INDEPENDENT TECHNICAL REPORT Wawa Gold Project, Wawa, Ontario Prepared for Augustine Ventures Inc. Prepared by Elisabeth Ronacher, PhD, P.Geo. & Jenna McKenzie, P.Geo. Ronacher McKenzie Geoscience and Sébastien Bernier, P.Geo. SRK Consulting (Canada) Inc. June 30, 2016 Wawa Gold Project Ontario, Canada June 30, 2016 TABLE OF CONTENTS 1.0 SUMMARY ...................................................................................................................................... 10 2.0 INTRODUCTION ............................................................................................................................. 14 2.1 TERMINOLOGY .......................................................................................................................... 15 2.2 UNITS.......................................................................................................................................... 15 3.0 RELIANCE ON OTHER EXPERTS ................................................................................................ 16 4.0 PROPERTY DESCRIPTION AND LOCATION .............................................................................. 16 4.1 OWNERSHIP .............................................................................................................................. 23 4.2 ENVIRONMENTAL LIABILITIES ................................................................................................ 25 4.3 PERMITS .................................................................................................................................... 25 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ....................................................................................................................................... 26 5.1 ACCESS...................................................................................................................................... 26 5.2 CLIMATE ..................................................................................................................................... 26 5.3 PHYSIOGRAPHY AND VEGETATION ...................................................................................... 27 5.4 INFRASTRUCTURE AND LOCAL RESOURCES ...................................................................... 27 6.0 HISTORY ........................................................................................................................................ 29 6.1 SURLUGA GOLD MINES LTD. – 1962–1975 ............................................................................ 40 6.2 COMINCO – 1963/64 .................................................................................................................. 40 6.1 PANGO GOLD MINES LTD. – 1969–1970, 1980-1984 ............................................................. 41 6.2 J.D.S BOHME PROPERTIES – 1970 ......................................................................................... 43 6.3 CONSOLIDATED MORRISON EXPLORATIONS LIMITED – 1974 .......................................... 43 6.4 PURSIDES GOLD MINE – 1974-1975 ....................................................................................... 43 6.5 CANBEC EXPLORATIONS LTD. – 1983 ................................................................................... 44 6.6 DUNRAINE MINES LTD. – 1980–1984 ...................................................................................... 44 6.7 NORTHERN HORIZON RESOURCES LTD. – 1981, 1983 ....................................................... 45 6.8 MONTE CHRISTO RESOURCES – 1984 .................................................................................. 45 6.9 CITADEL GOLD MINES INC. – 1982–2006 ............................................................................... 46 6.10 CAVIAR RESOURCES LTD. – 1986 .......................................................................................... 47 6.11 GOLDUN AGE RESOURCES INC. – 1986 ................................................................................ 47 Page | 2 Wawa Gold Project Ontario, Canada June 30, 2016 6.12 MR. ROBERT HENDERSON – 1986.......................................................................................... 48 6.13 VAN OLLIE EXPLORATIONS LTD. – 1989–1991...................................................................... 48 6.14 ALLIED NORTHERN RESOURCES – 1988–1990 .................................................................... 51 6.15 PAN ORVANA RESOURCES INC. – 1990/91 ........................................................................... 51 6.16 TRANSGOLD EXPLORATIONS AND INVESTMENT INC. – 1994-1995, 1998 ........................ 52 6.17 LAWRENCE MELNICK – 1995-1996 ......................................................................................... 52 6.18 ELLIOT FEDER – 1996–1998..................................................................................................... 52 6.19 JOHN LEADBETTER – 2000 ...................................................................................................... 53 6.20 3814793 CANADA INC. – P.MOUSSEAU-L. – 2004.................................................................. 53 6.21 WAWA GP INC. – 2007 .............................................................................................................. 53 6.22 AUGUSTINE VENTURES INC. – 2011 ...................................................................................... 55 7.0 GEOLOGICAL SETTING AND MINERALIZATION....................................................................... 59 7.1 REGIONAL GEOLOGY............................................................................................................... 59 7.2 LOCAL GEOLOGY ..................................................................................................................... 60 7.3 PROPERTY GEOLOGY ............................................................................................................. 61 7.3.1 Structure ....................................................................................................................... 66 7.3.2 Alteration ...................................................................................................................... 67 7.4 MINERALIZATION ...................................................................................................................... 69 8.0 DEPOSIT TYPES ............................................................................................................................ 71 9.0 EXPLORATION .............................................................................................................................. 72 9.1 GROUND MAGNETIC SURVEYING (DEC 2014 – JAN 2015) .................................................. 72 9.2 INDUCED POLARIZATION (DEC 2014) .................................................................................... 75 9.3 GROUND MAGNETIC SURVEYING (OCTOBER 2015) ........................................................... 78 9.4 GROUND HORIZONTAL LOOP ELECTROMAGNETIC SURVEYING (OCTOBER 2015) ....... 81 9.5 HELICOPTER-BORNE GRADIENT MAGNETIC SURVEY (FEB 2015) .................................... 86 9.6 2014 ROCK SAMPLING ............................................................................................................. 93 9.7 2015 ROCK SAMPLING ............................................................................................................. 96 9.8 2015 CHANNEL SAMPLING ...................................................................................................... 98 10.0 DRILLING ..................................................................................................................................... 101 10.1 RESULTS .................................................................................................................................. 106 10.1.1 Surluga area ............................................................................................................... 109 10.1.2 Sunrise-Mickelson area .............................................................................................. 109 Page | 3 Wawa Gold Project Ontario, Canada June 30, 2016 10.1.3 Hornblende Shear area .............................................................................................. 109 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY .......................................................... 110 11.1 HISTORIC SAMPLES ............................................................................................................... 110 11.2 WAWA GP INC. 2007 SAMPLES ............................................................................................. 110 11.3 AUGUSTINE 2011 SAMPLES .................................................................................................. 110 11.4 2014 AND 2015 PROSPECTING AND CHANNEL SAMPLES ................................................ 111 11.5 RED PINE 2014/2015 SAMPLES ............................................................................................. 111 11.5.1 Analytical Procedures................................................................................................. 112 11.5.2 Physical Rock Property Measurements ..................................................................... 113 11.6 QUALITY ASSURANCE AND QUALITY CONTROL PROGRAMS ......................................... 115 11.6.1 SRK Comments .......................................................................................................... 116 11.7 GROUND MAGNETIC SURVEY (DEC 2014 – JAN 2015) ...................................................... 