Cardinal Resources Ltd.: Quarterly Activities Report, 31 December 2018

TORONTO, Jan. 31, 2019 - Cardinal Resources Limited (ASX: CDV; TSX: CDV) (“Cardinal” or “the Company”), an African gold focused exploration company, is pleased to present its Quarterly Activities report for the period ended 31 December 2018. Currently Cardinal holds tenements within Ghana being the Bolgatanga Project and Subranum in central Ghana (Figure 1).

The Company is focused on the development of the Namdini Gold Project with a Maiden Ore Reserve of 4.76Moz and is now advancing the Bankable Feasibility Study (BFS).

Exploration programmes are also underway at the Company’s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.

HIGHLIGHTS

• On September 13, 2018 the Company commenced with an Enterprise Optimisation study on the Namdini Gold Project with Whittle Consulting Pty Ltd. This involves a rigorous analytical and computational process at a detailed spatial and technical level to increase the value of the project. The optimised results of which will be fed into the BFS.
  
• On October 18, 2018 the Company commenced with a geochemical assessment of the Namdini Gold Project and to provide a management support programme for any potential Acid and Metalliferous Drainage (AMD) associated with the development of the deposit into operation and eventual closure.
  
• On October 26, 2018 the Company submitted its draft Environmental Impact Statement (EIS) for the Namdini Gold Project to the Environmental Protection Agency (EPA) of Ghana.
  
• On November 11, 2018 BFS value added activities commenced on the Namdini Gold Project. This included optimisation studies to improve the level definition of the current pit design as well to explore opportunities in enhancing and increasing project value. These are being undertaken by the same consultants that completed the Pre-Feasibility Study (PFS) on behalf of the Company.
  
• On November 28, 2018 the Company announced high grade intercepts on the Ndongo East Discovery located within the Ndongo License area approximately 24km north of the Namdini deposit. Additional shallow gold intersections to the exploration drill results previously announced on July 16, 2018, were located at the new Ndongo East Discovery.

OUTLOOK

The principal activity of the Company (and its subsidiaries) is gold exploration and mine development in Ghana. The Company holds interests in five tenements prospective for gold mineralisation in Ghana in two NE-SW trending Paleo-Proterozoic granite-greenstone belts: the Bolgatanga Project and the Namdini Gold Project (“Namdini Gold Project” or “Namdini”), which are, respectively, located within the Nangodi and Bole-Bolgatanga Greenstone Belts in northeast Ghana and the Subranum Project, which is located within the Sefwi Greenstone Belt in southwest Ghana.

The main focus of activity is the Namdini Gold Project which has a maiden Probable Ore Reserve of 129.6 Mt grading 1.14 g/t Au for 4.76 Moz Au at a 0.5 g/t Au cut-off grade. The Company expects to continue to generate positive news flow from its ongoing greenfield exploration assets and Bankable Feasibility Study activities.

The map below shows the location of the Namdini Gold Project and the Company’s other properties in Ghana.

To view Figure 1: Cardinal Resources Tenements in Ghana
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/37731961-862e-4efe-b727-c66524a90c14

THE NAMDINI GOLD PROJECT

Property Title / Mining Lease

A Large-Scale Mining Licence covering the Namdini Mining Lease was granted to Cardinal Namdini Mining Limited (“Cardinal Namdini”), a wholly owned subsidiary of Cardinal, by the Minister of Lands and Natural Resources under the Ghanaian Minerals and Mining Act 2006 (Act 703) in December 2017. The Large-Scale Mining Licence, covers 19.54 km² in the Dakoto area of the Talensi District Assembly in Upper East Region of Ghana evidenced by a Mining Lease is for an initial period of 15 years and is renewable.

