Hummingbird Regulatory News (HUM)

Tonnes (Mt)

Ounces (Au)

Grade (g/t)

Dec '15 Reserve

6.82

665,600

3.03

Updated Reserve

7.04

709,800

3.14

New Mine Schedule (US$1,100)

New Mine Schedule (US$1,250)

DFS

January 2016 (US$1,100)

LoM NPV (US$m, 8% discount rate)

109

162

88

IRR (%)

42

60

37

LoM Ore Mined (Mt)2

8.7

8.7

8.8

Strip Ratio (waste:ore)

11.9:1

11.9:1

12.1:1

LoM Grade (g/t)

2.95

2.95

2.77

LoM Contained Gold (koz)

830

830

787

Recovery (%)3

92.8

92.8

92.5

LoM Recovered Gold (koz)

770

770

727

Production Year 1 (koz)

132

132

121

LoM Production/year (koz)

107

107

102

LoM Cash Costs (US$/oz)4

620

620

645

LoM AISC (US$/oz)5

686

695

720

Project CAPEX (US$m)

79

79

79

1. Updated Mine Schedule does not include Gonka Study results, as announced on 2 February 2016.

2. The life-of-mine ("LoM") plan comprises the Komana East ("KE") and Komana West ("KW") deposits, Phase 1 , for which Ore Reserves have been reported (as announced on 15 December 2015 for the 'DFS January 2016' and updated using the Reserves released in this RNS for the 'New Mine Schedule'), as well as ore from the Guirin West ("GW"), Sanioumale East ("SE") and Sanioumale West ("SW") deposits, Phase 2 , based on pit designs and mining schedules applied to the Indicated Mineral Resources for these deposits (as announced on 15 December 2015).

3. Recovery increased from Jan DFS because of increased grade of ore.

4. Excluding royalties and sustaining capital.

5. Difference in all-in sustaining costs (AISC) for the New Mine Schedule cases reflect the royalty levels at different gold prices.

Tonnes

Contained Ounces (Au)

Grade (g/t)

Komana East

4,606,000

470,600

3.18

Komana West

2,433,000

239,200

3.06

Total

7,039,000

709,800

3.14

Net Attributable to Hummingbird (85%)5

5,983,150

603,330

3.14

Maiden Ore Reserve, 15 December 20156

6,822,000

665,600

3.03

Deposit

Category

Ore Reserves within pit designs, incl. mine recovery and mine dilution

Material Type

Classification

kt

Au (g/t)

Ounces

Komana West

Oxide

Probable

1,277

2.85

117,100

Transition

Probable

157

2.76

14,000

Fresh

Probable

998

3.37

108,200

Total

Probable

2,433

3.06

239,200

Komana East

Oxide

Probable

891

3.26

93,500

Transition

Probable

455

3.33

48,700

Fresh

Probable

3,260

3.13

328,400

Total

Probable

4,606

3.18

470,600

All Deposits

Oxide

Probable

2,168

3.02

210,600

Transition

Probable

612

3.18

62,700

Fresh

Probable

4,258

3.19

436,500

Total

Probable

7,039

3.14

709,800

January 2016

Phase 1 (US$1,100)

New Mine Schedule

Phase 1 (US$1,100)

January 2016 Phase 1 (US$1,250)

New Mine Schedule

Phase 1 (US$1,250)

NPV (US$m, 8% discount)

69

89

118

136

IRR (%)

35

41

53

58

LoM Ore Mined (Mt)

7.1

7.0

7.1

7.0

Strip Ratio (waste:ore)

13.2:1

12.9:1

13.2:1

12.9:1

LoM Grade (g/t)

2.91

3.14

2.91

3.14

LoM Contained Gold (koz)

666

709

666

709

Recovery (%)

92.1

92.5

92.1

92.5

LoM Recovered Gold (koz)

614

656

614

656

Production Year 1 (koz)

121

132

121

132

LoM Production/year (koz)

101

102

101

102

LoM Cash Costs (US$/oz)

656

631

656

631

LoM AISC (US$/oz)

720

693

727

702

Project Capex (US$m)