116 11.8 IP/RES SURVEY (DEC 2014)................................................................................................... 117 11.9 GROUND MAGNETIC SURVEY (OCT 2015) .......................................................................... 117 11.10 HLEM SURVEY (OCT 2015) .................................................................................................... 117 11.11 HELICOPTER-BORNE GRADIENT MAGNETIC SURVEY (FEB 2015) .................................. 118 12.0 DATA VERIFICATION .................................................................................................................. 119 12.1 DATA VERIFICATION BY RED PINE ...................................................................................... 119 12.2 DATA VERIFICATION BY SRK ................................................................................................ 119 12.2.1 Independent Verification Sampling ............................................................................ 119 12.2.2 Verification of Electronic Analytical Data.................................................................... 121 12.2.3 Verification of Analytical Quality Control Data ........................................................... 122 12.3 VERIFICATION OF ANALYTICAL QUALITY CONTROL DATA FOR THE OCTOBER/NOVEMBER 2015 DRILLING PROGRAM .......................................................................... 126 12.3.1 2016 Site Visit Check Samples .................................................................................. 129 12.4 SITE VISIT ................................................................................................................................ 129 12.5 GEOPHYSICS SURVEYS ........................................................................................................ 135 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................... 136 14.0 MINERAL RESOURCE ESTIMATES ........................................................................................... 136 14.1 MINERAL RESOURCE ESTIMATION METHODOLOGY ........................................................ 137 14.1.1 Resource Database.................................................................................................... 138 14.1.2 Geological Modelling .................................................................................................. 139 Page | 4 Wawa Gold Project Ontario, Canada June 30, 2016 14.1.3 Compositing and Capping .......................................................................................... 140 14.1.1 Specific Gravity Database .......................................................................................... 142 14.1.2 Variography and Block Interpolation .......................................................................... 146 14.1.3 Block Model Definition ................................................................................................ 147 14.1.4 Estimation Strategy .................................................................................................... 148 14.1.5 Block Model Validation ............................................................................................... 148 14.2 MINERAL RESOURCE CLASSIFICATION .............................................................................. 155 14.3 PREPARATION OF MINERAL RESOURCE STATEMENT ..................................................... 156 14.4 SENSITIVITY TO SELECTION OF REPORTING CUT-OFF GRADE ..................................... 157 15.0 ADJACENT PROPERTIES .......................................................................................................... 158 15.1 ARGONAUT GOLD INC. .......................................................................................................... 158 15.2 RICHMONT MINES INC. .......................................................................................................... 160 15.3 WESDOME GOLD MINES LTD. ............................................................................................... 161 16.0 OTHER RELEVANT DATA AND INFORMATION ....................................................................... 161 17.0 INTERPRETATION AND CONCLUSIONS .................................................................................. 161 18.0 RECOMMENDATIONS................................................................................................................. 164 18.1 PHASE 1 ................................................................................................................................... 164 18.1.1 3D Compilation ........................................................................................................... 164 18.1.2 Structural Interpretation .............................................................................................. 164 18.1.3 Rock Property Survey ................................................................................................ 164 18.1.4 Quality Control ............................................................................................................ 165 18.2 PHASE 2 ................................................................................................................................... 166 19.0 REFERENCES .............................................................................................................................. 167 20.0 STATEMENT OF AUTHORSHIP ................................................................................................. 175 FIGURES Figure 4-1: Location of Red Pine’s Wawa Gold Project.............................................................................. 17 Figure 4-2: Map showing the patented and unpatented mining claims of Red Pine’s Wawa Gold project.20 Figure 4-3: Map showing the patented mining claims of the Wawa Gold project. ...................................... 21 Page | 5 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 4-4: Map showing the location and the extent of the geological wireframe used to calculate the mineral resource (in yellow). ....................................................................................................................... 22 Figure 5-1: Map showing the access to property and the infrastructure in the area................................... 28 Figure 6-1: Locations of known diamond drill holes on the property. ......................................................... 31 Figure 6-2: Locations of the grab samples collected by Augustine in 2011. .............................................. 58 Figure 7-1: Map showing the Superior Province and its subprovinces. ...................................................... 60 Figure 7-2: Map of the Michipicoten Greenstone Belt. ............................................................................... 62 Figure 7-3: Property geology map. ............................................................................................................. 63 Figure 7-4: Typical diorite of the Jubilee Stock from drill hole SD-14-05 (7.4 m). ...................................... 64 Figure 7-5: Typical fine-grained mafic rock (gabbro) of the Jubilee Stock from drill hole SD-14-05 (36.5 m). .................................................................................................................................................................... 65 Figure 7-6: Lamprophyre from drill hole SD-14-06 (308 m). ....................................................................... 66 Figure 7-7: Quartz-sericite altered diorite from SD-14-05, 172.7 m............................................................ 68 Figure 7-8: Quartz-sericite altered diorite from drill hole SD-14-04, 35 m. The quartz-sericite alteration is overprinted by pink K-spar alteration. ......................................................................................................... 69 Figure 7-9: Late quartz-vein and breccia from drill hole SD-14-05, 167.3 m. ............................................. 71 Figure 9-1. Total Magnetic Intensity of Wawa Ground Magnetic Survey (Dec 2014 – Jan 2015).............. 74 Figure 9-2. Location of Spectral IP/Resistivity Survey lines. ...................................................................... 76 Figure 9-3. Results of the RES2DINV resistivity inversion on the Spectral IP dataset carried out by Abitibi Geophysics Inc. Viewed from South. .......................................................................................................... 77 Figure 9-4. Results of the RES2DINV chargeability inversion on the Spectral IP dataset carried out by Abitibi Geophysics Inc. Viewed from South. .......................................................................................................... 78 Figure 9-5. Total Magnetic Intensity of Wawa Ground Magnetic Survey (Oct 2015) ................................. 80 Figure 9-6. Max Min 50 m Tx-Rx separation. In-phase solid lines: 56 kHz (red), 28 kHz (pink), 14 kHz (brown), 7 kHz (cyan). Quadrature dashed lines: 56 kHz (blue), 28 kHz (maroon), 14 kHz (orange), 7 kHz (green). ........................................................................................................................................................ 82 Figure 9-7. Max Min 100 m Tx-Rx Separation. In-phase solid lines: 56 kHz (red), 28 kHz (pink), 14 kHz (brown), 7 kHz (cyan). Quadrature dashed lines: 56 kHz (blue), 28 kHz (maroon), 14 kHz (orange), 7 kHz (green). ........................................................................................................................................................ 