Project Development Activities

Cardinal is progressing with its BFS programme to further advance the Namdini Gold Project. This consists of continuing with previously selected and newly selected consultants to assist with the phased development of the Namdini Gold Project. The consultants and their roles are tabulated below:

Table 1: Study Team

Project Development Timeline

The following preliminary schedule (Table 2) is subject to available funding, positive outcomes for the BFS and favorable timelines for permitting;

Table 2: Namdini Project Development Timeline

A mining design review of the PFS was completed by Sebbag Group International. Their finding was that the overall project economics support a positive cash flow and go forward case from PFS to BFS meeting the regulatory requirements for the conversion of a Ore Reserve statement at the current level of assessment. The work completed did not show any fatal flaws or red flags with Cardinals PFS. The areas where further minor work was identified in the report recommendations, can be resolved, optimised or completed before the end of the BFS in Q3 - 2019. The project economics were found to be robust and met the acceptable industry standard variances in Opex (operating expense) and Capex (capital expense) respectively to support a positive NPV and go forward case for the 9.5 Mtpa option.

A proposal from a HV power supply company was received which included back-up power and alternative power supply opportunities. This option included assessment of the current power generation capabilities through grid connection and an independent power generation solution on the basis of an independent power producer (IPP) or Build Own Operate Transfer (BOOT) type contract structure. The first option is a total independent heavy fuel oil (HFO), Solar Photovoltaic (PV) and Battery energy storage hybrid system and the second option is a Solar PV and battery system with a hydro generated power grid connection. The Company is assessing the merit of the proposal and are receiving further proposals for evaluation.

Cardinal requested Golder to assess the potential of increasing the current declarable Ore Reserves for the Namdini Gold Project, without negatively impacting project financial return, thereby improving the Mineral Resource to Ore Reserve conversion factor. Targeting near pit ore was considered to be the most viable option for exploring this potential Ore Reserve increase.

The geochemical assessment by Golder which commenced in the quarter is to identify any potential issues and opportunities with the material to be mined, stockpiled and stored on site as well as to clarify any potential implications for material handling, construction and operations. Cardinal has developed a Sulphur and Arsenic Mineral Resource distribution model including most of the in-pit waste and has drill core and pulps available for sampling and testing. The geochemical assessment will be executed in support of mine planning and closure, conducted in accordance with Ghanaian and International Acid Prevention (2009) Global Acid Rock Drainage guidelines.

Namdini Sterilization Drilling

A total of 7 reverse circulation (RC) holes were drilled on the Namdini tenement during the quarter with 488 samples, including QAQC controls, submitted to SGS and ALS Ghana based laboratories for gold analysis using the Fire Assay analytical method (Table 3).

Further sterilization drilling is planned for 2019 over areas proposed for mine infrastructure.

Lithologies encountered include metavolcanics, thin granitoid slivers in the metasediments and diorite.

Table 3: Namdini Sterilization Drilling for Q4 2018

REGIONAL EXPLORATION UPDATE

Bolgatanga Project
The Bolgatanga Project includes the Ndongo, Kungongo and Bongo License areas (Figure 2). The main focus of the Company’s diamond (DD) and reverse circulation (RC) drilling was on the highly prospective areas along the Nangodi Shear Zone during this quarter. Detailed ground geophysical surveys were also in progress over the Ndongo and Kungongo Licenses.

To view Figure 2: Bolgatanga Project Tenements
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/57cd232c-0b72-4512-a34c-a114893915ba

Subranum Project
The Subranum Project is located in southwest Ghana (Figure 1). Diamond drilling was completed on this project late in the quarter, please see below for details.

BOLGATANGA PROJECT

Exploration Drilling
A total of 22 DD holes were drilled on the Ndongo East Prospect with 8 DD holes on Kungongo Extension during the quarter with 2,286 samples, including QAQC controls, submitted to Ghana based laboratories for analysis for gold using the Fire Assay analytical method (Table 4).

Table 4: Exploration Drilling for Q4 2018

Ndongo License Area

The Company has continued to concentrate its exploration focus this quarter on the Ndongo Licence which covers an area of 295km² (Figure 3). Exploration has defined six prospects totalling 70km in strike length only 15-25km north of the Namdini Gold Project.

The Company considers the Ndongo Licence area to be highly prospective for the discovery of economic gold mineralisation associated with the prolific Nangodi Shear Zone, a splay fault off the main regional-scale Bole-Bolgatanga Shear. Elsewhere, the Nangodi Shear Zone is spatially related to no fewer than four major gold discoveries, including the Company’s Namdini Gold Project, the Shaanxi Mine, the historic Nangodi Gold Mine and the Youga Gold Mine in Burkina Faso, adjacent to the Ghana border (Figure 3). In addition, there are numerous historic shallow artisanal workings along many parts of this shear zone.

