this analysis is based on only a small number of CRM samples.

Blanks

Blanks are the internally produced samples sourced from a nearby granite quarry. The source sample material is a granite without visual mineralisation, veins and oxides. Eleven test blank samples from the quarry were formed and tested prior to samples being inserted for contamination monitoring. The test samples analysis results did not return significant values for gold and silver content (Table 11.5) and the garnet from this quarry was accepted to be used as blank samples.

Table 11.5: Internally Produced Blank Sample Tests Results Sample number Au, ppm (FAA505) Ag, g/t (AAS12E) CH17-00187.001 <0.01 <0.3 CH17-00187.002 0.01 <0.3 DUP-CH17-00187.002 0.02 <0.3 CH17-00187.003 0.01 <0.3 CH17-00187.004 0.02 <0.3 CH17-00187.005 0.02 <0.3 CH17-00187.006 0.01 <0.3 CH17-00187.007 0.02 <0.3 CH17-00187.008 0.02 <0.3 CH17-00187.009 0.01 <0.3 CH17-00187.010 0.02 <0.3

The results of the blank analyses are presented in Figure 11.21 to Figure 11.23.

Figure 11.21: Blank Analysis Results, 2017 Exploration

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Figure 11.22: Blank Analysis for Au and Ag, Drillholes, 2018

Figure 11.23: Blank Analysis for Au and Ag, Trenches, 2018

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Analysis of the blank samples did not indicate any significant signs of contamination. Three samples analysed in the SGS laboratory from the 2017 trench sampling are above 10x detection limit. However, the failures do not form a trend, and overall the results are deemed to be acceptable.

11.2.5.4 Conclusions and Risk Matrix

The WAI audit of the QA/QC data has identified some risks within the sample data. These risks are summarised in Table 11.6. It should be noted that Table 11.6 does not provide a quantitative risk assessment, but gives an indication as to where WAI considers the risks lie within the sampling data.

A six-score classification has been employed where:

• 1-2 (‘low’ risk): Little or no perceived risk, or low uncertainty; • 3-4 (‘moderate’ risk): Risk present which could lead to small material error in the resource model; and • 5-6 (‘high’ risk): This feature could lead to material error in the resource model (high uncertainty).

Table 11.6: Risk Matrix: QA/QC Sample Auditing QA/QC Sampling Risk Comments Field duplicates taken as quarter core or parallel channel samples were submitted for analysis during the 2017-2018 exploration programme. Analysis of the field duplicate sample pairs shows that, in general, reasonable precision is seen between the primary and duplicate sample results All data sets show between 70.2 to 85.9% of samples below a 20% HARD limit. Whilst ideally 90% of sample pairs would fall within this limit, WAI view this as an acceptable performance given the nuggety nature of the mineralisation in places. Sample pair precision decreased where one of the sample pairs at least was considered high grade gold (>1g/t) or silver (>4g/t) for both laboratories for both the Internal Duplicates 3 2017 and 2018 exploration campaigns. As analysis of CRMs did not indicate issues with the laboratory results for the high-grade CRM samples. this is likely due to the nuggety nature of metal in the sampled duplicates.

No coarse duplicate samples were submitted for analysis during the 2017-2018 exploration programmes.

No pulp duplicates were submitted for analysis during the 2017-2018 exploration programmes. No data was provided for external duplicate analysis at the time of External Duplicates 6 completion of this report. Internally produced blanks have been submitted for analysis throughout the 2017-2018 Sergeevskoye exploration works. Representative samples were tested prior to exploration commencing and showed mean grades of 0.001 - 0.02 g/t of gold and <0.3g/t silver. The blank analysis results are very variable. Five blank samples from Blanks 3 2017 have gold content of 0.04-0.15 g/t. A significant number of blanks from 2017 had a silver content of >0.3 g/t. The results of 2018 are highly variable as well although are generally below accepted 5x detection limit line.

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Table 11.6: Risk Matrix: QA/QC Sample Auditing QA/QC Sampling Risk Comments A significant number of CRMs were tested with a grade range that covers the expected assay grade variation. Some CRMs are tested by very limited number of analysis. For example, only seven samples were tested with a target value of 1.13g/t Au in 2018. A similar situation is seen with high grade CRMs but this is less critical as the deposit assay is rarely >5 g/t Au.

For CRMs analysed during the 2017 exploration programme, results are generally acceptable. Little evidence of systematic bias is seen at either SGS or ALS where a significant number of CRMs are analysed. However, a significant number of fails are shown for ALS analysis for both G904-6 and G307-1 and the ALS results for G307-1 do show a positive bias from CRMs inserted in to the sample stream across drillholes SDH1714, SDH-1715, SDH-1716, SDH-1718 and SDH-1719. It is not clear what remedial action, if any, was taken at the time of sample analysis in identifying these fails and trying to track down the source of the errors.

CRM gold analysis during the 2018 drillhole programme show generally acceptable results with only a limited number of fails and little evidence of bias for most of the CRMs tested. The exception to this is G310-4 which shows 10 failures outside of 2SDs (15.4% failure Certified Reference 2 (Au) rate). A number of these are clustered in a short period during Materials 3 (Ag) analysis at SGS. It is not clear if any remedial action such as reanalysing sample batches was carried out due to these failures.

CRM silver analysis for the 2018 drillhole programme show acceptable results. The only three significant failures seen across SG149g and SG150g returned results of 0g/t against target grades of 22.5g/t and 46.7g/t and are likely a result of sample swapping. Little bias is seen across these three CRMs apart from the latter part of the programme in GS161f where a significant downward trend in results resulted in seven failures outside the 2SD limits. It is not clear if any remedial action such as reanalysing sample batches was carried out due to these failures.

CRMs inserted in to the sample stream for Au and Ag checks during the 2018 trench sampling programme show reasonable results with little evidence of bias but this analysis is based on only a small number of CRM samples.

Silver was not tested by any silver specific CRMs, only as a secondary metal alongside the primary gold focus of the CRMs and only five of the tested CRMs have certified silver content. This decreases the confidence in the reported silver resources. Overall Rating 3 Moderate Risk

Recommendations

WAI would recommend that in future exploration programmes:

• The number of different CRMs should be reduced so that the number of results for each individual CRM analysed are increased;

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• That coarse duplicate samples (from coarse reject material) should be introduced into the sample stream to analyse the effectiveness of the initial sample preparation procedure in producing homogenous samples; • That pulp duplicate samples (from pulp reject material) should be introduced into the sample stream to analyse the effectiveness of the pulverisation procedure in producing homogenous samples; • To introduce certified blank samples instead of internally produced samples to eliminate the possibility of contaminated blank material; • To add one CRM for silver with a grade in the range of 2.5 - 4.0g/t Ag; • To introduce systematic numbering in the exploration database and to clearly identify laboratory used, type of duplicate, type of sampling and date of sampling; and • The uneven correlation for high grade gold (> 1g/t) and silver (> 4g/t) field duplicate samples should be monitored during further exploration.

11.3 Security

Orsu has implemented adequate systems in relation to sample security during trench and drilling transport and on-site storage and handling, with satisfactory chain of custody documentation and procedures.

Database security is maintained through a limited number of personnel having access to the database. One staff member is responsible for the transfer of assay results to the drillhole database in the camp office in Kluchi village.

11.4 Authors Opinion

WAI considers that the sample preparation, analyses, and security meets suitable industry standards and that the data obtained are suitable to support a Mineral Resource Estimate.

Notwithstanding, WAI recommends focusing the QA/QC programme with the addition of coarse and pulp duplicates added to the sample stream. The number of CRM’s should be reduced with greater focus on the tenor of mineralisation, as well as the addition of silver specific CRM’s.

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12 DATA VERIFICATION

12.1 WAI Personal Inspection

12.1.1 Introduction

WAI has conducted several site inspections in recent years. The most recent site visit to the property was performed by Dr Phil Newall, CEng, Managing Director (WAI) in June 2018.

12.1.2 2016 Inspection

During the Personal Inspection of the Sergeevskoye Project in late 2016 the historic trenches were in a poor condition and partly snow filled. Thus, the author had no opportunity to collect any direct samples for data verification purposes.

However, as part of the Personal Inspection, the author was able to follow a number of trenches, identify the location of drillholes and collapsed shafts.

In detail, this involved identification of the collar of hole C222A at Zone 23 (Figure 6.3) which lies in the western part of the area, then following trench K996 north into the Kozie area to drill hole C237 (Photo 6.2). Close to here, C238 collar was also observed.

Walking eastwards, many trenches were identified as well as the site of hole C141, Shaft 29, C139, C140 and Shaft 28 and C142 (Photo 6.3).

Turning south, and returning down slope, hole C215 collar was observed in the heart of Zone 23 occurrence (Figure 6.3).

Therefore, the author can, to a large extent, verify the positions of the historic trenching and drilling undertaken at Sergeevskoe.

12.1.3 2018 Inspection

During the 2018 personal inspection, many large trenches were viewed, some being cut with dozer, others with sampling on-going (channel samples being cut with a diamond saw).

Different styles of mineralisation were observed including vein type, breccia, faulted and stockwork.

Hole SDH18-33, which was being drilled by an Atlas Copco CS14 producing HQ core, was also viewed which was set to intersect Zone 23 (and maybe others).

The site visit also included an inspection of the base camp, core logging and core storage facilities, drill core sampling preparation and sample rejects storage facilities.

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In particular, several drillholes from different parts of the deposit were viewed.

Hole SDH17-1 from Zone 23, which is mineralised from 47 to 114m, shows a general fabric of a shear zone with breccia fragments, quartz veining, later carbonate veining and disseminated and massive sulphides. Hole SDH17-15 was also viewed. It was stepped back from SDH17-1 which shows similar structures and the highest gold grades related to the more “massive” sulphide zones (pyrite and arsenopyrite - Photo 12.1).

Photo 12.1: Massive Sulphides in Hole SDH17-15 Around 150m Depth

Core from Hole SDH17-17 on the next profile some 80m east was also viewed which shows continuous mineralisation from approximately 70 to 120m, but with varying grade (Photo 12.2).

Hole SDH18-24, drilled from Trench 18 in the Adit 5 area was also inspected. It shows considerable brecciated, blebby and disseminated sulphide mineralisation. Hole SDH18-31 which was drilled approximately 100m west of SDH18-24 also shows similar structures with considerable sulphide mineralisation in the upper parts (Photo 12.3).

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Photo 12.2: High Sulphide Zone, Hole SDH17-17 around 99m Depth

Photo 12.3: Massive Brecciated Sulphides in Hole SDH18-31 at 36m Depth

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In addition, Hole SDH17-13 at Kluchi West was also briefly inspected. It shows granite hosted mineralisation which has the appearance of an intense stockwork or sheeted veins.

Due to restrictions in Russia on travelling with core samples no independent samples of the drill core were collected by WAI.

12.2 Database Validation

As part of the standard Mineral Resource Estimate, WAI completed a database validation process to check for consistency between and within the database tables for any omissions, duplication, or erroneous values. In addition, a comparison of selected assay entries with laboratory source files supplied by Orsu were checked. No significant issues were identified.

12.3 WAI Opinion

In the opinion of WAI, the current trench and drill programme, logging and sampling procedures are consistent with recognised industry best practices and are considered adequate for this type of deposit and suitable for use in the current Mineral Resource Estimate.

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13 MINERAL PROCESSING AND METALLURGICAL TESTING

13.1 Introduction

As part of its 2017 exploration works, Orsu collected two samples from oxide material at Adit 5 and Kozie prospects for cyanidation tests. The samples consisted of rock fragments, 50mm in size and smaller. The tests included studies of physical properties as well as bottle roll and percolation column cyanidation. The study was conducted at the SGS Vostok Limited (“SGS”) laboratory in Chita, Russia, which is independent from Orsu. SGS subcontracted a mineralogical study to the Institute of Mineralogy, Uralian Branch, Russian Academy of Sciences in Miass, Russia, which is also independent from Orsu.

In 2018, Orsu collected sample WK18-1 at Klyuchi West occurrence, consisting of visually unoxidized rock fragments, 100mm in size and smaller. The intrusive rocks contain chaotically-oriented veinlets in voluminous gold-mineralized stockwork at the Klyuchi West prospect. The tests included studies of chemical and physical properties, gravity and flotation beneficiation, as well as bottle roll cyanidation of gravity, flotation and gravity flotation concentrates. The study was conducted at the Irgiredmet Institute (“Irgiredmet”) in Irkutsk, Russia, which is specialised in conducting the metallurgy tests and is independent from Orsu.

13.2 2017 Oxide Testwork

13.2.1 Chemical Composition

Sample TR5-17-1 (94.74kg) was collected from Trench S23TR17-5 at the Adit 5 prospect. Mineralogical analysis identified that rocks consist of quartz, tourmaline and potassic feldspars. The rock is strongly oxidised, with abundant kaolinite and goethite. There is free gold up to 0.1mm in size. The relic sulphides are mostly pyrite and subordinate arsenopyrite. SGS assayed 1.75g/t Au and 1.32g/t Ag in sample TR5-17-1, with 2.8% Stotal, 0.1% Ssulfidic, 0.15% Ctotal, and <0.05% Corganic. The oxidation state of sample TR5-17-1 is 99%.

Sample TR2-17-2 (80.52kg) was collected from Trench SKZTR17-2 (see Orsu press release November 9, 2017) at the Kozie prospect. Mineralogical analysis identified quartz, tourmaline and potassic feldspar. Due to oxidation, the sample comprises 10.6% of kaolinite and 1.6% of goethite. The sulphides are mostly pyrite, oxidised into goethite, and rare arsenopyrite. Sample TR2-17-2 also contains free gold up to 0.1mm in size. SGS assayed 3.02g/t Au and 1.72g/t Ag in this sample, with

1.55% Stotal, 0.15% Ssulfidic, 0.12% Ctotal, <0.05% Corganic. The oxidation state of sample TR2-17-2 is 90%.

Mineralisation in samples TR5-17-1 and TR2-17-2 has low concentration of base metals (zinc, lead, copper, nickel) totalling 0.11% and 0.063%, respectively. They reveal low concentrations of arsenic and antimony.

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13.2.2 Physical Properties

In sample TR5-17-1, SGS measured a specific gravity of 2.58t/m3 in all analysed rock fractions, and density of stacked heaps is variable from 1.50 to 1.85t/m3 for fractions -20mm, -10mm to -5mm. The porosity varies from 41.8% in fraction -20mm to 28.29% in fraction -5mm.

In sample TR2-17-2, SGS measured a specific gravity of 2.75t/m3 in all analysed rock fractions, and density of stacked heaps is variable from 1.56 to 1.46t/m3 for fractions -20mm, -10mm to -5mm. The porosity varies from 43.3% in fraction -20mm to 46.9% in fraction -5mm.

13.2.3 Bottle Roll Tests

Bottle roll cyanidation tests were conducted over 48 hours for variable rock fractions. In sample TR5- 17-1, the recovery into solution was:

• 73.70% for gold and 37.77% for silver from rock fraction -20mm; • 70.27% for gold and 54.09% for silver from rock fraction -10mm; • 86.59% for gold and 55.09% for silver from rock fraction -5mm; • 87.84% for gold and 67.33% for silver from rock fraction -1.75mm; and • 93.13% for gold and 81.19% for silver from rock fraction -0.075mm.

In sample TR2-17-2, the recovery into solution was:

• 83.94% for gold and 45.37% for silver from rock fraction -20mm; • 85.38% for gold and 68.19% for silver from rock fraction -10mm; • 85.23% for gold and 60.68% for silver from rock fraction -5mm; • 85.82% for gold and 63.22% for silver from rock fraction -1.75mm; and • 89.73% for gold and 67.94% for silver from rock fraction -0.075mm.

SGS concluded that gold in the analysed samples is mostly in free form, with very good recoveries and amenable to heap leaching. Most gold is recoverable into solution during a period of 8 hours.

13.2.4 Percolation Column Tests

The cyanidation tests in percolation columns were performed for rock fractions -20mm, -10mm and -5mm. The internal diameter of the percolation columns was 0.1m for each fraction. The columns were filled up to 0.9-1.6m. The columns were equipped with the sorption device for continuous sorption of gold onto China-made carbon ХНСР 20.

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For sample TR5-17-1, the recovery of metals onto activated carbon during a period of 36 days was:

• 85.17% for gold and 73.08% for silver from rock fraction -20mm; • 93.91% for gold and 73.84% for silver from rock fraction -10mm; and • 95.30% for gold and 77.59% for silver from rock fraction -5mm.

For sample TR-2-17-2, the recovery of metals onto activated carbon during a period of 36 days was:

• 91.72% for gold and 62.95% for silver from rock fraction -20mm; • 92.32% for gold and 69.09% for silver from rock fraction -10mm; and • 92.23% for gold and 69.31% for silver from rock fraction -5mm.

Gold and silver are irregularly distributed in rock fractions. In sample TR5-17-1, most gold occurs in fraction -1.7+0.075mm. In sample TR2-17-2, most gold was recovered from fraction -19.5+9.5mm. Most gold was recovered from fine fractions, with sharp increase in recoveries from fraction -0.075mm. This indicates that most gold is free and is in fine fractions.

Phase analysis showed that in sample TR5-17-1 there is 95.31% of gold that can be solved into cyanide. In sample TR2-17-2, there is 92.06% of gold that can be solved into cyanide.

13.3 2018 Metallurgical Testwork

13.3.1 Chemical Composition

Sample WK18-1 (175.7kg) was collected from the drill core of four holes drilled at Klyuchi West as part of the 2018 exploration programme. Mineralogical analysis identified that rocks consist of hydrothermally altered granite with numerous quartz-tourmaline veinlets with minor (0.8%) sulphides, mostly pyrite and rare chalcopyrite and arsenopyrite. Mineralogical analysis identified free gold (32%), with 95.9% of gold in <0.1mm fraction. Irgiredmet assayed 1.4g/t Au, with 0.352% Stotal,

0.35% Ssulfidic, 0.42% Ctotal, 0.017% As, 0.0074% Sb and <1g/t Ag, indicating absence of detrimental elements. The oxidation state of the sample was 38%. Microanalysis of gold grains revealed 87.6 – 93.7% Au and 7.3–12.4% Ag. Mineralogical analysis estimated 84.8% of gold in amenable to cyanidation form.

13.3.2 Physical Properties

In sample WK18-1, Irgiredmet measured a specific gravity of 2.67t/m3. The measured Bond index (ВWi) is 18.6kWt*h/t.

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13.3.3 Gravity and Flotation Tests

GRG-test of WK18-1 sample using Knelson KC-MD-3 concentrator recovered 52.9% of gold, with 1.06% yield of gravity concentrate grading 83.9g/t Au. The flotation study of gravity tailings produced a 69.8% recovery of gold into a 16.1g/t Au concentrate (3.1% yield) and 0.19g/t Au in tailings.

Flotation tests of WK18-1 sample were conducted on 95% grinding to -0.071mm class, with 79.6% of gold recovered into flotation concentrate (with 6.9% yield), grading 14.5g/t Au. The 65% grinding to -0.071mm class demonstrated a 78% of gold recovered into flotation concentrate (with 5.8% yield), grading 17.8g/t Au. In both cases, the concentration of gold in flotation tailings is 0.24g/t. This demonstrates that gold recovery is not critically dependent on the quality of grinding.

13.3.4 Cyanidation Tests

Direct cyanidation of WK18-1 sample demonstrated an 80% recovery of gold during 24 hours.

Cyanidation of the specially prepared gravity concentrate, grading 63g/t Au, recovered 82.6 to 85.7% of gold during 24 hours. Additional cyanidation of crushed gravity cakes results in a total of 89% recovery of gold. Cyanidation of the 0.8g/t Au gravity tailings recovered 78.2% of gold, with 0.19g/t Au remaining in tailings.

Cyanidation of the specially prepared flotation concentrate, grading 18g/t Au, recovered 79.82 to 80.65% of gold during 24 hours, with 0.19g/t Au reporting into flotation tailings. The cyanidation of the tailings showed 66.7% recovery of gold. The study by Irgiredmet showed that 85.8% of gold can be recovered using the gravity-flotation scheme with cyanidation.

13.4 Summary

Positive cyanidation test results for oxide samples from Adit 5 (85.17% to 95.3% recovery) and Kozie (91.72% to 92.32%) prospects have been revealed, amenable to heap leaching of oxide material. Sample WK18-1 (175.7kg) was collected from the drill core of four holes drilled at Klyuchi West as part of the 2018 exploration programme.

• Adit 5, sample TR5-17-1, grading 1.75g/t Au, showed an 85.17% to 95.30% recovery of gold; • Kozie, sample TR2-17-2, grading 3.02g/t Au, demonstrated gold recoveries of 91.72% to 92.32%; • Sample WK18, grading 1.4g/t Au, showed an 85.8% recovery of gold using the gravity- flotation scheme with cyanidation; and • Following additional cyanidation of crushed gravity cakes, total gold recovery of 89% was achieved.

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14 MINERAL RESOURCE ESTIMATES

14.1 Introduction

The Sergeevskoye Mineral Resource Estimate (MRE) was estimated by Mr Andrey Tsoy under the supervision of Dr Phil Newall, both of WAI, the latter a Qualified Person for the purpose of Mineral Resource reporting under NI 43-101 and JORC Code (2012).

The basis, method of estimation and classification of the MRE under the JORC Code (2012) do not materially vary from the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves (CIM 2014). The present Mineral Resource estimates have been classified and reported in accordance with NI 43-101 guidelines and classifications adopted by CIM Council in May 2014.

Mineral Resources are not Mineral Reserves and have not demonstrated economic validity. The extent to which mining, metallurgical, marketing, infrastructure, permitting, marketing and other financial factors may affect the eventual Mineral Resource estimate is not precisely defined. The declared Mineral Resource estimate was constrained by notional economic assumptions to demonstrate reasonable prospects of eventual economic extraction as required by CIM (2014).

14.2 General Methodology

The MRE was carried out with a 3D block modelling approach using Datamine Studio 3 software (Datamine). The estimate is based on surface trench and diamond drilling data supplied by Orsu with an effective date of 15th of April 2019. Exploration data were imported and verified before existing geological and mineralisation envelopes were re-defined creating 3D wireframes based on appropriate cut-off grades representing the various mineralised zones seen at Sergeevskoe.

Sample data were selected using the geological and mineralisation wireframes and selected samples were assessed for outliers before being composited as the basis for geostatistical study. The wireframe envelopes were used as the basis for a volumetric block model based on a parent cell size of 10m x 10m x 10m. Variogram models were constructed based on composite data and used for ordinary kriging and variogram ranges for using Inverse Power Distance squared (IPD2) as the principal estimation methodology. The resultant estimated grades were validated against the input composite data and classified in accordance with the guidelines of the JORC Code (2012) and based on an assessment of geological and grade continuity and assay data quality. Mineral Resources were further limited based on an expectation of eventual economic extraction by being constrained within an optimised open pit shell generated using appropriate economic and technical parameters.

