Report. Independent Expert s Report Endomines AB. Adviser of choice to the world s minerals industry. AMC Project January 2018

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1 AMC Consultants (UK) Limited Registered in England and Wales - Company No Level 7, Nicholsons House Nicholsons Walk, Maidenhead Berkshire SL6 1LD United Kingdom T F E maidenhead@amcconsultants.com W amcconsultants.com Report Independent Expert s Report Endomines AB AMC Project January 2018 Adviser of choice to the world s minerals industry

2 Executive summary AMC Consultants (UK) Limited (AMC) was commissioned by Endomines AB (Endomines) to produce an Independent Expert s Report (IER) for five gold assets (the Mineral Assets) in Idaho County, Idaho, USA. On 22 November 2017, Endomines signed a Letter of Intent (LOI) with TVL Gold 1 LLC (TVL) who currently owns the Mineral Assets, and is currently proceeding towards acquisition of TVL. The Mineral Assets comprise the Friday, Buffalo Gulch, Deadwood, Kimberley, and Rescue projects (the Projects), which are spread out along a 40-mile-long north north-east-striking corridor with Buffalo Gulch at the northern end and Rescue at the south. Historically, Idaho has hosted both placer and hard-rock gold mining activities, and a number of historical mining districts. The Friday, Buffalo Gulch, and Deadwood projects are all located within the Orogrande mining district, with the Kimberley and Rescue projects situated in the Marshall Lake and Warren mining districts respectively. Mineralization at all the Projects is described as mesothermal shear-hosted gold deposits by HRC (HRC, 2017a). The Friday, Buffalo Gulch, and Deadwood projects are associated with the Orogrande and Petsite shear zones. At the Friday project, mineralization is largely focused between two faults: the Friday and Monday faults, with higher grade concentrations occurring in proximity to a dacite dyke. Gold mineralization occurs as both quartz-gold veins and disseminations within the hydrothermally altered zones. Geological investigations at Buffalo Gulch and Deadwood has been focused on the oxide mineralization, with limited investigation of the underlying sulphide mineralization. Oxide mineralization is defined as sub-horizontal bodies with possible supergene enrichment in proximity to the oxide-sulphide interface. At the Kimberley project three distinctive styles of mineralization have been identified comprising quartz-gold veins, skarn, and gold-bearing mica carbonate schist. Mineralization at Rescue comprises a quartz-gold vein related to infilling of a fault or shear. Each of the Projects is at various stages of advancement, with Friday and Buffalo Gulch at a more advanced project stage with Mineral Resources estimated in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) reporting code, for TVL in 2017 by Hard Rock Consulting LLC (HRC). No current Mineral Resources are reported for the Deadwood, Kimberley, or Rescue properties. Significant exploration activities have been undertaken at the Projects in the 1980s and 1990s by previous owners of the Mineral Assets. More recent drilling between 2009 to 2014 was undertaken by Premium Exploration USA Inc at the Friday, Buffalo Gulch, and Deadwood projects. The Mineral Assets all suffer from a lack of supporting documentation and data pertaining to the older phases of exploration work (pre-2009), in particular quality assurance and quality control (QA/QC) and density measurement data. The lack of supporting information for the older periods of exploration undermines the confidence that can be placed on the sample databases, and consequentially the Mineral Resource estimates based on those databases. In 2017, HRC carried out Mineral Resource estimates for the Friday and Buffalo Gulch projects. As part of this Independent Expert s Report (IER), AMC carried out an independent review of the Mineral Resource estimation methods and resultant block models. AMC believes the classifications applied to the Friday and Buffalo Gulch Mineral Resources should be re-evaluated, as the classifications proposed by HRC are not adequately supported by the current information, notably the lack of QA/QC and robust density measurements. amcconsultants.com i

3 Quality control The signing of this statement confirms this report has been prepared and checked in accordance with the AMC Peer Review Process. Project Manager Bryan Pullman 8 January 2018 Date Peer Reviewer Andrew Hall 8 January 2018 Date Important information about this report Confidentiality This document and its contents are confidential and may not be disclosed, copied, quoted or published unless AMC Consultants (UK) Limited (AMC) has given its prior written consent. No liability AMC accepts no liability for any loss or damage arising as a result of any person other than the named client acting in reliance on any information, opinion or advice contained in this document. Reliance This document may not be relied upon by any person other than the client, its officers and employees. Information AMC accepts no liability and gives no warranty as to the accuracy or completeness of information provided to it by or on behalf of the client or its representatives and takes no account of matters that existed when the document was transmitted to the client but which were not known to AMC until subsequently. Precedence This document supersedes any prior documents (whether interim or otherwise) dealing with any matter that is the subject of this document. Recommendations AMC accepts no liability for any matters arising if any recommendations contained in this document are not carried out, or are partially carried out, without further advice being obtained from AMC. Outstanding fees No person (including the client) is entitled to use or rely on this document and its contents at any time if any fees (or reimbursement of expenses) due to AMC by its client are outstanding. In those circumstances, AMC may require the return of all copies of this document. Public reporting requirements If a Client wishes to publish a Mineral Resource or Ore / Mineral Reserve estimate prepared by AMC, it must first obtain the Competent / Qualified Person s written consent, not only to the estimate being published but also to the form and context of the published statement. The published statement must include a statement that the Competent / Qualified Person s written consent has been obtained. amcconsultants.com ii

4 Contents Executive summary... i 1 Introduction and terms of reference Terms of reference Sources of information and data Site visit Reliance on other experts Location, access, and infrastructure Friday project Location and access Infrastructure Mineral tenure overview Buffalo Gulch and Deadwood projects Location and access Infrastructure Mineral tenure overview Kimberley project Location and access Infrastructure Mineral tenure overview Rescue project Location and access Infrastructure Mineral tenure overview History Friday project history Buffalo Gulch and Deadwood project history Kimberley project history Rescue project history Geology Friday project Buffalo Gulch project Deadwood project Kimberley project Rescue project Deposit type Exploration Friday project Buffalo Gulch project Deadwood project Kimberley project Rescue project Drilling Friday project Bema Gold Cyprus/Kinross Canden Capital Corp ICMC (Beartooth Platinum) Premium Buffalo Gulch project Deadwood project Kimberley project Rescue project Sample preparation and analysis Friday project amcconsultants.com iii

5 9.1.1 Sample preparation and analysis Quality assurance and quality control Blanks CRMs Duplicates Buffalo Gulch project Sample preparation and analysis Quality assurance and quality control Deadwood, Kimberley and Rescue projects Sample preparation and analysis Quality assurance and quality control Data verification Metallurgical testwork and mineral processing Friday project Buffalo Gulch project Deadwood, Kimberly, and Rescue projects Mineral Resources Friday project Overview Topographic and drillhole collar surveys Downhole surveys Sample database Geological continuity and interpretation Sample data processing Variography and grade continuity Block model parameters Density Grade estimation methodology Model validation Mineral Resource classification Reasonable prospects for eventual economic extraction Reported Mineral Resources Buffalo Gulch project Overview Topographic and drillhole collar surveys Downhole surveys Sample database Geological continuity and interpretation Sample data processing Variography and grade continuity Block model parameters Density Grade estimation methodology Model validation Mineral Resource classification Reasonable prospects for eventual economic extraction Reported Mineral Resources Deadwood project Kimberley project Rescue project Mineral Reserves and mining methods Ore Reserves Mining methods Friday Project Conclusions Friday project Buffalo Gulch project Deadwood project amcconsultants.com iv

6 14.4 Kimberley project Rescue project References Tables Table 8.1 Friday project drill summary Table 8.2 Buffalo Gulch drillhole summary Table 8.3 Deadwood drillhole summary Table 9.1 Friday project sample preparation and assay methods summary Table 9.2 Friday project CRM summary Table 12.1 Friday project database summary Table 12.2 Friday project grade top-cuts Table 12.3 Summary of indicator gold variogram parameters Table 12.4 Summary of low-grade gold variogram parameters Table 12.5 Friday project Mineral Resource estimation search parameters Table 12.6 Mineral Resources classification criteria Table 12.7 Friday project economic parameters Table 12.8 Friday project Mineral Resources summary Table 12.9 Buffalo Gulch database summary Table Buffalo Gulch variogram model parameters Table Buffalo Gulch grade estimation parameters Table Buffalo Gulch global grade comparison Table Buffalo Gulch Mineral Resource classifications Table Buffalo Gulch Mineral Resource pit optimization parameters Table Buffalo Gulch project Mineral Resources summary Table 13.1 Friday project conceptual production schedule Table 13.2 Friday project capital costs Table 13.3 Operating cost unit rates Table 13.4 Life-of-mine operating costs Table 13.5 Life of project after tax cashflow summary Figures Figure 3.1 Friday project location map... 3 Figure 3.2 Friday project claim map... 4 Figure 3.3 TVL projects location map... 6 Figure 3.4 Buffalo Gulch and Deadwood claim map... 7 Figure 8.1 Deadwood drillhole location plan Figure Friday project blank results Figure Friday project blank results Figure Friday project CRM control charts Figure 11.1 Proposed Friday project process flowsheet Figure 12.1 Buffalo Gulch variogram models Figure 12.2 Buffalo Gulch HRC swath plots Figure 13.1 Friday project mine layout amcconsultants.com v

7 1 Introduction and terms of reference 1.1 Terms of reference AMC Consultants (UK) Limited (AMC) was commissioned by Endomines AB (Endomines) to produce an Independent Expert s Report (this IER) for five gold assets (the Mineral Assets) in Idaho, USA. On 22 November 2017, Endomines signed a Letter of Intent (LOI) with TVL Gold 1 LLC (TVL) and is currently proceeding towards acquisition of TVL. AMC has prepared this IER covering geology, exploration, and Mineral Resource estimates for the mineralization found at the Mineral Assets which comprise the Friday, Buffalo Gulch, Deadwood, Kimberley, and Rescue projects (the Projects). 1.2 Sources of information and data Information detailed in this IER was sourced from technical reports provided by Endomines to AMC, including technical reports compiled by previous owners and operators of the Projects. Data for the most recent (2017) Mineral Resource estimates carried out for the Friday and Buffalo Gulch projects by Hard Rock Consulting LLC (HRC) was provided to AMC. Mineral Resource estimation data includes the sample databases, block models, wireframes, and digital terrain model (DTM) surfaces, in addition to the Mineral Resource reports. In preparing this IER, AMC requested Endomines to provide it with all relevant technical, financial, and other information relating to the Mineral Assets required to prepare the IER. Further, AMC is entitled to rely upon and assume the accuracy and completeness of all material information that has been furnished to it by Endomines. AMC has not audited the information provided to it by Endomines, but has aimed to satisfy itself that all of the information has been prepared in accordance with proper industry standards and is based on data that AMC considers to be of acceptable quality and reliability. Where AMC has not been so satisfied, AMC has included comment in this IER. 1.3 Site visit No site-visit was conducted as part of this IER, due to time restrictions and an absence of activity at the Projects. amcconsultants.com 1

8 2 Reliance on other experts The opinions and conclusions presented in this IER are based on the technical reports and supporting data provided by Endomines. Based on its independent review of the information provided to enable the production of this IER, AMC considers that this information provides a reasonable basis to form a professional opinion of the Mineral Assets. Information with reference to property titles, licencing agreements, and environmental liabilities have been supplied to AMC in basic form by Endomines. AMC has not undertaken a legal due diligence of the licencing and claims, ownership or licence boundaries, as part of this IER. However, AMC is not aware of any issues relating to the claim and licence issues around the positioning and boundaries of the licences. Where claim or licencing information is provided in this report by AMC, it is for general reference only. As part of any listing process, Endomines will be required to commission a separate legal due diligence. amcconsultants.com 2

9 3 Location, access, and infrastructure 3.1 Friday project Location and access The Friday project is situated within the Orogrande Mining District (OMD), Idaho County, Idaho, USA, located 10 miles south-south-west of Elk City. The project is centred around the coordinates E N based on the NAD83, Zone 11, BM US coordinate system. A map showing the project location is provided in Figure 3.1. Access to site is via State Highway 14, west of Elk City, joining up with United States Forest Service (USFS) road 233 (Crooked River Road) which follows the Crooked River south towards the project site. From USFS road 233, the site can be accessed either from the north or the south via two easements. Figure 3.1 Friday project location map Source: HRC, 2017a. amcconsultants.com 3

10 3.1.2 Infrastructure Elk City is the nearest urban settlement to the project area, with the population varying seasonally, averaging approximately 300 people. Facilities at Elk City include a medical centre, post office, hotel, gas station, general store, and a gravel air-strip. The city of Lewiston is the major regional urban settlement, with daily flights between Lewiston and Boise, Idaho; Seattle, Washington State; Salt Lake City, Utah. Lewiston also has a sea port on the Snake River which provides access to the Columbia River and the Pacific Ocean Mineral tenure overview The project area is covered by five patented claims and 129 contiguous Federal unpatented mining claims administered by the USFS. The Mineral Resource covered in Section 12.1 of this IER is situated under the five patented claims, with a small portion at the northern end extending into unpatented claims NWS 1 NWS 5 held by Premium Exploration USA Inc (Premium) (Figure 3.2). Figure 3.2 Friday project claim map Source: HRC, 2017a. amcconsultants.com 4

11 TVL entered into a mineral lease agreement with Premium on 23 April 2015, granting TVL rights to those mineral rights owned or controlled by Premium within an area of mutual interest, as defined by the red outline in Figure 3.2. The lease agreement is valid for a period of 20 years with the option to extend for a further 20 years. The lease is subject to an annual royalty payment of US$50,000, due at the end of the first quarter of each year. TVL retains the right to exploit mineralization within the area exceeding 0.06 oz/ton Au (2 g/t Au) through underground mining methods. Three Net Smelter Return (NSR) royalty payments are due on the Friday project. A 3% NSR royalty is payable to Idaho Gold Corporation (a subsidiary of Kinross Gold Corporation) for production from the five patented claim areas. The NSR royalty is capped at US$1,000,000. A second NSR royalty of 1% up to a limit of US$1,000,000 is payable to Mr Del Steiner. The final NSR royalty of 2% is due to Premium, following payment of the NSR royalties to Idaho Gold Corporation and Mr Del Steiner. 3.2 Buffalo Gulch and Deadwood projects Location and access The Buffalo Gulch and Deadwood project sites are situated within the OMD of central Idaho, USA. The Buffalo Gulch project is situated two miles west of Elk City, centred around the coordinates E and N using the coordinate system NAD 83, Zone 11 BLM US. Access to Buffalo Gulch is by driving north from Elk City along USFS road 1199 for two miles. The Deadwood project is located four miles south-west of Elk City, three miles south of the Buffalo Gulch site. The project is centred around E and N using the NAD 83, Zone 11 BLM US coordinate system. The Deadwood project site is accessed via State Highway 14 west of Elk City, travelling along the south fork of the Clearwater River to the junction with the Red River Road, before heading south along USFS road 222 to the junction with the Campbell Creek Road. The project locations are shown in Figure 3.3. amcconsultants.com 5