83 Figure 9-8. Anomalies selected by ClearView Geophysics from 50 m Tx-Rx separation HLEM data. Total magnetic intensity data (Oct 2015) underlain. ............................................................................................ 85 Figure 9-9. Overview of the Heli-GT system. The three orthogonal magnetic gradients are measured on 3 m baselines (from Munro, 2015). ................................................................................................................ 87 Figure 9-10. Final total magnetic field grid .................................................................................................. 89 Figure 9-11. Calculated Vertical Gradient of Reduced to Pole Magnetic Grid ........................................... 90 Page | 6 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-12. Digital Terrain Model .............................................................................................................. 91 Figure 9-13. Structures noted on CVG results. ........................................................................................... 92 Figure 9-14: Map showing the locations of the grab samples collected by Red Pine in 2014. .................. 94 Figure 9-15: Locations of the rock grab samples collected in 2015. .......................................................... 97 Figure 9-16: Location of the channel samples collected in 2015. ............................................................... 99 Figure 10-1: Drill plan map showing the collar locations and traces of the 2014 and 2015 drill holes. .... 104 Figure 10-2: Drill collar location for SD-14-01 and SD-14-02. .................................................................. 105 Figure 10-3: Red Pine's core logging facility in Wawa. ............................................................................. 106 Figure 11-1: Secure core storage area next to Red Pine’s core logging facility in Wawa, Ontario. ......... 112 Figure 11-2: SG measurement at Red Pine's core logging facility. .......................................................... 114 Figure 12-1: Time series plots for blank samples and certified reference materials assayed by Actlabs between 2014 and 205 on the Surluga–Jubilee Gold Deposit.................................................................. 124 Figure 12-2: Bias charts and precision plots for field duplicates sampled by Red Pin and assayed by Actlabs comparing the original assay to the quarter core duplicate. ..................................................................... 125 Figure 12-3: Performance of standard Oreas 12a. Black triangles represent standard results. .............. 127 Figure 12-4: Performance of standard Oreas 19a. Black triangles represent standard results. .............. 127 Figure 12-5: Performance of standard Oreas205. Black triangles represent standard results. ............... 128 Figure 12-6: Performance of standard Oreas 202. Black triangles represent standard results. .............. 128 Figure 12-7: Entrance to the property. ...................................................................................................... 131 Figure 12-8: Historic collar. ....................................................................................................................... 132 Figure 12-9: Visible gold in drill hole HS-15-31, 73.00–74.00 m. ............................................................. 134 Figure 12-10: Photo of the collar location for HS-15-29 as verified during the February 2015 site visit. . 135 Figure 14-1: Oblique section looking northwest. ....................................................................................... 140 Figure 14-2: Sampling Length by Domains............................................................................................... 141 Figure 14-3: Specific Gravity ..................................................................................................................... 142 Figure 14-4: Basic Statistics – Domain 1 .................................................................................................. 143 Figure 14-5: Basic Statistics – Alteration Zone ......................................................................................... 144 Figure 14-6: Basic Statistics – Shear Zone............................................................................................... 145 Figure 14-7: Gold Correlograms for Domain 1.......................................................................................... 147 Figure 14-8: Validation of the Block Estimates for Domain 1 ................................................................... 150 Figure 14-9: Validation of the Block Estimates for the Alternation Domain .............................................. 151 Figure 14-10: Validation of the Block Estimates for the Shear Domain .................................................... 152 Figure 14-11: Validation of the Block Estimates for all Resource Domains Combined ............................ 153 Figure 14-12: Block Estimates Comparing Ordinary Kriging and Inverse Distance Estimation Results .. 154 Figure 15-1: Map showing the locations of adjacent mines and exploration projects. ............................. 160 Page | 7 Wawa Gold Project Ontario, Canada June 30, 2016 TABLES Table 1-1: Mineral Resource Statement*, Surluga-Jubilee Gold Deposit, Wawa Gold Project, Ontario, SRK Consulting (Canada) Inc., May 26, 2015 ............................................................................................ 13 Table 2-1: List of Qualified Persons for this report. .................................................................................... 14 Table 4-1: List of claims that are part of the Wawa Gold Project property. ................................................ 18 Table 6-1: Historic production data (from Rupert, 1997) ............................................................................ 29 Table 6-2: Historic surface diamond drill holes completed in the Wawa Gold Project area. ...................... 29 Table 6-3: Historic underground diamond drill holes completed in the Wawa Gold Project area. ............. 30 Table 6-4. Historic exploration of the Wawa Gold Project .......................................................................... 32 Table 6-5: Diamond drill holes completed by Cominco in 1963 and 1964. ................................................ 41 Table 6-6: Assay highlights of the Cominco drill holes. .............................................................................. 41 Table 6-7: Overview of Dunraine's drilling. ................................................................................................. 44 Table 6-8: Details of diamond drill holes completed by Van Ollie from 1989 to 1991. ............................... 48 Table 6-9: Assay highlights of holes drilled by Van Ollie between 1998 and 1990. Only raw assays >10 g/t Au are shown; weighted averages were not calculated.............................................................................. 50 Table 6-10: Collar locations and survey details of diamond drill holes completed by Wawa GP in 2007. . 54 Table 6-11: Selected assay highlights for Wawa GP's 2007 drilling program. ........................................... 54 Table 6-12: Collar locations and survey details of diamond drill holes completed by Augustine in 2011. . 55 Table 6-13: assay highlights for Augustine's 2011 drilling program. .......................................................... 56 Table 6-14: Assay highlights of the grab samples collected by Augustine in 2011. ................................... 59 Table 9-1. Features identified from Spectral IP/Res data by ClearView Geophysics Inc. Coordinates are listed in NAD83, UTM Zone 16N. ................................................................................................................ 75 Table 9-2. Parameters of the Ground Magnetic Survey: October 2015 ..................................................... 78 Table 9-3. HLEM survey parameters. ......................................................................................................... 81 Table 9-4. Interpreted anomalies of 50 m Tx-Rx separation survey. Selected by ClearView Geophysics Inc. .................................................................................................................................................................... 84 Table 9-5. Helicopter-borne gradient magnetic survey parameters ........................................................... 86 Table 9-6: List of samples collected by Red Pine in 2104. ......................................................................... 95 Table 9-7: Assay highlights of the 2015 grab samples. .............................................................................. 98 Table 9-8: Locations and orientations of the channels sampled in 2015.................................................. 100 Table 9-9: Assay highlights of the 2015 channel samples........................................................................ 101 Table 10-1: Details of Red Pine’s 2014 and early 2015 diamond drill holes. ........................................... 102 Page | 8 Wawa Gold Project Ontario, Canada June 30, 2016 Table 10-2: Details of Red Pine’s fall 2015 drilling program. .................................................................... 103 Table 10-3: Assay highlights for Red Pine's 2014 and spring 2015 drilling program. .............................. 