Azerbaijan International Mining Company Limited

Updated Mineral Resources Gedabek Mineral Deposit, Republic of Azerbaijan Azerbaijan International Mining Company Limited Prepared by CAE Mining CAE Mining 8585 Cote-de-Liesse Saint-Laurent Quebec H4T 1G8 Canada

Executive Summary CAE Mining was requested, by the Azerbaijan International Mining Company Limited, to update the mineral resources estimation of the Gedabek Mineral Deposit located in the Republic of Azerbaijan. This update is an extension of the previous mineral resources estimations done by SRK Consulting Incorporated (SRK, 2007) and SGS Canada Incorporated (SGS, 2010) in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004). The updated mineral resources estimation was done by taking into consideration the information of the previous (2006) and most recent (2010 and 2011) exploration drilling campaigns. The main objectives of the recent exploration drilling campaign consisted in increasing the level of geological knowledge and confidence of the quantity (tonnage) and quality (gold, copper and silver grades) of: Mineral resources and ore reserves within the current economic open pit limit This objective was reached by the Phase I of the intensive exploration drilling campaign that consisted of 60 drillholes with 5,452.22 meters drilled, 4,626 samples prepared and assayed Mineral resources around the current economic open pit limit as a probable expansion of it in future This objective was reached by the Phase II of the intensive exploration drilling campaign that consisted of 56 drillholes with 9,058.48 meters drilled, 4,080 samples prepared and assayed In addition, other aim of the intensive exploration drilling campaign consisted in assessing the technical and economic feasibility of future mineral processing alternatives of the oxide and sulphide mineralisation. The objective of this assessment consists in increasing the gold, copper and silver recovered metal content and economic value of the expected final products. The updated mineral resources also considered a much better understanding of the geological and structural geology setting of the mineral deposit. This knowledge was obtained by a recent re-interpretation of the information taking into account surface and open pit geological and structural geology mapping. The Gedabek Mineral Deposit has the style of mineralisation and type of porphyry gold deposit (Robert, Poulsen and Dube, 1997), which is confirmed by the extensive analysis, interpretation and processing of the previous and recent source of geological and chemical information. 1 P a g e

The statement is also supported by the geological and structural geology cross sections with the spatial distribution of the gold, copper and silver mineralisation located under or immediate to the geological contact between the andesitic and dacitic lavas and volcaniclastic tuffs and the dacitic quartz porphyry. Based on an extensive analysis the 95.12 % of the drillholes composited with an interval length equal to 2 meters and gold grade greater than or equal to 0.3 g/t, intercepted the economic mineralisation. This information is confirming as well the hypothesis that the gold, copper and silver mineralisation is widely spread and disseminated in the geological contact between the andesitic and dacitic lavas and volcaniclastic tuffs and dacitic quartz porphyry. The updated mineral resources of the Gedabek Mineral Deposit were spatially estimated by applying the ordinary kriging geostatistical algorithm. Additionally, by accessing the information of the updated, integrated and validated drillhole database. The classification of these updated mineral resources was in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004). The updated mineral resources were constrained with both the original surface topography and the open pit surface topography dated on December 30th, 2011. For comparison purposes with the previous mineral resources estimation done by SRK Consulting Incorporated (SRK, 2007) and SGS Canada Incorporated (SGS, 2010), the updated measured, indicated and inferred mineral resources of the oxide and sulphide mineralisation together based on a cut-off grade of 0.3 g/t of gold is described in the following table. Classification Tonnage Grades Products Au Cu Ag Au Cu Ag t g/t % g/t Oz t Oz Measured 22,349,562 1.028 0.255 8.249 738,958 57,069 5,927,487 Indicated 14,762,015 0.665 0.167 5.649 315,424 24,696 2,681,064 Measured and Indicated 37,111,577 0.884 0.220 7.215 1,054,382 81,765 8,608,551 Inferred 11,027,402 0.626 0.119 4.787 222,040 13,125 1,697,102 2 P a g e

Contents Section 1 Introduction... 8 Section 2 Exploration Drilling... 9 2.1 Collar Information... 10 2.2 Survey Information... 11 2.3 Geology Information... 11 2.4 Assay Information... 12 2.5 Drillhole Database... 12 Section 3 Mineral Deposit... 16 3.1 Geology... 16 3.2 Structural Geology... 21 Section 4 Estimation... 25 4.1 Composites... 25 4.2 Statistical Analysis... 26 4.3 Geostatistical Analysis... 31 4.4 Geological Database... 32 4.5 Interpolation... 32 4.6 Validation... 33 Section 5 Mineral Resources... 34 5.1 Mineral Resources Classification Criteria... 34 5.1.1 Measured Mineral Resources... 34 5.1.2 Indicated Mineral Resources... 35 5.1.3 Inferred Mineral Resources... 35 5.2 Mineral Resources of the Oxide Mineralisation... 36 5.3 Mineral Resources of the Sulphide Mineralisation... 36 5.4 Mineral Resources of the Mineralisation... 38 Section 6 Recommendations... 46 Section 7 References... 48 Section 8 Competence and Responsibility... 49 3 P a g e

List of Tables Table 2.1 Exploration Drilling Campaigns... 10 Table 4.1 Descriptive Statistics of the Drillhole Core Intervals Length [m] by Exploration Drilling Campaigns... 27 Table 4.2 Descriptive Statistics of the Bulk Density [t/m 3 ] by Lithology and Mineralisation Types... 27 Table 4.3 Descriptive Statistics of the Drillhole Composites based on a Cut-Off Grade of 0.3 g/t of Gold by Lithology and Mineralisation Types... 28 Table 4.4 Descriptive Statistics of the Drillhole Composites based on a Cut-Off Grade of 0.3 g/t of Gold by Combining Lithology and Mineralisation Types... 29 Table 4.5 Parameters of the Variograms Modelled by Structural Domain... 31 Table 4.6 Descriptive Statistics of the Drillhole Composites and Blocks based on a Cut-Off Grade of 0.3 [g/t] of Gold... 33 Table 5.1 Mineral Resources of the Oxide Mineralisation based on a Cut-Off Grade of 0.3 [g/t] of Gold... 36 Table 5.2 Mineral Resources of the Sulphide Mineralisation based on a Cut-Off Grade of 0.3 [g/t] of Gold... 38 Table 5.3 Mineral Resources of the Mineralisation based on a Cut-Off Grade of 0.3 [g/t] of Gold... 38 Table 5.4 Mineral Resources of the Oxide Mineralisation... 39 4 P a g e