Ndongo East Prospect

The Ndongo East Prospect is located within NE-SW trending Birimian metavolcanics and metasediments.

Cardinal recommenced drilling after the wet season during November 2018 in order to test the strike and depth extents of the mineralised system. Post wet season drill results were announced on 23^rd January 2019.

During H2 – 2018, Cardinal reported several intersections of high-grade gold at its new Ndongo East discovery within the Ndongo License and has now intersected further high-grade gold in recently completed diamond drilling of this high-grade gold target. Currently, Cardinal has one diamond rig continuing to evaluate the Ndongo East discovery. Best intercepts in the new holes reported include:

• 14m @ 7.0 g/t Au from 69m in NDDD046 (including 2m @ 42.2g/t from 80m)
• 3m @ 29.3 g/t Au from 45m in NDDD036
• 3m @ 4.1 g/t Au from 122m in NDDD037

Intersections encountered in the drilling, have gold mineralisation developed at, or near, the diorite-granodiorite contacts, where competency differences create brittle fracturing which allows the ingress and precipitation of mineralising fluids. The mineralised horizons contain variable chlorite-silica-carbonate-sericite alteration with sulphides (mainly pyrite with very minor arsenopyrite).

The mineralised system is open along a northeast-southwest strike and at depth with multiple mineralised intersections. To date most of the high-grade mineralisation has been encountered from surface to a vertical depth of 70 metres (Figure 4).

To view Figure 3: Ndongo Prospecting Licence showing local prospects
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/b320615c-bc98-46c3-a31e-2b49e20b8b13

To view Figure 4: Ndongo East Prospect with drill locations on Ground Magnetic Image showing NE-SW mineralised structures open along strike
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/a4acf566-c0bf-4b0b-823b-eaabc06b733a

Kungongo Tenement
The Kungongo Licence is located in northeast Ghana some 45km west of the Company’s Namdini Gold Project. The Licence covers an area of 122 km² and is a renewable Exploration Licence (Figure 2).

Recent drilling focused mainly on the northern section of Kungongo to test rock chips gold anomalies, possible extensions of artisanal workings and ground magnetic anomalies. Lithologies encountered by drilling include metasediments and mafic volcanics. The initial RC/DD programme was planned on fences 200m apart with collars at 100m covering approximately 1.6km of strike length along the geophysical target (Figure 5 and Figure 6).

The total DD drilled for this initial programme was 881.17m. The most promising Intercepts thus far are tabulated in Table 6 of Appendix 1.

A ground magnetic survey was completed over 249 lines totalling 666.25-line kilometres on a line spacing of 50m covering the entire prospective Bole-Bolgatanga shear zone.

To view Figure 5: Kungongo DD Drill and Geochemical Sample Locations on Ground Magnetic Image
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/00626f28-3834-4250-a1fe-bea9b7fe8b00

To view Figure 6: Kungongo Section AA1
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/693ba069-79e2-4f72-9ff3-9ef72d569a1b

SUBRANUM PROJECT
The Subranum Project covers an area of 69km² located in southwest Ghana. The license straddles the eastern margin of the Sefwi Gold Belt which is bounded by the regional Bibiani Shear Zone (“BSZ”) stretching about 200km across southwestern Ghana. (Figure 7)

The Sefwi Belt is highly prospective and is spatially related to major discoveries including the 7Moz Bibiani Gold Mine (approximately 70km southwest), Newmont’s Ahafo 23Moz Gold Mine (approximately 53km west), and Kinross’ Chirano 5Moz Gold Mine (approximately 110km southwest).

To view Figure 7: Regional Geology with Subranum Tenement straddling Bibiani Shear Zone
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/6ab9d18b-0bad-4f66-ba04-153dab60465e

There is 9km of the BSZ developed within the Subranum license trending NE to SW. The BSZ forms a very prospective, sheared contact between Birimian phyllites and greywackes to the southeast and mafic to intermediate volcanics and volcaniclastics to the northwest. Granitoid stocks of the Dixcove suite intrude this shear zone.

