Kilgore Project Achieves >92% Gold Recoveries - Seite 2

Metallurgical testing of the samples consisted of:

• Initial head grade assay of each of the drill intervals submitted
• Bench-top bottle roll leach tests
• Column leach tests at 0.5-inch, 1.5-inch and 3.0-inch crush sizes

The test work was conducted to confirm the suitability of this material to treatment by cyanide heap leaching and to validate the crush size required for efficient gold extraction. Each of the tests was conducted in a typical heap leach configuration. Mineralogical examination of the higher-grade gold occurrences within the samples submitted revealed gold grains associated with Jarosite, a mineral product of oxidation of iron sulfides, varying in size from <2 microns to 70 microns (Figure 2).

Alan Roberts, Vice President of Explorations, stated: “The improvement in recovery revealed by this round of metallurgical testing shows the amenability of the Kilgore Deposit to heap leach gold and silver recovery; both the gold recoveries for 0.5” crush and simulated 3.0” Run-of-Mine mineralized material processing are significantly higher than the respective 82% and 50% recoveries used in our recently-released Preliminary Economic Assessment. Furthermore, the identification of the direct association between Gold and jarosite is an important step in understanding the nature and character of mineralization at Kilgore.”

Alan Roberts, MSc, CPG (AIPG: CPG#11260), Vice President of Exploration, is the Qualified Person for this news release and has reviewed and approved the technical content contained herein.

About the Kilgore Project
The Kilgore Project has a current NI 43-101 Indicated Resource of 825,000 ounces Au in 44.6 million tonnes at a grade of 0.58 g/t Au and an Inferred Resource of 136,000 ounces Au in 9.4 million tonnes at a grade of 0.45 g/t Au. The maiden Preliminary Economic Assessment (or “PEA”) showed an after-tax NPV (5% discount rate) of US$110.4 million and IRR of 34.0%, with a 3-year payback period and LOM net cash flow of US$151.8 million at a $1,300 gold price. Please note the PEA is preliminary in nature and includes Inferred resources that are too speculative geologically to have the economic considerations applied to them. There is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.