List of Tables Continuation Table 5.5 Mineral Resources of the Sulphide Mineralisation... 40 Table 5.6 Mineral Resources of the Mineralisation... 41 5 P a g e

List of Figures Figure 2.1 Location Map of the GDDD's Exploration Drilling Campaign... 13 Figure 2.2 Location Map of the Previous and GDRC's Exploration Drilling Campaigns... 13 Figure 2.3 Location Map of the Previous and GDRD's Exploration Drilling Campaigns... 14 Figure 2.4 Location Map of the Previous and SGSDD's Exploration Drilling Campaigns... 14 Figure 2.5 Location Map of the Previous and AIMCDD's Exploration Drilling Campaigns... 15 Figure 2.6 Location Map of the GDDD's, GDRC's, GDRD's, SGSDD's and AIMCDD's Exploration Drilling Campaigns... 15 Figure 3.1 Geological Cross Sections of the Lithological Contact and Spatial Distribution of Gold Mineralization by Indicators... 18 Figure 3.2 Geological Cross Sections of the Lithological Contact and Spatial Distribution of Copper Mineralization by Indicators... 19 Figure 3.3 Geological Cross Sections of the Lithological Contact and Spatial Distribution of Silver Mineralization by Indicators... 20 Figure 3.4 Geological Cross Sections of the Lithological Contact and Mineralisation Surface Boundary... 22 Figure 3.5 Location Map of the Mapped and Interpreted Faults Sets... 23 Figure 3.6 Location Map of the Mapped and Interpreted Faults Sets, Exploration Drilling Campaigns and Structural Domains... 23 6 P a g e

List of Figures Continuation Figure 3.7 Northeast Perspective View of the Exploration Drilling Campaigns and Spatial Modelling of the Sets of Faults and the Geological Contact between the Andesitic and Dacitic Lavas, Volcaniclastic s and Dacitic... 24 Figure 4.1 Box and Whisker Diagram of the Drillhole Core Intervals Length [m] by Exploration Drilling Campaigns... 25 Figure 4.2 Box and Whisker Diagram of the Bulk Density [t/m 3 ] by Lithology and Mineralisation Types... 26 Figure 4.3 Box and Whisker Diagram of the Gold [g/t], Copper [%] and Silver [g/t] Grades of the Drillhole Composites by Lithology and Mineralisation Types... 30 Figure 5.1 Plan Perspective View of the Updated Measured, Indicated and Inferred Mineral Resources of the Gedabek Mineral Deposit... 37 Figure 5.2 Cross Sections of the Updated Measured, Indicated and Inferred Mineral Resources of the Gedabek Mineral Deposit... 37 Figure 5.3 Tonnage-Cut-Off Grade-Average Grade Plots of the Updated Measured Mineral Resources by Type of Mineralisation... 42 Figure 5.4 Tonnage-Cut-Off Grade-Average Grade Plots of the Updated Indicated Mineral Resources by Type of Mineralisation... 43 Figure 5.5 Tonnage-Cut-Off Grade-Average Grade Plots of the Updated Inferred Mineral Resources by Type of Mineralisation... 44 Figure 5.6 Tonnage-Cut-Off Grade-Average Grade Plots of the Updated Measured, Indicated and Inferred Mineral Resources by Type of Mineralisation... 45 7 P a g e

Section 1 Introduction CAE Mining was requested, by the Azerbaijan International Mining Company Limited, to update the mineral resources estimation of the Gedabek Mineral Deposit located in the Republic of Azerbaijan. This update is an extension of the previous mineral resources estimations done by SRK Consulting Incorporated (SRK, 2007) and SGS Canada Incorporated (SGS, 2010) in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004). The objective of this document consists in reporting the estimation of the updated mineral resources of the Gedabek Mineral Deposit, which was based on the source of information from previous (2006) and recent (2010 and 2011) exploration drilling campaigns. In addition, this document is enhancing and complementing specific sections of the previously published reports of SRK Consulting Incorporated (SRK, 2007) and SGS Canada Incorporated (SGS, 2010). The specific sections were enhanced and complemented throughout of an extensive validation, analysis, interpretation and processing of the up to date, integrated and validated source of information from the whole exploration drilling campaigns. Based on a comprehensive review of the previously published reports by SRK Consulting Incorporated (SRK, 2007) and SGS Canada Incorporated (SGS, 2010), the other sections of both reports still remaining as a good source of information regarding to the mineral resources estimation of the Gedabek Mineral Deposit. Additionally, the technical audits carried out by the Competent Person in the Gedabek Mining and Mineral Processing Operation during the second half of 2011, confirmed that the exploration geologists were implementing and improving the best practices and developing systematic quality assurance and quality control activities regarding to the: Drillhole coordinates and elevation surveyed, computed and recorded Drillhole core recovered, handled, photographed and stored Downhole measurements surveyed and recorded Geological drillhole core logged, coded and recorded Drillhole core sample prepared, assayed and recorded Drillhole database integrated, validated and recorded The following sections of this document describe the contribution and results of the analysis, interpretation and processing of the information from the previous (2006) and recent (2010 and 2011) exploration drilling campaigns done in the Gedabek Mineral Deposit. 8 P a g e

Section 2 Exploration Drilling An intensive exploration drilling campaign identified as SGSDD's was carried out in the Gedabek Mining and Mineral Processing Operation during the second half of 2010 and the whole 2011. The main objectives of this intensive exploration drilling campaign consisted in increasing the level of geological knowledge and confidence of the quantity (tonnage) and quality (grades) of: Mineral resources and ore reserves within the current economic open pit limit This objective was reached by the Phase I of the intensive exploration drilling campaign that consisted of 60 drillholes with 5,452.22 meters drilled, 4,626 samples prepared and assayed Mineral resources around the current economic open pit limit as a probable expansion of it in future. This objective was reached by the Phase II of the intensive exploration drilling campaign that consisted of 56 drillholes with 9,058.48 meters drilled, 4,080 samples prepared and assayed. In addition, other aim of the intensive exploration drilling campaign consisted in assessing the technical and economic feasibility of future mineral processing alternatives of the oxide and sulphide mineralisation. The objective of this assessment consists in increasing the gold, copper and silver recovered metal content and economic value of the expected final products. The mineral processing assessment was based on statistically representatives and spatially unbiased drillhole core samples of the oxide and sulphide mineralisation within the deposit. In November of 2011, another more intensive exploration drilling campaign identified as AIMCDD's was defined, approved and started. This AIMCDD's drilling campaign was defined based on the analysis, interpretation and processing of the results of the previous (GDDD's. GDRC's and GDRD's) and recent (SGSDD's) drilling campaigns. The most important purpose of this exploration drilling campaign consists in increasing the mineral resources mainly in the South and Southeast zones of the Gedabek Mineral Deposit. The Figures 1-6 are the location maps of the GDDD's, GDRC's, GDRD's, SGSDD's and AIMCDD's exploration drilling campaigns, which are shown in a progressive order the implemented exploration strategies. The spatial distribution of the exploration drilling campaigns is confirming these exploration strategies, which were based on the next criteria: 9 P a g e

