Makabingui Gold Project

The Makabingui Gold Operation in Senegal is the Company's most advanced project. We completed an independent feasibility study in 2014 and undertook a further feasibility study in 2017.

The feasibility study returned outstanding results, the most notable being an average gold grade of 5.6 g/t (up to 7.9 g/t), CI cash costs of $US678 per oz. capital costs of $US12 million and IRR of 189% (see table).

Makabingui currently hosts a Mineral Resource which comprises 11.9 million tonnes averaging 2.6 g/t gold for a contained 1 million ounces of gold. We recently announced a maiden ore reserve of 158,000 ounces in 860,000 tonnes at 5.7g/t gold, while an underground scoping study completed in September 2014 returned high-grade gold results of 7g/t gold for ~120,000 ounces in high-grade underground scope targets.

The Company has commenced pre-construction at Makabingui and announced strategic alliances for the supply of processing equipment and development.

An Environmental & Social Impact Study for the project was completed and approved.

We have been able to keep capital costs low at Makabingui through the use of existing infrastructure and equipment in Senegal, all owned by Bassari. We have an existing gravity plant which will be upgraded to treat hard rock ore from Makabingui, a water dam to supply water to the processing plant, an established camp to accommodate employees and mobile equipment which will be used during the construction period as well as supporting operations.

Operations will commence mining high grade open pits where mineralization starts at surface. The high grade ore will be trucked to the processing plant which is capable of extracting gold from both gravity and CIL processes. We are confident in the high metallurgical recoveries of 95%, due to the comprehensive metallurgical program undertaken from an early stage in the resource drilling program.