79

79

79

79

Daniel Betts

Thomas Hill

Robert Monro

Hummingbird Resources plc

Tel: +44 (0) 203 416 3560

Charlie Cryer

Samantha Harrison

RFC Ambrian Ltd

Nominated Adviser and Joint Broker

Tel: +44 (0) 203 440 6800

Jon Belliss

Beaufort Securities Limited

Joint Broker

Tel: +44 (0) 20 7382 8300

Lottie Brocklehurst

Susie Geliher

Hugo de Salis

St Brides Partners Ltd

Financial PR/IR

Tel: +44 (0) 20 7236 1177

"g"

gram;

"g/t"

grams per tonne, equivalent to parts per million;

"k"

thousand;

"km"

kilometres;

"m"

metres;

"M"

million;

"mt"

million tonnes;

"oz"

troy ounce (31.103477 grams);

"t"

tonnes;

"Au"

the chemical symbol on the periodic table for the precious metal, gold;

"Cut-off grade"

the lowest or highest assay value that is included in a resource estimate;

"Deposit"

mineralisation which has been outlined on surface and via underground work or drilling sufficient for a Mineral Resource estimage to be calculated with tonnage and grade but where there has been no ore production;

"Indicated resource"

that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed;

"Inferred Resource"

that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which is of uncertain quality and reliability;

"JORC"

the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Mineral Council of Australia;

"JORC 2012"

the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves;

"Measured Resource"

that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity;

"Mineral Resource"

mineral of potential value but not necessarily proven as a reserve;

"Ore"

mineral of proven economic value;

"Ore Reserve"

the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined. Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments demonstrate at the time of reporting that extraction could reasonably be justified. Ore Reserves are sub-divided in order of increasing confidence into Probable Ore Reserves and Proved Ore Reserves. A Probable Ore Reserve has a lower level of confidence than a Proved Ore Reserve but is of sufficient quality to serve as the basis for a decision on the development of the deposit.

"Probable Reserve"

The economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource;

"SAMREC"

the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves;

"SAMREC 2009"

the 2009 edition of the South African Code for the Reporting of Exploration Results, Mineral Resources and Mineral Reserves

CRITERIA

JORC CODE EXPLANATION

COMMENTARY

Mineral Resource estimate for conversion to Ore Reserves

· Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.

· Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.

· The Mineral Resource estimate has been prepared by Mr. Galen White of CSA Global (UK) Pty Ltd and has been reported in CSA Global report R307.2015 and Section 5 of the Yanfolila Life of Mine Definitive Feasibility Study Report, January 2016. The date of the Mineral Resource Estimate is 2 December 2015.

· The Mineral Resource is reported inclusive of the Ore Reserve.

Site visits

· Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

· If no site visits have been undertaken indicate why this is the case.

· Mr. Paul O'Callaghan visited the project site between the 7th and 10th July 2015 for the purposes of project review with the principle aim being to fulfil the JORC Code (2012 Edition) site visit requirement. He inspected the proposed locations of the open pit mines, waste dumps, transport corridors, process plant and associated infrastructure. He also had discussions with other mining consultants who were previously involved in the technical aspects of the work.

Study status

· The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.

· The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.

· Gold Fields Ltd ("GFL"), the previous owners of the Yanfolila Project undertook sufficient work demonstrating the economics of Project and gained an Exploitation (Mining) Permit under the Mining Code of Mali, which requires the proponent to submit a feasibility study as a proof for a viable deposit. The current owners, Hummingbird Resources Plc ("HUM"), with the assistance of DRA Pty Ltd have compiled a Life of Mine Definitive Feasibility Study ("LOM DFS") as part of the Project financing requirements. The LOM DFS was made available to support this Ore Reserve estimate.

· The work undertaken to date has addressed all material Modifying Factors required for the conversion of Mineral Resources to Ore Reserves. Further work by CSA Global has incorporated improvements in the pit optimisation, pit design and mine production scheduling areas for a mine plan which is technically achievable and economically viable.

Cut-off parameters

· The basis of the cut-off grade(s) or quality parameters applied.