Increasing the level of geological knowledge and confidence of the mineral resources This objective is being reached by defining a 20 meters drilling grid spacing pattern Increasing the mineral resources This objective is being reached by defining a 80 meters drilling grid spacing pattern The Table 2.1 summarises the type, diameter, number and percent of drillholes drilled in the different exploration drilling campaigns. In addition, the number and percent of meters drilled, the drillhole core average recovery, the number of samples prepared and assayed considered in the previous and this mineral resources estimations. Table 2.1 - Exploration Drilling Campaigns Name Drillholes Meters Recovery Samples and Assays Type Diameter Number Percent Number Percent Percet Number Percent GDDD's DD HQ-NQ 53 17.85 6,100.90 17.46 92.05 3,580 16.60 GDRC's RC 33 11.11 2,832.00 8.11 2,864 13.28 GDRD's RC-DD PQ-HQ-NQ 83 27.95 9,479.30 27.13 97.35 4,687 21.74 SGSDD's DD PQ-HQ-NQ 116 39.06 14,510.70 41.53 92.97 8,800 40.81 AIMCDD'S DD HQ-NQ 12 4.04 2,013.30 5.76 97.61 1,633 7.57 Total 297 100.00 34,936.20 100.00 94.38 21,564 100.00 DD - Diamond Drilling RC - Reverse Circulation Drilling The fundamental information for the development of the mineral resources estimation was verified an validated in the technical audits carried out by the Competent Person in the Gedabek Mining and Mineral Processing Operation during the second half of 2011. This fundamental information is regarding to the collar, survey, geology, assays and drillhole database of the previous (2006) and recent (2010 and 2011) drilling campaigns. The following sections describe the results obtained of the verification and validation processes done by the Competent Person. 2.1 Collar Information The information of the coordinates and elevation surveyed, computed and recorded of the previous and recent exploration drilling campaigns were verified, validated and recorded in the up to date and integrated drillhole database. 10 P a g e

The coordinates and elevation of each drillhole is surveyed, computed and recorded by the Topography Department and by applying the same standard operating procedure as was stated in the mineral resources report of SGS Canada Incorporated (SGS, 2010). The digital information recorded regarding to the coordinates and elevation surveyed of each drillhole is being directly transferred to the up to date, integrated and validated drillhole database. 2.2 Survey Information A downhole deviation measurements surveying procedure was implemented in the last quarter of 2011. The Reflex EZ-Trac instrument was acquired and implemented by the Exploration Department to measure systematically the downhole azimuth and dip of each exploration drillhole. In the previous exploration drilling campaigns, the downhole deviation of the 22.89 % (19 out of 83) of the GDRD's drillholes were measured by the Flexit instrument. In the case of the recent exploration drilling campaigns, the downhole deviation of the 9.48 % (11 out of 116) and 91.67 % (11 out of 12) of the SGSDD's and AIMCDD's drillholes respectively were measured by the Reflex EZ-Trac instrument. The number of downhole deviation measurements of the GDRD's drillholes were 89 and in the case of the SGSDD's and AIMCDD's drillholes were 180. The average downhole deviation measurements interval was 20 meters of the previous and recent exploration drilling campaigns. The minimum, maximum and average of the 269 downhole deviation measurements carried out of the GDRD's, SGSDD's and AIMCDD's drillholes are correspondingly 0, 5.10 and 0.33. The results of the downhole measurements surveying are confirming that these and the rest of the drillholes were considered as vertical in this mineral resources estimation process. The digital information recorded about the downhole deviation measurements surveyed by the Reflex EZ-Trac instrument of each drillhole is being directly transferred to the up to date, integrated and validated drillhole database. 2.3 Geology Information The geological information considered in the mineral estimation comes from the geological core logging process. The geological information logged is recorded in a previously structured form and based on defined codes. These codes are related to the lithological, alteration and mineralisation attributes regarding to the Gedabek Mineral Deposit. 11 P a g e

The whole geological information recorded in the drillhole database from the previous and recent exploration drilling campaigns was verified and validated during the last quarter of 2011. This process was carried out throughout the geological and structural geology interpretation of systematic geological cross sections of the Gedabek Mineral Deposit. The inconsistencies and errors in the codes were fixed and the integrated and validated drillhole database was updated with reliable source of geological information. 2.4 Assay Information The drillhole core sampled, prepared, shipped, assayed and recorded procedures are still being the same as were described in detail in the reports of SRK Consulting Incorporated (SRK, 2007) and SGS Canada Incorporated (SGS, 2010). Additionally, the quality assurance and quality control processes and results based on duplicate, blank and standard samples are consistent in the GDDD's, GDRC's, GDRD's, SGSDD's and AIMCDD's exploration drilling campaigns. In fact, the sample preparation and analytical method applied by the OMAC Laboratory are kept the same. The digital information provided by OMAC Laboratory is being directly transferred to the up to date, integrated and validated drillhole database. 2.5 Drillhole Database The up to date drillhole database was structured and integrated with collar, survey, geology and assay information from the GDDD's, GDRC's, GDRD's, SGSDD's and AIMCDD's exploration drilling campaigns as is shown in Table 2.1. Throughout the analysis, interpretation and processing activities carried out for the development of the mineral resources estimation process, the drillhole database was verified and validated. In addition, the process confirmed that the drillhole database is reliable and consistent with the style of the mineralisation and type of the Gedabek Mineral Deposit. 12 P a g e

