TECHNICAL REPORT FOR THE CREPULJA PROPERTY, MITROVICA DISTRICT, KOSOVO

Latitude 42°50’N, Longitude 20°40'E

For

ALTAIR GOLD INC., 800 - 1199 West Hastings St., Vancouver, BC V6E 3T5

By

Perry Grunenberg, P.Geo. PBG Geoscience, Kamloops, BC,

Report Date: December 15, 2015 Effective Date: November 15, 2015

TABLE OF CONTENTS 1 Summary ...... 1 1.1 Introduction ...... 1 1.2 Project Background ...... 1 1.3 Geology and Mineralization ...... 2 1.4 Conclusions and Recommendations ...... 3 2 Introduction and Terms of Reference ...... 4 3 Reliance on Other Experts ...... 5 4 Property Description and Location ...... 5 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ...... 9 6 History ...... 11 7 Geological Setting and Mineralization ...... 12 7.1 Property Geology ...... 12 7.2 Mineralization ...... 17 8 Deposit Types ...... 18 9 Exploration ...... 20 9.1 Soil Geochemistry – 2007 (From slowey, 2009) ...... 20 9.2 Rock Geochemistry – 2007 (from slowey, 2009) ...... 20 9.3 Trench sampling – 2007 and 2008 ...... 20 9.4 Geophysics ...... 25 9.4.1 UltraGPR (Ground Penetrating Radar) - 2007 ...... 25 10 Drilling ...... 27 10.1 Protocols ...... 29 10.1.1 Downhole Survey Methodology ...... 29 10.1.2 Collar Survey Methodology ...... 30 10.1.3 Drill Core Protocols ...... 30 11 Sample Preparation, Analyses and Security ...... 31 11.1 Sample Collection ...... 31 11.1.1 Soil Samples ...... 31 11.1.2 Trench Samples ...... 31 11.1.3 Core Samples ...... 31 11.2 Preparation and Analyses ...... 32 11.2.1 Quality Assurance Protocols ...... 32 11.3 Security ...... 32 11.4 Conclusions ...... 33 12 Data Verification...... 34 12.1 Trench Locations ...... 34 12.2 Drillhole Collar Locations ...... 34 12.3 Drill Core ...... 34 12.4 Drillhole and Trench Database ...... 34 12.5 Assay Results and Quality Control ...... 34 12.6 Spot Check Assays ...... 35 12.7 Conclusions ...... 35 12.8 Recommendations ...... 35 13 Mineral Processing and Metallurgical Testing ...... 37 14 Mineral Resource Estimate ...... 37

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15 through 22 are not applicable to this Technical Report ...... 37 23 Adjacent Properties ...... 38 24 Other Relevant Data and Information ...... 39 25 Interpretation and Conclusions ...... 40 26 Recommendations ...... 41 27 References ...... 43 Signature Page ...... 44 Certificate of Qualifications for Perry Grunenberg ...... 45 Authors Consent applicable to this report ...... 46

LIST OF FIGURES Figure 1: Location Map ...... 7 Figure 2: Kosovo Geologic Map ...... 13 Figure 3: Mitrovica and Crepulja Property area geology map (from Geology of Kosovo) ...... 14 Figure 4: Legend to go with figures 3 and 4 ...... 15 Figure 5: Composite Plan of Crepulja showing geology and zinc soil geochemistry (Slowey, 2009) ...... 16 Figure 6: Schematic model for formation of Crepulja mineralization (from Slowey, 2009) ...... 17 Figure 7: Simplified schematic showing relationships relations between structure and type of Pb-Zn deposits of Kosovo (from Elezaj and Kodra, 2012) ...... 18 Figure 8: Zinc-in-soil, historic soil geochemistry results (left) compared to Lydian's check sample results (right) (Snowey, 2009) ...... 21 Figure 9: Lead-in-soil, historic soil geochemistry results (left) compared to Lydian's check sample results (right) (Slowey, 2009) ...... 22 Figure 10: Clarification of contour intervals used in soil sample result shown in Figures 8 and 9 ...... 22 Figure 11: Trench location plan with the zinc results from Lydian’s continuous rock chip sampling (Slowey, 2009) ...... 23 Figure 12: Detailed plan of zinc results for Lydian’s continuous rock chip sampling (Slowey, 2009) ...... 24 Figure 13: UltraGPR profile showing apparent vertical features to a depth of 50-60 m ...... 26 Figure 14: Drillhole location map 2008 ...... 28 Figure 15: Drillhole cross section ...... 29 Figure 16: PBG check samples from trenches 1 and 2...... 36

LIST OF TABLES Table 1: Selected composite values for trench sample results ...... 24 Table 2: Summary of 2008 drilling ...... 27 Table 3: PBG check sample description and results for Zn, Pb, Fe, Mn, and As...... 36

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GLOSSARY

Symbols and Units of Measurement

Centimeters……………………………………………………………………………………………………..………….…………………….…cm Degrees………………………………………………………………………………………………..…………………………………………...….…° Degrees Celsius……………………………………………………………………..…………………………………………………………….…°C Equal to……………………………………………………………………………………………………………………………………………………= Gram………………………………………………………………………………………………………………………………………..…………..…g Grams per tonne………………………………………………………………………………………………………………………….…….…g/t Greater than……………………………………………………………………………………………………………………………………..….…> Hectare……………………………………………………………………………………………………………………………………………….…ha Kilograms ………………………………………………………………………………………………………………………………..………….…kg Kilometres………………………………………………………………………………………………………………………………………….…km Less than……………………………………………………………………………………………………………………………………………….…< Metre…………………………………………………………………………………………………………………………………….…………….…m Micron.………………………………………………………………………………………………………………………………………..……….…µ Millimeter.…………………………………………………………………………………………………………………..………….……….…mm Minus…………………………………………………………………………………………………………………………………………………….…- One half …………………………………………………………………………………………………………………..………………………….…½ One quarter …………………………………………………………………………………………………………………….………………….…¼ Ounce………………………………………………………………………………………………………………………………………………….…oz Parts per billion……………………………………………………………………………………………………….……………………….…ppb Parts per million……………………………………………………………………………………………………..……………………….…ppm Percent………………………………………………………………………………………………………………………………….…………….…% Plus ……………………………………………………………………………………………………………………………………….….………….…+ Plus or minus………………………………………………………………………………………………………….…………………………….…± Square kilometres ……………………………………………………………………………………………………………………..…….…km² Tonnes ………………………………………………………………………………………………………………………………………………….…t

Abbreviations and Acronyms

Altair Gold Inc. .….………………………………………………………………………………………………………………….…….…Altair ALS Minerals…………………………………………………………………………………………………………..……………………………ALS Atomic absorption………………………………………………………………………………………………………………….………….…AA Certified reference material. …………………….…………………………………………………………………………….…standards Copper………………………………………………………………….…………………………………………………………………………….…Cu East……………………………………………………………………………………………………………………………………………………….…E Fire assay ……………………………………………………………………………………………………………………….………………….…FA Formation………………………………………………………………………………………………………………………………………….…Fm Gold……………………………………………………………………………………………………………………………………………..…….…Au Group………………………………………………………………………………..……………………………………………………………….…Gp Highway……………………………………………………………………………………………….………………………………………….…Hwy Incorporated…………………………………………………………………………………..………………………………………………….…Inc Induced Polarization ………………………………………………………………………………………..………………………………….…IP Inductively coupled plasma mass spectrometry ……………………………………………………………………………ICP-MS International Standards Organization …………………………………..…………………………………….…………………….…ISO

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Kosovo Resource Company…………………………………………………………………………………………………………………KRC lead ……………………………………………………………………………………………………………….………………………………….…Pb Limited………………………………………………………………………………………………………………………..…………………….…Ltd Lydian International Ltd…………………………………………………………………………………..………………………………Lydian National Instrument 43-101 ……………………………………………………………………………..…………………….…NI 43-101 North…………………………………………………………………………..……………………………………………………………………….…N PBG Geoscience…………………………………………………………………………………………………………….……………………PBG Quality control ……………………………………………………………………………………………………………………….………….…QC Universal Transverse Mercator ………………………………………………………………………………..…………………….…UTM Very low frequency electromagnetics ……………………………………………………………………………………….…VLF-EM zinc……………………………………………………………………………………………………………………………………………………….Zn

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1 SUMMARY

1.1 INTRODUCTION

Perry Grunenberg, P. Geo, of PBG Geoscience (PBG) in Kamloops, British Columbia (BC), was retained by Altair Gold Incorporated (Altair), headquartered in Vancouver, BC, to prepare a technical report summarizing the Crepulja Property (Crepulja) located in Kosovo.

