TECHNICAL REPORT AND PRELIMINARY ECONOMIC ASSESSMENT FOR THE PISKANJA BORATE PROJECT, SERBIA REPORT PREPARED IN ACCORDANCE WITH THE GUIDELINES OF NATIONAL INSTRUMENT 43-101 AND ACCOMPANYING DOCUMENTS 43-101.F1 AND 43-101.CP. Prepared For Erin Ventures Inc. Report Prepared by SRK Consulting (UK) Limited UK5932 Effective Date: 1st September 2014 QPs: Dr Mikhail Tsypukov (FIMMM) Dr Mike Armitage C.Eng C.Geol Mark Campodonic MSc, FGS, MAusIMM(CP) SRK Consulting Piskanja– Table of Contents Main Report Table of Contents 1 SUMMARY .......................................................................................................... 1 1.1 Introduction .............................................................................................................................. 1 1.2 Licence Status ......................................................................................................................... 1 1.3 Geology .................................................................................................................................... 2 1.4 Exploration Data ...................................................................................................................... 3 1.5 Mineral Resource Estimate ...................................................................................................... 3 1.6 Preliminary Economic Assessment ......................................................................................... 4 1.7 Interpretation and conclusions ................................................................................................. 4 1.8 Recommendations ................................................................................................................... 4 2 INTRODUCTION ................................................................................................. 5 2.1 Background .............................................................................................................................. 5 2.2 Qualifications of Consultants ................................................................................................... 6 2.3 Site Visits ................................................................................................................................. 7 2.4 Declaration ............................................................................................................................... 7 3 RELIANCE ON OTHER EXPERTS ..................................................................... 8 4 PROPERTY DESCRIPTION AND LOCATION ................................................... 8 4.1 Project Location ....................................................................................................................... 8 4.2 Mineral Licence Tenure ........................................................................................................... 9 4.3 Mining Rights in Serbia .......................................................................................................... 12 4.4 Surface Rights ....................................................................................................................... 13 4.5 Permits and Authorisation ...................................................................................................... 14 4.6 Environmental Considerations ............................................................................................... 14 4.7 Agreements and Royalties ..................................................................................................... 14 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .............................................................................................. 15 5.1 Accessibility ........................................................................................................................... 15 5.2 Local Resources and Infrastructure ....................................................................................... 15 5.3 Climate ................................................................................................................................... 16 5.4 Physiography ......................................................................................................................... 16 6 HISTORY ........................................................................................................... 17 7 GEOLOGICAL SETTING AND MINERALISATION .......................................... 19 7.1 Regional Geology .................................................................................................................. 19 7.2 Local Geology ........................................................................................................................ 22 7.3 Licence Geology .................................................................................................................... 24 7.3.1 Structure ...................................................................................................................... 27 7.4 Mineralisation ......................................................................................................................... 28 8 DEPOSIT TYPE ................................................................................................. 32 9 EXPLORATION ................................................................................................. 33 U5932 Piskanja 43-101 PEA_Final.docx September 2014 Page i of ix SRK Consulting Piskanja– Table of Contents Main Report 10 DRILLING .......................................................................................................... 35 11 SAMPLE PREPARATION, ANALYSIS AND SECURITY ................................. 39 11.1 Sampling of Diamond Core.................................................................................................... 39 11.2 Sample Preparation ............................................................................................................... 41 11.3 Sample Analysis .................................................................................................................... 42 11.3.1 Analytical Methodology ............................................................................................... 42 11.3.2 Initial Analysis Programme (Stage 1) .......................................................................... 47 11.3.3 Amended Analysis Programme (Stage 2) ................................................................... 48 11.4 QAQC Procedures and Results ............................................................................................. 48 11.4.1 Background ................................................................................................................. 48 11.4.2 Certified Reference Material ........................................................................................ 49 11.4.3 Blank Samples ............................................................................................................. 54 11.4.4 Duplicate Samples....................................................................................................... 55 11.4.5 Umpire Laboratory ....................................................................................................... 56 11.5 SRK Comments on Adequacy of Procedures ....................................................................... 56 12 DATA VERIFICATION ....................................................................................... 57 12.1 Introduction ............................................................................................................................ 57 12.2 Comparison of Historical Drilling Data with Recent Drilling Data .......................................... 58 12.3 Sampling and Assaying ......................................................................................................... 61 12.4 Database................................................................................................................................ 61 13 MINERAL PROCESSING AND METALLURGICAL TESTING ......................... 62 13.1 Colemanite Production .......................................................................................................... 62 13.2 Boric Acid Production ............................................................................................................ 63 13.3 Conclusions and Recommendations ..................................................................................... 63 14 MINERAL RESOURCE ESTIMATES ................................................................ 64 14.1 Introduction ............................................................................................................................ 64 14.2 Deposit modelling .................................................................................................................. 64 14.2.1 Available Data ............................................................................................................. 64 14.2.2 Mineralisation Zone Modelling ..................................................................................... 66 14.2.3 Structural Assessment ................................................................................................ 69 14.3 Compositing ........................................................................................................................... 69 14.4 Statistical Analysis ................................................................................................................