· To account for the metallurgical recovery, which varies by material type and grade, the grade of each block was assessed to determine whether the block was 'processable' or not. Four attributes were created for each block, being the cut-off grades (COG) for each rock type and a process attribute of "1" when the block grade was greater than the COG for the material type. In calculating the COG, costs included a G&A component, providing a conservative COG. COG for oxides is 0.80 g/t Au and 0.96 g/t Au for fresh and transitional material.

Mining factors or assumptions

· The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).

· The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.

· The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc.), grade control and pre-production drilling.

· The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).

· The mining dilution factors used.

· The mining recovery factors used.

· Any minimum mining widths used.

· The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.

· The infrastructure requirements of the selected mining methods.

· Input parameters for pit optimisation have been based on supplied contractor quotations, mining costs derived from tender data provided by mining contractors in mid-2015 and mineral processing consultant cost estimates. The commodity price of US$1,100/oz gold was nominated by HUM. These input parameters were reviewed by CSA Global. They are considered appropriate for the current gold world market.

· A number of deposits have been identified in the project area. At this time, only two near surface deposits are being considered for mining, being the Komana West ("KW") and the Komana East ("KE") deposits. Both are amenable to open pit mining using conventional drill and blast and load and haul mining methods. No significant pre-stripping will be required to access the pits.

· Geotechnical analyses have been undertaken by Peter Gash of MineNet Consulting Mining Engineers. Slope angles, both bench and inter-ramp have been recommended for regoliths, being 60O for benches and inter-ramp of 44O for walls down to 40m in soils and 40O for walls in soils below 40 m and for the KW riverside wall from surface. These slope angles are predicated on achieving substantial depressurisation of the walls in advance of mining by use of dewatering wells around the pit. In fresh rocks, the recommended inter-ramp angles are 52O for the footwall and 56O in the hanging wall. Recommended face angles are 75O and 80O respectively. All walls in fresh rock need to be protected by controlled blasting (pre-spit, buffer and trim).

· Grade control is planned to be carried out using Reverse Circulation ("RC") drilling over 2 to 3 benches in advance of mining. Grade control drilling is expected to average about 25,000 to 35,000m per annum. A programme of pre-production grade control drilling has been recommended to provide additional information for mine planning.

· The Mineral Resource was estimated by CSA Global (UK) Pty Ltd. The resource block model from CSA was used for optimisation and mine planning after inclusion of additional attributes. The minimum block size was 0.5m x 0.5m x 1.0m, which whilst being small, allows for excellent definition on the narrow vein sections of the orebody.

· Mine recovery of 95% has been based on experience in West Africa and includes modelling and operational losses as well as rehandle.

· A geometric dilution was estimated based on minable widths on a bench by bench basis, expressed as a percentage. An additional 0.4 m total tolerance was added to account for excavator boundary accuracy. A further 1% dilution was added to the geometric dilution to account for grade control error. Average dilution has been estimated at 10% for KW and 11% for KE.

· Inferred Mineral Resources have not been included in the pit optimisation, and also not in the mining schedule. Inferred Resources within the design pit total 47 kt at a grade of 2.2 g/t Au. This material has been considered as waste in the mining schedule.

· Mine infrastructure has been included in contractor quotations.

Metallurgical factors or assumptions

· The metallurgical process proposed and the appropriateness of that process to the style of mineralisation.

· Whether the metallurgical process is well-tested technology or novel in nature.

· The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.

· Any assumptions or allowances made for deleterious elements.

· The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.

· For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?

· The processing route chosen for the project includes two stage crushing for oxide and blends of oxide and fresh material, with the facility to add tertiary crushing to treat fresh ore; ball milling; gravity recovery and intensive cyanidation; Carbon-in Leach ("CIL") (1 pre-leach and 6 CIL stages); air/SO2 (INCO) cyanide detoxification and pumping to the tailings storage facility ("TSF") for oxides; thickening, detoxification and disposal to the TSF for blends and fresh ore; acid washing; elution using a split AARL system; carbon regeneration; electrowinning and smelting. The process flowsheet has been determined based on a number of trade-off studies for the various stages which indicate that the proposed process is appropriate to the style of mineralisation.