566,500 567,000 567,500 568,000 4,494,000 4,494,000 4,493,500 4,493,500 4,493,000 4,493,000 4,492,500 4,492,500 4,492,000 4,492,000 4,491,500 4,491,500 566,500 567,000 567,500 568,000 Figure 2.1 - Location Map of the GDDD's [red colour dots] Exploration Drilling Campaign. 566,500 567,000 567,500 568,000 4,494,000 4,494,000 4,493,500 4,493,500 4,493,000 4,493,000 4,492,500 4,492,500 4,492,000 4,492,000 4,491,500 4,491,500 566,500 567,000 567,500 568,000 Figure 2.2 - Location Map of the Previous [red colour dots] and GDRC's [blue colour dots] Exploration Drilling Campaigns. 13 P a g e

566,500 567,000 567,500 568,000 4,494,000 4,494,000 4,493,500 4,493,500 4,493,000 4,493,000 4,492,500 4,492,500 4,492,000 4,492,000 4,491,500 4,491,500 566,500 567,000 567,500 568,000 Figure 2.3 - Location Map of the Previous [red colour dots] and GDRD's [blue colour dots] Exploration Drilling Campaigns. 566,500 567,000 567,500 568,000 4,494,000 4,494,000 4,493,500 4,493,500 4,493,000 4,493,000 4,492,500 4,492,500 4,492,000 4,492,000 4,491,500 4,491,500 566,500 567,000 567,500 568,000 Figure 2.4 - Location Map of the Previous [red colour dots] and SGSDD's [blue colour dots] Exploration Drilling Campaigns. 14 P a g e

566,500 567,000 567,500 568,000 4,494,000 4,494,000 4,493,500 4,493,500 4,493,000 4,493,000 4,492,500 4,492,500 4,492,000 4,492,000 4,491,500 4,491,500 566,500 567,000 567,500 568,000 Figure 2.5 - Location Map of the Previous [red colour dots] and AIMCDD's [blue colour dots] Exploration Drilling Campaigns. 566,500 567,000 567,500 568,000 4,494,000 4,494,000 4,493,500 4,493,500 4,493,000 4,493,000 4,492,500 4,492,500 4,492,000 4,492,000 4,491,500 4,491,500 566,500 567,000 567,500 568,000 Figure 2.6 - Location Map of the GDDD's, GDRC's, GDRD's, SGSDD's and AIMCDD's [red colour dots] Exploration Drilling Campaigns. 15 P a g e

Section 3 Mineral Deposit A concise explanation regarding to the regional and local geology and structural geology setting of the Gedabek Mineral Deposit can be founded in the report of SRK Consulting Incorporated (SRK, 2007). However, the main statement is that the Gedabek Mineral Deposit is product of a tectonic and magmatic cycle with progressive development from oceanic magmatism in the Jurassic to continental magmatism in the Tertiary. This magmatic episode generated the most important metallogenic belt in the middle East region called Tethyan and subsequently the development of a range of types of hydrothermal mineral deposits such as the Gedabek Mineral Deposit. This section describes the major aspects of the geology and structural geology of the Gedabek Mineral Deposit as an essential background and component for the subsequent mineral resources estimation process. 3.1 Geology The Gedabek Mineral Deposit belongs to a structurally complex zone called Somkhit- Agdam (SRK, 2007). This zone is constituted by volcanics rocks of the Jurassic and dioritic to granitic intrusives rocks from the Jurassic to Tertiary. The volcanics rocks includes andesitic and dacitic lavas and volcaniclastic tuffs. The sequence of volcanic rocks are cuts by a set of faults that allowed emplacement of intrusives stocks such as the dacitic quartz porphyry of the Oligocene, which hosts the gold, copper and silver mineralisation. The volcanics rocks, andesitic and dacitic lavas and volcaniclastic tuffs are grey to lightgreenish grey colour, principally bedded, locally hornfelsed and propylitised are on top of the dacitic quartz porphyry. The dacitic quartz porphyry of light gray colour contains 5% to 20% quartz phenocrystals, which is variable altered and fractured with mineralised stockworks. In addition, a quartz diorite-granodiorite intrusive and its contact of a not mineralised skarn of garnet-vesuvianite-wollastonite is also located in the East of the dacitic quartz porphyry. The most important alteration in the Gedabek Mineral Deposits is the silicification located in the upper part of the dacitic quartz porphyry, which consists of a fine grained, vuggy silica, sericite, alunite, pyrite and clay minerals (SGS, 2010). These extrusive and intrusive igneous rocks and the silicification alteration were drilled, identified and logged during the previous and recent exploration drilling campaigns. A petrography study from drillhole core and outcrops samples was carried out by SGS Lakefield Research Limited (Grammatikopoulos,,Prout and Morton, 2010), confirming the mineralogical and textural characteristics of the extrusive and intrusive igneous rocks, which hosts the gold, copper and silver mineralisation. 16 P a g e

In regards to the economic mineralisation, the Gedabek Mineral Deposit exhibits many types of distinctive mineralogical and textural features identified during the different exploration drilling campaigns (SRK, 2007). Currently, there is not a detailed understanding about the genesis of the Gedabek Mineral Deposit. However, due to the extensive analysis, interpretation and processing of the previous and recent source of geological and chemical information, the Gedabek Mineral Deposit has the main characteristics of a porphyry gold deposit (Robert, Poulsen and Dube, 1997). This statement is also supported by the geological cross sections showing the spatial distribution of the gold, copper and silver mineralisation by indicators in Figures 3.1, 3.2 and 3.3 respectively. The geological cross sections show that the mineralisation is located under or immediate geological contact between the tuff (andesitic and dacitic lavas and volcaniclastic tuffs) and the quartz porphyry (dacitic quartz porphyry). Additionally, the results of the exploration drilling campaigns indicated that the 79.80 % (237 out of 279) of the drillholes intercepted the economic mineralisation. The gold, copper and silver mineralisation has been affected over time by a weathering process and an oxide zone has been identified and located in some upper part of the Gedabek Mineral Deposit. This process transformed and concentred the mineralogical and textural characteristics of the economic and non economic mineralisation. During the geological core logging process of the exploration drilling campaigns, these mineralogical and textural characteristics has been also identified, logged, coded and recorded. The oxide, transition and sulphide mineralisation zones have been identified and mapped during the exploration and the open pit exploitation processes. These mineralisation zones have an important economic impact in the Gedabek Mining and Mineral Processing Operation. Currently, the gold, copper and silver mineralisation located in the oxide zones is being treated by heap leaching process. In the case of the sulphide mineralisation, a technical and financial analysis of mineral processing alternatives are being researched. A precise and accurate estimation of the mineral resources in both oxide and sulphide mineralisation was required. The surface boundary of the oxide and sulphide mineralisation was spatially modelled by applying implicit modelling methodology. This surface boundary was also generated by combining the geological and chemical source of information of the up to date, integrated and validated drillhole database. The analysis, interpretation and processing of the information carried out for the generation of the surface boundary resulted in the following chemical criteria: Oxide Mineralisation S < 1 % Fe / S Ration 3 17 P a g e

