Page 27 TIMMINS MA THESON CAMP Page 26 By Gregory Reynolds Gowest Gold Ltd intends to begin mine development at its Frankfeld East Property towards the end of 2013 with mining operations commencing before 2015 Gowest is a Canadian gold develop ment and exploration company fo cused on the delineation and develop ment of its 100 owned Frankfeld East gold deposit part of its North T immins Gold Project NTGP Gowest is also exploring additional gold tar gets on the 93 square kilo metre NTGP land package it controls and continuing to evaluate acquisition tar gets in the vicinity of the Pipestone Fault area part of the prolifc T immins Gold Camp On Nov 20 2012 Gow est announced an updated NI 43101 resource which totalled approximately 15 million ounces Au at the Frank feld deposit This updated resource contained ap proximately 945000 ounces of gold in the Indicate d category 60 million tonnes at a grade of 49 gt Au and 537000 ounces of gold in the Inferred category 37 million tonnes at a grade of 42 gt Au Gowest has entered into a memoran dum of understanding with an existing third party processor in the T immins area which has suffcient milling ca pacity to be able to process ore from the Frankfeld East gold deposit for a fee The current plan is to produce a highgrade gold concentrate to be sold through a separate of ftake agreement Greg Romain Gowest s president and CEO stated we have been extremely pleased with the ongoing discussions taking place with potential partners The results of our Preliminary Eco nomic Assessment PEA demon Milling agr eement gives GOWEST gr een light for production in 2014 strated the potential at a gold price of 1500 per ounce for Gowest to generate cash fows of greater than 50 million per year from the produc tion of 95000 ounces of gold starting within 30 months This scenario was achieved with an estimated capital cost of approxi mately 60 million giving an inter nal rate of return on all equity basis of 50 and a payback of 12 years W e are now reviewing fnancing op tions and completing a more detailed evaluation to further defne the opti mal parameters for a short term cus tom milling arrangement W e look forward to providing updates as we move into 2013 Comprising of 42 claims on 2444 hectares the Frankfeld East deposit is open along strike and at depth It is located about 42 km northeast of Downtown T immins in the southwest part of T ully T ownship which sits s on the northern border of the city It is accessed by a 15 km all weather road leading east from Highway 655 In preparation for negotiating a fnal agreement with the third party proces sor in the frst half of 2013 Gowest is preparing a number of engineering metallur gical and mine develop ment studies aimed at establishing appropriate technical operational and economic parameters required by all parties W ith the baseline en vironmental study completed at the Frankfeld East deposit this past sum mer current plans include Gowest se curing appropriate mining permits to enable it to begin mine development at Frankfeld East towards the end of 2013 As previously reported Gowest has focused on a number of potential ways to optim ize the economics of mining and processing operations from the Frankfeld East deposit This includes a recently completed com mercial test of ore sorting equipment by Commodas Ultrasort Inc a world leader in the production of ore sorting equipment This full scale ore sorting test cle arly demonstrated signifcant economic opportunities including a reduction in the quantities of rock being handled while more than dou bling the gold content in the crushed material sent to the fnal processing facilities At the same tim e other detai led met allur gical studies have also demon strated the potential for the production of a concentra te from the Frankfeld East ore with a grade of more than 90 grams of gold per tonne Either or both of these approaches will enhance the economics of the alread y robust third party processing plan In 2012 Gowest land position in creased to 93 sq km Environmen tal baseline work was compl eted for mine permitting Positive fullscale ore sorting optimization test was con ducted Resource expansion drilling program confrms gold mineralization to at least 14 km along strike and 11 km vertical depth deposit remains openFirst Nations Memorandum of Understanding agreement was ex ecuted Gowest boasts a highly experienced and capable management team and board with a proven track record of success in all key areas including fnance exploration mine develop ment business development and gold production Gowest One focus Gold TIMMINS MA THESON CAMP