107 Table 10-4: Assay highlights for Red Pine’s fall 2015 drilling program. ................................................... 108 Table 11-1: Standards used during the 2014 Red Pine drilling program.................................................. 113 Table 11-2: List of standards used during the fall 2015 drilling program. ................................................. 113 Table 11-3: Specifications of Control Samples Used By Red Pine (2014-2015)...................................... 116 Table 12-1: Assay Results for Verification Samples Collected by SRK on the Surluga–Jubilee gold deposit .................................................................................................................................................................. 120 Table 12-2: Summary of Analytical Quality Control Data Produced by Red Pine on the Surluga–Jubilee Gold Deposit ............................................................................................................................................. 122 Table 12-3: Check samples collected during the February 2016 site visit. .............................................. 129 Table 12-4: Sections of drill holes reviewed during the February 2016 site visit. ..................................... 133 Table 14-1: Basic statistics – gold ............................................................................................................ 141 Table 14-2: Gold Variogram Parameters for the Surluga–Jubilee gold deposit. ...................................... 147 Table 14-3: Surluga–Jubilee Deposit Block Model Specifications ............................................................ 148 Table 14-4: Summary of Estimation Parameters for all Resource Domains ............................................ 148 Table 14-5: Assumptions Considered for Reporting Cut-Off Grade Determination.................................. 156 Table 14-6: Mineral Resource Statement*, Surluga-Jubilee Gold Deposit, Wawa Gold Project, Ontario, SRK Consulting (Canada) Inc., May 26, 2015 .......................................................................................... 157 Table 14-7: Quantities and Grade Estimates – Pit Material...................................................................... 158 Table 14-8: Quantities and Grade Estimates – Underground Material ..................................................... 158 Table 18-1: Cost estimate for the recommended exploration program. ................................................... 165 APPENDICES Appendix 1 – Certificates of Qualified Persons Appendix 2 – List of Patented Tenures Appendix 3 – Independent Verification Samples Assay Certificates Page | 9 Wawa Gold Project Ontario, Canada June 30, 2016 1.0 SUMMARY Augustine Ventures Inc. (“Augustine”) commissioned Ronacher McKenzie Geoscience (“Ronacher McKenzie”) and SRK Consulting (Canada) Inc. (“SRK”) to complete an NI43-101 compliant technical report for Augustine’s Wawa Gold Project (“the property”) near Wawa, Ontario. Ronacher McKenzie and SRK had previously completed a report on the Wawa property for Red Pine Exploration Inc. (“Red Pine”) in June 2015. That report was updated with the latest exploration data. The resource published in the June 2015 report is still current and included in the present report. The resource estimate is based on extensive drilling in the area of the historic Surluga Mine (“Surluga”). The property is located two km east of the Town of Wawa, Ontario, and ~650 km northwest of Toronto. It consists of 205 patented tenures (fee simple absolutes and leases) totaling 2,198.74 ha and 34 unpatented mineral claims covering 2,985.43 ha. Augustine entered into an Assignment and Assumption agreement with Red Pine and Citabar Limited Partnership (“Citabar”) on December 10, 2014. Red Pine earned a 30% interest in the property by incurring a total of $2.1 million in “eligible exploration expenses” (see Section 4.0 below) by June 30, 2015. Red Pine can earn up to an additional 15% interest in the property by incurring a further $4 million in eligible exploration expenses by June 30, 2016 (see Section 4.0 for further details). On December 17, 2015, Augustine announced that Augustine entered into a non-binding letter of intent to merge with a wholly-owned subsidiary of Red Pine where Red Pine will acquire all of the outstanding securities of Augustine (the “Transaction”). The property is located in the Michipicoten greenstone belt of the Wawa Subprovince (Superior Province). The Michipicoten greenstone belt consists of three cycles of mafic and felsic metavolcanic rocks with associated subvolcanic intrusions and metasedimentary rocks (Sage, 1994). The Jubilee Lake Stock, which hosts the mineralization on the property, is the intrusive equivalent to the felsic portions of the two oldest cycles. It is located along a regional structure, the Wawa–Hawk Lake–Manitowik Lake Fault. The Jubilee Stock is fine- to medium-grained and locally porphyritic; it intruded into quartz-feldspar crystal tuff at 2.745 Ga. Intrusive breccia occurs at the margins of the stock. The Jubilee shear zone, which hosts the majority of the mineralization at the historic Surluga Mine, consists of a number of parallel, ~300–900 m long enechelon segments. It strikes northeast (018-034°) and dips 25-55° to the southeast. Its width ranges from 9 m to 60 m. Gold mineralization is spatially associated with the major shear zones on the property. It is finely disseminated in quartz veins, lenses and pods within shear and breccia zones in various rock types. Page | 10 Wawa Gold Project Ontario, Canada June 30, 2016 Recrystallized quartz and minor amounts of sulfides (pyrite, arsenopyrite, chalcopyrite) are also characteristic; strong silicification is typically associated with the mineralization. Extensive historic exploration was completed on the property. Drilling in the Wawa Gold Project area consisted of 561 surface diamond drill holes totaling 78,177.58 m and 1,522 underground diamond drill holes totaling 51,680 m. Eight past-producing mines exist on the property. A ground magnetic survey was conducted by Red Pine, the operator of the property, between 03 December 2014 and 26 January 2015. A total of 69.7 line-km were collected covering an area of 2.23 km². The ground magnetic survey outlined the strike of the Jubilee shear zone, which was expressed as a magnetic low striking approximately 015°. Areas of increased magnetization coincide with the Jubilee shear plane. Linear features oriented east–west are observed in the magnetic data. Red Pine contracted ClearView Geophysics Inc. (“ClearView”) to conduct Spectral Induced Polarization and Resistivity (“Spectral IP/Res”) surveys on the Surluga Property between 12 December 2014 and 16 December 2014. The objective of the survey was to determine if the Spectral IP/Res results could be used to enhance drill targeting for gold mineralization. The survey array geometry constituted a Pole-Dipole “Combo” array, whereby the dipole spacing (“a”) for n = 1-6 was a = 50 m, and for n= 7-8, a = 100 m. A total of four lines were surveyed covering 3.08 line-km. Three anomalous features were selected by ClearView from the survey results. Red Pine furthered the interpretation of the Spectral IP/Res by contracting Abitibi Geophysics Inc. (“Abitibi Geophysics”) to complete an inversion of the Spectral IP dataset using the RES2DINV inversion code developed by Geotomo Software Sdn. Bhd. The purpose of the inversion is to appropriately place the chargeability and apparent resistivity features at depth and relate them to the known Jubilee shear plane. The inversion results of both resistivity and chargeability reflect the easterly dip of the Jubilee shear zone, with higher resistivity values east and above the shear zone. A broad chargeability contrast is also associated with the shear zone. In October 2015, Red Pine contracted ClearView to complete a second ground magnetic survey at the Sunrise area, as identified by the 2015 Rock Sampling. The purpose of this work was to locate magnetic anomalies, as well as identify zones and trends to help guide gold exploration. A total of 12.3 line-km were collected at 20 m line spacing, covering an area of 0.17 km². The survey delineates several subtle ENE trending magnetic linear features, including one associated with the south-eastern arm of the Surluga grade shell. In October 2015, Red Pine also contracted ClearView to complete a ground horizontal loop electromagnetic (“HLEM”) on the Wawa Gold Project. The survey was completed using an Apex MaxMin system and is Page | 11 Wawa Gold Project Ontario, Canada June 30, 2016 often referred to as a “MaxMin” survey (“MaxMin”). The purpose of this work was to locate electromagnetic anomalies, as well as identifying zones and trends that help guide gold exploration. Two cable separations were recorded: 50 m and 100 m, in horizontal-coplanar orientation. The 50 m transmitter (“Tx”) to receiver (“Rx”) separation consisted of 6.3 line-km, covering 0.112 km² and the 100 m Tx-Rx separation consisted of 4.2 line-km, covering 0.052 km². Eleven anomalies were selected from the 50 m Tx-Rx separation based on the in-phase and quadrature responses. Red Pine contracted Scott Hogg & associates Ltd. (“Scott Hogg”) to fly a helicopter-towed gradient magnetic survey in February, 2015. A total of 928 line-km of data were collected, covering an area of 37 km2. Significant structures such as the Hornblende Shear, the Jubilee Shear, the Parkhill fault and the Darwin Shear could be identified from this survey data. Red Pine completed a rock sampling program in 2014 and another rock