Percentile 95 % Au 5.310 g/t Percentile 90 % Au 2.955 g/t Percentile 75 % Au 1.290 g/t Percentile 50 % Au 0.580 g/t Percentile 25 % Au 0.320 g/t Percentile 10 % Au 0.238 g/t Percentile 5 % Au 0.215 g/t Figure 3.1 - Geological Cross Sections [567,150 East] of the Lithological Contact [black colour lines] and Spatial Distribution [blue color dots] of Gold Mineralization by Indicators 18 P a g e

Percentile 95 % Cu 1.123 % Percentile 90 % Cu 0.706 % Percentile 75 % Cu 0.321 % Percentile 50 % Cu 0.130 % Percentile 25 % Cu 0.046 % Percentile 10 % Cu 0.018 % Percentile 5 % Cu 0.011 % Figure 3.2 - Geological Cross Sections [567,150 East] of the Lithological Contact [black colour lines] and Spatial Distribution [blue color dots] of Copper Mineralization by Indicators 19 P a g e

Percentile 95 % Ag 42.832 g/t Percentile 90 % Ag 25.120 g/t Percentile 75 % Ag 11.450 g/t Percentile 50 % Ag 4.913 g/t Percentile 25 % Ag 2.301 g/t Percentile 10 % Ag 1.150 g/t Percentile 5 % Ag 0.745 g/t Figure 3.3 - Geological Cross Sections [567,150 East] of the Lithological Contact [black colour lines] and Spatial Distribution [blue color dots] of Silver Mineralization by Indicators 20 P a g e

Sulphide Mineralisation S 1 % Fe / S Ration < 3 Additional geological and chemical information is required for the generation of a reliable surface boundary of the oxide and sulphide mineralisation. However, the surface boundary generated is considered as the best source of information at this time period. The Figure 3.4 display the geological cross sections of the lithological contact between the tuff (andesitic and dacitic lavas and volcaniclastic tuffs) and the quartz porphyry (dacitic quartz porphyry). The same Figure 3.4 shows as well the mineralisation surface boundary between the oxide (top) and sulphide (bottom) zones. 3.2 Structural Geology The Gedabek Mineral Deposit is located within a structural complex identified as Somkhit-Agdam zone (SRK, 2007) and several sets of faults have been identified and mapped during the exploration and the open pit exploitation processes. In fact, several faults were also recognised during the geological and structural geology interpretation of systematic cross sections of the exploration drilling campaigns. These mapped and interpreted sets of faults that cuts the sequence of extrusive and intrusive igneous rocks were grouped according to the following orientations: NE 20-30 SW NE 60-75 SW NW 10-45 SE NW 70-85 SE The Figure 3.5 displays these four sets of faults that displaced the andesitic and dacitic lavas and volcaniclastic tuffs and also the dacitic quartz porphyry, which is mainly associated with the gold, copper and silver mineralisation. Three structural domains have been defined and generated by taking into account the four sets of faults as is shown in Figure 3.6. These structural domains displaced the trend of the mineralisation and subsequently the orientation and inclination of it alos change. The main purpose of these structural domains consists in constraining the spatial estimation of the gold, copper and silver grades within the Gedabek Mineral Deposit. A perspective view of the spatial modelling of the geology and structural geology of the Gedabek Mineral Deposit is shown in Figure 3.7. The spatial distribution of the exploration drilling campaigns, sets of faults and geological contact between the extrusive and intrusive igneous rocks are shown in Figure 3.7 as well. 21 P a g e

567,000 East 567,100 East 567,200 East 567,300 East 567,400 East 567,500 East 567,600 East Figure 3.4 - Geological Cross Sections of the Lithological Contact [black colour lines] and Mineralisation Surface Boundary [red colour lines]. 22 P a g e

NE 20-30 SW NE 60-75 SW NW 10-45 SE NW 70-85 SE Figure 3.5 - Location Map of the Mapped and Interpreted Faults Sets [red, orange, yellow and green colour lines]. Domain 1 Domain 2 Domain 3 Figure 3.6 - Location Map of the Mapped and Interpreted Faults Sets [red, orange, yellow and green colour lines], Exploration Drilling Campaigns [blue colour dots] and Structural Domains [red, orange and yellow area]. 23 P a g e

Figure 3.7 - Northeast Perspective View of the Exploration Drilling Campaigns [white colour lines] and Spatial Modelling of the Sets of Faults [red, orange, yellow and green colours surfaces] and the Geological Contact [purple colour surface] between the Andesitic and Dacitic Lavas, Volcaniclastic s and Dacitic. 24 P a g e

Section 4 Estimation The objective of this section consists in describing the ordered sequence of stages that were applied for the spatial estimation of the gold, copper and silver grades of the mineralisation. The spatial estimation of the economic mineralisation was based on the source of information contained in the up to date, integrated and validated drillhole database. In addition, taking into consideration the geological and structural geology spatial modelling of the Gedabek Mineral Deposit. 4.1 Composites The drillhole core intervals that intercepted the gold, copper and silver mineralisation of the Gedabek Mineral Deposit were sampled, prepared and assayed during the development of the Exploration Drilling Campaigns. The descriptive statistics of the drillhole core intervals length integrated in the exploration drillhole database are shown in both the Table 4.1 and the box and Whisker diagram in Figure 4.1. Table 4.1 - Descriptive Statistics of the Drillhole Core Intervals Length [m] by Exploration Drilling Campaigns Name Descriptive Statitistics Samples Minimum Quartile Maximum Range Mean First Second Third GDDD's 3,580 0.10 0.50 1.00 2.00 4.80 4.70 1.20 GDRC's 2,864 0.10 1.00 1.00 1.00 2.50 2.40 1.10 GDRD's 4,687 0.05 1.00 1.50 2.00 4.00 3.95 1.42 SGSDD's 8,800 0.03 1.00 1.00 1.10 2.90 2.87 1.09 AIMCDD'S 1,633 0.10 1.00 1.00 1.00 2.00 1.90 0.91 Total 21,564 0.03 1.00 1.00 1.50 4.80 4.77 1.17 The univariate statistical analysis indicated that 99.40 % (21,435 out of 21,564) of the drillhole core intervals are less than or equal to 2 meters length. Based on the analysis, the information integrated in the drillhole database was composited to 2 meters interval length taking into account the lithological and mineralisation types. The number of composites computed were 12,476 and this subset of source of information was used in the subsequent stages of the spatial estimation process. Other statistic computed was that 95.12 % (235 out of 247) of the drillholes composited with an interval length equal to 2 meters and gold grade greater than or equal to 0.3 g/t, intercepted the economic mineralisation. 25 P a g e