Previous exploration by the previous owner, Newmont Corporation, included BLEG stream sediment sampling, regolith and soil sampling, trenching and RC drilling, defined a gold mineralised zone in the southwestern portion of the BSZ. This mineralised zone of 5km strike length was estimated by Newmont to contain an estimated inferred historic gold resource of 100,000 oz Au grading 1.8 g/t to a vertical depth of only 50m.

Diamond Drill (DD) Programme
The diamond drilling programme was to drill approximately 1,000m to assess this tenement after acquiring the exploration geological, geophysical and RC drilling data, from Newmont. The programme was to drill holes to compare and expand on the previous Newmont RC drilling results, by targeting the BSZ which is known to contain gold mineralisation. (Figure 8)

Diamond Drill (DD) Results
A total of 7 diamond drill (DD) holes were completed, with a further 3 holes abandoned due to adverse drill conditions. The near surface portions of each hole were drilled by HQ core size, totalling 487.60m, while the deeper portions were drilled by NQ core size, totalling 716.40m. The total DD drilled for this initial programme was 1,200.00m. The most promising intercepts thus far are tabulated in Table 8 of Appendix 2.

The drill core was transported to Cardinal’s Bolgatanga exploration compound, for cutting and sampling, with the remaining half core stored at the Cardinal storage shed in Bolgatanga.

To view Figure 8: Locality of Cardinal Diamond Drill Holes on Bibiani Shear Zone at Subranum
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/92765d09-23d6-4ad7-8b82-88183d034ba5

DD hole SBDD18-003 intercepted a wider zone of mineralisation, occurring at the metasediment-metavolcanic contact, with the higher gold grades developed adjacent to, or within, a granitoid intrusive (Figure 9).

To view Figure 9: Subranum – Drill Hole SBDD18-003 (on Section A-A, Figure 4)
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/7aa14982-d71c-473e-bed5-b8154d020e7a

DD holes, SBDD18-001 and SBDD18-002, were sited along a previous Newmont drill fence to confirm the gold mineralisation which had previously been intersected (Section B-B, Figure 10).

To view Figure 10: Subranum – Drill Holes SBDD18-001 & SBDD18-002
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/6865551f-50c3-4706-afbf-cbea14af8404

Drill holes SBDD18-006 (Figure 11) and SBDD18-007 (Figure 12) were collared very close to the SW boundary of the tenement where historical drilling was reported to have intersected relatively higher gold grades (Figure 11).

To view Figure 11: Subranum – Drill Hole SBDD18-006
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/dfa65e68-0f8d-4797-836f-a8df3e8e8e70

To view Figure 12: Subranum – Drill Hole SBDD18-007
visit: http://www.globenewswire.com/NewsRoom/AttachmentNg/87b364f9-636d-4def-9daa-28cb4135b3da

Narrow gold mineralisation mostly occurs adjacent to, or within, a granitoid intruded into metavolcanics. A narrow, high grade gold intersection also occurs at the metasediment-metavolcanic contact.

The portion of the Bibiani Shear Zone occurring within the Subranum tenement is 9km long, trending SW to NE. Previous extensive exploration has outlined a 5 km long gold target, extending from the SW tenement boundary towards the NE, with the remaining 4 km of the 9 km strike length remaining relatively unexplored.

Only a very small portion of this 5km long gold target has been drilled in this initial drilling programme.

CORPORATE

SUBSEQUENT TO THE QUARTER END

The Company was pleased to announce on January 2, 2019 the appointment of Non-Executive Director Trevor Stanley Schultz.

Mr Schultz has over 45 years in the mining industry with experience in project development, construction and operations. Between 2008 and 2018 he was an Executive and Non-Executive Director with Centamin Egypt and was responsible for the construction of the 12Mtpa processing plant which has a similar flowsheet to Cardinal’s proposed flowsheet.

Prior to this, he served as Chief Operating Officer at Ashanti Goldfields Corporation (now Anglo Gold Ashanti Ltd) and was a resident of Ghana for 6 years. Furthermore, he worked for BHP in Australia and America and in South Africa with Anglo American Corporation.

Trevor has an MA in Economics from Trinity College, England (1968), an MSc in Mining Engineering, from Witwatersrand University, South Africa (1972) and an Advanced Management Programme Diploma from Harvard Business School, USA (1986).

