Technical Update on the Posse Gold Project, Brazil, September 2018 Prepared for: Amarillo Gold Corporation Prepared by: SRK Project Number: ARO001 Qualified Persons: Anthony Stepcich, FAusIMM(CP) Keith Whitehouse, MAusIMM CP(Geo) Date of Report: 12 September 2018 Effective Date: 12 September 2018 SRK Consulting Page i Date and Signature Page SRK Consulting (Australasia) Pty Ltd Level 1, 10 Richardson Street West Perth Western Australia, 6005 Australia Technical Update on the Posse Gold Project, Brazil, September 2018 Project Manager: Anthony Stepcich, FAusIMM(CP) Date of Report: 12 September 2018 Effective Date: 12 September 2018 Mr Anthony Stepcich, FAusIMM(CP) Principal Consultant (Project Evaluations) SRK Consulting (Australasia) Pty Ltd Qualified Person (QP) Mr Keith Whitehouse, MAusIMM CP(Geo) Director Australian Field Exploration Services Pty Ltd (AEFS) Qualified Person (QP) STEP/WHIT/wulr ARO001_Posse Gold Project - NI 43 101 Technical Report_Rev2.docx 12 September 2018 SRK Consulting Page ii Important Notice This report was prepared as a National Instrument 43-101 Technical Report for Amarillo Gold Corporation (Amarillo) by SRK Consulting (Australasia) Pty Ltd (SRK). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in SRK’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, including without limitation, those sources listed in Section 3 - Reliance on Other Experts, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Amarillo subject to the terms and conditions of its contract with SRK and relevant securities legislation. The contract permits Amarillo to file this report as a Technical Report with Canadian securities regulatory authorities pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. SRK accepts no responsibility with respect to the opinions of those experts listed in Section 3 - Reliance on Other Experts nor determinations made by the Company with respect its obligation to file this Technical Report, or subsequent technical reports, nor any determinations as to the materiality of a mineral project to Amarillo, and SRK is under no obligation to update this Technical Report, except as may be agreed to between Amarillo and SRK by contract from time to time. The user of this document should ensure that this is the most recent Technical Report for the property as it is not valid if a new Technical Report has been issued. STEP/WHIT/wulr ARO001_Posse Gold Project - NI 43 101 Technical Report_Rev2.docx 12 September 2018 SRK Consulting Page iii Table of Contents Important Notice ........................................................................................................................................... ii 1 Executive Summary ..................................................................................................... 1 1.1 Property Description and Ownership .................................................................................................. 1 1.2 Geology and Mineralization ................................................................................................................ 1 1.3 Status of Exploration ........................................................................................................................... 1 1.4 Mineral Resource Estimate ................................................................................................................. 2 1.5 Geotechnical Engineering ................................................................................................................... 2 1.6 Mining and Operations ........................................................................................................................ 3 1.7 Recoveries .......................................................................................................................................... 3 1.8 Operating and Capital Costs ............................................................................................................... 4 1.8.1 Operating Costs ...................................................................................................................... 4 1.8.2 Capital Costs ........................................................................................................................... 4 1.9 Economic Analysis .............................................................................................................................. 5 1.10 Mineral Reserve Estimate ................................................................................................................... 6 1.11 Comparison to Previous Studies ......................................................................................................... 7 1.12 Qualified Person’s Conclusions and Recommendations .................................................................... 7 1.12.1 Conclusions ............................................................................................................................. 7 1.12.2 Recommendations .................................................................................................................. 8 2 Introduction ................................................................................................................ 10 3 Reliance on Other Experts ......................................................................................... 11 4 Property Description and Location ........................................................................... 12 5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ......... 16 5.1 Accessibility ....................................................................................................................................... 16 5.2 Climate .............................................................................................................................................. 16 5.3 Local Resources ............................................................................................................................... 16 5.4 Infrastructure ..................................................................................................................................... 16 5.5 Physiography .................................................................................................................................... 17 6 History ......................................................................................................................... 18 7 Geological Setting and Mineralization ...................................................................... 20 7.1 Local Geology .................................................................................................................................. 20 8 Deposit Types ............................................................................................................. 23 9 Exploration .................................................................................................................. 24 10 Drilling ......................................................................................................................... 25 11 Sample Preparation, Analyses, and Security ........................................................... 26 12 Data Verification ......................................................................................................... 27 13 Mineral Processing and Metallurgical Testing ......................................................... 28 STEP/WHIT/wulr ARO001_Posse Gold Project - NI 43 101 Technical Report_Rev2.docx 12 September 2018 SRK Consulting Page iv 14 Mineral Resource Estimates ...................................................................................... 29 14.1 Historical Reports .............................................................................................................................. 30 14.2 2018 Mineral Resource ..................................................................................................................... 30 14.2.1 Data Used ............................................................................................................................. 30 14.2.2 Wireframing ........................................................................................................................... 31 14.2.3 Compositing and Statistics .................................................................................................... 33 14.2.4 Variography ........................................................................................................................... 36 14.2.5 Block Model ........................................................................................................................... 40 14.2.6 Interpolation ........................................................................................................................... 41 14.2.7 Model Classification and Reporting ....................................................................................... 42 14.2.8 Mineral Resource .................................................................................................................. 44 14.3 Interpretation and Conclusions