This information is also supporting the hypothesis that the gold, copper and silver mineralisation is widely spread and disseminated along and below the geological contact between the andesitic and dacitic lavas and volcaniclastic tuffs and dacitic quartz porphyry. 4.2 Statistical Analysis The bulk density measurement of the mineralisation were based on the water immersion method and they were done during the GDDD's and GDRD's exploration drilling campaigns, which are described in the report of SRK Consulting Incorporated (SRK, 2007). The descriptive statistics of the bulk density measurements are shown in Table 4.2 and the box and whisker diagram is displayed in Figure 4.2. The analysis demonstrated that there is not a significant difference between the median and the mean of the bulk density and the standard deviations and the variation coefficient are very small. Table 4.2 - Descriptive Statistics of the Bulk Density [t/m 3 ] by Lithology and Mineralisation Types Name Descriptive Statitistics Samples Minimum Quartile Maximum Range Mean First Second Third 135 1.79 2.53 2.76 2.85 3.56 1.77 2.69 Porphyry 922 1.83 2.62 2.69 2.75 3.69 1.86 2.67 Oxide 261 1.79 2.43 2.62 2.75 3.39 1.61 2.57 Sulphide 796 1.90 2.65 2.71 2.76 3.69 1.79 2.71 Total 1,057 1.79 2.62 2.70 2.76 3.69 1.90 2.67 On other hand, the descriptive statistics of the gold, copper and silver grades from the drillhole composites and based on a cut-off grade of 0.3 g/t of gold by lithology and mineralisation types is described in Table 4.3. The Table 4.4 summarises the descriptive statistics by combining lithology and mineralisation types. The results of the analysis of this information highlighted that the average gold grade of the andesitic and dacitic lavas and volcaniclastic tuffs is 0.769 g/t greater than the dacitic quartz porphyry. Additionally, that the average gold grade of the oxide mineralisation is 0.878 g/t greater than the sulphide mineralisation. The univariate statistics computed for the gold, copper and silver grades associated with the lithology and mineralisation types are graphically represented by the box and Whisker diagram in Figure 4.3. This information is demonstrating that the economic mineralisation is located up and below the geological contact between the andesitic and dacitic lavas and volcaniclastic tuffs and dacitic quartz porphyry. 26 P a g e

Bulk Density [t/m3] Drillhole Core Intervals Length [m] Updated Mineral Resources Gedabek Mineral Deposit 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 GDDD's GDRC's GDRD's SGSDD's AIMCDD's Total Figure 4.1 - Box and Whisker Diagram of the Drillhole Core Intervals Length [m] by Exploration Drilling Campaigns 3.30 3.10 2.90 2.70 2.50 2.30 2.10 1.90 Oxide Sulphide Total Figure 4.2 - Box and Whisker Diagram of the Bulk Density [t/m 3 ] by Lithology and Mineralisation Types 27 P a g e

Table 4.3 - Descriptive Statistics of the Drillhole Composites based on a Cut-Off Grade of 0.3 [g/t] of Gold by Lithology and Mineralisation Types Andesitic and Dacitic Lavas and Volcaniclastic s Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 336 0.300 0.440 0.824 2.298 46.560 46.260 2.413 4.726 1.959 Cu 336 0.004 0.029 0.110 0.239 2.991 2.987 0.204 0.316 1.547 Ag 336 0.250 2.695 7.034 17.625 195.633 195.383 14.879 22.524 1.514 Dacitic Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 2,356 0.300 0.470 0.795 1.535 46.780 46.480 1.644 2.910 1.770 Cu 2,356 0.002 0.065 0.167 0.397 6.712 6.710 0.366 0.603 1.646 Ag 2,356 0.250 3.349 6.600 14.185 200.250 200.000 13.140 20.248 1.541 Oxide Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 870 0.300 0.460 0.840 2.100 46.560 46.260 2.334 4.399 1.885 Cu 870 0.003 0.044 0.127 0.255 3.971 3.969 0.233 0.365 1.568 Ag 870 0.250 3.500 8.035 19.300 200.250 200.000 17.530 27.485 1.568 Sulphide Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 1,822 0.300 0.470 0.780 1.450 46.780 46.480 1.456 2.382 1.636 Cu 1,822 0.002 0.070 0.184 0.439 6.712 6.710 0.400 0.648 1.620 Ag 1,822 0.250 3.250 6.075 12.475 160.800 160.550 11.364 15.849 1.395 Lithology and Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 2,692 0.300 0.465 0.800 1.611 46.780 46.480 1.740 3.203 1.841 Cu 2,692 0.002 0.060 0.161 0.379 6.712 6.710 0.346 0.578 1.669 Ag 2,692 0.250 3.293 6.600 14.404 200.250 200.000 13.357 20.554 1.539 28 P a g e