12 Figure 3.3 TVL projects location map Source: HRC, 2017b. amcconsultants.com 6

13 3.2.2 Infrastructure Elk City is the nearest urban settlement to the Buffalo Gulch and Deadwood project areas, with the population varying seasonally, averaging approximately 300 people. Facilities at Elk City include a medical centre, post office, hotel, gas station, general store, and a gravel air-strip. The city of Lewiston is the major regional urban settlement, with daily flights between Lewiston and Boise, Idaho; Seattle, Washington State; Salt Lake City, Utah. Lewiston also possess a sea port on the Snake River which provides access to the Columbia River and the Pacific Ocean Mineral tenure overview The Buffalo Gulch and Deadwood projects are covered by 91 unpatented mining claims, and a State of Idaho mineral lease. The Buffalo Gulch Mineral Resource, discussed in Section 12.2 of this IER, is situated under the unpatented A and EC claims (Figure 3.4). Figure 3.4 Buffalo Gulch and Deadwood claim map Source: HRC, 2017b. amcconsultants.com 7

14 A property purchase agreement was entered between TVL and Premium on 3 July Under the agreement, TVL purchased 91 unpatented mining claims and one state of Idaho mineral lease, for a total price of US$650,000. The final payment for purchase was made 10 December A 3% NSR royalty is payable to Premium on a quarterly basis. In addition, 5% of the gross receipts, including all bonuses and allowances paid, earned, or received at the point of sale of the first marketable minerals is to be paid to the State of Idaho for minerals within the State of Idaho Mineral Lease (HRC, 2017b). 3.3 Kimberley project Location and access The Kimberley project is situated within the historic Marshall Lake mining district of southern Idaho County, Idaho, USA, 20 miles south of the town of Riggins (Figure 3.3). The project is centred around the coordinates N latitude and W. Kimberley is located within a Bureau of Land Management (BLM) Mineral Reserve which in turn is located within the Payette National Forest. Access to the project site is from the community of McCall via the Warren Wagon Road (21), north 28.1 miles to USFS road 246, then west approximately seven miles to USFS road 318, and north approximately ten miles to the primary Kimberley project access road. Much of the immediate Kimberley project vicinity is also accessible via various secondary roads and four-wheel-drive jeep trails (HRC, 2017c) Infrastructure The nearest minor urban settlement to the project is McCall, with the city of Boise the nearest major urban settlement, located 150 miles south of McCall. Some infrastructure exists within the project area comprising a 100 ton-per-day (tpd) gravity and flotation processing plant constructed in 1960 including a ball mill and diesel generator which were last operated in In addition to the mill are other buildings in need of rehabilitation or replacement Mineral tenure overview The Kimberley project is covered by 24 unpatented federal lode mining claims on land administered by the BLM. The Kimberley project is wholly owned by TVL, as documented by the Quit Claim Deed filed by Texas Energy Advisers LLC on 17 November 2017 (HRC, 2017c). 3.4 Rescue project Location and access The Rescue project is a past producing lode gold project situated within the historic Warren mining district of Idaho County, Idaho, USA. The project is located 0.6 miles south of the community of Warren, centred around the coordinates N latitude and W longitude (Figure 3.3), and within the Payette National Forest. Access to the project is from the settlement of Warren via gravel road NF-340. Warren Wagon Road/NF-21 connects the town of McCall with the community of Warren. The road is a seasonally maintained Forest Service road and paved for 30 miles out of the total 45 miles. The community of Warren is also serviced by a gravel runway suitable for light aircraft in the summer and ski planes in the winter Infrastructure The nearest available settlement for supplies is McCall for modest provisions, with the city of Boise, 150 miles south of the project area, being the nearest major urban settlement. Existing facilities and infrastructure at the project site are limited to a small, diesel-powered gravity circuit mill, a tailings pond below the mill, fuel storage, and gravel-surfaced access roads between the mill area and the underground workings. Water rights were established during previous operations, and pertain to the roughly 50 gallons per minute (gpm) produced by the existing underground workings (HRC, 2017d). amcconsultants.com 8

15 3.4.3 Mineral tenure overview The Rescue project is wholly owned by TVL, as documented in the Quit Claim Deed filed by Texas Energy Advisors, LLC, on 17 November The project consists of 22 unpatented federal lode mining claims and two unpatented mill site claims all located on USFS land surface (HRC, 2017d). amcconsultants.com 9

16 4 History 4.1 Friday project history Placer gold was initially discovered in the Project region in the 1850s, in the tributaries of the South Fork Clearwater River. Hard-rock mining did not commence until 1903, when mining began at the Hogan mine, also known as the Orogrande-Frisco mine, situated on the Friday project mineralization. The following excerpts from the HRC report National Instrument Technical Report: Preliminary Economic Assessment for the Friday Underground Project, Idaho County, Idaho, USA (HRC, 2017a) summarizes the recent project history: The recent history of the property commenced in the 1980's when the predecessor companies of Bema Gold Corporation (Bema), with associated companies and joint venture partners, began intensive exploration of the Project leading to the estimation of resources and reserves from drilling carried out in Metallurgical and other work was carried out and detailed investigations preparatory to mining were completed before the company ceased further work in the area. The Petsite property, adjacent to the Friday claims, became the property of Idaho Consolodated Metals Company ( ICMC ) in In 1993, the Friday claims were acquired by ICMC through its acquisition of all the Bema properties in the Elk City area. Subsequently, in 1996, ICMC entered into a joint venture agreement with Cyprus Gold Exploration Corporation (part of Cyprus Amax Minerals Company) to investigate and develop the Friday- Petsite property. Cyprus carried out extensive exploration work, including reverse circulation and core drilling, on the Friday-Petsite property in at a cost of about US$1.7 million. In 1998, Amax Minerals, severed from Cyprus Amax, merged with Kinross Gold Corporation ( Kinross ) and Kinross became the successor to the Cyprus Amax joint venture interest in the Friday-Petsite property. Kinross continued the investigation, including core drilling, expending US$537,000 in Kinross terminated the joint venture in 1999, after additional nominal expenditures, and returned the property to the sole ownership of ICMC. ICMC reduced the extensive ground holding of the former joint venture to the core claims to limit the cost of maintaining the property. In March 2007, an Asset Purchase Agreement on the Idaho Gold Properties was signed between Clearwater Mining Company (CMC) and ICMC. As a result, CMC collectively controlled 100% interest in the Idaho Gold Properties which were comprised of Buffalo Gulch, Friday-Petsite, Dixie, Deadwood, and Gallaugher properties. On June 17, 2010, Premium's wholly-owned subsidiary, Premium Exploration USA, Inc., executed an Agreement and Plan of Merger with CMC whereby CMC was merged with Premium USA. The merger was approved on July 2, 2010 by the TSX. On April 23, On 23 April 2015, TVL entered into a mineral lease agreement with Premium, granting TVL rights to mineral rights owned or controlled by Premium (see Section 3.1.3). 4.2 Buffalo Gulch and Deadwood project history The Buffalo Gulch and Deadwood project histories are closely aligned with the neighbouring Friday project. In the 1980s, as part of the Bema exploration works geophysical surveys were conducted over the project areas, with both the Buffalo Gulch and Deadwood projects providing geophysical responses. Because of the initial investigations, Bema commenced drilling at both sites between before the acquisition of all the Bema properties within the Elk City area. The Buffalo Gulch and Deadwood projects fell under the same joint ventures with Cyprus Gold Exploration Company (Cyprus) in 1996 and later in 1998 with Kinross. As part of the Asset Purchase Agreement between ICMC and CMC in 2007 ownership of the Buffalo Gulch and Deadwood properties was acquired by CMC. On June 17, 2010, Premium's wholly-owned subsidiary, Premium Exploration USA, Inc., executed an Agreement and Plan of Merger with CMC whereby CMC was merged with Premium USA. The merger was approved on July 2, 2010 by the TSX (HRC, 2017b). A property purchase agreement was entered between TVL and Premium on 3 July Under the agreement TVL purchased 91 unpatented mining claims and one state of Idaho mineral lease. The purchase was completed on 10 December amcconsultants.com 10

17 4.3 Kimberley project history A summary of the Kimberley project history is provided in the report National Instrument Technical Report: Geology and Mineralization of the Kimberley Gold Project, Idaho County, Idaho, USA (HRC, 2017c). The summary produced by HRC (2017c) was modified and/or excerpted from Mitchell (1994) and Laczay (2010), and is quoted below in its entirety: The original Kimberley claims were located just north of Twin Lakes between August and September 1900 by George Conners, Dan LeRoy, A.A. Easton, W.A. Scot and George A. Wright. The five men also located the Jewel Group two miles north of the Kimberly claims, and by 1901 had installed a two-stamp mill on the Jewel property. In 1904, the group located the Digger vein 1,000 ft west of West Twin Lake, within the modern-day Kimberly claim block. Between 1904 and 1911, work on the property was fairly continuous. The Idaho Inspector of Mines reported in 1911 that the Gold Crest vein was developed by several short adits to a depth of 160 ft. A 280-ft long ore shoot ranging from 4 to 22 inches in width had been developed by these adits, and the vein was traced along the surface by several open cuts and rich float for up to 2,000 ft. The Inspector s report goes on to state that numerous samples of the vein were said to contain up to 7.25 ounces per ton gold. Between 1911 and 1937, ownership of the Project changed hands a number of times, and little work was carried out other than annual assessments. In 1937, the Gold Run Mining Co. obtained a lease on the Kimberly property and proceeded to construct camp facilities and a road between the camp and the mine. At this time, the Gold Crest ore shoot was being worked from open, overhand slopes through a short crosscut and drift along the vein. Kimberly Gold Mines, Inc., took over operations at the mine in 1938, and remained in sole control of the property until About 220 ft of development was completed in 1938, and improvements were made to the camp. Mining activity in 1939 consisted mostly of surface trenching, building and equipment repair, and rehabilitation of the mine workings. In 1940, a drift was run on the Digger vein, and excavation of the Crystal tunnel began along with construction of a 50-ton per day (tpd) flotation and amalgamation mill at the mouth of the tunnel. The new mill started operation in June 1941 on ore that assayed 2.21 ounces per ton gold. There were approximately 2,750 ft of workings on the property at that time. The property continued to produce until October 8, 1942 when War Production Board Limitation Order L-208 closed the mine for the duration of World War II. The mine remained closed until In 1948, Kimberly Gold Mines conducted a geological survey to prepare for re-opening the mine later that summer, and the camp buildings, which had been damaged by heavy snow, were repaired. During 1949, several caved adits were cleared and a 565-ft crosscutting was completed in an effort to intersect orebodies at depth. In 1950, a diamond drill program was completed consisting of 603 ft of underground and 588 ft of surface drilling. Between 1955 and 1958 the mill was expanded to from 50 tpd to a 100 tpd mill. Sale of gold produced while testing the mill earned the company $3,929 (at $35/ounce). The mine ceased operating in 1964, at which time there were approximately 8,798 ft. of workings on the property. Kimberly Gold Mines, Inc., merged with Summit Silver, Inc., in Summit Silver employed small work crews to conduct exploration and development operations until 1977, when the property was leased to Hub Mining and Exploration LTD, Vancouver. Gold Resources Company leased the property in 1983 and During this time, the New Fisher Tunnel was driven over 600 ft, additional drifting and sampling of the Kimberly/Gold Crest vein was accomplished, and the Hickson-Bishop No. 2 adit was reopened. Summit Silver reportedly resumed exploration activities in 1987 with plans for an underground drilling program to be carried out in 1988, but the author has no knowledge of whether or not that drilling was actually carried out, and no records regarding the results of Summit s exploration are known to exist. Kimberly Gold Mines apparently regained sole control of the Project in Between 1999 and 2001, crews rock bolted 300 ft of the Gold Crest No. 2 tunnel. The buildings, property and on-site mill were given a careful inspection. The company reviewed an environmental survey done for Summit Silver (the prior owner) by GEO Engineers, Spokane, Washington. During September 2000, Kimberly commissioned Project Management Services to evaluate the Kimberly claim block from an environmental point of view. They also cataloged [catalogued] and evaluated the operating status of the mineral processing equipment in the mill. In June through August 2001, work crews conducted general repair, cleanup and rehabilitation work. This included portal repair of the Gold Crest No. 1 tunnel and a limited amount of diamond drilling from the Gold Crest No. 2 tunnel. During the 2002 work season, Kimberly rehabilitated the portal on the Kimberly, Hickson and Bishop No. 2, Gold Crest No. 1, and Gold Crest No. 2 tunnels. In July to September 2002, work crews conducted general repair and cleanup of the mill site, cabins and mine areas. A limited amount of diamond drilling was reportedly conducted from the Kimberly tunnel, but no associated details or documentation is available. Shoshone Silver/Gold Company controlled the Kimberly project from 2008 until Little work was reported by Shoshone other than general maintenance and rehabilitation of underground workings and surface facilities. amcconsultants.com 11

18 4.4 Rescue project history The Rescue vein was discovered in the early 1860s and was subsequently mined during at least three periods (HRC, 2017d). From 1916 to 1936 the project was owned by Unity Gold Mines Company, after which the mine was owned by the McDowell family until the year During the 1970s and 1980s, for a 10-year period, the McDowell family leased the project out to an external party. In the course of the 10-year lease period the mine was dewatered, sampling undertaken, and a decline and two new levels developed. In mid-2000 the company Baramundi Gold USA (Baramundi) acquired the project and operated it for a oneyear period. Whilst it appears that little work was carried out in the underground workings during this period, metallurgical testwork was undertaken in conjunction with a redesign of the mill circuit. Production was intermittent and carried out from two existing surface stockpiles. In 2004, the project was acquired by Kimberly Mines (Kimberly) who carried out works to reopen the underground workings and repair the mill building. The mine was dewatered and further sampling works undertaken. The project was subsequently acquired by Shoshone Silver/Gold Company in 2009, who went on to carry out a six-diamond drillhole programme in According to HRC (2017d): Between 2010 and 2016, Shoshone also conducted an extensive clean-up of the property, including repairing and refurbishing the mill building and equipment as well as initiating rehabilitation of the 200 level adit to provide permanent access to the underground workings. Shoshone maintained ownership of the property until it was acquired by TVL in amcconsultants.com 12

