Phoenix Global Mining Ltd Mining – Initiating Post-IPO Coverage 08 August 2017

Stock Data Copper in Idaho, USA

Share Price: 3.50p Investment Case Market Cap (M): £8.0 To invest in Phoenix Global’s proposed re-opening of the Empire Mine in Idaho, USA is EV (M): £6.5 an investment in an SX/EW copper mine which aims to produce 7kt pa of cathode copper from resources within 100m of the surface, with an estimated mine life of at least 10 years. Price Chart Good Exploration Potential 4.5 There is excellent potential to increase the existing ore resources which are currently 4.0 12.8Mt grading 0.53% copper. Phase II of the proposed mine work programme includes 3.5 7,500ft of core drilling and this is expected to further add to the ore resources. The second objective is to reopen several old adits allowing for underground mapping, sampling, and 3.0 drilling of the shallow sulphides under the oxides. 2.5 Upside Potential 2.0 Jun-17 Jul-17 Apart from the upside as discussed under the exploration potential, we believe a significant boost in valuation could come from higher recoveries that are modelled at 65%. In using one large heap, the ore leached in the early stages of the proposed mine 7 Week Range life will be subject to more than 30 days leaching, and we believe that the additional 2.75p 3.50p 4.50p leaching time will result in higher copper recoveries. The sensitivity to recovery rates is discussed under the valuation section on page 32.

Company Summary Base Valuation Phoenix Global Mining is aiming to restart the Empire Brandon Hill Capital has valued the copper heap leach operation, based on the existing Copper Mine as a heap leach ore resource, which gives a 10 year mine life NPV 8% of US$36.3M, unfinanced, with an SX/EW mine in Idaho, USA. Following a successful restart, IRR of 29% on a 100% of project basis. At the time of writing, this valuation represents funds will be directed to a Phoenix Global Mining share price of US$0.16 or 12p based on the 80% ownership exploration to extend mine life of the copper SX/EW project alone, fully diluted post the IPO. and develop a sulphide mine.

Longer term potential MAIN SHAREHOLDERS HOLDING In the longer term, the project has excellent potential to become a sulphide copper Management 13.56% mine, producing a copper concentrate with precious metal credits. Historically, there Bank Heritage 4.99% ExGen Resources Inc. 4.92% have been numerous sulphide drill intercepts from beneath the oxide cap. At depth, these Cheviot Capital (Nom) Inc. 4.29% range from the surface to 131m and typically average over 1.4% copper and contain good General Mediterranean 3.33% precious metal credits. Holding SA Source: Phoenix Global Mining Ltd Research:

Peter Rose [email protected] www.brandonhillcapital.com

This is a marketing communication. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. Non-US research analysts who have prepared this report are not registered/qualified as research analysts with FINRA, may not be associated persons of the member organisation and may not be subject to NASD/NYSE restrictions on communications with a subject Company, public appearances and trading securities held by a research analyst account. Disclosures can be found at the end of the report.

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Phoenix Global Mining Ltd Post-IPO Coverage 08 August 2017

Contents Copper in Idaho, USA 1

Executive Summary 3

Company History 6

Project Location 6

The Empire Project 7

The Copper Market 30

Valuation 32

Investment Risks 36

Appendix A – Directors & Management 37

Appendix B – Company Structure 39

Research Disclaimers 41

Brandon Hill Contact List 43

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Phoenix Global Mining Ltd Post-IPO Coverage 08 August 2017

Executive Summary Phoenix Global Strategy The strategy of Phoenix is to develop an open pit oxide copper mine at the old Empire mine site in Idaho, USA. Using heap leaching followed by solvent extraction and electro winning (“SXEW”) to produce copper cathodes and this has early production potential. The cash flow that this operation generates will be used to explore for additional oxide mineralisation and for shallow sulphide mineralisation.

The Asset

The Empire Mine is located in the Alder Creek Mining District in Custer County, central Idaho, approximately 5.5km southwest of the town of Mackay. Mackay is on Highway US-93 approximately 140km west of Idaho Falls. It consists of 55 contiguous mining claims covering an area of 3.315km2. Approximately 90% of the Empire Mine deposit is on patented claims. Patented claims are land where the Federal Government has passed title to the claimant. A person may mine and remove minerals from a mining claim without a mineral patent. However, a mineral patent gives the owner exclusive title to the locatable minerals, surface and other resources.

Management This is a strong point for Phoenix. A good team has been assembled. Both the chief technical officer and chief executive officer are graduates on the Camborne School of Mines with extensive global experience in the mining industry. Ryan McDermott has recently been appointed the CEO of Konnex. He has over 30 years’ experience as a geologist and more importantly, was recently responsible for permitting a new mine into production in Idaho for GHRMC. The Chief Geologist was previously a consultant at Empire where he worked on planning and implementing drilling programmes and on the geological evaluation of the property. He brings a wealth of experience to Phoenix and has a detailed knowledge of the area surrounding Empire.

A Brownfields Site The leases cover an area which has previously been mined and that have been partially explored by numerous companies over the past 50 years. This has led to the establishment of a JORC compliant resource. Significant metallurgical test work has also been conducted on the drill core and bulk metallurgical samples which has shown that acceptable metallurgical recoveries can be obtained in copper, gold and silver. The exploration and metallurgical test work is covered in depth on pages 10 to 16 of this report.

Valuation We have valued 100% of the heap leach project, unfinanced, and based on a ten year mine life at US$36.3M, using an 8% discount rate. Importantly, this valuation is based on only a 65% recovery, which itself was based on a 30-day leach cycle. The internal rate of return is calculated to be 29%. The fact that the mine will operate one large heap suggests that a significantly higher recovery will be achieved and the project shows a high degree of sensitivity to recovery rates.

Infrastructure The Empire Mine Project is accessible from Mackay, Idaho, via a well-maintained, 5.5km long, all-weather gravel road. Access throughout the claims, including to old workings and drill pads, is by four-wheel-drive vehicle along further gravel roads and tracks. Mackay is a small town with a population of approximately 550, and is located 5.5km to the northeast of the project area. Custer County covers an area of 12,787km2 and has a population of 4368. The area has sufficient power and water available to operate the Empire Project.

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Phoenix Global Mining Ltd Post-IPO Coverage 08 August 2017

What is the upside? Brandon Hill believes that there is plenty of upside with this project. 1. Initially we expect this to come from exploration with the orebody open along strike and at depth.

2. The 61% recovery rate as mentioned in the SRK Competent Persons Report is based on a crush seize of 38mm. We believe that a crush seize of 25mm will yield significantly better recoveries, which combined with a significantly longer leach time than 89 days can only have beneficial results. Hence, we have run the BHC model with a 65% recovery factor.

3. Then, once the heap, is fully leached for copper, which we believe will deliver better than a 65% recovery, the heap can be neutralised and leached for gold and silver. This will effectively double the mine life.

4. Sulphide resources – following the IPO, the Company will be able to explore the known shallow sulphide mineralisation and this should considerably improve the current project economics.

5. This project would certainly benefit from any reduction in the US tax rates that the President is proposing. Including the state taxes, the company tax rate used in the model 42%. We have run our model with a combined federal and state tax rate of 25% and this boosted the NPV to US$49.0M and the IRR to 34.6%.

The Current Exploration Programme The exploration programme was divided into three phases. Phase 1 was to construct a new set of wire frames that more accurately represent the situation at the Empire Mine. To help achieve this, the area was overflown by drones, and as many as possible of the old drill holes had their co-ordinates re-calibrated for the new grid. This phase has now been concluded, and phase 11 is currently in progress. Following the successful IPO, the drilling programme has been extended. Originally there were to be 23 holes drilled for 5,343ft. These included 16 RC holes, 5 HQ diamond holes and 2 PQ diamond holes. Following some savings made on the vehicle budget, the drilling programme was extended to 28 holes for a total of around 7,500ft. As part of the revised programme, there will be 4 PQ holes drilled which will facilitate the heap leaching trials. It is now planned to conduct three column tests with a 25mm crush and one with a 37mm crush.

Exhibit 1: Core from PQ Hole P-29

Source: Phoenix Global Mining Ltd

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As of the 26th July 2017, 14 of the RC hole, and 5 of the diamond holes had been completed, including all 4 of the PQ holes. Samples from the first twelve drill holes have been shipped to the ALS Global's laboratory in Nevada, USA for assaying. Assays for the first 5 holes have been received.

Exhibit 2: Initial Assay Results

Hole Number Intersection Metres Total Zn Ag Au Cu

From To Intercept % % g/t g/t KX-17-2 0.0 29.0 29.0 0.46 0.07 7.7 KX-17-3 0.0 22.9 22.9 0.66 0.10 40.8 Including 16.8 21.3 4.6 2.06 0.05 92.9 29.0 36.6 7.6 0.37 0.10 16.0 41.2 62.5 21.3 0.86 1.22 13.0 Including 56.4 61.0 4.6 1.65 2.30 3.4 KX17-4 0.0 16.8 16.8 0.07 0.09 7.9 0.6 39.6 86.9 47.3 0.23 0.11 6.6

Source: Phoenix Global Mining Ltd

Drill holes KX17-1 and KX17-5 contained 15.2 metres averaging 9.6g/t Ag, and 4.6 metres averaging 0.17% Total Cu, respectively. The key result to date is that the major intersections encountered in the first 5 holes assayed is that they have exceeded the average grade in the current JORC resource.

There are also plans to obtain permits to re-open the 300, 700 and 1100 level adits and conduct underground channel sampling. This is phase 111. Before this can occur, the personnel concerned have to undergo a course run by the Mine Safety and Health Administration (“MSHA”). With the drilling programme nearing completion, site personnel have completed their MSHA training and expect to begin re-opening the 300 level adit first. The three phases are expected to take 10 months, with a two month contingency and begins with a programme of verification and infill drilling of the AP Pit near surface oxide mineralisation. This will culminate in a Pre-feasibility Study (PFS) on the AP Pit oxide resource. In tandem with this work, underground exploration will begin to evaluate the potential for a possible sulphide mineral resource. The AP Pit and underground exploration programmes have US$240k and US$520k respectively scheduled for additional drilling to verify historic drilling data and provide for additional drilling to verify historic drilling data and provide additional assay results. Phoenix have budgeted US$1,425,000 for the AP Pit oxide exploration and PFS programme and US$806,000 for evaluation of the deeper sulphide mineralisation potential below the AP oxide resource. The budget for the total work programme, including all equipment and administrative costs, comes in at US$3,567,500.

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Company History

Phoenix Global Mining Limited (“PGM”) was a private resource company incorporated in the British Virgin Islands on 19 September 2013 under company number 1791533. Its registered office is at Akara Building, 24 De Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands.

PGM’s experienced and knowledgeable core of mining engineers, geologists, and entrepreneurs form a team of highly qualified individuals. Over the years, company management has acquired valuable expertise in developing gold, silver, copper, lead and zinc deposits around the world. Also, the team behind PGM has extensive capital markets experience and a successful track record of listing and managing mining companies from exploration through to construction and commissioning

PGM has acquired an 80% interest in the Empire Mine in Idaho, USA, the “Empire Mine Project”. Phoenix has already paid the acquisition cost and the acquisition was completed when Phoenix deposited the balance of US$1M to Konnex, a TSVX listed company. This occurred on the closing of the IPO.