Mr. Grunenberg performed a site visit on November 16 and 17, 2015, conducted data verification, and prepared all sections of this technical report. Mr. Grunenberg is a qualified person as defined in National Instrument 43-101 (NI 43-101), and is independent of Altair.

This report is to comply with disclosure and reporting requirements set forth in NI 43-101, Standards of Disclosure for Mineral Projects, and in accordance with Form 43-101F1.

1.2 PROJECT BACKGROUND

Crepulja is located approximately 60 kilometres (km) northwest of Pristina and 17km west of the town of Mitrovica in northwestern Kosovo. In 2007, an Exploration License, which at that time covered an area of 59.1 square kilometres (km²), was awarded to Lydian International Limited (Lydian) over the Crepulja prospect.

Altair obtained the license covering Crepulja by purchasing 90% of the ownership shares of A.GJ.A SH.P.K. (AGJA), a limited corporation existing under Kosovo law. AGJA holds the 100% of the exploration license covering the Crepulja property. The purchase will follow the schedule outlined in section 4 of this report, to a total payment of $300,000. The option agreement was exercised on August 31, 2015.

1. First installment of 40% of purchase price, $120,000, will be paid four months after the option is exercised. 2. Second installment of 40% of purchase price, $120,000 will be paid ten months after the option is exercised. 3. Third installment of the remaining 20%, $60,000 will be paid fifteen months after the option is exercised and the agreement to purchase the shares is concluded.

The agreement shall be governed by and construed by in accordance with the laws of British Columbia, Canada.

Crepulja is a zinc-lead prospect that was originally investigated by the Yugoslav State Trepça Company in the 1950’s. The prospect is centred on an area of Paleozoic limestones unconformably overlain, or in structural contact with, Cretaceous sediments. The mineralization model for Crepulja envisages selective replacement of limestone units by zinc-lead rich hydrothermal fluids rising along a faulted unconformity.

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Altair has not completed any physical work on the property. This report is a summary of past activities by the previous owners, and of observations and verification efforts by PBG.

Historical soil sampling defined a north-south oriented 5 kilometre (km) long by 200-500 metre (m) wide zone with continuous zinc and patchy lead anomalism. Four adits and six trenches are known to have been excavated in or around 1974. Several of these encountered zones of gossanous oxide mineralization. Four diamond drill holes were also completed, but no other information is available for these holes. Observations from trenching are that the zinc-rich mineralized zones occur as veins, mineralized fractures and breccia patches in coarse, altered limestone.

Soil sampling carried out by Lydian in September 2007 confirmed the previously reported Yugoslav geochemical anomalies, with some exceptionally elevated values. Lydian also reopened the historic trenches and took a series of continuous chip samples. Analytical results show strong base metal grades over intervals within all the trenches.

A program of seven diamond drill holes was completed in 2008 on the Crepulja license. Several shallow mineralized intercepts were made, all of which were associated with gossanous iron oxide fracture zones within the host limestone, similar to those seen in the overlying trenches. The most significant assay intervals are highlighted in Table 1.

1.3 GEOLOGY AND MINERALIZATION

Crepulja lies within the western edge of the Vardar zone. Mineralization is hosted by Cretaceous limestone in faulted contact with Paleozoic metasediments.

Rock types include a Lower Paleozoic unit dominated by phyllites, quartz-muscovite/sericite shale and lesser quartz-feldspar shales. The Upper Paleozoic consists of phyllite, sandstone, marble and quartz conglomerate. The Paleozoic sediments form a regional anticline in the vicinity of Crepulja

Triassic sediments consisting of shale, chert and lesser sandstone and limestone unconformably overlie the Paleozoic strata. An Upper Cretaceous sequence consists of basal conglomerate-sandstone, limestone, marl, and sandstone. It was subsequently folded, forming a large syncline in the vicinity of Crepulja. There is one known occurrence of Miocene porphyritic intrusive in the Crepulja area.

The Cretaceous limestone unit and conglomerates associated with the overlying unconformity are believed to host the zinc-lead mineralization at Crepulja. The deposits are considered of the replacement type. Sulphide minerals include galena and sphalerite that replace the carbonate rocks. Morphology includes veins and veinlets, irregular masses, lenses, disseminations and karst infilling. At Crepulja, a significant oxidized zone has been uncovered through surface trenching.

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1.4 CONCLUSIONS AND RECOMMENDATIONS

PBG concludes the following in relation to the Crepulja project:

Soil sampling by Lydian has confirmed an exceptionally strong and extensive geochemical anomaly at Crepulja in a region containing many zinc-lead mines and deposits. Parts of the geochemical signature in soils may be the result of the erosion of waste piles from underground workings. The Crepulja zinc-lead target is still a relatively early-stage exploration project where the deposit type, morphology and controls on mineralization are poorly understood. At and near surface, the elevated zinc-lead values are associated with areas of iron-rich alteration with zinc oxide minerals occurring within zones of fracturing and brecciation in the host limestone. Drilling has yet to confirm the depth extension of the oxide-type mineralization. Narrow zones of sulfide mineralization are reported from historic underground drifting but these have not been confirmed by more recent drilling. Future exploration should be planned for obtaining stronger confirmation of the mineralization controls and orientations, through continued trenching and shallow drilling. Deeper drilling for extensions of the oxide mineralization, and possible sulphide mineralization at depth, should only be undertaken if shallow trenching and drilling is successful. Targeting possible zinc-lead sulfide mineralization at depth may consider using IP/resistivity geophysical surveying.

PBG recommends the following two-stage exploration program for Crepulja.

Phase 1 of the proposed work program would involve the following:

Re-establishing the historic trenches to reveal the mineralized zones. Expanding the trenching beyond the historically worked zones. Short diamond drill holes aimed to intercept the oxide mineralization beneath the trenched zones. Ground Induced Polarization survey conducted over the target areas.

Phase 2 would be dependent upon the success of Phase 1, including the following;

Diamond drilling for deeper sulphide mineralization.

The cost for Phase 1 trenching, drilling, and IP geophysical surveying is estimated at $198,800.

The cost for Phase 2 drilling is estimated at $272,000. Total Phase 1 and 2 cost is estimated at $470,800.

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2 INTRODUCTION AND TERMS OF REFERENCE

Perry Grunenberg, P. Geo, of PBG Geoscience in Kamloops, BC, was retained by Altair Gold Incorporated (Altair), headquartered in Vancouver, BC, to prepare a technical report summarizing the Crepulja Property. Mr. Grunenberg performed a site visit on November 16, 2015, reviewed the data provided, and prepared all sections of this technical report. Mr. Grunenberg is a qualified person as defined in NI 43-101, and is independent of Altair.

This report has been prepared for filing with the TSX Venture Exchange (Exchange). Altair has been a dormant company for an extended period. The Crepulja property will be its primary focus for the near term.

This report is to comply with disclosure and reporting requirements set forth in NI 43-101, Standards of Disclosure for Mineral Projects, and in accordance with Form 43-101F1.

The review of the Crepulja Property was based on results of samples obtained and observations made during the site visit, and from data, professional opinions, and unpublished material provided by the property vendor and Altair. Additional information was derived from public sources including public company websites, the Kosovo Independent Commission for Mines and Minerals website, and other Kosovo-based research websites.