19 5 Geology 5.1 Friday project The Friday project is situated at the juncture of two major north south trending shear zones, the Orogrande Shear Zone (OSZ) and the Petsite Shear Zone (PSZ). Rocks within the OSZ comprise Idaho batholith quartz monzonite, xenoliths of Belt Supergroup gneiss and schist, and late dykes and plugs of dacite and rhyolite. In the Friday project area, bedrock lithology is comprised of the batholithic rock types with mylonitic and cataclastic textures, and includes rafts and xenoliths of Belt Supergroup gneisses and schists. Because of the complex tectonic history, rock textures vary over short distances (HRC, 2017a). Mineralization of the Friday project is primarily focused between two significant faults, the Friday fault, and the Monday fault, mineralization extends beyond the Monday fault by up to 300 feet (ft). Alteration is proximal to the mineralization and comprises a broad seriticized zone, a discontinuous potassic alteration, and weak to strong silicification. Two styles of gold mineralization are encountered at the Friday project. Disseminated low-grade gold mineralization is located within the broader weaker sheared zones. Higher-grade gold and silver mineralization occurs in areas of more intense shearing, particularly in proximity to a dacite dyke striking north south, subparallel to the Friday and Monday faults. The northern end of the dyke intercepts the Friday fault and the southern end intercepts the Monday fault. The dacite dyke is non-mineralized with high-grade mineralization in the footwall and hanging wall of the dyke. Mineralization of the Friday project is described as a low-sulphidation mesothermal vein system. The mineralization is comparable to the style of mineralization described by Cox, 1999: Widespread laminated, banded, or crack-seal textures indicate fluid pressure fluctuations during deformational cycles. Episodic brittle or ductile slip events produce breccias and shear veins with variable alteration mineralogical assemblages in sub-horizontal extensional vein arrays. The vein displacements range from a few tens of centimetres to a few tens of meters. Gold typically occurs within quartz veins and or disseminated in hydrothermally altered envelopes of faults and shears (Cox, 1999). Sometimes mineralization resides in alteration halos adjacent to faults and shears rather than within the veins. This may result from sulphidation reactions in iron-rich host rocks causing gold to precipitate. 5.2 Buffalo Gulch project As with the Friday project, Buffalo Gulch is situated within the Orogrande Shear Zone (OSZ), where zones of intense brittle faulting and cataclasis have acted as conduits for gold mineralization. Four main rock types are encountered at Buffalo Gulch: Biotite gneiss Quartz monzonite Irregular bodies of coarse-grained orthoclase-muscovite quartz pegmatite A small dyke of altered and mineralized quartz rhyolite at the north-eastern part of the deposit. The OSZ is the principal control on mineralization within the area, at North Buffalo; the OSZ consists of a north to N15W striking, 35 degrees east-dipping shear zone at least 200 ft wide, occurring in and adjacent to the quartz monzonite unit. At South and Central Buffalo. the OSZ consists of several N15W and N15E striking shear zones, of which the N15W structure follows the quartz monzonite. (BJ Price, 2015). Structural deformation within the OSZ is greatest within the quartz monzonite and the gneiss-quartz monzonite contact resulting in intense brittle shearing and fracturing within the quartz monzonite. At the gneiss-quartz monzonite contact intense cataclasis of the gneiss unit has formed muscovite and biotite schist with some minor brittle fracturing. Alteration is primarily phyllic with sericite-quartz-pyrite alteration assemblages. A zone of alteration extends 10,000 ft from north-to-south Buffalo Gulch and extends 2,000 ft wide. Gold and arsenic mineralization at the Buffalo Gulch deposit appears to be associated with the phyllic alteration, with grades correlating to the intensity of alteration. amcconsultants.com 13

20 Within the MRDI report Buffalo Gulch old project, Report Review and Update (MRDI, 1996), the Buffalo Gulch mineralization is described as: the North Buffalo Gulch orebody occupies an area 1200 ft. by 1400 ft. (365 m x 425 meters). The (body) predominately lies in the footwall of a N45 West-striking, 35 East-dipping Quartzite (Note that others have referred to this a silica alteration or Quartz Monzonite, illustrating the need for diamond drilling). Idaho Gold geologists refer to the rock in the footwall as sericite schist/gneiss and biotite gneiss. The deposit has a sub-horizontal to undulant form, giving an impression of open folding. In plan the deposit is ovate, and in section is approximately 300 ft. thick. The deposit generally lies above a passive (sill) intrusion of quartz monzonite and bordering pegmatite. Nearly all the mineralization is contained within oxidized sericite schist. 5.3 Deadwood project Deadwood is situated within the Orogrande Shear Zone (OSZ). Mineralization at Deadwood has been described as: Gold mineralization is associated with limonite in a shallow to steeply dipping stockwork zone within a highly sheared, silicified and sericite altered Precambrian gneiss. Typical of the other deposits in the belt, Cretaceous quartz monzonite has intruded the metamorphics, creating a complex of coarse and fine breccias. These breccias have been highly sheared and fractured by the late north south regional structural break. Alteration of the sheared zone includes clay and sericite assemblages within a 2,000 ft to 3,000 ft wide zone, with a central core of pyritized and silicified rock varying in width from 200 ft to 500 ft. In the mineralized zones, gold and minor arsenopyrite are associated with the pyrite. Supergene alteration resulted in destruction of most sulphides to ft below surface, resulting in a dark limonite stain on all fractures and exposed surfaces. This oxidation also had the effect of liberating any gold tied up within the sulphides. (Kahlert, 1989). The style of mineralization and deposit is in line with the neighbouring Buffalo Gulch deposit. Two principal areas of mineralization have been identified at Deadwood, these being Deadwood lla and Deadwood lll. Deadwood lla strikes north south for approximately 1,000 ft and extending on-average 350 ft wide with a broadly rectangular outline. A steep gully intercepts the area to the south whilst geologically and geochemically, mineralization remains open to the north. However, claims in this area are not held by Premium. As with the Buffalo Gulch project, the project comprises a zone of oxidation extending 40 ft thick with possible supergene enrichment, overlying a low-grade sulphide zone. The Deadwood lll area is to the south of the Deadwood lla area, striking north south for approximately 700 ft and truncated at the north by the same steep-sided gully that truncates the Deadwood lla area. Deadwood lll has a wedge-shaped outline and extends 1,200 ft wide and ft deep. At the southern end of Deadwood lll the mineralization pinches out. The Deadwood lll area can be further subdivided into a main and south area, with the south area exhibiting weaker oxidation and a more erratic distribution of gold grades. Mineralization in the main area occurs as lenses. 5.4 Kimberley project Geologically, the Kimberley project comprises eight main stratigraphic units that are part of the Belt Supergroup. The lower six stratigraphic units comprise coarse clastics, which are believed to be equivalent to the Ravalli Group (Ebisch, 2003). Fine-grained well-laminated sediments with significant carbonate content, equivalent with the Wallace Formation make up the upper two stratigraphic horizons. Three north south striking faults cut through the project area, these being the Fischer, Booth, and Lake faults, which are steeply dipping normal-angled. Three mineralized targets have been identified comprising quartz-gold veins, gold-bearing skarn, and a mica carbonate schist with localized skarn and replacement mineralization. High-grade gold mineralization occurs within quartz veins striking east west and dipping at to the south. The quartz veins cross-cut the Booth fault with little or no offset. Auriferous quartz veins encountered in the area include the Kimberley, Crystal, Gold Crest, Golden Anchor, Digger, Hickson-Bishop, and the Swede veins, with the Crystal and Kimberley veins occurring within the claim areas. Veins range in thickness from a few inches to several feet. In addition to the auriferous quartz veins, a gold-bearing skarn has been identified in three structural blocks (A, C, and D), with two of the blocks (C and D) displaying the greatest concentrations of mineralization, possibly amcconsultants.com 14

21 due to the proximity of these blocks to the intrusive and the presence of a greater degree of fracturing for auriferous fluid circulation. 5.5 Rescue project Bedrock geology of the project area comprises the Idaho batholith quartz monzonite with a number of other variants occurring. Other intrusive encountered include granodiorite, pegmatite, aplite, and a series of hydrothermally altered rocks (J. J. Brown, 2017). Cutting the quartz monzonite and intrusives are a series of joint sets, which have acted as conduits for hydrothermal solutions resulting in alteration of the intrusives in proximity to the joints. The Rescue vein represents infilling of a fracture or shear zone within the quartz monzonite, and comprises white and grey banded lenses of quartz within a grey fault gauge, with later vuggy quartz. Fine-grained disseminated minerals such as pyrite, galena, sphalerite, and electrum are found within the grey banded quartz. Alteration either side of the Rescue vein rarely exceeds a few tens-of-centimetres (J.J. Brown, 2017). A mesothermal gold-quartz vein genetic model has been proposed for the deposit. amcconsultants.com 15

22 6 Deposit type A low-sulphide mesothermal shear-hosted genetic model has been proposed for the Friday, Buffalo Gulch, Deadwood, Kimberley, and Rescue projects by HRC (HRC, 2017a), with medium-grade facies metamorphic rocks of the Proterozoic-age Belt Supergroup and the Cretaceous-age Idaho Batholith hosting mineralization. The Orogrande Shear Zone and Petsite Shear Zones provide conduits and depositional settings for the mesothermal veins. Further details reference the proposed genetic model is discussed by HRC (2017a) including a correlation to similar mineralization occurrences such as the Yilgarn Province, Western Australia, and the Canadian Shield. amcconsultants.com 16

23 7 Exploration 7.1 Friday project The Orogrande gold mining district in which the Friday project is located was initially discovered in the 1850s, initially in relation to placer deposits. Exploration of the Friday project began in the 1980s by Bema Gold Corporation (Bema). Bema carried out a programme of surface mapping, sampling, and drilling, which defined a north south trending body of mineralization extending 1400 ft along-strike and 140 ft to 180 ft across-strike. In 1996, Cyprus entered into a joint venture agreement with ICMC, who had acquired the Friday claims in A programme of exploration was undertaken by Cyprus in 1996 and 1997, comprising stream sediment, soil and outcrop sampling, geological mapping, reverse circulation (RC) drilling, and diamond core drilling. Kinross continued the exploration activities at the Friday project in 1998 with further soil sampling and additional diamond core drilling, resulting in a maiden Mineral Resource estimate. In March 2007, Clearwater Mining Company (CMC) entered an Asset Purchase Agreement with ICMC for the Idaho Gold Projects which included the Friday project, Buffalo Gulch, Dixie, Deadwood, and Gallaugher Projects. In 2010, Premium Exploration USA Inc (Premium) executed an Agreement and Plan of Merger with CMC, which was passed on 2 July 2010 by the Toronto Stock Exchange (TSX). Exploration works have been conducted by Premium since 2009, it is unclear to AMC as to what agreement was in place for the 2009 works prior to Premium s merger. Exploration works by Premium between 2009 and 2014 included surface sampling, geophysical surveys, RC drilling and diamond core drilling. The geophysical survey in 2010 comprised an airborne magnetics (DIGHEM) and an electromagnetic (EM) survey by Fugro Airborne Surveys. The aerial survey covered 2,300 miles of grid and was supplemented by a ground-based magnetics survey covering 75 miles of grid and a dipole-dipole Induced Polarization (IP) survey over a five-mile grid. The 2010 geophysical surveys delineated the structures within the project area and formed the basis of the 2011 geophysical surveys. In 2011, 40 miles of IP surveys and a soil sampling programme was undertaken to aid in defining potential drill targets. Soil sampling by Premium in 2010 included 4,500 soil samples, with a further 8,999 soil samples taken in Sampling lines orientated east west were spaced 650 ft, with samples taken at 80 ft intervals along the sampling lines. 7.2 Buffalo Gulch project Buffalo Gulch was discovered in 1984 following a regional stream and soil sampling reconnaissance programme by Bema Gold Corporation (Bema). Following the initial discovery, additional soil sampling and trenching was undertaken prior to the commencement of intrusive drilling investigations. Exploration activities at Buffalo Gulch has included both geochemistry and geophysical surveys. Soil sampling was carried out in 1997, by ICMC. Soil samples were taken from the C horizon across the deposit with section lines spaced 400 ft apart and samples taken at 100 ft intervals along the sections. A mineralization anomaly with grades >100 ppb Au was found to extend 10,000 ft (3,000 m) by 1,600 ft (500 m). The soil sampling programme not only aided in delineating the Buffalo North, Central, and South areas but is also reported to show mineralization to be open in several directions, in particular to the north and south (B.J., Price, 2015). Soil sampling by Bema prior to ICMC was conducted on a larger grid and identified anomalies in areas not covered in the ICMC survey. An extensive geophysical survey was carried out over the Buffalo Gulch area in 2010 and 2011 comprising: Airborne magnetics (DIGHEM) and EM survey covering a 3,707-km grid Ground-based magnetic survey covering 120 km line grid 8.4 km of dipole-dipole IP surveys over selected targets. The geophysical surveys have outlined several of the regional structures as well as conductive anomalies which correlate with known historical mines and interpreted to be faults related to the OSZ. amcconsultants.com 17

24 7.3 Deadwood project Soil geochemistry over the area including the Deadwood project was undertaken in 2010 and 2011 with a total of 13,499 samples taken. Soil samples were taken along sampling profile lines spaced 656 ft apart orientated east west with samples taken on 82 ft intervals along the profile lines. As a result of the geochemical survey, an anomaly (>20 ppb Au) extending 8 km was identified which represented the Deadwood project area. In addition to the identification of the Deadwood lla and lll areas, it is noted by Kahlert (Kahlert, 1989) that another anomaly recorded as Deadwood lv was located one-mile south of Deadwood lll. The anomaly covers a strike length of 4,000 ft. The aerial geophysical surveys conducted over the Buffalo Gulch deposit included the Deadwood area. No IP or magnetic anomalous responses were identified at Deadwood. 7.4 Kimberley project Exploration of the Kimberley area was largely through underground development, with limited systematic exploration in the form of drilling, trenching, or underground channel sampling. Exploration activities have been poorly documented, preventing AMC from forming a reasonable opinion as to the validity of the sampling works. In 1950, eight diamond drillholes totalling 603 ft of underground drilling and 588 ft of surface drilling was undertaken. Based on drill logs for drillhole No. 6, core recovery was poor. In 2001 and 2002, some additional limited drilling was undertaken along with underground channel sampling in AMC has not received the results of these programmes. 7.5 Rescue project Whilst the site has been subject to historical mining, there has been limited exploration activity. A 2011 drilling programme was undertaken by Shoshone comprising six surface diamond drillholes totalling 3,909 ft. According to the Rescue Gold Project NI report (J.J. Brown, 2017), details on the drilling, logging, and sampling procedures are limited, and original drilling logs and assay results are not presently available. AMC understands that the 2011 drilling programme was supervised by the Shoshone Site Manager who also carried out the core logging and is not a geologist. As part of review works undertaken in 2011, it was noted that of the six holes, five did not intercept economic grades of mineralization, possibly due to the holes not being drilled deep enough to intercept the vein. The presence of clay gouge in all holes may be indicative of a fault zone or possible additional vein structure within the hangingwall of the known Rescue vein. amcconsultants.com 18

