Global Geoscience

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NEWS RELEASE 7 May, 2014 ASX Code: GSC

NEW DRILLING RESULTS EXPAND OXIDE GOLD MINERALISATION AT GLOBAL’S 100% OWNED TOKOP PROJECT IN NEVADA, USA

Global Geoscience Ltd ABN 76 098 564 606

ASX Code: GSC

Current share price: $0.032

52 week range: $0.02-$0.06

Issued Shares: 216M

Directors Holdings: 14%

Top 20 Holdings: 46%

Market Cap: $7M

Key Projects Tokop Au-Ag (100%, Nevada)

Towers Mt, Cu-Mo (100%, Arizona)

Excelsior Au-Ag (earning 70%, Nevada)

Lone Mt Au, Ag-Pb-Zn (option for 100%, Nevada)

Sara Sara Cu-Mo-Ag (100%, Peru)

Mancha Pampa Cu-Au (100%, Peru)

Board of Directors Robert Reynolds Non-Executive Chairman

Bernard Rowe Managing Director

Peter Nicholson Executive Director

Patrick Elliott Non-Executive Director

Registered Office Suite 203, 161 Walker Street North Sydney NSW 2060 AUSTRALIA T: +61 2 9922 5800

Contact Bernard Rowe T: +61 4 1944 7280 browe@globalgeo.com.au

HIGHLIGHTS • New results now available from recent drilling confirm and

expand extensive oxide gold-silver mineralisation at Global’s 100% owned Tokop Gold Project in Nevada, USA.

• Multiple, wide zones of oxide gold-silver mineralisation intersected in recent 13-hole drill program including: 13.8m at 0.94g/t Au, 7g/t Ag from 193.5m 9.1m at 0.02g/t Au, 138g/t Ag from 126.5m 35.0m at 0.40g/t Au, 5.2 g/t Ag from 12.2m 36.6m at 0.38g/t Au, 3.5g/t Ag from 0m 25.9m at 0.31g/t Au, 13g/t Ag from 36.6m 19.8m at 0.32g/t Au, 5.1 g/t Ag from 19.8m

• Latest results are consistent with previously reported drill and surface trench oxide intersections including: 12.2m at 2.5g/t Au, 10g/t Ag 30.5m at 0.72g/t Au, 11g/t Ag 10m at 1.0g/t Au, 17g/t Ag 18m at 1.9g/t Au, 9g/t Ag 44m at 0.41g/t Au, 6g/t Ag

• Preliminary metallurgical test work will be undertaken to confirm that the Tokop mineralisation is leachable.

• In Nevada there are a number of large, oxide gold-silver deposits where low-cost heap leach methods allow for mining of ore grading around 0.4g/t Au.

• The Exploration Target at Tokop is 50 to 100 million tonnes oxide material grading 0.4 to 0.8g/t Au and 5 to 10g/t Ag. The potential quantity and grade of this Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.

• Only 20 holes completed to date over an area of 0.5 sq km within a mineralised zone extending over at least 2.5 sq km.

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New drill results announced today by Australian exploration company, Global Geoscience Ltd (“Global”) (ASX: GSC), include the intersection of multiple zones of shallow, oxide gold mineralisation further highlighting the potential of its 100% owned Tokop Gold Project in Nevada, USA.

This second Tokop drilling program - following a maiden drilling program completed in August last year - consisted of 13 Reverse Circulation (RC) holes totalling 2,774m. Most holes intersected oxidised gold mineralisation within 150m of the surface.

“The results of the first 20, wide-spaced drill holes confirm the potential for Tokop to host a large tonnage, shallow, oxide gold deposit,” Global Geoscience Managing Director, Mr Bernard Rowe, said today.

“The next step for us is to confirm that the Tokop mineralisation is amenable to heap leach processing,” he said.

Tokop Gold Project The Tokop gold project is located 330 km southeast of Reno and 80 km south of Tonopah in southern Nevada, USA. The main highway between Reno and Las Vegas (Hwy 95) lies 15km to the east. Global owns 100% interest in mining claims covering 20 sq km and holds options for 100% over an additional 2 sq km.

Gold mineralisation occurs within and adjacent to a multi-phase Jurassic granite intrusion. Gold is associated with sheeted quartz veining and is associated with quartz-feldspar-sericite alteration.

Exploration results indicate the presence of a large mineralised system.