There are two distinct sources of information relating to the Crepulja Property. One set of information, that contains most of the details of historic exploration, is from the former Yugoslavia government-run work conducted in the 1970s and 1980s. The second source of information is from summaries and technical reports from work conducted in 2007 and 2008 by Lydian International Inc. (Lydian), through its local operating business name Kosovo Resource Company (KRC).

The descriptions of geology, mineralization, and exploration methodology are based on direct field examination, and on information obtained from published and unpublished reports researched by the author, and those supplied by Altair. Alaudin Kodra, coauthor of the textbook “Geology of Kosovo” and a geologist that consulted to the Government of Kosovo and has some knowledge of the Crepulja property, provided background information, and details of the property geology and mineralization during interviews and during the property visit.

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3 RELIANCE ON OTHER EXPERTS

The author has reviewed and analyzed data provided by Altair, its consultants, and previous operators of the property, and has drawn his own conclusions, augmented by direct field examination.

While exercising all reasonable diligence in checking, confirming, and testing, the author has relied on historic documentation of data for the Crepulja property in formulating opinions and conclusions. In particular, a report titled “ NI 43-101 Technical Report on Amulsar Gold Project in Armenia, Draznje Zinc- Lead Project in Kosovo, and Crepulja Zinc-Lead Project in Kosovo”, dated 17 March 2009 by E. Slowey, was used as a primary reference for this Altair report.

For information pertaining to legalities and ownership of mineral tenure, the author has relied on information provided in the document “Option To Acquire Shares From A Shareholder” (undated) that summarizes the agreement between Mustafe Havollli and Altair for the purchase of A.GJ.A SH.P.K. Corporation; and the Kosovo Independent Commission for Mines and Minerals confirming the license area owned by A.GJ.A SH.P.K Corporation on a document dated December 11, 2015, showing exploration license 1508/KPMM/2015 location, size, and duration of tenure, and for providing on their website the regulations for keeping a license in good standing. The license size, option details and other information taken from the above references are utilized in descriptions included in Section 4 of this report.

4 PROPERTY DESCRIPTION AND LOCATION

North Kosovo is a region in the northern part of Kosovo, composed of four Serb-majority municipalities: North Mitrovica, Leposavić, Zvečan and Zubin Potok.

Prior to the 2013 Brussels Agreement, the North Kosovo region functioned independently from the institutions in Kosovo. The Brussels Agreement, signed between the governments of Kosovo and Serbia, created an Association of Serb municipalities. The association was formed in 2015. According to the agreement, its assembly will have no legislative authority and the judicial authorities will be integrated and operate within the Kosovo legal framework.

The Crepulja Property is located approximately seventeen kilometres due west of the city of Mitrovica in North Kosovo. The property is centered at Latitude 42°50’ north (N), Longitude 20°40' east (E). Locally, work is surveyed to the Kosovo grid system that places the property center at approximately 7472800 E, 4747800 N. The property consists of a single exploration license of 9.82 square kilometres (Figure 1).

Altair obtained the license covering Crepulja by purchasing 90% of the ownership shares of A.GJ.A SH.P.K. (AGJA), a limited corporation existing under Kosovo law. AGJA holds 100% of the exploration license covering the Crepulja property. The purchase will follow the schedule outlined below, to a total payment of $300,000. The option agreement was exercised on August 31, 2015.

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1. First installment of 40% of purchase price, $120,000, will be paid four months after the option is exercised. 2. Second installment of 40% of purchase price, $120,000 will be paid ten months after the option is exercised. 3. Third installment of the remaining 20%, $60,000 will be paid fifteen months after the option is exercised and the agreement to purchase the shares is concluded.

The agreement shall be governed by and construed by in accordance with the laws of British Columbia, Canada.

To the best of the author’s knowledge, there are no significant factors that would affect access or the right or ability to perform work on the property.

The Independent Commission for Mines and Minerals in Kosovo provide the requirements for holding and exploring upon an Exploration License. An Exploration License for minerals shall:

Be valid for two years and may be extended up to three times at two years per extension, accompanied by a 50% reduction in license area. There is a maximum area of 100 km² per individual license. Minimum expenditure is set at €100/ha (100 Euros per hectare) per year. At the first renewal (after two years), the work commitment minimum expenditure increases to €1,000/ha per year. At the second renewal (after four years), the work commitment minimum expenditure increases to €5,000/ha per year, and at the third and final renewal (after six years), the work commitment minimum expenditure increases to €10,000/ha per year. If the assessed expenditures are less than the work commitment minimum expenditure, then the licensee must pay the difference to the ICMM as an exploration fee.

The exploration license has an expiration date of December 2, 2017, which can be extended as per the above listed requirements.

Altair and its contractors are advised to review the Kosovo Mine and Mineral Legislation to assure that the rules are appropriately followed for exploring upon and retaining the Crepulja exploration license. A brief summary of requirements includes that the company or its representatives must obtain permission for access to the area prior to conducting exploration. The company is required to keep records of all exploration work, keep all core samples stored in Kosovo, submit plans for exploration by September 30 for work to be conducted the following year, and submit an annual report summarizing the work program – within 2 months of the end of each calendar year.

It is understood by the author that the Altair representative, located in Albania, is undertaking the necessary requirements to allow exploration on the Kosovo property within the next few months.

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KOSOVO

Figure 1: Location Map

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The license boundary has not been surveyed.

Historic underground drifting has left behind waste dumps and adit openings that are in varying degrees of reclamation. There are a number of excavated trenches that have naturally slumped to some degree, but remain open in other areas. It is recommended that these be fully reclaimed at some future date.

Further consultation with local and regional authorities should take place in order to determine the level of environmental liabilities on the property.

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

Kosovo is a landlocked country situated in Southeastern Europe, in the center of the Balkan Peninsula. With an area of 10,908 square kilometres, it is one of the smallest countries in Europe by area, but one of the most densely populated, with a population of 1,859,203 inhabitants in 2014.

Kosovo has a great variety of topographical features. It is surrounded by mountains: the Sharr Mountains located in the south and southeast, border Macedonia, and the Kopaonik Mountains rise in the north. The southwest borders with Montenegro and Albania are also mountainous, and are home to the country's highest peak, Gjeravica, 2,656 m high. The central region is mainly hilly, but two large plains spread over Kosovo's west and east, the Metohija plain and Kosovo plain respectively.

Kosovo is traversed by numerous rivers. The main rivers in the country are the White Drin, running towards the Adriatic Sea, the South Morava in the Goljak area, and Ibar in the north. Sitnica, a tributary of Ibar, is the longest river lying completely within Kosovo. There are several small natural lakes but the country's most important lakes are artificial. The biggest lakes are Gazivoda, Radonjić, Batlava and Badovac. Kosovo also does have a large number of karst springs, thermal and mineral water springs.

Kosovo is affected by middle-maritime and middle-continental precipitation regimes. On the west, the middle-maritime form is more prevalent. The eastern part is affected by the middle-continental type of precipitation, which is known for a lack of rainfall during the year. The biggest amount of rainfall is in the west part of Prokletije with over 1,750 mm annually, while the lowest amount of rainfall can be found in the east part – Kosovska Kamenica - with less than 600 mm. Snowfall is a common occurrence during the cold months of the year. In the low parts of Kosovo there is an average 26 days with snowfall, while the higher elevations will have over 100 days. The number of days with snow and the thickness depend upon the relief.

The Crepulja property is located within the Kopauniku topographic region, which is characterized by glacially abraded surfaces with fluvial and glacial deposition, with gentle hilly slopes and elevations ranging between 800 and 1200 m above sea level.

The average temperatures range from 0.7°C to 21.5°C, with an annual average of 10.6°C.

The property is covered in relatively thin growth of alder and poplar trees, with lesser undergrowth of brush. The property is easily traversed on foot. Equipment for road construction, trenching and drilling can be readily mobilized over the existing slopes.

Access to the property is by all-season dirt roads. Due to the elevation, snow accumulations can hinder admittance to the property for short periods during winter.