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14.3 Data Transformations and Software

14.3.1 Data Transformations

All data are stored using the UTM50U system. Therefore, transformations of drillhole or other data were not required.

14.3.2 Software

The MRE has relied on several software packages for the various stages of the process. However, the main data preparation and validation, wireframe modelling, statistical and geostatistical analysis, block modelling, estimation and validation were performed in Datamine Studio 3 version 3.22.84.0.

14.4 Database

14.4.1 Exploration Database

14.4.1.1 Input Data

The exploration database was supplied as a standard sample file in Datamine format. The information about sample file structure is presented in Table 14.1. The file contains data for both drillholes and surface trenches which were carried out at Sergeevskoe in 2017-2018.

Table 14.1: Sample File Structure Column Explanation Column Explanation BHID Hole Number EOH Hole depth FROM Interval from Au_PPM Au, ppm TO Interval to Ag_PPM Ag, ppm LENGTH Interval length As_PPM As, ppm X Sample centre easting Cu_PPM Cu, ppm Y Sample centre northing Sb_PPM Sb, ppm Z Sample centre elevation Ni_PPM Ni, ppm A0 Sample bearing Co_PPM Co, ppm B0 Sample dipping MS Magnetic susceptibility C0 Sample plunging LITH Lithological coding

14.4.1.2 Database Summary

A summary of the exploration database is shown in Table 14.2. The database contains data for drillholes and trenches undertaken by Orsu only, no historical data is included.

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Table 14.2: Sergeevskoe Database Summary Sample Type No. Total Length (m) Number Av Length (m) Drillholes 82 12,486 1.14 17,107.80 Trenches* 48 5,170 1.00 6,089.00 Total 130 17,656 1.10 23,196.80 *Including re-sampled intervals/control samples

Figure 14.1 is a plan view showing the location of all exploration data. Two drillholes and one trench on the western flank of Sergeevskoe are approximately 480m apart from most of the exploration drillholes and trenches and therefore excluded in this MRE.

Figure 14.1: Plan View of Drillhole (green) and Trench (blue) Location at Sergeevskoe

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14.5 Wireframe Modelling / Mineralised Domains

14.5.1 Introduction

The following wireframe models were supplied by Orsu (Table 14.3).

Table 14.3: Wireframe Models Supplied by Orsu Description Model Type Topographical survey DTM2 Overburden sediments DTM Oxide mineralisation boundary DTM Tectonic structures (fault) DTM Mineralised zones Enclosed W/f

There is no data for analytical definition of the oxide/primary mineralisation boundary at the moment therefore it was accepted for this preliminary MRE that the oxide/primary limit is at a depth of 30m from the current topographical surface. No lithological wireframe model was used for current MRE.

14.5.2 Mineralisation Wireframes (Domains)

Mineralisation wireframe modelling was carried out by Orsu using the following parameters as a guide:

• Cut-off grade – 0.5g/t Au; • Minimum mining width – 2.0m; and • Maximum waste interval – 2.0m.

However, the grade and thickness continuity have a quite erratic behaviour in some of the drillhole intersections. For this reason, and in order to maintain mineralised continuity, and/or trying to avoid a redundant split of mineralised intervals, there was some flexibility permitted in the last two parameters (minimum mining width and maximum waste interval) during wireframe modelling.

WAI has reviewed the mineralisation domains and made the necessary corrections for wireframe cross-overs, wireframe overlapping, more accurate sample clipping (to drillhole and/or trench intersections), and zone interpretation.

A total of 122 mineralised vein-shaped bodies separated into 9 domains (‘series’) have been modelled at Sergeevskoe (Figure 14.2). The domain coding and number of individual zones in each domain is presented in Table 14.4.

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Table 14.4: Domain Coding at Sergeevskoe Area (Domain) Name Domain Series (Zone) Number of Zones Adit 5 East 100 14 Adit 2 West 200 15 Intermediate 300 7 Kluchi West 400 22 Kozie 500 22 Zone 23 East 600 9 Zone 23 Middle 700 11 Zone 23 West 800 13 Peak Kluchi 900 9 Total 122

Figure 14.2: Mineralised Domain Wireframe Models at Sergeevskoe (Fault Zone – grey)

14.6 Statistical Analysis and Variogram Modelling

14.6.1 General Statistics

WAI has coded individual wireframes for different zones and completed a general statistical analysis based on the number of drillholes, samples, and composites for individual zones as summarised in APPENDIX 2. The average length of the samples is 1.08m therefore the composite length of 1.0m was chosen for Sergeevskoe.

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The general statistics for composites within mineralised wireframes is presented in Table 14.5.

Table 14.5: General Statistics for Composites Inside Wireframe Composite Standard Standard DOMAIN Metal Minimum Maximum Mean Variance No. Deviation Error 100 AU 552 0.02 32.00 1.79 8.90 2.98 0.13 200 AU 374 0.07 12.60 1.30 2.23 1.49 0.08 300 AU 150 0.12 23.00 1.36 5.40 2.32 0.19 400 AU 915 0.03 335.00 1.92 131.67 11.47 0.38 500 AU 337 0.18 15.10 1.36 2.90 1.70 0.09 600 AU 197 0.06 22.59 1.42 6.09 2.47 0.18 700 AU 490 0.05 17.70 1.63 4.97 2.23 0.10 800 AU 199 0.10 11.70 1.71 3.72 1.93 0.14 900 AU 32 0.21 5.21 0.99 0.77 0.88 0.15

To identify the need for top-cutting and to establish the top-cut levels the selected samples were analysed by zone with decile grade analysis and log probability graphs.

Decile analysis is a recognised and practical technique for analysing outlier data and determining what top-cut levels may be appropriate. In decile analysis, samples are rank-ordered by grade and then the grade levels corresponding to the first 10% samples are determined followed by 20%, 30% etc. The very top “decile” is also examined in “percentiles”, as this is often where most detailed analysis is required. By examining the increase in amount and proportion of sampled metal within each decile and percentile step, it is often possible to gain a much clearer understanding of where grades become noticeably anomalous.

Generally speaking, if the top decile has more than 25-30% of the sampled metal, then the cutting of high assays may be warranted. If the top 2 or 3 percentiles contain greater than 10% of the total metal content, then the cutting or isolation of these erratic high-grade outliers in a separate high grade zone is advisable.

APPENDIX 3 presents the decile analysis for Au in zones which require Au capping. In this example, for Zone 109, 45.18% of the metal for the zone is contained in the top decile and 15.25% of the metal is contained within the top percentile. Further analysis of this zone indicates 1 anomalously high Au grades outside the general sample population that require grade capping.

The log probability plots for each zone were studied to identify the presence of any outlier values. Pronounced kinks or shoulders in the log-probability plots are usually good indications of the presence of outlier values and are presented in APPENDIX 4.

WAI also analysed silver grade distribution for the individual zones and suggest that top cut needs to be applied for zones 414, 603 and 807. The decile data for these zones is presented in APPENDIX 5 along with the general statistic plots are presented in Figure 14.3, Figure 14.4 and Figure 14.5.

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Top cuts were applied to the identified outliers in order to reduce any undue influence during grade estimation. Values above the top cut value are reduced to that value. Identified outliers were checked before top-cutting to ensure that they were not clustered in one particular area forming a geographically distinct high-grade zone. The levels of top-cut applied per zone for gold and silver are presented in Table 14.6 and Table 14.7 respectively.

Table 14.6: Top Cut Applied at Sergeevskoe, Gold Au grade (g/t) Total No. of Zone No. of % loss Composite Before Top Cut Top Cut Value After Top Cut Composite Cut 109 45 1.77 7.0 1 1.66 6% 110 83 2.68 15.0 2 2.33 13% 113 68 2.70 12.0 4 2.19 19% 304 78 1.70 10.0 2 1.48 13% 403 65 1.88 10.0 1 1.83 3% 409 33 1.46 10.0 1 1.35 8% 413 62 1.25 10.0 2 1.17 6% 414 222 4.20 50.0 2 3.06 27% 420 127 1.06 10.0 1 0.98 7% 504 66 2.21 10.0 4 2.12 4%

Table 14.7: Top Cut Applied at Sergeevskoe, Silver Ag grade (g/t) Total No. of Zone No of % loss Composite Before Top Cut Top Cut Value After Top Cut Composite Cut 414 201 4.40 50.0 1 4.23 4% 603 57 9.13 50.0 1 4.94 46% 807 48 72.66 300.0 3 33.45 54%

14.6.2 Variogram Modelling

The top-cut composite was used for modelling of experimental semi-variograms. The individual zones do not capture enough samples to model reasonable variograms therefore the composites from individual domains were used for variogram modelling. The variogram models were produced for all domains except 300 and 900. An example of the along strike modelled variogram for zone domain 700 is shown in Figure 14.3 (Along Strike), Figure 14.4 (Down Dip), and Figure 14.5 (Cross Strike), the parameters of the modelled variograms are presented in Table 14.8.

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Figure 14.3: Au Modelled Variogram, Domain 700, Along Strike

Figure 14.4: Au Modelled Variogram, Domain 700, Down Dip

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Figure 14.5: Au Modelled Variogram, Domain 700, Cross Strike

Table 14.8: Modelled Variogram Parameters for Sergeevskoe Strike Au Domain 100 200 400 500 600 700 800 File ztcomp1a ztcomp2 ztcomp4 ztcomp5 ztcomp6 ztcomp7 ztcomp8 Lag 21 8 22 10 32 24 24 Nlag 8 8 6 8 6 8 6 HorAng 50 50 50 80 80 60 60 VerAng 50 50 50 80 80 60 60 CylRad 100 100 100 100 100 100 100 Ang1 40 170 140 108 100 75 120 Ax1 Z Z Z Z Z Z Z Ang2 0 0 0 0 0 0 0 Ax2 X X X X X X X VarType RV RV RV RV RV RV RV MoRefNo 1 4 7 10 13 16 19 Nugget 0.323 0.221 0.359 0.3 0.133 0.121 0.297 R1 32 19.4 31.1 36.5 81.4 34 36.6 C1 0.028 0.072 0.039 0.043 0.155 0.204 0.117 S1 0.349 0.293 0.398 0.343 0.288 0.405 0.414 R2 48.6 24.5 44.7 48.5 93.1 50 48.5 C2 0.045 0.129 0.092 0.041 0.091 0.179 0.128 S2 0.394 0.422 0.49 0.384 0.379 0.499 0.542 Ddip Au Domain 100 200 400 500 600 700 800 File ztcomp1a ztcomp2 ztcomp4 ztcomp5 ztcomp6 ztcomp7 ztcomp8 Lag 10 11 13 10 11 10 14 Nlag 10 8 10 8 6 6 8 HorAng 50 50 50 60 60 60 60 VerAng 50 50 50 60 60 60 60 ZT61-1731/MM1301 Final V2.0 Page 101 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

Table 14.8: Modelled Variogram Parameters for Sergeevskoe Strike Au CylRad 100 100 100 100 100 100 100 Ang1 130 240 230 188 10 345 35 Ax1 Z Z Z Z Z Z Z Ang2 90 80 85 85 85 80 75 Ax2 X X X X X X X VarType RV V RV RV RV RV RV MoRefNo 3 6 9 12 15 18 21 Nugget 0.352 0.47 0.228 0.206 0.367 0.448 0.289 R1 22 27.8 18.4 29.3 12.1 12.8 21.4 C1 0.005 0.6 0.123 0.044 0.03 0.023 0.114 S1 0.358 1.07 0.351 0.25 0.396 0.472 0.403 R2 36.1 38.6 39.1 39.7 32 21.6 43.4 C2 0.038 0.49 0.049 0.093 0.12 0.07 0.093 S2 0.396 1.55 0.4 0.343 0.516 0.542 0.496 X-strike Au Domain 100 200 400 500 600 700 800 File ztcomp1a ztcomp2 ztcomp4 ztcomp5 ztcomp6 ztcomp7 ztcomp8 Lag 2 6 10 1 10 2 2 Nlag 8 10 6 8 6 12 10 HorAng 50 50 50 60 60 60 60 VerAng 50 50 50 60 60 60 60 CylRad 100 100 100 100 100 100 100 Ang1 130 60 50 8 10 165 35 Ax1 Z Z Z Z Z Z Z Ang2 0 0 0 0 0 0 0 Ax2 X X X X X X X VarType RV RV RV RV RV RV RV MoRefNo 2 5 8 11 14 17 20 Nugget 0.098 0.276 0.256 0.077 0.201 0.043 0.142 R1 2.6 12.1 17 2.9 23.8 3.1 4.3 C1 0.211 0.138 0.042 0.198 0.097 0.396 0.124 S1 0.309 0.414 0.298 0.274 0.298 0.439 0.266 R2 4.2 16.8 30.3 4.2 29.4 8 6.3 C2 0.177 0.035 0.036 0.163 0.154 0.143 0.208 S2 0.485 0.449 0.333 0.437 0.452 0.581 0.473

14.7 Block Modelling

14.7.1 Block Model Prototype

The block model was constructed using Datamine with a parent cell size of 10m x 10m x 10m (along strike, across strike and vertical), sub-celling was allowed down to 2.0m x 2.0m x 2.0m. The block model was created with respect to overburden and oxide/primary material and within all individual zone wireframes. The block model also reflects the DTM topographical surfaces at Sergeevskoe. No rotation has been applied to the model. A summary of the parameters used in the model prototype is shown in Table 14.9.

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Table 14.9: Block Model Prototype Parameters Direction Size X 20,658,606 Model Origin Y 5,935,960 Z 638 X 10 Parent Block Size Y 10 Model Z 10 Parameters X 161 Number of Blocks Y 159 Z 46

The dynamic anisotropy parameters reflecting true dip and true azimuth were interpolated in the blocks for each individual mineralised zone using the centre of triangles from a DTM surface reflecting the central axe of the individual zones

14.7.2 Density

Orsu has provided WAI with density measurements carried out on drill core samples in 2017-2018. The measurement was done for both mineralised and wall rock material and separated into oxide and primary mineralisation based on the geological logging of drill core. The summary of density data is presented in the Table 14.10.

Table 14.10: General Density Data at Sergeevskoe Section No. of Drillholes No. of Samples Oxide 6 97 Primary 9 203 Total 15 300

There is no density measurement for overburden material, however it has been accepted as 2.0t/m3 by analogy with Kluchevskoye data.

The moisture content and density tables are presented in APPENDIX 6.

The natural moisture content for oxide material was measured for 49 samples producing an average value of 2.4%. The density value for oxide material with respect to natural moisture was accepted as 2.65t/m3 for MRE at Sergeevskoe.

The primary material moisture content measurement was completed on 70 samples with a resultant average moisture content of 1.0%.

The average density for primary material with Au grade less than 0.5g/t is 2.74t/m3, therefore the density of waste for primary material was accepted as this value.

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The relationship between gold grade up to 10g/t Au and density for primary material is presented in Figure 14.6.

Figure 14.6: Au Grade – Density Relationship for Primary Mineralisation

The summary of density values used for the MRE at Sergeevskoe is as follows:

• Overburden material – 2.0t/m3; • Oxide mineralisation and waste material – 2.65t/m3; • Primary waste material – 2.74t/m3; • Primary mineralisation – Density = -0.0072 x (Au g/t)2 + 0.1363 x (Au g/t) +2.6687.

14.7.3 Grade Interpolation

WAI has used Inverse Power Distance Squared (IPD2) as the principal interpolation method and Ordinary Kriging (OK) as the secondary (check) method for Au and Ag. Zonal control and dynamic anisotropy were used for grade interpolation. Six estimation passes were run with each one using a consecutively larger ellipsoid to ensure that all blocks were estimated.

The grade interpolation plan is presented in Table 14.11. The search ellipsoid parameters are presented in Table 14.12. For Domain 300 and Domain 900 the search ellipsoid parameters of Domain 400 and Domain 800 were used respectively for grade interpolation.

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Table 14.11: Grade Interpolation Plan Run 1 (strike x downdip x cross-strike) 1 x 1 x 1 radii Run 2 (strike x downdip x cross-strike) 2 x 2 x 2 radii Run 3 (strike x downdip x cross-strike) 3 х 3 х 3 radii Run 4 (strike x downdip x cross-strike) 4 х 4 х 4 radii Run 5 (strike x downdip x cross-strike) 8 х 8 х 8 radii Run 6 (strike x downdip x cross-strike) 12 х 12 х 12 radii Min comp no (run 1/2/3/4/5/6) 2/3/1/1/1 Max comp no (run 1/2/3/4/5/6) 16/1515/15/15 Min Octan no (run 1/2/3/4/5/6) 1/1/1/1/1/1 Max comp no from 1 hole 4/4/4/4/4 NB – 1) Dynamic Anisotropy used for search ellipsoid orientation

Table 14.12: Search Ellipsoid Radii (m) Domain Strike Downdip Cross-Strike 100 48.5 36.1 4.2 200 24.5 38.6 16.8 300 44.7 39.1 30.3 400 44.7 39.1 30.3 500 48.5 39.7 4.2 600 93.1 32 29.4 700 48.5 21.6 8 800 48.5 43.4 6.3 900 48.5 39.7 4.2

14.7.4 Model Validation

14.7.4.1 Introduction

Following grade estimation, a statistical and visual assessment of the block model was undertaken:

• To assess successful application of the estimation passes; • To ensure that as far as the data allowed, all blocks within mineralisation domains were estimated; and • To ensure the model estimates performed as expected.

The model validation methods carried out included global statistical grade validation, a visual assessment of grade, and swath plot (model grade profile) analysis.

14.7.4.2 Statistical Comparisons

Statistical analysis of the block model was carried out for comparison against the composited drill hole data. This analysis provides a check on the reproduction of the mean grade of the composite data against the model over the global domain. Typically, the mean grade of the block model should not be significantly greater than that of the samples from which it has been derived.

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WAI has carried out a comparison between interpolated grade in the block model (BM), grade in the original samples, and 1.0m composites used for interpolation. The comparison of gold grade in the block model, samples and composites for Zone 100 is presented in Table 14.13 with the remaining zones presented in APPENDIX 7.

Table 14.13: Comparison of Gold Grade in Block Model, Samples and Composites for Zone 100 Grade Au (g/t) Zone Volume (,000m3) Tonnes (Kt) Composite No. Sample Composite BM 101 2.30 6.08 9 0.34 0.34 0.50 102 43.61 120.41 9 1.20 1.20 1.14 103 12.64 35.15 10 1.14 1.14 1.21 104 58.11 163.12 30 1.32 1.32 1.35 105 46.10 128.01 22 1.15 1.15 1.11 106 44.08 123.89 34 1.34 1.34 1.44 107 203.34 576.14 112 1.26 1.29 1.62 108 91.97 254.99 108 1.46 1.46 1.18 109 76.53 211.92 45 1.77 1.66 1.34 110 186.50 530.50 83 2.63 2.28 2.19 111 137.75 381.17 28 0.96 0.96 0.89 112 18.22 51.83 14 1.41 1.41 1.70 113 168.43 464.24 68 2.47 2.01 1.32 114 77.86 216.83 47 1.86 1.87 1.53

14.7.4.3 Visual Comparison

A visual comparison of composite sample grade and block grade was conducted in cross section and in plan. An example of visual comparison of gold grade in the block model and composite within drillholes is presented in Figure 14.7. Visually the model was generally considered to reflect the composite grades.

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Figure 14.7: Block Model Grade vs Original Samples

14.7.4.4 Local Comparison (SWATH plot)

A swath plot is a graphical display of the grade distribution derived from a series of bands, or swaths, generated in several directions through the deposit. The swath plot compares the grade within these bands of the composite samples and the block estimated grades for the different methodologies used. Where the composite grades and the estimated grades show a good correlation, greater confidence can be placed on the estimate.

Swath plots were generated to compare the average block model grade and grade in the composite data (example Figure 14.8 and Figure 14.9). A series of 100m slices from south to north and from east to west were used to assess the average grade for the block model and for composite data. A generally close relationship was observed between composite and block grade across the model. Some deviations between the composite and estimated block grade occur at the edges of the deposit where reduced tonnages accentuate the differences in grade. Differences in grade also become more apparent in lower grade areas. These lower grade areas are typically where the density of drilling decreases and a few composites can have a disproportionate effect on the estimated grades.

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Figure 14.8: SWATH Plots for Block Model Grade vs Composite Data, All Zones, South-North

Figure 14.9: SWATH Plots for Block Model Grade vs Composite Data, All Zones, West-East

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14.7.4.5 Validation Summary

Globally no indications of significant over or under estimation are apparent in the model nor were any obvious interpolation issues identified. From the perspective of conformance of the average model grade to the input data, WAI considers the model to be a satisfactory representation of the sample data used and an indication that the grade interpolation has performed as expected. In terms of conformance to the drill hole composite data, WAI considers the IPD(2) interpolation method to most closely represent the drillhole data. The Mineral Resource Estimate is therefore based upon the IPD(2) grade estimation for all zones.

As a general comment, the validations only determine whether the grade interpolation has performed as expected. Acceptable validation results do not necessarily mean the model is correct or derived from the right estimation approach. It only means the model is a reasonable representation of the data used and the estimation method applied.

14.8 Mineral Resource Classification

The Sergeevskoe Gold Project MRE has been prepared and classified in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves [the JORC Code (2012)] and CIM Definition Standards on Mineral Resources and Mineral Reserves (CIM 2014).

14.8.1 Considerations for Sergeevskoe Resource Classification

14.8.1.1 General

To classify the Sergeevskoe deposit, WAI has taken into account the following indicators:

• Geological Continuity and Complexity; • QAQC Results - Quality of Data; • Spatial Grade Continuity - Results of Geostatistical Analysis; and • Quality of Block Model.

14.8.1.2 Geological Continuity and Complexity

It should be noted that the Sergeevskoe Gold Project is considered to be at an early stage of development, based on limited exploration data, and that the interpretation of the mineralisation is largely based both on assumed geological/structural features of the deposit and the existing mineralised intercepts. Furthermore, there is no robust definition of oxide/primary mineralisation based on the appropriative assay data and/or metallurgical testwork. As such, the mineral resources are considered to best reflect an Inferred classification “for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity.”

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14.8.1.3 Quality of Data

The Mineral Resource Estimate relies on the data of the recent exploration campaign which were carried out in 2017-2018. QA/QC results of recent drilling show acceptable results when measuring accuracy, precision and contamination.

14.8.1.4 Spatial Grade Continuity

An assessment of spatial grade continuity is important when assigning classification to a Mineral Resource. The confidence that can be placed in the variogram parameters is a major consideration when determining classification. The data used in geostatistical analysis resulted in reasonably robust along strike and down dip variogram structures for Au allowing the determination of appropriate search parameters.

However, it should be noted, that geostatistical analysis was carried out for Domains of the zones rather than for individual mineralisation zones which do not capture enough samples for robust variogram modelling.

14.8.1.5 Veracity of Block Model

Validation of the block model has shown the estimated grades to be a good reflection of the input composite grades. Visual and statistical checks reveal no evidence of major under or over estimation.