Figure 1. Location Map

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Figure 2. Tokop Geology and Exploration Results. All intersection widths shown are calculated horizontal widths. Actual and true widths are shown in Table 1. Map Datum: UTM Zone 11 NAD27.

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Figure 3. Detail of Tokop Exploration Results. Legend as for Figure 2. All intersection widths shown are calculated horizontal widths. Actual and true widths are shown in Table 1. Map Datum: UTM Zone 11 NAD27.

Drilling Program A second program of RC drilling with a Foremost 1500 track mounted rig using a cross over sub was undertaken in April 2014. Thirteen holes (TKH0008 to TKH0020) were completed totalling 2,774m in depth. The co-ordinates, dip, azimuth and total depth of the holes are shown in Table 2. Each hole was sampled over its total length on 5 foot (1.5m) intervals. Samples were split to a total weight of 1 to 20kg per interval using a cyclone and rotary splitter. Duplicate samples were collected every 20 samples. All of these samples were analysed at American Assay Laboratories laboratory in Reno, Nevada using the Au-FA60 and ICP-2A methods. Replicate samples were collected about every 30 samples and analysed by ALS in Reno, Nevada using methods Au-AA26 and ME-MS41. Drilling intersections were calculated using either 0.1 g/t Au or 8g/t Ag cut-off grades. Significant intersections from this second drilling program, the initial program, trenching and continuous channel sampling are listed in Table 1 with all values in ppm (or g/t).

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Hole/ Trench/Channel

From (m)

Width

(m)

True Width

(m)

Au (g/t)

Ag

(g/t) TKH0001 94.5 21.3 2.0 0.63 0.2

163.1 4.5 0.3 0.56 0.8 230.1 30.5 3.0 0.72 10.5

TKH0002 10.7 6.1 0.5 0.42 1.0 TKH0003 59.4 12.2 1.5 2.54 9.9 TKH0004 29.0 35.7 6.1 0.20 1.8

102.1 6.1 1.1 0.10 14.1 TKH0005 80.8 18.3 1.0 1.25 4.8 TKH0008 12.2 9.1 4.6 0.18 0.2

74.7 4.5 2.3 0.98 5.6 224.0 1.6 0.8 1.1 1.2

TKH0009 0.0 36.6 19.0 0.38 3.5 61.0 12.2 5.4 0.16 0.8 99.1 22.8 9.9 0.27 15.0

TKH0010 57.9 19.8 11.0 0.15 1.0 125.0 10.6 6.0 0.12 2.5

TKH0011 131.1 27.4 9.7 0.14 1.6 19.5 13.8 4.9 0.94 7.3

TKH0012 45.7 27.5 9.8 0.20 0.1 112.8 15.2 5.4 0.22 5.5

TKH0013 210.3 3.1 1.4 0.10 0.3 TKH0014 0.0 9.1 3.2 0.13 1.5

30.5 10.6 3.5 0.14 2.2 85.3 3.1 1.1 0.35 2.3 163.1 7.6 2.6 0.42 0.6

TKH0015 36.6 25.9 12.9 0.31 12.8 150.9 6.1 3.1 0.18 5.5

TKH0016 12.2 35.0 12.4 0.40 5.2 TKH0017 0.0 25.9 12.9 0.12 3.8

132.6 7.6 3.8 0.17 3.0 196.6 4.6 2.3 0.81 0.9

TKH0018 19.8 19.8 9.8 0.32 5.1 126.5 9.1 4.5 0.02 138.4

TKH0019 35.1 4.5 2.0 0.15 9.9 TKH0020 35.1 6.1 3.0 0.45 1.4 TR0001 154.0 8.0 8.0 0.33 1.7 TR0002 48.0 1.0 0.5 2.37 145 TR0004 38.0 18.0 16.9 0.18 4.7

94.0 44.0 41.4 0.41 5.8 CH0001 0.0 10.0 7.7 1.00 17.3 CH0002 0.0 33.0 32.9 0.29 14.1 CH0003 0.0 18.0 16.0 1.94 8.8 CH0004 0.0 6.0 6.0 2.73 19.4 CH0005 0.0 9.0 7.8 2.14 9.0 CH0006 0.0 3.0 3.0 9.56 12.6

Table 1. Tokop significant drill, trench and channel intersections. A 3.1m void from an old working in TKH0018 was assigned the grade of the adjacent mineralised interval. (TKH=drill hole, TR=trench and CH=channel) Mineralisation orientations and true widths have been estimated using measurements from adjacent vein outcrops.