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The population of the area is small, confined to scattered farming communities. Agricultural activity is limited to patchy pastureland and small-scale timber felling; there are few sources of employment outside the main towns. Grid electricity is available to most of the scattered farmsteads.

Mitrovica, 17 km from the property, is a city of approximately 70,000 people. The Trepça Mines are located in the Mitrovica region, though they are not operating. With the closure of the Trepça complex, the influx of refugees and lack of investment, high unemployment has been prevalent among all communities in the Mitrovica municipality.

Altair’s land manager is currently working to obtain the necessary agreements to allow the company to undertake the recommended exploration work on its Crepulja project.

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6 HISTORY

Crepulja is a zinc-lead prospect that was originally investigated by Trepça in the 1950’s. The enterprise known as Trepça was a conglomerate of 40 mines and factories, located mostly in Kosovo but also in other locations in Serbia and Montenegro. The heart of its operations, and the source of most of its raw material, is the vast mining complex to the east of Mitrovica in the north of Kosovo, famous since Roman times. This trend of mineralized deposits is referred to as the Trepça belt.

With the closure of several mines and factories in the late 1980s and 1990s, the Trepça mining complex in Kosovo now comprises only seven lead and zinc mines, three concentrators, one smelter, and one zinc plant.

It is not known when the occurrence was first discovered, but the presence of small prospecting pits scattered throughout the area suggest that active work was carried out in the Middle Ages. Previous work by Trepça included geochemical (soil) sampling, ground geophysics (IP and SEP), drilling, and a series of exploratory adits and trenches.

Soil sampling at the Crepulja prospect defined a north-south oriented 5km by 200-500m wide zone with continuous zinc and patchy lead anomalism, with values reaching over 5,000ppm for both elements. This zone is reported to be open to the north and south. The current exploration license described in this report differs from the license area explored historically. Figures 8 and 9 indicate the areas of historic work highlighting portions that fall out of the current license boundary.

A Self Electrical Potential (SEP) survey was conducted over the entire length of the anomaly, while Induced Polarization (IP) was conducted over the southern half of the anomaly and over a small northern extension. Both programs were carried out over a 1km wide grid with a line spacing of ~150m and both methods picked up a large anomaly slightly offset from the heart of the zinc-lead soil anomalies. SEP and IP data suggest the anomaly is open to the west where a small intrusive plug has been mapped. IP also highlighted an area to the north of the geochemical anomaly.

Four adits totaling 1,078m and six trenches totaling 153m are known to have been excavated during historic exploration. Several of these located zones of gossanous oxide mineralization with narrow sulfide zones. Assay data is limited, but several significant channel sample intercepts were reported. The adit portals and waste piles exist within the license covered by this report.

Also within the license, four holes were drilled for a total of 764m, as indicated on historic maps. No other information is available for these holes.

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7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 PROPERTY GEOLOGY

Crepulja lies within the Drinsko-Ivanjički sub-zone on the western edge of the Vardar zone. Mineralization is hosted by Cretaceous limestone in faulted contact with Paleozoic metasediments. Locally the Paleozoic sequence is unconformably overlain by Triassic to Jurassic sediments. Occasional Neogene igneous rocks intrude and overlie these units.

The following geological descriptions are taken from the 1974 Trepça annual technical report by Stefanovic et al:

Paleozoic: The Paleozoic sequence is divided into upper and lower units. The Lower Paleozoic is dominated by phyllites, quartz-muscovite/sericite shales and lesser quartz-feldspar shales. The Upper Paleozoic consists of phyllite, sandstone, marble and quartz conglomerate. The quartz conglomerate has a distinctive topographic expression, forming most of the high peaks and a number of large crags in the area. The Paleozoic sediments are variably foliated and in the vicinity of Crepulja form a large anticline

Triassic/Jurassic: Triassic sediments consisting of shale, chert and lesser sandstone and limestone unconformably overlie the Paleozoic strata. These are in turn unconformably overlain by cherts and intruded by diabase and minor quartz porphyry, all of which are Jurassic in age.

Cretaceous: During the Upper Cretaceous a >600m thick marine sedimentary sequence was deposited. The sequence consists of basal conglomerate-sandstone, limestone, marl, and sandstone. It was subsequently folded, forming a large syncline in the vicinity of Crepulja. It is characterized by massive poorly-bedded rudist wackestone that grades to a well-bedded marl-limestone.

Tertiary: There is one known occurrence of a Miocene porphyritic intrusive in the Crepulja area. It contains phenocrysts of feldspar, quartz, biotite and relict amphibole in a fine-grained microlitic groundmass. This lithology is silica-calcite-kaolinite altered. Bedded tuff is also preserved near the same locality. There are minor occurrences of unconsolidated Pliocene clay, coal, and pebbles.

The Cretaceous limestone unit and conglomerates associated with the overlying unconformity are believed to host the zinc-lead mineralization at Crepulja. Examination of the old trenches shows signs of dolomitic alteration. North-south faulting along the margin of the Cretaceous unit is believed to have played a role in controlling mineral emplacement.

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Area detailed in Figure 3

Figure 2: Kosovo Geologic Map

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Crepulja (approximate location)

Figure 3: Mitrovica and Crepulja Property area geology map (from Geology of Kosovo)

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Figure 4: Legend to go with figures 3 and 4

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Not in current license

Figure 5: Composite Plan of Crepulja showing geology and zinc soil geochemistry (Slowey, 2009)

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7.2 MINERALIZATION

The surface exposure of the mineralized zone is dominated by gossanous oxide material. However, historic trench mapping reports zones of massive and breccia-type base metal sulfides. The exploratory adits reportedly intersected a few relatively minor sulfide lenses (1- 2 m wide with 25 m strike lengths), generally oriented north-south and east-west. Sulfide mineralogy in these zones includes pyrite, galena, sphalerite, arsenopyrite, stibnite, and marcasite. It is clear that the highest-grade areas are closely associated with faults/fractures filled with clay.

Observations from trenching are that the zinc rich mineralized zones occur as veins, mineralized fractures and breccias patches in coarse, altered limestone (Photo 5.9). The carbonate replacement occurs progressively near the mineralized fractures and often coincides with a clay rich zone at the immediate margin of the mineralized feature. The carbonate replacement is transgressive to bedding, occurring as incipient, to partial to pervasive. On a micro-scale the mineralization occurs throughout the carbonate sequence exposed in the trenches. Its density and intensity has a direct relationship with overall zinc and lead enrichment in the host limestone. Locally the mineralization shows clear enrichment of hematite and goethite.

The mineralization model for Crepulja suggests selective replacement of limestone and calcareous basal conglomerate units by zinc- and lead-rich hydrothermal fluids rising along a faulted unconformity. The fault may represent a partially inverted basin margin structure (Figure 6).

Mineralization probably precipitated from fluids sourced from Neogene intrusives. Carbonate replacement sulfide deposits can be weathered to form wall rock-replacement non-sulfide zinc-lead deposits.

Figure 6: Schematic model for formation of Crepulja mineralization (from Slowey, 2009)

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8 DEPOSIT TYPES

The ore deposits are considered of the replacement type. Sulphide minerals include galena and sphalerite that replace the carbonate rocks resulting in different mineralized body shapes. Morphology includes veins and veinlets, irregular masses, lenses, disseminations and karst infillings. The principle mineralogy includes galena, sphalerite, pyrite, chalcopyrite, arsenopyrite, phyrrotite, Pb-Sb sulphosalts, and rare gold. Gang minerals are quartz, calcite, dolomite, siderite, rhodochrosite, oligonite, barite, and others.