Project Location

Exhibit 3: Map of Idaho

Source: Phoenix Global Mining Ltd

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The Empire Project

Introduction The Empire Mine Project is covered by 55 claims. Fifty-three of these claims are held 100% by Konnex Resources Inc, (“Konnex”), while two patented mining claims in the Honolulu Copper Group (Blue Jay No. 1 and Blue Jay No. 2) are held 50%; the remaining 50% rests with the original claimant. The ownership of the Empire Mine Project through these 55 leases within the Honolulu Copper Corp and Mackay LLC groups, is illustrated in Exhibit 3.

The acquisition proceeded along the following lines:

 Phoenix acquired an exclusive option to acquire 80% of Konnex Resources from ExGen Resources (TSX listed) in July 2015 and exercised the option in November 2016  Konnex Resources is an SPV company and Empire Mine lease holder  The acquisition cost was £614,000 paid to ExGen. This amount has already been paid, including £489,000 paid in Phoenix shares  The acquisition was completed when US$1M was invested into Konnex, which is being spent on the Empire Mine. Approximately US$350K has already been invested prior to the IPO and the balance was invested from the IPO funds as part of the work programme.  US$100K to be paid annually to ExGen annually until completion of the Empire Mine BFS  ExGen will retain a 20% carried interest until construction financing at which time ExGen has to participate or dilute.  A 2.5% net smelter royalty is payable to ExGen from commercial production  Phoenix has already acquired operational control of Konnex, and the right to appoint 3 out of 5 directors. Ryan McDermott was appointed CEO in May 2017, and Dennis Thomas and Richard Wilkins were appointed following the IPO.

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Location The Empire Mine is located in the Alder Creek Mining District in Custer County, central Idaho, approximately 5.5km southwest of the town of Mackay (Exhibit 2). Mackay is on Highway US-93 approximately 140km west of Idaho Falls. The approximate centre of the property is at 43°53'N latitude and 113°40'W longitude.

Exhibit 4: Claim Map of Project

Source: Phoenix Global Ming Ltd

The Empire Mine Project consists of 55 contiguous mining claims that are divided in to the Honolulu Copper Group and the Mackay Group. The Honolulu Copper Group comprise 13 unpatented mining claims (mineral only ownership), 18 patented mining claims (land and mineral ownership) and 5 unpatented mill site claims. The Mackay LLC Group comprise 14 unpatented mining claims and 3 patented mining claims (Exhibit 3). Together these claims cover an area of 3.315km2 (331.5 hectares or 819.1 acres). The title to these claims remains with the original claimant, namely Honolulu Copper Company and Mackay LLC, though agreements are in place to lease mining rights from the claimants by Konnex.

Access and Infrastructure The Empire Mine Project is accessible from Mackay, Idaho, via a well-maintained, 5.5 km long, all-weather gravel road. Access throughout the claims, including to old workings and drill pads, is by four-wheel-drive vehicle along further gravel roads and tracks.

Mackay is a small town with a population of approximately 550, and is located 5.5km to the northeast of the project area. Custer County covers an area of 12,787km2 and has a population of 4368 (2010 census) and was named for the General Custer Mine near Challis where gold was discovered in 1876. Mackay provides housing, services and basic amenities to support the employees of mines in the area. There are sufficient skilled and unskilled workers in and around the towns of Mackay and Challis (80km to the northwest) and Arco (43km to the south) to supply the project.

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Supplies may also be obtained from Idaho Falls (140km) which is serviced by a regional airport, rail and major highways.

Phoenix has contacted the local power company, “Lost River Power” and there will be no issue with securing enough power for the Empire Project.

Phoenix also has water rights from Cliff Creek, which are located on the south side of the district. There is enough water for drilling, watering roads, etc. from Cliff Creek. Depending on the processing method, the mine may have to secure additional water rights in the valley. There is a large reservoir 5.8 miles upstream from the town of Mackay where 45,000 acre feet of water is stored and is readily available.

Permitting Federal mining legislation is governed by the General Mining Act of 1872 that authorises and regulates prospecting and mining for “valuable deposits”. It defines a “mining claim” as the right to explore for and extract minerals from an area of Federal land. Claims may be acquired by any citizen of the United States over the age of 18, a corporation, and non-citizens (aliens) who have declared their intention to become a citizen. The law is enforced by the BLM and fully described through the Code of Federal Regulations, Title 43 CFR.

There are two types of claim that have been staked at the Empire Mine Project;

Lode (Mining Claim) A classic vein, ledge, or other rock in place between definite walls. A lode claim is located by metes and bounds. The maximum length is 1,500 feet by 600 feet” (457.2m by 182.9m, equal to 10 hectares).

Mill Site (Claim)

Public lands which are non-mineral in character. Mill Sites may be located in connection with a placer or lode claim for mining and milling purposes or as an independent/custom mill site that is independent of a mining claim. Mill Sites are located by metes and bounds or legal subdivision and are up to 5 acres in size.

Initially claims are granted as unpatented. An unpatented mining claims confers all rights to the minerals on the claim and is an interest in real property that may be left to an heir, sold, leased, borrowed against or lived upon (under certain conditions). The claimant may use the surface and its resources for the purpose of mineral exploration and mining. The ground and surface resources remain Federal property, however access must be granted to the Claimant. Claims are valid in perpetuity as long as property is worked each year and the Annual Maintenance Fees are paid. The annual fee for claimants is $155 per claim. An annual filing must also be made in the County in which the claim is registered that the BLM requirements have been met and there is intent to hold the claim for future mining use. All minerals exploited can be disposed of by the Claimant as they wish and no royalties are due to the government.

Prior to 1994 claimants could patent their claim which conferred surface rights to the claimant so that the surface land could be used for any purpose. A Congress-imposed moratorium has meant that no new mining patents have been issued since October 1994.

Subsequent amendments to the General Mining Act of 1872 include the Multiple Mineral Use Act of 1954 and the Federal Land Policy and Management Act of 1976. Regulations to this last Act effectively replace many of the 1872 Mining Law provisions and require mining reclamation, financial guarantees for reclamation to the Federal government, mining claim occupation permits and detailed Mining Plans of Operations to be submitted to the governing agencies before disturbing the surface.

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Exploration

Exhibit 5: The Core Shed, Mackay

Source: BHC

Exploration History The first copper mineralisation was found on the Empire Mine Property in 1884. Progression to mining was rapid in these early years and few of the records of exploration activities survive today. Despite this mining being predominately for the sulphides zone, since the closure of the underground mines in the 1940’s, exploration has focused on the shallow oxide mineralisation, mostly within the AP Pit area, that could be exploited by surface open pit mining methods. Some of the more resent exploration has encountered the supergene and sulphide zones within the mineralisation.

1964-1975

The first coordinated exploration of the Empire Mine Property took place between 1964 and 1972, when several companies drilled a total of 141 exploration holes in the AP Pit area to better evaluate the shallow oxide mineralisation. These were drilled by Cleveland Cliffs Iron Co. (CCDH 2-9; 8 holes, 1962), New Idria Mines (NI 1-20, 20 holes, 1967), Hile Exploration Co. (H 1-58, 58 holes, 1969), Capital Wire & Cable Co. (CW 1-14, 14 holes, 1970), and US Silver and Mining Corporation (Behre Dolbear: BDH 1-41, 41 holes, 1972). All drill holes were assayed for copper and only nine were assayed for gold (within the NI series). During 1972, a mill was constructed and the ore developed by the United States Bureau of Mines (USBM) was exploited at the 1100 level.

In 1975, Exxon explored for copper and molybdenum. By 1975, a total of 151 drill holes, mostly within the near surface oxides of the AP Pit area, had been drilled by various companies on the property.

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1976-1997 The first systematic modern day exploration was conducted by Cambior Exploration USA Inc. (“Cambior”), who explored the property from 1995 to 1997. This exploration entailed data compilation, surface mapping, surface sampling, and ground and airborne magnetic surveys.

In 1996 to 1997 the company drilled 47 core holes (totalling 7350 m), including 21 in the AP Pit area. Various internal non- compliant resource estimates were completed in the 1990’s by Cambior and by third parties using different parameters. In their 1997 report issued for vending purposes, Cambior stated that “The present oxide resource estimate, using a 0.15% Cu cut-off, stands at 18 Mt at 0.49% Cu, 0.19% Zn, 13.5 g/t Ag and 0.48 g/t Au, with an additional 9 Mt of material grading 0.29% Cu and 0.31% Zn with no precious metal values”.

This resource was estimated prior to creation of the modern resource guidelines and insufficient information is provided to allow SRK ES to determine the conditions under which the figures were estimated. This historical resource should not be treated as current Mineral Resources compliant to the JORC Code.

In 1995, METCON Research, of Tucson Arizona, began preliminary metallurgical test work for Cambior. Testing was completed on 11 mineralised composites taken from nine drill holes (Metcon Project M-403-09). Cambior investigated leaching of copper by sulphuric acid, and leaching of precious metals by cyanide. All tests were conducted using conventional bottle rolls. The bottle roll tests were for a twenty-four hour period at a size of minus 100 mesh. The testing included results from sulphuric acid leaching, cyanide leaching, and by sequential sulphuric acid leaching followed by cyanide leaching. In general, the results of leaching with sulphuric acid indicate copper oxide recoveries ranging from 80% to 90% and zinc recoveries ranging from 70% to 80%. Gold and silver are highly soluble in cyanide after copper has been removed. Gold recoveries were found to range from 75% to 85%, with silver recoveries ranging from 50% to 60%.

The low commodity prices of the time and financial commitments elsewhere prompted Cambior to relinquish he project in 1999. Although Cambior’s drilling programme was focused on the near surface oxide copper zone amenable to processing by heap leaching and solvent-extraction/electro-winning (“SX-EW”), it is clear from the drilling completed by 1997 that there is potential additional tonnages/grade (Cu, Au, Ag) within the wall rock material adjacent to the old underground workings in the mixed and sulphide zones. No systematic programme has been carried out to evaluate the potential of these zones using current economic criteria for both open pit and underground mining operations. Subsequent drilling campaigns also focused on the near surface oxide zone.

2001-2004: Sierra Mining and Engineering LLC Sierra Mining and Engineering LLC‟s (“Sierra”) preliminary mine engineering study corroborates Cambior's findings and statements (Golden, 2001). Sierra's assessment was calculated independently from Cambior's database. Golden stated that Cambior's near-surface oxide resource was amenable to SX-EW acid leach processing operations, pending further metallurgical testing. Golden also opined that sulphide mineralisation, which characterises the deeper workings of the Empire Mine, could be amenable to milling and flotation. In 2004 Sierra estimated a Mineral Resource for the AP pit and its northern extension. 2004-2005: Trio Gold Corporation In December 2004, Trio Gold Corporation (“Trio”) completed a 10-hole, 700 m, reverse-circulation (“RC”) and PQ-core drill programme in the AP Pit area. The programme consisted of nine 11.4 cm-diameter RC drill holes (670 m) and one 8.5 cm- diameter PQ-core drill hole (29 m). All of Trio's drill holes were vertical. Due to the nearly flat-lying nature of the AP Pit oxide skarn, thicknesses are considered to be nearly true. The drill programme was successful in confirming the grades of copper, gold and silver in the AP Pit. Grades of up to 13.5% Cu over 1.5m, 1.61% Cu over 59m and 5.5g/t Au over 4.6m were obtained (van Angeren, 2005). Exhibits 5 and 6 show total copper content (TCu) as well as the amount of acid-soluble copper (CuOx or ASCu) included in this total.