14.8.2 Mineral Resource Classification

14.8.2.1 Introduction

WAI considers that the Sergeevskoe Project has been sufficiently explored to assign an Inferred Mineral Resources only as defined by the JORC Code (2012) and CIM (2014).

Confidence in the estimate of Inferred Mineral Resources is not sufficient to allow the results of the application of technical and economic parameters to be used for detailed planning in Prefeasibility or Feasibility studies.

14.8.2.2 Reasonable Prospects of Economic Extraction

For a deposit, or portion of a deposit, to be classified as a Mineral Resource there must be reasonable prospects for eventual economic extraction (CIM (2014) and the JORC Code [2012]). The model classified as described above was therefore further limited by economic and technical parameters as described in this section.

The prospects for eventual economic extraction were tested by running an open pit optimisation using NPV Scheduler with the parameters listed in Table 14.14. WAI considers that these assumptions are reasonable at this stage of the Sergeevskoye Project. ZT61-1731/MM1301 Final V2.0 Page 110 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

Table 14.14: Pit Optimisation Parameters Parameter Unit Value US$/t Ore Primary = 1.5 US$/t Ore Oxide = 1.2 Mining costs US$/t Waste Rock 1.2 US$/t Overburden 1.0 Processing cost US$/t ore 8 G & A US$/t ore 1.5 Royalty Cost % 6 Primary 85% Metallurgical Recovery % Oxide 93% Pit Slope Angles ° 51 Losses % 0% Dilution % 0% Commodity Price US$/oz 1,350

14.8.2.3 Mineral Resource Estimate

The Mineral Resource Estimate for the Sergeevskoe Gold Project is prepared and classified in accordance with the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves, the JORC Code, 2012 Edition and CIM (2014). The estimate is based on surface trench and diamond drilling data supplied by Orsu with an effective date of 15th of April 2019.

WAI is not aware, at the time of preparing this report, of any modifying factors such as environmental, permitting, legal, title, taxation, socioeconomic, marketing, and political or other relevant issues that may materially affect the Mineral Resource estimate herein; nor that the Mineral Resource estimate may be affected by mining, metallurgical, infrastructure or other relevant factors.

The grades in the final resource model were derived using the Inverse Power Distance Squared estimation method for Au. The Mineral Resources are based on the technical and economic parameters applied in open pit optimisation summarised in Table 14.14.

WAI has taken into account the licence boundary of the Sergeevskoe Gold Project as this truncates the mineralisation extending to the east, and towards the Kluchevskoe open pit mine.

The undiluted (sub-celled) block model is presented in Table 14.15, limited by an optimised pit shell constrained by the licence boundary to the east.

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Table 14.15: Undiluted Mineral Resource Estimate for the Sergeevskoe Gold Project Open Pit Constrained by Licence COG Tonnes Grade Contained Metal (Mt) (g/t Au) Au (‘000 oz) 0.4 25.22 1.47 1,192 0.5 25.09 1.47 1,186 0.6 23.93 1.52 1,169 0.7 21.59 1.61 1,118 0.8 18.64 1.75 1,049 Notes: 1. Mineral Resources reported for the Sergeevskoe Gold Project are classified as Inferred. 2. Mineral Resources are not reserves until they have demonstrated economic viability based on a Feasibility Study or Pre-Feasibility Study. 3. Mineral Resources are reported inclusive of any Ore Reserves. 4. All figures are rounded to reflect the relative accuracy of the estimate, apparent errors may occur due to rounding. 5. The mineral resources reported are both undiluted, representing the sub-celled model with no account of potential mining dilution of the mineralisation as a result of the narrow mineralised veins, as well as diluted (regularised to 5.0m blocks). 6. The block model has been constrained by an open pit optimisation study based on economic and technical parameters as provided by Orsu Metals Corporation and both constrained and unconstrained by the licence area. 7. The estimate is based on surface trench and diamond drilling data supplied by Orsu with an effective date of 15th of April 2019. 8. Mineral Resources for the Sergeevskoe Gold Project have been classified in accordance with the guidelines of the JORC Code (2012) by Dr Phil Newall, an independent Competent Person as defined by JORC. 9. Contained metal refers to estimated contained metal in the ground not adjusted for metallurgical recovery.

It is worth noting that approximately 18% of mineralisation modelled into wireframes is truncated at the licence boundary, as the structures continue eastwards towards the Kluchevskoe open pit mine.

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15 MINERAL RESERVE ESTIMATES

No Mineral Reserve (CIM), or Ore Reserve under the JORC Code (2012), has been defined for Sergeevskoe at this stage of development.

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16 MINING METHODS

Sergeevskoe is not an advanced property, and therefore this section does not apply.

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17 RECOVERY METHODS

Sergeevskoe is not an advanced property, and therefore this section does not apply.

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18 PROJECT INFRASTRUCTURE

Sergeevskoe is not an advanced property, and therefore this section does not apply.

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19 MARKET STUDIES AND CONTRACTS

Sergeevskoe is not an advanced property, and therefore this section does not apply.

However, gold is a readily traded commodity and thus no specific market study was carried out. Advice regarding the forward looking gold price was provided by Orsu and the Project assumes US$1,350/oz at the date of this MRE study.

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20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT

20.1 Introduction

The Project is required to comply with national and local Russian Federation Legislation which locally will include water and forest protection and ground contamination. However, at this time, only limited data are available.

20.2 Environmental Studies

An ‘Information Report on Environmental Baseline Studies’ was completed in 2016. This study covers only surface water and radioactivity of soils and bottom sediments.

Some 50 water samples were collected from 12 sites in and around the license area which indicate that the surface water system in the Project area has been disturbed and polluted as a result of historic mining activities. A full baseline and impact assessment is needed to quantify the current surface water and to ensure that the potential liabilities from the proposed Project are understood and appropriately mitigated to not cause further adverse impacts.

For soils, during the 2016 baseline data collection, 126 soil samples were taken from 12 locations around the license area. These were tested for chemical, radiometric and physical properties.

Some soil and stream bed samples contain elevated concentrations of copper, zinc, arsenic and sulphur due to the influence of historical mining works. A full assessment of potential impacts to soil, and resultant management and mitigation will be required.

A site-specific study of local flora and fauna has not yet been carried out and will be required for the preceding phases of work.

20.3 Social and Communities

The populations of the nearby Kluchevskiy village and the settlement of Davenda are in part populated by former employees of both closed and operating mining enterprises and therefore provide a pool of skilled labour. Other main industries in the region include alluvial and hard rock gold mining, with forestry enterprises, railway maintenance and motor transport.

The close proximity of the project to the aforementioned villages and the presence of alluvial mining means that a stakeholder mapping exercise is vital. Key stakeholders should be identified, and a full social impact assessment carried out.

Currently, no public consultation has occurred. This is required as part of the Russian OVOS process and the international ESIA process. Following on from the initial stakeholder mapping and social baseline data collection, formal public hearings presenting the finding of the OVOS / ESIA are required.

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The early stage of the Project and limited site-specific data means that several additional baseline studies are required to satisfy both Russian legislation and international best practice. Whilst the baseline completed in 2013 for the Klyuchevskoe Project is detailed, legislation requires that site specific studies are complete.

A full OVOS and ESIA will be required following the baseline collection to assess potential environmental and social liabilities and satisfy legislation.

Due to the close proximity of the Sergeevskoe Project to the Kluchevskoye Project, a cumulative impact assessment is vital to ensure an understanding of potential liabilities.

20.4 Conclusion

At this initial stage in the Project there is limited site specific data regarding environmental and social aspects. The impact assessment or OVOS, permitting process and community relations work are required to begin at the soonest possible time to ensure that the level of detail is sufficient for the Project to proceed to Pre-Feasibility and Feasibility study level.

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21 CAPITAL AND OPERATING COSTS

Sergeevskoe is not an advanced property, and therefore this section does not apply.

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22 ECONOMIC ANALYSES

Sergeevskoe is not an advanced property, and therefore this section does not apply.

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23 ADJACENT PROPERTIES

23.1 Introduction

The following information comes from various sources including the public domain, although the author has been unable to verify the information and that the information is not necessarily indicative of the mineralisation on the property that is the subject of this technical report.

Sergeevskoe lies within the well-developed mining area in the Trans-Baikal region effectively sandwiched between two significant gold assets hosting multi-million ounce deposits.

The eastern boundary of Sergeevskoe license lies immediately adjacent to the Kluchevskoe open pit mine, which historically produced 1.3Moz of gold, whilst the recently commissioned (Dec 2014) Alexandrovskoe gold mine, lies just to the west of the Sergeevskoe license (Figure 23.1).

Figure 23.1: Location of Adjacent Properties (Orsu)

23.2 The Kluchevskoye Deposit

23.2.1 Introduction

The abandoned Kluchevskoye mine is located immediately to the east of the Sergeevskoe licence area, and it is the mineralisation extensions from this deposit that form the main target at Sergeevskoe.

After a brief period of exploitation in 1901-1910, the Kluchevskoye mining operations restarted in the 1930’s from which time open pit mining, crushing and milling, and flotation metallurgical operations were operated. Production ceased in 2002.

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The village of Kluchevskoye, which is home to approximately 1,500 people, is established near the abandoned open pit.

23.2.2 Geology & Mineralisation

The Kluchevskoye gold deposit is located within the Mogocha Gold District. The region predominantly comprises various intrusive granites surrounded by metamorphic rocks. Plutons from the Middle Palaeozoic (Olekma Complex), Permian (Amanan Complex) and Jurassic (Amudzhikan Complex) intrude the metamorphic rocks and host a number of gold and molybdenum deposits.

Intrusive lithologies include biotitic granites, granodiorites, diorites, quartz-diorites and granitic- porphyries, with swarms of late northwest-trending granite porphyries. Some later dolerite dykes and porphyries have intruded the granitoid and granitic rock sequences, as illustrated in Figure 7.1.

At Kluchevskoye, the granitoid complexes are located adjacent to a marked flexure (dilational jog) in the regional east-west trending “Latitudinal (Shirotnyi) Fault”, a segment of the regional Mogocha- Bushuley Fault Zone, marking the contact between Proterozoic and Palaeozoic to Mesozoic granitoids. The Kluchevskoye-Davenda deposit cluster is hosted by the Davenda granite massif which has a strike length of 50km and a width of 2 - 3km.

Gold and molybdenum mineralisation is related with the porphyry intrusions of Amudzhikan Complex and associated with the endocontact and exocontact zones of the Jurassic subvolcanic massif.

There are seven deposits and several other occurrences of gold, molybdenum or copper mineralisation, the most important being the Kluchevskoye and Alexandrovskoye gold deposits, and the mined out Davenda molybdenum deposit.

23.2.3 Historic Production

The Kluchevskoye deposit has had a long history of mining and a summary of the production data is shown in Table 23.1.

However, over and above the reserves produced from Kluchevskoye, the deposit also still contains significant resources which have formed the target of recent interest at the deposit, culminating in the proposed deal signed October 16, 2016.

23.2.4 Current Status

Five players from BRICS nations have signed an agreement to develop the Kluchevskoye gold deposit at a pre-production investment of US$400-500M.

The five players include SUN Gold Ltd, China National Gold Group Corp (China National Gold or CG), the Russian Sovereign Investment Fund, Far East and Baikal Region Development Fund (FEDF), and

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Table 23.1: Recorded Historical Production from Kluchevskoye Tonnage Grade Au Year (kt) (g/t Au) (oz) 1936-1976 8,130 3.65 954,057 1977 246 1.94 15,344 1978 322 1.86 19,256 1979 1,469 2.24 105,764 1980 1,002 2.25 72,484 1981 626 2.20 44,278 1982 238 1.79 13,697 1983 390 1.73 21,692 1894 279 1.77 15,877 1985 198 1.72 10,949 1986 164 1.46 7,698 1987 166 1.75 9,340 1988 239 1.95 14,984 1989 251 1.57 12,670 1990 332 1.55 16,545 1991 345 1.46 16,194 1992 308 1.58 15,646 1993 272 1.43 12,505 1994 355 1.59 18,147 1995 122 1.61 6,315 1996 34 1.56 1,705 1997 44 0.64 905 2000 170 1.49 8,144 2001 184 1.83 10,826 2002 81 1.15 2,995 Total from 1977-2002 7,837 1.88 473,965 Project Total 1936-2002 15,967 2.78 1,427,116

According to the feasibility study completed by Changchun Gold Design Institute, the proposed joint venture aims to develop the Kluchevskoye gold deposit into a significant open pit mine and heap leach operation with an expected production rate of 12 million tonnes of ore per year and gold doré production of over 6.5 tonnes per annum.

23.3 The Alexandrovka Project

23.3.1 Introduction

The information herein is sourced from the Zapadnaya Gold Mining Limited website (http://www.zapadnaya.com/qa/assets.html). However, it should be noted that the information presented here is not necessarily indicative of the mineralisation at Sergeevskoye that is the subject of this technical report.

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The Alexandrovka (Alexandrovskoe) deposit is a large scale developing project which lies immediately to the west of the Sergeevskoe licence (Photo 23.1).

Photo 23.1: The Alexandrovka Project Area (Zapadnaya, 2016)

In 2011, geological exploration works were completed at the Alexandrovka deposit, a report with reserve calculation was prepared, and a final mining feasibility study was done.

By 01 January 2019 (http://www.zapadnaya.ru/qa/zapasy_resursy.html), under the Russian classification system, the Alexandrovka gold deposit contains a ‘reserve’ 25.7t of gold in С1+С2 categories and an additional, Russian classified resource estimated to be 20 tonnes of gold.

In 2013, State expertise approval for the ore processing plant was obtained, and in September of that year, the processing plant with an annual processing output of 750kt of ore was commissioned. Annual saleable production since beginning of production fluctuated near 1.5t of gold.

In the long term it is planned to increase the capacity of the ore processing plant up to 1.5 million tonnes of ore per annum, and production up to at least 3 tonnes of gold per annum.

23.3.2 Geology & Mineralisation

The Alexandrovskoye deposit occurs in the Mogocha Gold District within a major fold belt of the southwestern part of the Aldan-Stanovoy Shield.

Permian and Jurassic plutonic complexes intrude the metamorphic rocks of the shield and host gold and molybdenum deposits. They comprise biotitic granites, granodiorites, diorites, quartz-diorites and granitic-porphyries. A swarm of northwest trending later granite porphyries occur in the eastern parts

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The mineralisation is associated with a 3km long, northeast striking fault (the Main Fault), a second order structure (the Alexandrovskoye Fault) and smaller, third order structures that are part of the same fault system as the two larger faults.

Gold mineralisation at Alexandrovskoye occurs as low-sulphide quartz veins and quartz stockworks hosted in coarse-grained biotite granites and dark green diorites. The quartz veins are surrounded by a halo of intense quartz-sericite alteration. The quartz veins are structurally controlled, occurring in two en echelon NNE striking zones (Eastern and Western) that are in second and third order splays off the main structure (the Main Fault).

More than 20 separate lodes and five stockworks have been interpreted. The mineralised lodes range from 15m to 150m in strike length and vary from 2m to 10m thick.

The strike extent of the lodes varies from 10-15m to almost 150m, with at least five lenses exceeding 100m. The higher grade gold-quartz veins average 1.2m thick and are surrounded by haloes of intense alteration visually appearing as bleached host rock.

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24 OTHER RELEVANT DATA AND INFORMATION

No other relevant data are relevant at this stage of the Project development.

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25 INTERPRETATION AND CONCLUSIONS

The Sergeevskoe license lies immediately to the west of the historic Kluchevskoye open pit gold mine which has produced well over 1Moz Au and has resources of several million ounces gold, which is now the focus of a BRICS consortium looking to re-start the project. Furthermore, to the west of Sergeevskoe, lies the recently opened Alexandrovskoe open pit gold mine.

The 2017-2018 works by Orsu demonstrated the similarity and potential direct connection of gold mineralisation at Sergeevskoe to the large Kluchevskoye deposit immediately to the east. Results from historic exploration and recent Orsu work have shown that the potential of the Sergeevskoe area remains promising for further gold discoveries.

This statement is corroborated by the fact that the major ore-controlling faults at Kluchevskoye pass westwards into the Sergeevskoe license and it is demonstrated by Orsu that the mineralised structures that were mined at Kluchevskoye are continuous to a greater or lesser extent into the Sergeevskoe area.

It is likely that some of the already identified gold-mineralised zone at Sergeevskoe will be further extended. Either way, the magnitude of the Kluchevskoye body should not be underestimated and as such, Sergeevskoe presents an excellent opportunity to develop near surface oxide mineralisation with the possibility of later deeper primary mineralisation development.

Historic Soviet work, conducted at a similar time as the Kluchevskoye deposit was being developed, identified a number of gold occurrences in the Sergeevskoe license, but was only based on relatively limited exploration data comprising primarily trenching and limited drilling with associated geochemistry and geophysics.

However, due to the age of the data (often more than 50 years old), little reliance can be placed on the absolute values seen from historic documents on trenches, outcrops and drillholes, although the structures and lithologies defined by the work hold good to this day.

Between 2017 and 2018, Orsu completed 48 surface trenches for a total of 6,089.0m, and the recovery of 5,170 samples, plus a further 82 diamond drillholes for a total of 17,107.80m and the collection of 12,486 samples. This is the baseline data used in the maiden mineral resource estimate.

All of the exploration data was reviewed and audited. In the opinion of WAI, the exploration work carried out by Orsu has generally been completed using procedures that are consistent with recognised industry best practices, and the data is suitable for Mineral Resource estimation.

The Sergeevskoye deposit has sufficient data to allow the grade to be estimated, and to reasonably assume (but not verify), geological and grade continuity for the mineral resources to be classified in the Inferred category.

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In order to demonstrate that the Sergeevskoye deposit has reasonable prospects for economic extraction, a cut-off grade of 0.5g/t Au was applied based on the assumptions summarised in Table 25.1.

Table 25.1: Pit Optimisation Parameters Parameter Unit Value US$/t Ore Primary = 1.5 US$/t Ore Oxide = 1.2 Mining costs US$/t Waste Rock 1.2 US$/t Overburden 1.0 Processing cost US$/t ore 8 G & A US$/t ore 1.5 Royalty Cost % 6 Primary 85% Metallurgical Recovery % Oxide 93% Pit Slope Angles ° 51 Losses % 0% Dilution % 0% Commodity Price US$/oz 1,350

At a cut-off grade of 0.5g/t Au, an Inferred mineral resource of 25.09Mt at 1.47g/t Au (containing 1.19Moz) has been estimated based on an undiluted (sub-celled) block model as presented in Table 25.2. The mineral resource is constrained by an optimised pit shell and limited by the licence boundary to the east. Essentially the proximity of the licence boundary limits the extent of the optimised open pit shell, equally mineralisation is truncated at the licence boundary although is considered to extend in an easterly direction towards the Kluchevskoe open pit mine.

Table 25.2: Undiluted Mineral Resource Estimate for the Sergeevskoe Gold Project Open Pit Constrained by Licence Class COG Tonnes Grade Contained Metal (Mt) (g/t Au) Au (‘000 oz) Inferred 0.4 25.22 1.47 1,192 Inferred 0.5 25.09 1.47 1,186 Inferred 0.6 23.93 1.52 1,169 Inferred 0.7 21.59 1.61 1,118 Inferred 0.8 18.64 1.75 1,049 Notes: 1. Mineral Resources reported for the Sergeevskoe Gold Project are classified as Inferred. 2. Mineral Resources are not reserves until they have demonstrated economic viability based on a Feasibility Study or Pre-Feasibility Study. 3. Mineral Resources are reported inclusive of any Ore Reserves. 4. All figures are rounded to reflect the relative accuracy of the estimate, apparent errors may occur due to rounding. 5. The mineral resources reported are undiluted, representing the sub-celled model with no account of potential mining dilution of the mineralisation as a result of the narrow mineralised veins. 6. The block model has been constrained by an open pit optimisation study based on economic and technical parameters as provided by Orsu Metals Corporation and constrained by the licence area. 7. Mineral Resources for the Sergeevskoe Gold Project have been classified in accordance with CIM (2014) guidelines and the guidelines of the JORC Code (2012) by Dr Phil Newall, an independent Competent Person as defined by JORC. ZT61-1731/MM1301 Final V2.0 Page 129 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

8. The estimate is based on surface trench and diamond drilling data supplied by Orsu with an effective date of 15th of April 2019. 9. Contained metal refers to estimated contained metal in the ground not adjusted for metallurgical recovery.

Inferred Mineral Resources are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorised as Mineral Reserves, or Ore Reserves, and there is no certainty that all or any part of the Mineral Resources or mine plan tonnes would be converted into Mineral Reserves.

Metallurgical testwork has been conducted in 2017, for oxide material, and in 2018, on primary sulphide material. Positive cyanidation test results were received for the four oxide samples taken from Adit 5 (85.17% to 95.3% recovery) and Kozie (91.72% to 92.32%) prospects, both showing amenability for heap leaching. The 2018 metallurgical testwork on primary metallurgical sample from Klyuchi West occurrence consisted of low-sulphide quartz stockwork. Again, the results were positive with up to 89% recovery from primary quartz-sulphide material.

In summary, although knowledge on the Sergeevskoe property is still fairly limited at this time, and with only preliminary metallurgical testwork, results are encouraging and a robust maiden mineral resource base has been established. Further, mineralised zones identified are open to the west along strike and down dip, and so expansion of the mineralised envelope could be revealed subject to continued positive results. New mineralised zones can be expected both on the northern flank of the system at Kozie as well as probably at the southern flank in the west of Zone 23.

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26 RECOMMENDATIONS

Given the relatively early nature of the (modern) exploration works at Sergeevskoe, WAI supports the Company’s plan to prioritise the next phase of field works by focusing on increasing the mineralised envelope through a targeted trenching (circa 3,000m) and drilling (circa 3,500m) programme over the next 12 months. Subject to positive results, this will then progress into a subsequent drilling programme in the order of 6,000m to include more detailed metallurgical testwork.

This next phase of work will be supplemented with some targeted metallurgical testwork and geophysical survey (magnetic and Induced Polarisation).

The budget and work programme for the next 12 months at Sergeevskoye is presented in Table 26.1.

