Equipment Depot Ghana Limited Equipment Depot Ghana Limited

Report by Equipment Depot Ghana Limited Equipment Depot Ghana Limited

Feasibility Study Report For Exploitation of Gold For Dredge in the bed of the River Baule Diamana East Sector Bougouni , Sikasso Region

October 2013

Report by Equipment Depot Ghana Limited

SUMMARY

Number Contenu Pages I INTRODUCTION 4 II GENERAL 4 2.1 developer 4 2.2 Project Justification 4 2.3 Project Objective 5 2.4 legal framework 5 2.5 Location 5 2.5.1 location 5 2.5.2 relief 7 2.5.3 hydrology 7 2.5.4 Climate - Flora - Fauna 7 2.5.5 population 8 2.5.6 Lines of communication 8 2.5.7 economic activities 8 III GEOLOGICAL SETTING 8 3.1 local Geology 8 IV PREVIOUS WORK 15 V MADE WORKS 17 5.1 Sampling 17 5.2 levy 17 5.3 the Bate 17 5.4 Estimation of reserves 17 VI TECHNICAL STUDY 19 6.1 Operating method 19 6.1.1 dredging 19 6.1.2 the wash 20 VII METHOD OF TREATMENT 21 7.1 Production plan 21 7.2 Equipment List 22 7.3 the Staff 23 7.4 Environmental aspect 23 VIII ECONOMIC STUDY 24 8.1 Market Research 24 8.2 Resort fee 24 8.3 ground 24 8.4 building 24 8.5 displacements 24

Report by Equipment Depot Ghana Limited

8.6 Purchases 25 IX PROJECT COST 25 9.1 Resort fee 25 9.2 Material & Equipment 25 9.3 Transportation and travel 25 9.4 Working capital needs 26 9.5 shopping 26 9.6 Investment Summary 26 9.7 Financing Plan 26 X ELEMENTS OF OPERATING ACCOUNTS 26 10.1 receipts 26 10.2 loads 27 10.2.1 Annual staff costs 27 10.2.2 Taxes 27 10.2.3 Supplies and external services work 28 10.2.4 Charges Summary 28 10.2.5 Depreciation and Amortization 28 10.2.6 Management fees 29 10.2.7 Transportation and travel 29 10.2.8 Table of profit budgets 29 XI FINANCIAL AND ECONOMIC ANALYSIS 29 Internal rate of return 30 XII SENSITIVITY ANALYSIS 30 XIII CONCLUSION 32 Principal technical economic data 32 references publications 33 ANNEXES 34

Report by Equipment Depot Ghana Limited

I - INTRODUCTION

In the implementation of its various development policies and strategies, the Government of Mali encourages private sector initiatives. It is in this perspective that the company Edg Ltd has decided to develop and implement a Gold dredge mining project in Bindorobougou area. Bougouni, Sikasso Region

II - GENERAL:

2.1- Developer:

The promoter of this project is the company EDG Ltd. founded September 7, 2011 pursuant to a deed by the Master Study Amadou Diallo, Bamako, the main shareholders are:

1) - Mr. FRANCIOSI MATTEO, Manager of the Italian company, born July 11, 1973 in VERONA (VR), Passport Holder No. YA3371475 issued March 15, 2012 in Italy, Remaining in Sotuba-ACI near Dry Kledou

2) - Miss Adizata Mahamane Toure teacher, born June 9, 1987 at Bamba (Gao) residing at Sotuba-ACI near the 3rd bridge Bamako, Mali passport holder No. B0351910 issued in Bamako on 16/08/2010.

The company EDG Ltd. aims among others in Mali and abroad research, exploitation and mining, selling, buying mining resources, transit and transportation, importation and export of mining equipment and product chemical substance, and generally, all operations related directly or indirectly to the above purpose.

The registered office of the Company is at Bamako Sotuba-ACI near Kle dou Dry. Its registered capital is one million CFA francs.

2.2- Justification of the Project:

The project aims for gold mining dredge into the thick bed of the river Diamana Baule- East sector, Circle of Bougouni, Sikasso Region.

Report by Equipment Depot Ghana Limited

It is part of government policy development of the mining sector in Mali by the revival of the private sector. Indeed, the current operating techniques using dredges are well mastered. It should also be noted that mining can be done without upheaval of the ecosystem. Thus it should be noted that respect for the environment is a priority.

The levels obtained during the exploration work conducted by geologists of the company are quite significant and encouraging. Thus EDG Ltd. intends to seize this business opportunity and is willing to invest in a gold dredging operation phase in the explored area.

2.3- Project objectives:

The goal of the project is to undertake mining operations in areas identified during exploration work (see geological report) to contribute a part in promoting the private sector and employment and secondly to generate income allowing the developer to meet its expenses,

The project could well be a contribution to the national economy.

2.4- Legal Framework:

So the company EDG SARL be ne fie of an exploration license issued by the National Directorate of Geology and Mines (DNGM) under the number: No. 0002555 / DNGM of 5 November 2013.

2.5 - Location

2.5.1 - Location

On an area of approximately 10 km², the scope of Diamana East (map sheet Bougouni Circle of Bougouni, Sikasso Region) is located in the rural town of Sido

It is defined by points A, B, C and D whose coordinates are as follows:

Report by Equipment Depot Ghana Limited

POINTS COORDINATES Latitude (Nord) Longitude (Ouest) A 11°42’51’’N 07°08’53’’W B 11°42’48’’N 07°08’59’’W C 11°37’29’’N 07°14’22’’W D 11°37’30’’N 07°14’29’’W

Fig 1:

Report by Equipment Depot Ghana Limited

Fond Topographique du Mali

Designed and published by the Geographical Service of the AO 1956 1st edition: 1956 reprint July 1960.

Report by Equipment Depot Ghana Limited

2.5.2 Relief:

The area on the Bougouni sheet is characterized by a plain dotted with mounds and witness lateritic plateaus with altitudes not exceeding 350m. The vertical drop between 30 and 40 m.

The terrain is generally composed of gently sloping plateaus, generally covered by lateritic cuirasses to above which rise in places of outliers.

River valleys are poorly collected, except in the sedimentary cover.

2.5.3 Hydrology:

The river system on the Bougouni sheet consists essentially of Baoule River and the temporary rivers that connect the Baule. Baoule River is a river wide enough (more than 100m wide in places) with depths ranging from meter to over 11m. It is often cluttered with dead tree trunk but navigable and suitable for dredging.

2.5.4 Climate -Flore- Wildlife:

The climate is of Sudanese type, characterized by a dry season and a rainy season. The dry season has two periods:

- One dry and cool from November to February, is characterized by temperatures falling between day (30 °) and night (10-16 °);

- Another hot and dry from March to May, is experiencing higher temperatures (35-45 ° C) with less variation.

The rainy season lasts from June to October and knows lulls that can last several days. The average annual rainfall of the last decade is between 800 mm and 1000 mm from 1200 to 1500 against previous years.

The vegetation is made by a few boiseuse savannah. It is denser and is observed throughout the river.

Fruit trees are seen goshawks villages and orchards. Savannah is pretty grassy but the tall grasses are the subject of burns during the dry season.

Gardening produces tomatoes, potatoes and green beans etc. Wildlife is almost non-existent around the Bougouni area. By cons, in areas difficult to access, particularly in the North East are still some wild animals (monkeys, warthogs, deer).

The vegetation is savannah type or wild grasses are dominated by large trees such as baobab, locust bean, shea, kapok, Cai citron and tamarind.

2.5.3 Population:

Report by Equipment Depot Ghana Limited

The population is dominated by the Malinke group engaged in farming and market gardening after the rainy season.

At this traditional population was added Peuhl, Mossi, Bobo and Dogon Sarakolés practicing agriculture, livestock, fishing, hunting, and gold panning.

2.5.4 Means of communication:

Administratively, the work area is attached to the Sikasso region of Bougouni.

It is accessed through Bamako - Sido (N7) and Sido -N'tinkol through Kodiougouni up Diamana (laterite road) in poor condition during the rainy season.

