Ann: Robust Phase 2 Scoping Study for the Estelle Gold Project, page-69

Hi there
Page 55 of the announcement as well as Chris's comments on the sensitivity analysis in the video outline the reasons for using the USD$1,800 POG. The sensitivity analysis also shows the NPV if we used $1,750 POG which was the POG used in the phase 1 scoping study for comparatives.

Regarding the 5% discount rate. We actually did quite a lot of research on what discount rate to use, not simply picked a rate to maximise the NPV. The sensitivity analysis also shows the sensitivity of the NPV to discount rate.
The reason for selecting a discount rate of 5% was primarily the 11 month payback period as the NPV discount rate takes into account the cost of capital, opportunity cost and risk tolerance. In addition, our extensive research included looking at many North American economic studies which have been released in 2023 (see the links below for an example of some), the results of which showed that most North American studies this year were in fact using 5% as a discount rate and with the Estelle Gold Project being an Alaskan asset it made sense to use the same rate that the North American companies were using.

Further we believe that the rising intertest rate cycle has moved quickly and is now starting to slow after the rates were lifted last year at a pace not seen since the last time inflation soared this much 40 years ago. The US Federal reserve quoted as such with Fed Chair Jerome Powell saying “We may not be far off,” at the May meeting press conference, referring to the Fed’s peak interest rate. “We’re possibly even at that level.“

Below is a list of links to some of the 2023 economic studies which our research showed used a discount rate of 5%

https://www.researchfrc.com/cartier-resources-inc-tsxv-ecr-delivers-a-robust-pea/
https://rupertresources.com/rupert-resources-files-ni-43-101-preliminary-economic-assessment-report-for-ikkari-and-provides-outlook-for-2023/
https://www.theglobeandmail.com/investing/markets/stocks/VLI-X/pressreleases/14391353/vision-lithium-pea-on-sirmac-boasts-a-pre-tax-839-irr-c183m-pre-tax-npv5-and-less-than-one-year-payback/
https://stratabound.com/stratabound-announces-positive-pea-for-fremont-gold-project-11-year-mine-life-with-average-annual-production-of-118000-gold-ounces-at-an-aisc-of-us1082-oz-and-an-after-tax-npv5-of-us210m/
https://meridianmining.co/wp-content/uploads/2023/03/MNO230306.pdf
https://discoverysilver.com/news/discovery-reports-preliminary-feasibility-study-on-cordero-with-after-tax-npv-of-us-1.2-billion-and-28-irr/
https://www.globexmining.com/staging/admin/news_pdfs/2023-04-13%20Cartier%20Resources.pdf
https://stockhouse.com/news/press-releases/2023/01/24/discovery-reports-preliminary-feasibility-study-on-cordero-with-after-tax-npv-of
https://www.osiskomining.com/2023/01/
https://www.heliostarmetals.com/news-articles/heliostar-files-updated-pre-feasibility-study-to-support-ana-paula-acquisition
https://www.bloomberg.com/press-releases/2023-02-22/galiano-gold-announces-an-improved-long-term-outlook-at-the-asanko-gold-mine
https://visionlithium.com/vision-lithium-pea-on-sirmac-boasts-a-pre-tax-839-irr-c183m-pre-tax-npv5-and-less-than-one-year-payback/
https://www.pasofinogold.com/news/news-details/2023/Pasofino-Gold-Announces-Commencement-of-Joint-Strategic-Review-Process-with-Hummingbird-Resources-plc-for-the-Dugbe-Gold-Project-and-Pasofinos-Optimization-of-the-Feasibility-Study/default.aspx
https://editorial.glacierrig.com/2023/01/23/west-vault-announces-51-irr-pfs-update-for-hasbrouck/
https://newswire.iguana2.com/af5f4d73c1a54a33/tso.asx/6A1143836/TSO_Ternera_Gold_Deposit_Phase_1_Open_Pit_Scoping_Study