Table 26.1: 12 Month Budget and Work Programme (Orsu) № Item / Task US$ 1 Drilling 3,500 m and Trenching 3,000 m 450,000 2 Assays 150,000 3 Logging of drillcore and trenches, Core splitting, Sample transportation 250,000 4 Metallurgy tests (2) 200,000 5 Geophysical works 50,000 6 External consultants 75,000 7 G&A (local) 75,000 8 Updated Resource 75,000 9 Contingency 10% 132,500 10 TOTAL 1,457,500

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27 REFERENCES

AATA Water Quality Report for the Dyrovatskaya Dump Project, 2013

AUSIMMM. Australian Institute of Geoscientists and Mineral Council of Australia. Australasian Code for Reporting of Mineral Resources and Ore Reserves (The JORC Code): 2012 Edition. Joint Ore Reserve Committee of the Australasian Institute of Mining and Metallurgy, 2012

Information Report on Environmental Baseline Studies Conducted on Sergeevskoye Ore-Bearing Field in 2016, Prepared by “Laboratory of Ecological Problems” LLC, Chita 2017

Litvinov, V.L., Vovchenko RG et al. Report on" Study of the distribution of minerals with the preparation of geological descriptions of fields, assessment of their prospects and recommendations for the direction of gold exploration at the Davenda-Kluchevskoye cluster. "LLC" ZabNTGeo "- Lviv, 1978 - 408 ." "Литвинов В.Л., Вовченко Р.Г. и др. Отчет по теме «Изучение закономерностей размещения полезных ископаемых с составлением геологических описаний месторождений, оценкой их перспективности и рекомендации по направлению поисков и разведки Ключевско-Давендинского золоторудного узла». ООО «ЗабНТГео» - Львов, 1978 - 408 с."

Orsu Metals Corporation, NI 43-101 Technical Report for Sergeevskoe Property, ZT61-1569/MM1117, Wardell Armstrong International, 10 March 2017

Reduced Intrusion-Related Gold Systems. Author Craig J.R. Hart. January 2007

Summary of Water Quality Results, 2013, Kluchevskoye Mining Project, Zabaykalskiy Krai, Russian Federation Prepared for SUN Gold Limited, Moscow, Russian Federation, Prepared by AATA INTERNATIONAL, INC., Denver, Colorado, USA, February 2014.

Technology Research of Ore, Sergeyevsky Ore Area, SGS, February 2018

Title Opinion Letter to the TSX Venture Exchange, Saveliev, Batanov & Partners, November 2016.

WAI report for Sun Gold, NI 43-101 Compliant Mineral Resource Estimate for the Kluchevskoye Gold Deposit, Zabaikalsky Region, Eastern Russia, January 2014.

Yazkov NM, Greshilov AS "The explanatory note to the justification of forecast resources of gold ore Sergeyevka area (Mogochinsky District Trans-Baikal Territory)," Chita 2015. “Язков Н.М., Грешилов А.С. «Пояснительная записка к обоснованию прогнозных ресурсов рудного золота сергеевской площади (Могочинский район Забайкальского края)», Чита, 2015”

ZT61-1731/MM1301 Final V2.0 Page 132 May 2019 ORSU METALS CORPORATION NI 43-101 TECHNICAL REPORT ON THE INITIAL MINERAL RESOURCE ESTIMATE FOR THE SERGEEVSKOE PROPERTY, ZABAIKALSKIY KRAI, RUSSIAN FEDERATION

Yazkov NM, Truschenko IS "Project" Search engine - evaluation work on the gold ore to ore-bearing area Sergeyevka "Limited Liability Company" Geoekspert "Chita 2014 “Язков Н.М., Трущенко И.С. «Проект «Поисково - оценочных работ на рудное золото на Сергеевской рудоносной площади», Общество с ограниченной ответственностью «Геоэксперт», Чита, 2014”

Zapadnaya Gold Mining Limited-Company Website, Main Page-Alexandrovka (Accessed November 04, 2016, at http://www.zapadnaya.com/qa/alexandrovka.html )

ZT61-1731/MM1301 Final V2.0 Page 133 May 2019 APPENDIX 1: Certificate of Author CERTIFICATE OF AUTHOR

I, Phil Newall, BSc (ARSM), PhD (ACSM), CEng, FIMMM, do hereby certify that as lead author of this NI 43-101 Technical Report for the Sergeevskoe Property, Zabaikalskiy Krai, Russian Federation (“Report”), with an effective date of 15th April 2019 and dated 201st May 2019, I hereby make the following statements:

• I am the Managing Director of: Wardell Armstrong International Ltd., Baldhu House, Wheal Jane Earth Science Park, Baldhu, Truro, Cornwall, United Kingdom TR3 6EH; • I graduated with a Bachelor Degree in Geology from Imperial College, London, UK in 1983 and with PhD – “The use of lithogeochemistry as an exploration tool at the Redmoor sheeted vein Sn/W complex, east Cornwall”, Camborne School of Mines in 1991; • I am a Fellow and Chartered Engineer of the Institution of Materials, Minerals & Mining; • I have practised my profession as a Mining Geologist for the past 30 years in areas of gold and base metals evaluation in a number of countries around the world; • I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that I am a “qualified person” for the purposes of NI 43-101; • I take full responsibility for all of the items, “NI 43-101 Technical Report for the Sergeevskoe Property, Zabaikalskiy Krai, Russian Federation” with and effective date of 15th April 2019 and dated 15th May 2019; • I visited the Sergeevskoe site at Kluchevskoye that is the subject of this report from 2- 3 November 2016 and 5-6 June 2018; • As of the effective date of this report and to the best of my knowledge, information and belief, the Report contains all scientific and technical information that is required to be disclosed to make the Report not misleading; • I have had no prior involvement with the Sergeevskoe Project, which is the subject of this Report; • I am independent of Orsu Metals Corporation, LLC SC Alexandrovskoe and Sibzoloto Investments Limited, and I have not received, nor do I expect to receive, any interest, directly or indirectly in the Sergeevskoe Property or securities of Orsu Metals Corporation; and • I have read the instrument NI-43-101 and the 2016 Report has been prepared in compliance with NI 43-101.

Date: 21st May 2019

Name: P Newall, BSc (ARSM), PhD (ACSM), CEng, FIMMM APPENDIX 2: Statistical Data for Individual Wireframe Zone Statistical Data for Individual Wireframe Zone Zone Type Drillhole No.3 Sample No Composite No Total Length (m) Av. Length (m) 101 Trench 3 12 14 12.96 1.08 102 Drillhole 2 8 9 7.70 0.96 103 Drillhole 2 9 10 9.10 1.01 104 Trench 1 2 2 2.00 1.00 104 Drillhole 6 24 28 25.40 1.06 105 Drillhole 3 6 6 5.05 0.84 105 Trench 4 15 16 15.30 1.02 106 Trench 2 7 7 7.00 1.00 106 Drillhole 5 21 27 24.45 1.16 107 Trench 5 26 29 27.40 1.05 107 Drillhole 8 77 89 86.35 1.12 108 Trench 6 92 95 92.59 1.01 108 Drillhole 7 12 15 12.80 1.07 109 Drillhole 4 9 12 10.05 1.12 109 Trench 5 31 33 33.00 1.06 110 Trench 7 33 38 34.39 1.04 110 Drillhole 9 38 47 42.85 1.13 111 Drillhole 3 21 28 26.15 1.25 112 Drillhole 4 10 14 11.80 1.18 113 Trench 5 49 53 51.05 1.04 113 Drillhole 7 20 22 21.10 1.06 114 Trench 4 35 37 35.86 1.02 114 Drillhole 8 17 22 18.55 1.09 201 Trench 1 1 1 1.00 1.00 201 Drillhole 4 12 13 12.60 1.05 202 Trench 1 10 9 9.00 0.90 202 Drillhole 4 47 53 51.50 1.10 203 Drillhole 3 4 5 4.40 1.10 203 Trench 3 5 5 4.70 0.94 204 Trench 4 28 29 28.30 1.01 204 Drillhole 5 50 58 52.95 1.06 205 Drillhole 2 4 5 4.30 1.08 205 Trench 2 4 6 5.18 1.29 206 Drillhole 1 1 1 1.10 1.10 206 Trench 2 5 5 4.80 0.96 207 Drillhole 2 8 10 8.60 1.08 207 Trench 3 16 19 18.93 1.18 208 Trench 4 16 19 16.60 1.04 208 Drillhole 4 21 26 24.30 1.16 209 Drillhole 2 4 6 5.20 1.30 209 Trench 3 7 8 7.30 1.04 210 Drillhole 1 1 1 0.95 0.95 210 Trench 1 2 2 2.00 1.00 211 Trench 1 1 2 1.49 1.49 211 Drillhole 1 3 4 3.60 1.20 212 Trench 3 12 14 12.50 1.04 212 Drillhole 5 7 9 6.95 0.99

3 Note: The total number of drillholes in the database is 130, however, some drillholes/trenches intersect more than 1 zone. Statistical Data for Individual Wireframe Zone Zone Type Drillhole No.3 Sample No Composite No Total Length (m) Av. Length (m) 213 Drillhole 2 23 25 24.05 1.05 213 Trench 3 39 41 39.70 1.02 214 Trench 2 15 16 15.20 1.01 214 Drillhole 2 29 27 25.80 0.89 215 Drillhole 2 2 4 2.20 1.10 215 Trench 2 6 6 5.20 0.87 301 Drillhole 4 7 10 7.75 1.11 302 Trench 3 3 3 2.60 0.87 302 Drillhole 7 16 19 16.25 1.02 303 Trench 3 9 10 9.10 1.01 303 Drillhole 4 9 10 9.05 1.01 304 Trench 3 24 25 24.20 1.01 304 Drillhole 7 41 53 47.00 1.15 305 Trench 2 12 13 12.90 1.08 305 Drillhole 5 9 12 10.20 1.13 306 Drillhole 1 3 4 3.80 1.27 307 Trench 3 4 5 3.90 0.98 307 Drillhole 7 13 18 15.25 1.17 401 Drillhole 3 7 9 7.05 1.01 402 Drillhole 5 20 25 21.40 1.07 403 Trench 2 8 9 8.20 1.03 403 Drillhole 6 49 56 53.45 1.09 404 Trench 4 16 18 16.90 1.06 404 Drillhole 8 84 96 94.15 1.12 405 Trench 1 4 4 4.00 1.00 405 Drillhole 2 10 12 11.55 1.16 406 Trench 2 3 4 2.90 0.97 406 Drillhole 6 17 23 19.75 1.16 407 Trench 1 1 1 1.00 1.00 407 Drillhole 7 17 22 19.45 1.14 408 Trench 1 6 7 6.40 1.07 408 Drillhole 3 24 30 28.45 1.19 409 Trench 3 8 8 8.00 1.00 409 Drillhole 6 21 25 23.45 1.12 410 Trench 3 19 20 19.70 1.04 410 Drillhole 4 9 11 9.45 1.05 411 Drillhole 4 33 37 34.50 1.05 412 Trench 1 1 1 1.00 1.00 412 Drillhole 3 11 15 13.36 1.21 413 Trench 3 4 5 4.20 1.05 413 Drillhole 8 49 57 54.45 1.11 414 Trench 7 70 75 72.20 1.03 414 Drillhole 9 127 147 142.40 1.12 415 Trench 1 1 1 1.00 1.00 415 Drillhole 8 22 29 24.40 1.11 416 Trench 1 5 5 4.60 0.92 416 Drillhole 5 50 60 56.95 1.14 417 Trench 2 2 2 2.00 1.00 417 Drillhole 7 16 21 18.80 1.18 418 Drillhole 3 8 12 10.40 1.30 419 Trench 1 1 1 1.10 1.10 419 Drillhole 6 37 44 41.75 1.13 Statistical Data for Individual Wireframe Zone Zone Type Drillhole No.3 Sample No Composite No Total Length (m) Av. Length (m) 420 Trench 5 12 14 12.50 1.04 420 Drillhole 9 96 113 109.05 1.14 421 Trench 4 7 8 6.60 0.94 421 Drillhole 9 33 41 36.65 1.11 422 Drillhole 4 7 10 8.65 1.24 501 Trench 1 1 1 1.00 1.00 501 Drillhole 1 1 1 1.00 1.00 502 Drillhole 1 1 1 1.05 1.05 502 Trench 1 2 2 2.00 1.00 503 Trench 2 11 11 10.90 0.99 503 Drillhole 4 6 10 8.15 1.36 504 Drillhole 3 12 15 13.90 1.16 504 Trench 6 53 55 52.81 1.00 505 Trench 2 15 15 14.70 0.98 505 Drillhole 4 17 20 19.10 1.12 506 Drillhole 2 11 11 10.10 0.92 506 Trench 5 26 31 30.30 1.17 507 Drillhole 3 15 19 17.90 1.19 507 Trench 7 21 25 23.81 1.13 508 Drillhole 2 2 2 1.45 0.73 508 Trench 2 4 4 3.80 0.95 509 Trench 1 1 1 1.00 1.00 509 Drillhole 1 1 1 1.10 1.10 510 Drillhole 1 1 1 0.85 0.85 510 Trench 3 7 7 6.10 0.87 511 Trench 1 2 2 2.00 1.00 511 Drillhole 1 3 3 2.40 0.80 512 Drillhole 2 4 4 4.05 1.01 512 Trench 3 18 18 17.30 0.96 513 Drillhole 1 3 4 3.50 1.17 513 Trench 1 6 6 6.00 1.00 514 Trench 1 1 1 1.00 1.00 514 Drillhole 1 5 6 5.65 1.13 515 Drillhole 2 11 12 10.65 0.97 515 Trench 3 4 8 6.70 1.68 516 Trench 3 3 4 3.10 1.03 516 Drillhole 5 16 21 18.45 1.15 517 Trench 3 10 11 9.80 0.98 517 Drillhole 6 15 16 14.50 0.97 518 Drillhole 2 2 3 1.85 0.93 518 Trench 2 9 10 9.10 1.01 519 Trench 2 7 7 5.90 0.84 520 Drillhole 1 1 1 1.00 1.00 520 Trench 2 2 2 2.00 1.00 521 Trench 1 1 1 1.00 1.00 521 Drillhole 1 2 3 2.85 1.43 522 Drillhole 1 1 1 1.00 1.00 522 Trench 5 10 13 13.01 1.30 601 Trench 1 3 3 3.00 1.00 601 Drillhole 4 10 13 11.30 1.13 602 Trench 4 7 10 9.80 1.40 602 Drillhole 6 11 15 10.75 0.98 Statistical Data for Individual Wireframe Zone Zone Type Drillhole No.3 Sample No Composite No Total Length (m) Av. Length (m) 603 Trench 3 32 33 32.10 1.00 603 Drillhole 7 23 24 21.50 0.93 604 Trench 1 2 2 2.00 1.00 604 Drillhole 2 2 3 2.25 1.13 605 Trench 3 4 5 4.20 1.05 605 Drillhole 3 28 33 33.05 1.18 606 Trench 2 9 10 8.80 0.98 606 Drillhole 4 27 32 29.40 1.09 607 Trench 3 11 11 10.60 0.96 607 Drillhole 7 10 11 9.05 0.91 608 Trench 2 3 4 3.20 1.07 608 Drillhole 5 8 9 8.45 1.06 609 Trench 1 2 2 2.00 1.00 609 Drillhole 3 8 10 8.80 1.10 701 Trench 3 4 5 3.90 0.98 701 Drillhole 12 36 46 40.50 1.13 702 Trench 3 13 14 13.70 1.05 702 Drillhole 12 35 43 36.60 1.05 703 Trench 2 4 5 4.20 1.05 703 Drillhole 12 143 167 160.75 1.12 704 Trench 3 4 4 3.70 0.93 704 Drillhole 13 112 129 124.50 1.11 705 Trench 2 4 4 3.90 0.98 705 Drillhole 5 10 13 10.50 1.05 706 Trench 2 2 2 1.90 0.95 706 Drillhole 4 8 12 9.75 1.22 707 Drillhole 1 3 4 3.15 1.05 708 Drillhole 4 5 7 5.45 1.09 709 Trench 4 4 4 3.90 0.98 709 Drillhole 7 11 14 11.70 1.06 710 Trench 1 1 2 1.20 1.20 710 Drillhole 9 34 42 38.00 1.12 711 Trench 1 2 3 2.40 1.20 711 Drillhole 13 57 65 60.55 1.06 801 Trench 1 2 2 2.00 1.00 801 Drillhole 6 11 13 11.50 1.05 802 Trench 2 28 29 28.00 1.00 802 Drillhole 8 36 44 39.65 1.10 803 Drillhole 1 2 3 2.40 1.20 804 Drillhole 1 4 4 3.75 0.94 805 Drillhole 1 7 9 8.30 1.19 806 Drillhole 1 1 2 1.45 1.45 807 Trench 2 9 9 9.00 1.00 807 Drillhole 6 33 39 35.90 1.09 808 Drillhole 1 5 6 5.95 1.19 809 Drillhole 4 5 6 5.30 1.06 810 Drillhole 3 8 10 9.10 1.14 811 Trench 1 1 1 1.00 1.00 811 Drillhole 7 11 17 12.50 1.14 812 Drillhole 3 13 17 16.65 1.28 813 Trench 1 1 1 1.00 1.00 813 Drillhole 8 22 29 24.30 1.10 Statistical Data for Individual Wireframe Zone Zone Type Drillhole No.3 Sample No Composite No Total Length (m) Av. Length (m) 901 Trench 1 1 2 1.30 1.30 902 Drillhole 3 6 6 6.15 1.03 903 Trench 1 2 2 2.00 1.00 904 Trench 1 3 3 2.60 0.87 905 Trench 1 4 4 4.00 1.00 905 Drillhole 2 7 8 7.30 1.04 906 Drillhole 1 1 2 1.20 1.20 907 Drillhole 2 3 6 5.00 1.67 908 Drillhole 1 2 1 1.00 0.50 909 Trench 1 3 3 2.20 0.73 Sub-Total Trench 243 1,068 1,159 1,099.38 1.03 Sub-Total Drillhole 505 2,221 2,666 2,452.56 1.10 Total 748 3,289 3,825 3,551.94 1.08 APPENDIX 3: Gold Decile Analysis for Individual Zones Gold Decile Analysis for Individual Zones Zone Q%_FROM Q%_TO Composite No Mean Minimum Maximum Metal Metal (%) 109 0 10 4 0.34 0.29 0.39 1.37 1.76 109 10 20 5 0.55 0.53 0.57 2.75 3.52 109 20 30 4 0.62 0.59 0.64 2.47 3.16 109 30 40 5 0.72 0.67 0.76 3.62 4.64 109 40 50 4 0.84 0.79 0.89 3.34 4.28 109 50 60 5 1.03 1.00 1.11 5.17 6.62 109 60 70 4 1.17 1.13 1.22 4.68 6.00 109 70 80 5 1.71 1.43 2.27 8.53 10.93 109 80 90 4 2.71 2.30 3.02 10.85 13.91 109 90 100 5 7.05 4.63 11.90 35.25 45.18 109 91 92 1 4.63 4.63 4.63 4.63 5.93 109 93 94 1 5.57 5.57 5.57 5.57 7.14 109 95 96 1 6.32 6.32 6.32 6.32 8.10 109 97 98 1 6.83 6.83 6.83 6.83 8.75 109 99 100 1 11.90 11.90 11.90 11.90 15.25 109 0 100 45 1.73 0.29 11.90 78.03 100 110 0 10 8 0.41 0.16 0.59 3.27 1.49 110 10 20 8 0.73 0.65 0.78 5.86 2.67 110 20 30 8 0.84 0.79 0.89 6.70 3.06 110 30 40 9 1.06 0.95 1.21 9.57 4.37 110 40 50 8 1.32 1.25 1.45 10.55 4.81 110 50 60 8 1.62 1.47 1.86 12.94 5.90 110 60 70 9 1.99 1.88 2.34 17.90 8.17 110 70 80 8 2.79 2.43 3.14 22.32 10.19 110 80 90 8 3.58 3.15 4.09 28.65 13.08 110 90 100 9 11.26 4.16 32.00 101.38 46.26 110 91 92 1 4.16 4.16 4.16 4.16 1.90 110 92 93 1 4.29 4.29 4.29 4.29 1.96 110 93 94 1 4.61 4.61 4.61 4.61 2.10 110 94 95 1 6.20 6.20 6.20 6.20 2.83 110 95 96 1 6.66 6.66 6.66 6.66 3.04 110 96 97 1 8.79 8.79 8.79 8.79 4.01 110 97 98 1 9.52 9.52 9.52 9.52 4.35 110 98 99 1 25.14 25.14 25.14 25.14 11.47 110 99 100 1 32.00 32.00 32.00 32.00 14.60 110 0 100 83 2.64 0.16 32.00 219.14 100 113 0 10 6 0.49 0.25 0.60 2.94 1.63 113 10 20 7 0.63 0.60 0.66 4.43 2.45 113 20 30 7 0.70 0.66 0.75 4.89 2.71 113 30 40 7 0.84 0.77 0.90 5.87 3.25 113 40 50 7 1.00 0.93 1.12 7.03 3.89 113 50 60 6 1.19 1.16 1.23 7.16 3.96 113 60 70 7 1.58 1.37 1.90 11.07 6.13 113 70 80 7 2.17 1.97 2.45 15.20 8.42 113 80 90 7 3.37 2.57 4.13 23.59 13.06 113 90 100 7 14.06 5.22 24.30 98.42 54.50 113 91 92 1 5.22 5.22 5.22 5.22 2.89 113 92 93 1 5.85 5.85 5.85 5.85 3.24 113 94 95 1 5.94 5.94 5.94 5.94 3.29 113 95 96 1 12.80 12.80 12.80 12.80 7.09 113 97 98 1 20.40 20.40 20.40 20.40 11.30 113 98 99 1 23.90 23.90 23.90 23.90 13.23 Gold Decile Analysis for Individual Zones Zone Q%_FROM Q%_TO Composite No Mean Minimum Maximum Metal Metal (%) 113 99 100 1 24.30 24.30 24.30 24.30 13.46 113 0 100 68 2.66 0.25 24.30 180.59 100 304 0 10 7 0.37 0.27 0.44 2.56 1.99 304 10 20 8 0.49 0.45 0.52 3.91 3.04 304 20 30 8 0.55 0.53 0.58 4.42 3.44 304 30 40 8 0.66 0.63 0.73 5.29 4.12 304 40 50 8 0.79 0.76 0.81 6.33 4.93 304 50 60 7 0.86 0.84 0.89 6.05 4.71 304 60 70 8 1.05 0.92 1.21 8.36 6.51 304 70 80 8 1.35 1.23 1.66 10.78 8.38 304 80 90 8 2.21 1.66 2.96 17.72 13.79 304 90 100 8 7.89 3.26 23.00 63.09 49.09 304 91 92 1 3.26 3.26 3.26 3.26 2.53 304 92 93 1 3.63 3.63 3.63 3.63 2.83 304 93 94 1 3.91 3.91 3.91 3.91 3.04 304 94 95 1 4.77 4.77 4.77 4.77 3.71 304 96 97 1 4.83 4.83 4.83 4.83 3.76 304 97 98 1 6.99 6.99 6.99 6.99 5.44 304 98 99 1 12.70 12.70 12.70 12.70 9.88 304 99 100 1 23.00 23.00 23.00 23.00 17.90 304 0 100 78 1.65 0.27 23.00 128.51 100 403 0 10 6 0.36 0.29 0.48 2.16 1.81 403 10 20 7 0.56 0.49 0.60 3.90 3.26 403 20 30 6 0.66 0.62 0.69 3.95 3.30 403 30 40 7 0.72 0.69 0.75 5.01 4.18 403 40 50 6 0.85 0.76 0.93 5.08 4.24 403 50 60 7 1.05 0.99 1.12 7.37 6.16 403 60 70 6 1.31 1.13 1.50 7.87 6.57 403 70 80 7 1.81 1.59 2.00 12.65 10.56 403 80 90 6 2.83 2.42 3.91 16.96 14.16 403 90 100 7 7.83 4.52 13.22 54.81 45.77 403 91 92 1 4.52 4.52 4.52 4.52 3.77 403 92 93 1 5.15 5.15 5.15 5.15 4.30 403 94 95 1 6.58 6.58 6.58 6.58 5.49 403 95 96 1 7.82 7.82 7.82 7.82 6.53 403 97 98 1 8.32 8.32 8.32 8.32 6.95 403 98 99 1 9.20 9.20 9.20 9.20 7.68 403 99 100 1 13.22 13.22 13.22 13.22 11.04 403 0 100 65 1.84 0.29 13.22 119.76 100 409 0 10 3 0.33 0.24 0.49 1.00 2.04 409 10 20 3 0.51 0.50 0.54 1.54 3.14 409 20 30 3 0.57 0.55 0.59 1.70 3.47 409 30 40 4 0.62 0.59 0.67 2.49 5.08 409 40 50 3 0.82 0.71 0.89 2.47 5.04 409 50 60 3 1.03 0.99 1.06 3.08 6.28 409 60 70 4 1.16 1.11 1.26 4.66 9.50 409 70 80 3 1.44 1.30 1.52 4.32 8.81 409 80 90 3 1.57 1.53 1.64 4.70 9.58 409 90 100 4 5.77 2.24 13.45 23.08 47.07 409 92 93 1 2.24 2.24 2.24 2.24 4.57 409 94 95 1 2.24 2.24 2.24 2.24 4.57 409 97 98 1 5.15 5.15 5.15 5.15 10.50 Gold Decile Analysis for Individual Zones Zone Q%_FROM Q%_TO Composite No Mean Minimum Maximum Metal Metal (%) 409 99 100 1 13.45 13.45 13.45 13.45 27.43 409 0 100 33 1.49 0.24 13.45 49.04 100 413 0 10 6 0.21 0.09 0.31 1.29 1.52 413 10 20 6 0.42 0.33 0.51 2.53 2.99 413 20 30 6 0.55 0.51 0.60 3.32 3.93 413 30 40 6 0.64 0.63 0.66 3.83 4.54 413 40 50 7 0.70 0.66 0.73 4.89 5.79 413 50 60 6 0.76 0.75 0.79 4.56 5.40 413 60 70 6 0.85 0.79 0.94 5.07 6.00 413 70 80 6 1.02 0.94 1.10 6.13 7.25 413 80 90 6 1.41 1.12 1.88 8.45 10.00 413 90 100 7 6.35 1.96 13.00 44.43 52.57 413 91 92 1 1.96 1.96 1.96 1.96 2.32 413 92 93 1 2.46 2.46 2.46 2.46 2.91 413 94 95 1 3.80 3.80 3.80 3.80 4.49 413 95 96 1 4.68 4.68 4.68 4.68 5.54 413 97 98 1 5.53 5.53 5.53 5.53 6.54 413 98 99 1 13.00 13.00 13.00 13.00 15.38 413 99 100 1 13.00 13.00 13.00 13.00 15.38 413 0 100 62 1.36 0.09 13.00 84.51 100 414 0 10 22 0.34 0.07 0.52 7.55 0.83 414 10 20 22 0.56 0.52 0.59 12.27 1.35 414 20 30 22 0.65 0.59 0.71 14.21 1.56 414 30 40 22 0.79 0.72 0.88 17.41 1.91 414 40 50 23 1.00 0.90 1.13 22.92 2.52 414 50 60 22 1.24 1.14 1.37 27.33 3.00 414 60 70 22 1.57 1.38 1.95 34.58 3.80 414 70 80 22 2.38 1.96 2.86 52.39 5.76 414 80 90 22 3.20 2.93 3.54 70.40 7.74 414 90 100 23 28.30 4.14 240.44 650.96 71.53 414 90 91 2 4.15 4.14 4.16 8.30 0.91 414 91 92 2 5.77 5.73 5.80 11.53 1.27 414 92 93 2 6.82 6.60 7.04 13.63 1.50 414 93 94 3 8.68 7.33 9.91 26.05 2.86 414 94 95 2 11.57 11.55 11.60 23.15 2.54 414 95 96 2 12.03 11.82 12.23 24.05 2.64 414 96 97 3 15.95 13.00 18.84 47.85 5.26 414 97 98 2 20.34 19.61 21.08 40.69 4.47 414 98 99 2 33.56 33.10 34.02 67.12 7.38 414 99 100 3 129.53 42.90 240.44 388.59 42.70 414 0 100 222 4.10 0.07 240.44 910.03 100 420 0 10 12 0.34 0.27 0.39 4.12 2.97 420 10 20 13 0.42 0.39 0.46 5.52 3.98 420 20 30 13 0.50 0.47 0.52 6.55 4.72 420 30 40 12 0.55 0.54 0.56 6.56 4.73 420 40 50 13 0.60 0.56 0.66 7.85 5.66 420 50 60 13 0.71 0.67 0.78 9.27 6.69 420 60 70 12 0.89 0.79 0.99 10.67 7.70 420 70 80 13 1.06 1.00 1.15 13.83 9.98 420 80 90 13 1.36 1.20 1.71 17.74 12.79 420 90 100 13 4.35 1.75 19.50 56.54 40.78 420 90 91 1 1.75 1.75 1.75 1.75 1.26 Gold Decile Analysis for Individual Zones Zone Q%_FROM Q%_TO Composite No Mean Minimum Maximum Metal Metal (%) 420 91 92 1 1.75 1.75 1.75 1.75 1.27 420 92 93 1 1.84 1.84 1.84 1.84 1.33 420 93 94 2 1.89 1.87 1.91 3.78 2.73 420 94 95 1 2.11 2.11 2.11 2.11 1.52 420 95 96 1 2.50 2.50 2.50 2.50 1.80 420 96 97 2 2.64 2.60 2.67 5.27 3.80 420 97 98 1 3.42 3.42 3.42 3.42 2.47 420 98 99 1 4.72 4.72 4.72 4.72 3.40 420 99 100 2 14.70 9.89 19.50 29.39 21.19 420 0 100 127 1.09 0.27 19.50 138.67 100 504 0 10 6 0.42 0.35 0.49 2.50 1.64 504 10 20 7 0.58 0.50 0.65 4.05 2.66 504 20 30 6 0.72 0.66 0.78 4.31 2.83 504 30 40 7 0.82 0.79 0.85 5.72 3.75 504 40 50 7 1.02 0.94 1.11 7.16 4.70 504 50 60 6 1.28 1.21 1.42 7.65 5.02 504 60 70 7 1.58 1.46 1.80 11.07 7.26 504 70 80 6 2.15 1.84 2.66 12.93 8.48 504 80 90 7 4.08 3.17 4.74 28.56 18.74 504 90 100 7 9.78 4.74 15.10 68.43 44.91 504 91 92 1 4.74 4.74 4.74 4.74 3.11 504 92 93 1 6.00 6.00 6.00 6.00 3.94 504 94 95 1 9.37 9.37 9.37 9.37 6.15 504 95 96 1 10.20 10.20 10.20 10.20 6.69 504 97 98 1 11.30 11.30 11.30 11.30 7.42 504 98 99 1 11.72 11.72 11.72 11.72 7.69 504 99 100 1 15.10 15.10 15.10 15.10 9.91 504 0 100 66 2.31 0.35 15.10 152.38 100 APPENDIX 4: General Statistic Plots for Au General Statistic Plot for Au, Zone 109