2.5.5 Economic Activities

All administrative activity is chapautée by the city of Bougouni. As for trade and handicrafts, they are linked to agriculture, which is a major source of revenue, with gold panning which is a traditional activity. Apart from industrial cotton cultivation, crops are often food: corn, millet, sorghum, cassava, yams; sweet potatoes, cashew nuts, oranges, bananas, mangoes. Livestock (cattle, sheep, goats, and avian) is a traditional activity. Farm products are to be sold in markets in villages and towns.

III- GEOLOGICAL SETTING

3.1 Local Geology

The permit is located in the Birimian volcano-dominated sequence. Because of the strong lateritization and scarcity of outcrops, the geology of the area is known through data interpretation of airborne geophysics. The geological map was updated by subsurface workings and drill holes that showed the saprolite.

The area is dominated by sedimentary formations in the west. In the eastern part, are volcano-sedimentary formations associated with an intrusive granitoid pre-syn-tectonics tectonic origin. The southwestern part of the permit is traversed by a series of shear direction N30 °.

Local geology reveals metasediments associated with granitoid intrusives.

Report by Equipment Depot Ghana Limited

The mineralization is associated with shears zones manifesting in contact granitoids and sediments.

The Archean outcrops in the following areas:

• southern leaves Manankoro, Kadiana, Kadiolo stuck to Ivory Coast

• the corridor of deformation of the accident Banifing (N140 °), which is the northern extension of the Sassandra accident in Ivory Coast

It is dominated by a set of gneissic rocks: granite gneiss, and metamorphic rocks (amphibolites and ultrabasic). The direction of the foliation is generally NS to NNE and dips to the east.

In addition to these metamorphic rocks are distinguished:

• biotite granite, fine grain texture oriented to

• biotite granite to medium grained texture e quante (granite Diourkasso)

• laminate massive Touban composed of gabbro, wherlite of serpentinized dunite of, and pyroxenite.

The contact area between the gneisses and Proterozoic paleo-training is highlighted by a strong magnetic anomaly (Az: 120 ° 100a) which probably coincides with the same fault zone management immediately south of a band of volcanic pale oprotore zoï ques.

The Birimian of southern Mali is dominated by four volcano-sedimentary belts (tholeiitic units andesitic and rhyodacitic) oriented NNW and NNE, it are:

• Belt Yanfolila (Az: N330 ° NS) composed of basic volcanics, these formations are located north of Kangaba in Kankan Siguiri basin (flysch-type sediments, felsic volcanic pyroclastic)

• East of Se lingue dam, and around Filamana in Bougouni Kekoro-basin (shale units, sandy shales and / or white with alternating tuffaceous greywacke and sandstone), in probably prolonged in Co te d'Ivoire.

It should be noted that Western Se lingue dam there is a type of unit Tarkwaian dominated by conglomerates polyge nitiques granite pebbles, volcanic and sedimentary rocks.

• Belt Massigui located west of the fault of Banifing (Az: NS) consists of rhyodacites porphyry, basalt breccias and conglomerates. It is covered by the Ne oprote rozique north and cut by accident Banifing.

• Belt-Kadiana Manankoro, east of the fault of Banifing (40 ° N) in faulted contact with Archean gneissic presumed outcropping in the SW corner of Kadiana slip. It is

Report by Equipment Depot Ghana Limited indicated by the presence of hexalatifs sediments and strong magnetic anomaly in the area of contact with the Archean.

• Belt Syama (Az: 200 °) is a volcanic belt (width: 1-3 km) wedged between Tarkwaian (clastic sedimentary units in conglomeratic single phase) to the east and volcano- sedimentary west. This belt characterized by the accident direction N 40 ° locates in the western part of the Kadiana sheet, the NW corner of the Kadiolo sheet. A Bananso; the band is divided into two segments to extend north to Massigui and south to Co te d'Ivoire.

Belts Massigui, Kadiana-Manankoro and Syama are related to basin Bagoe formed of sandstone, quartzite schist greywacke with intercalated meta basalts altered porphyry and often ferruginous shales. To the east of the fault of Banifing, there are several granitic facies which are:

• Granites Fakola: fine-grained biotite medium

• Granites Sanso leucocratic roses

• Granites Nangalasso: porphyritic biotite

• Grano-diorites Ze re kore

• diorites Sadioula, Pankoussa, Koue , Siebe and Finkolo norites of Zoua

Wrinkle Kolondie ba between the Bagoe Basin Basin Bougouni-Kekoro is essentially composed of:

• biotite granite texture oriented mantle-derived syn- to ante-tectonic granites muscovite,

• dykes spodumene pegmatites

• hornblende granites

• post-tectonic granites with K-feldspar Kekoro

• hornblende diorite

Report by Equipment Depot Ghana Limited

Fig : 2

Map: volcanic belts, sedimentary basins and granitic wrinkles paleo Proterozoic Southern Mali sector

Geological Map of Mali. 1/200 000 Massigui published by the Institute National Geographic IGNParis 1964- authorization No 380 / GNCT.

Report by Equipment Depot Ghana Limited

Fig : 3

Zone du permis de Diamana-Est

Extract of the geological map of South Mali PASTM 1986.

Légende des cartes

Report by Equipment Depot Ghana Limited

PREVIOUS WORK IV

The area has been the subject of several previous studies. The work done at the regional level include:

- In 1964, the Soviet SONAREM and assistance undertook an aeromagnetic survey program for the entire southern part of Mali and an alluvial prospecting campaign for the recognition of gold and diamond potential of Bagoe and its tributaries. This work has resulted in the detection of many gold gravel pockets. - From 1972 to 1974, BRGM carried out on behalf of Mali geological and geochemical exploration research aimed mineralization related to volcano-sedimentary formations Birimian. This survey revealed geochemical anomalies including those of Cu, Zn and Mo in the area of the accident Banifing. During this project, the BRGM established a geological map and mineralization indices of the area to 1:50 000.

- From 1980 to 1990, the project has begun Bagoe Gold mining inventory, geochemical prospecting and geological mapping of the entire area. This work led to the discovery of many clues Au, Cu, Mo, Ni, Cr, etc. the most interesting of which is where a Syama gold mine. Now the project Bagoe also conducted geological mapping and mineral clues to scale 1/200 000.

The work carried out locally included:

- In June 1992 - January 1996: BHP Minerals has made in the area of the Yanfolila area (4750 km²) of airborne geophysical survey (magnetic and radiometric), photo interpretation of 1:50 000, BLEG geochemical surveys and ground mesh 1000 x 1000 m for the determination of gold and silver and multi-element. This work allowed the identification of major geological structures of the permit, the inventory of panning for gold, and the discovery of several geochemical anomalies located in the prospect Gouela, IA Komana Komana and II;

Fig : 4

Report by Equipment Depot Ghana Limited

Carte Géochimique Carte publie e par : le Ministe re des Mines, de l'Energie et de l'Eau, avec l'appui

Technical BRGM-MAPS Geosystems group and the financial support of the European Union, as part of EDF project No. 7 ACP MLI-117 SYSMIN, 2006.

Report by Equipment Depot Ghana Limited

V WORK PERFORMED

To evaluate the potential or gold prospects, field survey work and sampling in the bed of the river Baule has been made in the Diamana East area during the period 1 to October 05, 2013.

5.1 Sampling: Following the reconnaissance mission a work program has been developed and was executed. The work consisted of sampling in the thick bed and on the banks of rivers and along the profiles at the slower areas of water flow considered potential area promoting the sedimentation of heavy minerals (such as gold). This sampling was followed by gravity concentration manually panned samples. A total of 150 samples were taken. 5.2 Collection At each sampling point set by GPS, the boat stops. Divers then down into the water, and using hoes and buckets collect 40-50 kg of gravel. Gravel is subjected to manual panned by scrubbers. 5.3 Bate The resulting concentrate is again washed and purified to finally put in the plastic bag which are mentioned point coordinates. Some difficulties were encountered during the execution of works which are: - The too deep in some places compared to the means employed; - The force of the water flow in some areas; - The need of time because the allotted time was not long enough for the optimum sample collection. All collected samples were sent to the laboratory (SGS-Bamako) to analyze their gold grades. (see Table ... Geological Report)

5.4 Reserves Estimate To evaluate the gold potential; Field survey work and sampling in the bed of the river Baule has been made in the Diamana East areaA total of 150 samples were taken and analyzed (See attached table)

Report by Equipment Depot Ghana Limited

Fig: 5 Points levies Geochemical map

To evaluate the potential or gold prospects, field survey work and sampling in the bed of the river Baule has been made in the Diamana East area during the period 1 to October 05, 2013.