sampling program and channel sampling in 2015. Locally, several samples contained significant gold grades of up to 93 g/t Au. Red Pine completed drilling programs in December 2014 and from February to April 2015. A total of 5,594.5 m were drilled in 26 diamond drill holes. A total of 2,489 samples were assayed. Another drilling program was completed in October and November 2015. A total of 1,571.6 m were drilled in 13 diamond drill holes and 1,102 drill core samples were collected and assayed. SRK estimated a mineral resource based on information from 2,007 historical core boreholes (126,067 metres) drilled between 1960 and 1990, core drilled by Wawa GP Inc. in 2007 and 2011, and additional 26 core boreholes (5,594 metres) drilled by Red Pine in 2014 and 2015. SRK reported the tonnage and grade estimates at two cut-off grades: 0.4 and 2.5 g/t gold for pit and underground mineral resources, respectively (Table 1-1). This estimation was completed in conformity with CIM Mineral Resource and Mineral Reserves Estimation Best Practices Guidelines (November 2003). The blocks were classified according to CIM Standard Definition for Mineral Resources and Mineral Reserves (May 2014) guidelines. This estimation does not represent mineral reserves and has not demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves. The effective date of the tonnage and grade estimates is May 26, 2015. Page | 12 Wawa Gold Project Ontario, Canada June 30, 2016 Table 1-1: Mineral Resource Statement*, Surluga-Jubilee Gold Deposit, Wawa Gold Project, Ontario, SRK Consulting (Canada) Inc., May 26, 2015 Resource Category Inferred** Inside Pit Outside Pit Underground Total * Cut-off Gold (g/t) Quantity Grade (‘000 t) Gold (g/t) 0.40 0.40 2.50 0.50 10,239 8,630 955 19,824 2.05 1.07 3.73 1.71 Contained Metal Gold (‘000 oz) 676 298 114 1,088 Mineral resources are not mineral reserves and have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate. ** Pit mineral resources are reported at a cut-off grade of 0.40 g/t gold in relation with a conceptual pit shell constructed by SRK. Underground mineral resources include classified modelled blocks below the conceptual pit shell and above a cut-off grade of 2.50 g/t gold. Cut-off grades are based on a gold price of US$1,250 per once and a gold recovery of 95 percent. A personal inspection of the property was completed by Sébastien Bernier (SRK) and Elisabeth Ronacher (Ronacher McKenzie) on January 19 and 20, 2015. Bernier and Ronacher reviewed the logging and QC procedures, inspected current and historic diamond drill core and took 42 check samples from historic surface and underground holes and from a current drill hole at Red Pine’s secure core logging facility in Wawa. A second site visit was completed by Elisabeth Ronacher on February 17 and 18, 2016, to review core drilled in the fall of 2015. Based on the historic exploration and mining, the current exploration completed by Red Pine and Augustine and the resource estimate by SRK, Ronacher McKenzie conclude that potential exists to find additional gold mineralization on the property outside the Surluga–Jubilee area. Therefore, further exploration is warranted outside of the Surluga–Jubilee area. Ronacher McKenzie recommend expanding exploration from the Surluga–Jubilee area to the other areas of the property. In particular, a 3D compilation of all existing data and an integration of geological and geophysical data is recommended. In addition, a physical property survey of selected existing drill holes should be completed. The survey results should be integrated with the geological information available for the Surluga–Jubilee area and with the existing geophysical data available for the entire property. The purpose of the 3D model and the physical property survey is for Red Pine to be able to determine targets for ground truthing and further drilling. Additional drilling in the Hornblende Shear area is also recommended to determine the extent of potential mineralization in this zone. Page | 13 Wawa Gold Project Ontario, Canada June 30, 2016 2.0 INTRODUCTION Augustine Ventures Inc. (“Augustine”) commissioned Ronacher McKenzie Geoscience (“Ronacher McKenzie”) and SRK Consulting (Canada) Inc. (“SRK”) to update an NI 43-101 compliant technical report for Augustine’s Wawa Gold Project (“the property”) near Wawa, Ontario. The current report is based on a previous report issued to Red Pine Exploration Inc. (“Red Pine”) by the same authors and dated June 5, 2015 (Ronacher et al., 2015). SRK had completed a resource estimate based on extensive drilling in the area of the historic Surluga Mine (“Surluga”) that is a part of the Wawa Gold Project, data verification and a site visit for the original report. Ronacher McKenzie completed the technical report excluding sections 14 (Mineral Resource Estimates), sections 11.1 (Quality Control and Quality Assurance Program) and 12.1 (Data Verification by SRK). The purpose of the current report is to satisfy Augustine’s requirement to provide a prospectus for Augustine’s shareholders as part of the proposed merger of Red Pine and Augustine (Augustine News Release, December 17, 2015). The main source of information was Red Pine and Augustine; Red Pine provided a compilation of historic data including drill hole information and reports; additional historic information and geological literature was obtained from the public domain, dominantly the Ontario Geological Survey (“OGS”). The property was visited by Sébastien Bernier (SRK) and Elisabeth Ronacher (Ronacher McKenzie) on January 19 and 20, 2015. Bernier and Ronacher reviewed current and historic drill core, collected check samples from current and historic core, visited historic and current drill collars and shaft locations and discussed the project with Red Pine staff. In addition, Elisabeth Ronacher visited the property from February 16 to 18, 2016. During the second site visit, Ronacher reviewed drill core from the October/November 2015 drilling program. Table 2-1 lists the Qualified Persons who completed this report and the sections of the report for which they are responsible. Table 2-1: List of Qualified Persons for this report. Section Number Section Title 1.0 Summary 2.0 Introduction 3.0 Reliance on Other Experts 4.0 Property Description and Location Accessibility, Climate, Local Resources, Infrastructure 5.0 and Physiography 6.0 History Qualified Person(s) Ronacher, McKenzie, Bernier Ronacher, McKenzie, Bernier Ronacher, McKenzie Ronacher Ronacher Ronacher, McKenzie Page | 14 Wawa Gold Project Ontario, Canada June 30, 2016 Section Number 7.0 8.0 9.0 10.0 11.0 12.0 13.0 14.0 15.0 16.0 17.0 18.0 19.0 2.1 Section Title Geological Setting and Mineralization Deposit Types Exploration Drilling Sample Preparation, Analysis and Security Data Verification Mineral Processing and Metallurgical Testing Mineral Resource Estimates Adjacent Properties Other Relevant Data and Information Interpretation and Conclusions Recommendations References Qualified Person(s) Ronacher Ronacher McKenzie, Ronacher Ronacher Bernier, Ronacher, McKenzie Bernier, Ronacher, McKenzie na Bernier Ronacher Ronacher, McKenzie Ronacher, McKenzie, Bernier Ronacher, McKenzie, Bernier Ronacher, McKenzie, Bernier Terminology AAS: atomic absorption spectrometry Asl: above sea level Ga: billion years Lidar: Light Detection and Ranging; laser-based technology for determining digital terrain models MNDM: Ontario Ministry of Northern Development and Mines MNR: Ontario Ministry of Natural Resources RTK GPS: Real Time Kinematic Global Positioning System; provides centimeter-level accuracy location data. Sedar: System for Electronic Document Analysis and Retrieval; mandatory document filing and retrieving system for companies trading on Canadian stock exchanges administered by the Canadian Securities Administrators (www.sedar.com). 2.2 Units The metric system of measurement is used in this report. Historic data are typically reported in imperial units and were converted for this report using the following conversion factors: Page | 15 Wawa Gold Project Ontario, Canada June 30, 2016 1 ounce per (short) ton = 34.2857 grams/tonne 1 foot = 0.3048 metres 1 mile = 1.609344 kilometres 1 gamma (unit of magnetic field intensity) = 1 x 10-9 Tesla = 1 nanoTesla The following abbreviations are used in this report: m = metres, ft = foot, mi = mile, ha = hectare, nT = nanoTesla, g/t = grams/tonne, oz/t = ounce/short ton. Universal Transverse Mercator (UTM) coordinates are provided in the datum of NAD83, Zone 16N. 3.0 RELIANCE ON OTHER EXPERTS Ronacher McKenzie relied on information provided by Augustine and Red Pine regarding land tenure, property ownership and tax matters and did not conduct any independent investigations in these regards. Ronacher McKenzie did not verify the legality of any underlying agreements that may exist in relation to the Wawa Gold Project properties but have relied on Red Pine with regard to the information provided in Section 4.0 of this report. Red Pine and Augustine personnel communicated this information to Ronacher McKenzie via e-mail during the preparation of this report. Ronacher McKenzie relied on Augustine with regard to the closure plan of historic mines on the property as discussed in Section 4.2 of this report. The information presented in Section 4.2 was conveyed to Ronacher McKenzie by Dr. Robert Dodds, Augustine’s CEO, on March 21, 2016. 