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Exhibit 6: Empire Mine 2006 Core Drilling Results - Journey

Hole UTM E UTM N Elevation Total From To (m) Width TCu % ASCu Au g/t Ag g/t (m) (m) (m) Depth (m) (m) % (m)

JDD01 28516 486212 2616 129.5 11.3 27.7 16.5 0.85 0.66 26.1 7 5 66.1 73.2 7.0 0.23 3.33

JDD02 28526 486241 2596 164.6 79.2 96.0 16.8 0.26 0.15 12.4 9 0 91.4 96.0 4.6 1.38 JDD03 28520 486242 2614 87.5 12.2 25.9 13.7 1.35 1.08 1.85 48.6 0 0 JDD04 28518 486232 2626 91.4 12.8 75.3 62.5 0.31 0.25 26.0 4 1 12.8 25.9 13.1 0.56 0.45 31.4

39.6 45.7 6.1 1.04 0.98 80.8

JDD05* 28522 486231 2622 57.9 44.2 57.9 13.7 0.39 0.16 26.1 1 7 JDD05 28522 486231 2622 107.3 20.1 96.6 76.5 0.65 0.55 +stope 25.3 a 1 7 20.1 96.6 59.4 0.84 0.70 -stope 24.0

* Hole lost in stope

Source: Phoenix Global Ming Ltd

The drill programme was successful in improving the thickness of mineralisation to at least 67m, and in confirming the grades of copper, gold and silver in the AP Pit area. Trio's drill programme showed that copper favours exoskarn, whereas gold is more closely associated with limonitic (FeOx) breccias and stockworks. Gold mineralisation appears to post-date the copper event, and seems to have precipitated, along with iron-oxides, in breccias.

The PQ-core hole is located at the north end of the AP Pit. It was drilled for metallurgical purposes (see below). In conjunction with the PQ-core hole at the north end of the AP Pit, Trio also extracted a 2100kg bulk sample from four test pits adjacent hole TRC04-1 at the centre of the AP Pit. The core and bulk sample material was sent for testing at Kappes, Cassiday & Associates Inc. (“KCA”) in Reno, Nevada. The test work was conducted to verify leach recovery of copper and zinc at varying “feed” sizes. Firstly, head assays were determined for the core and bulk sample using four-acid digestion and sequential copper leach processes.

The bulk sample shows 0.80% TCu and 0.79% ASCu (van Angeren, 2007). It is evident that more than 95% of the copper in these samples occurs in the acid-leachable oxide form. Preliminary column leach tests on the bulk sample revealed a 31% copper recovery from run-of-mine material (i.e., raw, minus 8", uncrushed material) after 82 days of leaching by sulphuric acid (KCA, 2005). Material reduced to a minus 1.5" (-3.8 cm) crush size showed recoveries of 61% after 89 days of leaching. Acid consumption was estimated at 12 pounds of acid per ton of ore.

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Exhibit 7: Empire Mine 2006 Reverse Circulation Drilling Results - Journey

Total UTM E UTM N Elevation Depth From Width ASCu Hole (m) (m) (m) (m) (m) To (m) (m) TCu % % Au g/t Ag g/t 28500 JRC01 4 4862005 2648 134.1 0.0 4.6 4.6 0.15 9.1 18.3 9.2 1.93 28506 JRC02 5 4861995 2642 30.5 13.7 30.5 16.8 0.50 0.15 JRC02 28506 a 8 4861993 2642 134.1 13.7 59.4 45.7 0.65 0.18 10.0 25.9 38.1 12.2 0.86 28504 JRC03 1 4862008 2644 21.3 10.7 21.3 10.6 0.84 0.23 14.2 JRC03 28504 a 6 4862008 2644 33.5 7.6 27.4 19.8 0.69 0.14 11.7 28505 JRC04 5 4861951 2634 121.9 3.0 35.1 32.1 0.48 0.12 28498 JRC05 0 4862051 2663 115.8 0.0 12.2 12.2 0.46 0.07 11.3 28497 JRC06 8 4862080 2676 134.1 0.0 32.0 32.0 0.44 0.18 0.38 15.2 25.9 10.7 0.69 0.25 0.48 18.4 28497 JRC07 0 4862134 2689 137.2 0.0 16.8 16.8 0.11 0.02 28498 JRC08 7 4862166 2686 106.7 NSV 28501 JRC09 9 4862079 2669 121.9 0.0 27.4 27.4 0.16 0.06 0.50

Source: Phoenix Global Ming Ltd

In view of the veinlet and inter-crystalline nature of the copper mineralisation, KCA proposed that a finer crush size may improve recoveries. KCA also surmised that copper-zinc ores would be amenable to treatment using heap leach technology with metals being recovered in a solvent extraction system (SX-EW). Gold head-grades were too low in this particular bulk sample to provide measurable results in a bottle roll cyanide leach test. On the other hand, 92% of the silver was recovered within two days (11.0 g/t; 0.32 oz/t Ag head-grade).

On the basis of the 2004 to 2005 results, a 65 drill hole infill drilling programme, along with comprehensive metallurgy, was planned for the Empire Mine project for 2005 to 2006 (van Angeren, 2005).The Trio drill locations were planned to test mineralisation below existing drilling and to test the precious metals content within the known copper orebody as well as extend precious metals testing to greater depth.

2006: Journey Resources Corporation In 2006, Journey Resources Corporation (“Journey”) drilled 33 of the 65 holes which had been proposed in 2005. All the drill holes were in the AP Pit area focussing on oxide mineralisation, with the balance planned for 2007. The 33 holes totalled 4035m and consisted of five NQ core and 28 RC, with two of the RC drill holes lost. All drill holes were inclined at -45° towards the west; true thicknesses are considered to be approximately 75% of drilled values.

Journey’s drill programme was successful in confirming the grades and widespread distribution of copper, gold and silver in the AP Pit area. The programme also confirmed Trio’s 2004 findings.

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Highlights from the 2006 drilling programme include: 77m at 0.65% Cu and 25g/t Ag, 53m at 1.37% Cu and 30g/t Ag, (including 9m of 4.64% Cu and 127g/t Ag), 98m at 0.49% Cu and 9m grading 5.72g/t Au (including 1.5m at 26.4 g/t Au) (van Angeren, 2007).

In April 2007 Anderson Resource Associates, Inc., produced a technical report on the Empire mine for Trio and Journey (2007, Anderson). This included a mineral resource and mineral reserve estimate for the oxide portion of the Empire Mine deposit.

The planned next phase of exploration, to complete the remaining 32 drill holes of the 65-drillhole schedule, was conducted by Musgrove in 2011.

2011: Musgrove Minerals Corporation Musgrove completed 4348m of RC drilling in 24 drill holes in 2011 (van Angeren, 2013, pers. comm.). Seventeen drill holes were in the northern half of the skarn deposit Table 6-6 and illustrated in Figure 6-1. This area represents the most heavily underground-mined portion of the Empire Mine, hence most likely to contain higher-grade mineralisation, but also the highest incidence of underground workings (stopes, drifts. etc.). The other seven drill holes were in the AP Pit area. All drill holes were inclined at -50° towards the west which is up to 86° from the presumed attitude of the mineralisation (van Angeren, 2012, pers. comm.). True thicknesses of the mineralised zones are variable and unknown, but are considered to be up to 75% of drilled values.

Highlights of the 2011 campaign completed by Musgrove include:

 6.1m at 1.32% Cu, 1.13g/t Au and 21.3g/t Ag (EM11-08);  48.7m at 0.54% Cu (EM11-15);  4.6m at 1.84% Cu, 33.8g/t Ag and 0.51% Zn (EM11-16);  35m at 0.69% Cu and 0.73% Zn (EM11-17); and  27.4m grading 1.35% Cu, 1.34g/t Au, 80.3g/t Ag and 0.81% Zn (surrounding an approximately 5m wide open stope (EM11-23; AP Pit).

2013: Boxxer Gold Corporation

In 2013, Boxxer Gold Corporation (“Boxxer”) initiated follow-up work on Trio’s 2005 metallurgical testing by extracting four bulk samples from four test pits representing the four different mineralised rock types encountered in the AP Pit area.

Four samples, totalling 488.5 kg were sent to KCA in Reno, Nevada to determine the amenability of the Empire Mine ore to acid leaching for copper recover and cyanidation of gold and silver. KCA worked on two of the bulk samples, exoskarn sample EM13-Met1 (KCA sample 69501) and FeOx breccia sample EM13-Met4 (KCA sample 69504). Samples endoskarn EM13-Met2 (KCA sample 69502) and magnetite skarn EM13-Met3 (KCA sample 69503) were not worked on and remain “in store” with KCA in Reno.

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Exhibit 8: Empire Mine Drilling Locations Summary 1996 to 2011

Source: Phoenix Global Ming Ltd

The objective of the sequential leach was to determine the speciation of copper in the sample. The first leach employed a dilute sulphuric acid solution containing a small amount of ferric iron. This was followed by a leach with sodium cyanide,

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with a copper analysis of the insoluble residue. The amenability of copper minerals to leaching varies somewhat with relation to the type of mineralisation; however, in general the following applies:

 Most oxide copper minerals (except for cuprite at 70% soluble and native copper at 5% soluble) are easily soluble in sulphuric acid;  Most secondary sulphides (chalcocite and covellite) are easily soluble in sodium cyanide solutions (more than 95%) and not easily soluble in sulphuric acid solutions (less than 5%);  The primary sulphide, chalcopyrite, is only slightly soluble in sodium cyanide (less than 7%) and not easily soluble in sulphuric acid (less than 2%);  Bornite, when present, is about 50% soluble in sodium cyanide but not easily soluble in sulphuric acid. It therefore exhibits behaviour intermediate between a primary and secondary sulphide; and  The acid-soluble materials are also cyanide soluble (oxides and secondary copper minerals are both cyanide soluble while primary minerals are not).

In summary, for sample EM13-Met1:

 17.1mm material yielded the following recoveries after a 240 hours‟ leach period: 52% Cu (exoskarn); and  0.075mm material yielded the following recoveries after a 96 hours‟ leach period: 95% Cu (exoskarn).

Cyanide Bottle Roll Leach Test Work One cyanide bottle roll leach test was conducted on a split portion of the EM13-Met4 sample material (KCA sample 69504). A 1000g portion of head material pulverised to a target size of 80% passing 0.075mm and then utilised for a 96 hour leach test, and maintained at a target concentration of 1.0g sodium cyanide per litre of solution. This laboratory test was conducted with hydrated lime for pH control.

Summary Sulphide Results As discussed above, the focus for most of the historical exploration was the near surface Cu oxide potential for the Empire project. However, an enriched secondary sulphide copper zone (Supergene Zone) and the primary copper sulphide zone exists below this copper oxide zone. While PGM aim to continue research into the copper oxide zone and its economic potential, their primary aim is to realise the supergene and sulphide zone potential across Empire. There is also evidence that these lower regions host economic grade tungsten that while never systematically assayed for, individual grab samples taken by the USBM have been as high as 4.3% WO3, (Maund, 2015).