Report by Equipment Depot Ghana Limited

5.4 Reserves Estimate

To evaluate the gold potential; Field survey work and sampling in the bed of the river Baule has been made in the Diamana East area. A total of 150 samples were taken and analyzed. (See attached table)

Fig: 5 Points levies

Geochemical map

Map published by the Ministry of Mines, Energy and Water, with the technical support of BRGM-MAPS Geosystems group and the financial support of the European Union, as part of EDF project No. 7 ACP MLI-117 SYSMIN

The reserve estimate was made taking as average width of the riverbed 100m for 80% of river length is 26 km following the water court. The volume of gold silt will be: 26,000 x 0.5 x 0.8 x 100 = 1,040,000,000 m3. With an average grade of 1.5 g / m3, the estimated reserves will be of the order of: 1.5 g x = 1,040,000,000 1,560,000,000 g is. 1t 1560 kg of gold. 1t is 560 kg.

VI - TECHNICAL STUDY

Report by Equipment Depot Ghana Limited

6.1- Operating Method:

The company EDG Ltd. proposes from the first quarter of the year 1 to obtain a business license in order to proceed with the operation of alluvial gold in a portion of the river bed by the Baoulé through suction dredgers and ore treatment with vibrating screens.

The technology used for the exploitation of gold as part of this project is kind of Ellicott Dredge. The simplicity or rusticity, materials and the processing method used, associated with gold particles recovery rates larger than 60 μ will maximize the effectiveness of these dredges, provided that the average content gravel is of the order of 1.5 kg / m3.

This type of drag that ranks in the range of gold-washing tool that does not require great efforts of labor in terms of diving and manual processing of the pre- concentrate.

The company that has the appropriate equipment proposes to work rotating six hours a team of five workers.

For this, a team of divers will be used in case of problems at the bottom of the river. Given the hydrographic conditions of the river, it is programmed to work only six months a year (from late October to late April).

6.1.1 - Dredging:

• The method is to suck the paydirt via a hose pipe 8 inches in diameter whose head is manipulated by a diver.

• Gravel + water mixture passes over an inclined sluice whose arrangement that heavy gold accumulates at the bottom of transverse channels and lighter elements or large, are returning to the river caused by water that was pumped along the auriferous gravels.

• Gravel retained by the sluice are processed to extract the gold by precipitation.

6.1.2 - Washing:

• The paid-in frémie gravel mixed with water using a suction pump and driving back. • The whole gravel + water passes through a set of different diameters of circular sieve.

Report by Equipment Depot Ghana Limited

• The coarse gold is recovered in the refusal at each sieve and fine gold is recovered by mercury amalgamation in the passing of the last of the finest sieve. The portion of the pulp with a screen to another is based on the principle of gravity. The screens are mounted on each of the other larger diameter to the smaller. A crusher ensures the reduction of the size of the particles contained in the ores. Monitoring the laundry is provided by:

• 2 operators: one (1) officer is assigned to the crusher and one (1) driver loader

Photo 1:

VII - TREATMENT METHOD:

• Approximately 100 to 120 kg of gravel were taken every 2 hours and then dredge recovered in bowls and buckets and made by a motor boat on the banks. • The gravels are then passed in the first place on different mesh sieve May to January mm coarse gold grains.

• To retrieve concentrated accumulated by the sluice, remove the riffles and carpets to flush concentrates in bowls. This frequency range of1 to 2 hours (depending on experience), it provides better recovery of fine gold particles.

Report by Equipment Depot Ghana Limited

• After harvesting these basins are brought to dredge the bank where the concentrates are passed to the Brazilian sieve 5 mm, 2 mm and 1 mm to recover the gold grains.

• The 5 mm sieve residue of 2 mm were thrown the sieve 1 mm is kept with the remainder of the concentrate is washed and the gourd (pan local miners) to get a concentrate of about 1 liter.

• The remainder of the concentrate before happened in the pan and Chinese hat being permanently discarded.

After the operation, we get all the gold concentrate receuilli and heavy minerals are passed into a centrifuge concentrator (See: Photo 1) and then to the cast.

7.1 - Production Plan

The production capacity depends essentially on the average grade of the gravel and capacities of dredgers. In our case, we have a dredger with a capacity of 18 m3 of gravel / h. The average grade of 1.5 g / m3.

The chosen is 21 km in a straight line but potential area 26 km along the river Baoule (Fig.1). The average thickness of paydirt is important (see report of prospecting in annex). For the calculation, we consider that thickness of 0.5 m. the average bed width is 100 m; the average content was set at 1.5 g / m3 for the entire study area (see geological report).

Note that with the sample processing method and the presence of gold in the form of platelets, the reserves will be underestimated because the traditional pan does not allow to recover 30 to 40% of the gold.

Given the low accuracy of the analyzes in the pan that recovers up to 40% of the gold content can be estimated that the dredging brings improved recovery of at least 40%. So we can make the following prediction: 1.500 kg + 600 kg = 100 kg 2 ton

Following these promising results, the company EDG Ltd. is the holder of the prospecting license has decided to initiate the process of obtaining an operating license in the stressed area.

Forecasts for the account of the operation are presented below:

• The minerals recovered per day is estimated at 18 m 3

• The dredges recovery rate is estimated at 80%

• The period of work in the year 6 months / 12 for 25 days / month and 8 hours / day

Report by Equipment Depot Ghana Limited

• Following these assumptions, the Ellicott Dredge produce on average:

Daily production: 18 x 8 x 0.8 x 1.5 = 172.8 g / d

Monthly production; 172.8 g x 25 = 4.320g

Annual production: 4.320g x 6 = 25.920g

Note: Estimated reserves:

Annual Production: 25k 920g Estimated duration of the mine life; 24 years for a dredge.

And assuming a linear extraction in four (4) years (Amortization Period planned investment capital); production forecasts will be as follows (in kg):

Table : 1 Year Year 1 Year 2 Year 3 Year 4 Production 25.920 g 25.920 g 25.920 g 25.920 g Cumulative Total 25.920 g 51.840 g 77.760 g 103.680 g

7.2 List of equipment

For the project the following equipment were provided: Tableau : 2 Item Designation Qty 1 dredge 1 2 small Boats 2 3 Kva generator 30 each 2 4 Truck to transport equipment and fuel 1 5 4x4 2 6 compressors 2 7 Submersible Pumps 2 8 electric saws 2 9 Moto Cross 2 10 tents 4 11 container 2 12 Kitchen equipment and accessories 1 13 Lighting and light equipment 1 14 Lot of small support equipment 1 15 Lot of tools and consumables 1 16 Lot spare parts 1

An office is planned in Bamako and a camp will be built in the nearest village site and tents will be installed near the river.

7.3 The Staff

Report by Equipment Depot Ghana Limited

It is anticipated administrative and technical staff at headquarters and on the website Table : 3 Item Designation Qty Bamako office 1 Project Director 1 2 Assistant Manager 1 3 accountant 1 4 secretary 1 5 driver 2 6 guardian 1 sub Total 7 On the Site 1 Geologist foreman 1 2 divers 6 3 mechanic 2 4 Electrician 2 5 Washers 4 6 maneuvers 4 7 driver 2 8 cookers 2 9 guardians 2 10 sub Total 25 Total General 33

Initially the company will benefit from the dredges of the manufacturer's assistance in staff training and skills transfer. The costs associated with this assistance are included in the cost of dredging.

7.4 Environmental aspect: The company EDG Ltd., following a public consultation in the locality permission, got his license environment whose references are: Decision No. 2014-0666-MEA-SG on 23/09/2014. The completion of the Environmental and Social Impact Assessment of work on the implementation of the gold project by drag into the thick bed of Baule helped lead to the conclusion that the potential negative impacts can be mitigated and positive ones enhanced the benefit of a local development and even, by extension, national.

