M3-PN160025 Effective Date: July 31, 2016 Issue Date: October 25, 2016 Revision 0 Haile Gold Mine Project NI 43-101 Technical Report Project Update Lancaster County, South Carolina Daniel H. Neff, PE Erin L. Patterson, PE Lee “Pat” Gochnour, MMSAQP John Marek, PE Carl Burkhalter, PE Jonathan Moore, BSc. Geology David Carr, BEng. Metallurgical John Tinucci, PhD, PE Robert P. Schreiber, P.E., D.WRE, BCEE Patrick Williamson, MSc Geology, MMSAQP Joanna Poeck, SME-RM, MMSAQP Jeff Osborn, BEng Mining, MMSAQP Scott McDaniel, BSc. Metallurgical Engineering Grant Malensek, MEng, PEng/PGeo Prepared For: HAILE GOLD MINE PROJECT FORM 43-101F1 TECHNICAL REPORT DATE AND SIGNATURES PAGE The effective date of this report is July 31, 2016. The issue date of this report is October 25, 2016. See Appendix A, Feasibility Study 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-PN160025 25 October 2016 Revision 0 i HAILE GOLD MINE PROJECT FORM 43-101F1 TECHNICAL REPORT HAILE GOLD MINE PROJECT FORM 43-101F1 TECHNICAL REPORT 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 IMPORTANT NOTE .......................................................................................................................................... 1 1.2 SUMMARY ...................................................................................................................................................... 1 1.3 OPEN PIT KEY DATA ..................................................................................................................................... 1 1.4 SCOPE ........................................................................................................................................................... 3 1.5 PROPERTY AND LOCATION ............................................................................................................................ 3 1.6 SITE LAYOUT ................................................................................................................................................. 4 1.7 INFRASTRUCTURE .......................................................................................................................................... 7 1.8 OWNERSHIP ................................................................................................................................................... 7 1.9 GEOLOGY ...................................................................................................................................................... 7 1.10 MINERAL RESOURCES AND RESERVES ......................................................................................................... 8 1.11 MINING .......................................................................................................................................................... 9 1.12 METALLURGY AND PROCESS PLANT ........................................................................................................... 11 1.13 TAILING FACILITY ........................................................................................................................................ 13 1.14 ENVIRONMENTAL AND PERMITTING ............................................................................................................. 13 1.15 CAPITAL COSTS .......................................................................................................................................... 13 1.16 OPERATING COST ....................................................................................................................................... 14 1.17 ECONOMIC ANALYSIS .................................................................................................................................. 14 1.18 PROJECT EXECUTION PLAN ........................................................................................................................ 15 1.19 AUTHORS’ CONCLUSIONS AND RECOMMENDATIONS ................................................................................... 16 2 INTRODUCTION ....................................................................................................................................................... 17 2.1 PURPOSE ..................................................................................................................................................... 17 2.2 SOURCES OF INFORMATION ......................................................................................................................... 18 2.3 TERMS OF REFERENCE ................................................................................................................................ 18 2.4 UNITS OF MEASURE ..................................................................................................................................... 19 3 RELIANCE ON OTHER EXPERTS ......................................................................................................................... 20 M3-PN160025 25 October 2016 Revision 0 ii HAILE GOLD MINE PROJECT FORM 43-101F1 TECHNICAL REPORT 4 PROPERTY DESCRIPTION AND LOCATION ...................................................................................................... 21 4.1 PROPERTY LOCATION ................................................................................................................................. 21 4.2 OWNERSHIP ................................................................................................................................................. 23 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............... 24 5.1 ACCESSIBILITY ............................................................................................................................................ 24 5.2 CLIMATE ...................................................................................................................................................... 24 5.3 LAND RESOURCES AND INFRASTRUCTURE .................................................................................................. 24 5.4 PHYSIOGRAPHY ........................................................................................................................................... 24 5.5 LABOR ......................................................................................................................................................... 24 6 HISTORY ................................................................................................................................................................... 25 7 GEOLOGICAL SETTING AND MINERALIZATION ............................................................................................... 27 7.1 REGIONAL, LOCAL AND PROPERTY LOCATION ............................................................................................ 27 7.1.1 Lithology ........................................................................................................................... 29 7.1.2 Structure ........................................................................................................................... 32 7.2 MINERALIZATION ......................................................................................................................................... 32 7.2.1 General Characteristics .................................................................................................. 32 7.2.2 Mineralized Zones ........................................................................................................... 33 8 DEPOSIT TYPES ...................................................................................................................................................... 34 9 EXPLORATION ........................................................................................................................................................ 35 9.1 PRE-ROMARCO ........................................................................................................................................... 35 9.1.1 Geologic Mapping ........................................................................................................... 35 9.1.2 Geophysics ...................................................................................................................... 36 9.1.3 HGM Exploration Program ............................................................................................. 36 10 DRILLING .................................................................................................................................................................