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Geology The oldest rocks in the area are limestone units of probable Proterozoic and Cambrian age.

The limestone units are intruded by a composite intrusion of probable Jurassic age. Limestone is altered to skarn within about 100m of intrusive bodies. Drilling indicates that over much of the area of the surface geochemical anomaly, limestone will only be 50 to 100m thick before passing down into intrusive rocks.

The most voluminous phase of the intrusive is coarse grained granite. Mineralogy consists of quartz, K-feldspar, plagioclase and biotite in even grained intergrowths with 5 to 20mm diameter grains.

A second intrusive phase is granite porphyry. It has similar mineralogy to the coarse granite but in finer grained intergrowths with approximately 2mm diameter grains. K-feldspar megacrysts occur up to 5cm long occur within the finer grained matrix.

Quartz-feldspar-sericite (QFS) rock occurs within the granite porphyry. This rock is even grained with intergrowths of 0.5 to 2mm grains. Below oxidation, 1 to 3% sulphide occurs in veins and disseminations. The rock is gradational to unaltered granite porphyry with the gradual appearance of K feldspar megacrysts and biotite grains. QFS is probably formed by intense hydrothermal alteration.

Diorite occurs in relatively unaltered sills and dykes up to at least 4m in thickness. The diorite contains plagioclase, hornblende, biotite and magnetite.

Mineralisation is associated with sets of sheeted veins which occur within and adjacent to the QFS. The sheeted veins occur over thickness of up to at least 50m. Individual veins are 0.1 to 2m in thickness and comprise 2 to 70% of mineralised intersections. Most veins occur in one of three sets with the following general orientations;

1. Strike 120, dip 80 to NE 2. Strike 095, dip 80 to N 3. Strike 040, dip 80 to NW

Gold mineralisation is accompanied by anomalous concentrations of Ag, As, Bi, Cu, Hg, Mo, Pb, Sb, Te, W and Zn. Some W-rich intersections have markedly lower Ag, Pb and Zn concentrations.

The mineralisation at Tokop shares a number of similarities with the Fort Knox gold deposit (9Moz) in Alaska. Fort Knox is an active gold mine operated by Kinross Gold Corporation. Current Indicated Resource at Fort Knox is 261Mt 0.48g/t Au and Kinross has quoted production costs of $566 per ounce in a recent quarterly report.

Although mineralisation appears to be preferentially hosted by the granite porphyry, coarse granite and limestone are also mineralised. Where sheeted vein sets pass from granite porphyry into limestone, surface geochemical anomalies become more subdued. The large areas within the surface geochemical anomaly where limestone outcrops are likely to be underlain by intrusive that is altered and mineralised to greater or lesser extent.

Weathering has generally oxidised rocks to 200m depth.

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Heap Leach Gold Operations There are a number of active Heap Leach Gold operations and pre-production projects in Nevada. These include Midway Gold Corporation’s (TSX: MDW, market cap C$126M) Pan project and Corvus Gold Corporation’s (TSX: KOR, market cap C$100M) North Bullfrog project. Project Indicated Resource

(heap leach) Cut-Off Grade

Capital Cost (US$M)

Cash Cost (US$/oz)

All In Cost (US$/oz)

Pan 80Mt at 0.44g/t Au 0.14g/t 99 585 824 Nth Bullfrog 26Mt at 0.29g/t Au 0.13g/t 170 815 1048 Heap Leach Gold operations produce gold after heaping crushed or uncrushed ore onto pads with impermeable bases. Gold-leaching solutions are sprinkled over the pad and collected after they have percolated through the heaped ore. Gold and silver is then extracted from the pregnant solution. These operations have relatively low operating and capital costs, and can profitably treat low grade ore. Attributes of these operations are listed above. In addition to defining sufficient tonnes and grade of mineralisation for a mining operation, it will be necessary to determine if the characteristics of mineralisation at Tokop are amenable for heap leach treatment.