In this, the project will improve the living conditions of vulnerable groups including women and youth. Indeed, mining is experiencing a real boom to the delight of local people and the country. The rigorous implementation of the measures contained in the ESMP will circumscribe the negative impacts that are associated with the project and enhance the positive impacts.

The company must provide environmental safeguards the importance they require. It should remind workers respect the habits and customs of the people in order to avoid conflicts that may arise from their behavior in their relations with the local population. The company must also ensure the elimination or mitigation of discomfort or harm

Report by Equipment Depot Ghana Limited that has been caused by the implementation of the project and contribute by all means available to the well-being of local people.

NB: All environmental aspects will be covered in the environmental and social impact report.

VIII - ECONOMIC STUDY

8.1 Market Research

This market study is the gold mined in the project by dredging. During the last decade, the price of gold has increased dramatically so that even the most discerning players were surprised. Today gold is around US $ 1200 per ounce that we see on scholarships. This is indeed the company EDG Ltd has decided to embark on the gold mining its perimeter to the Malian local market and eventually the international market.

8.2 - Resort fee:

They will consist of expenses incurred in connection with the feasibility study and formation of the Company and of the expenses related to the acquisition of mining rights, exploration and diverse. They will be amortized over the first four years.

8.3 Plot:

The Company will not acquire land. She will rent a room on the project site

8.4 - Construction:

For the execution of its work, the Company will build near the river camps in the nearest villages which to base life. To this end, it proposes to purchase: • Four (4) large military tents, • Two (2) containers and stove with accessories

8.5 Movements

The various movements within the Mali will be provided by company vehicles so there will be no special chapter about it. However, a provision will be made for international travel.

8.6- Purchases

Purchases concern the implementation of stock for tooling and consumables.

IX - PROJECT COST: (CFA)

Report by Equipment Depot Ghana Limited

9.1 - Resort fee: Table 4 Item Designation amount. 1 Study costs and Constitution 19.500.000 2 Exploration works Prospecting 30 000 000 3 Various fees and Contingencies 15 000 000 sub Total 64.500.000

9.2- Material & Equipment Table 5 Item designation Qty / Nbrs Unit amount total amount 1 Drag and accessories 1 70.000.000 70.000.000 2 small Boats 2 5.000.000 10.000.000 3 Kva generator 30 each 2 15.000.000 30.000.000 4 Truck to transport equipment 1 45.000.000 45.000.000 and fuel 5 4x4 2 20.000.000 40.000.000 6 compressors 2 2.000.000 4.000.000 7 Submersible Pumps 2 500.000 2.000.000 8 electric saws 2 250.000. 500.000 9 Moto Cross 2 2.000.000 4.000.000 10 tents 4 500.000 2.000.000 11 container 2 2.000.000 4.000.000 12 Kitchen equipment and 1 1.000.000 1.000.000 accessories 13 Lighting and light equipment 1 2.000.000 2.000.000 14 Lot of small support 1 2.000.000 2.000.000 equipment 15 Lot of tools and consumables 1 1.000.000 1.000.000 16 Lot spare parts 1 5.000.000 5.000.000 sub Total 27 173.250.000 261.500.000

9.3- Transportation and travel:

It is expected an annual retainer of 30 million FCFA - 15 million FCFA Airline Ticket fees for expatriate staff - 10 million FCFA and drain fuel costs - 5,000,000 FCFA for vehicle maintenance (spare parts, breakdowns, tire etc ..)

9.4- working capital needs Table: 6 Item Designation amount 1 Purchasing Supply and Consumable (3 months) 17.000.000 2 Personnel expenses (7 months) 19.000.000 3 TFSE fees 10.000.000 4 Taxes and Fees 5.500.000 sub Total 51.500.000

Report by Equipment Depot Ghana Limited

9.5- Purchases

They relate to food grocery purchases and other equipment tools - Food Commission: 1.4 million FCFA - Gas Cylinders: 500 000 FCFA - Soap, Vinegar: 100 000 FCFA

9.6- Investment Summary: Table 7 Item Designation Amount 1 Costs of Establishment 64.500.000 2 equipment 261.500.000 3 camp 100.000.000 4 Purchases (Vinegar, Soap & gas bottle) and food supplies 2.000.000 5 Transport and Travel 30.000.000 6 Needs in working Fond 51.500.000 total investment 509.500.000

9.7 - Financing Plan

Funding for the project will be carried out on 100% equity of the EDG SARL.

X - ELEMENTS OF ACCOUNTS OF OPERATIONS

10.1 - Revenue:

In connection with the production plan and accepted proposals for this study the annual estimated revenue will be the following on the basis of a linear growth over the four (4) years of production: Table: 8 Year / Designation 1 2 3 4 Or Product 25.920 g 25.920 g 25.920 g 25.920 g Value of Product in Million CFA 518,4 518,4 518,4 518,4 francs

NB: the price of one (1) gram of gold is. Estimated 20,000 CFA (twenty thousand cfa) given the current court gold.

10.2 - Maintenance:

10.2.1 Annual Staff Costs Table: 9 Nbrs Designation Amount per Month Amount per Year Bamako Office

Report by Equipment Depot Ghana Limited

1 General Manager 2.000.000 24.000.000 1 Deputy General Director 2.000.000 24.000.000 1 accountant 500.000 6.000.000 1 secretary 200.000 2.400.000 2 driver 25.000 600.000 1 guardian 40.000 480.000 sub Total 57.480.000

Tableau 10 Nbrs Designation Amount per Month Amount per Year On the Site 1 Geologist (site supervisor) 500.000 6.000.000 6 divers 25.000 1.800.000 4 washers 12.500 600000 2 Mechanics 37.500 900000 2 Electrician 37.500 900000 2 drivers 25.000 600000 2 cook 25.000 600000 4 maneuver 12.500 600000 2 guardian 20.000 480000 Sous Total 695.000 12.480.000

NB: The Director and Deputy Director are both shareholders in equal parts, which justifies their wages. Each person hired will have to sign a contract with the company in accordance with the legislation in force on employment in the Republic of Mali. Salaries were assessed for twelve months, but in reality some employees will have an effective job in six months. In all cases the contract will determine this aspect in each case is to avoid under evaluation for this position as the evaluation is done for the year.

10.2.2 Taxes: (in thousands of francs) Table: 11 Item Designation 1 2 3 4 1 Taxes Ad Valrem (3% ) 7543 7543 7543 7543 2 I.S.C.P ( 3% ) 7543 7543 7543 7543 3 Taxes Superficiaires 500 500 500 500 Contribution Forfetaire 7125 7125 7125 7125 Total 22.711 22.711 22.711 22.711

• 3% of turnover Excluding Tax (Cash flow) • superficiary Taxes = 10 * 50 000 = 500 000 FCFA

10.2.3 Supplies Works and external services in CFA francs Table: 12 Designation 1 2 3 4 insurance Control 2.500.000 2.500.000 2.500.000 2.500.000 Maintenance and 2.500.000 2.500.000 3.000.000 3.000.000 Repair Fuel & Lubricants 54.000.000 54.000.000 55.000.000 55.000.000 Manpower Temp. 1.000.000 1.000.000 1.500.000 1.500.000

Report by Equipment Depot Ghana Limited

Works S / Traitance 4.000.000 - - 2.000.000 Miscellaneous and 1.000.000 1.000.000 1.000.000 1.000.000 unforeseen Total 65.000.000 61.000.000 62.500.00 65.000.000

10.2.4 Récapitulatif des Charges en F cfa Tableau: 13 Designation 1 2 3 4 Purchase and Other 2.000.000 2.000.000 2.000.000 2.000.000 displacement 30.000.000 30.000.000 30.000.000 30.000.000 Personnel expenses 69.960.000 69.960.000 69.960.000 69.960.000 Taxes and Fees 22.711.000 22.711.000 22.711.000 22.711.000 Forniture and Services 65.000.000 61.000.000 62.500.000 65.000.000 TOTAL 189.671.000 189.671.000 189.671.000 189.671.000