4.0 PROPERTY DESCRIPTION AND LOCATION The Wawa Gold Project is located two km east of the Town of Wawa, Ontario and ~650 km northwest of Toronto (Figure 4-1), dominantly in McMurray Township but straddles Naveau and Rabazo townships in the Sault Ste. Marie Mining Division (NTS 41/n14 and 42/C3). The property is centred on UTM NAD83 (Zone 16N) 669,800 m E and 5,315,000 m N. Legal access is available via Highway 101 from Wawa and the Surluga Mine Road, a private road owned and maintained by Citabar Limited Partnership (“Citabar”). Page | 16 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 4-1: Location of Red Pine’s Wawa Gold Project. Page | 17 Wawa Gold Project Ontario, Canada June 30, 2016 The property consists of 205 patented tenures (fee simple absolutes and leases; listed in Appendix 2) totaling 2,198.74 ha and 34 unpatented mineral claims consisting of 207 claim units covering 2,985.43 ha (Table 4-1, Figure 4-2, Figure 4-3). Augustine does not hold the surface rights of the unpatented mining claims. Surface rights holders of the dispositions are listed in Appendix 2. Table 4-1: List of claims that are part of the Wawa Gold Project property. Claim # Title Holder Expiry Area (ha) Township 4255705 Wawa GP/Augustine/Red Pine* 07-Mar-17 61.98 McMurray 4255706 Wawa GP/Augustine/Red Pine* 07-Mar-17 245.98 McMurray 4256983 Wawa GP/Augustine/Red Pine* 28-Mar-17 179.44 Naveau 4256977 Wawa GP/Augustine/Red Pine* 29-Mar-17 221.33 Naveau 4256971 Wawa GP/Augustine/Red Pine* 29-Mar-17 32.37 McMurray 4256979 Wawa GP/Augustine/Red Pine* 29-Mar-17 178.44 McMurray 4256980 Wawa GP/Augustine/Red Pine* 29-Mar-17 227.49 McMurray 4256976 Wawa GP/Augustine/Red Pine* 29-Mar-17 59.39 McMurray 4256972 Wawa GP/Augustine/Red Pine* 29-Mar-17 98.68 McMurray 4256974 Wawa GP/Augustine/Red Pine* 29-Mar-17 119.51 McMurray 4256975 Wawa GP/Augustine/Red Pine* 29-Mar-17 57.1 McMurray 1 1110152 Wawa GP/Augustine/Red Pine* 07-Jan-17 10.93 McMurray 4216050 Wawa GP/Augustine/Red Pine* 20-Jan-17 14.16 McMurray 4216347 Wawa GP/Augustine/Red Pine* 20-Jan-17 10.85 McMurray 4261061 Wawa GP/Augustine/Red Pine* 20-Jan-17 138.96 McMurray 4261063 Wawa GP/Augustine/Red Pine* 20-Jan-17 85.16 McMurray 4261060 Wawa GP/Augustine/Red Pine* 20-Jan-17 57.26 McMurray 4261059 Wawa GP/Augustine/Red Pine* 20-Jan-17 85.54 McMurray 4261062 Wawa GP/Augustine/Red Pine* 20-Jan-17 187.77 McMurray 4258713 Wawa GP/Augustine/Red Pine* 09-Feb-17 63.08 McMurray 4258711 Wawa GP/Augustine/Red Pine* 09-Feb-17 217.22 McMurray 4258712 Wawa GP/Augustine/Red Pine* 09-Feb-17 167.97 McMurray 4256981 Wawa GP/Augustine/Red Pine* 29-Mar-17 13.98 Rabazo 4256973 Wawa GP/Augustine/Red Pine* 29-Mar-17 28.53 McMurray 4256978 Wawa GP/Augustine/Red Pine* 29-Mar-17 11.53 McMurray 4278256 Wawa GP/Augustine/Red Pine* 15-Sep-17 49.97 McMurray 4270193 Wawa GP/Augustine/Red Pine* 10-Sep-17 8.16 McMurray 4270194 Wawa GP/Augustine/Red Pine* 10-Sep-17 18.79 McMurray 4270192 Wawa GP/Augustine/Red Pine* 25-Aug-17 53.12 McMurray 4278258 Wawa GP/Augustine/Red Pine* 02-Oct-17 67.78 McMurray Page | 18 Wawa Gold Project Ontario, Canada June 30, 2016 Claim # Title Holder Expiry Area (ha) Township 4278259 Wawa GP/Augustine/Red Pine* 02-Oct-17 70.91 McMurray 4278257 Wawa GP/Augustine/Red Pine* 02-Oct-17 50.07 McMurray 4271628 Wawa GP/Augustine/Red Pine* 29-Jun-17 90.75 McMurray 4271625 Wawa GP/Augustine/Red Pine* 29-Jun-17 1.23 McMurray 34 TOTAL 2985.43 Notes: *Wawa GP Inc. (40%), Augustine Ventures Inc. (30%), Red Pine Exploration Inc. (30%) Red Pine does not hold the surface rights for the unpatented mining claims. Surface rights are held by the Crown, various Townships and Municipalities and private individuals. Red Pine does not hold timber rights for unpatented mining claims. In order to renew unpatented minerals claims in Ontario, a total of $400 has to be spent on each claim unit per year. 1 This claim is part of the closure plan Page | 19 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 4-2: Map showing the patented and unpatented mining claims of Red Pine’s Wawa Gold project. Page | 20 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 4-3: Map showing the patented mining claims of the Wawa Gold project. Page | 21 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 4-4: Map showing the location and the extent of the geological wireframe used to calculate the mineral resource (in yellow). Page | 22 Wawa Gold Project Ontario, Canada June 30, 2016 4.1 Ownership On December 17, 2015, Augustine announced that it entered into a non-binding letter of intent to merge with a wholly-owned subsidiary of Red Pine where Red Pine will acquire all of the outstanding securities of Augustine (the “Transaction”). At the time of the completion of this report, Augustine and Red Pine each held a 30% interest in the Wawa Gold Project. Upon completion of the Transaction, Augustine and Red Pine will form a combined entity (“the Resulting Issuer”). On December 11, 2014, Red Pine announced in a press release available on the company’s website and under its profile on www.SEDAR.com that it had entered into an assignment and assumption agreement (the “Assumption Agreement”) with Augustine Ventures Inc. (“Augustine”) and Citabar effective December 10, 2014. Pursuant to the Assumption Agreement, Augustine and Citabar agreed to amend the existing Surluga property option agreement, as amended (the “Option Agreement”), between Citadel and Delta Precious Metals (Ontario) Inc. (“Delta”), among others, dated April 16, 2009 (Delta having assigned all of its rights and obligations under the Option Agreement to Augustine effective September 10, 2010), to allow Red Pine to earn up to a 45% interest in the Wawa Gold Project property. Under the Assumption Agreement, Red Pine: must incur a total of $2.1 million in “eligible exploration expenses” (within the meaning of such term in the Assumption Agreement) by June 30, 2015, upon which Red Pine and Augustine will together have incurred a total of $4 million in such expenses as Augustine has previously incurred $1.9 million in such expenses. Upon fulfilling this obligation, Red Pine and Augustine will have each earned a 30% interest in the Wawa Gold Project with Citabar holding the remaining 40%; has the right to earn half of an additional 15% interest (or, for greater clarity, an additional 7.5% interest for a total of 37.5%) in the Wawa Gold Project if Red Pine and Augustine incur a further $4.0 million in eligible exploration expenses by June 30, 2016, which could be increased up to the entire 15% additional interest (for a total of a 45% interest) if all such additional $4.0 million in eligible exploration expenses is incurred by Red Pine; has the right to earn a 50% interest in Augustine’s existing interests in all mineral properties acquired by Augustine, including any future acquisitions, within an area of influence of a 5 km radius from the perimeter of the Wawa Gold Project. These “area of influence properties” are also subject to the Assignment Agreement, with Citabar having the right to earn its pro rata interest therein; upon earning a minimum 30% interest in the Wawa Gold Project, a joint venture among Red Pine, Augustine and Citabar in the form included in the Option Agreement (as restated by the Assumption Page | 23 Wawa Gold Project Ontario, Canada June 30, 2016 Agreement) will automatically come into effect (the “JV Agreement”) pursuant to which Red Pine will be the Manager (within the meaning of such term in the JV Agreement) of the Wawa Gold Project. Red Pine incurred a total of $2.1 million in “eligible exploration expense” (within the meaning of such term in the Assignment and Assumption Agreement”) upon which Red Pine and Augustine together incurred a total of $4 million in such expenses as Augustine had previously incurred $1.9 million in such expenses. Upon fulfilling of this obligation, Red Pine and Augustine each earned in a 30% interest in the Wawa Gold Project with Citabar holding the remaining 40%, all in accordance with an Earn in Agreement signed by all parties on August 7, 2015. The Assignment Agreement and the Option Agreement and all amendments thereto are available under Red Pine’s profile on www.SEDAR.com and the summary of these agreements herein is qualified in its entirety by the full text of these agreements. The reader is encouraged to refer to the agreements for further details. Net smelter returns (“NSR”) are payable to the parties indicated in Appendix 2 and as set out in the Option Agreement and the Assumption Agreement. Red Pine has advised that the annual municipal tax for 2015 relating to the fee simple absolute surface rights of the properties listed in Appendix 2 was approximately $106,000. Of this, there is a balance of approximately $50,000 still owing to the Municipality of Wawa. The Municipal taxes for three of the leases with surface rights are billed indirectly through the Ministry of Natural Resources (“MNR”) as Land Rents for an additional amount of approximately $16,000 annually. Municipal taxes can also be subject to annual increases of up to 3%. The actual 2016 municipal tax billing will not be issued until later in 2016. The total annual rent payments, payable to the MNDM, for the 17 leased properties listed in Appendix 2 is approximately $2,400 per year. All 17 accounts are in good standing with $0 owing. The annual taxes for the 2016 mineral rights on the fee simple absolute properties listed in Appendix 2 are approximately $5,500 and are also payable to the MNDM. Any obligations to the MNDM typically do not change year over year without a change in rights, area or the Mining Act. All obligations are currently in good standing with 0$ owing in arrears. Red Pine holds timber rights for some areas as indicated in Appendix 2. Ronacher McKenzie is not aware of any royalties, back-in