Historically all exploration activity has focused on the near surface oxide zone (the AP Pit) amenable to heap leaching and SX-EW cathode copper recovery. No systematic exploration programme has been carried out on the underlying secondary and primary sulphide zones. Of the drill holes drilled to-date several have intersected this deeper sulphide zone however. Table 6 highlights these sulphide drilling intercepts. These intersection range from 1.2% Cu to 11.4% Cu and range from surface or near surface intersections to deeper +100m depth intersections.

The exact location of the oxide/sulphide boundary across Empire is currently unknown and will require investigation in future exploration. It is likely to be a diffuse and interfingered contact between oxide, supergene and primary sulphides. SRK ES note that from the US Bureau of Mine 1944 underground channel sampling, it appears that sample on the 300 Level were “cut in oxide” while no such comments were made on deeper levels. This therefore suggest that this boundary is likely somewhere below the 300 level but may roughly parallel topography.

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Ore Resources The ore resources and reserves were an historic non JORC compliant figure that was completed in 1996.

Exhibit 9: Empire Mine AP Pit Resources

Source: Phoenix Global Ming Ltd

SRK updated the block model to include the additional 67 drill holes which were not included in the above figure. The revised estimate used a total of 255 drill holes for 24,470m of drilling across 9 lithologies. Mineralisation was constrained within a 0.1% Cu grade shell and a four pass Ordinary Kriging estimate was conducted using variogram parameters defined for the three main areas (South, Central and North) with results hosted within a 6x6x6m block model.

Tonnages were estimate with the use of 99 density measurements collated from historical data and from a new data collected by PGM under SRK’s guidance.

The final estimate was constrained within an optimised open pit resulting in a JORC 2012 compliant Mineral Resource estimate, reported to a cut-off grade of 0.17% Total Cu, as detailed in Exhibit 9.

Exhibit 10: SRK 2017 Mineral Resource Statement

Source: SRK 2017

SRK have also defined a significant amount for further mineralisation that does not fall into the current optimised open pit and currently exists as an Exploration Target. This material is current constrained outside of the optimised pit due to the 61% recovery based on limited metallurgical test work, or insufficient data to provide continuity of grade.

Comparisons to historical estimates have to be considered with care as they are not direct comparisons due to the varying approaches and proposed mineral processing routes and therefore their corresponding costs and recoveries, employed over the life of the project.

However, the 2017 estimate correlates well with the 2007 Journey estimate but has involved a higher degree of validation and verification of the input data. Further, the modelled extent and grade of mineralisation remains very similar to those in the 1997 estimate, the differences are simply in the way this mineralisation has been reported.

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Exhibit 11: In-Pit Mineral Resource Sensitivity

Source: SRK 2017

Comment Brandon Hill Capital believes that it is a very harsh decision to reduce the recovery rate to 61% based on limited metallurgical work and an 89 day leach period utilising a 38mm crush size. BHC modelling has consistently shown this project to be very sensitive to the recovery rate, and no extended leach tests have been conducted. Due to limitations in the current lease areas, one large heap is proposed and we believe that this will result in a substantially better recovery than 61% over time, indeed, our base case in based on a recovery of 65%, assuming that Phoenix will crush to 25mm or perhaps 18mm. We believe that we are taking a conservative stance.

PGM is taking steps to acquire further leases which may well mean that these limitations are removed. It would be very interesting to see what recovery could be obtained from a 25mm crush size over 90 days, but we are confident that it would be nearer 70% than 61%.

Further, due to the proposed mill feed being a mixture of oxide and sulphide, the actual recoveries are going to be difficult to forecast with any great accuracy. Some sulphide ores are readily leachable, such as chalcocite, whilst others are not.

The currently proposed pit has been designed with a 450 pit wall angle. The onsite visit suggested that the original slope of the AP pit has substantially steeper pit walls. This would reduce the stripping ratio and hence production

Permitting Specific to Empire Approximately 90% of the Empire Mine deposit is located on patented mining claims. The remainder of the project trends on public lands administered by the Bureau of Land Management (BLM), US Dept. of the Interior. Initial permitting will be limited to the patented mining claims. The proposed processing facility is located on private land. The Idaho Department of Lands (IDL) will act as the lead agency in the regulation of permitting the operation of the Empire Mine. Mining or exploration on private lands in Idaho requires the approval of IDL Reclamation Plan. The IDL has 60 days to approve a completed reclamation plan, weather permitting. No fee is required and a reclamation bond not to exceed $1,800 per acre of disturbed land is required. The proposed disturbance for the open pit and ancillary facilities is estimated at 180 acres requiring a maximum bond of $324,000.

Primary environmental audits were conducted by Gochnour and Associates of Denver, CO and by RTR Resources Management, Inc. of Boise, ID. These audits identified no obvious fatal permitting problem in relation to the Empire Mine. On November 2, 2000, the BLM, USFS, and State of Idaho met with property representatives with the objective of identifying specific criteria required to meet regulatory approval to mine. The agency representative outlined basic criteria for permitting on private land, as well as, on the public land claimed by the mine. A basic permitting procedure was determined by the owner as result of this meeting.

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Permitting criteria on private lands was discussed with the Idaho Department of Lands (“IDL”) personnel supplied appropriate laws, regulations, and applications with respect to permitting the Empire Mine. The IDL, Bureau of Minerals administers rules and regulation governing surface mining operations in Idaho. These rules apply to all surface mining operations conducted with the State, regardless of land ownership. The operator is required to submit an application, a map or maps of the proposed mining operation, which include vicinity maps of the mine, and mineral control map of appropriate scale for boundary identification. This permitting requirement is estimated to cost $5,000. A reclamation plan must be submitted in map and narrative form which shows the surface profile before and after mining, all roads to be reclaimed, and a plan for re-vegetation of affected land including the estimated cost of reclamation. This permitting requirement is estimated to cost $100,000. The operator must submit a water management plan which identifies and assesses the foreseeable site specific non-point sources of water quality impacts upon adjacent surface waters. This permitting requirement is estimated to cost $150,000. Total cost of submittals to the IDL is estimated to be $150,000 and a contingency of $50,000 is needed to enable Trio’s reaction to public concerns, for a total initial submittal cost of $450,000.

The project access route crosses federally managed land and will require a Right-of-Way Grant from the Bureau of Land Management and the US Forest Service. The ROW application process may require an Environmental Assessment, National Environmental Policy Act (NEPA) preparation to evaluate the project’s impact on local resources. A draft Environmental Assessment may be written by a third party contractor and submitted to the federal government for their compliance check and publishing. The ROW and Environmental Assessment may cost the project $15,000 to $30,000.

A small fraction of land, two 2.5 acre triangle shape areas of federal land are within the project area patented land. These areas may be avoided, or a trade with the US Forest Service may mitigate issues and concerns regarding these in-holding by the federal government. Mitigation costs or trade cost could range between $20,000 and $50,000 depending on trade conditions.

The total permitting cost will also include local building permits and compliance with the Idaho Fire Marshall’s office, air quality permitting, water quality permitting and other incidental permits as required by the federal, state and local government authorities. These permits will likely cost $10,000 to $20,000. The total project permitting should range between $75,000 and $115,000 for permit preparation and submittal.

Regional Geology The Empire Mine Project is located within the Alder Creek Mining District of central Idaho. This region lies to the east of the Idaho Batholith and north of the Snake River Basalt Plain, within the Cordilleran thrust belt at the northern edge of the Basin and Range structural province.

The Idaho Batholith is a Late Cretaceous (110 - 75 Ma) composite mass of granitic plutons covering approximately 35,000km2. The intrusive igneous rocks comprise granite, granodiorite and tonalite. There are three lobes separated by geology and geography; the Kaniksu Lobe in the Idaho panhandle, and the Atlanta and Bitterroot lobes in central Idaho.

The Snake River Plain Belt across southern Idaho consists of Idavada Volcanics, Yellowstone Volcanics (rhyolite) and Snake River Basalt with some Quaternary sedimentary rocks. It formed during the Miocene to Holocene (17 Ma - Present) by the movement of the continental crust over a mantle plume or "Hot Spot".

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Exhibit 12: Simplified Map of the Main Geological Province across Idaho

Source: Phoenix Global Ming Ltd

The Challis Group, represents a flare-up of intrusion, volcanic activity, extensional faulting along northeast-striking faults of the Trans-Challis fault system, and formation of major mineral deposits, in central Idaho during the Eocene (52 - 45 Ma). The group includes intrusive pink granite, eruptions of rhyolite lavas, and andesite and dacite associated with extensional faulting.

The Northern Thrust Belt is a zone of northwest to southeast-trending thrust faults of Late Cretaceous age, which cut through Mesoproterozoic sedimentary rocks of the Belt Supergroup including sandstone, shale and limestone (1450 - 1400 Ma).

The Basin and Range Province consists of Neoproterozoic to Paleozoic sediments (700 - 150 Ma) including sandstone, shale and limestone.

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Local Geology The Alder Creek Mining District, within Custer Country, in the White Knob Mountains, is underlain by sedimentary rocks of Mississippian age (Ms), which have been intruded by granites of Eocene age (Tgs) and overlain by Eocene Challis Volcanic Group volcanics and volcaniclastics (Tcv). The intrusives which represent the last phase of the Challis magmatic event (46 - 44 Ma), also include stocks and dykes of dioritic, granitic (aplite) and trachytic composition. The contact between the carbonate rocks and the granitic intrusives has locally been metasomatised to garnet-diopside skarn.

Quaternary sedimentary deposits including alluvial (Qa), moraine and glaciofluvial outwash (Qm), and surficial cover including colluvium, fluvial, alluvial fan, lake and windblown deposits (Qs) are present in the area.

Exhibit 13: Geology of Custer County

Source: Phoenix Global Ming Ltd Local Structures

The Alder Creek Mining District is located within the Idaho-Wyoming fold and thrust belt on the edge of the Basin and Range Province, where thrusting occurred from west to east during the Mesozoic. The mining district is in the White Knob thrust plate, which is bounded by the Cretaceous Copper Basin Thrust to the southwest and the Big Lost River Thrust to the northeast. Within the White Knob thrust plate, two northeast-striking Eocene faults define the northwest and southeast margins of the White Knob horst.

The Mississippian sedimentary rocks are folded with anticlines and synclines generally trending north-northwest, although locally the fold trends vary. The limbs have moderate to steep dips to the northeast and southwest. The uplift of the horst and pluton emplacement were thought to be synchronous, but recently it has been proposed that the uplift may be earlier than the intrusion (Chang and Meinert, 2008).

In addition to the dominant northeast-striking extensional structures including the horst, faults, intrusions and dyke swarms, there are also northwest-striking Neogene faults related to Basin and Range extension. Numerous such faults are found in the Challis Volcanic Group on the northwest and southeast sides of the horst, and a major fault crosses the horst.

Deposit Scale Geology The property encloses a north-trending contact zone between an Eocene granitic complex including the Mackay Granite and Granite Porphyry, and the Upper Mississippian aged White Knob Limestone (Exhibit 13 right-hand side).