10.2.5 Dotation aux Amortissements Tableau: 14 Designation amount duration 1 2 3 4 F.d'etablissement 64.500.000 4 16.125.000 16.125.000 16.125.000 16.125.000 dredges 70.000.000 8 8.750.000 8.750.000 8.750.000 8.750.000 4x4 Vehicles 20.000.000 5 4.000.000 4.000.000 4.000.000 4.000.000 small SHIPS 10.000.000 5 2.000.000 2.000.000 2.000.000 2.000.000 Support Material 2.000.000 10 200.000 200.000 200.000 200.000 Any truck Land 45.000.000 8 5.625.000 5.625.000 5.625.000 5.625.000 ElectroG groups. 30.000.000 5 6.000.000 6.000.000 6.000.000 6.000.000 Motorcycles-Cross 4.000.000 5 800.000 800.000 800.000 800.000

Electric saws 1.000.000 3 330.000 333.000 330.000 340.000 tents 500.000 3 160.000 160.000 160.000 170.000 containers 1.000.000 5 200.000 200.000 200.000 200.000 Submercible pump 2.000.000 3 660.000 666.000 660.000 670.000 camp 100.000.000 10 10.000.000 10.000.000 10.000.000 10.000.000 TOTAL 350.000.000 54.866.00 54.866.000 54.866.000 54.866.000 0

10.2.6 Management Fee:

They were estimated at a flat rate of 15 million F CFA / year and will cover the cost of telephone, fax, electricity and other administrative expenses

10.2.7 Transportation and travel:

Travel expenses include expenses related to transport personnel Expatriates and displacement of the two main leaders of society. A provision of 30 million FCFA was made

Report by Equipment Depot Ghana Limited

10.2.8 Charts Projected operating OF Accounts in CFA Table: 15 Designation Year 1 Year 2 Year 3 Year 4 Estimated revenue 518.400.000 518.400.000 518.400.000 518.400.000 Operating Expenses 189.671.000 189.671.000 189.671.000 189.671.000 Management fees 15.000.000 15.000.000 15.000.000 15.000.000 Depreciation Damping. 54.866.000 54.866.000 54.866.000 54.866.000 TOTAL EXPENSES 259.537.667 259.537.667 259.537.667 259.537.667 Gross results 258.862.330 258.862.330 258.862.330 258.862.330 Gross cash flow 313.729.000 313.729.000 313.729.000 313.729.000 Tax on BIC (30%) 94.118.700 94.118.700 94.118.700 94.118.700 net results 164.743.630 164.743.630 164.743.630 164.743.630

FINANCIAL AND ECONOMIC ANALYSIS XI

Rates of direct Added value and degree of integration into the national economy. Thousands CFA francs Table: 16 Designation Amount TVA 18% V.Int.Eco. Natio Staff costs 69.960.000 - 69.960.000 shopping 2.000.000 360.000 2.000.000 Taxes and Fees 22.711.000 - 22.711.000 Management fees 15.000.000 2.700.000 15.000.000 amortization 54.866.000 9875880 54.866.000 displacement Transport 30.000.000 - 30.000.000 Gross results 258.862.300 TOTAL 453.400.000 10.505.880 194.537.600

Value the rate Direct Added:

10.505.880 TVA = ______X 100 = 2.3% 453.400.000

Integration rate National Economy

194537600 ______X 100 = 43% 453400000

Integration rate National Economy...

518.400.000______X 100 = 114% 453400000

Profitability compared to equity:

Report by Equipment Depot Ghana Limited

458000000______X 100 = 101,01% 453400000

INTERNAL RATE OF RETURN

TRI = I + PV( I-I) 100 ------PV – VN

I- last rate for which the value is positive; l- rate for which the value is negative; PV last positive value; VN negative value for the rate!

Investments discounted up to 35% give a positive value of the cash flow, so the IRR is greater than 40% the project is profitable and bankable

XII SENSITIVITY ANALYSIS

The sensitivity analysis provides two possibilities;

- 1) decline to the threshold level of 1 g / m2

- 2) decline in the price of gold by 10%

• decline to the threshold level of 1 g / m2 Tablea: 17 Designation / Year 1 2 3 4 50% drop in production 17280 g 17280 g 17280 g 17280 g levels to boundary 1g / T recipe 345.600.00 345.600.00 345.600.000 345.600.000 0 0 total Charges 259.537.66 259.537.66 259.537.660 259.537.660 0 0 gross profit 86.062.000 86.062.000 86.062.000 86.062.000 Depreciation and Amort. 54.866.000 54.866.000 54.866.000 54.866.000 Gross Cash Flow 140.929.00 140.929.00 140.929.000 140.929.000 0 0

Note: the data used are from Table 8

•Decrease of short gold

Table 18 Designation / Year 1 2 3 4

Report by Equipment Depot Ghana Limited

10% reduction on the price to 18,000 CFA francs Gold 25920g 25920g 25920g 25920g Gram recipe 466.560.00 466.560.00 466.560.000 466.560.000 0 0 total Charges 259.539.66 259.539.66 259.539.660 259.539.660 0 0 gross profit 207.022.00 207.022.00 207.022.000 207.022.000 0 0 Depreciation and Amort. 54.860.000 54.860.000 54.860.000 54.860.000 Gross Cash Flow 261.889.00 261.889.00 261.889.000 261.889.000 0 0

XII - CONCLUSION

To conclude the project is viable even if offset certain conditions with respect to the basic assumptions of the study, so the project is feasible without fear.

KEY TECHNICAL-ECONOMIC DATA Item Designation wording 1 estimated reserves 1 t 560 kg 2 Production peak year gold 25.920 g 3 Cost of investments 458.000.000 f cfa 4 In working capital 51.500.000 f cfa

Report by Equipment Depot Ghana Limited

5 Annual gross cash flow 313.729.000 6 Estimated life (for a drag) 24 ans 7 Number of jobs created 33

REFERENCES PUBLICATIONS

Bassot JP, Dommanget A., 1986, Tectonics Demonstration of a major accident affecting the Proterozoic of the Senegal-Mali border. Minutes of the Academy of Sciences in Paris, 2, 17, Volume 302, pp. 1101-1106

Claessens, LW, Camara, MD, Van Osta 1988: explanatory of the geological map Notice 1/200 000 Massigui. Documentation Centre DNGM

Feybesse JL, JP Mile si 1994: The Archean / Proterozoic touch area in West- Africa: a mountain belt of abruption thrusting and folding was continental margin related to 2.1 Ga Archean cratons of convergence? Precambrian Research, 69, pp. 199-227.

Report by Equipment Depot Ghana Limited

Geochemical map

Topographic Fond du Mali

Designed and published by the Geographical Service of the AO 1956 1st edition: 1956 reprint July 1960.

Report by Equipment Depot Ghana Limited

SCHEDULE

SOCIETE EQUIPMENT DEPOT GHANA

LIMITED

Report by Equipment Depot Ghana Limited

Mission Report Execution of Works Prospecting alluvial In Diamana East SectorCercle de Bougouni, Région de Sikasso

Septembre 2013

As part of the execution of the work under the Diamana East sector, the company EDG Ltd. has signed a contract with the Soltech-Consulting Office

Report by Equipment Depot Ghana Limited

The contract included the following work:

- RGS-grid 400 mx 100 m with sampling and analysis of 150 soil samples; - Establishment of the geomorphological map of areas covered by the geochemical survey; - Preparation of the report on the work. For the execution of this contract, the counseling office Soltech-Consulting mobilized a technical team. This mission took place from 19/09/2013 to 30/09/2013 and the team consisted of:

- One (1) Geological Engineer, Head of Mission; - One (1) Geologist Technician; - One (1) Help lab.

The support staff was made up of:

- One (1) driver; - Two (2) boussoliers; - One (1) cook and assistant cook; - Eight (8) Maneuvers - One (1) guard.

The team was encamped in the village of Kodiougouni located not far from the perimeter because of the proximity of a main road.

At the end of the work, a geomorphological map was produced in accordance with the terms of reference of this contract and the samples were in the laboratory (SGS-Bamako) for analysis.