25 8 Drilling 8.1 Friday project Drilling of the Friday project has been conducted through a combination of RC and diamond core drilling. There have been five phases of drilling: : Bema : Cyprus/Kinross 2002: Canden Capital Corp (Canden) 2004: Beartooth Platinum : Premium. A summary of the drilling undertaken is provided in Table 8.1. Table 8.1 Friday project drill summary Year Company Type Number Feet Drilled Bema RC 6 NA Bema RC 44 of 48 7, Cyprus RC 16 6, Cyprus RC 90 35, Cyprus Core BQ 5 2, Cyprus Core HQ 6 2, Kinross Core HQ 12 7, Canden Core NQ 5 1, ICMC (Beartooth Platinum) Core HQ 4 1, Premium Core HQ 13 9, Premium Core HQ 25 33, Premium Core HQ 18 19, Premium RC 1 1, Premium Core HQ 2 2, Premium Core HQ 13 6,517.3 Source: HRC, 2017a Bema Gold Details for six holes drilled by Bema in the southern part of the Friday project are missing from available data sources and therefore do not form part of the current Mineral Resource estimate database. A further 48 holes were drilled by Bema across the Friday project area comprising 37 angled holes, dipping east and west, totalling 6,645 ft, and 11 vertical holes. The 11 vertical holes were drilled in the southern part of the deposit to define mineralization for bulk sampling and were spaced on a 25 ft grid. The inclined holes are on east west profile lines spaced 200 ft apart with holes spaced approximately 100 ft along the profile lines Cyprus/Kinross In 1996 and 1997, Cyprus carried out a programme of RC drilling with holes inclined both to the east and the west, on an approximate spacing of 200 ft. Drilling in 1997 and 1998 included diamond core drilling with core diameters of BQ and HQ. The first five holes drilled in 1997, PC-1 to PC-5, totalled 2,115 ft and were drilled using a portable rig producing BQ diameter core, all subsequent drilling was at HQ diameter. Sampling of the diamond core and RC was on 5 ft intervals. amcconsultants.com 19

26 Canden Capital Corp 2002 Five diamond core (NQ diameter) drillholes were carried out by Canden in 2002 under agreement with ICMC. Drilling focused on high-grade targets previously defined by the 1996 RC drilling campaign. The 2017, NI report, by HRC (HRC, 2017a), notes that core recovery was excellent except for fault zones and oxidized areas. No drill core remains from this phase of drilling ICMC (Beartooth Platinum) 2004 A total of four HQ diameter drillholes totalling 1,696 ft was drilled in 2004, targeting high-grade mineralization. Core recovery from this period has been described as good (HRC. 2017a), but further details have not been provided to AMC to confirm this statement Premium Except for one RC drillhole, all drilling by Premium comprises HQ diameter diamond drill core. Drilling was aimed at infilling the existing network of drillholes as well as testing the extents of higher-grade mineralization. Final collar coordinates were recorded by a Premium Geologist using a Magellan Mobile Mapper CX with cm resolution GPS. All drillholes from the drilling campaign have been surveyed (HRC, 2017). Collar surveys for the 2014 and 2015 drillholes were completed by Premium Geologists using a handheld GPS unit. All holes drilled by Premium were surveyed downhole using a Reflex EZ shot instrument, with the azimuth adjusted by to account for the local magnetic declination. Drilling was undertaken using the contractor West Core Drilling LLC between 2009 and 2011, using an Atlas Copco Christensen CS14 drill rig with triple tube. Between 2013 and 2014, the drill contractor American Drilling Corp was employed, with an Atlas Copco CT14 drill rig being used. Core recovery averaged 88%. 8.2 Buffalo Gulch project As of 2011, a total of 163 drillholes were completed at the Buffalo Gulch project, comprising both reverse circulation (RC) and diamond core, totalling 29,101 ft. A summary of the drilling completed is provided in Table 8.2. Drilling has been undertaken on drill profile lines spaced 100 ft apart and with holes spaced at ft along the profiles. Table 8.2 Buffalo Gulch drillhole summary Year Company Type Zone Number of Holes Series Feet Drilled 1985 Bema RC Buffalo Gulch 24 BG 85 4, Bema RC Buffalo Gulch 88 BG 86 14, Bema RC Buffalo Gulch 36 BG 90 5, ICMC HQ Core Buffalo Gulch 9 BGS 96 2, Beartooth HQ Core Buffalo Gulch 4 BH DDH Premium HQ Core Buffalo Gulch 2 BG ,093 Total Buffalo Gulch ,101 Source: B.J. Price, Most of the drillholes were drilled vertically (94%) with the average depth of holes at 179 ft. Drilling was focused on the oxide material with limited investigation of fresh material. MRDI (MRDI, 1996) states that: Idaho Gold calculated the average recovery of the BG-90 group RC drill cuttings to be 79 percent using a 16 ft 3 /t in situ tonnage factor. If a tonnage factor of 14.5 ft 3 /t, is used the average recovery drops to 72 percent. At the bottoms of some of the holes, recoveries exceeded 100 percent, indicating caving from above. 8.3 Deadwood project Three distinct phases of drilling have been conducted at Deadwood, , 1997, and 2011 including both RC and diamond core drilling. A total of 65 holes were drilled, totalling 21,371 ft. A summary of the drilling amcconsultants.com 20

27 activities is provided in Table 8.3. RC drilling was carried out with holes orientated vertically, whilst the 2011 drillholes are inclined dipping both east and west. A plan of the completed drillholes is provided in Figure 8.1. Table 8.3 Deadwood drillhole summary Year Company Type Zone Number of Holes Bema RC Deadwood 42 Series D86 & R86, D87, D88 &R88 Feet Drilled 1997 Cyprus RC Deadwood 14 DW 6, Premium HQ Core Deadwood 9 DW2011 SD ,862 Total Deadwood 65 21,371 Source: B.J. Price, NA Figure 8.1 Deadwood drillhole location plan Source: Micon, amcconsultants.com 21

28 8.4 Kimberley project In 1950, eight diamond drillholes totalling 603 ft of underground drilling and 588 ft of surface drilling was undertaken. Based on drill logs for drillhole No. 6, core recovery was poor. In 2001 and 2002, limited additional drilling was undertaken. 8.5 Rescue project Shoshone undertook a drilling programme in 2011 comprising six surface diamond drillholes totalling 3,909 ft. According to the Rescue Gold Project NI report (J.J. Brown, 2017), details on the drilling, logging, and sampling procedures are limited, and original drilling logs and assay results are not presently available. AMC understands that the 2011 drilling programme was supervised by the Shoshone Site Manager who also carried out the core logging, and is not a geologist. As part of review works undertaken in 2011 by Mr Gerald Harper (Harper, 2011), it was noted that of the six holes, five did not intercept economic grades of mineralization, possibly due to the holes not being drilled deep enough to intercept the vein. The presence of clay gouge in all holes may be indicative of a fault zone or possible additional vein structure within the hangingwall of the known Rescue vein. amcconsultants.com 22

29 9 Sample preparation and analysis 9.1 Friday project Sample preparation and analysis A total of four laboratories have been used for assaying samples from the Friday project: Bondar-Clegg (now part of ALS Chemex) ALS Chemex Acme American Analytical Services. According to the HRC 2017, Friday project NI report (HRC, 2017a), provided to AMC: All of the labs that have provided analytical testing for the Project were or currently are fully accredited, independent, commercial labs that were not related to any of the exploration companies or any of its directors or management. (HRC, 2017a). Samples were selected by site geologists and submitted to the respective laboratories for subsequent sample preparation and assay. A summary of the laboratory sample preparation and assay methods is provided in Table 9.1. Table 9.1 Friday project sample preparation and assay methods summary Exploration Phase Cyprus/Kinross Canden Capital 2002 Primary laboratory Chemex Labs Inc (ALS Chemex) Chemex Labs Inc (ALS Chemex) ICMC (Beartooth) 2004 ALS Chemex Premium Acme Labs Check laboratory Bondar-Clegg Unknown Acme Labs Acme Labs Cross Labs Check Sample preparation methods Assay methods 1996: Samples dried, crushed to P60 at 2 mm, homogenized, halved and pulverized to 0.25 mm, g pulverized to mm : Samples weighed and dried in bags in oven. Entire sample reduced to P90 at 2 mm, homogenized and split, 600 g pulverized to 0.3 mm. Fire assay with atomic absorption finish. samples returning grades >10 g/t Au re-assayed with gravimetric finish. No details available. 30 g fire assay with atomic absorption finish. Half core samples dried, crushed and split. A 1 kg sub-sample is taken and pulverized to P85 at 75 µm. 30 g fire assay with atomic absorption finish. Samples retuning higher grades were re-assayed with a gravimetric finish. Half core samples crushed to P80 at 2 mm, homogenized and riffle split, a 250 g sub-sample is then pulverized to P85 at 74 µm. 30 g fire assay with Inductively Coupled Plasma Electron Spectroscopy (ICP-ES) finish. Assays returning grades >10 g/t Au were re-assayed with a gravimetric finish Quality assurance and quality control Limited information was provided to AMC with reference to quality assurance and quality control (QA/QC) procedures and results for the Friday project. Within the HRC Friday project NI report (HRC, 2017a), it is stated that pulp duplicate samples were submitted as part of the Cyprus/Kinross exploration works. During the 1996 phase of works, pulp duplicates were inserted at a rate of 1-in-20. For the 1997 and 1998 phases, pulp duplicates were not only inserted at a rate of 1-in-20, but also submitted to an external laboratory (Bondar-Clegg). No QA/QC details were provided for the Canden phase of exploration works in As part of the 2004 ICMC (Beartooth) exploration works, duplicate samples were sent at a rate of 1-in-10 to Acme laboratories in Vancouver, British Columbia, for fire assay with ICP-ES finish. HRC states that The results of these test assays are unknown, and no sample QA/QC data is available for review. (HRC, 2017a). As part of the Premium exploration programme of works, QA/QC samples have been inserted into the sample batches including, blanks, duplicates, and certified reference materials (CRM). AMC was provided with a amcconsultants.com 23

30 summary of the QA/QC results in the report Technical Report, Idaho Gold Project (Geosim Services Inc, 2013) which covers the results from AMC has not been provided with the QA/QC results for , nor the raw QA/QC results Blanks For the 2009 to 2010 sampling works, a total of 367 blank samples were submitted to the laboratory, with the blank material being sourced from the dacite dyke. In 2011, the blank sample material was switched to a silica sand with 403 blank samples being submitted. Figure 9.1 and Figure 9.2 show the results of the blank samples for the (dacite material) and 2011 (silica sand) exploration phases respectively. Where blank sample results exceeded the failure limit, no re-assays were undertaken by Acme laboratories. Figure Friday project blank results Source: Geosim Services Inc, amcconsultants.com 24

31 Figure Friday project blank results Source: Geosim Services Inc, CRMs A total of 12 different CRMs were used by Premium during the exploration works, a summary of the CRMs submitted is shown in Table 9.2. Table 9.2 Friday project CRM summary CRM ID Year Number of Samples Submitted Target Grade (Au g/t) Standard Deviation OREAS 53Pb OREAS 60b OREAS 62c OREAS 54Pa OREAS 62c OREAS 52c CDN-GS1P5C CDN-GS8A-failed CDN-GS5F N/A CDN-GS8B a N/A CDN-GS5G CDN-GS1P5D N/A a CDN Resources Laboratories Ltd CRM certificate states target grade of 7.76 g/t Au and 1 standard deviation of amcconsultants.com 25

32 Figure Friday project CRM control charts Source: Geosim Services Inc, The control plots provided in the 2013 Geosim technical report (Figure 9.3) show reasonable levels of accuracy but with variable levels of precision as exhibited by the variability about the target values. CRM CDN-GS8B is stated in the Geosim technical report as having a target value of 8.25, however, according to the CDN amcconsultants.com 26

33 Resources Laboratories Ltd CRM certificate, the target value should be 7.76 g/t Au, which more closely correlates with the results plotted by Geosim. AMC believes that the precision of assay results indicates the assay methods used by Premium are suitable for use in Mineral Resource estimates Duplicates To ascertain sample precision, Premium submitted field duplicates into the sample batches, with 221 submitted in and 354 in Scatter plots of the results were provided in the Geosim technical report. The spread of duplicate results indicates a low level of precision which has been attributed to: the disseminated, stockwork, breccia, and lode gold nature of the Friday Zone deposit; the sample size being considered (split HQ core at approximately 5 kg/12 lb per metre), and the concentrations being documented ( g/t). In addition, core logging with assay comparisons demonstrate a large spread in gold grain sizes in the Friday Zone between visible gold and invisible gold. (Geosim Services Inc, 2013). 9.2 Buffalo Gulch project Sample preparation and analysis Limited details are available regarding the sample preparation and assay methods employed during the various exploration phases. According to MRDI (MRDI, 1996) assays from the early exploration works were sent to the Bondar-Clegg laboratory for assay using the same geochemical method with atomic absorption (AA) finish as used for the soil sampling. Subsequent sampling by Idaho Gold Corporation was sent to Chemex laboratory for fire assay with a gravimetric finish Quality assurance and quality control No QA/QC results or QA/QC review summaries were provided to AMC. According to MRDI (MRDI, 1996) Idaho Gold Corporation did not submit any of their own QA/QC samples, instead relying on the laboratories own internal QA/QC checks. In 1990, Chemex ran external pulp duplicate assay checks on 2% of the assays, with samples being sent to the Monitor laboratory in Elko, Nevada, USA. MRDI states that the duplicate samples confirm the original analyses with the average difference in grades of oz/ton. As part of the Buffalo Gulch, Baner and Deadwood Gold Properties, Technical Report (B.J. Price, 2015) report works, four samples were taken from angular float of the original mineralized zone and sent to an ALS Minerals certified laboratory. The samples were taken to support the presence of mineralization, which they did, albeit at low-grade. However, the samples were not taken to provide support as to the veracity of the exploration assay samples. 9.3 Deadwood, Kimberley and Rescue projects Sample preparation and analysis No details were provided to AMC referencing the laboratories used, or sample preparation and assay methods Quality assurance and quality control No QA/QC information was provided to AMC for review. amcconsultants.com 27

34 10 Data verification AMC has relied on the technical information and supporting reports provided by Endomines for the purposes of compiling this IER. AMC has reviewed the Mineral Resource estimate information for the Friday and Buffalo Gulch projects including a review of the geological databases, block model, and wireframes. AMC has not undertaken a site visit or reviewed the laboratories as part of the IER, nor carried out independent sampling, or checked assays, due to time restrictions. amcconsultants.com 28