Archie Koimtsidis, CEO / MD of Cardinal, said:
“We are pleased to have Trevor join the Cardinal Board where his many years of expertise in project development will be of significant value to Cardinal and its stakeholders as the company moves the Namdini Gold Project towards the next level, its Definitive Feasibility Study which is anticipated in Q3 - 2019.

“The Board and Management would like to thank Mr Robert Schafer for his geological contribution. We appreciate Robert’s offer to provide advice as an independent consultant as we develop our district and near mine targets and wish him the best in his future endeavours.”

TENEMENT SCHEDULE - ASX LISTING RULE 5.3.3
The following mining tenement information is provided pursuant to ASX Listing Rule 5.3.3. No tenements in part or whole were relinquished, surrendered or otherwise divested during the quarter ended 31 December 2018.

CAPITAL STRUCTURE
As at 31 December 2018 the Company had the following capital structure;

Cash Balance
The Company’s cash balance at 31 December 2018 was approximately AU$29 million.

For further information contact:

Competent / Qualified Person Statement

The scientific and technical information in this Quarterly report that relates to the Namdini Gold Project has been reviewed and approved by Mr. Richard Bray, a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr. Ekow Taylor, a Chartered Professional Geologist with the Australasian Institute of Mining and Metallurgy. Mr. Bray and Mr. Taylor have more than five years’ experience relevant to the styles of mineralisation and type of deposits under consideration and to the activity which is being undertaken to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” and as a Qualified Person for the purposes of NI43-101. Mr. Bray and Mr. Taylor are full-time employees of Cardinal and hold equity securities in the Company.

The scientific and technical information in this Quarterly report that relates to Exploration Results, Mineral Resources or Ore Reserves at the Bolgatanga Project and Subranum Project is based on information prepared by Mr. Paul Abbott, a full-time employee of Cardinal Resources Ltd., who is a Member of the Geological Society of South Africa. Mr. Abbott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person, as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

Cardinal confirms that it is not aware of any new information or data that materially affects the information included in its announcement of the Maiden Ore Reserve of 18 September 2018. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.

JORC 2012
This report contains information extracted from the following reports which are available for viewing on the Company’s website www.cardinalresources.com.au:

• 23 Jan 2019 Cardinal Hits More High-Grade Shallow Gold at Ndongo East
• 28 Nov 2018 New Drill Season hits high-grade shallow gold at Ndongo East
• 18 Sept 2018 Cardinal Namdini Pre-Feasibility Study 4.76Moz Ore Reserve
• 29 Aug 2018 Cardinal Extends Ndongo East Discovery Strike Length
• 31 July 2018 Cardinal Executes U$5 Million Term Sheet with Sprott
• 16 July 2018 Cardinal Makes New Gold Discovery at Ndongo East
• 28 May 2018 Encouraging First Pass Gold Results at Ndongo
• 19 April 2018 Technical Report on Namdini Gold Project Filed on SEDAR
• 04 April 2018 First Pass Regional Exploration Drilling Underway
• 05 Mar 2018 Cardinal Upgrades Indicated Mineral Resource to 6.5Moz
• 22 Feb 2018 Cardinal Infill Drilling Results Returned
• 05 Feb 2018 Namdini Gold Project Preliminary Economic Assessment
• 22 Jan 2018 Namdini Infill Drilling Results Returned
• 14 Dec 2017 Namdini Drilling and Regional Exploration Update
• 12 Dec 2017 Cardinal Grade Control Drill Results Returned

The Company confirms it is not aware of any new information or data that materially affects the information included in this report relating to exploration activities and all material assumptions and technical parameters underpinning the exploration activities in those market announcements continue to apply and have not been changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements. Cardinal is not aware of any new information or data that materially affects the information included in its announcement of the Maiden Ore Reserve of 18 September 2018. All material assumptions and technical parameters underpinning this estimate continue to apply and have not materially changed.

Disclaimer

This ASX / TSX press release has been prepared by Cardinal Resources Ltd. (ABN: 56 147 325 620) (“Cardinal” or “the Company”). Neither the ASX or the TSX, nor their regulation service providers accept responsibility for the adequacy or accuracy of this press release.