This report takes stock of the work done in the selected sectors of the perimeter during this mission.

I - INTRODUCTION

Report by Equipment Depot Ghana Limited

This report describes the work carried out by the company EDG Ltd on exploration authorization during the period from 19 to 30 September 2013

The various works revolve around:

- The field trip: geological reconnaissance in the Baoulé River said area,

- Sampling of the alluvial geochemistry: sample collection in the riverbed by dredging Baule and the banks;

This report, prepared on the basis of the results of the exploration work is intended to demonstrate the economic viability of dredging the river Baule (Diamana -Is sector).

II- GENERAL

1 Coordinates of Research Permits

The project area is located about 48 km northeast of Sido on National Highway 7 (N7), Sikasso, Bougouni.

It occupies the map sheet 1/200 000th Bougouni. It concerns only the bed of the Baoulé River on an area of 10 km².

Geographic coordinates are:

POINTS COORDINATES Latitude (North) Longitude (West) A 11°42’51’’N 07°08’53’’W B 11°42’48’’N 07°08’59’’W C 11°37’29’’N 07°14’22’’W D 11°37’30’’N 07°14’29’’W

Report by Equipment Depot Ghana Limited

Figure 1 Area: 10 square kilometers.

Report by Equipment Depot Ghana Limited

2. Body type:

The area on the Bougouni sheet is characterized by a plain dotted with mounds and witness lateritic plateaus whose altitude does not exceed 350m. The vertical drop between 30 and 40 m.

The terrain is generally composed of gently sloping plateaus, generally covered by lateritic cuirasses to above which rise in places of outliers.

River valleys are poorly collected, except in the sedimentary cover.

3. Hydrography:

The river system on the Bougouni sheet consists essentially of Baoulé River and the temporary rivers that connect the Baule. Baoulé River is a river wide enough (more than 100m wide in places) with depths ranging from meter to over 11m. It is often cluttered with dead tree trunk but navigable and suitable for dredging.

The flow of the rivers of southern Mali (with their tributaries) is highly variable: it passes several hundred m3 / s in August 1-2 m3 see zero m3 / s in April-May

4. Climate -Flore- Wildlife:

The climate is of Sudanese type, characterized by a dry season and a rainy season. The dry season has two periods:

- One dry and cool from November to February, is characterized by temperatures falling between day (30 °) and night (10-16 °);

- Another hot and dry from March to May, is experiencing higher temperatures (35-45 ° C) with less variation.

The vegetation is made by a few boiseuse savannah. It is denser and is observed throughout the river.

Fruit trees are seen goshawks villages and orchards. Savannah is pretty grassy but the tall grasses are the subject of burns during the dry season.

Rainfall is quite good in the whole area.

The vegetation is savannah type or wild grasses are dominated by large trees such as baobab,

Report by Equipment Depot Ghana Limited locust bean, shea, kapok, Cai citron and tamarind.

The vegetation is especially dense along the river.

As for the flora, it consists of néré, caïlcédrat, shea etc ....

5. Population:

The population is dominated by the Malinke engaged in farming and market gardening after the rainy season.

At this traditional population was added Peuhl, Mossi, Bobo and Dogon Sarakolés practicing agriculture, livestock, fishing, hunting, and gold panning.

6. routes of communications:

Administratively, the work area is attached to the Sikasso region of Bougouni.

Bamako is accessed - Sido Tarmaced road; and Sido -N'tinkol through Kodiougouni up Diamana, laterite road disrepair during the rainy season.

Report by Equipment Depot Ghana Limited

Figure ; 2

Report by Equipment Depot Ghana Limited

3. Economic Activities

Any administrative activity is drained by the city of Bougouni. As for trade and handicrafts, they are linked to agriculture, which is a major source of revenue, with gold panning which is a traditional activity. Apart from industrial cotton cultivation, crops are often food: corn, millet, sorghum, cassava, yams; sweet potatoes, cashew nuts, oranges, bananas, mangoes. Livestock (cattle, sheep, goats, and avian) is a traditional activity. Farm products are to be sold in markets in villages and towns.

The main activities provide the following resources:

- Agriculture.

- Fishing: the Baoulé and its tributary are full of fish.

- Panning for gold: provides the population with money income.

4. Infrastructure:

The Sélingué dam supplies electricity to the towns of Bougouni Selingué Yanfolila and Kalana with his mine.

III- GEOLOGICAL FRAMES

1- Local Geology

Permission is located in the Birimian volcano-sedimentary sequence dominated. Because of the strong lateritization and scarcity of outcrops, the geology of the area is known through data interpretation of airborne geophysics. The geological map was updated by subsurface workings and drill holes that showed the saprolite.

The area is dominated by sedimentary formations in the west. In the eastern part, are volcano-sedimentary formations associated with an intrusive granitoid pre-syn-tectonics tectonic origin.

Report by Equipment Depot Ghana Limited

The southwestern portion of the authorization is traversed by a series of shear direction N30 °.

Local geology shows metasediments associated with granitoid intrusives.

The mineralization is associated with shears zones manifesting in contact granitoids and sediments.

The Archean outcrops in the following areas:

• southern leaves Manankoro, Kadiana, Kadiolo stuck to Ivory Coast

• the corridor of deformation of the accident Banifing (N140 °), which is the northern extension of the Sassandra accident in Ivory Coast

It is dominated by a set of gneissic rocks: granite gneiss, and metamorphic rocks (amphibolites and ultrabasic). The direction of the foliation is generally NS to NNE and dips to the east.

In addition to these metamorphic rocks are distinguished:

• biotite granite, fine grain texture oriented to

• biotite granite to medium grained texture équante (granite Diourkasso)

• laminate massive Touban composed of gabbro, wherlite of serpentinized dunite of, and pyroxenite.

The contact area between the gneisses and Proterozoic paleo-training is highlighted by a strong magnetic anomaly (Az: 100 to 120 °) which probably coincides with the same fault zone management immediately south of a band of volcanic paléoprotorézoïques.

The Birrimian of southern Mali is dominated by four volcano-sedimentary belts (tholeiitic units andesitic and rhyodacitic) oriented NNW and NNE, these are:

• Belt Yanfolila (Az: N330 ° NS) composed of basic volcanics, these formations are located north of Kangaba in Kankan Siguiri basin (flysch-type sediments, felsic volcanic pyroclastic)

Report by Equipment Depot Ghana Limited

• East of Sélingué dam, and around Filamana in Bougouni Kekoro-basin (shale units, sandy shales and / or white with alternating tuffaceous greywacke and sandstone), in probably prolonged in Côte d'Ivoire.

It should be noted that Western Sélingué dam there is a Tarkwaian type of unit dominated by conglomerates polygénitiques granite pebbles, volcanic and sedimentary rocks.

• Belt Massigui located west of the fault of Banifing (Az: NS) consists of rhyodacites porphyry, basalt breccias and conglomerates. It is covered by the Néoprotérozique north and cut by accident Banifing.

• Belt-Kadiana Manankoro, east of the fault of Banifing (40 ° N) in faulted contact with Archean gneissic presumed outcropping in the SW corner of Kadiana slip. It is indicated by the presence of hexalatifs sediments and strong magnetic anomaly in the area of contact with the Archean.

• Belt Syama (Az: 200 °) is a volcanic belt (width: 1-3 km) wedged between Tarkwaian (clastic sedimentary units in conglomeratic single phase) to the east and volcano- sedimentary west. This belt characterized by the accident direction N 40 ° locates in the western part of the Kadiana sheet, the NW corner of the Kadiolo sheet. A Bananso band is divided into two segments to extend north to Massigui and south to Côte d'Ivoire.