· The proposed metallurgical process does not introduce any novel or untested technologies.

· A number of test work campaigns have been conducted on samples from the project area since 2007. These have included Bulk Leach Extractable Gold bottle roll cyanide leach testing on RC drill chips; cyanidation, CIL and gravity concentration tests using assay rejects to provide a general view of the amenability of samples to gold extraction; similar testing on drill composite samples from KE, KW and Sanioumale East deposits divided into oxide, transition and fresh material types; effects of variation in grind and cyanide concentrations and gravity recovery test work on drill core samples; comminution tests, gravity concentration, oxygen uptake, cyanidation and CIL, cyanide destruction, rheology and settling tests focused on generating design parameters for the process plant; additional gravity concentration test work; and a further test work programme in 2015 to fill gaps identified in previous test work data. Test work has been carried out by a number of laboratories including ABILAB in Burkina Faso, McClelland Laboratories in USA, SGS South Africa (Pty) Ltd and Gravity Concentrators Africa. Results have been reviewed and interpreted by Brittan Process Consulting, LLC (USA) and Orway Mineral Consultants (Australia).

· The source and representivity of the samples for the later programmes has been well documented and indicates samples tested are representative of the material types planned to be processed. Based on the mine design developed in mid-2015, 90% of the tonnes to be mined in the first two stages of the KE pit lie within 120 m of a metallurgical sample and 57% of tonnes in Stages 1 and 2 of the KW pit are within 120 m of a metallurgical sample.

· Metallurgical recoveries derived from the test work programmes are represented by equations for the various material types and are dependent on head grade, grind size and leach time. Typically recoveries are in the range of 90% to 97%, averaging 94% for oxide material, 83% to 94%, averaging 89% for transition and fresh material.

· Detoxification test work indicates elevated levels of Arsenic, Cyanide and Copper in tailings. There is significant removal of all these components by use of SO2 - Air treatment (INCO process).

· The majority of the metallurgical testing has been conducted on drill samples, however a small test pit has been dug at KE to test handling characteristics of wet saprolite material.

· Not applicable.

Environmental

· The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.

· In line with requirements of Decree 08-346/P-RM of 26 June 2008 an Environmental and Social Impact Assessment ("ESIA") of the Yanfolila gold project was prepared and submitted. Based on the results of the ESIA, an environmental permit was awarded to Glencar on 29th April 2013. This permit stipulates that the Project must commence within three years of award, otherwise a new ESIA must be completed. Plant earthworks have been undertaken in 2015, marking Project commencement. Alongside commitments made within the ESIA and accompanying ESMP, a list of specific conditions are attached to the permit.

· A number of authorisations and concessions will be required for active dewatering of the pits and the waste management plan. Applications are underway for required authorisations and concessions and it is reasonable to assume that these will be granted.

· Mali is party to a number of international environmental and social agreements and conventions and is a member of the United Nations Organisation ("UN"), the Food and Agricultural Organisation ("FAO"), the World Health Organisation ("WHO") and the International Union for the Conservation of Nature ("IUCN"). These memberships introduce requirements for Project management and reporting. The Yanfolila Project is being developed in line and accordance with international best practice and standards.

· Waste rock characterisation studies have shown that the main parameter of interest is Arsenic, which occurs naturally at elevated concentrations in groundwater in the KW area, and is shown to be mobilized from transitional and fresh rock. HUM believes that Field kinetic test results confirm that the TSF and Waste Dump design is fit for purpose.

· Water management for the site, including water balances through all seasons, potential interconnectivity with the Sankarani River and the need for pit dewatering has been investigated and modelled by Schlumberger Water Services. Key conclusions include that there is unlikely to be any significant hydraulic connectivity between the Sankarani River and the groundwater system in the KW pit area; dewatering of the saprock unit effectively underdrains the saprolite; flood protection should be included for the lowest elevation points of the western pit rim; significant volumes of water will require discharge to the environment, however much of this will only require basic conditioning to remove suspended solids in Environment control dams; detoxification of tailings will be required; and HUM believes that the current TSF design capacity will not require secondary treatment prior to discharge as the water storage capacity removes this requirement.