General Statistic Plot for Au, Zone 110 General Statistic Plot for Au, Zone 113

General Statistic Plot for Au, Zone 304 General Statistic Plot for Au, Zone 403

General Statistic Plot for Au, Zone 409 General Statistic Plot for Au, Zone 413

General Statistic Plot for Au, Zone 414 General Statistic Plot for Au, Zone 420

General Statistic Plot for Au, Zone 504 APPENDIX 5: Silver Decile Analysis for Individual Zones Silver Decile Analysis for Individual Zones Zone Q%_FROM Q%_TO Nsamples Mean Minimum Maximum Metal Metal (%) 414 0 10 22 0.51 0.15 0.70 11.28 1.17 414 10 20 22 1.01 0.72 1.21 22.21 2.31 414 20 30 22 1.48 1.22 1.65 32.60 3.39 414 30 40 22 1.89 1.70 2.14 41.58 4.33 414 40 50 23 2.49 2.20 2.70 57.33 5.96 414 50 60 22 2.99 2.70 3.30 65.69 6.83 414 60 70 22 3.68 3.34 4.05 81.00 8.43 414 70 80 22 4.94 4.12 5.70 108.58 11.30 414 80 90 22 6.38 5.71 8.05 140.38 14.60 414 90 100 23 17.42 8.10 85.48 400.59 41.67 414 90 91 2 8.20 8.10 8.30 16.40 1.71 414 91 92 2 8.98 8.95 9.00 17.95 1.87 414 92 93 2 9.13 9.10 9.16 18.26 1.90 414 93 94 3 9.25 9.16 9.40 27.76 2.89 414 94 95 2 10.03 9.80 10.26 20.06 2.09 414 95 96 2 11.04 10.54 11.53 22.07 2.30 414 96 97 3 12.17 11.70 12.41 36.51 3.80 414 97 98 2 17.68 16.23 19.13 35.36 3.68 414 98 99 2 24.43 22.31 26.56 48.87 5.08 414 99 100 3 52.46 33.40 85.48 157.37 16.37 414 0 100 222 4.33 0.15 85.48 961.22 100 603 0 10 5 0.60 0.50 0.70 3.01 0.60 603 10 20 6 0.92 0.70 1.14 5.49 1.09 603 20 30 6 1.61 1.20 1.90 9.66 1.92 603 30 40 5 2.28 1.93 2.60 11.38 2.26 603 40 50 6 2.90 2.65 3.12 17.40 3.46 603 50 60 6 3.52 3.31 3.78 21.13 4.20 603 60 70 5 4.29 3.78 4.80 21.43 4.26 603 70 80 6 5.40 5.00 5.70 32.38 6.44 603 80 90 6 7.48 6.05 8.90 44.89 8.93 603 90 100 6 55.98 9.32 274.44 335.86 66.82 603 91 92 1 9.32 9.32 9.32 9.32 1.85 603 93 94 1 9.45 9.45 9.45 9.45 1.88 603 94 95 1 12.70 12.70 12.70 12.70 2.53 603 96 97 1 13.05 13.05 13.05 13.05 2.60 603 98 99 1 16.90 16.90 16.90 16.90 3.36 603 99 100 1 274.44 274.44 274.44 274.44 54.60 603 0 100 57 8.82 0.50 274.44 502.61 100 807 0 10 4 1.16 0.90 1.60 4.65 0.14 807 10 20 5 2.06 1.70 2.40 10.29 0.31 807 20 30 5 2.86 2.42 3.22 14.30 0.44 807 30 40 5 3.56 3.24 3.80 17.82 0.55 807 40 50 5 4.26 3.90 4.80 21.30 0.65 807 50 60 4 5.92 5.11 6.48 23.69 0.73 807 60 70 5 9.48 6.70 11.90 47.40 1.45 807 70 80 5 19.83 12.70 24.12 99.14 3.03 807 80 90 5 38.54 27.85 62.53 192.68 5.90 807 90 100 5 567.23 85.70 1,020.00 2,836.13 86.80 807 91 92 1 85.70 85.70 85.70 85.70 2.62 807 93 94 1 91.70 91.70 91.70 91.70 2.81 807 95 96 1 666.73 666.73 666.73 666.73 20.41 807 97 98 1 972.00 972.00 972.00 972.00 29.75 Silver Decile Analysis for Individual Zones Zone Q%_FROM Q%_TO Nsamples Mean Minimum Maximum Metal Metal (%) 807 99 100 1 1,020.00 1,020.00 1,020.00 1,020.00 31.22 807 0 100 48 68.07 0.90 1,020.00 3,267.40 100

General Statistic Plot for Ag, Zone 414

General Statistic Plot for Ag, Zone 603 General Statistic Plot for Ag, Zone 807 APPENDIX 6: Moisture Content and Density Tables Moisture Content Measurement for Oxide Material From To Length Au Measured Density Weight Dry Moisture No. Sample No. (m) (m) (m) (g/t) (g/cm3) (g) Weight (g) (%) 1 SDH1824-6 8.65 10 1.35 0.71 2.92 140 140 0.0 2 SDH1824-7 10 11 1.0 1.66 2.65 325 320 1.5 3 SDH1824-8 11 12.1 1.1 0.17 2.67 385 380 1.3 4 SDH1824-11 14.4 15.75 1.35 1.11 2.81 535 450 15.9 5 SDH1847-5 9.1 10.6 1.5 2.89 2.71 205 200 2.4 6 SDH1847-7 12.3 13.4 1.1 1.25 2.65 120 120 0.0 7 SDH1831-9 9.2 10.4 1.2 0.75 2.96 145 140 3.4 8 SDH1831-14 14.8 15.8 1.0 6.12 2.73 570 565 0.9 9 SDH1848-5 5.4 6.5 1.1 0.68 3.11 200 200 0.0 10 SDH1848-6 6.5 7.6 1.1 2.48 2.83 270 265 1.9 11 SDH1848-7 7.6 8.55 0.95 1.47 2.89 250 245 2.0 12 SDH1848-9 9.65 10.75 1.1 0.38 2.80 135 130 3.7 13 SDH1848-10 10.75 11.85 1.1 0.69 2.71 220 220 0.0 14 SDH1848-11 11.85 12.95 1.1 0.73 2.99 360 355 1.4 15 SDH1848-13 13.9 15 1.1 0.58 2.94 255 250 2.0 16 SDH1848-14 15 16.05 1.05 2.8 2.91 360 350 2.8 17 SDH1848-16 17 18 1.0 0.47 2.84 95 90 5.3 18 SDH1848-17 18 19.2 1.2 1.08 2.72 375 365 2.7 19 SDH1848-18 19.2 20.2 1.0 1.03 2.72 290 270 6.9 20 SDH1848-19 20.2 21.6 1.0 1.26 2.73 360 355 1.4 21 SDH1848-23 21.6 22.6 1.0 0.66 2.69 355 350 1.4 22 SDH1848-29 28.5 29.2 0.7 0.33 3.08 105 100 4.8 23 SDH1848-31 30.2 31.2 1.0 0.98 2.91 525 515 1.9 24 SDH1848-34 33.3 34.1 0.8 1.55 2.81 205 205 0.0 25 SDH1848-35 34.1 34.9 0.8 1.25 2.76 300 295 1.7 26 SDH1848-37 36.2 37 0.8 1.99 3.48 640 635 0.8 27 SDH1849-18 18.8 19.9 1.1 1.82 2.70 725 720 0.7 28 SDH1849-29 28.1 29.4 1.3 5.74 2.73 605 600 0.8 29 SDH1849-30 29.4 30.7 1.3 0.97 2.72 480 470 2.1 30 SDH1849-31 30.7 31.85 1.15 0.79 2.72 235 230 2.1 31 SDH1849-32 31.85 33 1.15 0.65 2.76 250 250 0.0 32 SDH1849-33 33 34 1.0 0.75 2.99 610 595 2.5 33 SDH174-23 40 41.35 1.35 1.315 2.75 410 410 0.0 34 SDH174-24 41.35 42.65 1.3 0.404 2.84 435 435 0.0 35 SDH174-29 46.65 47.65 1.0 0.507 2.82 250 245 2.0 36 SDH174-30 47.65 48.65 1.0 0.722 2.76 150 145 3.3 37 SDH174-33 50.95 51.95 1.0 2.33 2.78 300 300 0.0 38 SDH174-34 51.95 52.95 1.0 4.42 2.79 300 300 0.0 39 SDH1853-2 3.65 4.6 0.95 1.44 3.00 230 230 0.0 40 SDH1853-6 8.6 9.7 1.1 1.21 2.74 125 120 4.0 41 SDH1853-8 11.15 12.45 1.3 0.79 2.64 295 285 3.4 42 SDH1853-9 12.45 13.55 1.1 3.13 3.00 340 330 2.9 43 SDH1853-10 13.55 14.85 1.3 0.49 3.12 145 140 3.4 44 SDH1853-13 16.8 17.9 1.1 0.52 3.38 145 140 3.4 45 SDH1853-15 18.75 19.65 0.9 1 2.92 255 245 3.9 46 SDH1853-16 19.65 20.5 0.85 1.42 2.90 100 100 0.0 47 SDH1861-5 4.1 5.5 1.4 0.43 5.00 50 45 10.0 48 SDH1861-8 8.4 9.55 1.15 1.76 2.65 560 535 4.5 49 SDH1861-11 11.85 12.95 1.1 0.52 2.73 525 510 2.9 Density for Oxide Material at Sergeevskoe Average From Length Au No. Sample To (m) Density (m) (m) (g/t) (g/cm3) 1 SDH174-23 40.00 41.35 1.35 1.315 2.75 2 SDH174-24 41.35 42.65 1.30 0.404 2.84 3 SDH174-25 42.65 43.65 1.00 1.365 2.51 4 SDH174-26 43.65 44.65 1.00 1.660 2.63 5 SDH174-27 44.65 45.65 1.00 0.586 2.56 6 SDH174-28 45.65 46.65 1.00 1.660 2.65 7 SDH174-29 46.65 47.65 1.00 0.507 2.82 8 SDH174-30 47.65 48.65 1.00 0.722 2.76 9 SDH174-31 48.65 49.65 1.00 0.534 2.68 10 SDH174-32 49.65 50.95 1.30 1.975 2.63 11 SDH174-33 50.95 51.95 1.00 2.330 2.78 12 SDH174-34 51.95 52.95 1.00 4.420 2.79 13 SDH174-35 52.95 54.40 1.45 1.860 2.58 14 SDH1824-10 13.10 14.40 1.30 2.510 2.33 15 SDH1824-11 14.40 15.75 1.35 1.110 2.81 16 SDH1824-12 15.75 17.25 1.50 0.670 2.62 17 SDH1824-6 8.65 10.00 1.35 0.710 2.92 18 SDH1824-7 10.00 11.00 1.00 1.660 2.65 19 SDH1824-8 11.00 12.10 1.10 0.170 2.67 20 SDH1824-9 12.10 13.10 1.00 0.020 2.56 21 SDH1831-10 10.40 11.50 1.10 0.850 2.51 22 SDH1831-14 14.80 15.80 1.00 6.120 2.73 23 SDH1831-6 5.90 6.85 0.95 0.980 2.62 24 SDH1831-7 6.85 7.95 1.10 0.640 2.53 25 SDH1831-8 7.95 9.20 1.25 0.140 2.28 26 SDH1831-9 9.20 10.40 1.20 0.750 2.96 27 SDH1847-5 9.10 10.60 1.50 2.890 2.71 28 SDH1847-6 10.60 12.30 1.70 4.610 2.44 29 SDH1847-7 12.30 13.40 1.10 1.250 2.65 30 SDH1847-8 13.40 14.50 1.10 0.710 2.65 31 SDH1848-10 10.75 11.85 1.10 0.690 2.71 32 SDH1848-11 11.85 12.95 1.10 0.730 2.99 33 SDH1848-12 12.95 13.90 0.95 0.330 2.48 34 SDH1848-13 13.90 15.00 1.10 0.580 2.94 35 SDH1848-14 15.00 16.05 1.05 2.800 2.91 36 SDH1848-15 16.05 17.00 0.95 0.290 2.53 37 SDH1848-16 17.00 18.00 1.00 0.470 4.74 38 SDH1848-17 18.00 19.20 1.20 1.080 2.72 39 SDH1848-18 19.20 20.20 1.00 1.030 2.72 40 SDH1848-19 20.20 21.60 1.00 1.260 2.73 41 SDH1848-23 21.60 22.60 1.00 0.660 2.69 42 SDH1848-24 22.60 23.80 1.20 0.150 2.59 43 SDH1848-25 23.80 25.00 1.20 0.350 2.65 44 SDH1848-26 25.00 26.20 1.20 0.630 2.46 45 SDH1848-27 26.20 27.50 1.30 0.200 2.41 46 SDH1848-28 27.50 28.50 1.00 0.170 2.49 47 SDH1848-29 28.50 29.20 0.70 0.330 3.08 48 SDH1848-30 29.20 30.20 1.00 0.560 2.55 49 SDH1848-31 30.20 31.20 1.00 0.980 2.91 50 SDH1848-32 31.20 32.20 1.00 1.400 2.45 Density for Oxide Material at Sergeevskoe Average From Length Au No. Sample To (m) Density (m) (m) (g/t) (g/cm3) 51 SDH1848-33 32.20 33.30 1.10 2.680 2.47 52 SDH1848-34 33.30 34.10 0.80 1.550 2.81 53 SDH1848-35 34.10 34.90 0.80 1.250 2.76 54 SDH1848-36 34.90 36.20 1.30 0.630 2.59 55 SDH1848-37 36.20 37.00 0.80 1.990 3.48 56 SDH1848-5 5.40 6.50 1.10 0.680 3.11 57 SDH1848-6 6.50 7.60 1.10 2.480 2.83 58 SDH1848-7 7.60 8.55 0.95 1.470 2.89 59 SDH1848-8 8.55 9.65 1.10 1.230 2.58 60 SDH1848-9 9.65 10.75 1.10 0.380 2.80 61 SDH1849-17 17.70 18.80 1.10 0.720 2.50 62 SDH1849-18 18.80 19.90 1.10 1.820 2.70 63 SDH1849-19 19.90 21.05 1.15 0.800 2.36 64 SDH1849-23 21.05 22.25 1.20 0.790 2.43 65 SDH1849-24 22.25 23.45 1.20 0.520 2.44 66 SDH1849-25 23.45 24.65 1.20 0.540 2.45 67 SDH1849-26 24.65 25.85 1.20 0.750 2.56 68 SDH1849-27 25.85 27.05 1.20 1.060 2.61 69 SDH1849-28 27.05 28.1 1.05 0.730 2.39 70 SDH1849-29 28.1 29.4 1.30 5.740 2.73 71 SDH1849-30 29.4 30.7 1.30 0.970 2.72 72 SDH1849-31 30.7 31.85 1.15 0.790 2.72 73 SDH1849-32 31.85 33.00 1.15 0.650 2.76 74 SDH1849-33 33.00 34.00 1.00 0.750 2.99 75 SDH1853-1 2.65 3.65 1.00 0.820 2.51 76 SDH1853-10 13.55 14.85 1.30 0.490 3.12 77 SDH1853-11 14.85 15.85 1.00 0.940 2.69 78 SDH1853-12 15.85 16.80 0.95 1.120 2.64 79 SDH1853-13 16.80 17.90 1.10 0.520 3.38 80 SDH1853-14 17.90 18.75 0.85 0.130 2.69 81 SDH1853-15 18.75 19.65 0.90 1.000 2.92 82 SDH1853-16 19.65 20.5 0.85 1.420 2.90 83 SDH1853-2 3.65 4.60 0.95 1.440 3.00 84 SDH1853-3 4.60 5.95 1.35 0.410 2.63 85 SDH1853-4 5.95 7.25 1.30 0.430 2.61 86 SDH1853-5 7.25 8.6 1.35 0.400 2.58 87 SDH1853-6 8.60 9.70 1.10 1.210 2.74 88 SDH1853-7 9.70 11.15 1.45 0.670 2.40 89 SDH1853-8 11.15 12.45 1.30 0.790 2.64 90 SDH1853-9 12.45 13.55 1.10 3.130 3.00 91 SDH1861-10 10.70 11.85 1.15 0.450 2.63 92 SDH1861-11 11.85 12.95 1.10 0.520 2.73 93 SDH1861-5 4.10 5.50 1.40 0.430 5.00 94 SDH1861-6 5.50 6.90 1.40 1.430 2.08 95 SDH1861-7 6.90 8.40 1.50 0.040 2.12 96 SDH1861-8 8.40 9.55 1.15 1.760 2.65 97 SDH1861-9 9.55 10.70 1.15 3.320 2.58 Moisture Content Measurement for Primary Material Measured Density Weight Dry Weight Moisture No. Sample From (m) To (m) Length (m) (g/cm3) (g) (g) (%) 1 SDH1843-105 153.75 154.75 1.00 3.02 1,075 1,075 0.0 2 SDH1843-110 156.20 157.20 1.00 2.98 455 455 0.0 3 SDH1843-113 159.50 160.10 0.60 3.13 610 610 0.0 4 SDH1843-114 160.10 161.25 1.15 2.83 445 440 1.1 5 SDH1843-115 161.25 162.40 1.15 2.81 340 330 2.9 6 SDH1843-116 162.40 163.55 1.15 2.82 365 365 0.0 7 SDH1843-117 163.55 164.65 1.10 2.65 350 345 1.4 8 SDH1843-118 164.65 165.85 1.20 3.34 655 650 0.8 9 SDH1843-119 165.85 167.05 1.20 3.21 650 645 0.8 10 SDH1843-120 167.05 168.25 1.20 3.44 315 315 0.0 11 SDH1843-121 168.25 169.45 1.20 3.07 375 370 1.3 12 SDH1843-122 169.45 170.65 1.20 3.04 470 470 0.0 13 SDH1843-123 170.65 171.85 1.20 2.87 375 375 0.0 14 SDH1843-124 171.85 173.20 1.35 3.08 455 455 0.0 15 SDH1843-125 173.20 174.65 1.45 2.98 550 550 0.0 16 SDH1846-69 279.75 280.70 0.95 2.97 405 395 2.5 17 SDH1846-70 280.70 282.05 1.35 3.97 680 665 2.2 18 SDH1846-71 282.05 283.40 1.35 3.15 435 425 2.3 19 SDH1846-73 284.30 285.25 0.95 3.09 485 480 1.0 20 SDH1846-75 286.45 287.80 1.35 2.91 335 330 1.5 21 SDH1846-76 287.80 288.75 0.95 3.06 460 455 1.1 22 SDH1846-78 290.05 291.25 1.20 2.90 455 455 0.0 23 SDH1846-80 292.35 293.15 0.80 3.38 445 435 2.2 24 SDH1846-81 293.15 294.05 0.90 3.66 495 490 1.0 25 SDH1715-140 139.40 140.25 0.85 2.95 520 515 1.0 26 SDH1715-143 142.70 144.00 1.30 2.91 310 310 0.0 27 SDH1715-144 144.00 145.50 1.50 2.89 200 195 2.5 28 SDH1715-145 145.50 146.40 0.90 3.02 210 200 4.8 29 SDH1715-146 146.40 147.35 0.95 2.90 365 365 0.0 30 SDH1715-155 151.80 152.55 0.75 3.60 455 450 1.1 31 SDH1715-156 152.55 153.45 0.90 2.82 425 425 0.0 32 SDH1715-157 153.45 154.60 1.15 3.69 495 490 1.0 33 SDH1715-158 154.60 155.70 1.10 3.96 350 345 1.4 34 SDH1715-159 155.70 156.65 0.95 3.63 280 280 0.0 35 SDH1715-160 156.65 157.60 0.95 3.42 205 205 0.0 36 SDH1715-161 157.60 158.60 1.00 4.15 150 150 0.0 37 SDH1715-162 158.60 159.80 1.20 3.19 145 145 0.0 38 SDH1715-163 159.80 160.95 1.15 3.40 185 170 8.1 39 SDH1715-166 163.00 164.15 1.15 2.90 270 265 1.9 40 SDH1715-205 200.45 201.40 0.95 3.07 300 295 1.7 41 SDH1715-206 201.40 202.30 0.90 3.00 260 255 1.9 42 SDH1715-207 202.30 203.30 1.00 3.14 410 410 0.0 43 SDH1715-209 204.20 205.00 0.80 3.08 180 180 0.0 44 SDH1715-210 205.00 205.90 0.90 2.81 420 420 0.0 45 SDH1715-211 205.90 206.85 0.95 2.87 220 220 0.0 46 SDH1715-212 206.85 207.70 0.85 3.38 195 190 2.6 47 SDH1715-213 207.70 208.65 0.95 2.88 495 495 0.0 48 SDH1715-214 208.65 209.70 1.05 2.87 420 415 1.2 49 SDH1715-216 210.55 212.05 1.50 3.01 420 420 0.0 50 SDH1715-217 212.05 213.45 1.40 2.98 360 355 1.4 51 SDH1715-221 213.45 214.50 1.05 2.90 345 345 0.0 Moisture Content Measurement for Primary Material Measured Density Weight Dry Weight Moisture No. Sample From (m) To (m) Length (m) (g/cm3) (g) (g) (%) 52 SDH1715-223 215.50 216.50 1.00 3.08 255 255 0.0 53 SDH1715-224 216.50 217.50 1.00 3.16 240 240 0.0 54 SDH171-41 50.85 52.00 1.15 2.84 335 335 0.0 55 SDH171-48 54.70 55.60 0.90 2.96 365 365 0.0 56 SDH171-49 55.60 56.80 1.20 3.20 265 265 0.0 57 SDH171-52 59.20 60.10 0.90 2.85 220 220 0.0 58 SDH171-53 60.10 60.95 0.85 3.27 160 155 3.1 59 SDH171-54 60.95 61.85 0.90 3.39 240 240 0.0 60 SDH171-55 61.85 62.80 0.95 2.91 165 160 3.0 61 SDH171-56 62.80 64.00 1.20 3.25 120 115 4.2 62 SDH171-57 64.00 64.95 0.95 3.18 110 110 0.0 63 SDH171-58 64.95 65.95 1.00 2.85 165 165 0.0 64 SDH171-59 65.95 67.00 1.05 2.95 265 265 0.0 65 SDH171-60 67.00 68.05 1.05 3.17 175 175 0.0 66 SDH171-61 68.05 68.75 0.70 2.88 120 120 0.0 67 SDH171-63 69.75 71.55 1.80 2.94 270 270 0.0 68 SDH171-67 71.55 72.90 1.35 3.17 330 325 1.5 69 SDH171-68 72.90 74.10 1.20 2.80 345 345 0.0 70 SDH171-69 74.10 74.95 0.85 2.80 240 240 0.0