Table 4.4 - Descriptive Statistics of the Drillhole Composites based on a Cut-Off Grade of 0.3 [g/t] of Gold by Combining Lithology and Mineralisation Types Andesitic and Dacitic Lavas and Volcaniclastic s Oxide Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 310 0.300 0.441 0.843 2.391 46.560 46.260 2.503 4.887 1.953 Cu 310 0.004 0.028 0.103 0.226 2.991 2.987 0.197 0.312 1.581 Ag 310 0.250 2.600 6.858 17.711 195.633 195.383 15.003 22.968 1.531 Sulphide Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 26 0.320 0.396 0.668 1.183 6.861 6.541 1.337 1.610 1.204 Cu 26 0.016 0.091 0.186 0.293 1.671 1.656 0.286 0.350 1.224 Ag 26 0.250 4.135 8.352 11.800 73.403 73.153 13.400 16.258 1.213 Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 336 0.300 0.440 0.824 2.298 46.560 46.260 2.413 4.726 1.959 Cu 336 0.004 0.029 0.110 0.239 2.991 2.987 0.204 0.316 1.547 Ag 336 0.250 2.695 7.034 17.625 195.633 195.383 14.879 22.524 1.514 Dacitic Oxide Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 560 0.300 0.470 0.837 1.969 44.705 44.405 2.241 4.101 1.830 Cu 560 0.003 0.056 0.139 0.274 3.971 3.969 0.252 0.390 1.545 Ag 560 0.250 3.900 9.030 19.663 200.250 200.000 18.929 29.598 1.564 Sulphide Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 1,796 0.300 0.472 0.782 1.450 46.780 46.480 1.457 2.391 1.641 Cu 1,796 0.002 0.070 0.184 0.442 6.712 6.710 0.402 0.651 1.621 Ag 1,796 0.250 3.249 6.050 12.514 160.800 160.550 11.335 15.841 1.398 Mineralisation Element Composites Minimum Quartile Maximum Range Mean Standard Variation First Second Third Deviation Coefficient Au 2,356 0.300 0.470 0.795 1.535 46.780 46.480 1.644 2.910 1.770 Cu 2,356 0.002 0.065 0.167 0.397 6.712 6.710 0.366 0.603 1.646 Ag 2,356 0.250 3.349 6.600 14.185 200.250 200.000 13.140 20.248 1.541 29 P a g e

Ag [g/t] Cu [%] Au [g/t] Updated Mineral Resources Gedabek Mineral Deposit 6.00 5.00 4.00 3.00 2.00 1.00 0.00 1.00 Oxide Sulphide Total 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0.00 45.0 Oxide Sulphide Total 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Oxide Sulphide Total Figure 4.3 - Box and Whisker Diagram of the Gold [g/t], Copper [%] and Silver [g/t] Grades of the Drillhole Composites by Lithology and Mineralisation Types 30 P a g e

4.3 Geostatistical Analysis The geostatistical analysis consisted in searching the spatial correlation of the bulk density and grades of the mineralisation within the Gedabek Mineral Deposit taking into account the information of the drillhole composites. Directional experimental variograms of the bulk density, gold, copper and silver were computed and modelled for each lithology and mineralisation types and constrained by the structural domains described in the Mineral Deposit Section. The spatial correlation analysis of the bulk density based on the directional experimental variograms indicated that a pure nugget effect was identified in the horizontal plane. This plane was defined by taking into consideration the trend of the geological contact of the andesitic and dacitic lavas and volcaniclastic tuffs and dacitic quartz porphyry in each structural domain. An experimental spherical model in the vertical direction was identified, modelled and fitted in each structural domain. However, the parameters determined of the spherical model in the vertical direction were not enough to be considered in the estimation process. In the case of the spatial correlation analysis of the gold, copper and silver grades of the mineralisation, directional experimental variograms were also constrained by isolated or combined structural domains, lithology and mineralisation types. In addition, by considering the trend of the geological and mineralisation contacts. This spatial analysis demonstrated that the structural domain 1 and 2 can be merged together and that the structural domain 3 must be estimated alone. The parameters defined for the variograms models of the gold, copper and silver grades identified, modelled and fitted are described in the Table 4.5. Table 4.5 - Parameters of the Variograms Modelled by Structural Domain Parameters Element Element Au Cu Ag Au Cu Ag Structural Domain 1 and 2 Structural Domain 3 Variogram Model Spherical Spherical Spherical Spherical Spherical Spherical First Angle 0 0 0 0 0 0 Second Angle -10-10 -10-15 -15-15 Third Angle 0 0 0 0 0 0 First Axis Z Z Z Z Z Z Z Second Axis X X X X X X Third Angle Y Y Y Y Y Y Nugget Effect 1.750 0.045 150.000 1.750 0.045 150.000 Range in X Direction 50 50 70 50 50 70 Range in Y Direction 50 50 70 50 50 70 Range in Z Direction 10 20 6 10 20 6 Sill 4.600 0.150 245.000 4.600 0.150 245.000 31 P a g e

4.4 Geological Database The geological database of the Gedabek Mineral Deposit was constituted by a three dimensional block model without axis rotation. The block model consists of 4,950,724 blocks and sub-blocks, which were constrained by the original surface topography and the open pit surface topography dated on December 30th, 2011. The limits of the block model and the block size defined were: Model Limits Minimum East coordinate equal to 566,200 meters Maximum East coordinate equal to 568,800 meters Minimum North coordinate equal to 4,491,400 meters Maximum North coordinate equal to 4,493,600 meters Minimum Elevation equal to 1,200 meters Maximum Elevation equal to 1,900 meters Block Size X direction equal to 10 meters Y direction equal to 10 meters Z direction equal to 2.5 meters 4.5 Interpolation The ordinary kriging geostatistical algorithm was considered for the spatial interpolation of the gold, copper and silver grades of the mineralisation within the Gedabek Mineral Deposit. The interpolation was based on the style and type of the mineralisation and constrained by the trend of the geological contact between the andesitic and dacitic lavas and volcaniclastic tuffs and dacitic quartz porphyry. In addition, the estimation was controlled for the combined structural domains 1 and 3 and the isolated structural domain 3 as commented in the Geostatistical Analysis Section. A sensitivity analysis of the interpolation parameters was carried out during this estimation process to assess the impact of them in the spatial interpolation. A geological database constituted by the block model was generated with the following type of information: Lithology and mineralization codes Bulk density (t/m 3 ) Gold (g/t), copper (%) and silver (g/t) grades Gold, copper and silver search volume codes 32 P a g e