Infrastructure

· The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.

· The project site is a greenfield site without existing infrastructure, except for the Komana exploration camp.

· The site layout plan indicates adequate land for project development.

· Access to the site is via an existing road connecting the town of Yanfolila and the Kona Bridge. Allowance has been made to upgrade this road. Bridges on the road have been assessed as adequate for the transport of plant equipment to site. Additional roads will be built to maintain access to local villages.

· Water supply will be from Sankarani river take-off, pit dewatering and return from the tailings storage facility. A potable water treatment facility, sized for 5m3/h will be located in a high security area of the process plant.

· Power will be supplied from an Independent Power Provider. Two vendors have provided offers for this supply.

· Labour is expected to include local and national personnel, with some expatriate senior management. Local hire is expected to be approximately 47% of the operational workforce, and expatriates less than 5%.

· Accommodation has been based on personnel living both in camp and locally. The Komana camp is planned to consist of 2 to 5 person blocks, senior management villas and kitchen, restaurant, medical and recreational facilities. The construction workforce will be housed in converted containers sleeping up to 4 persons.

Costs

· The derivation of, or assumptions made, regarding projected capital costs in the study.

· The methodology used to estimate operating costs.

· Allowances made for the content of deleterious elements.

· The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products.

· The source of exchange rates used in the study.

· Derivation of transportation charges.

· The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.

· The allowances made for royalties payable, both Government and private.

· The capital cost estimate is categorized as 'Feasibility Type', with a combination of detailed and semi-detailed costs. It has been produced using Vendor firm and budget quotations and in-house data. An overall project contingency has been included.

· Mine operating costs have been based on tender data provided by mining contractors during June and July 2015. Process plant costs have been based on estimates for operating and maintenance personnel, consumables and reagents, power, maintenance supplies and assay costs, including vendor quotations.

· General and Administration costs include estimates for Human Resources, camp operations and catering, health and medical supplies, PPE, training, security, vehicles, insurance, transport, corporate services, environmental and social, external advisors, permits and fees and fuel.

· The accuracy of both capital and operating cost estimates is considered to be -10% to +15%.

· Arsenic has been identified at the KW deposit. Allowances for increased cyanide consumption have been included, based on metallurgical test work results.

· Commodity prices have been based on current pricing and long term projections for gold consistent with World Bank predictions issued in October 2015.

· The capital cost estimate is presented in US dollars as at Q3, 2015. Exchange rates for AUD, GBP, ZAR and EUR were as at that date. No allowances have been made for fluctuations in exchange rate.

· Selling costs have been estimated for gold, including royalties and refining. Refining costs have been based on proposals from three refineries.

Revenue factors

· The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.

· The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.

· See comments above.

Market assessment

· The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.

· A customer and competitor analysis along with the identification of likely market windows for the product.

· Price and volume forecasts and the basis for these forecasts.

· For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.

· The Gold Fields Mineral Services (GFMS) gold survey Q3 2015 indicated that physical gold demand increased by 7% year on year due to an increase in net official sector buying and a high level of retail sales of bars and coins.

· The annual 2014 GFMS review indicated demand for gold dropped by 18%, however CIS and Russian Central banks increased their gold holdings. This trend is expected to continue over the medium term. It is also expected that the eastward shift in physical gold demand will give the gold market stability in the near to medium term.

· Global mine production increased by 2% in 2014 and scrap supplies declined by 13%. It is expected that mine production will stabilize at current levels.

· The World Bank Commodity Price Forecast, released October 20, 2015 indicates gold prices ranging from $1156/oz in 2015, to $1084 in 2020 and at $1000/oz in 2025.

Economic

· The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.

· NPV ranges and sensitivity to variations in the significant assumptions and inputs.

· Capital cost estimates are based on a combination of detailed and semi-detailed costs, suitable for inclusion in a Feasibility study. They have been produced using Vendor firm and budget quotations and in-house data. Operating costs are based on recent mining contractor quotations and processing costs developed in house and by consultants and using vendor quotations for consumables.