1 - Paleozoic and Triassic crystalline rocks 2 – Upper Paleozoic marbles 3 – Amphibolites and schists 4 – Serpentine and 4a Listvenite 5 – Upper Cretaceous Limestone 6 – Upper Cretaceous carbonate flysch 7 – Miocene conglomerate, sandstone, shale, marlstones 8 – Andesite lavas and pyroclastics 9 – Subvolcanic and volcanic quartz latite 10 – Pb-Zn ore bodies

XII = Crepulja deposit, replacements in Upper Cretaceous limestone

Figure 7: Simplified schematic showing relationships relations between structure and type of Pb-Zn deposits of Kosovo (from Elezaj and Kodra, 2012)

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The most important zinc and lead mineralization is found in the Trepça belt. This belt extends over a distance of more than 80 km in north and northeastern Kosovo, and contains most of the historic lead- zinc mines. The main part of the belt trends to the east of Metrovica and the Crepulja property, but the host geology and deposit type at Crepulja is similar to that found at Trepça.

Mineralization is related to Oligocene to Miocene high potassium andesite-trachyte sub-volcanic and volcanic magmatism.

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9 EXPLORATION

Altair has not performed any exploration work on the Crepulja property.

The historic exploration work conducted on the property prior to 2007 is summarized in Chapter 6, History. The more recent work conducted between 2007 and 2009 is discussed in Chapter 9, Exploration. Core drilling is discussed in Chapter 10, Drilling.

Exploration work on the property is summarized using metric units. Much of the original work was located using local grid, with no reference to global positioning. PBG utilized distinctive topographic features in order to locate exploration samples, drillhole locations, or zones of interest as sketched on maps and recorded in reports provided by Altair, and on various websites.

The coordinate system used in maps produced for this report is Universal Transverse Mercator (UTM) World Geographic System of 1984 (WGS84).

9.1 SOIL GEOCHEMISTRY – 2007 (FROM SLOWEY, 2009)

In 2007, Lydian/KRC collected 63 soil samples from specific areas (Figures 8 and 9) in order to confirm the historic Yugoslav geochemical anomalies. Samples were collected at 50 m intervals along east-west lines spaced at 100 m.

According to Slowey (2009), the analytical results confirmed the historic zinc and lead anomalies. In general, the 2007 analytical results reported higher than the historical values, especially for lead. The highest results were associated with samples containing a high clay fraction; they suggest the presence of smithsonite or other zinc oxides/carbonates. PBG notes that the some or all of the more significant soil sample results are located near to the historic underground workings, and may be in part the result of erosion of waste piles from those workings.

9.2 ROCK GEOCHEMISTRY – 2007 (FROM SLOWEY, 2009)

In 2007, Lydian/KRC collected 25 grab samples from rocks across the southern part of the soil anomaly; however, the source of the elevated zinc and lead values in soils was not identified for that area. PGB notes that the southern portion of the soil sampling results are not currently within the exploration license held by Altair, as shown on Figures 8 and 9. Rock samples taken in the southern part of the soil geochemical sampling area are not within the current license.

9.3 TRENCH SAMPLING – 2007 AND 2008

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In 2007, Lydian/KRC cleared and re-sampled six of the historic Yugoslav trenches (Figure 10) near the exploration adits. These confirmed the zinc and lead grades reported previously, within oxidized, gossanous material. Silver results were all less than 1 g/T.

The color contour intervals used in the following figures are clarified on Figure 10.

Figure 8: Zinc-in-soil, historic soil geochemistry results (left) compared to Lydian's check sample results (right) (Snowey, 2009)

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Figure 9: Lead-in-soil, historic soil geochemistry results (left) compared to Lydian's check sample results (right) (Slowey, 2009)

Figure 10: Clarification of contour intervals used in soil sample result shown in Figures 8 and 9

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Area not in current license

Figure 11: Trench location plan with the zinc results from Lydian’s continuous rock chip sampling (Slowey, 2009)

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Figure 12: Detailed plan of zinc results for Lydian’s continuous rock chip sampling (Slowey, 2009)

A total of 151 samples were collected along the entire length of the six trenches as one metre continuous chip samples. A further 212 samples were later collected in continuation from Trench 2 and Trench 7 (Figure 11).

Analytical results returned from the continuous trench sampling show strong base metal grades over intervals within all the trenches. The best result was from Trench 2, which assayed 32 m at 25.89% zinc, and 3.86% lead along its entire length (Table 1).

Table 1: Selected composite values for trench sample results

Trench Name Trench Length (m) Mineralized Interval (m)* Zn (%) Pb % 1 27 25 14.74 1.82 2 32 32 25.89 3.96 2 Ext 125 4 25.06 1.56 10 21.98 2

3 44 23 12.52 1.07 2 3.27 0.15

4 1.82 0.25

4 16.79 0.86

4 12 7 28.74 2.91 5 14 7 9.37 0.5 1 29.2 1.19

6 22 15 21.53 1.53

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Trench Name Trench Length (m) Mineralized Interval (m)* Zn (%) Pb % 7 87 5 5.8 0.18 * Using 1% zinc cut-off and maximum internal dilution of 2 m

The Lydian results are overall supportive of the original Yugoslav data, although higher in places. Mapping in the trenches did not clearly identify an overall structural or directional control on mineralization.

PBG understands that it is difficult to impossible to replicate values obtained from trench sampling from one program to the next. However, the values obtained by Lydian/KRC and those returned from the four check samples taken during the PBG site visit support the potential for significantly elevated grades of lead and zinc at or near surface on this property.

9.4 GEOPHYSICS

9.4.1 ULTRAGPR (GROUND PENETRATING RADAR) - 2007

In February 2007 a geophysical orientation survey was completed over the Crepulja license using a ground penetrating radar technology, called UltraGPR. The aim was to test the depth extension of zinc oxide mineralization cut in surface trenches. Penetration depth of the geophysical method was interpreted to be around 50-60 m.

Three profiles were completed with a total length over 1 km.

A profile was completed along the trenches and was designed to cut the high-grade mineralized zone at what was believed to be perpendicular to strike. The results appeared to show anomalous vertical and near vertical features along the section (Figure 8). The other two profiles failed to penetrate the clay- rich overburden, and produced noisy, ambiguous results.

The geophysics delineated what appear to be north-south structures coinciding with the broad anomaly seen in the soil and trench sample results, and with observations made of the trenches. The method however does have a depth limitation of 50-60 m; therefore, it is of limited use in delineating larger mineralized bodies at depth.

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Figure 13: UltraGPR profile showing apparent vertical features to a depth of 50-60 m

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10 DRILLING

Altair has not performed any drilling on the Crepulja property.

In 2008, Lydian completed seven core drillholes for a total of 375.2 m. The holes, which were drilled along an east-west profile between Trench 1 and Trench 2, were designed to intersect the mineralization seen in the trenches, and the structures interpreted from the UltraGPR survey.

The mineralized intercept true width and orientation were not interpreted or calculated from this drill program, therefore true widths of mineralization reported are unknown, and likely more narrow than the intercept lengths.

Table 2: Summary of 2008 drilling

Hole ID Easting* Northing* Azimuth Dip Max Depth (m) Start Date End Date DDC-001 7472958.9 4746752.1 84.7 -44.2 125.9 10-Jul-08 15-Jul-08 DDC-002 7472858.4 4746755.6 83.0 -44.5 92.0 04-Jul-08 07-Jul-08 DDC-003 7472986.2 4746750.7 288.0 -45.0 60.0 08-Jul-08 10-Jul-08 DDC-004 7473039.8 4746757.0 270.0 -45.0 5.0 16-Jul-08 16-Jul-08 DDC-005 7472852.6 4746742.2 270.0 -44.0 34.6 18-Jul-08 18-Jul-08 DDC-006 7472860.8 4746752.5 115.0 -67.0 27.7 19-Jul-08 19-Jul-08 DDC-007 7472983.6 4746755.7 3.5 -45.0 30.0 21-Jul-08 21-Jul-08 *Datum = KOSREF 80

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Figure 14: Drillhole location map 2008

Drillhole DDC-001 penetrated massive to locally brecciated limestone that was cut by a 0.5 m (23.5 m to 24 m drilled and sampled length, true width unknown) gossanous lens, which returned 13.60% zinc and 1.02% lead.