35 11 Metallurgical testwork and mineral processing 11.1 Friday project The Friday project has undergone metallurgical testing programmes starting in the late 1990s. Bottle-roll tests were completed at McClelland Labs in The average gold recovery in oxide samples was 89.5% and transition oxide-sulphide samples averaged 73.6%. Gold recovery in sulphide samples was between 37.5% and 80.8% and was a function of the grind size of the samples. A grind size of 74 microns (200 mesh) resulted in recoveries of more than 80%. There are no other details regarding this test programme. Further tests were undertaken in 2011 at SGS Canada Inc. (SGS). The head grades were between 0.01 and 0.17 oz/ton gold. All samples were crushed to -60 mesh and cyanide leached in a bottle-roll test for 30 hours. The average gold recovery from 13 samples was 86.2% and varied between 75.2% and 93.8%. Silver recovery averaged 49% in the same tests. The cyanide consumption rate ranged between 0.3 lbs/ton and 2.7 lbs/ton. Lime consumption was between 0.6 lbs/ton and 4.3 lbs/ton. In 2016, two composite samples were compiled from drill core to assess the amenability of Friday ores to flotation. The composite gold recoveries averaged 94.3% (CMP-1) from an average head-grade of oz/ton. CMP-2 recovered an average of 95.6% from an average sample grade of oz/ton. The results of the 2016 SGS programme support flotation as a recovery method of Friday project production. The 2017 Preliminary Economic Assessment (PEA) describes a basic process flowsheet to treat the Friday project production (Figure 11.1). There is currently no processing facility identified to treat Friday production. The 2017 PEA suggests that the Rescue Mill may be relocated to a site near the Friday project, however, that plant would not be able to process the tonnage throughput of 150 tons per day nor is it suited for the recovery methods described in the flowsheet. Figure 11.1 Proposed Friday project process flowsheet 11.2 Buffalo Gulch project Limited metallurgical testing has been completed on Buffalo Gulch materials. The most recent tests were conducted in amcconsultants.com 29

36 In 1987, a heap leach test was completed by Bema on a 4,000-ton sample. The test determined that Buffalo Gulch oxide ores require agglomeration to be heap leached. In 1989, a second test comprised of a 585-ton sample was conducted with agglomerated leach material. The 1989 test recovered 95% of the gold over 32 days Deadwood, Kimberly, and Rescue projects No metallurgical testwork has been reported for these properties. There is a disused process plant at the Rescue site but it is not suitable for processing the Friday or Buffalo Gulch ores. amcconsultants.com 30

37 12 Mineral Resources 12.1 Friday project Overview In 2017, an updated Mineral Resource estimate was carried out by HRC on behalf of TVL. Modelling was carried out using Datamine Studio 3 V (Datamine) software in conjunction with Leapfrog Geo V (Leapfrog) used to construct the geologic, oxidation, and domain surfaces. The Mineral Resource is reported with an effective date of 1 March Topographic and drillhole collar surveys Drillhole collar surveys were conducted in 1997 by Cyprus, however, it is unknown as to what proportion of holes were covered as part of these survey works. In 1998, holes PC-12 to PC-23 were surveyed by an external contractor on behalf of Kinross. Collar positions from the 2002 Canden and 2004 Beartooth exploration programmes were verified by Premium. Drillhole collars from the Premium exploration works were surveyed by Premium using a Magellan Mobile Mapper CX, with an accuracy of cm. Collars from the 2014 and 2015 exploration programmes were surveyed by Premium using a hand-held GPS. Comparing the topography survey against the drillhole collar surveys, several drillhole collars are positioned above the topographic survey possibly indicating survey inaccuracy, most likely due to the use of hand-held GPS units. AMC considers that for detailed drillhole collar and topographic surveys, good industry practice methods of survey would include total stations with accurate benchmarks, or the use of a differential GPS (DGPS). Although the drillhole collars display a survey inaccuracy which requires further investigation, AMC believes the impact on the Mineral Resource estimates is unlikely to be material to the Mineral Resource estimate given the style of mineralization Downhole surveys Downhole surveys have only been completed for the drilling activities conducted by Premium, totalling 71 holes out of 251 holes, or 28 % of the sample database. Premium carried out the downhole surveys using a Reflex EZ shot with the azimuth corrected to 14.5 to account for magnetic declination. Drilling carried out by Cyprus was reportedly surveyed downhole, although no further details are available Sample database As part of the Mineral Resource estimation works, HRC carried out an audit of the sample database. The database audit comprised reviewing the database against hard copy paper-logs and assay certificates from records found on file in Premium s Elk City field office. Within the Leapfrog software the sample database was reviewed to identify any sample overlaps, absent values, non-numeric assay records, and negative values. Where sample overlaps were identified the records were cross-checked against the original logs and corrective actions taken. Assay values recorded as -9 were taken as being non-assayed intervals and were omitted from the sample data set. Other negative values were taken as being below detection limits and assigned a zero grade. A summary of the sample database which was used by HRC for the Mineral Resource estimation, and supplied to AMC, is provided in Table amcconsultants.com 31

38 Table 12.1 Friday project database summary Year Type No. Holes Total Length (ft) No. Samples Min (Au oz/ton) Max (Au oz/ton) Mean (Au oz/ton) Variance Std. Deviation Skewness 1997 Core 11 4, Core 17 8,464 2, Core 4 1, Core 13 9,263 3, Core 25 33,501 11, Core 18 19,982 6, Core 2 2, Core 13 6,519 1, RC 7 1, RC 37 6,100 1, RC 16 6,210 1, RC 90 35,905 7, COV Geological continuity and interpretation Mineralization at the Friday project is primarily situated within the Friday and Monday faults, with the Friday fault forming a hard boundary with the Proterozoic-age Belt Supergroup and the intrusive Cretaceous-age composite Idaho Batholith (HRC, 2017). Mineralization occurs in the hangingwall of the Friday fault with grade increasing in proximity to a dacite dyke which strikes north south through the mineralized zone. The dacite dyke is truncated by the Monday and Friday faults and itself is largely non-mineralized. The Monday fault forms a more diffuse boundary with mineralization encountered on the western side of the fault. Two types of gold mineralization have been identified at the Friday project, disseminated low-grade gold mineralization in broad zones of shearing, and higher-grade gold and silver in quartz veins and silicified breccias along the margins of the dacite dyke. These mineralization types occur as both oxidized and unoxidized zones, depending on the depth of weathering, and in association with sulphide mineralization (HRC, 2017a). For the Mineral Resource estimate, wireframes were constructed corresponding to the Monday and Friday faults, and the dacite dyke. Wireframes were also constructed to represent the higher-grade hangingwall and footwall zones abutting the dacite dyke. These hangingwall and footwall wireframes were based on site-visit observations made by HRC along with a statistical review. The domains, whilst broadly reasonable, lack support through discernible geological or statistical characteristics and warrant further investigation Sample data processing Sample data was coded according to the respective wireframe domains, five key domains were defined in total: Dacite dyke Dacite dyke hangingwall Dacite dyke footwall Wall rock Overburden. In general, sampling was carried out on 5 ft intervals, and for the Mineral Resource estimate a 5 ft composite was applied to ensure uniform sample support. Decile analysis, histograms, mean-versus-variance plots, and probability plots have been utilized to determine the need for top-cutting the sample data to prevent undue influence from high-grade outliers. Table 12.2 shows the top-cuts that were applied to the sample data. amcconsultants.com 32

39 Table 12.2 Friday project grade top-cuts Domain Top-cut (oz/ton Au) Dacite dyke hangingwall 1.5 Dacite dyke footwall 1.5 Dacite dyke Wall rock 0.5 Source: HRC, 2017a. As part of the Mineral Resource estimate, HRC chose to use an indicator estimation method for the high-grade samples, whereby grades exceeding 0.1 oz/ton are assigned a code of 1 and lower grade blocks a code of 0. High-grade areas were then estimated into the prototype block model using a single-pass inverse distance estimation, with search ellipses orientated using dynamic anisotropy. This indicator method allows a constrained estimation of high-grades without smearing into lower-grade adjacent areas. AMC believes that the domaining, compositing, and choice of top-cuts applied by HRC are reasonable. The use of an indicator estimation approach to prevent smearing between high-grade and low-grade areas is also reasonable. However, AMC has not identified any distinct high-grade outlier populations in respect to the overall population. Top-cutting samples prior to defining high-grade domains should be looked at in detail. If a distinct high-grade population can be identified, then top-cut level is typically higher than the overall sample population top-cut. In the case of the Friday project there is the potential that the high-grade (>0.1 oz/ton) samples might have been excessively top-cut prior to carrying out the indicator estimation. Given the small number of high-grade >0.1 oz/ton samples (<2%), the impact of excessive top-cutting is likely to be limited but AMC suggests that it would be good practice to quantify this through a metal-at-risk analysis Variography and grade continuity Spatial grade continuity has been assessed through variography. HRC carried out the variography using Snowden Supervisor Version 8.7, with variograms constructed both for the high-grade indicators as well as the composited and top-cut sample assay data. Directions of continuity were assessed using variogram contour plans from which experimental variograms were derived corresponding to the horizontal, down-dip, and across-strike planes. Table 12.3 and Table 12.4 summarizes the variogram model results for both the indicator samples and the low-grade samples. Table 12.3 Summary of indicator gold variogram parameters Nugget (C0) C1 C Axis Range (ft) Azimuth Dip Z 63/ X 18/ Z 7/ Source: HRC, 2017a. Table 12.4 Summary of low-grade gold variogram parameters Nugget (C0) C1 C Axis Range (ft) Azimuth Dip Z 104/ X 150/ Z 31/ Source: HRC, 2017a. amcconsultants.com 33

40 AMC believes the approach taken by HRC for the variography is reasonable and in accordance with accepted industry practice. Whilst the data supplied to AMC details the variogram model results, no example experimental variograms were provided. The lack of experimental variograms reduces the confidence that can be placed on the models, as the quality of a variogram model is a function of the experimental variograms on which it is based. AMC has carried out an independent variography assessment using Isatis software. The variogram contour fans provided no clear indication of grade continuity within the five main domains. AMC therefore carried out variogram modelling using back-transformed omni-directional gaussian experimental variograms and variogram models for each of the domains. For the main dacite dyke hangingwall and footwall domains, the range of grade continuity appears to be in the order of 100 ft with nugget effect making up approximately a third to half of the total variance. The wall rock domain shows a significantly greater degree of grade continuity with a range of up to 600 ft and nugget making up approximately a third of the total variance. Whilst the HRC variogram model results for the low-grade mineralization is broadly in line with the AMC variogram results for wall rock, AMC considers the ranges proposed in Table 12.4 to be excessive for the dacite dyke footwall and hangingwall domains Block model parameters A non-rotated prototype block model with parent cell sizes of 3 ft 10 ft 10 ft (X/Y/Z) was established into which the grades were estimated Density Specific density measurements have been taken at 50 ft intervals down hole of the 2010 drilling, providing a total of 637 density samples. Density measurements were taken in the field using an Electronic Densimeter EW-300SG manufactured by Alfa Mirage. Samples were cleaned of loose debris and then hand-dried to remove exterior moisture. The sample was then weighed in air and then again in water, using the Archimedes method the specific gravity is obtained. The average density value reported was 2.66 t/m 3. A total of 144 samples out of the 637 density measurements were sent to Acme laboratories for verification density testwork. The average density value returned by Acme laboratories was 2.66 t/m 3, corresponding to the Densimeter measurements. For the Mineral Resource estimate a density of t/ft 3 (2.97 t/m 3 ) was applied to blocks in the model with grades >0.008 oz/ton. Blocks in the model with grades <0.008 oz/ton were assigned a density of t/ft 3 (2.93 t/m 3 ) Grade estimation methodology Grade estimation was carried out in a three-pass plan with each successive estimation pass using larger search radii. The orientation of the search ellipse was controlled through dynamic anisotropy. A summary of the estimation parameters applied are provided in Table Grades were estimated using inverse distance weighting to the power 2.5 as the principal estimation method, with ordinary kriging and nearest neighbour used for comparative purposes. Table 12.5 Friday project Mineral Resource estimation search parameters No. of composites 1st Pass 2nd Pass 3rd Pass Measured Indicated Inferred Minimum Maximum Search Ellipsoid Distance (ft) Primary Secondary Tertiary Source: HRC, 2017a. amcconsultants.com 34

41 The search radii employed and use of dynamic anisotropy appears reasonable to AMC. However, the minimum and maximum number of samples used in the estimates, combined with the relatively small block size, may act as a source of error Model validation The following methods were used by HRC to validate the grade estimates: Comparison of the global descriptive statistics from the inverse distance weighting (ID), ordinary kriging (OK), nearest neighbour (NN), and composite data. Comparison of CFPs and histograms from ID, OK, NN, and composite data. Review of QQ plots between composite data and the individual estimates. Comparison of the estimated grade tonnage (GT) curves to the theoretical global change-of-support GT curve. Swath plots. In addition to the HRC validation checks, AMC has carried out an independent validation of the Mineral Resource block model. AMC compared the estimated grades against the sample composite grades, both visually and statistically. Included in the validation methods were swath plots, a graphical display of the grade distributions across the deposit, split according to northings, eastings and vertically through the deposit. Each data point on a swath plot represents the average grade for a band through the deposit. Reviewing the swath plots, and visually assessing the model, AMC believes there is a tendency for excessive smoothing of grades in the dacite dyke hangingwall and footwall domains, particularly in the across-strike direction. The easting swath plots for the hangingwall and footwall domains show a systematic underestimation which appears greatest nearer to the contact with the lower grade wall rock domain. Based on these results, AMC believes grades have been smeared across the domains, with the lower-grade wall rock samples reducing the grades within the hangingwall and footwall domains Mineral Resource classification HRC has classified the Mineral Resources at the Friday project based on the search distances and the number of samples used in the grade estimation (Table 12.6). Table 12.6 Mineral Resources classification criteria Classification Number of Samples Search Distance (ft) Measured 1st Pass x 26 x 3 Measured 2nd Pass x 65 x 7.5 Indicated x 130 x 15 Inferred x 260 x 30 Source: HRC, 2017a. In classifying Mineral Resources, it is important to consider the quality of the sample data, geological and grade continuity. The current use of search radii as a means of classifying the Friday project only covers the grade continuity component, and in part geological continuity. The limited amount of QA/QC data available to provide support for the samples, the poor precision shown by the field duplicates without further detail provided by coarse and pulp duplicates, results in uncertainty as to the veracity of the sample data. Whilst there is some support provided in the form of twin holes, and internal laboratory blanks, there is insufficient information to definitively prove whether sample variability is a function of inherent grade variability, or errors introduced from the sampling and sample preparation. Based on this, AMC considers it appropriate for the Measured classification to be downgraded to Indicated. The main geological structures associated with the deposit, the Friday and Monday faults, and the dacite dyke have been reasonably well-defined. However, the higher-grade zones adjacent to the dacite dyke were extrapolated without support from geological or grade definition. The importance of the dacite dyke hangingwall and footwall domains requires further investigation, particularly given the higher-grades associated with these amcconsultants.com 35