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This contact zone includes a garnet-pyroxene-magnetite skarn developed in both the carbonate and intrusive rocks. The skarn hosts the polymetallic copper mineralisation which characterises the Empire Mine. The intrusive contact is sharp and dips steeply eastward.

The White Knob Limestone consists of a pure, grey, medium-bedded limestone which dips steeply westwards into the Eocene intrusive complex. The carbonate sequence is underlain by, and interfingered with, calcareous siltstone and sandstone belonging to the Lower Mississippian Copper Basin Formation.

The Mackay Granite is the largest intrusive body in the vicinity of the Empire Mine project. The granite is exposed over an area of approximately 30 km² trending roughly northeast, west of the claim block. It is a grey, medium-grained granite which does not host mineralisation. It consists, from early to late, of quartz monzodiorite, granophyre, granite porphyry, porphyritic granite and many dykes.

The Mackay Porphyry occurs only in the project area, and is believed to be directly related to skarn mineralisation. It occurs as a 500m wide fluorine-rich border phase of the Mackay Granite, traceable for at least 2100m within and beyond the property. It lies immediately between Mackay Granite and White Knob Limestone, and hosts all of the embayments and pendants of the latter. The Mackay Porphyry occurs as a grey/white, very fine grained, leucocratic granite with up to 65% phenocrysts of feldspar and quartz.

Skarnification within the Mackay Porphyry was facilitated by its high fluorine content; fluorine, a volatile, indicates that the porphyry was a “wet” intrusion, which would have facilitated fluid and mineral transfer between the intrusive and wall rocks, resulting in calc-silicate skarnification rather than simple thermal metamorphism (marbleisation) of the limestone. The Mackay Granite, on the other hand, was “dry” (depleted in volatiles), and it did not result in skarnification in the limestone. Indeed, field relationships observed in the Atlantic-Pacific (“AP”) Pit and in core confirm that the Mackay Porphyry was an early, volatile-rich, apophysis of the Mackay Granite, and was later intruded by the granite and its attendant aplite dykes.

Various granodiorite and aplite dykes intrude all other formations and appear to postdate skarn formation. Aplite also forms a seemingly plug-like mass underlying the site at shallow depth. Aplite does not appear to have caused skarn-formation in the White Knob Limestone.

Exhibit 14: Location and regional Geology of the Empire Mine

Source: Chang and Meinert

The Empire Mine calc-silicate skarn forms a 150m wide sinuous belt extending for more than 2500m along the limestone - porphyry contact from the south end of the property to the White Knob Mine. The skarn consists of garnet with significant

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quantities of diopside, along with subordinate amounts of magnetite, haematite, actinolite, scapolite, wollastonite, epidote, and fluorite.

Well-banded green diopside skarn (exoskarn) is developed in the limestone and siltstone where they form embayments and pendants within the intrusive complex. These pendants are a significant host of low-grade copper mineralisation

Three types of skarn have been identified, i.e. green exoskarn, brown endoskarn and black magnetite skarn: i) Brown endoskarn dominates over green exoskarn, which in turn dominates over black magnetite skarn. ii) Green exoskarn (derived from limestone) consists primarily of well-banded diopside-garnet ± laminae of coarse magnetite grains. iii) Brown endoskarn (derived from porphyry) is a massive sucrosic garnet-dominant. Most of the garnet is iron-rich brown andradite and translucent-yellow grossularite (Umpleby, 1917). iv) Magnetite skarn occurs as massive, fine-grained, crudely-bedded magnetite with rare “ripup” clasts of exoskarn, and less-so as magnetite-cemented breccia with abundant fragments of exoskarn and/or endoskarn.

All three skarn-types contain subordinate amounts of haematite, actinolite, scapolite, wollastonite, epidote and fluorite. Exoskarn typically forms large masses which appear to have “rafted” into the porphyry as pendants and embayments. The inner edges of the larger exoskarn bodies often grade to massive magnetite skarn at their contact with endoskarn or porphyry. This is most evident at the southern edge of the large exoskarn mass which underlies the AP Pit.

Remnant bedding can still be traced into the magnetite from the rest of the exoskarn body. The magnetite breccias may represent the pathways which provided access of mineralising hydrothermal fluids into the then developing skarn. At the outer margin of the skarn is a narrow discontinuous belt of marble separating it from fresh limestone.

The Empire Mine skarn is cut length-wise by several linear bodies of gossanous, clay-altered, iron oxide breccia (FeOx breccia), which may represent post-skarnification faults. These structures are a significant host to copper-gold mineralisation. Mineralisation Copper-gold-zinc-silver mineralisation at the Empire Mine falls into the skarn-hosted, polymetallic deposit type. In fact, historical results and mining records suggest that skarn mineralisation at Empire may exhibit depth zonation with copper giving way to zinc and finally tungsten mineralisation. This skarn has the bean overprinted by a later epithermal event along pre-existing structures resulting in the gold and silver mineralisation encountered.

Both copper-oxide (carbonates, malachite and azurite) and sulphide (chalcopyrite/chalcocite) mineralisation is developed to varying degrees within exoskarn in limestone and endoskarn in porphyry. The copper oxide mineralisation occurs as veinlets, stockworks, and disseminated oxide/sulphides.

The sulphides have similar characteristics, but also occur as massive lenses, both copper sulphides and magnetite, along skarn-hosted fault breccias. In both of these breccia types, the degree of mineralisation appears to be a function of the amount of contained skarn fragments. The copper and iron were apparently introduced into the skarn during the latter stages of the skarnification processes (Chang, 2003). Brittle faulting/shearing and ductile deformation during the skarnification process likely provided the conduits for mineralising fluids. These conduits may be exemplified by magnetite breccia.

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Exhibit 15: Cross Section 25700N in the Empire Mine

Source: Chang and Meinert

At the northern end of the property, mineralised zones dip eastward at about 45° to 90°, somewhat parallel to the limestone- porphyry contact (but cross-cutting the west-dipping limestone). At the southern end, in the vicinity of the AP Pit area, the dip of both exoskarn and mineralisation ranges from 30° to 50° towards the east, suggesting that the skarn body may represent a detached raft of limestone.

Drilling has encountered a skarn-hosted body of disseminated and stockwork copper-oxide mineralisation extending over a strike length of 1200m, with a thickness of 6m to 73m, and a width of up to 130m from surface. The “width” figure is a function of topography; the skarn is exposed along a steeply-inclined north-trending ridge-crest, with the northern most outcrop being 255m lower in elevation than the southernmost exposure in the AP Pit (2425m above mean sea level (“amsl”) versus 2680m amsl). The deepest mineralised intercept is at an altitude of 2319m amsl (drillhole S039 at the northern end of the skarn body), at a true depth of 126m from surface, but approximately 360m below that of the top of the AP Pit (S039 was collared at approximately 2445m amsl. All of the mineralised intercepts are in endoskarn, exoskarn and skarn-hosted breccias. The mineralisation intersected is oxidised from surface to a vertical depth of approximately 100m, with sulphide mineralisation dominating below that depth. The transition zone between oxide and sulphide extends over several dozens of metres.

The deepest mineralised intersect (drillhole S039) grades 1.38% Cu (of which 0.41% is Copper Oxide “CuOx” or Acid Soluble Copper “ASCu””, i.e., a 43% ASCu to Total Cu ratio), 6.52g/t Au and 36.3g/t Ag, over 3m in oxidised skarn and gossanous veining at a depth of 126m from surface, but 360m from the uppermost reaches of mineralisation (top of AP Pit).

The deepest sulphide bearing intercept (drillhole S018, 100m south of S039) is a 20 m intersection grading 0.89% Cu, (0.15% ASCu, for a 17% ASCu:Total Cu ratio), 1.19g/t Au and 12.3g/t Ag at an altitude of 2353m amsl, which translates to a true vertical depth of 100m from surface, but approximately 330m below the top of the AP Pit.

In comparison, drillhole S012 at the northern end of the AP Pit, cut a 4m section grading 1.51% Cu (88.8% ASCu:Total Cu ratio) and 6.03g/t Au, at a true vertical depth of 118 m (approximately 200m below the AP Pit top), in strongly oxidised skarn which includes a gossanous vein. Exoskarn in drill hole S012 is also strongly oxidised and mineralised from 60m to 100m depth (>0.75% Cu and >1.0 g/t Au).

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The Empire Mine skarn is overprinted by a series of north-trending anastomosing faults which are represented by gossanous breccias, veins and stockworks up to several metres in width. Herein termed “FeOx breccias”, these structures consist of intensely clay-altered, chalky and brecciated wallrock (exoskarn, endoskarn and porphyry) cemented by siliceous limonite and goethite (sulphide derived iron-oxide?). Brecciation clearly post-dates skarnification. The breccias appear to have been affected by advanced argillic alteration (clay+pyrite+silica), and have open-space textures, both of which are strong epithermal signatures. These FeOx breccias are auriferous and represent a late stage, epithermal, gold-rich, hydrothermal regime overprinted upon the skarn. The copper in these epithermal structures may have been scavenged, in-part, from the pre-existing skarn.

The highest grade mineralisation at the Empire Mine occurs as a poorly defined, steeply dipping, locally iron-rich, 5m to 15m thick, copper-gold zone located within and below the large body of skarn-hosted disseminated copper mineralisation. Drill core examined by the SRK ES suggests that the skarn in this high-grade zone has been sheared, brecciated and overprinted with iron oxides (FeOx brecciation). This structure may have been active throughout skarn formation, and may have been the major pathway for both the skarn-aged copper mineralisation and the late-stage auriferous mineralisation. In the deeper levels of the mine, this structure contains lenses and veins of copper-bearing massive sulphide. This higher grade zone forms the bulk of the historical Empire Mine, which has been partially worked for 350m vertically and 900m laterally, Exhibit 15.

The near-surface oxide mineralisation is interpreted to remain open along strike. The higher grade sulphide zone which underlies the oxide zone is open in all directions, and remains virtually unexplored.

Two unexplored mineralised skarn bodies are reported to occur northwest of the main Empire skarn. The first has been traced in outcrop as a 20m by 50m wide zone, trending west for approximately 450m from a point approximately 150m north of the Empire skarn to the edge of the property. Drillhole S028, located halfway between the two skarns, encountered 23m grading 1.24% Cu (95% ASCu: Total Cu ratio) at a true depth of 25m, suggesting that the two bodies may be connected and form a single mass. Thus the mineralised Empire skarn may have a strike length of more than 1700m on the property.

The second skarn occurs at the White Knob Mine, approximately 500m northwest of the property boundary. The White Knob skarn outcrops over a 150m by 15m area. The SRK has not examined these two skarns, nor have they seen the geochemical data (if any exist) on either of them.

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Exhibit 16: Cross Section of the Empire Mine Looking West Illustrating the Interpreted Mineralisation Controlling Structures

Source: Phoenix Global Ming Ltd

Mining It is currently planned to use a simple truck and shovel open pit mining operation using two shovels and seven haul trucks. It is planned to use contract miners initially, which is one of the reasons that the capital expenditures are only US$41M.

Metallurgy Presuming that the heap leach option is chosen, a simple crushing operation followed by stacker conveyors to the heap is planned. This will be followed by a heap leach and electro winning plant.

