RTG announces granting of the Bunawan exploration permit EP-033-XIII

Criteria

JORC Code explanation

Commentary

Sampling techniques

• Nature and quality of sampling (e.g. 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.

The data reported includes the results of a minus 40 mesh soil sampling program. Samples were collected from the soil C horizon on the average at approximately 40 to 50cm depth below surface and submitted to the Intertek Laboratory in Manila where the minus 40 mesh (425µm) fraction was sieved for analysis. A quartz wash was conducted before each sample during the sample preparation and a new pot was used for each fire assay in order to minimise any potential contamination.

Twenty field duplicate samples were included in the soil sample and show good correlation. Gold at higher levels show some variation but it does not affect the distribution or intensity of the Au anomalies identified.

Field work reported herein includes the results of mapping a ground magnetic survey and soil sampling. No drilling has been conducted at Bunawan

Drilling techniques

• Drill type (e.g. 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).

No drilling has been conducted at Bunawan.

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.

No drilling has been conducted at Bunawan.

Logging

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

No drilling has been conducted at Bunawan.

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.

No drilling has been conducted at Bunawan.

Soil samples were collected from the soil C horizon on average at approximately 40 to 50cm depth below surface and submitted to the Intertek Laboratory in Manila where the minus 40 mesh (425µm) fraction was sieved for analysis. A quartz wash was conducted before each sample during sample preparation and a new pot was used for each fire assay in order to minimise any potential contamination.

Twenty field duplicates were included in the soil sample program. Duplicates were treated in the same manner and sieved at the laboratory rather than in the field.

Twenty field duplicate samples were included in the soil sample program. Duplicates were collected from separate but adjacent pits.

Large samples (approx. 5Kg) were collected and sieved. The initial sample size is considered 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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Gold analysis was by fire assay / AAS finish to a detection limit of 5 ppb. Silver [0.5], arsenic [3], copper [1], lead [3] and zinc [1] were assayed by aqua regia digest/ICP/MS to detection levels noted above in ppm. The techniques are considered total.

No geophysical tools were used for any analysis conducted.

Field duplicates were collected during the soil sampling program. No blanks or standards were used. The laboratory conducted and reported its own internal standards.

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

No drilling has been conducted or intervals reported at Bunawan.

Data documentation, verification and storage is conducted in accordance with the Company's Standard Operating Procedures Manual and is stored in an appropriate database.

No top cuts or averages have been conducted on any of the assay results.

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.

Soil sample sites and ground magnetic survey points were sited with a hand held GPS with an accuracy of+/- 5 metres which is considered appropriate for the exploration programs conducted.

Co-ordinates are on a UTM Grid; WGS84 (52N).

The Bunawan area is moderately hilly. Exploration work was conducted using commercially available 1:50,000 contoured topographic maps which is appropriate for the work reported.

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.

Soil sampling was conducted on 100 x100m grid.

The sample spacing is appropriate for the exploration program and anomaly continuity reported. No resources or reserves have been estimated.

No compositing of intervals in the field have taken place.

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.

The sampling was conducted on a 100 x 100 m grid thus there is no bias in respect to the orientation of structures and geochemical anomalies.

No drilling has been conducted at Bunawan.

Sample security

• The measures taken to ensure sample security.

Chain of custody is managed by the Company's employees. Soil samples were initially stored in the Company's compound and then transported by Company vehicles to a local transport company which transported the samples to the laboratory in Manila.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

The sampling techniques and QA/QC data are reviewed on an ongoing basis by Company management and independent consultants and are considered to be appropriate for the early stage of exploration reported.

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.

EP-033-XIII is a partial approval of the application for Exploration Permit of Bunawan Mining Corporation denominated as EXPA-000037-XIII involving a 677 hectare portion of the 3,046.9 hectare applied area situated in Rosario, Agusan del Sur.

The EP referred to in this announcement is granted for 2 years, with the option to renew for a further 4 years.

RTG mining has a 40% ownership in Bunawan Mining Corporation.

The tenure over the area reported in this announcement is a granted Exploration Permit and is considered secure.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

The exploration results reported are based on work done by Sierra Mining prior to its merger with the Company. There was no other exploration conducted at the project prior to Sierra's work apart from artisanal prospecting and small scale production.

Geology

• Deposit type, geological setting and style of mineralisation.

The results of exploration conducted to date indicate the potential for the discovery of sheeted epithermal quartz veins hosting gold and silver mineralisation associated with a structural zone along the margin of the Mahunoc diatreme.

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:
  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • 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.

No drilling has been conducted at Bunawan..

Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade 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.

No top or bottom cuts or averaging of assay data has been carried out.

No metal equivalent grades are reported.

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').

No drilling has been conducted at Bunawan.

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 summarising the results of the previous exploration are reported..

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.

No drilling has been conducted at Bunawan.

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.

A map summarising the results of a ground magnetic survey is included. The results of the survey (readings every 5m on 100m spaced north-south oriented lines) were reported to the ASX by Sierra Mining previously.

Further work

• The nature and scale of planned further work (e.g. 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.

A drilling program is warranted, but the details of total metres and drill hole locations has not been finalised.