This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release. The information in this press release is of a general nature and does not purport to be complete nor does it contain all the information, which a prospective investor may require in evaluating a possible investment in Cardinal.

By its very nature exploration for minerals is a high‐risk business and is not suitable for certain investors. Cardinal’s securities are speculative. Potential investors should consult their stockbroker or financial advisor. There are a number of risks, both specific to Cardinal and of a general nature which may affect the future operating and financial performance of Cardinal and the value of an investment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.

Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal’s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information. Recipients of this press release should make their own independent assessment and determination as to the Company’s prospects, its business, assets and liabilities as well as the matters covered in this press release.

Forward‐looking statements

Certain statements contained in this press release, including information as to the future financial or operating performance of Cardinal and its projects may also include statements which are ‘forward‐looking statements’ that may include, amongst other things, statements regarding targets, anticipated timing of the feasibility study (FS) on the Namdini project, estimates and assumptions in respect of mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ‘forward – looking statements’ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward‐looking statements.

Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward‐looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today’s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing Rules. The words ‘believe’, ‘expect’, ‘anticipate’, ‘indicate’, ‘contemplate’, ‘target’, ‘plan’, ‘intends’, ‘continue’, ‘budget’, ‘estimate’, ‘may’, ‘will’, ‘schedule’ and similar expressions identify forward‐looking statements.

All forward‐looking statements made in this press release are qualified by the foregoing cautionary statements. Investors are cautioned that forward‐looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward‐looking statements due to the inherent uncertainty therein.

APPENDIX 1
KUNGONGO LICENSE AREA DRILL META-DATA

Table 5: Meta-Data Listing of Kungongo Drill Holes

Table 6: Summary of Individual Intercepts of Kungongo drilling

Notes:

• Cut-off grade for reporting of each individual intercept is ≥ 0.5g/t Au with a maximum of 3m of consecutive internal dilution included within the intercept; only intercepts ≥ 1m are reported
• Intervals are HQ diamond core which are sampled at 1.0m intervals
• Samples are analyzed for Au (SGS Lab FAA505 method) which is a 50g fire assay fusion with AAS instrument finish
• Grid coordinates are in WGS84 Zone 30 North

The intercepts were calculated, using a 0.5g/t cut-off, which approximates the cut-off for Reasonable Prospects of Eventual Economic Extraction (“RPEEE”) as per the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”) 2012 and the Canadian Institute of Mining (“CIM”) 2010 guidelines and internal dilution of no more than 3m at <0.5g/t Au.

JORC CODE 2012 EDITION – TABLE 1

REPORTING OF EXPLORATION RESULTS – KUNGONGO LICENSE

Section 1 – Sampling Technique and Data

Section 2 – Reporting of Exploration Results

(Criteria listed in section 1 will also apply to this section where relevant)

APPENDIX 2
SUBRANUM LICENSE AREA DRILL META-DATA

Table 7: Meta-Data Listing of Subranum Drill Holes

Table 8: Summary of Individual Intercepts of Subranum drilling

Notes:

• Cut-off grade for reporting of each individual intercept is ≥ 0.5g/t Au with a maximum of 3m of consecutive internal dilution included within the intercept; only intercepts ≥ 1m are reported
• Intervals are HQ/NQ diamond core which are lithologically sampled ranging between 0.5m to 1.5m
• Samples are analyzed for Au (SGS Lab FAA505 method) which is a 50g fire assay fusion with AAS instrument finish
• Grid coordinates are in WGS84 Zone 30 North

The intercepts were calculated, using a ≥0.5g/t cut-off, which approximates the cut-off for Reasonable Prospects of Eventual Economic Extraction (“RPEEE”) as per the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code”) 2012 and the Canadian Institute of Mining (“CIM”) 2010 guidelines and internal dilution of no more than 3m at <0.5g/t Au.

JORC CODE 2012 EDITION TABLE 1
REPORTING OF EXPLORATION RESULTS – SUBRANUM LICENSE

Section 1 – Sampling Technique and Data

Section 2 – Reporting of Exploration Results
(Criteria listed in section 1 will also apply to this section where relevant)

An attachment accompanying this announcement is available at: http://www.globenewswire.com/NewsRoom/AttachmentNg/c11e1576-3f9a-4a09-b0cf-d544c52265d8