Royalties Apart from the 2.5% royalty payable to ExGen, there is a further 2.5% royalty payable to the claim owners, Honolulu/Mackay. Under the current agreement, Phoenix could buy back 1% of this royalty for £1.2M.

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Exhibit 17: The Cossack Adit

Source: BHC

Exhibit 18: The 2017-18 Work Programme

Activity 2017 2018 June July Aug Sept Oct Nov Dec Jan Feb Mar

1 Upgrade JORC Open Pit Oxide Resource

QAQC Programme, Geologist, Helper, Survey Crew

Infill Confirmation Drilling on Oxide Resource Ongoing Geological Modelling

Upgrade NI 43-101 Resources & Reserves Study 2 Open Pit Metallurgical Test Work Sample Collection of Ore Types (PQ Drill Holes) Bottle Roll & Column Tests

Final Metallurgical Report 3 Preliminary Feasibility Study (PFS)

Open Pit Design & Optimisation

Heap Leach Pad Location Options

Pad & Process Plant Design

Environmental Study

Pre Feasibility Study Report Preparation 4 Evaluation of Sulphide Resource Potential Below the Oxide Resource

Open Access to 300, 700 & 1100 Adits

Mapping, Sampling, Drilling & Assaying in Old Workings

Independent Technical Report

Source: Phoenix Global Ming Ltd

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Potential Upside There are several areas of potential upside. 1. Recoveries There is the potential for significantly better recoveries than the 65% used in the BHC model. With heap leaching, the normal practise is to continue to add acid to the heap until the tenor of the solution makes it uneconomic to continue. Other similar operations have achieved recoveries as high as 90% over several years and we believe that the 65% recovery figure used in the model is very conservative.

2. Zinc The second area of upside is the possible extraction of zinc. The early metallurgical test work indicated that that the zinc goes into solution along with the copper and it would only take a small solvent extraction plant and a few electro-winning cells to produce zinc cathodes.

3. Resources A further area of upside is the oxide ore reserves and resources are expected to increase once the planned exploration programme commences There is also very good potential for additional oxide and sulphide reserves along strike and down dip, which will be assessed in parallel with the development of the heap leach project.

4. Gold The current plan calls for one large heap as the area around the mine does not lend itself to multiple heaps. Consequently, once the heap is leached out, it cannot be quickly converted to an alkaline leach so that the gold can be extracted with cyanide. Hence, any gold extraction would have to come at the end of the copper cycle which we forecast to be at least ten years away.

5 Agitated Tank Leaching Phoenix has also prepared a plan to use agitated tank leaching. Whilst this plan has a higher capital requirement, it does come with some advantages. The two biggest advantages are that the recovery for copper would be 90% as to around a conservative 65% in the heap leach model and the gold and silver could be extracted immediately after the copper. This gives the project a much reduced cash cost for copper, US$1.00/lb by our reckoning. This plan calls for a mining rate of 1.5Mtpa, a marginally higher strip ratio of 1.75:1 and a much shorter mine life of 7 years. This is due to the higher grade ore processed in the agitated tank leach of 0.75% copper versus the 0.45% copper processed in the heap leach. However, based on the known resources, there will be an additional 4 year mine life treating lower grade ores. Typically this will be around 0.27% copper, 0.21g/t gold and 8g/t silver. Again this assumes that no exploration successes. Finally, the residue from the gold leach will be very close to the ideal pH for copper flotation. All Phoenix would need to do, is add a reagent to destroy any residual cyanide, and add a flotation circuit. All the non-acid soluble copper minerals could then be recovered by flotation, boasting overall copper recoveries. However, it actually gives a lower net present value.

6 Tax rates In the USA there is much talk that the President will review corporate tax rates and make significant changes, introducing lower corporate tax rates. Consequently, we have run the model to see the impact of a reduction to 25% in the combined federal and state tax rate.

We have valued these two options. Option one is the 42% tax option giving the NPV(8%) of US$36.3M and the IRR of 29%. All figures quoted are after taxes, unfinanced, and include royalties. The lower tax option case of a 10 year mine life give an NPV(8%) of US$49M and an internal rate of return 34.6%.

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The reason for the lower net present value for the tank agitated option, despite its higher recoveries and gold extraction immediately after the copper, is that is has a significantly higher capital cost and because it is a larger and more complicated plant, it does not come into production until a year after the proposed start-up of the heap leach option.

The key point with the agitated tank leach scenario is that there is very little upside from increased recoveries.

The Brandon Hill Preference 1. Brandon Hill prefers the heap leach option. The reasons for this are that: 2. It has a lower initial capital cost 3. It can be brought into production quicker 4. It does not preclude a move to an agitated tank leach after several years of heap leaching. At that point in time the material that had been heap leached could be retreated through the agitated leach to extract the precious metals and any residual copper. 5. The only real disadvantages of utilising an agitated tank leach from day one is that it requires a crushing and grinding circuit, which needs higher upfront capex. Assuming a transfer from oxide processing to sulphide processing occurs sometime in the future, it would only require the addition of a simple flotation circuit which would be a relatively low cost conversion.

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The Copper Market

Copper is a known for its ductility, malleability, alloying, and resistance to corrosion, strength and conductive properties and has been used for over 10,000 years to produce a wide variety of products.

Copper is usually shipped to fabricators as cathode, wire rod, billet, cake (slab) or ingot. Through a variety of manufacturing processes, fabricators form wire, rod, tube sheet, plate, strip, castings, powder and other shapes. These copper and copper-alloyed products are then shipped onward for final manufacturing or distribution. Copper is often alloyed with other metals such as aluminium or tin (to form bronze), zinc (to form brass), or nickel (to form cupronickel), giving it different characteristics and thereby enabling its use in a wide range of specialised applications including:  Construction;  Electrical;  Electronics and communications;  Transportation;  Industrial machinery and equipment; and  Consumer and general products.

Given the wide applications of copper and its requirement throughout industrial applications it is widely viewed are the bell weather commodity for economic growth and industrialisation. Since 1900 when world mine production was less than 500,000 tonnes it has grown by 3.2% per annum to 19.1M in 2015. Also, notably SXEW technologies only begun to emerge in the late 1960’s and now produce 3.9m tonnes of total mine production.

The growth of copper supply has been required to meet the industrialisation of the first world countries initially and more recently emerging economies such as China and India. The Asian region now consumes over 63% as reported in the ICSG world copper fact book in 2016. Moreover, given the versatility of copper, it continues to be relevant to new and future technological trends. For example, electric cars such as a the Tesla Model S uses three times as much copper wiring than an internal combustion engine vehicle.

Copper Production and Usage

The ISGC world copper fact book reported that copper mine production was 19.1M tonnes in 2015 and refined production totalled 22.9M including 3.9M of secondary refined production. World refined usage was 23M tonnes indicating a nominal deficit. The largest miners of copper are from Chile, China, Peru and the USA. The largest mines in the world are Escondida, Chile (BHP majority owned – produced circa 979,000 tonnes in 2016), Grasberg, Indonesia (Freeport-McMoRan majority owned produced 1.063M tonnes in 2016) and Morenci, USA (Freeport-McMoRan majority owned produced 848,000 tonnes in 2016), Buenavista del Cobre Grupo in Mexico (Grupo Mexico produced 1.054M tonnes in 2016) and Collahuasi in Chile (majority owned by Anglo American and Glencore produced approximately 506,500 tonnes in 2016). These mines produce copper through a combination of concentrates and cathode via the SXEW processes. The biggest risk to copper supply is jurisdiction risk and more specifically industrial and political relationships. In recent months some of the largest mining companies and their copper mines have encountered a number of supply disruptions due to disputes with both government and industrial relations. Notably Escondida, Grasberg and Cerro Verde were subject to extensive labour strikes in early 2017, and Grasberg has problems with the Indonesian Government that has forced either a material reduction in supply or complete shutdown. Further, there is talk of a widespread strike by miners, of a major strike in Peru, the second largest producer of copper globally. Freeport McMoRan are currently in dispute with the government in Indonesia following the introduction of a ban on copper concentrate exports in January 2017 that affected their operations at Grasberg. Freeport initially stopped production of copper and have subsequently reduced a substantial amount of capacity at the mine whilst they negotiate for the right to resume exporting copper concentrate. Moreover, both parties are now in dispute about a new mining licence regime that the government is seeking to implement that potentially gives scope for incumbent foreign owners of producing mines being required to dispose of material stakes in the business to native businesses. This process is unlikely to be solved by the end of 2017 although recent press suggests that constructive discussions are now taking place, but if Freeport decide not to develop the underground, it will have a significant impact on the price of copper.

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Copper Price

The copper prices uses in our valuation were derived from consensus forecasts and are:

Exhibit 19: Forecast Copper Prices (USc/lb)

2019 2020 2021 2022 2023 2024 LTerm

269 270 300 305 300 300 300

Source: BHC

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Valuation Background Phoenix Global has been valued on the basis of its advanced Empire Mine project and we have applied a number of scenarios that will assist with understanding the value inherent in this project.

Valuation Technique We have valued the Empire Mine Project using Net Present Values. Our valuation is based only on the existing resource. We have modelled the operation on a quarterly basis for the proposed life of mine as determined by the Phoenix Global mining plan using a heap leach scenario. The modelling has not assumed that a zinc concentrate is produced although there is existing metallurgical test work that shows that the heap leaching will put zinc into solution and can easily be recovered. We have not assumed that there are any tax losses and used the full USA company tax rate of 35% plus a 7% Idaho state tax.

The proposed start-up date is in the December quarter 2019 and initial sales in the March quarter 2020. Given that we are currently at the end of the second quarter of 2017, we believe that this schedule is realistic. The copper price quoted in the table below represents the average copper price over the life of the mine. The current mine plan calls for a ten year mine life. As this is a heap leach operation, we have assumed that copper production and sales lag the mining schedule by 3 months.

The assumptions used are: Copper Price USc296/lb Copper grade 0.54% Mining Rate 2Mtpa Strip ratio 1.35:1 Discount rate 8% Mining cost ore US$5.05/t Processing cost US$5.50/t G&A costs US$1.50/t Opex(per lb/Cu) US$1.65 Recovery 65% NSR Royalty 5.0% Tax 42% Initial Capex US$41M Sustaining capex US$0.2M pa Net present value US$36.3M

Brandon Hill Capital has used internally derived copper prices, based on the Bloomberg consensus in our modelling. Under this scenario, we have looked at a ten year mine life which using an 8% discount rate, unfinanced, yields a net present value of US$36.3M and an internal rate of return of 29% for 100% of the project. These figures are measured from the time exploration commenced in June 2017. If the time period is changed to when construction starts which is assumed to be early 2018 then the net present value becomes US$40.5 and the internal rate of return is 31%. The operating costs on a per pound of copper basis have risen a little as we have assumed that the last years on the mine the grade will drop to 0.4% copper.