In the case of the spatial distribution of the bulk density within the mineralisation, a constant value of 2.69 (t/m 3 ) for the andesitic and dacitic lavas and volcaniclastic tuffs and 2.67 (t/m 3 ) dacitic quartz porphyry were applied. It was due to a that this attribute was not interpolated because the lack of additional information of it. 4.6 Validation An extensive validation process of the gold, copper and silver grades spatially estimated and integrated in the geological database was done by applying univariate and bivariate statistical analysis. Additionally, a visualisation process was also carried out, which consisted in reviewing in two and three dimension views and comparing the gold, copper and silver grades between the drillhole composites and blocks. The descriptive statistics of the Table 4.6 is demonstrating that the information integrated in the geological database is acceptable for the estimation of the updated mineral resources of the Gedabek Mineral Deposit. Table 4.6 - Descriptive Statistics of the Drillhole Composites and Blocks based on a Cut-Off Grade of 0.3 [g/t] of Gold Descriptive Statistics Element Composites Minimum Quartile Maximum Range Mean Blocks First Second Third Au-DDBC 3,186 0.300 0.466 0.825 1.660 64.480 64.180 1.882 Au-GDB 3,186 0.102 0.459 0.840 1.646 25.704 25.601 1.555 Cu-DDBC 3,186 0.002 0.060 0.163 0.369 5.591 5.589 0.335 Cu-GDB 3,186 0.003 0.078 0.169 0.368 2.934 2.930 0.289 Ag-DDBC 3,186 0.250 3.700 6.721 14.683 200.250 200.000 13.544 Ag-GDB 3,186 0.250 3.611 7.437 14.367 127.242 126.992 11.185 DDBC - Drillhole Database Composited GDB - Geological Database 33 P a g e

Section 5 Mineral Resources The updated mineral resources of the Gedabek Mineral Deposit were spatially estimated by applying the ordinary kriging geostatistical algorithm. Additionally, by accessing the information of the up to date, integrated and validated drillhole database. The spatial estimation of the gold, copper and silver mineralisation was also based on the development of an ordered sequence of stages described in the previous Estimation Section. The classification of these updated mineral resources of the Gedabek Mineral Deposit was in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The Joint Ore Reserves Committee, 2004). This section reports the classification of the updated mineral resources of the gold, copper and silver mineralisation in the oxide, sulphide and combined zones. These updated mineral resources were constrained by the original surface topography and the open pit surface topography dated on December 30th, 2011. 5.1 Mineral Resources Classification Criteria The mineral resources were classified by applying different criteria and essentially by taking into consideration the estimation attributes computed during the ordinary kriging geostatistical interpolation process. These estimation attributes were constrained based on the defined anisotropic range of the spatial correlation of the gold grades within the mineral deposit. This anisotropic range of the spatial correlation was defined in the geostatistical analysis of the estimation process. The criteria applied in the classification of the updated mineral resources were also taking into consideration the sufficient experience and knowledge of the Competent Person relevant to the style of mineralisation and type of the Gedabek Mineral Deposit. These classification criteria of the updated measured, indicated and inferred mineral resources are described in the following sections. 5.1.1 Measured Mineral Resources The measured mineral resources were classified specifically by taking into account the next criteria: Anisotropic distance between the center of blocks and center of drillhole composite sample X direction less than or equal to 50 meters 34 P a g e

Y direction less than or equal to 50 meters Z direction less than or equal to 10 meters Number of drillhole composite samples Minimum equal to 6 Maximum equal to 12 Number of octant Minimum equal to 1 Number of drillhole composite samples per octant Minimum equal to 1 Maximum equal to 2 Number of drillhole composite samples per drillhole Maximum equal to 2 5.1.2 Indicated Mineral Resources The indicated mineral resources were classified based on the next criteria: Anisotropic distance between the center of blocks and center of drillhole composite sample X direction less than or equal to 100 meters Y direction less than or equal to 100 meters Z direction less than or equal to 20 meters Number of drillhole composite samples Minimum equal to 4 Maximum equal to 12 Number of octant Minimum equal to 1 Number of drillhole composite samples per octant Minimum equal to 1 Maximum equal to 2 Number of drillhole composite samples per drillhole Maximum equal to 2 5.1.3 Inferred Mineral Resources The inferred mineral resources were classified according to the next criteria: Anisotropic distance between the center of blocks and center of drillhole composite sample X direction less than or equal to 150 meters Y direction less than or equal to 150 meters Z direction less than or equal to 30 meters Number of drillhole composite samples 35 P a g e

Minimum equal to 2 Maximum equal to 12 Number of octant Minimum equal to 1 Number of drillhole composite samples per octant Minimum equal to 1 Maximum equal to 2 Number of drillhole composite samples per drillhole Maximum equal to 2 The Figures 5.1 and 5.2 are respectively the plan perspective view and cross sections of the classification criteria applied in the estimation of the updated measured, indicated and inferred mineral resources of the Gedabek Mineral Deposit. 5.2 Mineral Resources of the Oxide Mineralisation The updated measured, indicated and inferred mineral resources specifically of the oxide mineralisation is described in Table 5.4. This table also describes the quantity (tonnage), quality (average grades) and metal content (ounces and tonnage) for different cut-off of gold grades. The purpose of this table consists in providing a much better understanding of the sensitivity of the mineral resources in the oxide mineralisation. The Table 5.1 summarises the classification of the mineral resources of the oxide mineralisation based on a cut-off grade of 0.3 g/t of gold. This table was created for comparison purposes with the previous mineral resources estimations done by SRK Consulting Incorporated (SRK, 2007) and SGS Canada Incorporated (SGS, 2010). Table 5.1 - Mineral Resources of the Oxide Mineralisation based on a Cut-Off Grade of 0.3 [g/t] of Gold Classification Tonnage Grades Products Au Cu Ag Au Cu Ag t g/t % g/t Oz t Oz Measured 6,561,562 1.051 0.184 8.957 221,718 12,073 1,889,561 Indicated 6,877,499 0.851 0.241 8.139 188,170 16,575 1,799,669 Measured and Indicated 13,439,060 0.949 0.213 8.538 409,888 28,648 3,689,230 Inferred 4,666,845 0.842 0.209 8.326 126,336 9,754 1,249,254 5.3 Mineral Resources of the Sulphide Mineralisation The quantity (tonnage), quality (average grades) and metal content (ounces and tonnage) of the classified mineral resources of the sulphide mineralisation based on different cut-off of gold grades are shown in Table 5.5. 36 P a g e

Figure 5.1 - Plan Perspective View of the Updated Measured [red colour area], Indicated [orange colour area] and Inferred [yellow colour area] Mineral Resources of the Gedabek Mineral Deposit 567,250 East 4,492,450 North 4,492,125 North Figure 5.2 - Cross Sections of the Updated Measured [red colour area], Indicated [orange colour area] and Inferred [yellow colour area] Mineral Resources of the Gedabek Mineral Deposit 37 P a g e