Belts Massigui, Kadiana-Manankoro and Syama are related to basin Bagoé formed of sandstone, quartzite schist greywacke with intercalated meta basalts altered porphyry and often ferruginous shales. To the east of the fault of Banifing, there are several granitic facies which are:

• Granites Fakola: fine-grained biotite medium • Granites Sanso leucocratic roses • Granites Nangalasso: porphyritic biotite • Grano-diorites Zérékoré • diorites Sadioula, Pankoussa, Koué, Siebe and Finkolo norites of Zoua Wrinkle Kolondiéba between the Bagoé Basin Basin Bougouni-Kekoro is essentially composed of:

• biotite granite texture oriented mantle-derived syn- to ante-tectonic granites muscovite, • dykes spodumene pegmatites • hornblende granites • post-tectonic granites with K-feldspar Kekoro • hornblende diorite

Report by Equipment Depot Ghana Limited

Figure : 3

Report by Equipment Depot Ghana Limited

Map: volcanic belts, sedimentary basins and granitic wrinkles paleo Proterozoic Southern Mali sector

Zone du permis de Diamana-Est

Figure : 4

2 REGIONAL GEOLOGY:

Mali is in the central part of West Africa where two overlapping sedimentary basins and orogenic domains called 4 different geological provinces. The area of the license is located in the Province Bambouck Bouré encompassing all the Birimian and Eburnean Baule Mossi domain of Dorsal Leo, a vast area covering most of the cote d'Ivoire, Ghana, Senegal Oriental Burkina Faso, Niger, the western parts (kayes window and Keniéba) and southern Mali and northern Guinea Conakry.

The Bambouck Bouré is limited to the north by the Neoproterozoic sedimentary cover of Basin Toudeni which unconformably overlies the volcano-sedimentary assemblages supergroupr Birimian and intrusive rocks that constitute its Precambrian bedrock. Rocks Bambouck Bouré mainly Paleoproterozoic age, were deposited on Archean basement 49

Report by Equipment Depot Ghana Limited which one finds shreds here and there, in the extreme south of Mali near the Ivorian border. These rocks identified as part of the Archaean (<2500 Ma) by analogy with similar units described further south in western Ivory Coast and dated 2600vma (Kusrnir 1987 Claessens 1988) exposed in the southern part of the geological maps Manakoro, Kadiana and Kadiolo and along the Banifing deformation corridor. These are mainly gneisses, migmatites, leptynites and mafic rocks (amphibolites and ultrabasites). The direction of the shistosité is generally NS to NNE with subvertical dip to the east.

These courses are transgressive Paleoproterozoic on Archean. They consist of a series of volcanic belts and sedimentary basins oriented NNW and NNE sometimes called "grooves" separated by vast intrusive complexes granitic rocks called "moles" or wrinkles.

The current hypothesis suggesting a synchronous development pénécontemporain green stone belts and sedimentary basins has given the name Birimian Supergroup all Birimian volcano-sedimentary units (Girard 1998). Birimian Supergroup therefore includes polyphase assemblies volcanic pyroclassique dominance and polyphase assemblies sediment- dominated, these two assemblies being overcome unconformably by a single-phase assembly dominance and detrital conglomeratic types Tarkwan. There are two main groups of intrusive rocks Eburnean: intrusive rocks ante to syntectonique oriented in texture, sometimes gneissic or mylonite and post tectonic intrusive rocks équante particle size and non-oriented texture and generally a significant halo of contact metamorphism. The chemical composition of these intrusions will granites or gabbroic to ultramafic rocks.

Structure point of view, the regional structural management is NNE-SSW with schistosities subverted holds more or less parallel to the stratification indicating isoclinal folds resulting from tangential deformation. Three major accidents exist in the region: it is the accident of Banifing oriented N40 ° which is an important deformation corridor in the northern extension of the fault Sassandra in Côte d'Ivoire, accident and Kolondieba the Syama; these last 2 accidents also having a N40 ° orientation therefore parallel to that of Banifing.

Also noteworthy is the existence in the area of S2 schistosity oriented NNW-EW often marked by folding and which are associated with the same direction of the considered faults late against major faults No. 40.

Finally, we must note the superficial formations (laterite and alluvium) that hide most of the rocks of the region.

Report by Equipment Depot Ghana Limited

Figure : 5

Report by Equipment Depot Ghana Limited

IV PREVIOUS WORK:

The area has been the subject of several previous studies. The work done at the regional level include:

- In 1964, the Soviet SONAREM and assistance undertake an aeromagnetic survey program for the entire southern part of Mali. - From 1972 to 1974, BRGM carried out on behalf of Mali geological and geochemical prospecting. - From 1980 to 1990, the project has begun Bagoé Gold mining inventory, geochemical prospecting and geological mapping of the entire area

The work carried out locally included:

- In June 1992 - January 1996: BHP Minerals has made in the area of the Yanfolila area (4750 km²) of airborne geophysical survey (magnetic and radiometric), photo interpretation of 1:50 000, BLEG geochemical surveys and ground mesh 1000 x 1000 m for the determination of gold and silver and multi-element. This work allowed the identification of major geological structures of the authorization, the inventory of panning for gold, and the discovery of several geochemical anomalies located in the prospect Gouela, IA Komana Komana and II;

Report by Equipment Depot Ghana Limited

Figure : 6

Report by Equipment Depot Ghana Limited

V- WORK PERFORMED

To evaluate the potential or gold prospects, field survey work and sampling in the bed of the river Baule has been made in the Diamana East area during the period from 19 to 30/09/2013 .

1- Work performed:

- Field Visit: it allowed for a zone reconnaissance study to develop a more adequate program of work;

- Sampling of alluvial geochemistry: sampling bright bed and on the banks of the river along the profiles at the slower areas of water flow regarded as favoring the sedimentation of heavy minerals (such as gold), followed by the gravimetric concentration by manual pan for gold samples. A total of 150 samples were taken.

IV- METHODOLOGY

The alluvial gold was formed by disintegration result in the erosion of rocks cashing the yellow metal. Birimian gold courses have been acted different denudation. Thus the land is favorable to the discovery of alluvial gold.

At each sampling point set by GPS, the boat stops. Divers then down into the water, and using hoes and buckets collect 40-50 kg of gravel.

Gravel is subjected to manual panned by scrubbers.

The resulting concentrate is again washed and purified to finally put in the plastic bag which are mentioned point coordinates.

1-1- Sampling alluvial

The entire area of exploration authorization was the sample object. The distance between the samples varies from 200 to 800 m and more. Only parts of the river with a depth of 5 m could not be sampled because the divers do not reach the bottom.

Report by Equipment Depot Ghana Limited

Photo: Working Group 1

It should be noted that these locations are depressions which are ideal trap for heavy minerals including gold. The volume of the samples ranged from 50 to 100 liters The majority of samples consists of clayey sand, gravelly sand, Grosner sand, gravel and pebbles.

The gravel consists of subrounded pebbles quartz subangular, laterite. The size of pebbles rarely exceed 7 cm. In most cases the gray gravel on the bedrock. It is not uncommon to see pebbles at different levels in both the coarse sand than clay indicating the low level of maturity of the sediments. This indicates that despite a tendency for gold to move down, the presence of a certain quantity of gold is found in higher levels in the alluvial layer.

1-2- Collection

Sampling points are attached to GPS (System 84). Divers dig a well in the gravel until you have 100 liters if possible are delivered to the scrubber for the treatment panning.

In the thick bed of the Baule, the gravel varies from 15 cm to 90 cm for shallow areas and in width from four to ten meters.

Report by Equipment Depot Ghana Limited

Photo: 2 Collection

Photo: 3 pan

1-3- panning

The samples collected are given to the scrubbers for treatment. The racking is done in 10 marked the gourds to recover the heavy fractions that are put in plastic bags marked UTM coordinates.

The last step is to treat the samples to the pan (called finishing work) to extract gold.

Gold recovered is weighed and the gold content is determined by m3.

VI RESULTS OF WORK

The company has worked in the project area as part of the authorization for exploration that has been allocated. A total of 150 samples were taken and analyzed.

The results of the analyzes yielded between 0.5 g / m3 to 3 / g m3 with a mean of 1.5 g / m3.

The distribution of these results is as follows:

Report by Equipment Depot Ghana Limited

- 70 samples returned values ranging 3 and 1.5 g / m3

- 55 samples returned values ranging 1.5 to 0.5 g / m3

- 25 samples returned values ranging 0.5 to 0.1 g / m3

Sample results have been very encouraging with visible gold grains in the pan. The gold grains are in sufficient quantities and often sprinkled with iron oxide.