rights, payments or other agreements and encumbrances to which the property is subject other the ones mentioned above and in the Option Agreement and the Assumption Agreement. Page | 24 Wawa Gold Project Ontario, Canada June 30, 2016 4.2 Environmental Liabilities Citadel is in the process of completing a mine closure plan. All patented mining claims for which mining rights are held are part of the closure plan. The closure plan is being conducted by “exp” consultants from their Thunder Bay, Ontario, office. A large part of the closure plan has been completed. The following summarizes the status of the closure plan work: A Progressive Rehabilitation Report was submitted by “exp” to MNDM on March 31, 2016 confirming that all the required closure plan work has been completed with the following exceptions: i. Backfilling of two small test pits on the south shore of Wawa Lake due to the mild, winter which prevented access to the lake. This work will be completed in the summer of 2016 or the winter of 2016-2017; ii. Completion of a Crown Pillar Study. “exp” proposed to MNDM in a letter on March 31, 2016 to conduct a geotechnical investigation of all available information and prepare a confirmation drilling program for any missing information, if required, all subject to approval by MNDM as the final field work. A Sediment Toxicity Report for the Grace-Darwin Tailings was submitted by “exp” to MNDM on January 8, 2016; the report concludes that elevated mercury levels are a result of historical activities and are not attributable to Citabar’s activities; however, “exp” recommends that the monitoring continue for another three years at a reduced number of locations. Financial Assurance of $315,000 in the form of a Letter of Credit from Sherfam Inc. on behalf of Citabar LLC remains in effect. 4.3 Permits In Ontario, permits are generally required for exploration on unpatented mineral claims or leases. Exploration activities such as geophysical activities requiring a power generator, line cutting where the line width is less than 1.5 m, mechanized drilling where the total weight of the rig is less than 150 kg, mechanized surface stripping where the total stripped area is less than 100 m2, or pitting and trenching of a volume of 1 to 3 m3 on unpatented mineral claims or leases require an exploration plan. Exploration permits are required for line cutting where the line width exceeds 1.5 m, for drilling where the weight of the drill exceeds 150 kg, mechanized stripping of an area greater than 100 m2 and for pitting and trenching where the total volume of rock is more than 3 m3. Plan and permit applications are submitted to the Ministry Page | 25 Wawa Gold Project Ontario, Canada June 30, 2016 of Northern Development and Mines for review, posting on the Environmental Registry (30 days) and circulation to First Nations communities who have areas of cultural significance. Plans are typically approved within 30 days and permits within 60 days. Plans are valid for two years and permits are valid for three years (www.mndm.gov.on.ca). Generally, no exploration plans or permits are required for fee simple absolute patents or for areas that are part of a closure plan. All surface rights holders must be notified of the application in advance of the submission. As of the effective date of this Report, exploration permit PR-15-10721 for mechanized drilling, mechanized stripping, pitting and trenching of bedrock, and line cutting and exploration plan PL15-10485 for line cutting, drilling, stripping and geophysics were obtained for 31 of the 34 unpatented mineral claims. The permit is valid until August 27, 2018; the plan is valid until August 6, 2017. Exploration PR16-10809 for mechanized drilling, mechanized stripping, and pitting and trenching of bedrock, and exploration plan PL16-10561 for line cutting, drilling, stripping and geophysics were obtained for two additional claims (4271628, 4271625). This permit is valid until April 7, 2019 and the plan is valid until March 19, 2018. The remaining claim 1110152 is part of the closure plan and no permit or plan are required. Ronacher McKenzie is not aware of any other significant factors or risks that may affect the access, title or the right or ability to perform work on the property. 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY 5.1 Access The Town of Wawa is located on Highway 17 (Trans-Canada Highway), ~480 km east of Thunder Bay, Ontario, ~225 km north of Sault St. Marie, Ontario, and ~650 km northwest of Toronto, Ontario. The property can be accessed by driving 2 km on Highway 101 from Wawa and then turning south onto a gravel road using a 2-wheel drive vehicle. During the winter months, the main access road to the property from Highway 101 is ploughed. Areas off the main road can be accessed by snowmobiles. 5.2 Climate The vicinity to Lake Superior has a significant impact on the climate on the property. Environment Canada has recorded weather details in Wawa since 1981 (http://climate.weather.gc.ca) and showed that the Page | 26 Wawa Gold Project Ontario, Canada June 30, 2016 warmest temperatures are recorded in July and August (daily average 15° C; daily maximum 20.8° C). The coldest temperatures are typically recorded in January (daily average −14° C; daily minimum −20.2° C). September and October are the months with the most rainfall (~122 and ~107 mm, respectively) and the highest snowfall occurs in December (80 cm). Exploration can be completed on the property year-round. 5.3 Physiography and Vegetation The Town of Wawa is located at 289 m asl. The area of the property is hilly with a range of elevations from 300 m to 400 m asl. Steep ridges exist locally. The property is forested with spruce, pine, poplar and birch being the dominant species. 5.4 Infrastructure and Local Resources Skilled and unskilled labour is available in Wawa because of the long mining history of the area. Wawa has a population of 2,634 persons (www.statcan.gc.ca). A 230 kV power line crosses the southern part of the property and a second power line crosses the western part of the property (Figure 5-1). An airport exists in Wawa but no commercial flights are operated from it. Algoma Central Railway was acquired by Canadian National Railways and no longer operates freight service between Sault Ste. Marie and Hearst. Sufficient water is available from lakes and streams on the property. Surface rights for a large part of the property are held by Augustine’s joint venture partners (see Appendix 2) and are sufficient for any potential mining operation. Tailings storage areas, potential waste disposal areas, heap leach pad areas and potential processing plant sites are not relevant to the project at this stage. Page | 27 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 5-1: Map showing the access to property and the infrastructure in the area. Page | 28 Wawa Gold Project Ontario, Canada June 30, 2016 6.0 HISTORY The Wawa area has been explored for gold since the 1860s (Rupert, 1997) and gold was first discovered by William Teddy in 1897 (Frey, 1987). A staking rush followed the change in claim staking adopted by the Ontario Government to encourage staking in 1895 (MacMillan and Rupert, 1990). The staking rush resulted in a number of discoveries and the first mine to start production was the Grace Mine (1901). In the 1930s, several mines commenced production, including the Parkhill, Minto and Jubilee Mines (MacMillan and Rupert, 1990). By the early 1940s, 15 mines produced gold in the Wawa area (Frey, 1987). The Surluga Mine was developed in the late 1960s. Eight past-producing mines exist on the current Wawa Gold Project property (Cooper, Minto, Jubilee, Surluga, Parkhill, Grace-Darwin, Mariposa and Van Sickle; Figure 6-1). Rupert (1997) summarized the production from these mines based on historic records (Table 6-1) and also provides a detailed overview of historic exploration. Table 6-1: Historic production data (from Rupert, 1997) Mine Company Mariposa Grace-Darwin Parkhill Jubilee Minto Van Sickle Cooper Surluga Mariposa Gold Mines Ltd. 5 companies Park Hill Gold Mines Ltd. Cooper Gold Mines Ltd., Minto Gold Mines Ltd. Minto Gold Mines Ltd Canfield and Smith Minto Gold Mines Ltd Surluga Gold Mines Ltd., Citadel Gold Mines Inc. Years 1904 1902–1937 1929–1938 1929–1939 Tonnes Milled 8 41,302 114,096 107,930 Gold Grade (g/t) 72.99 13.27 14.81 4.29 Gold Recovered (kg) 0.6 548.5 1,688.9 463.9 1930–1934 1935–1936 1938 1968–1991 57,335 8,372 4,435 86,082 12.56 6.34 11.42 3.12 661.4 53.2 50.6 268.3 419,560 9.04 3,735.4 Extensive historic exploration was completed on the property. Drilling in the Wawa Gold Project area consisted of 561 surface diamond drill holes totaling 78,177.58 m and 1,522 underground diamond drill holes totaling 51,680 m (Red Pine database, 2014; Table 6-2, Table 6-3, Figure 6-1). Table 6-2: Historic surface diamond drill holes completed in the Wawa Gold Project area. Company Year Drilled No of DDH Meterage (m) Con Mine Smelt 1934 15 1,474.03 Surluga 1960 8 744.27 Surluga 1961 17 2,135.93 Surluga 1962 51 5,975.98 Surluga 1963 13 2,092.62 Cominco 1964 20 2,633.03 Surluga 1965 3 308.01 Page | 29 Wawa Gold Project Ontario, Canada June 30, 2016 Company Surluga Surluga Pango Dunraine Dunraine Dunraine Dunraine Citadel Citadel Citadel Van Ollie Van Ollie Van Ollie Wawa GP Inc. Augustine Morrison Surluga TOTAL Year Drilled 1968 1969 1969 1980 1981 1982 1983 1987 1988 1989 1989 1990 1991 2007 2011 ? ? No of DDH 16 13 43 35 19 8 11 100 30 51 31 34 6 14 18 3 2 561 Meterage (m) 1,673.31 2,874.61 6,811.11 3,268.83 1,462.88 410.57 1,626.12 18,089.94 4,879.91 6,812.36 1,445.88 1,447.22 195.76 8,410.20 2,944.00 306.63 154.38 78,177.58 Table 6-3: Historic underground diamond drill holes completed in the Wawa Gold Project area. Company Year No of DDH Meterage (m) Surluga 1967 9 243.63 Surluga 1968 261 8,276.04 Surluga 1969 57 1,183.72 Pango 1969 309 10,654.07 Pango 1970 100 3,596.02 Pursides 1974 31 787.21 Pursides 1975 170 4,216.69 Surluga 1975 1 6.10 Citadel 1987 396 12,430.34 Citadel 1988 9 669.95 Citadel 1989 55 3,205.27 Log Missing ? 