42 domains. The lack of detail regarding the hangingwall and footwall domains provides further support for AMC s downgrading of the Measured material to an Indicated classification Reasonable prospects for eventual economic extraction To demonstrate reasonable prospects for eventual economic extraction, HRC has reported at a cut-off grade of 0.1 oz/ton assuming a selling cost of US$1,300 per troy ounce. Economic parameters used in deriving the approximate economic cut-off grade are based on estimated operating costs, mining and processing recoveries. Table 12.7 details the economic parameters used. Table 12.7 Friday project economic parameters Item Cost/Rate Units Mining cost US$/ton Processing cost US$/ ore ton Shipping cost 5.00 US$/ ore ton G&A cost 5.00 US$/ ore ton Process recovery 94 % Mining dilution 0 % Gold price 1,300 US$/oz Source: HRC, 2017a Reported Mineral Resources Table 12.8 below summarizes the estimated TVL Mineral Resources for the Friday gold project, Idaho, USA, estimated by HRC. The Mineral Resource is reported according to the CIM Definition Standards with an effective date of 1 March Table 12.8 Friday project Mineral Resources summary Classification Measured Indicated Measured + Indicated Inferred Source: HRC, 2017a. Cut-Off Grade (Au oz/ton) Tons (short tons) Au Grade (oz/ton) Au Contained Metal (oz) , , , , , , , , , , , , , , , , , , , , , , , , Buffalo Gulch project Overview In 2017, an updated Mineral Resource Estimate was carried out by HRC on behalf of TVL. Modelling was carried out using Leapfrog software. The Mineral Resource is reported with an effective date of 10 December Topographic and drillhole collar surveys Drillhole collars for the Bema drilling works were carried out by an independent firm, no further details were available to AMC pertaining to how collars from this period of exploration works were surveyed. amcconsultants.com 36

43 No details were available regarding the collar survey methods for the ICMC or Beartooth period of exploration works. As part of the Premium exploration works in 2011, Premium surveyed the drillhole collar coordinates using a Magellan Mobile Mapper CX GPS with a resolution of 10 cm 50 cm. Drillhole collars were marked with a cement cap and a brass tag or stake Downhole surveys The majority of drillholes at Buffalo Gulch were drilled vertically with depths typically <300 ft, with 25 holes in the sample database (14 % of drillholes) inclined. No details have been recorded regarding downhole survey methods Sample database As part of the Mineral Resource estimation works, HRC carried out an audit of the sample database. The database audit comprised reviewing the database against hard copy paper-logs and assay certificates from records found on file in Premium s Elk City field office. Within the Leapfrog software the sample database was reviewed to identify any sample overlaps, absent values, non-numeric assay records, and negative values. Where sample overlaps were identified the records were cross-checked against the original logs and corrective actions taken. Assay values recorded as -9 were taken as being non-assayed intervals and were omitted from the sample data set. Other negative values were taken as being below detection limits and assigned a grade of oz/ton. A summary of the sample database which was used by HRC for the Mineral Resource estimation, and supplied to AMC, is provided in Table Table 12.9 Buffalo Gulch database summary Year Type No. Holes No. Samples Min (Au oz/ton) Max (Au oz/ton) Mean (Au oz/ton) Variance Std. Deviation Skewness 1996 Core Core Core RC RC 88 2, RC RC 36 1, COV Geological continuity and interpretation Buffalo Gulch comprises sub-horizontal mineralization located above a passive intrusion of quartz monzonite, with the bulk of mineralization being contained in the oxidized sericite schist. As part of the estimation works, sample data was statistically reviewed relative to the logged lithologies. No clear correlation was identified between host lithologies and grade, the exception being for an Eocene dyke which displayed very low grades. The Eocene dyke is located outside of the modelled portion of Buffalo Gulch. No geological domains were wireframed or modelled as part of the Mineral Resource estimation. An oxide-sulphide boundary digital terrain model was constructed based on the oxidation logging, with the block model coded as oxide or sulphide. Whilst the model was coded according to oxide and sulphide, these two domains were not considered separately during the grade estimation, with sample data being used from both oxidation states used to inform across the redox boundary Sample data processing Sample data was composited to 20 ft intervals to provide equal sample support, with the composites increasing from the original sample length of 5 ft. To prevent bias due to high-grade outlier samples, HRC statistically reviewed the sample data and applied a top-cut of 0.08 oz/ton. amcconsultants.com 37

44 It is AMC s opinion that the choice of composite length and top-cuts are suitable Variography and grade continuity Spatial grade continuity has been assessed through variography. Variograms were constructed for the combined oxide and sulphide sample data, covering the major, semi-major, and minor anisotropic orientations. The variogram models produced by HRC are shown in Figure 12.1, and the model parameters summarized in Table AMC has carried out an independent variography review of the oxide mineralization using Snowdon Supervisor software. The AMC variography results show comparable orientations for the major and semimajor axis, with the major axis striking approximately and the down-dip orientation striking However, AMC has not identified any dip or plunge, with mineralization showing a horizontal orientation. AMC has identified differing variogram ranges than those reported by HRC. Using pairwise-relative variograms a range of approximately 300 ft along-strike (340 /00 ) and down-dip (070 /00 ) was identified, along with a downhole (across-strike) range of 100 ft. amcconsultants.com 38

45 Figure 12.1 Buffalo Gulch variogram models Source: HRC, 2017b. amcconsultants.com 39

46 Table Buffalo Gulch variogram model parameters Nugget (C0) Nugget (C0) C1 C Rotation Angle Range 1 (ft) Range 2 (ft) Dip Dip azimuth Pitch Source: HRC, 2017b Block model parameters A non-rotated prototype block model with parent cell sizes of 20 ft x 20 ft x 20 ft (X/Y/Z) was established into which the grades were estimated. Grade estimation was carried out in single estimation run. A summary of the estimation parameters applied is provided in Table Table Buffalo Gulch grade estimation parameters Composite Requirements Min Max Max per Hole No Distance Major Semi-Major Minor Ft Source: HRC, 2017b Density No detailed information was identified by AMC referencing density testwork. A number of samples were reportedly taken by Idaho Gold for bulk density testwork (MRDI, 1996) with an average value of 16 ft 3 /t. Further density samples were also reported to have been taken from the adit face yielding an average density of 14.5 ft 3 /t. Mineral Resources have been reported using a density of 16 ft 3 /t Grade estimation methodology Grades were estimated using ordinary kriging as the principal estimation method, with inverse distance and nearest neighbour used for comparative purposes. The search radii employed correspond to the second structure variogram ranges defined by HRC and the associated rotations. The use of a 20 ft x 20 ft x 20 ft parent cell size by HRC relative to the average sample spacing of approximately 100 ft, combined with a large range single search estimate introduces the potential risk of conditionally biasing the grade estimate. Using block sizes that are small relative to the sample spacing tends to result in grades being extrapolated rather than interpolated from the surrounding data resulting in an increase in the LaGrange multiplier thus increasing the kriging variance. Using a single, large grade estimation ellipse increases the chance of excessive grade smoothing, particularly in areas with sparsely spaced, and limited numbers, of samples. The potential of a high-grade (supergene) zone at the oxide and sulphide boundary also increases the risk of smearing the higher grades into lower grade parts of the oxide mineralization, as well as into the sulphide domain Model validation HRC has carried out validation checks of the block model grade estimates through visual and statistical checks, including swath plots. Results of the HRC validation checks are shown in the Table and Figure amcconsultants.com 40

47 Table Buffalo Gulch global grade comparison Type Count Minimum Maximum Mean Std. Dev (Au oz/ton) (Au oz/ton) (Au oz/ton) (Au oz/ton) Composites 1, Ordinary kriging 125, Inverse distance 125, Nearest neighbour Source: HRC, 2017b. 156, COV Figure 12.2 Buffalo Gulch HRC swath plots Source: HRC, 2017b. AMC carried out validation checks of the Mineral Resource block model, comparing the estimated grades against the sample composite grades, both visually and statistically. Included in the validation methods were swath plots, a graphical display of the grade distributions across the deposit, split according to northings, eastings, and vertically through the deposit. Each data point on a swath plot represents the average grade for a band through the deposit. AMC carried out the validation works only for the oxide mineralization, and for those areas classified as Measured, Indicated, and Inferred, falling within the conceptual open-pit used by HRC to constrain the Mineral Resource. amcconsultants.com 41

48 The statistical and visual review of the block model identified a tendency to overestimate grades within the model. The average estimated model grade for the oxide (Measured, Indicated, and Inferred) mineralization is ppm (0.015 oz/ton) compared to the average declustered sample composite grade of ppm (0.013 oz/ton). AMC swath plot results show block model grades to be typically overestimated. AMC carried out analyses of the impact of block size and search ellipse parameters on the grade estimates, to ascertain whether conditional bias was introduced to the grade estimates, thus resulting in the overestimation. A prototype block model using a parent cell size of 60 ft x 60 ft x 20 ft was constructed and grade estimates undertaken using reduced search radii. The results of AMC s estimation show that a larger parent cell size and smaller initial search radii, improves the grade estimations where sample data is limited and/or high-grade. Areas of the model exhibiting the greatest degree of overestimation are the peripheries where sample data is limited. At the oxide/sulphide boundary grades also appear to have been overestimated, likely influenced by the greater proportion of high-grade mineralization, which has been smeared into adjacent areas Mineral Resource classification HRC has classified the Mineral Resources at the Buffalo Gulch project using indicator based wireframe solids constructed in Leapfrog, aimed at representing continuity of mineralization that can be realized through mining. The indicator approach uses a cut-off grade of oz/ton in conjunction with a probability threshold. Blocks in the model meeting the cut-off grade of oz/ton and a probability threshold of 90% were assigned a Measured classification by HRC, blocks with a grade >0.004 oz/ton cut-off grade and a probability threshold of 75% 90% were assigned an Indicated classification (Table 12.13). Any remaining blocks estimated but located outside of the Leapfrog indicator shells were classified as Inferred. Table Buffalo Gulch Mineral Resource classifications Category Primary Secondary Tertiary Indicator Threshold Minimum Volume Measured 200 ft 115 ft 40 ft ,500,000 ft Indicated 305 ft 175 ft 63 ft ,000,000 ft Source: HRC, 2017b. Mineral Resource classifications should consider sample data quality, geological and grade continuity, and reliability of density measurements. These factors are the drivers for the confidence that can be placed on the quality of the grade estimation, the volumetric interpretation, and the estimated ore tonnage and contained metal content. Based on the reports and data reviewed by AMC, there is a distinct lack of supporting QA/QC information for the sample data on which the grade estimation is based. A lack of support for the sample data undermines the confidence that can be placed on the assay data on which the estimates are based. Whilst density testwork is reported to have been undertaken, the work appears to be largely historical rather than current, with no evidence of reappraisal of the measurement methods used or the results derived. Whilst the density used in the Mineral Resource estimate of 16 ft 3 /t appears reasonable, it lacks corroboration from available information. The density value used in the Mineral Resource therefore carries a level of uncertainty and risk. The current Mineral Resource model has limited geological domains with only oxide and sulphide domains having been modelled. Having reviewed the available information, it is AMC s opinion that the domains are suitable, but future works should aim to increase the level of geological understanding and any mineralization potential controls. Grade continuity was interpreted through variography. The results shown by HRC show no clear variogram structures, however, this may be a function of the variogram parameters used, and can be improved through the use of pairwise variograms to remove some of the small-scale grade variability noise. Variography carried out by AMC shows that the sample spacing is sufficient to define grade continuity for the oxide mineralization. amcconsultants.com 42

49 Sampling was largely undertaken within the oxide mineralization with limited sampling in the underlying sulphide mineralization. Given the lack of robust investigation of the sulphide mineralization, and that the proposed processing method is for heap leach of the oxide, AMC believes that the sulphide mineralization should be omitted from the reported Mineral Resources. Given the lack of QA/QC data and the density measurement information, AMC believes that the Mineral Resources should be classified as Inferred until more supporting data is provided to increase confidence in the estimates Reasonable prospects for eventual economic extraction To demonstrate reasonable prospects for eventual economic extraction, HRC has constrained the block model estimates using a conceptual pit optimization using a gold price of US$1,300 oz. Only mineralization falling within the conceptual open-pit has been reported as part of the Mineral Resource. The pit optimization parameters used by HRC are detailed in Table Table Buffalo Gulch Mineral Resource pit optimization parameters Item Cost/Rate Units Mining cost $2.90 US$ per total ton Processing cost $8.15 US$ per ore ton Transport and refining $0.10 US$ per ore ton G & A $1.50 US$ per ore ton Process recovery 90% Oxide 45% Sulphide Mining dilution 0% Royalties 3% Cut-off grade Oz/ton Source: HRC, 2017b. The parameters used by HRC for constraining the Mineral Resource, appear reasonable, and AMC believes the pit optimization approach taken is suitable Reported Mineral Resources Table below summarizes the estimated TVL Mineral Resources for the Buffalo Gulch gold project, Idaho, USA, estimated by HRC. The Mineral Resource is reported according to the CIM Definition Standards with an effective date of 10 December Table Buffalo Gulch project Mineral Resources summary Measured Indicated Measured + Indicated Inferred Cut-Off Tons Grade Contained Tons Grade Contained Tons Grade Contained Tons Grade Contained (oz/ton) (000 s) (oz/ton) (000 s oz) (000 s) (oz/ton) (000 s oz) (000 s) (oz/ton) (000 s oz) (000 s) (oz/ton) (000 s oz) , , , , , , , , , , , , Source: HRC, 2017b. The Mineral Resources reported in Table are the combined oxide and sulphide mineralization falling within the conceptual pit optimization. AMC believes that at present, the sulphide mineralization should be excluded from the Mineral Resource due to a lack of sampling within the sulphide domain, and the proposed processing method being for heap leaching of the oxide only. In reviewing the block model, AMC noted that the lowest cut-off grades achievable in the model is oz/ton. Whilst the model provided to AMC yields the same results at a oz/ton cut-off grade as Table 12.15, no additional mineralization is available in the model for cut-off grades <0.008 oz/ton. The Mineral Resources stated in Table at cut-off grades of 0.04 oz/ton and 0.06 oz/ton therefore, cannot be substantiated from the supplied model. amcconsultants.com 43

50 12.3 Deadwood project No Mineral Resources are currently reported for the Deadwood project Kimberley project No Mineral Resources are currently reported for the Kimberley project Rescue project No Mineral Resources are currently reported for the Rescue project. amcconsultants.com 44

51 13 Mineral Reserves and mining methods 13.1 Ore Reserves No Mineral Reserves are currently reported for any of the TVL Mineral Assets Mining methods Friday Project The 2017 PEA included a brief summary of a proposed mining method to exploit the Friday project. The mining method selected in the PEA to exploit the Friday deposit was shrinkage stoping. This was based on its selectivity and low capital costs, and achieved a level of production consistent with TVL objectives. The mine layout for the shrinkage mining method is depicted in Figure Figure 13.1 Friday project mine layout The mining recovery factor for shrinkage mining is high because it is a selective mining method. Dilution is low, relative to other methods (such as long-hole open-stoping). HRC used a mining recovery factor of 95% and a dilution factor of 15%. For the purposes of defining the stopes and Mineral Reserves, the PEA used a minimum mining width of 3 ft. amcconsultants.com 45

