Gold X Mining – Fast Track to Mining License - Seite 3

A PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

The PEA documentation of mining production quantities replaces the 2013 Prefeasibility Study (the “2013 PFS”) Statement of Mineral Reserves.   The PEA is based on exploitation of measured, indicated and inferred mineral resources while the 2013 PFS is based on the exploitation of proven and probable mineral reserves.  Inferred resources from the Mineral Resource Estimate comprise 5% of the resources used in the production schedule reported in the PEA.  Mineral Resources that are not mineral reserves do not have demonstrated economic viability.  The conclusions and results of the PEA replace the conclusions and results from the 2013 PFS.

Timeline for Construction:  As discussed with the GoG, the timeline for commencement of production will be defined as final feasibility and project financing progresses.

To date the following documents have been submitted or received approval from Guyana regulatory bodies:

• Environmental Authorization –Guyana EPA (issued in 2012)
• Mining License Application – pending GGMC (reactivated in Aug 2019)
• Environmental Management Plan – GGMC (filed in 2014)
• Cyanide Management Plan - GGMC (filed in 2014)
• Explosives Management Plan - GGMC (filed in 2014)
• Mineral Prospecting, Mining and Stone Quarrying Agreement – GRA (approved in 2011 and extended through present date)

Final regulatory review and approval of the Mining License steps include:

• Technical review of 2019 Technical Report⁴ & 2013 PFS reports - GGMC Mines & Geology Dept.
• Property Ownership Assessment - GGMC Land Mgmt. Dept.
• Review of 2015 Draft Mining License - GGMC Legal Dept.
• GGMC Staff recommendations to Commissioner of GGMC
• GGMC Commissioner & Board of Directors recommendation to Minister of Natural Resources
• No Objection Letter issuance by Minister of Natural Resources
• Resolution by Board of Directors of GGMC and License Issuance by Commissioner               

Generally, the final permitting review phase can be expected to take six to nine months to complete.  While Guyana regulatory agencies have indicated that the review process is progressing, given the reduced level of governmental activity due to the COVID-19 pandemic, these timelines could be extended.