M3-PN170038 October 24, 2017 Revision 0 North Island Copper and Gold Project NI 43-101 Technical Report Preliminary Economic Assessment British Columbia, Canada Laurie Tahija, Q.P. MMSA Daniel Roth, P. Eng. Brian Game, P. Geo Tom Shouldice, P. Eng. Phil Burt, P. Geo. John Nilsson, P. Eng. Ben Wickland, P. Eng. NORTH ISLAND COPPER AND GOLD PROJECT NI 43-101 TECHNICAL REPORT – PRELIMINARY ECONOMIC ASSESSMENT DATE AND SIGNATURES PAGE The effective date of this report is October 24, 2017. The effective date of the North Island Mineral Resource Estimate is March 24, 2017. See Appendix A, Preliminary Economic Assessment Contributors and Professional Qualifications, for certificates of qualified persons. These certificates are considered the date and signature of this report in accordance with Form 43-101F1. M3-PN170038 24 October 2017 Revision 0 i NORTH ISLAND COPPER AND GOLD PROJECT NI 43-101 TECHNICAL REPORT – PRELIMINARY ECONOMIC ASSESSMENT NORTH ISLAND COPPER AND GOLD PROJECT NI 43-101 TECHNICAL REPORT PRELIMINARY ECONOMIC ASSESSMENT TABLE OF CONTENTS SECTION PAGE DATE AND SIGNATURES PAGE ..........................................................................................................................................I TABLE OF CONTENTS ......................................................................................................................................................... II LIST OF FIGURES AND ILLUSTRATIONS ...................................................................................................................... VIII LIST OF TABLES ................................................................................................................................................................. XI 1 SUMMARY.............................................................................................................................................................. 1 1.1 PROPERTY DESCRIPTION AND OWNERSHIP ................................................................................................ 1 1.1.1 Mineral Tenures, Surface Rights and Royalties ......................................................... 1 1.1.2 Permits and the Environment ....................................................................................... 1 1.2 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................ 1 1.3 GEOLOGY AND MINERALIZATION ................................................................................................................ 2 1.3.1 Hushamu Deposit........................................................................................................... 2 1.3.2 Red Dog Deposit ............................................................................................................ 2 1.4 DEPOSIT TYPES ......................................................................................................................................... 2 1.5 HISTORY AND EXPLORATION ...................................................................................................................... 3 1.5.1 Hushamu ......................................................................................................................... 3 1.5.2 Red Dog........................................................................................................................... 3 1.6 DRILLING ................................................................................................................................................... 3 1.7 SAMPLE PREPARATION, ANALYSES, AND SECURITY ................................................................................... 4 1.8 DATA VERIFICATION................................................................................................................................... 4 1.9 MINERAL RESOURCE ESTIMATE ................................................................................................................. 4 1.10 MINING METHOD ........................................................................................................................................ 5 1.11 MINERAL PROCESSING AND METALLURGICAL TESTING .............................................................................. 6 1.12 PROCESSING ............................................................................................................................................. 6 1.13 INFRASTRUCTURE ...................................................................................................................................... 7 1.13.1 Power Supply ................................................................................................................. 7 1.13.2 Water Availability ........................................................................................................... 7 1.13.3 Mine Waste Storage Facility ......................................................................................... 7 1.13.4 Transportation and Logistics ....................................................................................... 7 1.14 CAPITAL AND OPERATING COSTS .............................................................................................................. 8 1.14.1 Initial Capital Expenditures ........................................................................................... 8 1.14.2 Operating Costs ............................................................................................................. 8 M3-PN170038 24 October 2017 Revision 0 ii NORTH ISLAND COPPER AND GOLD PROJECT NI 43-101 TECHNICAL REPORT – PRELIMINARY ECONOMIC ASSESSMENT 1.15 ECONOMIC ANALYSIS ................................................................................................................................ 9 1.16 CONCLUSIONS AND RECOMMENDATIONS ................................................................................................... 9 2 INTRODUCTION .................................................................................................................................................. 11 2.1 PURPOSE AND BASIS OF REPORT ............................................................................................................ 11 2.2 SOURCES OF INFORMATION ..................................................................................................................... 11 2.3 QUALIFIED PERSONS ............................................................................................................................... 11 2.4 TERMS AND DEFINITIONS ......................................................................................................................... 12 3 RELIANCE ON OTHER EXPERTS ..................................................................................................................... 14 4 PROPERTY DESCRIPTION AND LOCATION ................................................................................................... 15 4.1 PROPERTY AREA AND LOCATION ............................................................................................................. 15 4.2 CLAIMS AND TITLE ................................................................................................................................... 15 4.3 ENVIRONMENTAL LIABILITY, PERMITS, BONDS AND OTHER SIGNIFICANT RISK FACTORS .......................... 23 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY............... 24 6 HISTORY .............................................................................................................................................................. 25 6.1 HUSHAMU ................................................................................................................................................ 25 6.2 RED DOG ................................................................................................................................................. 26 7 GEOLOGICAL SETTING AND MINERALIZATION ............................................................................................ 29 7.1 REGIONAL GEOLOGY ............................................................................................................................... 29 7.2 PROPERTY GEOLOGY: HUSHAMU ............................................................................................................ 31 7.2.1 Alteration: Hushamu .................................................................................................... 32 7.2.2 Structure: Hushamu..................................................................................................... 32 7.2.3 Mineralization: Hushamu ............................................................................................ 32 7.3 PROPERTY GEOLOGY: RED DOG ............................................................................................................. 33 7.3.1 Alteration: Red Dog ..................................................................................................... 35 7.3.2 Structure: Red Dog ...................................................................................................... 37 7.3.3 Mineralization: Red Dog .............................................................................................. 37 8 DEPOSIT TYPES ................................................................................................................................................. 39 9 EXPLORATION ...................................................................................................................................................