T SX WM T SX WM M a rt inie r e P r oje ct I n it ia l R e sou r c e E s t im a t e A ssu m p t ion s a n d Not e s T h e In d e p e n d e n t a n d Q u a l i fi e d P e r s o n fo r th e M i n e r a l R e s o u r c e E s ti ma te a s d e fi n e d b y NI 43 1 0 1 is Mr Ma r c J u t r a s P En g MA S c P r in c ip a l o f G i n to Consul t i ng I nc T he e f f e c t i v e d a t e of t he E st i m a t e i s M a r c h 27 2018 T he se m i ne r a l r e sour c e s a r e not m i ne r a l r e se r v e s a s t he y d o not ha v e d e m onst r a t e d e c onom i c v i a b i l i t y W h i l e t h e res u l t s a re p res en t ed u n d i l u t ed t h e rep o rt ed m i n era l res o u rc es a re c o n s i d ered t o h a v e rea s o n a b l e p ro s p ec t s f o r ev e n tu a l e c onom i c e x t r a c t i on T he ne a r sur f a c e m i ne r a l r e sour c e i s c onst r a i ne d w i t hi n a n op t i m i z e d op e n p i t s h el l w h i l e t h e b el o w p i t p o rt i o n o f t h e m i n era l res o u rc e i s rep o rt ed a t a n el ev a t ed g o l d g ra d e c u t o ff T he e st i m a t e i nc l ud e s se v e r a l d i sc r e t e z one s sub z one s of m i ne r a l i z a t i on R es o u rc es w ere c o m p i l ed a t g o l d c u t of f g r a d e s of 0 5 0 7 a nd 1 0 g t g ol d f or t he e v a l ua t i on of op e n p i t e st i m a t e s a nd a t 2 0 2 5 a nd 3 0 g t g ol d f or e v a l ua t i on of und e r g r ound e st i m a t e s se e t a b l e b e l ow T he b a se c a se r e sour c e e s ti ma te i s r e p o r te d a t a c u t of f g r a d e of 0 5g t g ol d f or r e sour c e s c onst r a i ne d w i t hi n t he op t i m i z e d p i t she l l a nd 2 5 g t g ol d f or r e sour c e s out si d e t he p i t she l l Cut of f c a l c ul a t i ons f or c a l c ul a t i ng t he b a se c a se r e sour c e use d a l l U S D f i g ur e s 1 80 t f or ov e r b ur d e n r e m ov a l 2 00 t f or op e n p i t m i ni ng 50 00 t f or und e r g r ound m i ni ng 17 00 t f or P r oc e ssi ng f or b ot h op e n p i t a nd und e r g r ound sc e na r i o s 2 50 t f or G A c ost s a nd m i l l r e c ov e r y r a t e s of 91 G o l d r e c o ve r y r a te s o f u p to 9 1 h a ve b e e n a c h i e ve d i n l i mi te d te s ti n g fo r th e B u g d e p o s i t T h e B u g d e p o s i t c o mp r i s e s th e ma j o ri t y o f t h e es t i m a t ed res o u rc e G o l d rec o v eri es of up t o 97 t o c onc e nt r a t e a nd 72 ov e r a l l ha v e b een a c h i ev ed i n p rel i m i n a ry t es t i n g o f t h e M a rt i n i ere We s t D e p o s i t For t he op e n p i t sc e na r i o p i t sl op e s of 50 d e g r e e s w e r e a ssum e d i n b e d r oc k a nd 25 d e g r e e s i n ov e r b ur d e n Ca l c ul a t i ons use d a U S D CA D e x c ha ng e r a t e of 1 22 a nd a g ol d p r i c e of U S 1 300 i n k e e p i ng w i t h c ur r e nt l ong t e r m c onse nsus e st i m at e s Cut of f g r a d e c a l c ul a t i ons w oul d ha v e t o b e r e e va l u a te d i n l i g h t o f fu tu r e p r e va i l i n g ma r k e t c o n d i ti o n s me ta l p r i c e s e x c h a n g e r a t e a nd m i ni ng c ost s D e nsi t y v a l ue s w e r e e st i m a t e d f or a l l l i t hol og i c a l uni t s f r om m e a sur e d sa m p l e s D e nsi t y v a l ue s f or t he m i ne r a l i z e d z one s w e r e ca l c u l a te d fr o m a me a s u r e d d e n s i ty d a ta b a s e T he r e sour c e w a s e st i m a t e d usi ng V ul c a n sof t w a r e T he e st i m a t e i s b a se d on r e sul t s f r om 490 d i a m ond d r i l l hol e s 91 988 m Th e c ut of f d a t e f or t he d r i l l hol e d a t a b a se i s J a nua r y 30 2018 H i g h g r a d e c a p p i ng w a s d one on c om p osi t e d a ssa y d a t a a nd e st a b l i she d on a p e r z one b a si s Com p osi t i ng w a s d one on d r i l l hol e i nt e r c e p t s f a l l i ng w i t hi n t he m i ne r a l i z e d z one s c om p osi t e l e ng t h of 1 0 m R e sour c e s w e r e e v a l ua t e d f r om c om p osi t e d a nd c a p p e d d r i l l hol e a ssa y s usi ng 3 p a ss or d i na r y k r i g i ng a nd i nv e r se d i st a nc e sq ua r e d i nt e r p ol a t i on m e t hod s i n a b l oc k m od e l b l oc k si z e 2 5 x 2 5 x 2 5 m T h e M i n era l R es o u rc es p res en t ed h erei n a re c a t eg o ri z ed a s I n d i c a t ed a n d I n f erred b a s ed o n d ri l l s p a c i n g a n d g eo l o g i c a l a n d g r ad e c ont i nui t y B a se d on t he na t ur e of t he m i ne r a l i z a t i on a m a x i m um a v e r a g e d i st a nc e of c om p osi t e s of 40 m w a s use d f or I nd i c a t e d r e sour c e s i n t he B ug D e p osi t a nd 35 m i n t he M a rt i n i ere We s t D e p o s i t O u n c e t ro y m et ri c t onne s x g r a d e 31 10348 Ca l c ul a t i ons use d m e t r i c uni t s m et res t onne s an d g t M e t a l c ont e nt s a r e p r e se nt e d i n ounc e s T h e n u m b er o f m et ri c t onne s a nd c ont a i ne d ounc e s w e r e r ound e d t o t he ne a r e st t housa nd A ny d i sc r e p a nc i e s i n t he t ot a l s a r e d ue t o r ound i ng e f f e c t s T h e q u a n t i t y a n d g ra d e o f rep o rt ed I n f erred res o u rc es i n t h i s M i n era l R es o u rc e E s t i m a t e a re u n c ert a i n i n n a t u re a n d t h ere h a s b e e n i nsuf f i c i e nt e x p l or a t i on t o d e f i ne t he se I nf e r r e d r e sour c e s a s I nd i c a t e d or M e a sur e d a nd i t i s unc e r t a i n i f f ur t he r e x p l or a t i on w i l l r e sul t i n up g r a d i ng t he m t o t he se c a t e g or i e s CI M d e f i ni t i ons a nd g ui d e l i ne s f or m i ne r a l r e sour c e s ha v e b e e n f ol l ow e d T he Q ua l i f i e d P e r sons a r e not a w a r e of a ny k now n e nv i r onm e n t a l p e r m i t t i ng l e g a l t i t l e r e la t e d t a xa t io n s o c io p o lit ic a l o r m a r k e t i ng i ssue s or a ny ot he r r e l e v a nt i ssue t ha t c oul d m a t e r i a l l y a f f e c t t he M i ne r a l R e sour c e E 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