Reserves & Resources

Mineral Reserves

Reserves at US$1,200/oz Au

Mineral Resources

Resources at US$1,400/oz Au

1. Mineral Resource is inclusive of Mineral Reserve.
2. Mineral Reserve is calculated at a gold price of C$1,500 per ounce.
3. Mineral Resource is calculated at a gold price US $1,400 per oz.
4. US$:CDN$ exchange rate is 0.80.
5. Metallurgical process recovery for gold is 94%.
6. Resource Mine and Mill Cost C$141.52 per ton.
7. CIM definitions were followed for the Mineral Resource Estimate.
8. Mineral Resource include resource modeling dilution to a minimum width of four feet or the vein width, whichever is greater.
9. Mineral Reserve includes mining dilution and is constrained to a five foot minimum mining width.
10. Cut off grade for the Resource is 0.09 opt Au (3.09 grams per tonne).
11. Cut off grade for the Reserve is 0.13 opt Au which includes a mining cost of C$69/ton, processing cost of C$28/ton, G&A cost of C$45/ton and sustaining development cost of C$42/ton.
12. Mineral Resource and Reserve tonnage calculations used a bulk density 0.086 tons/cu. ft.
13. Mining losses of 2% have been applied to the designed mine excavations, and no additional unplanned dilution has been applied.
14. The effective date for Mineral Reserve is June 30, 2016.
15. The effective date for Mineral Resources is February 14, 2017.
16. Mineral Resources which are not mineral reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.
17. The quantity and grade of reported Inferred Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
18. The Mineral Resources in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.

True North Tailings

Notes to True North Tailings Mineral Reserve

1. Tailings Mineral Resource is inclusive of Mineral Reserves.
2. Tailings Mineral Reserve estimate is based on tailings located at True North produced by previous operators to Havileh.
3. Tailings Mineral Reserve was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
4. No mining losses have been applied to the designed historic tailing excavations and no additional unplanned dilution has been included.
5. Contained metal may differ due to rounding.
6. Cut-off grade = 0.026 opt Au (0.89 g/t Au) for 2016 to 2018 and 0.020 opt Au (0.69 g/t Au) for 2019 to 2023.
7. A dry bulk density of 0.044 tons per cubic foot was utilized in the tailings Mineral Reserve tonnage calculation.

True North Tailings

Notes to True North Tailings Mineral Resource

1. Tailings Mineral Resource is inclusive of Tailings Mineral Reserve.
2. Tailings Mineral Resource estimate is based on tailings located at True North produced by previous operators to Havileh.
3. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
4. Mineral Resource was estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
5. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral Resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured Mineral Resource category.
6. Contained metal may differ due to rounding.
7. Cut-off grade = 0.015 opt Au (0.51 g/t Au).
8. A dry bulk density of 0.044 tons per cubic foot per cubic foot was utilized in the tailings Mineral Resource estimate tonnage calculation.