Geological Report on Limestone Exploration of Mudhvay Sub-block A, Lakhpat Taluka, Kachchh District, Gujarat. Executive Summary

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Geological Report on Limestone Exploration of Mudhvay Sub-block A, Lakhpat Taluka, Kachchh District, Gujarat Executive Summary Prepared for Commissioner of Geology & Mining Government of Gujarat Prepared by Geovale service Pvt. Ltd 56, Ideal villas, Kochpukur, Rajarhat Kolkata-700 156 West Bengal January, 2017

Geological Report on Limestone Exploration of Mudhvay Sub-block A, Lakhpat Taluka, Kachchh District, Gujarat Executive Summary Prepared for Commissioner of Geology and Mining, Gujarat Geovale Services Pvt. Ltd 56, Ideal Villas, Kochpukur, Rajarhat Kolkata - 700 156 West Bengal, India www.geovale.com E: info@geovale.com January, 2017

Executive Summary Mudhvay Sub-block A is part of the Mudhvay Block in the Lakhpat Taluka in the Kachchh District of Gujarat. It is a N-S elongated irregular polygonal block with an area of 1.989 km2 (198.9 Ha) having dimensions of approx. 2.2 km in length and 1.15 km in width. The Mudhvay Block has been explored by Commissioner of Geology and Mining (CGM) through a Rapid Reserve Assessment Survey (RRAS) in 2009. The Sub-block A was later further explored for limestone in detail by Gujarat Mineral Development Corporation (GMDC) in 2014-2015 as a part of a Mudhvay Block (1277 Ha) Detailed Exploration Program. Cement grade nummulitic limestone occurs in the Mudhvay Block in the Eocene - Oligocene Fulra Formation comprising mostly of numulitic limestone and Oligocene - Miocene Maniyara Fort Formation comprising of shale, calcareous clay with thin limestone bands, which are part of the Tertiary Platformal sediments of Kachchh. In the Mudhvay Sub-block A, mostly Maniyara Fort Formation is exposed. Fulra Formation is exposed only in a very small patch the south-eastern part of the sub-block. However, Fulra Formation is intersected throughout the block in all the drillholes. Fulra Formation has thickness ranging from 50 m to 70 m of cement grade limestone and defines the main mineralised body. The overburden in the area, belonging mainly to Maniara Fort Formation, ranges from 8 m in the south to approximately 65 m in the northern part of the block. The block has a relief of 6 m, with altitude ranging from 23 m to 29 m above the MSL. The topography is gently rolling and a thin 1 3 m veneer of red brown soil overlying the Maniyara Fort Formation in most part of the Sub-block A. The block is located about 6 kms from the Kori Creek, which forms an estuarine inlet to the Arabian Sea, further south. The 3 kms buffer zone of Narayan Sarovar Wildlife Sanctuary is 2 kms to the south of the block. GMDC organized the topographic survey using Total Station theodolites and DGPS surveys to determine the boundary of the block and classified the block area as Government and Santhani Land. About 1.24 km2 (124 Ha, ~ 62%) of the total area of Mudhvay Sub-block A is

government land, and about 0.75 km2 (75 Ha, ~ 38%) remaining land is Santhani Land (land allocated to landless persons) for agriculture purposes. 14 diamond core drillholes, totaling 1901 m have been drilled within the Mudhvay Sub-block A in a 400m x 400 m grid. 439 half split core samples of 1 to 2 m length each, were pulverized to 150 microns at site and sent to Inspectorate Griffith s (IG) wet chemical laboratory at Gandhidham in Gujarat for assay. Element suite determined at IG's laboratory include SiO2, Al2O3, Fe2O3, TiO2, CaO, MgO, P2O5, Na2O, K2O, Cl, So3, R2O3 and LoI along with specific gravity on Dried Air basis using IS standard procedures. Geovale Services finalized the Geological Report of the Block based on the data provided by the CGM and GMDC. It carried out the 3D Geological Resource modeling of the ore body, using GEOVIA SurpacTM software. The ore body modeling process involved developing a geological database from the drillhole database, which has been validated by classical statistics and geostatistics. Surpac allows the data visualization by creation of sections along desired directions and defining ore-waste contact by manual on-screen digitization. The two stage solid modeling of the ore body by wire-framing the digitized cross sections and block modeling (50m x 50m x 10 m blocks) on the basis of geostatistically derived parameters allows estimation of 3D ore volume and block wise grades. Resources and grades have been derived using both Krigging and Inverse Distance Squared methods. Limestone of Fulra Formation is the main mineralised body considered for Geological Resource estimation. Though the specific gravity ranged from 2.2 to 2.6, a bulk density of 2.25 has been used as advised by the CGM, Gujarat for the tonnage determination of the limestone ore body. A cut off grade of 37% CaO and a thickness of 1.5 m has been applied to determine the resource volume and grade for every Surpac block. In Mudhvay Sub-block A, GMDC carried out General Exploration (G-2 Stage) exploration. The Geological Resource of limestone in the Block has been classified based on the Minerals (Evidence of Mineral Contents) Rules, 2015 notified by the Ministry of Mines. The total Geological Resource esatablished in Mudhvay Sub-block A is 264 Mt of Indicated Mineral Resources (UNFC 1997, 332 category).