Drillhole DDC-002 intersected a fault structure with abundant clay and smithsonite between 6.6 m and 10.0 m that returned a drilled length of 3.4 m of significant values, including sample KD04036 that returned 1.4 m of 33.1% zinc and 7.42% lead from 6.6 m to 8 m (true mineralized width unknown). The core recovery through the mineralized zones averaged 50%.

Drillhole DDC-003 cut blocky limestone with patchy clay zones from 3.6 m to 12.0 m, which returned sporadic elevated lead and zinc values, including sample KD04007 that returned 1.1 m of 14.85% zinc and 0.712% lead from 7 m to 8.1 m (true width unknown). The mineralized zone ended at 12.0 m in a clay-filled fault or fracture zone. The core recovery through the mineralized zone averaged 64%.

Drillhole DDC-004 was terminated after drilling 5.0 m of clean limestone.

Drillhole DDC-005 intersected 34.6 m of clean limestones with no visible mineralization.

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Drillhole DDC-006 cut 3.2 m (true width unknown) of gossanous material from surface that returned elevated grades of zinc and lead, including sample KD04118 that returned 1.2 m of 28.9% zinc and 14.75% lead from 2 m to 3.2 m depth in hole (true width of mineralized intercept unknown). Core recovery was 34%.

Drillhole DDC-007 cut segments of oxidized disseminated iron-stained limestone with patchy smithsonite, from surface to roughly 11 m downhole depth. Samples taken from these zones returned elevated zinc and lead values, including sample KD04131 that returned 1 m of 16.75% zinc and 0.868% lead from 4.0 to 5.0 m (true width unknown), and sample KD04137 that returned 1 m of 2.42 % zinc and 0.365% lead from 10.0 to 11.0 m (true width unknown). The core recovery through this section was 42%.

Figure 15: Drillhole cross section

10.1 PROTOCOLS

PBG was unable to observe or determine the methodologies used for the 2008 drilling.

10.1.1 DOWNHOLE SURVEY METHODOLOGY

Not determined.

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10.1.2 COLLAR SURVEY METHODOLOGY

Not determined.

10.1.3 DRILL CORE PROTOCOLS

Not determined.

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11 SAMPLE PREPARATION, ANALYSES AND SECURITY

11.1 SAMPLE COLLECTION

PBG was unable to observe or discuss sample collection methods. However, the procedures followed by Lydian at all of its Balkan properties are described below. Altair has no association or relationship with the laboratories utilized by Lydian as reported below.

11.1.1 SOIL SAMPLES

Soil sampling was conducted on using a grid pattern based on the trend and style of mineralization. At Crepulja, soil samples were collected at 50 m intervals on lines spaced 100 m apart.

Samples were collected from the B-horizon or transitional zone between weathered bedrock and near surface humus. In Kosovo, soils are usually residual, with little transportation except for soil creep on steeper slopes.

All samples were bagged and labeled in the field. A 500 g sieved (mesh size unknown) sub-sample was dispatched to the laboratory for analysis.

11.1.2 TRENCH SAMPLES

Trenches were typically continuously sampled over one-meter intervals in the areas of interest. At Crepulja, the majority of trenches were excavated to re-open and in places extend the historic trenches where mineralization had been recorded.

Where possible, a diamond saw was used to cut a sample slot measuring 100 cm long by 10 cm deep by 20 cm wide by diamond saw. If this method was not practical, a hammer was used to chip a continuous sample of rock chips. A typical sample had a mass of 2-3 kg.

The samples were bagged, labeled, and sealed at site. Samples were dispatched to the laboratory for analysis.

11.1.3 CORE SAMPLES

Drill core was logged and sampled at site. Samples were typical one metre long through mineralized areas, and 2 m to 6 m long through visually barren rock.

Competent core was cut by diamond saw, with one half of the sample, typically weighing between 2- 3kg, being bagged, labeled and sealed for dispatch to the ALS Chemex assay laboratory in Romania and the other half being returned to the core tray.

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Many of the massive and semi-massive sulfide drill intersections core returned poor core recovery, with core often breaking down to sulfide fragments and clusters. In this case sampling was carried out by hand, with every effort made to ensure that each section was sampled in an unbiased manner. Again, half the recovered core was left in the core tray for future examination

The core trays containing the remaining drill core were transferred to warehouse near the property for long-term storage.

11.2 PREPARATION AND ANALYSES

All Lydian samples from the Kosovo projects were bagged, labeled and sealed on site by Lydian staff and transported to the ALS analytical laboratory in Rosia Montana, Romania for sample preparation and gold assay. A sub-sample was then sent by the laboratory to the company sister laboratory in Perth, Australia for ICP multi-element analysis.

On arrival in Romania ALS gives the samples a batch code and weighs all samples. Each sample is then logged in and ascribed an individual bar code. Rock samples are subject to fine crushing to 70% of material passing <75µm.

A 50 g aliquot is analyzed at the Romanian laboratory for gold by fire assay, with an AA finish. The remainder of the split sample was sent by ALS to its sister laboratory in Perth (pending registration to ISO 9001:2000) or Vancouver (ISO17025) where the sample is subjected to a four acid digestion, followed by analysis for 33 elements by ICP-AES (ALS ME-ICP61 package). Samples containing high-grade zinc, lead and silver are then individually re-assayed to obtain accurate results.

All ALS laboratories operate in compliance with ISO17025. ALS Chemex carries out regular checks by duplicating analyses for several samples, and by inserting its own blanks and standards as part of its own Quality Management System. Water samples for environmental monitoring are dispatched to the ALS analytical facility in the Czech Republic. The ALS Prague location is a full service environmental laboratory offering a variety of inorganic, organic, and microbiological testing services for a variety of sample types.

11.2.1 QUALITY ASSURANCE PROTOCOLS

Lydian introduced a standard (pulp) sample in every 20 samples – both gold (STND - G901 – 13) and base metal standards (STND - GBM 306-12) were used – and coarse blank samples were introduced prior to sending the sample batch to the laboratory. In some cases a blank was introduced specifically after an expected high grade sample in order to identify possible contamination in the laboratory. This check sample system was not in place for the first phase of the trenching program.

11.3 SECURITY

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PBG was unable to determine the sample security procedures employed.

11.4 CONCLUSIONS

PBG has been unable to directly verify the procedures used at Crepulja for either the historic or more recent work programs. Based on experiences with Soviet-era data, PBG believes that the procedures for the historic work were well -executed and appropriate for the era. Based on the written descriptions for the 2007 and 2008 procedures, PBG believes that, with some exceptions, best practices were employed for sample collection, security, and analysis.

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12 DATA VERIFICATION

PBG undertook various aspects of data verification during the November 2015 site visit. Results of verification sampling are presented in section 12.3 below.

Verification activities conducted during the site visit included:

Verification of trench locations Collection of samples of rock for spot check assays of previously reported results Interviews with local academic geologists with knowledge of Kosovo geology and of historic exploration programs undertaken on the property

12.1 TRENCH LOCATIONS

PBG was able to locate and spot sample some of the historic trenches. The trenches were slumped overgrown; however, the mineralization was evident where expected. Samples were taken from Trench 1 and Trench 2 where the KRC/Lydian trenching and sampling had returned significant zinc values.

12.2 DRILLHOLE COLLAR LOCATIONS

PBG observed that collars for the drillholes were marked with a plastic pipe, which was sometimes cemented into blocks, at the collar marked each of the 2008 drillhole locations; however, the drillholes were not identified with legible tags.

12.3 DRILL CORE

The core from the 2008 drilling was inaccessible; therefore, PBG was unable to verify the logging, recovery, or sampling.

12.4 DRILLHOLE AND TRENCH DATABASE

PBG has requested the drillhole and trench database, drillhole logs, and any other information supporting the historic and more recent work completed at Crepulja. However, at the time of this report, the information requested is still outstanding, other than that available in summary reports from the various exploration campaigns.

12.5 ASSAY RESULTS AND QUALITY CONTROL

PBG has requested the sample information and assay certificates or datafiles for the 2007 and 2008 programs; however, at the time of this report, the information requested is still outstanding.

