Ann: Quarterly Activities Report - June 2018, page-33

So this is APPROXIMATELY:

• 8m in height x 15m wide x 2.7 sg = 324 tonnes per meter down-dip.
• At 100m down-dip this approximates 32,400 tonnes.
• At 12 g/t (including dilution) = 388,800 grammes.
• 12,500 Ounces = $20 Million per 100m.

(...feel free to suggest corrections)

This is only from the intermediate zone, not the Mestre zone or the higher grade part of the Cascavel zone.

I think the evidence suggests that it will extend down dip further.

The quarterly is disappointing in production and I think we need to look carefully at the reasons. I suspect the mill performance is still not fully understood and that's understandable when the ore has changed from coarse to coarse plus very fine.

In addition to cyanide treatment of some sort CIL, CIP, ILR, further investigation is needed to ensure we are getting the maximum GRG possible (Gravity Recoverable Gold) to keep cyanide costs low even whenever we are able to implement this.

Still a number of exploration areas that provide me with future optimism.

Not too good today as expected, but things will look different in a few weeks I think.

Cheers,

SJB