Mupane Gold Project Independent Technical Report on the Mupane Gold Mine Prepared by MSA Geoservices (Pty) Ltd on behalf of: Carlaw Capital III Corp. Author(s): Justin Glanvill Associate Consultant BSc (Hons), GDE, MGSSA, Pr Sci. Nat Joel Mungoshi Associate Consultant HND, BSc (Hons), MDP, MBL, MSAIMM John Sexton Associate Consultant BSc, BCom, MBL Dr Markus Reichardt Associate Consultant MA, PhD Date: 10 May 2011 Project Code: J2196 Primary Author Supervising Principal Justin Glanvill Rob Croll Project name Page: i NI 43-101 Report – 10 May 2011 Table of Contents 1 SUMMARY ...................................................................................................................... 14 2 INTRODUCTION AND TERMS OF REFERENCE .......................................................... 20 2.1 Scope of Work ........................................................................................................ 20 2.2 Principal Sources of Information ............................................................................. 20 2.3 Qualifications, Experience and Independence ........................................................ 20 2.4 Current Personal Inspection ................................................................................... 21 3 RELIANCE ON OTHER EXPERTS ................................................................................. 22 4 PROPERTY DESCRIPTION AND LOCATION ............................................................... 23 4.1 Area and Demarcation of Licences ......................................................................... 23 4.2 Surface Rights ........................................................................................................ 25 4.3 Issuer‟s Interest ...................................................................................................... 25 4.4 Royalties ................................................................................................................ 27 4.5 Environmental Liabilities ......................................................................................... 27 4.6 Permits ................................................................................................................... 27 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................................................................................................ 28 5.1 Access .................................................................................................................... 28 5.2 Climate and Vegetation .......................................................................................... 28 5.3 Local Resources and Infrastructure ........................................................................ 28 6 HISTORY ........................................................................................................................ 30 6.1 Mupane .................................................................................................................. 30 6.2 Signal Hill ............................................................................................................... 31 7 GEOLOGICAL SETTING ................................................................................................ 33 7.1 Regional Geology ................................................................................................... 33 7.2 Local Geology ........................................................................................................ 34 7.3 Deposit Geology ..................................................................................................... 36 7.3.1 Mupane ML ................................................................................................. 36 7.3.1.1 Tau ............................................................................................................. 36 7.3.1.2 Tholo ........................................................................................................... 37 7.3.1.3 Kwena......................................................................................................... 37 7.3.1.4 Tawana (previously known as area 1E) ..................................................... 37 7.3.2 Signal Hill and Molomolo MLs ..................................................................... 37 7.3.2.1 Signal Hill ................................................................................................... 37 7.3.2.2 Molomolo .................................................................................................... 38 7.3.3 Shashe ML.................................................................................................. 39 7.3.3.1 Golden Eagle .............................................................................................. 39 8 DEPOSIT TYPE .............................................................................................................. 42 Mupane Gold Project NI 43-101 Technical Report – 10 May 2011 1 9 MINERALISATION .......................................................................................................... 43 10 EXPLORATION............................................................................................................... 44 10.1 History .................................................................................................................... 44 10.2 Current Exploration................................................................................................. 49 10.3 Planned Exploration Work and Data Review .......................................................... 49 11 DRILLING ....................................................................................................................... 52 11.1 2006 Drilling on Mupane Prospect .......................................................................... 52 11.2 2009 Drilling ........................................................................................................... 52 11.3 Drilling Methods ...................................................................................................... 53 11.3.1 Blast Hole Drilling ........................................................................................ 53 11.3.2 Reverse Circulation Drilling ......................................................................... 54 11.3.3 Diamond Drilling ......................................................................................... 56 11.4 Density Measurements ........................................................................................... 56 11.4.1 Background ................................................................................................. 56 11.4.2 Methodology ............................................................................................... 57 11.5 Downhole Survey ................................................................................................... 61 11.6 Downhole Geophysical Logging ............................................................................. 61 12 SAMPLING METHOD AND APPROACH ....................................................................... 62 12.1 RC and Blast Hole Sampling .................................................................................. 62 12.2 Diamond Core Sampling ........................................................................................ 62 13 SAMPLE PREPARATION, ANALYSES AND SECURITY .............................................. 63 13.1 Sample Preparation ................................................................................................ 63 13.2 Sample Analysis ..................................................................................................... 65 13.3 Sample Security ..................................................................................................... 65 13.4 Laboratory Certification .......................................................................................... 65 13.5 Statement of Opinion on the Sample Preparation, Security and Analysis ............... 65 14 DATA VERIFICATION .................................................................................................... 67 14.1 Quality Assurance .................................................................................................. 67 14.2 Quality Control ........................................................................................................ 67 14.2.1 External Checks .......................................................................................... 67 14.2.2 Analytical blanks and standards .................................................................. 68 14.2.3 Field duplicates ........................................................................................... 71 14.2.4 Pulp duplicates ........................................................................................... 71 14.3 Overall Interpretation of QAQC Program ................................................................ 72 15 ADJACENT PROPERTIES ............................................................................................. 74 15.1 Prospecting Licence 211/2010 (Matsiloje). ............................................................. 77 15.2 Jim‟s Luck. ............................................................................................................. 77 15.3 Rainbow. ...............................................................................................................