Density for Primary Material at Sergeevskoe Average Density No. Sample No. From (m) To (m) Length (m) Au (g/t) (g/cm3) 1 SDH171-40 50.00 50.85 0.85 3.54 2.74 2 SDH171-41 50.85 52.00 1.15 0.31 2.84 3 SDH171-45 52.00 52.70 0.70 0.15 2.61 4 SDH171-46 52.70 53.70 1.00 1.30 2.75 5 SDH171-47 53.70 54.70 1.00 0.19 2.71 6 SDH171-48 54.70 55.60 0.90 1.59 2.96 7 SDH171-49 55.60 56.80 1.20 4.08 3.20 8 SDH171-50 56.80 58.30 1.50 0.81 2.79 9 SDH171-51 58.30 59.20 0.90 0.27 2.79 10 SDH1715-140 139.40 140.25 0.85 5.41 2.95 11 SDH1715-141 140.25 141.40 1.15 1.75 2.78 12 SDH1715-142 141.40 142.70 1.30 0.39 2.67 13 SDH1715-143 142.70 144.00 1.30 0.79 2.91 14 SDH1715-144 144.00 145.50 1.50 0.69 2.89 15 SDH1715-145 145.50 146.40 0.90 0.30 3.02 16 SDH1715-146 146.40 147.35 0.95 3.13 2.90 17 SDH1715-147 147.35 148.25 0.90 2.50 2.80 18 SDH1715-148 148.25 149.20 0.95 2.51 2.73 19 SDH1715-149 149.20 150.05 0.85 0.16 2.70 20 SDH1715-150 150.05 150.85 0.80 0.26 2.72 21 SDH1715-151 150.85 151.80 0.95 0.54 2.74 22 SDH1715-155 151.80 152.55 0.75 12.95 3.60 23 SDH1715-156 152.55 153.45 0.90 0.95 2.82 24 SDH1715-157 153.45 154.60 1.15 14.45 3.69 25 SDH1715-158 154.60 155.70 1.10 8.30 3.96 26 SDH1715-159 155.70 156.65 0.95 5.45 3.63 27 SDH1715-160 156.65 157.60 0.95 6.77 3.42 Density for Primary Material at Sergeevskoe Average Density No. Sample No. From (m) To (m) Length (m) Au (g/t) (g/cm3) 28 SDH1715-161 157.60 158.60 1.00 5.83 4.15 29 SDH1715-162 158.60 159.80 1.20 3.86 3.19 30 SDH1715-163 159.80 160.95 1.15 3.40 3.40 31 SDH1715-164 160.95 162.10 1.15 1.32 2.59 32 SDH1715-165 162.10 163.00 0.90 1.60 2.68 33 SDH1715-166 163.00 164.15 1.15 0.94 2.90 34 SDH171-52 59.20 60.10 0.90 0.17 2.85 35 SDH1715-205 200.45 201.40 0.95 1.09 3.07 36 SDH1715-206 201.40 202.30 0.90 1.10 3.00 37 SDH1715-207 202.30 203.30 1.00 3.96 3.14 38 SDH1715-208 203.30 204.20 0.90 0.79 2.79 39 SDH1715-209 204.20 205.00 0.80 1.96 3.08 40 SDH1715-210 205.00 205.90 0.90 0.35 2.81 41 SDH1715-211 205.90 206.85 0.95 0.34 2.87 42 SDH1715-212 206.85 207.70 0.85 6.87 3.38 43 SDH1715-213 207.70 208.65 0.95 0.55 2.88 44 SDH1715-214 208.65 209.70 1.05 0.35 2.87 45 SDH1715-215 209.70 210.55 0.85 0.48 2.77 46 SDH1715-216 210.55 212.05 1.50 4.67 3.01 47 SDH1715-217 212.05 213.45 1.40 1.16 2.98 48 SDH1715-221 213.45 214.50 1.05 0.87 2.90 49 SDH1715-222 214.50 215.50 1.00 0.48 2.71 50 SDH1715-223 215.50 216.50 1.00 2.95 3.08 51 SDH1715-224 216.50 217.50 1.00 5.77 3.16 52 SDH171-53 60.10 60.95 0.85 3.81 3.27 53 SDH171-54 60.95 61.85 0.90 7.18 3.39 54 SDH171-55 61.85 62.80 0.95 2.52 2.91 55 SDH171-56 62.80 64.00 1.20 0.62 3.25 56 SDH171-57 64.00 64.95 0.95 3.10 3.18 57 SDH171-58 64.95 65.95 1.00 3.08 2.85 58 SDH171-59 65.95 67.00 1.05 1.01 2.95 59 SDH171-60 67.00 68.05 1.05 0.33 3.17 60 SDH171-61 68.05 68.75 0.70 2.10 2.88 61 SDH171-62 68.75 69.75 1.00 1.05 2.70 62 SDH171-63 69.75 71.55 1.80 0.58 2.94 63 SDH1716-33 105.00 106.35 1.35 12.85 2.72 64 SDH1716-34 106.35 107.75 1.40 0.81 2.76 65 SDH1716-35 107.75 109.15 1.40 0.44 2.76 66 SDH1716-36 109.15 110.45 1.30 0.37 2.72 67 SDH1716-37 110.45 111.85 1.40 1.12 2.59 68 SDH1716-38 111.85 113.25 1.40 0.80 2.80 69 SDH1716-39 113.25 114.60 1.35 0.58 2.66 70 SDH1716-40 114.60 116.15 1.55 0.35 2.69 71 SDH1716-41 116.15 117.35 1.20 1.43 2.54 72 SDH1716-45 117.35 118.35 1.00 0.62 2.69 73 SDH1716-46 118.35 119.55 1.20 0.53 2.76 74 SDH1716-47 119.55 120.85 1.30 1.68 2.77 75 SDH1716-48 120.85 122.00 1.15 0.75 2.80 76 SDH1716-49 122.00 123.20 1.20 0.02 2.58 77 SDH1716-50 123.20 124.10 0.90 0.57 2.72 78 SDH1716-51 124.10 125.60 1.50 0.07 2.60 Density for Primary Material at Sergeevskoe Average Density No. Sample No. From (m) To (m) Length (m) Au (g/t) (g/cm3) 79 SDH1716-52 125.60 127.10 1.50 0.34 2.74 80 SDH1716-53 127.10 128.20 1.10 0.04 2.56 81 SDH1716-54 128.20 129.15 0.95 0.72 2.81 82 SDH1716-55 129.15 130.20 1.05 0.02 2.65 83 SDH1716-56 130.20 131.25 1.05 0.04 2.52 84 SDH1716-57 131.25 132.00 0.75 4.13 3.02 85 SDH1716-58 132.00 133.10 1.10 0.11 2.62 86 SDH1716-59 133.10 134.60 1.50 0.08 2.84 87 SDH1716-60 134.60 136.30 1.70 0.16 2.62 88 SDH1716-61 136.30 137.15 0.85 4.12 3.11 89 SDH1716-62 137.15 138.10 0.95 5.06 3.23 90 SDH171-67 71.55 72.90 1.35 6.31 3.17 91 SDH171-68 72.90 74.10 1.20 1.60 2.80 92 SDH171-69 74.10 74.95 0.85 0.52 2.80 93 SDH1717-100 111.15 112.15 1.00 17.70 2.93 94 SDH1717-101 112.15 113.15 1.00 0.66 2.80 95 SDH1717-102 113.15 114.15 1.00 4.03 3.05 96 SDH1717-67 76.10 77.05 0.95 1.38 2.80 97 SDH1717-68 77.05 78.05 1.00 1.47 2.74 98 SDH1717-69 78.05 79.25 1.20 0.89 2.76 99 SDH1717-70 79.25 80.20 0.95 0.99 2.71 100 SDH1717-71 80.20 81.30 1.10 1.73 2.74 101 SDH1717-72 81.30 82.30 1.00 0.89 2.70 102 SDH1717-73 82.30 83.40 1.10 1.23 2.72 103 SDH1717-74 83.40 84.55 1.15 0.34 2.69 104 SDH1717-75 84.55 85.60 1.05 0.20 2.68 105 SDH1717-76 85.60 86.65 1.05 0.47 2.71 106 SDH1717-77 86.65 87.70 1.05 2.81 3.10 107 SDH1717-78 87.70 88.80 1.10 9.44 2.96 108 SDH1717-79 88.80 89.80 1.00 2.44 2.80 109 SDH1717-93 102.00 103.50 1.50 0.58 2.71 110 SDH1717-94 103.50 104.85 1.35 0.37 2.80 111 SDH1717-95 104.85 106.30 1.45 0.11 2.67 112 SDH1717-96 106.30 107.50 1.20 0.97 2.86 113 SDH1717-97 107.50 108.70 1.20 0.35 2.99 114 SDH1717-98 108.70 110.10 1.40 0.25 2.65 115 SDH1717-99 110.10 111.15 1.05 4.00 2.55 116 SDH1821-128 315.95 316.85 0.90 2.62 3.15 117 SDH1821-129 316.85 317.75 0.90 0.99 2.86 118 SDH1821-130 317.75 318.70 0.95 4.27 3.20 119 SDH1821-131 318.70 320.30 1.60 0.21 2.68 120 SDH1821-135 320.30 321.30 1.00 0.31 2.64 121 SDH1821-136 321.30 322.45 1.15 2.75 2.61 122 SDH1821-137 322.45 323.45 1.00 0.80 2.56 123 SDH1821-138 323.45 324.25 0.80 0.21 2.64 124 SDH1821-139 324.25 325.05 0.80 0.21 2.51 125 SDH1821-140 325.05 326.05 1.00 0.97 2.76 126 SDH1821-141 326.05 326.95 0.90 1.71 3.07 127 SDH1821-142 326.95 327.95 1.00 0.45 2.70 128 SDH1821-143 327.95 329.05 1.10 12.30 2.74 129 SDH1821-144 329.05 330.15 1.10 0.81 2.72 Density for Primary Material at Sergeevskoe Average Density No. Sample No. From (m) To (m) Length (m) Au (g/t) (g/cm3) 130 SDH1821-145 330.15 331.35 1.20 0.95 2.60 131 SDH1821-146 331.35 332.85 1.50 1.00 3.13 132 SDH1821-147 332.85 333.85 1.00 0.54 2.60 133 SDH1821-148 333.85 334.85 1.00 0.50 2.59 134 SDH1821-149 334.85 335.95 1.10 0.33 2.68 135 SDH1821-150 335.95 337.15 1.20 1.08 2.63 136 SDH1821-151 337.15 338.35 1.20 0.52 2.53 137 SDH1821-152 338.35 339.50 1.15 0.05 2.55 138 SDH1821-153 339.50 340.40 0.90 1.76 3.04 139 SDH1821-154 340.40 341.90 1.50 0.15 2.50 140 SDH1821-158 341.90 343.15 1.25 0.62 2.92 141 SDH1821-159 343.15 344.40 1.25 0.43 2.60 142 SDH1821-160 344.40 345.60 1.20 1.01 2.60 143 SDH1821-161 345.60 346.95 1.35 3.20 2.90 144 SDH1821-162 346.95 348.00 1.05 0.61 2.61 145 SDH1826-75 157.75 158.35 0.60 1.96 2.88 146 SDH1826-76 158.35 159.65 1.30 1.23 2.60 147 SDH1826-77 159.65 160.85 1.20 0.26 2.77 148 SDH1826-78 160.85 162.00 1.15 0.32 2.76 149 SDH1826-79 162.00 163.05 1.05 1.57 2.69 150 SDH1826-80 163.05 164.10 1.05 0.40 2.76 151 SDH1826-81 164.10 165.15 1.05 1.49 3.25 152 SDH1826-82 165.15 166.20 1.05 0.54 2.66 153 SDH1826-83 166.20 167.25 1.05 0.33 2.51 154 SDH1826-84 167.25 168.35 1.10 0.29 2.56 155 SDH1826-85 168.35 169.90 1.55 1.66 2.70 156 SDH1826-89 169.90 170.95 1.05 5.61 2.83 157 SDH1830-100 239.80 240.80 1.00 4.18 3.15 158 SDH1830-101 240.80 241.80 1.00 2.70 2.72 159 SDH1830-102 241.80 242.80 1.00 2.19 2.78 160 SDH1830-103 242.80 243.70 0.90 0.38 2.74 161 SDH1830-104 243.70 244.60 0.90 3.49 3.10 162 SDH1830-105 244.60 245.70 1.10 0.59 2.76 163 SDH1830-106 245.70 246.70 1.00 0.54 2.50 164 SDH1830-111 247.95 249.15 1.20 8.38 3.49 165 SDH1830-112 249.15 250.65 1.50 9.60 3.23 166 SDH1830-113 250.65 251.85 1.20 0.08 2.57 167 SDH1830-114 251.85 252.35 0.50 4.70 2.92 168 SDH1830-115 252.35 252.80 0.45 1.91 2.61 169 SDH1830-116 252.80 254.20 1.40 2.28 2.73 170 SDH1830-117 254.20 255.70 1.50 2.43 2.79 171 SDH1830-118 255.70 257.00 1.30 0.57 2.66 172 SDH1843-105 153.75 154.75 1.00 6.41 3.02 173 SDH1843-110 156.20 157.20 1.00 6.24 2.98 174 SDH1843-111 157.20 158.35 1.15 0.17 2.74 175 SDH1843-112 158.35 159.50 1.15 0.42 2.74 176 SDH1843-113 159.50 160.10 0.60 7.06 3.13 177 SDH1843-114 160.10 161.25 1.15 0.56 2.83 178 SDH1843-115 161.25 162.40 1.15 0.74 2.81 179 SDH1843-116 162.40 163.55 1.15 0.62 2.82 180 SDH1843-117 163.55 164.65 1.10 0.23 2.65 Density for Primary Material at Sergeevskoe Average Density No. Sample No. From (m) To (m) Length (m) Au (g/t) (g/cm3) 181 SDH1843-118 164.65 165.85 1.20 12.80 3.34 182 SDH1843-119 165.85 167.05 1.20 1.50 3.21 183 SDH1843-120 167.05 168.25 1.20 3.38 3.44 184 SDH1843-121 168.25 169.45 1.20 0.75 3.07 185 SDH1843-122 169.45 170.65 1.20 9.43 3.04 186 SDH1843-123 170.65 171.85 1.20 0.44 2.87 187 SDH1843-124 171.85 173.20 1.35 1.50 3.08 188 SDH1843-125 173.20 174.65 1.45 0.65 2.98 189 SDH1846-67 277.55 278.70 1.15 0.83 2.68 190 SDH1846-68 278.70 279.75 1.05 0.44 2.71 191 SDH1846-69 279.75 280.70 0.95 2.29 2.97 192 SDH1846-70 280.70 282.05 1.35 10.20 3.97 193 SDH1846-71 282.05 283.40 1.35 7.42 3.15 194 SDH1846-72 283.40 284.30 0.90 0.61 2.73 195 SDH1846-73 284.30 285.25 0.95 3.74 3.09 196 SDH1846-74 285.25 286.45 1.20 0.70 2.70 197 SDH1846-75 286.45 287.80 1.35 1.12 2.91 198 SDH1846-76 287.80 288.75 0.95 2.21 3.06 199 SDH1846-77 288.75 290.05 1.30 0.18 2.62 200 SDH1846-78 290.05 291.25 1.20 1.44 2.90 201 SDH1846-79 291.25 292.35 1.10 0.16 2.57 202 SDH1846-80 292.35 293.15 0.80 1.67 3.38 203 SDH1846-81 293.15 294.05 0.90 6.56 3.66 APPENDIX 7: Comparison of Gold Grade in Block Model, Samples and Composites for Individual Zones Comparison of Gold Grade in Block Model, Samples and Composites for Individual Zones (except Zone 100) Volume Tonnes Composite Grade Au (g/t) Zone (,000m3) (Kt) No. Sample Composite BM 201 34.60 95.52 14 0.66 0.66 0.80 202 246.52 686.97 62 1.05 1.05 1.07 203 65.15 193.93 10 2.36 2.36 3.41 204 275.67 764.17 87 1.03 1.03 0.98 205 49.61 141.50 8 1.94 1.94 2.61 206 34.50 99.27 6 2.73 2.72 2.68 207 111.81 312.95 20 1.08 1.08 1.80 208 124.86 349.34 45 1.16 1.16 1.30 209 44.37 125.92 14 1.54 1.54 1.65 210 24.49 67.48 3 0.83 0.83 0.81 211 20.79 57.38 4 0.66 0.66 0.91 212 80.88 223.95 23 1.58 1.58 1.21 213 166.91 469.05 66 1.55 1.55 1.43 214 129.24 358.32 43 1.22 1.22 1.01 215 55.10 161.22 10 1.03 1.03 2.48 301 15.89 43.65 10 0.70 0.70 0.70 302 63.84 176.47 22 1.23 1.23 0.97 303 99.66 273.99 20 0.85 0.85 0.80 304 258.58 736.61 78 1.70 1.48 1.83 305 38.90 106.28 25 1.09 1.09 0.94 306 67.19 188.33 4 1.28 1.28 1.22 307 103.67 290.39 23 1.28 1.28 1.31 401 25.66 70.83 9 0.70 0.70 0.74 402 30.26 85.42 25 1.67 1.67 1.26 403 132.54 377.89 65 1.88 1.83 1.84 404 365.45 1,015.63 114 0.90 0.90 0.96 405 53.56 147.44 16 0.77 0.78 0.78 406 64.76 177.41 27 0.60 0.60 0.61 407 54.54 153.28 23 1.02 1.02 1.18 408 90.90 249.88 37 0.73 0.73 0.72 409 89.18 250.09 33 1.46 1.35 1.47 410 152.59 420.12 31 1.03 1.03 0.90 411 25.02 71.37 37 1.53 1.53 1.60 412 10.58 28.74 16 0.62 0.62 0.58 413 117.95 329.07 62 1.25 1.17 1.31 414 260.79 731.96 222 4.20 3.06 1.38 415 64.07 177.85 30 0.89 0.89 0.86 416 91.46 258.88 65 1.37 1.37 1.59 417 56.70 157.89 23 0.92 0.92 1.07 418 38.91 107.21 12 1.49 1.49 0.92 419 66.06 184.06 45 1.27 1.28 1.17 420 210.30 613.27 127 1.06 0.98 2.29 421 106.62 303.73 49 1.90 1.90 1.70 422 23.21 63.94 10 0.71 0.71 0.71 501 0.69 1.83 2 0.65 0.65 0.64 502 2.41 6.52 3 0.67 0.67 0.67 503 145.05 405.65 21 1.09 1.09 1.15 504 114.57 322.05 66 2.08 1.99 2.00 505 199.26 553.40 35 1.08 1.08 1.09 506 43.53 120.09 32 1.05 1.05 1.38 Comparison of Gold Grade in Block Model, Samples and Composites for Individual Zones (except Zone 100) Volume Tonnes Composite Grade Au (g/t) Zone (,000m3) (Kt) No. Sample Composite BM 507 77.12 215.04 40 1.30 1.30 1.41 508 38.25 111.70 6 1.80 1.80 2.49 509 5.41 16.47 2 3.08 3.01 3.79 510 26.11 72.58 8 1.23 1.23 1.22 511 8.49 23.23 5 0.61 0.61 0.61 512 34.54 94.20 22 0.87 0.87 0.88 513 31.74 88.15 10 0.97 0.97 1.04 514 40.34 110.80 7 0.71 0.71 0.70 515 27.17 74.76 16 0.77 0.77 0.86 516 144.21 408.01 25 0.98 0.98 1.42 517 145.29 402.87 27 1.03 1.03 1.05 518 41.36 116.03 13 1.18 1.18 1.38 519 36.86 103.84 7 1.58 1.58 2.19 520 4.51 12.35 3 1.01 1.01 1.09 521 9.71 26.65 4 0.76 0.76 0.70 522 99.70 279.63 10 1.17 1.18 1.36 601 135.88 380.89 16 1.14 1.14 1.21 602 69.85 196.28 21 1.08 1.08 1.74 603 168.74 465.44 57 0.94 0.94 1.02 604 27.84 76.23 5 0.62 0.62 0.63 605 147.90 417.61 38 1.74 1.74 1.53 606 110.46 319.57 42 1.68 1.68 2.56 607 73.27 209.40 22 1.42 1.42 2.05 608 48.43 136.83 13 1.56 1.56 1.46 609 88.60 246.71 10 0.90 0.90 0.95 701 181.70 507.99 51 1.17 1.17 1.09 702 248.19 704.21 57 1.16 1.16 1.50 703 406.10 1,164.65 172 1.93 1.93 1.83 704 362.22 1,047.96 129 1.94 1.94 2.03 705 130.02 367.21 17 1.24 1.24 1.34 706 92.03 255.82 14 1.06 1.06 0.92 707 35.94 98.38 4 0.68 0.68 0.75 708 8.22 23.08 7 1.25 1.24 1.20 709 115.75 323.21 18 1.13 1.13 1.05 710 123.17 346.72 44 1.27 1.27 1.29 711 168.75 473.76 68 1.08 1.08 1.21 801 128.45 359.35 15 1.51 1.51 1.32 802 198.75 579.03 73 1.51 1.51 2.91 803 18.99 53.25 3 1.00 1.00 1.06 804 58.39 166.34 4 1.55 1.55 1.60 805 48.70 139.95 9 1.53 1.53 1.71 806 38.79 109.72 2 1.44 1.44 1.44 807 69.30 190.00 48 1.57 1.57 1.43 808 34.13 95.48 6 1.00 1.00 1.01 809 54.46 152.13 6 1.13 1.14 1.19 810 156.37 440.36 10 1.64 1.64 1.33 811 57.82 160.12 18 0.96 0.96 0.93 812 241.22 688.73 17 1.89 1.88 2.05 813 117.89 334.25 30 2.72 2.72 2.37 901 0.90 2.42 2 1.03 1.03 1.03 Comparison of Gold Grade in Block Model, Samples and Composites for Individual Zones (except Zone 100) Volume Tonnes Composite Grade Au (g/t) Zone (,000m3) (Kt) No. Sample Composite BM 902 48.14 132.52 6 0.83 0.83 0.85 903 1.43 3.80 2 0.59 0.59 0.59 904 13.50 36.56 3 0.70 0.70 0.75 905 64.69 178.74 12 0.90 0.90 0.92 906 5.86 16.80 2 1.84 1.84 1.84 907 47.18 136.90 6 3.10 3.10 2.76 908 11.30 30.95 1 0.63 0.63 0.63 909 1.40 3.73 3 0.91 0.91 0.90 APPENDIX 8: Rejected Duplicates from QAQC Rejected Duplicates Original sample Duplicate sample Year, LAB, Original sample Duplicate sample value value exploration type Gold 2018, SGS, DH SDH1840-107 <0.01 SDH1840-108 <0.01 2 SDH1840-129 <0.01 SDH1840-130 <0.01 Silver 2017, ALS, DH SDH172-63 <0.5 SDH172-64 <0.5 SDH174-19 <0.5 SDH174-20 <0.5 SDH174-63 <0.5 SDH174-64 <0.5 SDH174-151 <0.5 SDH174-152 <0.5 SDH175-63 <0.5 SDH175-64 <0.5 SDH175-151 <0.5 SDH175-152 <0.5 SDH176-19 <0.5 SDH176-20 <0.5 SDH176-41 <0.5 SDH176-42 <0.5 SDH177-19 <0.5 SDH177-20 <0.5 SDH177-41 <0.5 SDH177-42 <0.5 SDH177-151 <0.5 SDH177-152 <0.5 SDH178-195 <0.5 SDH178-196 <0.5 SDH178-217 <0.5 SDH178-218 <0.5 SDH178-283 <0.5 SDH178-284 <0.5 SDH178-305 <0.5 SDH178-306 <0.5 SDH1710-85 <0.5 SDH1710-86 <0.5 SDH1711-41 <0.5 SDH1711-42 <0.5 SDH1711-63 <0.5 SDH1711-64 <0.5 SDH1711-85 <0.5 SDH1711-86 <0.5 SDH1711-107 <0.5 SDH1711-108 <0.5 SDH1712-19 <0.5 SDH1712-20 <0.5 SDH1713-129 <0.5 SDH1713-130 <0.5 SDH1713-151 <0.5 SDH1713-152 <0.5 SDH1713-173 <0.5 SDH1713-174 <0.5 47 SDH1718-41 <0.5 SDH1718-42 <0.5 SDH1718-86 <0.5 SDH1718-87 <0.5 SDH1718-129 <0.5 SDH1718-130 <0.5 SDH1718-150 <0.5 SDH1718-151 <0.5 SDH1713-107 <0.5 SDH1713-108 0.8 SDH174-129 <0.5 SDH174-130 0.7 SDH172-128 <0.5 SDH172-129 0.6 SDH177-129 <0.5 SDH177-130 0.6 SDH172-151 <0.5 SDH172-152 0.5 SDH172-329 <0.5 SDH172-330 0.5 SDH173-19 <0.5 SDH173-20 0.5 SDH174-105 <0.5 SDH174-106 0.5 SDH175-85 <0.5 SDH175-86 0.5 SDH1717-107 <0.5 SDH1717-108 0.5 SDH172-195 0.90 SDH172-196 <0.5 SDH1718-63 0.80 SDH1718-64 <0.5 SDH179-63 0.70 SDH179-64 <0.5 SDH172-261 0.60 SDH172-262 <0.5 SDH172-108 0.50 SDH172-109 <0.5 SDH174-85 0.50 SDH174-86 <0.5 SDH175-107 0.50 SDH175-108 <0.5 SDH177-63 0.50 SDH177-64 <0.5 SDH1715-107 0.50 SDH1715-108 <0.5 Rejected Duplicates Original sample Duplicate sample Year, LAB, Original sample Duplicate sample value value exploration type SDH1719-19 0.50 SDH1719-20 <0.5 2017, SGS, TR 17410679119 <0.3 17410679120 <0.3 17410679139 <0.3 17410679140 <0.3 17410679159 <0.3 17410679160 <0.3 17410679219 <0.3 17410679220 0.4 17210679039 <0.3 17210679040 0.3 17210679179 <0.3 17210679180 <0.3 17410684059 <0.3 17410684060 0.4 17410684079 <0.3 17410684080 <0.3 17410684099 <0.3 17410684100 0.4 17410684159 <0.3 17410684160 0.5 17410941039 <0.3 17410941040 <0.3 17410941059 <0.3 17410941060 <0.3 17410941079 <0.3 17410941080 <0.3 17210752159 <0.3 17210752160 <0.3 17210752179 <0.3 17210752180 0.3 S23ZTR173-19 <0.3 S23ZTR173-20 <0.3 S23ZTR173-41 <0.3 S23ZTR173-42 <0.3 S23ZTR173-63 <0.3 S23ZTR173-64 <0.3 S23ZTR173-85 <0.3 S23ZTR173-86 <0.3 S23ZTR174-63 <0.3 S23ZTR174-64 0.30 S23ZTR174-85 <0.3 S23ZTR174-86 <0.3 S23ZTR174-107 <0.3 S23ZTR174-108 0.30 S23ZTR174-129 <0.3 S23ZTR174-130 0.5 S23ZTR174-173 <0.3 S23ZTR174-174 <0.3 S23ZTR175-19 <0.3 S23ZTR175-20 <0.3 S23ZTR175-41 <0.3 S23ZTR175-42 <0.3 52 S23ZTR175-85 <0.3 S23ZTR175-86 <0.3 S23ZTR175-129 <0.3 S23ZTR175-130 <0.3 S23ZTR175-151 <0.3 S23ZTR175-152 <0.3 S23ZTR176-129 <0.3 S23ZTR176-130 0.5 S23ZTR179-19 <0.3 S23ZTR179-20 0.30 S23ZTR179-41 <0.3 S23ZTR179-42 <0.3 SKZTR1710-63 <0.3 SKZTR1710-64 <0.3 SKZTR1710-85 <0.3 SKZTR1710-86 0.40 SKZTR1710-107 <0.3 SKZTR1710-108 <0.3 S23ZTR1717-41 <0.3 S23ZTR1717-42 <0.3 S23ZTR1717-63 <0.3 S23ZTR1717-64 <0.3 S23ZTR1717-85 <0.3 S23ZTR1717-86 <0.3 S23ZTR1717-107 <0.3 S23ZTR1717-108 <0.3 S23ZTR1717-129 <0.3 S23ZTR1717-130 <0.3 S23ZTR1718-19 <0.3 S23ZTR1718-20 <0.3 S23ZTR1718-151 <0.3 S23ZTR1718-152 <0.3 S23ZTR1718-217 <0.3 S23ZTR1718-218 <0.3 S23ZTR1721-63 <0.3 S23ZTR1721-64 0.3 SDH171-41 <0.3 SDH171-42 <0.3 SKZTR1710-41 0.60 SKZTR1710-42 <0.3 17410684208 0.5 17410684209 <0.3 17410684119 0.40 17410684120 <0.3 SKZTR1711-19 0.40 SKZTR1711-20 <0.3 S23ZTR1716-19 0.40 S23ZTR1716-20 <0.3 17410679399 0.30 17410679400 <0.3 Rejected Duplicates Original sample Duplicate sample Year, LAB, Original sample Duplicate sample value value exploration type S23ZTR175-173 0.30 S23ZTR175-174 <0.3 2018, SGS, DH SDH1827-84 <0.3 SDH1827-85 <0.3 SDH1825-85 <0.3 SDH1825-86 <0.3 SDH1825-63 <0.3 SDH1825-64 <0.3 SDH1840-217 <0.3 SDH1840-218 <0.3 SDH1826-106 <0.3 SDH1826-107 <0.3 SDH1840-173 <0.3 SDH1840-174 <0.3 SDH1822-151 <0.3 SDH1822-152 <0.3 SDH1822-195 <0.3 SDH1822-196 <0.3 SDH1824-107 <0.3 SDH1824-108 <0.3 SDH1826-129 <0.3 SDH1826-130 <0.3 SDH1823-106 <0.3 SDH1823-107 <0.3 SDH1823-62 <0.3 SDH1823-63 0.30 24 SDH1822-130 <0.3 SDH1822-131 <0.3 SDH1823-28 <0.3 SDH1823-29 <0.3 SDH1824-63 <0.3 SDH1824-64 <0.3 SDH1825-129 <0.3 SDH1825-130 <0.3 SDH1822-173 <0.3 SDH1822-174 <0.3 SDH1823-40 <0.3 SDH1823-41 <0.3 SDH1835-129 <0.3 SDH1835-130 <0.3 SDH1823-129 <0.3 SDH1823-130 <0.3 SDH1840-107 <0.3 SDH1840-108 <0.3 SDH1840-129 <0.3 SDH1840-130 <0.3 SDH1823-84 0.50 SDH1823-85 <0.3 SDH1824-129 0.40 SDH1824-130 <0.3 2018, ALS, DH SDH1879-173 <0.5 SDH1879-174 <0.5 SDH1879-151 <0.5 SDH1879-152 0.5 SDH1879-239 <0.5 SDH1879-240 <0.5 SDH1875-173 <0.5 SDH1875-174 <0.5 SDH1876-41 <0.5 SDH1876-42 0.6 SDH1879-261 <0.5 SDH1879-262 <0.5 SDH1879-195 <0.5 SDH1879-196 <0.5 SDH1880-63 <0.5 SDH1880-64 <0.5 SDH1876-328 <0.5 SDH1876-329 <0.5 SDH1879-218 <0.5 SDH1879-219 <0.5 SDH1878-63 <0.5 SDH1878-64 1.0 SDH1878-106 <0.5 SDH1878-107 <0.5 SDH1879-129 <0.5 SDH1879-130 <0.5 31 SDH1876-283 <0.5 SDH1876-284 1.2 SDH1876-107 <0.5 SDH1876-108 0.7 SDH1873-107 <0.5 SDH1873-108 <0.5 SDH1878-150 <0.5 SDH1878-151 <0.5 SDH1872-63 <0.5 SDH1872-64 <0.5 SDH1875-151 <0.5 SDH1875-152 <0.5 SDH1873-129 <0.5 SDH1873-130 <0.5 SDH1873-62 <0.5 SDH1873-63 <0.5 SDH1872-19 <0.5 SDH1872-20 <0.5 SDH1878-39 <0.5 SDH1878-40 <0.5 SDH1872-106 <0.5 SDH1872-107 <0.5 SDH1873-85 <0.5 SDH1873-86 <0.5 SDH1878-129 1.3 SDH1878-130 <0.5 Rejected Duplicates Original sample Duplicate sample Year, LAB, Original sample Duplicate sample value value exploration type SDH1876-151 1.0 SDH1876-152 <0.5 SDH1880-107 0.9 SDH1880-108 <0.5 SDH1873-151 0.8 SDH1873-152 <0.5 SDH1878-19 0.8 SDH1878-20 <0.5 SDH1872-41 0.5 SDH1872-42 <0.5 2018, SGS, TR TR1823-41 <0.3 TR1823-42 <0.3 2 TR1823-63 <0.3 TR1823-64 <0.3 APPENDIX 9: JORC Table 1 Section 1 Sampling Techniques and Data Criteria JORC Code explanation Commentary Sampling • Nature and quality of sampling (eg cut channels, random chips, • Sampling was predominantly carried out using a combination of diamond techniques or specific specialised industry standard measurement tools core and trench channel. appropriate to the minerals under investigation, such as down Drilling Campaign 2016-2018 hole gamma sondes, or handheld XRF instruments, etc). These • Diamond drilling was used to obtain predominantly 1.0m samples examples should not be taken as limiting the broad meaning of (minimum length 0.25m to a maximum of 3.00m) that were subsequently sampling. cut in half along its length to produce half core for sample preparation • Include reference to measures taken to ensure sample (crushing/pulverising) to produce a sample for laboratory analysis. representivity and the appropriate calibration of any • Trenching was used to obtain predominately 1.0 samples (minimum length measurement tools or systems used. 0.10m to maximum a 2.00m). The entire material was used for sample • Aspects of the determination of mineralisation that are preparation (crushing/pulverising) to produce a sample for laboratory Material to the Public Report. analysis. • In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Drilling • Drill type (eg core, reverse circulation, open-hole hammer, • Drilling at Sergeevskoe has included diamond drilling only. techniques rotary air blast, auger, Bangka, sonic, etc) and details (eg core • In the majority of drillholes the core was oriented at the commencement diameter, triple or standard tube, depth of diamond tails, face- of every run to allow structural measurements to be made and all holes sampling bit or other type, whether core is oriented and if so, are subject to down-hole survey at generally 20.0m intervals. by what method, etc). • Data from HQ (63.5mm) and NQ (47.6mm) wireline diamond drillholes is used for interpretation and grade estimation. • The main drill campaigns at Sergeevskoe have taken place in 2016-2018. • A total of 82 diamond holes had been drilled for 17,100m. Drill sample • Method of recording and assessing core and chip sample • WAI is not aware of any specific measures taken to reduce losses through recovery recoveries and results assessed. drilling or that any drilling campaign suffered from poor recovery. • Measures taken to maximise sample recovery and ensure • Diamond drill recovery averages 95%. representative nature of the samples. • Due to good drilling practices followed at Sergeevskoe samples are • Whether a relationship exists between sample recovery and considered homogenous and representative. grade and whether sample bias may have occurred due to • No apparent relationship is observed between sample recovery and grade. Criteria JORC Code explanation Commentary preferential loss/gain of fine/coarse material. Logging • Whether core and chip samples have been geologically and • Core was logged on site by company geological personnel using a geotechnically logged to a level of detail to support appropriate standardised logging convention, to a level sufficient to support geological Mineral Resource estimation, mining studies and metallurgical interpretation, modelling, and subsequent mineral resource estimation. studies. • Core was geologically logged including a description of lithology, • Whether logging is qualitative or quantitative in nature. Core alteration/weathering, major structures, mineralisation, and veining, hence (or costean, channel, etc) photography. was performed on a qualitative basis. • The total length and percentage of the relevant intersections • Core was logged manually before transfer to an electronic system using logged. Excel spreadsheets. • Rock Quality Designation (RQD) measurements were also completed by the field geologists. Sub-sampling • If core, whether cut or sawn and whether quarter, half or all • Sample preparation has followed standard industry practices: techniques core taken. − Diamond drill core was cut lengthways along its long axis with half and sample • If non-core, whether riffled, tube sampled, rotary split, etc. and core used for subsequent sampling and the other half retained for preparation whether sampled wet or dry. reference purposes. • For all sample types, the nature, quality and appropriateness of • Sample preparation for Sergeevskoe has predominantly been carried out the sample preparation technique. by SGS lab (Chita), Russia. The sample preparation flowsheet generally • Quality control procedures adopted for all sub-sampling stages comprised: to maximise representivity of samples. − Drying at 105°C; • Measures taken to ensure that the sampling is representative − Samples crushed and pulverised, note every 50th sample screened to of the in situ material collected, including for instance results ensure satisfactory crushing; and for field duplicate/second-half sampling. − Pulp sample produced for assay analysis. • Whether sample sizes are appropriate to the grain size of the • The sample preparation techniques at Sergeevskoe has carried out by SGS material being sampled. lab and has followed recognised industry standards and are deemed appropriate. • Sub-sampling quality control has been maintained through use of company SOP’s being adopted to ensure consistency by following a standard set of practices throughout the process. • The use of duplicate sample analysis has been used throughout the drill campaign at Sergeevskoe in order to monitor precision and reproducibility. Quality of • The nature, quality and appropriateness of the assaying and • No geophysical or portable analysis tools were used to determine assay assay data and laboratory procedures used and whether the technique is values stored in the database. Handheld XRF machine was only used as a laboratory considered partial or total. guide while drilling and readings have not been included in review of the tests • For geophysical tools, spectrometers, handheld XRF data. Criteria JORC Code explanation Commentary instruments, etc, the parameters used in determining the • For the diamond drill samples and for trench channel samples QC results analysis including instrument make and model, reading times, (blank, duplicates, standards) were in line with commercial procedures, calibrations factors applied and their derivation, etc. reproducibility and accuracy. Standard (CRM) samples were initially • Nature of quality control procedures adopted (eg standards, obtained from Geostats Pty Ltd (Australia). blanks, duplicates, external laboratory checks) and whether • Sample preparation and analysis was carried out in SGS lab (Chita). acceptable levels of accuracy (ie lack of bias) and precision have Analysis was conducted for Au and Ag using FA with AA finishing for gold been established. and AA with ICP ending for silver; • Blank sample results show no significant contamination issues and the assays of the laboratory standards, which cover a range of metal values for each of Cu show no bias. • No systematic bias appears to be present in results. • The quality control and assurance data reviewed by the CP indicates the assays are generally within expected limits. The CP is satisfied the quality assurance and control data is sufficient to support the Mineral Resource classification presented herein. Verification of • The verification of significant intersections by either • All work has been supervised by senior technical staff. sampling and independent or alternative company personnel. • The Competent Person has verified the data based on information provided assaying • The use of twinned holes. by Orsu Metals and through site visits. • Documentation of primary data, data entry procedures, data • Significant intersections have not been verified by either independent or verification, data storage (physical and electronic) protocols. alternate company personnel. • Discuss any adjustment to assay data. • Logging data in the first instance was recorded by hand to form documentation for each hole that includes collar and down hole survey information and assay information once available. This information is transferred to an electronic database. • WAI completed a number of checks on the raw data and data entry process. Based on the verification work completed, WAI is confident that the compiled database is an accurate reflection of the available drilling data. • No adjustments to assay data have been made. • WAI visited the site in 2016 and 2018, and whilst drilling and sampling was being undertaken at the time the visit WAI was able to review the procedures followed and the results obtained. Location of • Accuracy and quality of surveys used to locate drill holes (collar • All data was supplied in the World Geodetic System 1984, Zone 50 Northern data points and down-hole surveys), trenches, mine workings and other Hemisphere (UTM). locations used in Mineral Resource estimation. • Collar positions for all holes were laid out by the on-site surveyor using a Criteria JORC Code explanation Commentary • Specification of the grid system used. differential GPS and then checked again once drilling was completed. • Quality and adequacy of topographic control. • Downhole surveys were carried out for all of the diamond drillholes. • Topographic surveys were conducted in 2017, and that being used for the current Mineral Resource Estimate. • The small differences between the GPS readings and the topographical survey data do not influence the mineralisation widths. Data spacing • Data spacing for reporting of Exploration Results. • Data spacing is down to 40m x 40m in a few places, though is generally and • Whether the data spacing and distribution is sufficient to between 60m and 100m, and is sufficient to establish geological and distribution establish the degree of geological and grade continuity mineralisation continuity appropriate for the reporting of Mineral appropriate for the Mineral Resource and Ore Reserve Resources. estimation procedure(s) and classifications applied. • Mineral Resources are classified as Inferred in accordance with the • Whether sample compositing has been applied. guidelines of the JORC Code (2012), and through geostatistical analysis considering the spatial distribution of sample data. • Sample compositing was carried out as part of the mineral resource estimation process. • The diamond drill and trench data spacing is deemed by the CP to be sufficient to imply/confirm geological and grade continuity, sufficient for the classification of Inferred resources only. • The average length of the samples is 1.10m therefore the composite length of 1.0m was chosen. Orientation of • Whether the orientation of sampling achieves unbiased • In general drilling is carried out so that the intersections of holes with data in sampling of possible structures and the extent to which this is mineralised zones occurs at a high angle which results in limited sample relation to known, considering the deposit type. bias. geological • If the relationship between the drilling orientation and the • The basis of the geological model in difference domain is broadly: structure orientation of key mineralised structures is considered to have o Domains 100 and 200 – south-west to south east striking; introduced a sampling bias, this should be assessed and o Domains 300, 400, 500 and 900 north-west striking; reported if material. o Domains 600, 700 and 800 east-west striking. Sub-vertical steeply dipping mineralisation zone hence drilling is generally inclined at -60° towards the strike of the zones. • Intercepts are reported as apparent thicknesses except where otherwise stated. Sample • The measures taken to ensure sample security. • Samples were transported regularly (typically weekly during the drilling security campaigns) by commercial carrier to SGS lab in Chita in sealed bags. • After preparation in the field, samples were packed into bags and Criteria JORC Code explanation Commentary dispatched to the freight forwarders directly by the Company. All bags were transported by the Company directly to the sample preparation/assay laboratory. The assay laboratory audits the samples on arrival and reports any discrepancies back to the Company. • Sample security was managed by the Company. The CP was not able to inspect the sample dispatches and relies on the Company’s representative to ensure that no discrepancies occurred, and the chain of custody is acceptable. Audits or • The results of any audits or reviews of sampling techniques and • WAI has visited the Sergeevskoe Property in 2016 and 2018 and reviewed reviews data. the sampling techniques with Company personnel.

