INDEPENDENT TECHNICAL REPORT MINERAL RESOURCE ESTIMATE ZOROASTRIAN SOUTH DEPOSIT KALGOORLIE NORTH PROJECT IN WESTERN AUSTRALIA February 2017 Prepared For: Excelsior Gold Ltd © Cube Consulting Pty Ltd, Perth, Western Australia Cube Project: www.cubeconsulting.com.au Independent Technical Report – February 2017 Excelsior Gold Ltd – Zoroastrian South Pipeline Deposit Prepared By: Rindra Le Grange …………………...…………………… Prepared By: Mike Millad BSc. MAusIMM …………………...…………………… Reviewed By: Patrick (Rick) Adams BSc. FAusIMM (CP). Principal Geologist Cube Consulting Pty Ltd distribution: Number of Copies Excelsior Gold 1 (electronic) Cube Consulting 1 (electronic) Cube Consulting Pty Ltd ABN 84 094 321 829 Level 4, 1111 Hay Street West Perth WA 6005 Phone: +61 8 9442 2111 Website: www.cubeconsulting.com.au Mineral Resource Estimate Page 2 of 123 Independent Technical Report – February 2017 Excelsior Gold Ltd – Zoroastrian South Pipeline Deposit TABLE OF CONTENTS 1.0 INTRODUCTION ......................................................................................................................... 16 1.1 Request for Technical Report ...................................................................................................... 16 1.2 Purpose of Technical Report Preparation ..................................................................................... 16 1.3 Sources of Information and Data .................................................................................................. 17 1.4 Scope of Personal Inspections of the Property ............................................................................. 18 2.0 RELIANCE ON OTHER EXPERTS .............................................................................................. 19 3.0 PROPERTY DESCRIPTION AND LOCATION ............................................................................. 20 3.1 Project Location ........................................................................................................................... 20 3.2 Tenement Details ........................................................................................................................ 21 3.2.1 Royalty, Duties and Other Fees ............................................................................................... 21 4.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY22 4.1 Project Access ............................................................................................................................. 22 4.2 Physiography and Climate ........................................................................................................... 22 4.3 Local Infrastructure and Services ................................................................................................. 22 5.0 HISTORY .................................................................................................................................... 23 6.0 GEOLOGICAL SETTING ............................................................................................................. 25 6.1 Introduction ................................................................................................................................. 25 6.2 General Project Geology .............................................................................................................. 25 7.0 MINERALISATION ...................................................................................................................... 27 8.0 EXPLORATION ........................................................................................................................... 28 8.1 Introduction ................................................................................................................................. 28 8.2 Exploration Potential .................................................................................................................... 28 9.0 DRILLING .................................................................................................................................... 29 9.1 Drilling by Previous Owners ......................................................................................................... 29 9.2 Drilling by Current Owners ........................................................................................................... 30 10.0 SAMPLING METHOD AND APPROACH ..................................................................................... 32 10.1 Introduction ................................................................................................................................. 32 10.2 Historic Sampling and Assay Data ............................................................................................... 32 10.2.1 Diamond Core Drilling .............................................................................................................. 32 10.2.2 Reverse Circulation Drilling ...................................................................................................... 32 10.3 EXG Sampling and Assay Data ................................................................................................... 32 10.3.1 Reverse Circulation Drilling ...................................................................................................... 32 11.0 SAMPLE PREPARATION, ANALYSES & SECURITY .................................................................. 34 11.1 Introduction ................................................................................................................................. 34 11.2 EXG Quality Control and Quality Analysis .................................................................................... 34 11.2.1 Sample “Blanks” ...................................................................................................................... 34 11.2.2 Standards ................................................................................................................................ 34 Mineral Resource Estimate Page 3 of 123 Independent Technical Report – February 2017 Excelsior Gold Ltd – Zoroastrian South Pipeline Deposit 11.2.3 Duplicates................................................................................................................................ 35 11.3 Sample Shipments to the Analytical Laboratories ......................................................................... 35 11.4 EXG RC Sample Preparation ....................................................................................................... 35 11.5 EXG RC Sample Analysis ............................................................................................................ 35 11.6 Conclusion .................................................................................................................................. 35 12.0 DATA VERIFICATION ................................................................................................................. 37 12.1 Project Database ......................................................................................................................... 37 12.2 Topographical .............................................................................................................................. 37 12.3 Bulk Density ................................................................................................................................ 38 12.4 Downhole Survey ........................................................................................................................ 39 12.5 Collar Reduced Level Validation .................................................................................................. 39 13.0 ADJACENT PROPERTIES .......................................................................................................... 40 14.0 MINERAL PROCESSING & METALLURGICAL TESTING ........................................................... 41 15.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ................................................. 42 15.1 Mineral Resource Estimates ........................................................................................................ 42 15.1.1 Geological Interpretation and Modelling ................................................................................... 42 15.1.2 Coding and Compositing .......................................................................................................... 44 15.1.3 Statistical Analysis and Gold Grade Top Cuts .......................................................................... 47 15.1.4 Variography ............................................................................................................................. 50 15.1.5 Block Modelling – Choice of Block Size and Orientation ........................................................... 54 15.1.6 Block Model Definition ............................................................................................................. 54 15.1.7 Block Modelling – Localised Uniform Conditioning.................................................................... 55 15.1.8 Gold Grade Model Validation ................................................................................................... 59 15.1.9 Density and Oxidation .............................................................................................................. 63 15.1.10 Mineral Resource Reporting....................................................................................................