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It appears that Lydian applied a control sample program suitable to modern exploration programs; however, it appears that the results of the quality control samples were never evaluated. The analytical laboratory employs a stringent quality control program, so PBG assumes that the results are of a suitable quality.

12.6 SPOT CHECK ASSAYS

The trenches were partially slumped, with little to no bedrock exposure. PBG collected samples from the banks of the trenches using a hand tool. Two samples each were taken from KRC/Lydian trenches 1 and 2, which have the same names and locations as the 1974 trenches (Figure 15).

Four grab samples that were collected from the previously excavated trenches were submitted for assay at ALS Minerals (ALS).

Sample locations and descriptions are shown in Table 3 and on Figure 15. Samples were obtained by the author to verify the existence of high grade zinc in rock as reported by previous property workers. All four samples returned exceedingly high zinc values, over the upper limit for the ALS assay analysis of 30%. Lead values were also elevated, ranging from 1.28% to 3.16%. The author also noted high manganese, iron, and arsenic from the 51 element analysis.

The author was not able to directly confirm the widths and grades of elevated zinc in bedrock that were reported by previous workers due to slumping of the trenches. Results of sampling by the author does however confirm that high-grade zinc, as zinc oxide and or zinc carbonate, does exist on the property.

12.7 CONCLUSIONS

PBG was unable to verify much of the available data due to a lack of information availability, as well as being unable to view and sample drill core; and therefore is unable to offer specific conclusions. However, there is enough physical and anecdotal information to suggest that the mineralization is as represented.

12.8 RECOMMENDATIONS

PBG recommends that Altair obtain all available historic and more recent geological information for the Crepulja property. This includes the paper and digital records (maps, reports, assay certificates, quality control information, drill logs, trench maps, geophysics reports and raw data) for soil surveys, lithogeochemical survey, trenching, geophysics, and drilling.

Once the information has been gathered, then it should be compiled into a useful and portable digital package that will enable informed future exploration and development.

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From 1974 summary of work Kanali = Trench Galeria = underground workings

Figure 16: PBG check samples from trenches 1 and 2.

Table 3: PBG check sample description and results for Zn, Pb, Fe, Mn, and As.

SampID X Y Zn Pb Fe Mn As Description Tr1PG1 7472996 4746774 30 1.68 11 15850 927 grab, oxidized, weak vuggy, ZnOx with silvery ga(?) specks

Tr1PG2 7472987 4746773 30 3.16 9.19 30100 195 clayey carbonate, orange brown oxdized ZnOx with ga, dug out of bank top Tr2PG1 7472993 4746745 30 1.28 10.75 13550 432 70 m long trench, sample from E end, clayey oxide with nodules remnant ZnCO3 or ZnOx, dug into bank through clays Tr2PG2 7472969 4746739 30 1.695 10.9 14800 399 W end of Tr2, more same oxidized carbonate with Zn, reddish orange, weak bedrock exposures

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13 MINERAL PROCESSING AND METALLURGICAL TESTING

Mineral processing or metallurgical test work has not been undertaken at the Crepulja property.

14 MINERAL RESOURCE ESTIMATE

Mineral resources have not been estimated for the Crepulja property.

15 THROUGH 22 ARE NOT APPLICABLE TO THIS TECHNICAL REPORT

Items 15 through 22 are not applicable to this technical report.

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23 ADJACENT PROPERTIES

There are no immediately adjacent properties known to the author that directly affect the interpretation and evaluation of the mineralization or anomalies at Crepulja.

The most prolific mining area is referred to as the Trepça Belt that extends for some 80 kilometres in northern and northeastern Kosovo. The Trepça Belt has been well documented in various academic reports and reference texts, however there has been little to no reported modern exploration or development along the belt. As such, PBG has no NI43-101 compliant documentation that can be referred to in this report in regards to historic or remaining resources of zinc and lead within the Trepça belt.

The Trepça Belt belt of historically mined deposits is shown in academic text to pass within approximately 20 kilometres to the east of Crepulja. It is considered to be within the same geologic belt. These historically mined zinc-lead-silver mineralized bodies are interpreted as skarn, replacement and vein deposits. The mineralization is related to Oligocene-Miocene high potassium sub volcanic and volcanic magmatism.

The series of base metal deposits follows a northwest-southeast linear that stretches the length of Kosovo and into Serbia and Macedonia, including a number of active and recently active mines. PBG notes that the existence of these historic mines does not necessarily indicate mineralization at the Crepulja property.

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24 OTHER RELEVANT DATA AND INFORMATION

Crepulja is currently an early stage exploration project. The environmental impact of exploration undertaken by Lydian is minimal. Earlier work conducted in the 1960’s and 1970’s included the development of underground workings. Most of these have had their access portals collapse, but some have existing access boarded for semi-permanent closure. It is unknown to the author if these are worthy of exploring for potential rehabilitation.

Several trenches of varying degree of reclamation were noted on the property, including those that were sampled at the time of the site visit. As well, there are waste rock piles remaining at or near the underground access portals. All of these should be evaluated for permanent reclamation. Mineralized rock should be evaluated for potential leaching of metals, and trenches and piles should be backfilled and/or bulldozed to match the original contours of the surrounding slopes.

It is uncertain how deep the oxidized mineralization containing the extremely high zinc values will extend to depth. Drilling to date has not been successful at intercepting grades and widths of mineralization comparable to that seen at or near surface. Anecdotal information contained in historic reports suggests that sulphide mineralization had been encountered in underground drifts, roughly 30 to 40 m below surface, indicating that may be the extent of the higher grade oxidized material. Below the oxidized mineralization, with progression to sulphide mineralization, it is expected that a drop in grade may occur, with an increase in relative lead concentrations, which are more typical of these kinds of deposits. The Trepça mines are documented (Kodra et al) to typically contain 10% combined lead- zinc, with 75 grams per tonne silver. The existence of the historic Trepca mine belt does not necessarily support the potential for similar mineralization on the Crepulja property.

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25 INTERPRETATION AND CONCLUSIONS

PBG has reached the following conclusions in relation to the Crepulja project:

Historic soil sampling and Lydian sampling has outlined an exceptionally strong and extensive geochemical anomaly at Crepulja in a region containing many zinc-lead mines and deposits. The Crepulja zinc-lead target is still a relatively early-stage exploration project and, as yet, the deposit type, morphology and controls on mineralization are not fully understood. At and near surface, the highly anomalous zinc-lead values are reported as being associated with areas of gossanous, iron-rich clayey alteration occurring within zones of fracturing and brecciation in the host limestones. Drilling completed to date has encountered limited depth extensions of the oxide-type mineralization. Narrow zones of sulfide mineralization are reported from historic underground exploration, but these were not encountered by the shallow drilling completed by Lydian. Alaudin Kodra describes a possible fold to the mineralization-hosting structure that must be considered when planning future drill programs. It is understood that further trenching should be undertaken in order to allow geologic mapping for host rock type, mineralization morphology, and structure - prior to undertaking exploratory drilling. Future exploration could include targeting zinc-lead sulfide sources at depth, perhaps using IP/resistivity geophysical surveying. The condition of the underground workings is currently unknown. It may be prudent to investigate these workings for potential access to the mineralization intersected beneath the trenches. There is evidence that more data is available from both the historic and more recent property exploration. In addition, it is possible that the Lydian drill core is currently stored at a facility in Kosovo for inspection and possible sampling by Altair.

PBG recognizes that historic work on the Crepulja property was not successful at identifying lead and zinc values in bedrock below surface trenching, either through drilling or underground drifting. There is some risk that the reported elevated mineral values do not extend to depth, or that the mineralization follows a more complex structure than that explored by previous operators. These issues should be well discussed, and if possible solved, prior to further exploration of the historic trenched and drilled areas of the property. If there is limited depth potential of the elevated lead and zinc, then there is limited tonnage that could be exploited from this area.