52 The Friday PEA proposes to mine Friday using the shrinkage stoping method. Shrinkage stoping was a widely used mining method in North America until the mid-1990s when health and safety concerns and technical improvements to top-hammer drills motivated a shift to alternative mining systems. Mechanized cut-and-fill (MCAF), long-hole open-stoping (LHOS), and similar methods, replaced shrinkage mining. Whilst there were issues with dilution and recovery as mines transitioned from hand-held mining equipment to electro-hydraulic and diesel-hydraulic equipment, dilution and recovery factors have since improved. Equipment manufacturers have increasingly been developing equipment to exploit small-scale and narrow-vein deposits such as Friday. It is a notable project risk that shrinkage mining is proposed to exploit the Friday deposit. The mining system described in the PEA is an artisanal system that will be difficult to implement due to the lack of qualified mine operators. The mining method also has safety issues as the workforce stands on the muck-pile in the stope. Incidents of workers being killed or injured due to the muck-pile collapsing were experienced when this mining method was more widely practiced. The use of hand-held pneumatic drills has also been identified as a health and safety issue. Ground support in the stopes is proposed to be a combination of steel rock bolts and wooden stulls. The mining equipment selected is a combination of hand-held air-leg drills, small load-haul-dump (LHD) machines, and trucks with a support fleet for mine services. The underground infrastructure includes compressed air and electrical reticulation equipment. Most of the equipment is run by compressed air. Electrical power is derived from generator sets for the underground mine with surface offices and buildings connected to the local power grid. No list of the compressed air or electrical demand is included to justify the specification of the compressors or generator sets. The proposed site workforce is largely comprised of underground miners with support from a technical services group. The tons per-person-shift is approximately 15 tons per-person-shift assuming 150 tons per day (tpd) mine output. The PEA mining schedule (Table 13.1) was used to inform a conceptual cashflow for the project. Table 13.1 Friday project conceptual production schedule Production Units Life-ofmine Year - 0 Year -1 Year -2 Year -3 Year -4 Year -5 Year -6 Year -7 Total ore mined tons 276, ,190 41,975 42,090 41,975 41,975 41,975 31,314 Days of the month Tons per month tpm ,519 3,498 3,508 3,498 3,498 3,498 3,479 Total ore grade Gold (oz/ton) Silver (oz/ton) Contained metal Gold (oz) 65, Silver (oz) 130, Recovered metal Recovered gold (oz) 61, , , ,541 9,675 8, , ,697.6 Recovered silver (oz) 117, ,279 16,097 20,185 18,527 16,961 17,055 14,740 Development (ft) 12, ,470 3,159 3, Adit (ft) Ramp (ft) 7, ,965 2,088 2, Drift (ft) Raise (ft) 1, Stope access (ft) 3, , Capital costs to develop the Friday project are summarized in Table The total capital expenditure (CapEx) is estimated to be US$7.7 million. amcconsultants.com 46

53 Table 13.2 Friday project capital costs Capital Schedule CapEx Pre-production underground excavation $1,500,000 Surface facilities $750,000 Working capital $850,000 Mill relocation and rehabilitation $2,000,000 Engineering and management $400,000 Mine equipment $1,215,500 Contingency $1,007,325 Total capital $7,722,825 Source: From Table 21-1 of the PEA The mine operating costs were estimated to be approximately US$ per ton during the life of mine. The operating costs (OpEx) are a combination of the following: Lateral mine development costs Stoping costs Milling costs Shipping and transportation General and administration costs. The unit rates for each of the above are found in Table Table 13.3 Operating cost unit rates Operating Costs Units Rate Adit ($/ft) $1, Ramp ($/ft) $ Drift ($/ft) $ Raise ($/ft) $ Stope access ($/ft) $ Stopes ($/ton) $39.30 Milling costs per ton $38.00 Shipping costs per ton $4.00 G&A ($/ton) $15.00 Total operating costs ($/ton) $ The life-of-mine operating costs is tabulated below (Table 13.4). amcconsultants.com 47

54 Table 13.4 Life-of-mine operating costs Operating Costs Life-of- Mine (US$) Ramp 3,504,895 Drift 26,079 Raise 904,986 Stope access 1,632,597 Stopes 10,868,588 Milling costs 10,509,067 Shipping costs 1,106,218 Concentrate Refining 2,433,679 G&A 4,148,316 Total operating costs 35,134,424 The project cashflow was calculated on an after-tax basis. The gross cashflow was US$21.5 million undiscounted. This value and other indicators are provided in Table Table 13.5 Life of project after tax cashflow summary Project Valuation Overview Before Tax (US$) Net cashflow (millions) $ %; (millions) $ %; (millions) $ %; (millions) $12.2 Internal Rate of Return 45.4% Payback period, years 2.8 Payback multiple 3.66 Total initial capital $7.7 Max neg. cashflow ($8.1) The internal rate of return (IRR) is 45.4%. The net present value (NPV) at a discount rate of 7.5% is US$14.1 million. The capital costs for the Friday project and relocating and rehabilitating the Rescue Mill were derived using CostMine. CostMine is an online costing database that uses regression curves to estimate capital and operating costs based on user inputs. The regression curves are typically non-linear and can overestimate or underestimate the costs if the user-entered values are outside the range of values used to derive the curves. CostMine outputs should be used with caution. Many of the costings do not include the ancillary supplies such as electric cables, piping, or structural support in the output. Installation and maintenance costs are also not included in the CostMine output. AMC recommends that an analogue process-plant recently constructed from a feasibility study is identified and the 6/10 ths Rule is applied to the total cost of the plant. Whilst this is an empirical approach, it is a recognized and reliable estimate of the total plant cost. This method can then be compared to the current capital cost estimate for the Friday project. To present a Mineral Reserve for the project, a first principles cost estimate and a benchmarking study should be completed. The benchmarking study will confirm the values determined in the first principles cost estimate. AMC believes that the mill capital cost to relocate, reinstall, and upgrade the throughput has been underestimated and should be re-estimated accounting for the following: Acquiring land for both the plant and tailings facilities. Obtaining the necessary operating permits for the plant and TDF. Removing the Rescue Mill and demolishing and disposing of the buildings at that site. A metallurgical testing programme to inform designing a process flowsheet. Designing, constructing, and fitting-out a new process facility, assuming all new equipment. amcconsultants.com 48

55 The rates used to estimate the mine operating costs were reasonable. When converted to metric values, the advance rates are consistent with unit rates for lateral and vertical development on other recently completed underground mining projects AMC has been involved with. The milling unit rate of US$50 /ton has been estimated from an unknown source (likely CostMine). For the type of process and recovery methods being proposed this cost appears to be high. If transportation costs to a remote mill have been included this would be a representative cost. Other operating costs need to be confirmed through a first principles cost estimate and/or benchmarking. amcconsultants.com 49

56 14 Conclusions 14.1 Friday project The Friday project represents an advanced exploration project extensively explored through geochemical and geophysical surveys, and reverse circulation (RC) and diamond core drilling programmes. The drilling methods employed and the sample spacing is suitable for delineation of the mineralization. The use of RC drilling for this style of mineralization can present a risk to defining mineralization intercepts as well as resultant assay grades, due to smearing of sample intervals and separation of higher-grade gold fractions. AMC has compared the RC drilling against twin-hole and adjacent diamond drillhole intercepts. Overall, the RC drilling correlates with the diamond drillhole results, indicating no significant bias with either drilling method. AMC was not provided with the full details of each phase of drilling, including survey information and sample recoveries. Given the style of mineralization, the presence of faulting and varying degrees of alteration, core recovery is a significant variable that requires investigation. Poor core recovery can result in losses in mineralization and therefore an under-reporting of grade, or the inverse with grade being over-reported. More work is warranted to substantiate the relationship between sample recovery and assay grades for the various exploration programmes. A lack of information for preceding exploration activities does not imply a fundamental issue with the methods used or the results obtained, it does however, present an increased level of uncertainty. Whilst advances in hand-held GPS units have seen improving levels of accuracy, final collar surveys should be undertaken using either total station pick-ups by a suitably qualified surveyor, or using a differential GPS unit with an appropriately located DGPS reference station. The sample preparation and assay methods are in line with industry-accepted methods for analysing gold mineralization. A relatively coarse pulverization size was used by Cyprus and Kinross during the exploration works, compared with the 74 µm final pulverization size more widely used in the industry. AMC was not provided with any details including quality control data, to ascertain whether the coarse-grind impacts on assay precision and accuracy. Re-assaying using a gravimetric finish for samples returning initial fire assays with atomic absorption (FA-AA) grades of >10 g/t Au is used widely within the industry. However, the calibration and accuracy of the scales is key to the use of this method, and it is important the results are supported with the use of high-grade pulverized duplicate samples. No details are available pertaining to the Canden sample preparation stages, although this reduces the confidence that can be placed on the samples from this phase of the drilling, the proportion of holes impacted is approximately 2 % of the available drillholes. Support for the sample data is limited, with QA/QC results only available for the 2009 to 2011 exploration works. The QA/QC results indicates reasonable levels of assay accuracy but poor precision, as demonstrated through the pulp duplicate results. Dacite dyke material was used for blanks in , however, results show it was unsuitable yielding assay values greater than detection limits. The 2011 silicasand blank samples in contrast, show most of the results to be around the detection limit. In 2017, an updated Mineral Resource estimate was carried out by HRC. The wireframes constructed by HRC for the Mineral Resource estimate appear reasonable and suitable, representing the known geological setting. An increase in gold grade is apparent in proximity to the dacite dyke. The interpretation of hangingwall and footwall mineralized domains relative to the dacite dyke is somewhat subjective and lacks geological or statistical support, but in the absence of any further details is considered a reasonable approximation. Future investigations should aim to better delineate these domains, as they form a key component of the Mineral Resource. AMC notes that the hangingwall domain also contains several significant grades >0.1 oz/ton. HRC has defined these >0.1 oz/ton areas as corresponding to quartz veins and breccias. Whilst there is a clustering of elevated grades, AMC was unable to identify any discernible degree of geological continuity between high-grade samples. amcconsultants.com 50

57 The domaining, compositing, and choice of top-cuts appears suitable. The use of an indicator estimation approach to prevent smearing between high-grade and low-grade areas is reasonable, but AMC has not identified any distinct high-grade outlier populations in respect to the overall population. HRC has assessed spatial grade continuity through variography in line with widely-used methods within the industry. Whilst the data supplied to AMC details the variogram model results, no example experimental variograms have been provided. The lack of experimental variograms reduces the confidence that can be placed on the models, as the quality of a variogram model is a function of the experimental variograms on which it is based. AMC has carried out an independent variography assessment using Isatis software. Reviewing the variogram contour fans, there is no clear indication of grade continuity within the five main domains. AMC therefore carried out variogram modelling using back-transformed omni-directional gaussian experimental variograms and variogram models for each of the domains. For the main dacite dyke hangingwall and footwall domains, the range of grade continuity appears to be in the order of 100 ft with nugget effect making up approximately a third to half of the total variance. The wall rock domain shows a significantly greater degree of grade continuity with a range of up to 600 ft and nugget making up approximately a third of the total variance. Whilst the HRC variogram model results for the low-grade mineralization is broadly in line with the AMC variogram results for wall rock, AMC considers the ranges proposed by HRC be excessive for the higher grade dacite dyke footwall and hangingwall domains. The estimation methods employed appear reasonable. However, validation of the block model indicates an underestimation of the higher grade dacite dyke hanging wall and footwall domains, possibly due to excessive grade smearing from the lower grade wall rock domain. Given the lack of support for the sample data, and limited evidence for defining the hangingwall and footwall domains, AMC believes that the Measured classified material should be downgraded to Indicated. Limited sampling to the west of the Monday fault should be considered as exploration potential and excluded from the Mineral Resource estimate. Shrinkage stoping is proposed for exploiting the Friday deposit. Shrinkage stoping was a widely used mining method in North America until the mid-1990s when health and safety concerns and technical improvements to drills motivated changing to mechanized mining equipment in steeply dipping narrow-vein deposits. A notable project risk is the adaptation of shrinkage mining to exploit the Friday deposit. The mining system described in the report PEA is an artisanal system that will be difficult to implement due to the lack of qualified mine operators. The mining method also has safety issues as the workforce stands on the muck-pile in the stope. Incidents of workers being killed or injured due to the muck-pile collapsing were experienced when this mining method was more widely practiced. The use of hand-held pneumatic drills has also been identified as a health and safety issue. The mining costs for shrinkage will be high relative to mechanized mining methods. It is labour-intensive and has a relatively lower productivity when compared to LHOS or variants of cut-and-fill (CAF). The cut-off grade used in the PEA varies between the calculated value of oz/ton and 0.18 oz/ton Au. Mechanization and reducing the mining and processing unit cost per ton will also decrease the cut-off grade. No Mineral Reserves for the Friday project have been declared. Further study and a more detailed analysis of the Modifying Factors needs to be completed. A pre-feasibility study (PFS) for the Friday project will need to include consideration of the following: Mining method alternatives. The plant site location. The process flowsheet for the plant. Permits for constructing and operating the plant. A tailings disposal facility needs to be permitted and designed. amcconsultants.com 51

58 AMC notes the following regarding the mining section of the PEA: Only one mining method was considered. There is no description or discussion about dilution, mining recovery, or process recovery, in the text of the report. The mining factors appear to be based on assumed values. The shrinkage mining method is heavily reliant upon labour, skills and training no longer widely in use. Mine backfill is referred to in the Table 16-3 of the PEA. However, there is no description of the technology, methods or processes included. The lack of a defined mineral processing technology or facility is a risk to the project. Future Mineral Reserves and mining operations are contingent upon defining all Modifying Factors and it is not clear how mine production would be processed. The mineral processing plant currently situated at the Rescue Project site does not fit into the proposed process flowsheet nor does it have enough throughput capacity. The assumed processing recovery of 94% is reasonable for most gold projects. However, AMC notes the following: The sulphide-associated gold mineralization will have to be recovered as a concentrate. The proportion of the Mineral Reserves that are sulphide-hosted and free gold is not quantified. The Rescue Mill is designed for gravity concentration and would not be suitable for recovering the sulphide-type mineralization. The process plant is only rated at 100 tpd versus the expected mining rate of 150 tpd. The Rescue process is not suitable for most of the mine production from Friday so, practically, a new process plant needs to be specified, designed, and acquired. Cost estimates and other inputs to a PEA cashflow model are estimated within a maximum confidence range of -50% to +100%. The PEA does not refer to a confidence range for the cost estimates in the text of the HRC March 2017 PEA report. The capital costs for the Friday mine and Rescue Mill were derived using CostMine. CostMine is an online costing database that uses regression curves to estimate capital and operating costs based on user inputs. The regression curves are typically non-linear and can overestimate or underestimate the costs if the userentered values are outside the range of values used to derive the curves. CostMine outputs should be used with caution. Many of the costings do not include the ancillary supplies such as electric cables, piping, or structural support in the output. Installation and maintenance costs are also not included in the CostMine output. AMC recommends that an analogue process plant recently constructed or from a feasibility study is identified and the 6/10 ths Rule is applied to the total cost of the plant. Whilst the 6/10 ths Rule is an empirical approach, it is a recognized and reliable estimate of the total plant cost. This method can then be compared to the current capital cost estimate for the Friday project. To declare Mineral Reserves, a first principle cost estimate and benchmarking the results to confirm the values should be completed. AMC believes that the mill capital cost to relocate, reinstall, and upgrade the throughput has been underestimated and should be re-estimated accounting for the following: Acquiring land for both the plant and tailings facilities. Obtaining the necessary operating permits for the plant and TDF. Removing the Rescue Mill and demolishing and disposing of the buildings at that site. A metallurgical testing programme to inform designing a process flowsheet. Designing, constructing, and fitting-out a new process facility, assuming all new equipment. The rates used to estimate the mine operating costs were reasonable. When converted to metric values, the advance rates are consistent with unit rates for lateral and vertical development on other recently completed underground mining projects AMC has been involved with. The milling unit rate of US$50 /ton has been estimated from an unknown source (likely CostMine). For the type of process and recovery methods being proposed, this cost appears to be high. If transportation costs to a remote mill have been included this would be a representative cost. Other operating costs need to be confirmed through a first principles cost estimate and/or benchmarking. amcconsultants.com 52

