2017-2018 Exploration use of proceeds

A budget of US$300,000 was used in a multi-disciplined program, including:

• Database management.
• 3D Modelling
• Surface sample audit program
• Structural mapping.
• Outcrop and core alteration mapping (XRF and XRD).
• Susceptibility and physical properties modelling of core.
• Geochemistry evaluation.
• Re-logging of select drill holes.
• Regional structural and alteration studies.
• Geophysical modelling.

Near term potential to expand the current resource

Results: Mineralization follows newly identified structural controls and feeders whose strike and depth potential remain unexplored. There is potential to add ounces by drilling along strike and dip.

An untested high-grade potential that follows high angle structures, and includes feeder zone potential, may have been underestimated by previous dominantly vertical delineation drill programs. An angled drill program or a bulk sample has potential to show improved overall grade by including more of these observe vertical controls.

Project scale new discovery potential

The recognition of two mineralizing events and a previously unknown high sulphidation exploration potential has led to the recognition of several paths to new discovery that remains untested to date.

• • Relates to lower grades (Au≥ 0.06 – to 1.0 g/t).
  • Gold correlates with (Cu,Mo,Ag)(S)(Fe,Co).
  • The bulk of the Tepal resource relates to this even

Epithermal related mineralization

• Relates to higher grades (Au > 1.0 g/tto 4.1 g/t).

• Gold correlates with (Ag,Pb,Sb)(As).This event remains untested and opens up an exciting new exploration potential

The discovery of important exploration indicators in outcrop.

• Vuggy silica, high temperature clays (pyrophyllite, dickite), possible sinter and native sulphur in outcrop and in core.

An important new exploration model

The 2017-18 exploration program resulted in the discovery of an untested and mineralized epithermal system with a high grade discovery potential based on results to date, this includes the possibility that a preserved high sulphidation mineralization underlies the project area. This has the potential to become a game changer for the project because of its untested high-grade new discovery potential.This will be tested with additional exploration and drilling.

2019 Exploration Plans

• Alteration and structural mapping
• Drill permitting and drilling