Section 2 Reporting of Exploration Results Criteria JORC Code explanation Commentary Mineral • Type, reference name/number, location and ownership • The Sergeevskoe license is located in eastern part of Zabaikal Region, tenement and including agreements or material issues with third parties such Russia, some 440km of Chita city, the region capital, and centred on land tenure as joint ventures, partnerships, overriding royalties, native title coordinates 53°32’N, 116°25.5’E. status interests, historical sites, wilderness or national park and • LLC SC "Alexandrovskoe", a subsidiary of Sibzoloto Investments Limited environmental settings. (“Sibzoloto”), a Cyprus registered company and the sole owner of LLC GK • The security of the tenure held at the time of reporting along Alexandrovskoe. with any known impediments to obtaining a license to operate • The license was issued on 31 December 2013 and it is valid until 31 in the area. December 2031. • Orsu acquired privately owned Sibzoloto on 18 May 2017 in a share and cash transaction. Orsu currently owns 90% share in Sibzolot. • The Sergeevskoe license covers an area of 7.6 km2. • WAI is not aware of any known impediments to obtaining and maintaining a licence to operate the Sergeevskoe Project. • The CP has relied on the information provided by Orsu Metals that the tenement is in good standing and all fees are paid. Exploration • Acknowledgment and appraisal of exploration by other parties. • Sergeevskoe is greenfield site, the previous works have included soil- done by other geochemistry and sampling at 1:10,000 scale as well as different ground parties and airborne geophysical survey methods. • Prospecting/exploration activities include surface trenching, restricted amount of drilling and underground developments (shallow shafts and adits with cross-cuts). Criteria JORC Code explanation Commentary • Predominately the exploration activity was between 1960s-1970s as part of prospecting at the nearest vicinities of Kluchevskoe Gold Deposit. The work was carried out by state-owned geological enterprises. Geology • Deposit type, geological setting and style of mineralisation. • Sergeevskoe Property is part of Davendisko-Kluchevkogo metallogenic zone. More than 60% of Sergeevskoe area is occupied by the Davendinskaya early Jurassic intrusion of the Amanskiy intrusion complex which is represented by biotite-hornblende diorite, diorite, quartz diorite, granite and porphyry granite. Proterozoic granitoid occupies the northern part of the area. The intrusive rock is represented by biotite granite, granite-diorite and migmatite. The contact of the Davendinskaya intrusion and Proterozoic granitoid has a northeast strike. • The mineralisation occurs on north-western exo- and endocontact of Davendovskay Proterozoic intrusion where it is coincided with Jurassic intrusions. • Mineralisation is controlled by Kluchevsko-Davendinskiy (main east-west fault at Kluchevskoe deposit) and Alekseevsko-Glubokinskiy faults. The mineralisation is located within feather tectonic structures of these faults. • Mineralisation is accompanied by alteration process represented by silicification, potassic alteration, berezitisation, tourmalinisation, pyritization and other alteration. • Mineralised zones are grouped are grouped into several domains of predominately east-west, north-west and south-south-west strike. • The mineralised structures are sub-vertical. Drill hole • A summary of all information material to the understanding of • Exploration data held in the database and used in the mineral resource Information the exploration results including a tabulation of the following estimate can be summarised as follows: information for all Material drill holes: − Number of drillholes – 82; o easting and northing of the drill hole collar − Number of trenches – 48; o elevation or RL (Reduced Level – elevation above sea level in − East collar ranges – 20,659,010m to 20,659,855m metres) of the drill hole collar − North collar ranges – 5,936,340m to 5,937,205m o dip and azimuth of the hole − Collar elevation ranges – 936,9m to 1,068.6m o down hole length and interception depth − Azimuth ranges – 0° to 360° o hole length. − Dip ranges – 50° to -90° • If the exclusion of this information is justified on the basis that − Length of holes/trenches – 8m to 844m the information is not Material and this exclusion does not • The data of drillholes SDH18-55 and SDH18-56 and trench STR18-31 was detract from the understanding of the report, the Competent Criteria JORC Code explanation Commentary Person should clearly explain why this is the case. included in the MRE as they were developed in 480m apart from the main exploration area. • Both diamond drillhole and trench information and assay results were used in the Mineral Resource Estimation. Data • In reporting Exploration Results, weighting averaging • Top cutting was used during the mineral resource estimation process to aggregation techniques, maximum and/or minimum grade truncations (eg reduce the potential for outlier grades to have an overbearing effect on methods cutting of high grades) and cut-off grades are usually Material estimated block grades. Top-cutting is based on decile analysis and log and should be stated. probability graphs for all zones and applied to Au and Ag (detailed in the • Where aggregate intercepts incorporate short lengths of high main body of the text). grade results and longer lengths of low grade results, the • No metal equivalent equations were used during the mineral resource procedure used for such aggregation should be stated and estimation procedure or reporting. some typical examples of such aggregations should be shown in • Samples were composited to 1m lengths during the mineral resource detail. estimation procedure to ensure a consistent level of support during the • The assumptions used for any reporting of metal equivalent estimation process. values should be clearly stated. Relationship • These relationships are particularly important in the reporting • The nature of the main zones of mineralisation at Sergeevskoe is well between of Exploration Results. recognised as being steeply dipping narrow vein structures. mineralisation • If the geometry of the mineralisation with respect to the drill • In general drilling is carried out so that the intersections of holes with widths and hole angle is known, its nature should be reported. mineralised zones occurs at a high angle to minimise sample bias. intercept • If it is not known and only the down hole lengths are reported, • Down hole length reflects drilled meters not the true width of the lengths there should be a clear statement to this effect (eg ‘down hole mineralised structures. length, true width not known’). Diagrams • Appropriate maps and sections (with scales) and tabulations of • Appropriate data tabulations, plans and sections showing the nature of the intercepts should be included for any significant discovery being mineralisation, exploration and final mineral resource estimate are included reported These should include, but not be limited to a plan view in the main body of the report. of drill hole collar locations and appropriate sectional views. Balanced • Where comprehensive reporting of all Exploration Results is not • Individual exploration results are not being reported. This section is not reporting practicable, representative reporting of both low and high considered relevant to the overall reporting of the mineral resource grades and/or widths should be practiced to avoid misleading estimate. reporting of Exploration Results. • 80 diamond drillholes and 47 trenches have been completed on the Sergeevskoe Project and used for the current Mineral Resource Estimate. Other • Other exploration data, if meaningful and material, should be • Metallurgical testwork was used to define recovery factors during pit substantive reported including (but not limited to): geological observations; optimisation used as a basis for limiting potential Mineral Resources based geophysical survey results; geochemical survey results; bulk on the expectation of economic extraction. Criteria JORC Code explanation Commentary exploration samples – size and method of treatment; metallurgical test • Geotechnical data of adjacent Kluchevskoe deposit was used at data results; bulk density, groundwater, geotechnical and rock Sergeevskoe. characteristics; potential deleterious or contaminating • Density measurement was completed on 97 samples for oxide material and substances. 203 samples for primary material. Further work • The nature and scale of planned further work (eg tests for • Over the next 12 months, Orsu is focussed on expanding the current lateral extensions or depth extensions or large-scale step-out resource base through a targeted trenching (circa 3,000m) and drilling (circa drilling). 3,500m) programme. Subject to positive results, this will then progress into • Diagrams clearly highlighting the areas of possible extensions, a subsequent drilling programme in the order of 6,000m (not included including the main geological interpretations and future drilling within this initial budget) to include more detailed metallurgical testwork. areas, provided this information is not commercially sensitive. • Mineralisation is open along strike toward the west and north-west as well as down dip. • Appropriate plans and sections are included in the main body of the report.