59 The approach taken to produce a discounted cashflow is consistent with mining-industry practice. Tax rates at a site or corporate level should be accounted for, as should amortization and depreciation. This would calculate the correct C1 and C2 cash costs and the all-in-sustaining-cost (AISC) used by the gold industry Buffalo Gulch project The Buffalo Gulch deposit is situated 3.2 km north-west of Elk City, Idaho. The area is underlain by the Proterozoic Belt Supergroup comprising gneiss, schist and quartzite units, which have been intruded by the Idaho batholith and later stage Tertiary rhyolite and dacite intrusive. Exploration activities have included Geochemical and geophysical surveys, RC and diamond core drilling, focusing on the near-surface oxide mineralization. The drilling methods used are in the opinion of AMC suitable for the style of mineralization under consideration. A lack of inclined core drilling limits the data available for geological interpretation. Drillhole intercepts appear to represent a sub-horizontal distribution of mineralization. Given sampling has taken place within oxide material, there is the potential that the higher-grade areas near the oxide-sulphide boundary represent zones of supergene enrichment and require further investigation. AMC has carried out a high-level comparison of the RC and diamond drilling, comparing RC holes with neighbouring diamond core drilling. The drillhole intercepts between both types of drilling show comparable mineralized intercept intervals with a reasonable correlation of grade considering the style of mineralization. Due to the drilling being largely constrained to the oxide horizon, AMC considers that Mineral Resource Estimates can only be undertaken for the oxide material, with fresh material constituting exploration potential. Limited drilling at the southern Buffalo area (five drillholes) has indicated some additional mineralization, however, further exploration is required to better define the potential extents. Mineral Resource estimates and all subsequent mine design, scheduling, and financial modelling stages rely on robust sample data on which to base the resource model. The lack of information pertaining to how the Buffalo Gulch samples have been prepared and analysed limits the confidence that can be placed on the sample data. The assay method used at the Bondar-Clegg laboratory has been described as geochemical method with atomic absorption (MRDI, 1996) which may signify the use of an aqua-regia-digest with AA finish rather than a fire assay. This method is often a cheaper and quicker method than fire assay but results in lower levels of precision and accuracy. In contrast, assays carried out at Chemex use a fire assay with gravimetric finish. Whilst the fire assay method is appropriate, the use of a gravimetric finish should be used only for high-grade samples. A gravimetric finish suffers from diminishing levels of precision as grade decreases due to scale precision limits. For a gold project, like Buffalo Gulch, a fire assay with atomic absorption finish would be the preferable assay method, with high-grade samples possibly re-assayed with a gravimetric finish. Due to the lack of details regarding the sample preparation and assay stages, there is a greater need for sample support through appropriate QA/QC systems and confirmation sampling. The current lack of QA/QC data limits the confidence that can be placed on any subsequent Mineral Resource Estimate for Buffalo Gulch. AMC believes confirmation sampling, and rigorous checks including the use of an appropriate QA/QC programme is required to give support to the sample data, and that the Mineral Resources be limited to an Inferred classification. Whilst density testwork is reported to have been undertaken, the work appears to be largely historical rather than current, with no evidence of reappraisal of the measurement methods used or the results derived. Whilst the density used in the Mineral Resource estimate of 16 ft 3 /t appears reasonable it lacks corroboration from available information. The density value used in the Mineral Resource therefore carries a level of uncertainty and risk. In 2017, an updated Mineral Resource estimate was carried out by HRC. The Mineral Resource is reported with an effective date of 10 December AMC has carried out a review of the sample database by lithology and confirms the finding noted by HRC during the grade estimation, that there is no clear change in grade associated with lithologies, except for an Eocene dyke located south of the estimated Mineral Resource. amcconsultants.com 53

60 The proposed processing route for the Buffalo Gulch deposit is via heap leaching, with treatment of oxide material. Given the method of processing, exploration has largely been limited to the oxide horizon with limited exploration of the underlying sulphide mineralization. The lack of sulphide sample data precludes reliably defining any grade variability between the oxide and sulphide samples. Both the oxide and sulphide samples show comparable mean grades, although the sulphide samples show less high-grade values, and a less variable grade range. A visual review of the sample data indicates possible supergene enrichment close to the oxide-sulphide boundary. The lack of information available for the sulphide mineralization, and that it is not planned to be mined under the current processing route, leads AMC to recommend the sulphides being excluded from the Mineral Resource estimation. All subsequent geostatistical and grade estimation stages should focus on the oxide mineralization, and treat the oxide as an individual domain. AMC carried out an independent variography review of the oxide mineralization only, with the review carried out using Snowdon Supervisor software. The AMC variography results show comparable orientations for the major and semi-major axis, with the major axis striking approximately and the down-dip orientation striking However, AMC has not identified any dip or plunge, with mineralization showing a horizontal orientation. AMC has identified differing variogram ranges than those reported by HRC. Using pairwise relative variograms a range of approximately 300 ft along-strike (340 /00 ) and down-dip (070 /00 ) was identified, along with a downhole (across-strike) range of 100 ft. The use of a 20 ft x 20 ft x 20 ft parent cell size relative to the average sample spacing of approximately 100 ft, combined with a large range single-search estimate introduces the potential risk of conditionally biasing the grade estimate. Using block sizes that are small relative to the sample spacing tends to result in grades being extrapolated rather than interpolated from the surrounding data resulting in an increase in the LaGrange multiplier, thus increasing the kriging variance. Using a single, large grade estimation ellipse increases the chance of excessive grade smoothing, particularly in areas with sparsely spaced, and limited numbers, of samples. The potential of a high-grade (supergene) zone at the oxide and sulphide boundary also increases the risk of smearing the higher grades into lower grade parts of the oxide mineralization, as well as into the sulphide domain. Based on the reports and data reviewed by AMC, there is a distinct lack of supporting QA/QC information for the sample data on which the grade estimation is based. A lack of support for the sample data undermines the confidence that can be placed on the assay data on which the estimates are based. Grade continuity has been interpreted through variography. The results shown by HRC show no clear variogram structures, however, this may be a function of the variogram parameters used, and can be improved through the use of pairwise variograms to remove some of the small-scale grade variability noise. Variography carried out by AMC shows that the sample spacing is sufficient to define grade continuity for the oxide mineralization. Sampling has largely been undertaken within the oxide mineralization with limited sampling in the underlying sulphide mineralization. Given the lack of robust investigation of the sulphide mineralization, and that the proposed processing method is for heap leach of the oxide, AMC believes that the sulphide mineralization should be omitted from the reported Mineral Resources. Due to the lack of QA/QC data and the density measurement information, AMC believes the Mineral Resources be considered as Inferred until more support is provided to the data on which the estimates are based. The Mineral Resources reported by HRC comprises the combined oxide and sulphide mineralization. AMC is of the opinion that the sulphide mineralization be excluded from the current resource due to a lack of sampling within the sulphide domain and that the proposed processing method will be for heap leaching of the oxide only. amcconsultants.com 54

61 In reviewing the block model, AMC noted that the lowest cut-off grades achievable in the model is oz/t. Whilst the model provided to AMC yields the same reported results at a oz/t cut-off grade as stated by HRC, no additional mineralization is available in the model for cut-off grades <0.008 oz/t. The Mineral Resources stated by HRC at cut-off grades of 0.06 oz/t and 0.04 oz/t, therefore cannot be substantiated from the supplied model Deadwood project The Deadwood project is situated three miles south of Buffalo Gulch and was discovered as part of the 1980s Bema exploration works. Geological investigations at Deadwood has largely focused on the surficial oxide mineralization with limited investigation of the underlying sulphide mineralization. Whilst the level of geological understanding at a regional-scale is good, the level of detail at a more local-scale is somewhat limited. Geochemical surveys over the Buffalo Gulch and Deadwood areas have been shown to identify mineralization for further follow-up drill investigations. The presence of an additional Deadwood lv anomaly, one mile south of Deadwood lll, is of interest and may present future exploration opportunities. A lack of geophysical response at Deadwood differs from results obtained for the Friday and Buffalo Gulch sites. Whilst not definitive to prove the lack of, or presence of mineralization, it may indicate a different characteristic to the Friday and Buffalo Gulch deposits. Some anomalies were identified near to the Deadwood project; however, these have not been investigated. AMC was not provided with a copy of the Deadwood drillhole database, therefore the views expressed are related to the summaries provided in the supplied technical reports. The drilling methods employed are in line with typical drilling techniques used for this style of mineralization. Due to exploration works being undertaken by the same operators as the Buffalo Gulch deposit, drilling is potentially comparable. No details are available regarding sample preparation, assay, or QA/QC methods. The absence of information for the Deadwood exploration works precludes AMC commenting on the suitability of methods, or the precision and accuracy of the samples Kimberley project The Kimberley project is situated approximately 20 miles east of the town of Riggins, Idaho. The project comprises 24 unpatented mining claims. Mineralization comprises a series of east west striking veins around which mining has taken place historically. Geological investigations in the Kimberley mine area appears to have focused on the gold quartz veins which were the primary targets of historical mining activities. Details regarding the characteristics and association of the gold mineralization is absent in the technical reports provided to AMC. Whilst historically reported grades within the veins show the presence of high-grade gold, the lack of systematic exploration data, in particular drilling, prevents an assessment as to the continuity of mineralization and the impact of possible mining dilution on recovered grades. The identification of skarn mineralization and mica carbonate schist host mineralization shows additional potential to the area. No detailed investigations of these styles of mineralization has been undertaken and these areas should only be considered prospective, requiring significant additional exploration activities to quantify their potential. Overall, the mineralization characteristics of the area presents an interesting set of exploration targets, but it is not clear as to which proportions of the veins, skarn, and mica carbonate schist fall within the Kimberley licences. Whilst gold grades appear attractive, the project may suffer through being area/tonnage limited. Exploration activities in the Kimberley area has been limited and poorly documented. Future investigations of the site will require the implementation of a systematic exploration programme, detailed surveying, and use of a robust QA/QC programme. Based on the lack of exploration data, no Mineral Resources can be estimated at present. amcconsultants.com 55

62 14.5 Rescue project The Rescue project is situated within the Warren mining district of Idaho, just south of the community of Warren, and situated within the Payette National Forest. A total of 22 unpatented federal lode mining claims and two unpatented mill site claims cover the site. Exploration works conducted at the Rescue project is limited and should be considered as early-stage exploration. At present, the quantity of sample data prevents the reporting of Mineral Resources. amcconsultants.com 56

63 15 References BJ Price Geological Consultants Inc, 2015, Technical Report, Buffalo Gulch, Baner and Deadwood Gold Properties, Elk City, Idaho County, Idaho, USA. Cox, S.F., 1999, Deformational controls on the dynamics of fluid flow in mesothermal gold systems, in McCaffrey, K.J.W., Lonergan, L., and Wilkinson, J.J., eds. Fractures, Fluid Flow and Mineralization. Geological Society, London, Special Publications 155, p Ebisch, J. 2003, Geology of the Kimberley Gold Project. Geosim Services Inc, 2013, Technical Report, Idaho Gold Project, Idaho County, Idaho, USA. Hard Rock Consulting LLC 2017a, National Instrument Technical Report: Preliminary Economic Assessment for the Friday Underground Project, Idaho County, Idaho, USA. Hard Rock Consulting LLC 2017b, National Instrument Technical Report on the Mineral Resource Estimate for the Orogrande Open Pit Project, Orogrande District, Idaho County, Idaho, USA. Hard Rock Consulting LLC 2017c, National Instrument Technical Report: Geology and Mineralization of the Kimberley Gold Project, Idaho County, Idaho, USA. Hard Rock Consulting LLC 2017d, National Instrument Technical Report: Geology and Mineralization of the Rescue Gold Project, Idaho County, Idaho, USA. Harper, G, 2011, Report on Rescue Mine and Kimberley Mine Properties, Idaho. Prepared for Shoshone Silver/Gold Mining Company. J.J. Brown P.G. LLC, 2017, National Instrument Technical Report: Geology and Mineralization for the Rescue Gold Project, Idaho County, Idaho, USA. Kahlert, B.H., 1989, Bema Gold Corporation, Geological Engineering Review of Proposed Gold Production and Operations, Vol. 1 Report and Appendices. Laczay, P.M., 2002, Geological Report on the Kimberley Gold-Silver Property. Prepared for Shoshone Silver Mining Co. Mineral Resources Development Inc (MRDI), 1996, Idaho Consolidated Metals Corporation, Buffalo Gulch Gold Project, Report Review and Update. amcconsultants.com 57

64 Our offices Australia Adelaide Level 1, 12 Pirie Street Adelaide SA 5000 Australia T E adelaide@amcconsultants.com Melbourne Level 29, 140 William Street Melbourne Vic 3000 Australia T E melbourne@amcconsultants.com Canada Toronto TD CanadaTrust Tower 161 Bay Street, 27 th Floor Toronto, ON M5J 2S1 Canada T E toronto@amcconsultants.com Singapore Singapore 30 Raffles Place, Level 17 Chevron House Singapore T E singapore@amcconsultants.com Brisbane Level 21, 179 Turbot Street Brisbane Qld 4000 Australia T E brisbane@amcconsultants.com Perth Level 1, 1100 Hay Street West Perth WA 6005 Australia T E perth@amcconsultants.com Vancouver 200 Granville Street, Suite 202 Vancouver BC V6C 1S4 Canada T E vancouver@amcconsultants.com United Kingdom Maidenhead Registered in England and Wales Company No Level 7, Nicholsons House Nicholsons Walk, Maidenhead Berkshire SL6 1LD United Kingdom T E maidenhead@amcconsultants.com Registered Office: Ground Floor, Unit 501 Centennial Park Centennial Avenue Elstree, Borehamwood Hertfordshire, WD6 3FG United Kingdom amcconsultants.com