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Sensitivities

Exhibit 20: NPV Sensitives to Recovery and Copper Price

NPV Sensitivity to Recovery NPV Sensitivity to Copper Price 80.0 60 70.0 50 60.0 40 50.0 40.0 30 30.0 20 20.0 10 10.0 0.0 0 61% 65% 70% 80%

Source: Brandon Hill Peer Group Review Brandon Hill Capital has completed a peer comparison against three other copper heap/dump leach copper companies. These are the Kounrad mine, owned and operated by Central Asia Metals in Kazakhstan, the Wetar mine, owned and operated by Finders Resources and located in Indonesia, and the BKM mine in Kalimantan, Indonesia, owned and operated by Asiamet.

Exhibit 21: Peer Group Comparisons

Phoenix Global Central Asia Metals Asiamet Finders Resources Country USA Kazakhstan Indonesia Indonesia Ticker CAML AIM ARS AIM FUN ASX Market Cap (£M) 9.0 261.6 34.7 80.4 EV (£M) 4.5 297.8 33.3 172.9

Stage Exploration Producing Feasibility Producing

Mine Empire Kounrad BKM in Kaimantan Wetar Mine type OP OP OP

Reserves/Resources Proven & Probable [email protected]% Measured [email protected]% [email protected]% Indicated [email protected]% [email protected]% [email protected]% [email protected]% Inferred [email protected]% [email protected]% [email protected]% [email protected]% Total-Tonnes/grade [email protected]% [email protected]% [email protected]% [email protected]% Copper Kt 68 617 403 210

Mkt Cap/Contained Copper (£/t) 132 424 86 383 EV/Contained Copper (£/t) 66 483 83 823

Mine life 6 years +12 years 8 years 7 years Strip ratio 1.35:1 NA 1.2:1 <1:1 Production 7kt cathodes 14kt cathodes 25kt cathodes 28kt cathodes

Recovery 65% 35~42% 85% 75% Capex US$45M US$90M US$164M US$165M C1 cash cost, per lb US$1.48 US$0.43 US$1.28 US$1.05 Total Cost, per lb US$1.73 US$1.06 US$1.49

Capital included both the Resources not reserves Comments stage 1 & 2 expansions

0.2%Cu cut-off used

Source: Brandon Hill

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Central Asia Metals Central Asia Metals is the sole owner and operator of the solvent extraction–electrowinning (SX-EW) copper recovery plant at the Kounrad mine site, near the city of Balkhash in central Kazakhstan. This facility recovers copper from waste dumps (Eastern and Western dumps) that originated from the Kounrad open-pit copper mine. Sitting on the surface, these dumps accumulated from open-pit mining operations carried out between 1936 and 2005. Over time, oxides and low-grade sulphides of copper formed a significant tonnage deposited at the mine site. The SX-EW processing plant produces copper cathode, and the metal is delivered from the Kounrad site by rail and sea to the end customers, predominantly in Turkey. Apart from the lower wages in Kazakhstan, the operation also benefits from very low electricity prices. Our resource estimate is based only on the Eastern Dumps as the Western Dumps, whilst containing a significantly higher tonnage, mainly consist of sulphide ore and we doubt whether they will give very good recoveries. This is a mature mine, currently undergoing a second self-funded expansion and has generated sufficient profits for Asia Metals to pay dividends every year since 2012. Asia Metals is also progressing with possible developments at its Copper Bay project in Chile (75% owned) and at Shuak (80% owned) in Kazakhstan. They have also benefitted from an 85% devaluation of the Tenge in 2015.

Asiamet

The BKM deposit is a covellite, chalcocite and chalcopyrite vein style copper mineralized system hosted in sheared sediments and volcanics within an interpreted thrust fault-coupling or ramping zone. It is highly amenable to heap leach processing. Mining will occur sequentially over a number of interim stages out to the final mine design in order to minimize upfront waste movement and maintain an acceptable ore supply. The mine is located in a mountainous jungle terrain at the headwaters of the south flowing Kahayan and Samba rivers in a remote area where no permanent villages exist. The location is isolated and access both to and around the prospect is difficult and imposes certain restrictions on field operations. The acid consumption is likely to be low or negative and therefore there will be no economic limit to leaching and leach times can potentially be extended to achieve higher soluble copper recovery. The leachate chemistry shows no issues for the production of high grade copper metal using the solvent extraction – electrowinning process. This is important as the remote location suggests that the transportation of acid to site would be expensive. The remote location also suggests that the power will be supplied by natural gas and that the operators will need a camp.

Finders Resources The Wetar Copper Project is located on the north central coast of Wetar Island and is part of the Maluku Barat Daya Regency (MBD), Maluku Province of the Republic of Indonesia. Wetar Island is a remote island which supports a total population of around 9,000 people. It can be accessed by boat from a number of ports including Alor, Kisar and Atapupu and by LCT (landing craft). The closest villages to the project, Lurang and Uhak, have a population of around 900 people in total. The mineralogy of the Wetar orebodies consists predominantly of primary and secondary copper sulphides hosted in massive pyrite (70% – 85%). The predominant secondary copper mineral is covellite at Kali Kuning. The Lerokis orebody contains mainly covellite and chalcopyrite. Although the deposit is mainly sulphides, covelite leaches fairly easily and the incremental acid generated for the heaps was 1.2kg acid/kg copper leached. Although located on an island, it uses Surabaya, a major port on Java as a logistics hub.

Size The Empire Mine will be a smaller mine than the others, in part due to it having the smallest ore resources. However, further exploration is planned for the summer of 2017 with an upgrades resource-reserve figure released in late September 2017.

Cash costs Central Asia Metals benefits from carrying no mining costs and therefore has no strip ratio, since it is extracting copper from old low grade dumps. This is why its cash costs are the lowest at US$0.43/lb. But, SX/EW copper production is one of the lowest cost methods of producing copper and this is reflected in all the mines under consideration as comparatives, have cash costs under US$1.50/lb making them very competitive. In addition, we are not overly concerned with recoveries. Whilst we are unfamiliar with the style of heaps at the Indonesian operations, Central Asia Metals leached the actual dumps, it does not construct its own heaps and therefore has to take what comes and continues the irrigation process until it

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becomes uneconomic. Further, because it irrigates the dumps that exist, rather than crushing the freshly mined rock prior to building its heaps, it is probably operating with a less than optimum size distribution, hence the lower recoveries. At the Empire Mine, it is currently proposed to have one large heap due to the confines of the leases. This suggests that irrigation will continue for years, not the typical 30 days used in test work and hence we expect significantly higher recoveries than 65% over time.

Political Risk We have looked at the Frazer Institute’s rankings to determine the attractiveness of the various jurisdictions under comparison. In the Investment Attractive Index, Kazakhstan actually rates the highest at 20 out of 109. Indonesia and Idaho rate 49 and 50. It is in the policy perception index that the major differences occur. Idaho comes in at 19, whereas Kazakhstan is 50 and Indonesia 91. However, we believe that if any issues actually were taken to court, the chances of a fair hearing would be far higher in Idaho than the either Kazakhstan or Indonesia.

In another survey, by Transparency International, which measures how corrupt nations are in its Corruption Perception Index 2016, the following result was obtained:

USA 18 Indonesia 90 Kazakhstan 131 This was measured across 176 different countries.

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Investment Risks

Copper Price There is a risk relating to the copper price. Whilst we see the average cash cost of production at US$1.69/lb, and initially US$1.33/lb when the higher grade ore is being processed, this is well below the existing copper price. We also believe that these cash costs are well below any copper price that ensures a sustainable industry.

Geological The geological risk is particularly low, the project already having a JORC 2012 Compliant resource. Earthquakes probably pose the biggest geological problem. In 1983 there was an earthquake recording 6.9 on the Richter scale just north of Mackay. We are unaware of any other major earthquakes, but there have been numerous earthquakes over the past year. These tend to be significantly less powerful and typically with deep epicentres.

Political & Environmental Idaho is a pro-mining state at all levels of the political spectrum. The habitat of the sage-grouse, a protected bird, has been known to hinder mining applications at lower altitudes. The Empire Mine, located at an altitude of around 2,000m is unlikely to be impacted by this. Historically, salmon fishing and rights have been an issue for miners in Idaho, but salmon are only found in the Salmon River drainage. The Empire Mine is located in the Big Lost River drainage area, and approximately 25 to 30 miles south of the Salmon River drainage area.

There are numerous open pit mines operating within the state of Idaho. Largely speaking they tend to be phosphate mines, but Midas Gold are developing a new gold project as are Atlanta Gold. Historically, there have been substantial open pit mines operating successfully within the state, most notably the Thompson Creek molybdenum mine which operated from 1983 to 2014.

Funding Funding is always an issue for small mining companies. Following a successful IPO, the future of the company depends upon the drill bit and successfully de-risking the ore resource. Given the historic results, these all outlined in this report, the low political risk and the commodity, copper we believe that funding should not be unduly onerous. Morover, market conditions have improved over the past 12 months as has the copper price. With the Empire Mine located in one of the politically more secure areas of the world, this should not be an insurmountable problem.

Timing Following the successful IPO, we believe that there is no reason why a heap leach SX/EW operation cannot be built and commissioned by the end of 2018.

Operational

Idaho, as indicated above has had a long history of operating mines and we believe that the bulk of the operating team should be able to be recruited within the state. Weather conditions are not too extreme and we foresee no major operational problems.

Technology Heap leach-solvent extraction followed by electro winning has been a well-established technology for more than 6- years, certainly regarding copper applications. We do not envisage any problems here.

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Appendix A – Directors & Management

Marcus Edwards-Jones Non-Executive Chairman B.Acc, MA.

Marcus Edwards-Jones is Managing Director (and co-founder) of Lloyd Edwards-Jones S.A.S, a Paris and Dubai-based finance boutique specialising in selling equities to institutional clients and advising and introducing resources companies to an extensive client base in the UK, Europe, Asia and the Middle East. Prior to founding Lloyd Edwards-Jones S.A.S, Mr. Edwards-Jones held senior positions with Julius Baer, and was head of UK/Continental European equity sales at Credit Lyonnais Securities in London. Mr. Edwards-Jones has significant experience in worldwide institutional capital raisings for UK, Australian & Canadian listed and unlisted companies predominately in the mining and resources sectors. He was, until recently, a non-executive director of AIM listed Noricum Gold Ltd. Mr. Edwards-Jones graduated from Oxford University with an MA in Ancient & Modern History.

Roger Turner Director and Chief Technical Officer ACSM. MSc. MIMM. CEng

Roger is a graduate mining engineer from Camborne School of Mines with a Master’s Degree in economic geology from Leicester University. He has over 45 years’ experience in mining operations around the world. After graduating he worked in engineering and mine management in Canada following which he joined RTZ Technical Services in London. He then ran his own mining consulting practice during which time he was on the Governing Council of the Institution of Mining & Metallurgy. He was the CEO of Nelson Gold Group and was responsible for its TSX listing, financing, construction and commissioning of the Jilau gold mine in Tajikistan. He was one of the two founders of Oxus Gold Plc and was the CEO. He was responsible for listing Oxus on AIM in 2002. More recently he was the Chairman of Minco Plc and CEO of Ovoca Gold Plc both of which are listed on AIM, and was a Director of Anglesey Mining Plc for 9 years. He is one of the two founders of Phoenix.