Section 3 Estimation and Reporting of Mineral Resources Criteria JORC Code explanation Commentary

Database • Measures taken to ensure that data has not been corrupted by, • The project database is held in .csv and Datamine format files. Data held integrity for example, transcription or keying errors, between its initial includes; collar location, downhole surveys, assay information, lithology and collection and its use for Mineral Resource estimation purposes. oxidation. Also held in Microsoft Excel spreadsheets is information on • Data validation procedures used. duplicate samples and certified reference materials. • Access to the Sergeevskoe drilling/trenching database used for resource estimation is restricted to geological and selected technical staff. • WAI completed a number of checks on the raw data supplied by Orsu Metals and is satisfied that the data does not contain significant errors nor has it been corrupted. • Validation of the database was carried out during import of the data in to Datamine Studio 3 for production of the mineral resource estimate, no major issues were found with duplicate or overlapping samples. Site visits • Comment on any site visits undertaken by the Competent • The Competent Person (Dr Phil Newall) visited the site between the 2 and 3 Person and the outcome of those visits. November 2016 and between 5 and 7 June 2018. • If no site visits have been undertaken indicate why this is the • The site visit included inspection of the Orsu drilling and trenching case. operations, and discussions with on-site technical and geological staff to verify the database, geological model and resource estimation. Criteria JORC Code explanation Commentary

Geological • Confidence in (or conversely, the uncertainty of) the geological • Grade estimation for Sergeevskoe uses diamond drilling and trench interpretation interpretation of the mineral deposit. sampling only. • Nature of the data used and of any assumptions made. • The confidence in the geological interpretation is deemed good. Exploration • The effect, if any, of alternative interpretations on Mineral drilling has been carried out on a grid down to 40m x 40m, though more Resource estimation. typically between 60m and 100m, and geological logging is comprehensive. • The use of geology in guiding and controlling Mineral Resource • Geological logging has been carried out from drill core samples and in estimation. trenches and used to aid definition of mineralised domains within the • The factors affecting continuity both of grade and geology. overall resource model. • The wireframes used to constrain the block model and grade interpolation were constructed based on Orsu’s understanding of the geology, mineralisation, and alteration of the Sergeevskoe deposit. • Namely, the resource model reflects the interpretation of an east-west, north-west and south-west orientated multi-vein system (zones) reflecting areas of elevated mineralisation. Dimensions • The extent and variability of the Mineral Resource expressed as • The mineralisation is split on a few domains which have east-west, north- length (along strike or otherwise), plan width, and depth below west and south-west strike. The overall mineralisation dimension is ~950m surface to the upper and lower limits of the Mineral Resource. in east-west direction and ≈900n from south to north. • The current mineral resource is constrained by an optimised open pit with a strike length of 1,020m, width of 950m at the crest, and a maximum depth of pit = 440m (measured from northern highwall to the pit bottom). • The unconstrained block model has a maximum depth of mineralisation to 385m from the surface. Estimation and • The nature and appropriateness of the estimation technique(s) • Multiple domains were created to represent each of the mineralised modelling applied and key assumptions, including treatment of extreme structures (zones). techniques grade values, domaining, interpolation parameters and • DTM surfaces were created to represent the topographical surface, maximum distance of extrapolation from data points. If a overburden material and base of oxide/primary material. computer assisted estimation method was chosen include a • A block model was created using the geological and mineralised zone description of computer software and parameters used. wireframes as boundaries. A parent block size of 10m (X) x 10m (Y) x 10m • The availability of check estimates, previous estimates and/or (Z) was used in the block model with key fields established for geological mine production records and whether the Mineral Resource and mineralised domains. Additional key fields were established to denote estimate takes appropriate account of such data. oxide and fresh rock domains. • The assumptions made regarding recovery of by-products. • Grade capping: Grade capping was carried out to stop local overestimation • Estimation of deleterious elements or other non-grade variables of grade from high-grade outlier samples. Grade capping was used for all of economic significance (eg sulphur for acid mine drainage variables on a zone by zone basis where outlier grades were identified Criteria JORC Code explanation Commentary

characterisation). using a combination of decile analysis and a review of log-probability plots. • In the case of block model interpolation, the block size in • Composites: A 1m composite length was chosen to ensure consistent relation to the average sample spacing and the search sample support during estimation. Composites were limited to the employed. boundaries of mineralised domains. • Any assumptions behind modelling of selective mining units. • Variography: A variographic study by domain identified reasonably robust • Any assumptions about correlation between variables. variogram models for Au across seven domains. • Description of how the geological interpretation was used to • Estimation: Estimation was carried out using Inverse distance (squared) as control the resource estimates. the primary method. Ordinary Kriging estimate was carried out for • Discussion of basis for using or not using grade cutting or validation purposes. Only composite samples within an individual zone capping. were used for estimation of that zone. Estimation parameters were based • The process of validation, the checking process used, the on models of grade continuity produced during geostatistical analysis. comparison of model data to drill hole data, and use of Dynamic anisotropy was used to change orientations of search ellipses reconciliation data if available. based on local variations of dip and strike. Minimum and maximum sample criteria, an octant search restriction and restrictions of number of composite samples from a single drillhole were employed during grade estimation to assist with declustering and to reduce local grade bias. A multiple pass estimation as carried out with expanding search ellipses and less restrictive estimation parameters for estimating blocks in more poorly sampled areas. • Estimation was carried out in to parent cells only to reduce risk of conditional bias. Estimation was carried out using a discretisation of five points in each dimension. • The block model was verified first by comparing drillhole composite sample values with estimated block values on a sectional and plan basis. Grade comparison was also carried out statistically by zone to ensure the global grade estimate was unbiased. Grade profile (swath) plots were also constructed to compare modelled grades and input composite grades in slices or varying width. During this process a comparison was made between declustered and clustered data to identify any possible local bias introduced by irregular grade spacing. • No estimation of deleterious components was carried out. • The estimated block model was validated by visual inspection of block grades in comparison with drillhole data, and comparison of the block model statistics. Criteria JORC Code explanation Commentary

Moisture • Whether the tonnages are estimated on a dry basis or with • All tonnages are reported as dry tonnages. natural moisture, and the method of determination of the • Moisture content has been measured using weighting waxed samples and moisture content. dried ones. Cut-off • The basis of the adopted cut-off grade(s) or quality parameters • Mineralised zones are defined at a natural cut-off grade of 0.5% Au. parameters applied. • The mineral resource estimate is restricted to material falling within an NPV Scheduler optimised pit shell as described below in “Mining factors or assumptions”, and above a cut-off grade representing breakeven cut-off grade derived from open pit optimisation parameters for each zone (Oxide and Fresh). Mining factors • Assumptions made regarding possible mining methods, • The Project is deemed to be appropriate to being mined by the or minimum mining dimensions and internal (or, if applicable, continuation of standard open pit mining operations. assumptions external) mining dilution. It is always necessary as part of the • Reporting of mineral resources suitable for open pit extraction were limited process of determining reasonable prospects for eventual by the creation of an optimised open pit shell in NPV Scheduler. The pit economic extraction to consider potential mining methods, but shell was created with the following major parameters: the assumptions made regarding mining methods and − Gold price of US$1,350/oz parameters when estimating Mineral Resources may not − Oxide mineralisation mining cost of US$1.2/t always be rigorous. Where this is the case, this should be − Primary mineralisation mining cost of US$1.5/t reported with an explanation of the basis of the mining − Waste mining cost of US$1.2/t assumptions made. − Overburden mining cost of US$1.0/t − Total processing cost of US$8.0/t − G&A cost of US$1.5/t − Royalty cost of US$6.0/t − Processing recovery for Oxide of 93.0% and for Primary of 85.0% − Slope angle between 51° − Mining dilution of 0% and mining losses of 0% Metallurgical • The basis for assumptions or predictions regarding • Metallurgical recovery was utilised during the construction of an optimised factors or metallurgical amenability. It is always necessary as part of the pit shell used for limiting mineral resources based on an expectation of assumptions process of determining reasonable prospects for eventual eventual economic extraction. economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. Criteria JORC Code explanation Commentary

Environmental • Assumptions made regarding possible waste and process • WAI is unaware of any environmental factors which would preclude the factors or residue disposal options. It is always necessary as part of the reporting of Mineral Resources. assumptions process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. Bulk density • Whether assumed or determined. If assumed, the basis for the • Density measurements have been taken for oxide and primary material with assumptions. If determined, the method used, whether wet or respect to natural moisture. dry, the frequency of the measurements, the nature, size and • A total of 97 density measurements have been taken for oxide material and representativeness of the samples. 203 measurements for primary material. • The bulk density for bulk material must have been measured by • Measurements were made using the Archimedes water immersion method, methods that adequately account for void spaces (vugs, the results were recorded and imported into Excel spreadsheet. porosity, etc), moisture and differences between rock and • Density was assigned to the block model during the Mineral Resource alteration zones within the deposit. estimation by applying the mean values for oxide material and following • Discuss assumptions for bulk density estimates used in the formula for primary material: evaluation process of the different materials. Density = - 0.00072 x (Au g/t)2 + 0.1363 x (Au g/t) +2.6687 • Moisture content was measured and applied for oxide and primary material. Classification • The basis for the classification of the Mineral Resources into • Mineral Resource classification in accordance with the guidelines of the JORC varying confidence categories. Code (2012). • Whether appropriate account has been taken of all relevant • Sergeevskoe Gold Project is considered to be at an early stage of factors (ie relative confidence in tonnage/grade estimations, development, based on limited exploration data, and that the interpretation reliability of input data, confidence in continuity of geology and of the mineralisation is largely based on assumed geological/structural metal values, quality, quantity and distribution of the data). features of the deposit rather than on the existing mineralised intercepts. • Whether the result appropriately reflects the Competent Furthermore, there is no robust definition of oxide/primary mineralisation Person’s view of the deposit. based on the appropriative assay data and/or metallurgical testwork and as such the resources are reported of Inferred category only. • The mineral resource estimate classification reflects the Competent Person’s view of the Sergeevskoe Project. • Mineral Resources were limited using an optimised pit shell using parameters Criteria JORC Code explanation Commentary

as laid out in the main section of the report and as described in “Mining factors and assumptions” above. • The mineral resource estimate has been limited to the surveyed surface as detailed in the main report. Audits or • The results of any audits or reviews of Mineral Resource • WAI is not aware of any audits or reviews of this Mineral Resource Estimate reviews estimates. other than internal peer review.

Discussion of • Where appropriate a statement of the relative accuracy and • The relative accuracy and confidence in the mineral resource estimate is relative confidence level in the Mineral Resource estimate using an reflected in the reporting of the mineral resource as set out in the JORC accuracy/ approach or procedure deemed appropriate by the Competent Code (2012) Person. For example, the application of statistical or • confidence The statement relates to global estimates of tonnes and grade. geostatistical procedures to quantify the relative accuracy of • The classification applied to the mineral resource estimate is based upon; the resource within stated confidence limits, or, if such an confidence of continuity of mineralisation, quality of data (QA/QC) and approach is not deemed appropriate, a qualitative discussion of validation of the block model. the factors that could affect the relative accuracy and confidence of the estimate. • The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. • These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.