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26 RECOMMENDATIONS

The following generalized work programs, with corresponding cost estimation, are proposed by PBG for the Crepulja project. The proposed work is presented in two phases, with phase one involving work in close proximity to the existing trench and drill historic work, and phase two designed to test for deeper targets. Each stage of proposed work is dependent upon success of the preceding stage.

Continued attempts to gather as much information as possible from the previous work programs is recommended. Evidence suggests that there may be files containing historic data, and drill core stored from the Lydian work program, at facilities located in Kosovo.

Costing estimation is based upon utilization of Canadian contractors and management for the recommended work programs. It is understood that utilization of local contractors and support may provide reduction in cost; however, it is recommended that work programs be monitored by a Canadian qualified professional to assure that Canadian minimum standards are met for this type of exploration.

Phase 1 of the proposed work program would involve the following:

Re-establishing the historic trenches to reveal the mineralized zones. Deeper trenching than what had previously been undertaken may be necessary to obtain a better knowledge of the geologic setting. Three or four of the historic trenches should be re-opened. Expanding the trenching beyond the historically worked zones, in particular to the north of Trench 1 where the mineralization appears to be open, and where no previous trenches were excavated. Four to five new trenches should be considered. Short diamond drill holes aimed to intercept the oxide mineralization beneath the trenched zones. A series of eight to ten drill holes of approximately 50 metres each, with some fanned underneath the strongest mineralized zones revealed by trenching, may assist in obtaining the orientation of the mineralized bodies. Ground geophysics (specifically Induced Polarization) conducted over the target areas to test for sulphide mineralization at depth. Proposed are 8 to 10 one kilometre long east to west lines centered upon the area around Trench 1.

Phase 2 would be dependent upon the success of Phase 1 for obtaining solid evidence in predicting the existence and orientation of potential mineralized bodies at depth. It is predicted that the mineralization will transition from carbonate and oxide zinc minerals to more typical sulphide mineralization. The proposed Phase 2 program would involve the following:

Diamond drilling for deeper sulphide mineralization. A series of 4 to 6 drill holes each of approximately 150 to 200m depth designed to intercept the mineralization below the historic underground drifts is proposed. This may initially require drilling into the target area from both the west and the east in order to discover mineralization, and interpret orientation of the host

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structure. At this time it is interpreted that the structure has a north to south strike, but the dip may vary with depth.

The cost for Phase 1 trenching, drilling, and IP geophysical surveying is estimated at $198,800 as follows (in Canadian Dollars):

Trenching 50 hours @ 250/ hour = 12500 Geology 7 days @ 700/day = 4900 Sampling 7 days @ 250/day = 1750 Analysis 50 samples @ 40/sample = 2000 Mob/Demob $2000 = 2000 Food and Accom 35 mandays @ 100/manday = 3500 Sub 26,650 Drilling 500 metres @ 200/metre (all in)= 100000 Geology 7 days @ 700/day = 4900 Geotechnican 7 days @ 250/day = 1750 Analysis 200 samples @ 40/sample = 8000 Mob/Demob $10000 = 10000 Food and Accom 40 mandays @ 100/manday = 4000 Sub 128,650 IP Geophysics Geophysics 10 km @ 1000/km = 10,000 Food and Accom 30 mandays @ 100/manday = 3500 Mob/Demob $5000 = 5000 Sub 18,500 Travel, Contingencies and Office = 25,000 Total 198,800

The cost for Phase 2 drilling is estimated at $272,000, as follows:

Drilling 1000 metres @ 200/metre = 200000 Geology 10 days @ 700/day = 7000 Geotechnican 10 days @ 250/day = 2500 Analysis 400 samples @ 40/sample = 16000 Mob/Demob $10000 = 10000 Food and Accom 65 mandays @ 100/manday = 6500 Travel, Contingencies and Office = 30,000 Total 272,000

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27 REFERENCES

Kolodziejczyk, J., Prsek, J., Qela, H., Asllani, B., 2012: New Survey of Lead and Zinc Ore Mineralization in Republic of Kosovo, in Geology, Geophysics and Environment, Vol. 38, No. 3, 295-306.

Kodra, A., Elezaj, Z., 2012: Geology of Kosovo.

Lydian International, author unknown, 2009: Kosovo Resource Company Crepulja February 2007 to February 2009 Activity Report, Lydian International Limited in-house report summarizing exploration work on the Crepulja Property.

Slowey, E., 2009: NI 43-101 Technical Report on Amulsar Gold Project in Armenia, Draznje Zinc-Lead Project in Kosovo, and Crepulja Zinc-Lead Project in Kosovo, dated 17 March 2009

WEBSITES:

Kosovo Independent Commission for Mines and Minerals; http://www.kosovo-mining.org/kosovoweb/en/icmm/links.html

Kosovo Mining Regulations http://www.kosovo- mining.org/kosovoweb/en/downloads/legislation/basicContentParagraphs/03/document/Ligji%20per% 20Minierat%20dhe%20Mineralet%20%28anglisht%29.pdf

Lydian International Limited http://www.lydianinternational.co.uk

Google Earth http://www.google.com/earth/

Wikipedia https://en.wikipedia.org/wiki/Geography_of_Kosovo

SEDAR www.sedar.com

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SIGNATURE PAGE

Report To:

Altair Gold Inc. 1710 - 1177 West Hastings Street, Vancouver, BC, V6E 2L3

Technical Report for the Crepulja Property, Kosovo

Report Date: December 15, 2015 Effective Date: November 15, 2015 Prepared by: Perry Grunenberg

Perry Grunenberg Date: January 15, 2016

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CERTIFICATE OF QUALIFICATIONS FOR PERRY GRUNENBERG

I, Perry Grunenberg, of 2016 High Country Boulevard, Kamloops, British Columbia, do hereby certify that:

1. I am a consulting professional geoscientist with an office at 2016 High Country Boulevard, Kamloops, British Columbia. 2. I graduated with a Bachelor of Science degree in Geology from the University of British Columbia in 1982. 3. I am a Professional Geoscientist and practicing member registered with the Association of Professional Geoscientists of British Columbia. 4. I have worked as a geologist continuously for 30 years since graduation. My professional experience includes exploration and evaluation of mineral properties in Canada, the USA, and Albania. I have worked in variety of styles of mineral deposits, with emphasis on base and precious metals, and particular emphasis on gold, copper, molybdenum, lead-zinc and tungsten. 5. I have read the definition of “qualified person” set out in NI 43-101and certify that by reason of my education, affiliation with a recognized professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 6. I have prepared this report titled “Technical Report for the Crepulja Property, Mitrovica District, Kosovo,” with an effective date of November 15, 2015, and dated December 15, 2015. I am responsible for all Items in this technical report. 7. I visited the Crepulja property on November 16, 2015. I have had no prior involvement with the property. 8. I am not aware of any material fact or material change with respect to the subject matter of the technical report that is not reflected in the technical report, the omission to disclose which makes the technical report misleading. 9. I am independent of the issuer Altair Gold Inc., and the vendor of the Property of consideration as per Appendix 3F, Table 1 of the Exchange Corporate Finance Manual. 10. I have read NI 43-101 and Form 43-101F1, and conclude that the technical report has been prepared in compliance with that instrument and form. The technical report has been prepared in conformity with generally accepted Canadian mining industry practice.

I consent to filing of the technical report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the company files on their websites accessible by the public, of the technical report,

Dated this 15th day of January, 2016, in Kamloops, BC.

Perry Grunenberg, P.Geo.

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AUTHORS CONSENT APPLICABLE TO THIS REPORT

To the BC Securities Commission:

I do hereby consent to the public filing of the technical report entitled “Technical Report for the Crepulja Property, Mitrovica District, Kosovo”, dated December 15, 2015, by Altair Gold Inc (the “Technical Report”), with the TSX Venture Exchange under its applicable policies and forms in connection with the option agreement pertinent to the Crepulja property to be entered into by Altair Gold Inc.

I acknowledge that the Technical Report will become part of the issuers public record.

Perry Grunenberg, P.Geo.

January 15, 2016,

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