Dennis Thomas Chief Executive Officer ACMS. FIMM. FGS Euring CEng Dennis is a graduate of Camborne School of Mines. After working in mine production in Europe, Africa and Asia, he established a mining recruitment consultancy based in the UK. Since the mid-1980s, he has specialised in identifying new mining business opportunities around the world worthy of potential investment by carrying out assessments and feasibility studies, negotiating lease agreements, contractual arrangements, establishing new companies, and directing the start-up and development of new projects. He has served as Chief Executive Officer and Executive and Non-Executive Director of a number of UK, North American, Australian and Far East mining companies and is a Non-Executive Director of ExGen Resources Inc. He is one of the two founders of Phoenix.

Richard Wilkins Chief Financial Officer MA. FCA Richard is a graduate of Pembroke College, Oxford University and a Fellow of the Institute of Chartered Accountants in England and Wales. After qualifying as a chartered accountant with Coopers & Lybrand he worked in their London and Cairo offices until moving into private business. He has considerable experience in emerging markets and the natural resources sector having been a founding director of the Zeravshan Gold Co. (Nelson Gold Group - TSX) in Tajikistan in 1994 and a founding shareholder and director of the Oxus Gold Group, which operated in Central Asia from 1996 to 2015 and was listed on the LSE’s AIM market. Mr Wilkins sits on the Advisory Board of Imeon Logistics Group.

Andre Cohen Director B.Ec. MA. M.Phil Andre is CEO (and founder) of Coherent Financial Solutions, a UK based advisory company providing strategic and financing advice to transportation and infrastructure clients. Prior to this, he held senior positions with West LB, where he was Head of Transportation Finance, TNT Ltd, where he was Finance Director, Europe, and Citicorp in London and Australia in investment banking. He has advised on significant debt fund raisings and investment in infrastructure assets for a number of international companies as well as being a non-executive director for a number of companies, listed and private. Mr. Cohen is a graduate of Sydney and Yale Universities in Economics.

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Management

Ryan K. McDermott Konnex CEO/Empire Project Manager BSc Ryan graduated from Idaho State University with a Bachelor of Science degree in Geology and has over 30 years’ experience in mining and mineral exploration for base and precious metals. During his career, he has held various senior positions in the industry including Director of Mining Operations in Idaho and Montana; General Manager; Senior Project Manager in western US and in Alaska. He has worked for SECOR International, Inc; Kinross Gold Corp; Plexus/Sovereign Expl; Kleinfelder West, Inc. Recently he was responsible for permitting a new mine into production in Idaho for GHRMC. Ryan was appointed by Phoenix in March 2017

Martin Houhoulis Empire Mine Chief Geologist BSc

Martin has extensive experience on copper and base metal projects globally. He graduated with a BSc in geology from the Norther Arizona University and has over 30 years of experience. He worked for Resolution Copper Company (RTZ) in Arizona; as Project Manager on the San Cristobel Mine in Bolivia for Summit Mining; Piedras Verdes Copper Project in Mexico and the Morenci Mine in Arizona for Phelps Dodge Corp.

Graham Kelsey Empire Mine Senior Geologist BSc, MSc

Graham is a seasoned field and mine geologist. He graduated with a BSc degree in geology from Washington State University and gained an MSc from Arizona State University. He has 36 years’ experience and an extensive knowledge of the mineralogy of copper terrains, specifically in the large porphyry's of Arizona, USA. He most recently worked as Senior Geologist at Arizona's Pinto Valley Mine. He has worked for Phelps Dodge, Cyprus Minerals, Amoco Minerals and Lac Minerals and Kinross.

Philip Van Angeren Consulting Geologist BSc

Phil graduated with honors from McGill University in Canada in 1977 and has considerable experience throughout North America in base and precious metals exploration and mining. He is especially experienced in the styles of mineralisation found at the Empire Mine, including skarn and associated porphyritic orebodies. He has previously been involved as a consultant at Empire where he worked on planning and implementing drilling programmes and on the geological evaluation of the property.

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Appendix B – Company Structure

Exhibit 22: Empire Mine Ownership

Source: Phoenix Global Ming Ltd

Exhibit 23: Phoenix Organisation Chart

Source: Phoenix Global Ming Ltd

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Peter Rose

Peter has 31 years’ experience in equities as a resources analyst; he has been at Brandon Hill Capital, formerly Fox-Davies Capital for 10 years. Prior to that he spent 11 years with Deutsche Bank in Australia. Prior to this he spent 2 years with Prudential Bache and 6 years with James Capel. Peter's industry experience includes 16 years as a metallurgist, 3 years with De Beers in South Africa and 8 years in the uranium industry, 5 of which were spent at the Ranger Uranium mine. Peter holds a BSc degree in Applied Mineral Science from Leeds University UK and a Bachelor of Commerce from the University of South Africa. Peter is also a member of the Institute of Materials, Mining & Metallurgy and a chartered engineer. +44 (0)203 463 5034 [email protected]

Investment Analyst Certification

All research is issued under the regulatory oversight of Brandon Hill Capital Limited. Each Investment Analyst of Brandon Hill Capital Limited whose name appears as the Author of this Investment Research hereby certifies that the recommendations and opinions expressed in the Investment Research accurately reflect the Investment Analyst’s personal, independent and objective views about any and all of the Designated Investments or Relevant Issuers discussed herein that are within such Investment Analyst’s coverage universe. Brandon Hill Capital Limited provides professional independent research services and all Analysts are free to determine which assignments they accept, and they are free to decline to publish any research notes if their views change.

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Research Disclaimers Research disclosure as of 08 August 2017

Company Name Disclosure

Phoenix Global Mining 1, 2, 7 Investment Research Disclosure Legend: 1. In the past 12 months, Brandon Hill Capital Limited or its affiliates have had corporate finance mandates or managed or co-managed a public offering of the Relevant Issuer’s securities or received compensation for Corporate Finance services from the Relevant Issuer.

2. Brandon Hill Capital Limited expects to receive or intends to seek compensation for Corporate Finance services from this company in the next six months.

3. The Investment Analyst or a member of the Investment Analyst’s household has a long position in the shares or derivatives of the Relevant Issuer.

4. The Investment Analyst or a member of the Investment Analyst’s household has a short position in the shares or derivatives of the Relevant Issuer.

5. As of the month end immediately preceding the date of publication of this report, or the prior month end if publication is within 10 days following a month end, Brandon Hill Capital Limited and / or its affiliates beneficially owned 1% or more of any class of common equity securities of the Relevant Issuer.

6. A senior executive or director of Brandon Hill Capital Limited or a member of his or her household is an officer, director or advisor, board member of the Relevant Issuer and / or one of his subsidiaries.

7. Brandon Hill Capital Limited acts as corporate broker for the Relevant Issuer.

The Investment Analyst who is responsible for the preparation of this Investment Research is employed by Brandon Hill Capital Limited, a securities broker-dealer. The Investment Analyst who is responsible for the preparation of this Investment Research has received (or will receive) compensation linked to the general profits of Brandon Hill Capital Limited.

Research Recommendations Brandon Hill Capital uses a five-tier recommendation system for stocks under coverage:

Buy Recommendation implies that expected total return of at least 15% is expected over 12 months between current and analysts’ target price. Trading Buy Recommendation implies that the analysts’ expected total return over the short term compared against the target price is positive. Hold Recommendation implies that expected total return of between 15% and zero is expected over 12 months between current and analysts’ target price. Trading Sell Recommendation implies that the analysts’ expected total return over the short term compared against the target price is negative. Sell Recommendation implies that expected total return expected over 12 months between current and analysts’ target price is negative.

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Disclaimer: Important Information

This document is not independent and should not be relied on as an impartial or objective assessment of its subject matter. Given the foregoing, this document is deemed to be a marketing communication and as such has not been prepared in accordance with legal requirements designed to promote the independence of investment research and Brandon Hill Capital Limited is not subject to any prohibition on dealing ahead of dissemination of this document as it would be if it were independent investment research.

This document has been issued by Brandon Hill Capital Limited for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectives, financial situation or needs of any specific entity. Brandon Hill Capital Limited and/or connected persons may, from time to time, have positions in, make a market in and/or effect transactions in any investment or related investment mentioned herein and may provide financial services to the issuers of such investments. The information contained herein is based on materials and sources that we believe to be reliable, however, Brandon Hill Capital Limited makes no representation or warranty, either express or implied, in relation to the accuracy, completeness or reliability of the information contained herein. Opinions expressed are our current opinions as of the date appearing on this material only. Any opinions expressed are subject to change without notice and Brandon Hill Capital Limited is under no obligation to update the information contained herein. None of Brandon Hill Capital Limited, its affiliates or employees shall have any liability whatsoever for any indirect or consequential loss or damage arising from any use of this document.

This report has been approved in the UK by Brandon Hill Capital Limited solely for the purposes of section 21 of the Financial Services and Markets Act 2000. In the UK, this report is directed at and is for distribution only to persons who (i) fall within Article 19(1) (persons who have professional experience in matters relating to investments) or Article 49(2) (a) to (d) (high net worth companies, unincorporated associations, etc.) of the Financial Services and Markets Act 2000 (Financial Promotions) Order 2005 (as amended) or (ii) are professional clients or eligible counterparties of Brandon Hill Capital Limited (all such persons together being referred to as “relevant persons”). This report must not be acted on or relied up on by persons in the UK who are not relevant persons.

Neither this report nor any copy of part thereof may be distributed in any other jurisdictions where its distribution may be restricted by law and persons into whose possession this report comes should inform themselves about, and observe any such restrictions. Distribution of this report in any such other jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions.

Investments in general involve some degree of risk, including the risk of capital loss. The services, securities and investments discussed in this document may not be available to nor suitable for all investors. Investors should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor. Past performance is not necessarily a guide to future performance and an investor may not get back the amount originally invested. Where investment is made in currencies other than the investor’s base currency, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Levels and bases for taxation may change. When we comment on AIM or ISDX shares you should be aware that because the rules for those markets are less demanding than the Official List of London Stock Exchange plc, the risks are higher. Furthermore, the marketability of these shares is often restricted.

Brandon Hill Capital Limited and/or its associated companies may from time-to-time provide investment advice or other services to, or solicit such business from, any of the companies referred to in this document. Accordingly, information may be available to Brandon Hill Capital Limited that is not reflected in this material and Brandon Hill Capital Limited may have acted upon or used the information prior to or immediately following its publication. In addition, Brandon Hill Capital Limited, the directors and employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this document and may from time-to-time add or dispose of such interests. Neither the whole nor any part of this material may be duplicated in any form or by any means. Neither should any of this material be redistributed or disclosed to anyone without the prior consent of Brandon Hill Capital Limited. Brandon Hill Capital Limited is authorised and regulated by the Financial Conduct Authority and is a member of the London Stock Exchange.

Brandon Hill Capital Limited may distribute research in reliance on rule 15a-6(a) (2) of the Securities and Exchange Act 1934 to persons that are major US Institutional investors, however, transactions in any securities must be effected through a US registered broker-dealer. Any failure to comply with this restriction may constitute a violation of the relevant country’s laws for which Brandon Hill Capital Limited does not accept any responsibility. By accepting this document you agree that you have read the above disclaimer and to be bound by the foregoing limitations/restrictions. Please note that unless otherwise stated, the share price used in this publication is taken at the close of business for the previous day.

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Phoenix Global Mining Ltd Post-IPO Coverage 08 August 2017

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