Potential Based on thickness, grade and distribution of mineralisation discovered to date, the Exploration Target at Tokop is 50 to 100 million tonnes grading 0.4 to 0.8g/t Au and 5 to 10g/t Ag. Thicker and/or higher grade zones may exist which would increase the size of this target. The potential quantity and grade of this target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource. The Tokop mineralisation is associated with a 2.5 square kilometre soil-rock Au-Ag-As-Bi-Cu-Hg-Mo-Pb-Sb-Te-W-Zn anomaly. Within this anomaly and the adjacent area drilling (20 holes totalling 4,193m in length), trenching (6 trenches totalling 684m in length), rock chips (526 including channels sample of outcrops and within trenches) and soil sampling (752 samples) have evaluated the mineralisation. The data is of sufficient density in about 40 percent of this area to allow the interpretation of mineralised zones totalling about 8,000m in strike length (Figures 2 and 3). Some of these interpreted mineralised zones contain some internal waste. Within this restricted area target mineralisation may have the following dimensions and density, which would total 45 million tonnes;

• Total strike length of 4,500m with sufficient grade and thickness • Average thickness of 25m • Vertical extent of oxidized mineralization of 150m • Density of 2.65

Oxidation generally persists to at least 200m depth, however, a more conservative number of 150m has been used for the average vertical extent of mineralisation. This is to account for where mineralisation doesn’t extend all the way to the surface and for where strip ratios may preclude mining to depths of 200m. The remainder of the area beneath the surface geochemical anomaly could contain a similar or slightly larger tonnage. The tonnage of the Exploration Target is therefore 50 to 100 million tonnes.

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The average weighted grade of the true thickness of all known intersections in Table 1 is 0.59g/t Au and 8.6g/t Ag. The grade of the Exploration Target is assumed to be within a range around these grades, or 0.4 to 0.8g/t Au and 5 to 10g/t Ag. Future Work Further drilling will aim to extend the known mineralised zones and explore for additional zones. This work is planned to be undertaken in the June or September quarters. The aim will be to define a Mineral Resource, although there is no certainty that this can be achieved.

Preliminary metallurgical test work will be undertaken as the first step in determining if the mineralisation is amenable to heap leach processing.

About Global Geoscience Global Geoscience is a Sydney-based mineral exploration company specialising in project generation, greenfield exploration and mineral discovery. The Company’s main focus is for gold, copper and silver on its mostly 100%-owned projects in Nevada and Arizona in the United States, and Peru in South America. Global has an exploration alliance with Antofagasta plc, one of the world’s largest copper producers, for copper in Arizona.

Global’s project generation activities involve the use of an in-house structural targeting method, which is used to identify areas that are considered by the Company to have a greater probability of hosting certain types of mineral deposits. The process makes use of readily available geoscientific data and is an efficient and low-cost targeting method. Targets are defined as areas of 200 sq km or less. The targets require ground investigation, including geochemical surveys and reconnaissance geological mapping, to ascertain their potential and likelihood to host mineral deposits. All of Global’s current projects have been identified in this way.

References Global Geoscience Ltd company announcements:

Date Title 31/03/2014 Global commences drill program at Tokop gold project in Nevada, USA 16/09/2013 Greenfield gold discovery in Nevada

Bakke, A., Morrell, R.P. & Odden, J.C., 1998. The Fort Knox porphyry gold deposit, east-central Alaska: An overview and update. In Porphyry and Hydrothermal Copper and Gold Deposits, Conference Proceedings, Perth, Western Australia, 1998. 89-98.

Corvus Gold Corporation, 2014. North Bullfrog Project, Corvus Gold Corporation website.

Kinross Gold Corporation, 2013. Kinross reports 2013 second-quarter results. Kinross Gold Corporation news release July 31, 2013, Toronto, Ontario.

Kinross Gold Corporation, 2014. Mineral Reserve and Mineral Resource Statement 2013. Kinross Gold Corporation website.

Midway Gold Corporation, 2014. Pan Project, Midway Gold Corporation website.

Quandt, D., Ekstrom, C. & Triebel, K., 2008. Technical Report for the Fort Knox Mine. Kinross Gold Corporation and Fairbanks Gold Mining Incorporated.

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Steininger, R.C., Giroux, G., Wilson, S. and Pennstrom, W., 2012. Technical Report and Preliminary Economic Assessment for the North Bullfrog Project, Bullfrog Mining District, Nye County, Nevada. Report for Corvus Gold Corporation

MEDIA CONTACT: Bernard Rowe John Field Managing Director Field Public Relations Global Geoscience Ltd (08) 8234 9555 (02) 9922 5800 0418 819 527 04 1944 7280

The information in this report that relates to Exploration Results is based on information compiled by Peter Nicholson, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy. Peter Nicholson is employed by Nicholson Geologist Pty Ltd and acts as a consultant to the company. Peter Nicholson is Technical Director of Global Geoscience Ltd and owns shares and options in the company.