The following table summarises the grade wise Indicated Geological Resource (UNFC 332) of Mundhvay Sub-block A. CaO% Table 1: Summary Resource Classification: Mudhvay Sub-block A Krigging Volume (m 3 ) Tonnes CaO% Avg Inverse Distance Volume (m 3 ) Tonnes CaO% Avg 0.0 -> 37.0 4925000 11081250 35.01 7525000 16931250 32.80 37.0 -> 40.0 11900000 26775000 38.66 7875000 17718750 38.28 40.0 -> 42.0 8725000 19631250 40.95 8775000 19743750 41.19 42.0 -> 44.0 24350000 54787500 43.23 23175000 52143750 43.10 >44.0 67325000 151481250 46.24 69875000 157218750 46.27 Grand Total 117225,000 263756250 43.98 117225000 263756,250 43.86 The following table provides the summary information about Mudhvay Sub-block A. Table 2: Summary Information Table: Mudhvay Sub-block A Name of the Block Mudhvay Sub-block A Location Summary Village Taluka District State Mudhvay Lakhpat Kachchh Gujarat Area Summary Size of the block (Sq km) 1.989 Boundary coordinates Point Easting (UTM) Northing (UTM) Latitude (N) Longitude (E) A-01 467229.997 2625028.425 23 44' 09.3674" 68 40' 42.4800" A-02 468062.952 2624551.745 23 43' 53.9277" 68 41' 11.9388" A-03 468064.002 2622830.001 23 42' 57.9419" 68 41' 12.1097" A-04 466908.319 2622814.308 23 42' 57.3475" 68 40' 31.2959" A-05 467106.389 2623653.386 23 43' 24.6463" 68 40' 38.2240" A-06 467061.075 2624334.243 23 43' 46.7823" 68 40' 36.5690" Accessibility Nearest rail head Bhuj

Road Airport Port Power State Highways and two lane metalled roads connecting the block area with Ahmedabad via Bhuj. Rudra Mata Domestic Airport, Bhuj Kandla Port near Gandhidham Akrimota Thermal Power Project of GMDC at Nani Chher Village in Lakhapat Taluka Hydrography Local drainage Rivers West/Northwest Mudhvay Nala Climate Average rainfall ( June-September) Temperature (winter - max and min) Temperature (summer - max and min) 100 mm 35 0 C and 8 0 C 40 0 C and 22 0 C Topography Toposheet Number 41 A/10 Nature of surface Gently rolling terrain sloping towards west Cadastral Summary Government Land 1.24 Sq Km (~62%) Santhani Land 0.75 Sq km (~38%) Forest Area NIL Exploration Summary Regional geological mapping (agency, scale) Geological Survey of India; Scale - 1:500000 Regional exploration Agency (RRAS) Commissioner of Geology and Mining, Gujarat Block exploration (agency) Gujarat Mineral Development Corporation Number of drillholes 14 Total metereage 1901 Resource Summary (Mineral Evidence Rule) Resource (UNFC categorisation, tonnage) G2, 332, 264 Mt Average grade 44% Limestone thickness 60 m (average) OB thickness 8 to 65 m Structure - strike and dip Strike: ENE-WSW; Dip: 3 0 to 7 0 towards NNW Faults None

Figure1 : Mudhvay Sub-block A (blue polygon) and Mudhvay Block (red polygon) are shown in the Google Earth imagery of Western Kuchchh

Indicative Clearances Mudhvay Sub-block A Particulars Details/Status 1. Forest Clearance Provided by the Government of Gujarat. However, any further action, if required, shall be the responsibility of the Successful Bidder. 2. Revenue Clearance Provided by the Government of Gujarat. However, any further action, if required, shall be the responsibility of the Successful Bidder. 3. Environmental and Wild life clearance (sanctuary, reserve or special zone clearances) To be obtained by the Successful Bidder 4. Consent to establish To be obtained by the Successful Bidder 5. Mining Plan Approval To be obtained by the Successful Bidder 6. Permission for mine operation To be obtained by the Successful Bidder 7. Explosive License (if required) To be obtained by the Successful Bidder