· Financial analysis based on financial modelling by Endeavour Financial on behalf of HUM indicate that the project returns a positive Discounted Cash Flow ("DCF") of US$ 80.4M at a discount rate of 10% sufficient to justify the estimated capital expenditure over a production life of 6 years. The payback period is estimated to be slightly less than 2 years. No allowance has been made for inflation.

· Sensitivity analysis has indicated that the project is robust in terms of capital costs, sensitive to operating costs with a 10% change in operating costs causing approximately 10% change in DCF and very sensitive to changes in revenue factors, with a 10% change in gold price causing a 43% change in DCF.

Social

· The status of agreements with key stakeholders and matters leading to social licence to operate.

· The Project holds a Mining Permit, valid for 30 years, has received environmental approval and is in the process of applying for appropriate water concessions. There are no apparent reasons for any pending approvals to be denied.

Other

· To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:

· Any identified material naturally occurring risks.

· The status of material legal agreements and marketing arrangements.

· The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.

· The Project is located adjacent to the Sankarani River. Water studies indicate that hydraulic connectivity between the river and local groundwater is unlikely. Modelling of 1:100 year flood levels indicates a free board of 1.5m, however a waste rock flood berm is suggested along the lower topographic sections of the KW pit rim.

· The site experiences high rainfall throughout the wet season. Handling issues may occur with saprolite materials. Test work is being undertaken to assess this issue. Mine and project design has included allowances for suitable drainage and water storage and production delays due to wet weather.

· A Risk Register has been compiled for the project. The risk assessment considered the entire project for all loss type, including geological, project, geotechnical, mining operations, process plant operations, human resources, EHS, financial, legislative, social and reputational risks. 12 high (the system used did not allow for extreme risks) risks were identified. These high risks relate to grade control modelling, geotechnical design, higher mining contractor costs, mining accident, availability of reagents and fuel, import of key equipment, national and local security, artisanal mining, social unrest, and environmental spillage. Appropriate mitigation actions have been identified and will be implemented.

· Decree No. 2014-0069 awarded an Exploitation Permit to Glencar on February 13, 2014, valid for 30 years. Based on the results of the ESIA, an environmental permit was awarded to Glencar on 29th April 2013.

Classification

· The basis for the classification of the Ore Reserves into varying confidence categories.

· Whether the result appropriately reflects the Competent Person's view of the deposit.

· The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).

· The mineral resource above a cut-off grade of 0.80 g/t Au for oxides, 0.96 g/t Au for Transition and fresh material within the designed open pits has been modified by the application of suitable mining recovery and mine dilution factors and has been classified as Probable, based on the Indicated classification of the Mineral Resource estimate. The level of work undertaken is considered sufficient for the classification of Probable Ore Reserves.

· Mr. Paul O'Callaghan, the Competent Person for this Ore Reserve estimation, has reviewed the work undertaken for the LOM DFS and considers that it is sufficiently detailed and relevant to the deposit to allow those Ore Reserves derived from Indicated Mineral Resources to be classified as Probable.

· Zero (0) % of Probable Ore Reserves have been based on Measured Mineral Resources.

Audits or reviews

· The results of any audits or reviews of Ore Reserve estimates.

· This Ore Reserve has been prepared by Mr. Paul O'Callaghan, CP after peer review of the mining section of the Life of Mine Study. Other experts, being CSA Global (UK) Ltd; Schlumberger Water Services; Brittan Process Consulting, LLC; Orway Mineral Consultants; Senet, Minenet Consulting Mining Engineers; HUM personnel; and various environmental and mining consulting groups have been relied on for information regarding Mineral Resources, water management, processing, mining, geotechnical, tenure, approvals status and environment.

Discussion of relative accuracy/ confidence

· Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.

· The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

· Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.

· It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

· Sensitivity analysis of the cash flow model indicated that the main project drivers are revenue factors, being gold price, metallurgical recovery and throughput rate.

· Overall accuracy of the cost estimates for the LOM DFS is considered to be -10%/+15%.

· The project is not yet operational and as such, no production data exists at this time.