Peter Nicholson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Peter Nicholson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Hole No. East North Elevation

(m) Dip Azimuth Depth/Length

(m) Type TKH0001 476571 4127918 2134 -60 315 286.5 RC TKH0002 477144 4128529 2047 -60 135 208.8 RC TKH0003 476814 4128132 2143 -60 315 262.1 RC TKH0004 476671 4128162 2146 -60 315 240.8 RC TKH0005 476730 4128383 2109 -60 135 158.5 RC TKH0006 476734 4128386 2109 -60 315 42.7 RC TKH0007 476470 4127925 2128 -60 315 219.5 RC TKH0008 476732 4128379 2109 -60 180 225.6 RC TKH0009 476651 4128274 2155 -60 180 213.4 RC TKH0010 476674 4128156 2146 -60 180 213.4 RC TKH0011 476660 4127996 2121 -60 180 213.4 RC TKH0012 476667 4127933 2127 -60 180 207.3 RC TKH0013 476667 4128070 2129 -60 180 213.4 RC TKH0014 476489 4128122 2140 -60 180 280.4 RC TKH0015 476896 4128184 2121 -60 180 207.3 RC TKH0016 476880 4128277 2097 -60 180 213.4 RC TKH0017 477015 4128305 2068 -60 217 207.3 RC TKH0018 477142 4128421 2054 -60 190 213.4 RC TKH0019 476891 4128374 2065 -60 180 213.4 RC TKH0020 476890 4128440 2067 -60 180 152.4 RC TR0001 477200 4128725 2026 0 2 287.0 Trench TR0002 477310 4129000 2011 0 180 48.0 Trench TR0003 477300 4128630 2039 0 183 103.0 Trench TR0004 477200 4128570 2039 0 170 184.0 Trench TR0005 477310 4128790 2056 0 68 37.0 Trench TR0006 477344 4128800 2059 0 351 25.0 Trench CH0001 477402 4127692 2060 0 0 10.0 Channel CH0002 476630 4128267 2155 0 226 33.0 Channel CH0003 476626 4128200 2165 0 45 18.0 Channel CH0004 477405 4128800 2078 0 40 6.0 Channel CH0005 476652 4128255 2155 0 0 9.0 Channel CH0006 476625 4128240 2165 0 40 3.0 Channel

Table 2. List of all drill collars and trenches at Tokop. For channel samples only those with significant intercepts are included. All coordinates are in UTM Zone 11 (NAD27).

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Appendix 1 – Tokop Gold Project

JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report.

• In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Reverse circulation drilling was used to obtain 1.5m samples. Samples of 10kg (1-20kg) were collected and processed to produce a 60g charge for fire assay and ICP analysis. Water was injected during the drilling process such that all samples were collected wet. In all cases the entire hole was sampled.

• Channel samples were collected from the walls of excavated trenches and from outcrop. Samples of 5kg (3-7kg) were collected by hand using a rock hammer and chisel to cut a continuous 10cm wide horizontal channel along the wall of the trench or outcrop. Samples were collected over lengths of 2-3 metres. In all cases the entire trench was sampled.

• Industry standard methods were used for the collection, preparation and analysis of the samples.

Drilling techniques

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• All drill holes are reverse circulation using a cross-over sub.

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• All drill chip samples were weighed and weights recorded. • A company geologist was on-site for the duration of the drilling and

logged the holes as they were drilled. Notes on recovery were recorded on the logs.

• There is no observed relationship between sample recovery and grade.

Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate

• All drill chips and trenches have been geologically logged to an appropriate level of detail. No Mineral Resources estimation is being

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Criteria JORC Code explanation Commentary

Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

undertaken at this stage. • All logging of chips and trenches has been qualitative.

Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Drill chip samples were wet split using a rotary splitter attached to a cyclone. Buckets were used in conjunction with permeable samples bags to minimize loss of fines.

• Approximately 10kg (1-20kg) was collected for every 1.5m drill interval.

• Duplicate samples were collected every 20th samples and replicate samples every 30th sample.

• Rock channel samples were not split in the field and no duplicates were collected.

• Based on previous exploration in the area for this style of mineralization, the sample size is appropriate.