Report by Equipment Depot Ghana Limited

Figure : 7

Report by Equipment Depot Ghana Limited

VII EVALUATION OF RESERVES

The reserve estimate was made taking as the average width of the riverbed 100m for 80% of river length is 10 km following the water court. The volume of gold silt will be: 10,000 x 1 x 100 x 0.8 = 800,000 m3. With an average grade of 1.5 g / m3, the reserves will be of the order of: 1.5 g x 800 .000 = 1 200 000 g is. 1t 200 kg of gold.

VIII COST OF WORK

The estimated cost of work amounts to Ten Million Two Hundred Thousand FCFA (10.2 million CFA francs) and detailed in the table below:

Topics Amount in FCFA alluvial geochemistry 4.500.000 Materials Exploration 1.500.000 Food & Housing 500.000 staff 1.800.000 fuel 900.000 report 1.000.000 Total 10.200.000

IX CONCLUSIONS AND RECOMMENDATIONS

The area has an interesting economic potential for gold through the results of the pan where the gold grains are visible. This adds countless panning for gold in the area.

There is no doubt that gold potential exists in the river Baoule.

We recommend the company to do the following work:

- Detailed prospecting with sampling every 100m in the anomalous areas set evidences, followed up geomorphological 1/5 000 of the study area;

Report by Equipment Depot Ghana Limited

APPENDIX 1 : Points levies

Number Name East North AU g/m3 1 Diam 001 698960 1298170 1.5 2 Diam 002 699450 1297955 2 3 Diam 003 697950 1297951 3 4 Diam 004 699650 1297946 1 5 Diam 005 697700 1297942 3 6 Diam 006 699500 1297942 2 7 Diam 007 695750 1297689 1 8 Diam 008 695650 1297686 2.5 9 Diam 009 695500 1297684 0.5 10 Diam 010 699950 1297684 1 11 Diam 011 695550 1297680 1 12 Diam 012 700000 1297676 2 13 Diam 013 695450 1297436 1 14 Diam 014 695350 1297430 0.5 15 Diam 015 700350 1297428 0.5 16 Diam 016 700450 1297426 1 17 Diam 017 695150 1297168 1 18 Diam 018 700650 1297168 1 19 Diam 019 700700 1297165 2 20 Diam 020 695050 1296915 1 21 Diam 021 695000 1296910 2 22 Diam 022 700900 1296902 1 23 Diam 023 694800 1296655 2 24 Diam 024 701100 1296650 0.5 25 Diam 025 701140 1296642 0.5 26 Diam 026 694550 1296396 3 27 Diam 027 694500 1296394 3 28 Diam 028 701250 1296394 2 29 Diam 029 701200 1296390 3 30 Diam 030 694200 1296136 1 31 Diam 031 701350 1296136 1.5 32 Diam 032 701450 1296136 2 33 Diam 033 694350 1296134 3 34 Diam 034 693550 1295880 1 35 Diam 035 693500 1295878 3 36 Diam 036 693750 1295878 2 37 Diam 037 701550 1295878 1 38 Diam 038 701500 1295877 2.5 39 Diam 039 693700 1295875 0.5 40 Diam 040 693800 1295872 1 41 Diam 041 701600 1295866 1 42 Diam 042 693050 1295628 2 43 Diam 043 692750 1295626 1

Report by Equipment Depot Ghana Limited

44 Diam 044 691500 1295625 0.5 45 Diam 045 691300 1295623 0.5 46 Diam 046 693200 1295623 1 47 Diam 047 692900 1295622 1 48 Diam 048 691400 1295621 1 49 Diam 049 691250 1295620 2 50 Diam 050 691450 1295620 1 51 Diam 051 691600 1295620 2 52 Diam 052 692500 1295620 1 53 Diam 053 692650 1295620 2 54 Diam 054 692800 1295620 0.5 55 Diam 055 692950 1295620 0.5 56 Diam 056 693100 1295620 3 57 Diam 057 693250 1295620 3 58 Diam 058 701800 1295618 2 59 Diam 059 691050 1295365 3 60 Diam 060 691000 1295362 1 61 Diam 061 691150 1295362 1.5 62 Diam 062 690700 1295104 2 63 Diam 063 690900 1295104 3 64 Diam 064 690750 1295100 1 65 Diam 065 690150 1294849 3 66 Diam 066 690100 1294846 2 67 Diam 067 690250 1294846 1 68 Diam 068 690300 1294843 2.5 69 Diam 069 690400 1294842 0.5 70 Diam 070 689850 1294590 1 71 Diam 071 689900 1294588 1 72 Diam 072 689840 1294330 2 73 Diam 073 689800 1294328 1 74 Diam 074 689750 1294072 0.5 75 Diam 075 689800 1293814 0.5 76 Diam 076 689750 1293560 1 77 Diam 077 689700 1293556 1 78 Diam 078 689700 1293298 1 79 Diam 079 689700 1293043 2 80 Diam 080 689650 1293040 1 81 Diam 081 689500 1292782 2 82 Diam 082 689600 1292782 1 83 Diam 083 689350 1292528 2 84 Diam 084 689300 1292524 0.5 85 Diam 085 689400 1292524 0.5 86 Diam 086 689110 1292266 3 87 Diam 087 689200 1292266 3 88 Diam 088 689150 1292260 2 89 Diam 089 689000 1292010 3

Report by Equipment Depot Ghana Limited

90 Diam 090 688950 1292008 1 91 Diam 091 689050 1292008 1.5 92 Diam 092 688850 1291753 2 93 Diam 093 688810 1291750 3 94 Diam 094 688900 1291750 1 95 Diam 095 688950 1291750 3 96 Diam 096 688800 1291495 2 97 Diam 097 688700 1291492 1 98 Diam 098 688850 1291492 2.5 99 Diam 099 688750 1291490 0.5 100 Diam 100 688515 1291234 1 101 Diam 101 688600 1291234 1 102 Diam 102 688550 1291231 2 103 Diam 103 688350 1290976 1 104 Diam 104 688450 1290976 0.5 105 Diam 105 688400 1290973 0.5 106 Diam 106 688400 1290720 1 107 Diam 107 688350 1290718 1 108 Diam 108 688450 1290718 1 109 Diam 109 688950 1290464 2 110 Diam 110 688750 1290463 1 111 Diam 111 693350 1290462 2 112 Diam 112 688850 1290461 1 113 Diam 113 688700 1290460 2 114 Diam 114 693700 1290460 0.5 115 Diam 115 693250 1290400 0.5 116 Diam 116 693950 1290205 3 117 Diam 117 689600 1290204 3 118 Diam 118 689650 1290202 2 119 Diam 119 689700 1290200 3 120 Diam 120 689950 1290200 1 121 Diam 121 692800 1290140 1.5 122 Diam 122 690400 1289946 2 123 Diam 123 691500 1289946 3 124 Diam 124 691450 1289945 1 125 Diam 125 692200 1289945 3 126 Diam 126 690350 1289944 2 127 Diam 127 690500 1289943 1 128 Diam 128 690600 1289940 2.5 129 Diam 129 691363 1289880 0.5 130 Diam 130 691200 1289688 1 131 Diam 131 693800 1289686 1 132 Diam 132 691400 1289685 2 133 Diam 133 691300 1289684 1 134 Diam 134 692750 1289428 0.5 135 Diam 135 693550 1289428 0.5

Report by Equipment Depot Ghana Limited

136 Diam 136 692500 1289170 1 137 Diam 137 692050 1288912 1 138 Diam 138 691850 1288654 1 139 Diam 139 691900 1288396 2 140 Diam 140 691950 1288138 1 141 Diam 141 692050 1287880 2 142 Diam 142 692200 1287622 1 143 Diam 143 692263 1287364 2 144 Diam 144 692350 1287364 0.5 145 Diam 145 692300 1287106 0.5 146 Diam 146 692165 1286848 3 147 Diam 147 692000 1286590 3 148 Diam 148 691850 1286332 2 149 Diam 149 691820 1286074 3 150 Diam 150 691820 1285816 1