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• Drill chip samples were submitted to American Assay Laboratories (AAL) in Reno, Nevada for preparation and analysis. The entire sample was crushed and a 1kg sub-sample collected by riffle split for pulverizing and analysis. A 60 g charged was analysed for gold by fire assay (FA30). A suite of other elements were analysed for by ICP (ICP-2A). The methods are considered to give a total content reading. Standard, blank and duplicate samples were inserted into the sample stream. Acceptable levels of accuracy were achieved.

• Rock channel samples were submitted to ALS in Reno, Nevada for preparation and analysis. The entire sample was crushed and a 400g sub-sample split off for pulverizing and analysis. A 50 g charged was analysed for gold by fire assay (Au-AA26) and for silver by aqua regia ICP (Ag-OG46). Standard, blank and duplicate samples were inserted into the sample stream and acceptable levels of accuracy were achieved. The methods are considered to give a total content reading.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes. • Documentation of primary data, data entry procedures, data

• Significant intersections were verified by two company personnel. • Electronic data was obtained from American Assay and ALS and

matched with field data by unique sample number. • Data is stored in an electronic database.

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Criteria JORC Code explanation Commentary

verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.

• No adjustments were made to the assay data.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used. • Quality and adequacy of topographic control.

• Drill collars, trenches and rock channel samples were were located using a hand-held GPS unit with an accuracy of +/- 5 metres.

• All coordinates are shown in UTM Zone 11 (NAD27). • Drill collars were plotted on a topographic base with 5m elevation

accuracy. • Location information is considered adequate for the stage of

exploration.

Data spacing and distribution

• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the

degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Spacing of drill holes, trenches and rock channel samples is shown in Figures 2 and 3. Drill holes are generally spaced at 100-200m apart.

• The data spacing and distribution is not sufficient to allow for calculation of a Mineral Resource.

• No sample compositing was undertaken.

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• Mineralisation occurs in multiple orientations and actual orientations of drill intercepts are not known given the drilling method (RC).

• Mineralisation orientations and true widths have been estimated using measurements from adjacent vein outcrops and are shown in Table 1.

Sample security

• The measures taken to ensure sample security. • All drill chip samples were collected and bagged on site under the supervision of company personnel. American Assay Laboratories collected samples directly from the site and transported them to the laboratory in Reno.

• Rock channel samples were collected, bagged and transported to the laboratory by company personnel.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data. • No audits or reviews were undertaken and are not deemed necessary for the current stage of exploration.

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Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• 100% ownership of unpatented mining claims covering 20 sq km (TK claims) that are subject to a 2.5% net smelter return royalty.

• Option to purchase 100% ownership in patented and unpatented mining claims covering an area of 2 sq km. These are owned by third parties. Net smelter return royalties of between 2% and 4% apply to these claims. These royalties can be reduced or bought out to the extent that the maximum royalty payable would be 2%.

• There are no known impediments to exploration or mining in the area.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties. • The company is not aware of any exploration by other parties. • There is evidence of historic mining and prospecting, however, the

company is not aware of the extent and results of this work.

Geology • Deposit type, geological setting and style of mineralisation. • Intrusion related gold system (IRGS) within the Walker Lane Tectonic Zone of southern Nevada.

• Gold mineralization occurs within sheeted and stockworked quartz veins within a granitic intrusion.

• For further descriptions refer to the Geology section of the report.

Drill hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in

metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

• A summary of all material information is provided in the accompanying report. Table 1 and Table 2 within the report contain information relating to all drill holes, trenches and rock channel samples.

• No information has been excluded from these tables.

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade

• All mineralized intercepts in this report have been reported by weighted averaged using 0.1g/t Au and 8g/t Ag cut-off grades.

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Criteria JORC Code explanation Commentary

results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

• The exact geometry of the mineralisation is not known because of the drilling method (RC) and wide-spaced nature of the holes (100-200m).

• Mineralisation orientations and true widths have been estimated using measurements from adjacent vein outcrops and are shown in Table 1.

Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Maps and tables showing intercepts are included in the report.

Balanced reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Results reported are representative of all mineralized intercepts using the stated cut-off grades.

Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• All other relevant and material information has been reported in this and earlier company reports. These are referenced in the report.

Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Preliminary metallurgical test work to confirm that the mineralisation is leachable.

• Infill and extension drilling.

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