47 1,748.61 TOTAL 1,445 47,017.65 Iron ore deposits and past-producing mines exist in the Wawa area. Diamonds and diamond indicator minerals were found in the area in 1993 (Sutherland, 1995). Since then, extensive exploration for diamonds and diamond indicator minerals has occurred. A brief summary of relevant historic exploration is provided in Table 6-4 and below. Only historic exploration for gold is summarized; exploration for diamonds and iron ore was not reviewed for this report. Page | 30 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 6-1: Locations of known diamond drill holes on the property. Page | 31 Wawa Gold Project Ontario, Canada June 30, 2016 Table 6-4. Historic exploration of the Wawa Gold Project Company Year(s) Exploration Results Stanley 1903 Sampling, geological Several Au-bearing veins located; Newton assessment conclusions "Michipicoten gold Syndicate district will become one of the important gold camps of America" Anglo 26 surface diamond No results reported 1926– Huronian Ltd. drill holes and 1929 And Cooper underground Gold Mines development at Jubilee Mine Parkhill Gold 1930– Operated Parkhill Bankruptcy in 1937 Mines 1937 mine Mackay Point Syndicate 1933/34 Minto Gold Mines Sandra Gold Mines 1934– 1939 1944 Surluga Gold Mines 1962 Cominco 1963 Surluga Gold Mines 1967 Surluga Gold Mines 1964– 1968 Metallurgical testing, 15 ddh Up to 17 g/t Au over 0.3 m in core Jubilee Mine operated Took over Parkhill Mine area from Parkhill Gold Mines Surluga Gold Mines Incorporated; 100 surface ddh Optioned property; mapping; geophysics (no specific method mentioned); 20 diamond drill holes Surluga mine brought into production, diamond drilling from 1960 to 1969 3 shafts sunk, levels 1, 2, 3 and 5 developed Reference Boss, 1903 (41N15NE0039) Rupert, 1997 41N15NE0087 (Amalgamation of several reports) Mackey Point Syndicate, 1933 (42C02SE0021) Rupert, 1997 May, 1944 (41N15NE0087) Mine construction started Geophysics inconclusive; VG in one drill hole Kuryliw, 1970 & 1972 (41N15NE0036) Morris, 1964 (42C02SE9043) Mine operated from 1968 to 1969; drilling intersected numerous goldrich zones Surluga Gold Mines Annual Report (41N15NE0063) Kuryliw, 1972 (41N15NE0036) Kuryliw, 1969 (41N15NW0037) Page | 32 Wawa Gold Project Ontario, Canada June 30, 2016 Company Pango Gold Mines Ltd. Year(s) 19691970 Exploration JV with Surluga Gold Mines: expansion of underground workings, underground drilling; detailed surface mapping. Ground mag survey 1 Ground mag survey 2 JDS Bohme Property 1970 Ground mag survey Pango Gold Mines Ltd. 1971 Ground mag survey; 1 ddh on north shore of Reed Lake into mag anomaly Surluga Gold Mines (under the name of Pursides 1973 Mine reopened; new drifting on the 6th level, decline between 6th and 7th level; Results New drifts and adits; "good" grades returned from ddh (no assay data available) Ground mag survey 1: Oct-Nov 1969. Line spacing 400 ft (=121.92 m), Tie spacing 2000 ft (=609.60 m). An inclined gabbro plug East of Jubilee Lake containing disseminated pentlanditechalcopyrite-pyrrhotite mineralization was found to have highly magnetic pyrrhotitepentlandite but the gabbroic rock itself was found to have low magnetics, notable lower than the biotitic syenite intruded by the gabbro. A 1000 gamma (=1000 nT) anomaly was identified and noted to be associated with disseminated pentlandite-pyrrhotite mineralization in the gabbro, east of Jubilee Lake. The unmineralized gabbro was noted to have a flat magnetic response. Additional magnetic anomalies are noted to be associated with peridotite plugs, and are considered to be part of the Pango intrusive complex. Ground mag survey 2: April-July 1970. 74.82 line-miles (=120.41 line-km) at 400 ft (=121.92 m) line spacing, 3000 ft (=914.40 m) tie lines, and 100 ft (=30.48 m) station spacing. July 1970, 6.3 line-miles (=10.14 line-km) of ground mag completed at 100 ft (=30.48 m) stations. Magnetic flat response, indicating a uniform suite of rocks. One 2000 gamma (=2000 nT) anomaly was noted, adjacent to a carbonatite plug Survey completed at 400 ft (=121.92 m) line spacing. Only magnetic linear anomalies noted, Interpreted to be gabbroic intrusive dykes Ground mag survey: 100 ft (=30.48 m) intervals. Anomaly found recommended for follow up Drilling: ultramafic rock with magnetite, minor sulfides, no gold Resources delineated based on drilling Reference Kuryliw, 1972 (41N15NE0036) Kuryliw, 1969 (41N15NW0037) Tindale, 1970a (42C02SE0208) Tindale, 1970b (41N15NE0008) Kuryliw, 1970 (41N15NE0516) Kuryliw, 1971a (41N15NE9035)Kur yliw, 1971b (41N15NE0088) 41N15NE0036 (Amalgamation of reports. p. 79) Page | 33 Wawa Gold Project Ontario, Canada June 30, 2016 Company Gold Mines Ltd.) Consolidated Morrison Explorations Ltd Pursides Gold Mines Golden Goose Gold Mines Ltd. Dunraine Mines Ltd. Year(s) Exploration underground diamond drilling Results Reference 1974 Airborne magnetic and radiometric survey (Aerodat) Mag and radiometric anomaly related to carbonatite Boyko, 1974 (42C02SE1210) 19741975 VLF-EM survey VLF-EM: Summer 1974, winter 1975. 8 anomalies detected, 1 recommended for follow-up Crone, 1975 (41N15NE0082) 1978 Acquires Deep Lake Mine 1980 Golden Goose Gold Mines Ltd. 1980 38 surface drill holes (3385.1 m); sampling of Parkhill tailings (235 samples) 35 channel samples of surface expression of Deep Lake Mine Ground mag survey VLF-EM survey Pango Gold Mines Ltd. 1980 Ground mag survey Dunraine Mines Ltd. 1981 Northern Horizon Resources Ltd. Dunraine Mines Ltd. 1981 20 surface drill holes (4919.7 m); dewatering of Parkhill mine Ground mag survey Pango Gold Mines Ltd. 1982 8 surface drill holes (410.6 m); continued dewatering of Parkhill 1982 VLF-EM survey 1 (April 19-21, 1982) VLF-EM survey 2 (April-May 1982) Rupert, 1990 (41N15NE9036) Best intersection in D80-18: 46.22 g/t Au over 0.88 m; average grade of Parkhill tailings 0.86 g/t Harper, 1981a (41N15NE0054) Below detection limit to 0.91 g/t (average: 0.31 g/t Au); Rupert (1980a) concluded that no economic potential exists at the mine. Ground mag and VLF-EM: no significant anomalies noted Two structural/lithologic features identified: 1. east-west trend related to metavolcanic rocks, 2. northwestsoutheast trend related to diabase dyke. Two oval shaped anomalies identified, mapped as gabbroicdiorite intrusives Best intersection in D81-2: 34.97 g/t Au over 0.15 m Rupert, 1980a (41N15NE9036) Rupert, 1980b (41N15NE0078) 300 ft (=91.44 m) line spacing. One horseshoe-shaped magnetic anomaly identified, interpreted as possible folded structure Best intersection in D82-4: 7.61 g/t Au over 1.5 m VLF-EM survey 1: 3 conductors identified, two recommended for drilling VLF-EM survey 2: 10 conductive anomalies identified, thought to be caused by bedrock sources; IP recommended as follow-up tool for prioritization Kuryliw, 1980 (41N15NE0077) Piaza, 1984 (41N15NW0026) Harper, 1981b (41N15NE0061) Kuryliw, 1981 (41N15NE0524) Harper, 1982 (41N15NE0061) Gignac, 1983 (41N15NE0055) Kuryliw, 1982 (41N15NE0057) Piaza, 1984 (41N15NW0026) Page | 34 Wawa Gold Project Ontario, Canada June 30, 2016 Company Canbec Explorations Ltd. Year(s) 1983 Exploration Ground mag survey (May 1983) VLF-EM survey (MayJune 1983) Dunraine Mines Ltd. 1983 Mapping, drilling (6 ddh; 738.2 m): 83-1 to -6; rock samplingVLFEM Survey Northern Horizon Resources Ltd. 1983 Dighem III FDEM Pango Gold Mines Ltd. 1984 Till sampling: 47 overburden holes Results Ground mag survey: 5.9 line miles (=9.50 line-km) were run at 200 ft (=60.96 m) and 400 ft (=121.92 m) line spacing, with station spacing of 50 ft (=15.24 m) over 3 claims. Results showed weak overall magnetic signature, with anomalies identified as diabase dykes and felsic volcanic flow unit. VLF-EM survey: 5.9 line miles (=9.50 line-km) at 200 ft (=60.96 m) and 400 ft (=121.92 m) line spacing and 100 ft (=30.48 m) station spacing. One anomaly noted, trending north-south and in strike with the Darwin Shear. Noise related to the power line was noted. Outlined shear-zone hosting Au; proposed syngenetic genesis; 0.9– 1.8 m of 3.4 g/t in 3 ddh; geochem survey indicated Au only near Darwin shear VLF-EM survey: Phase 1 covered the Darwin EW grid extending from Moody Pit to the Darwin Shear. Phase 2 covered southern half of Darwin Shear. The northern half of the Darwin Shear was not able to be surveyed due to remanence of the power and telephone lines; 5 conductors were found in the vicinity of the Darwin Mine; The Darwin Shear was noted to be a conductive structure, and areas where east-west striking conductors intersect the structure were considered prospective. Geochemical surveys were recommended for follow-up April 1-4, 1983, 298 line-km and 300 m line spacing, 30 m EM sensor height, 45 m mag sensor height. 20 anomalies identified as moderate-high priority Anomalous zones near faults and shears identified but no economic significance attributed to anomalies Reference Archibald, 1983a (41N15NW0029) Archibald, 1983b (41N15NW0029) Studemeister, 1983 (41N15NE0041) Smith and Dvorak, 1983 (42C02SE0505) Gillis, 1984 (41N15NW0027) Page | 35 Wawa Gold Project Ontario, Canada June 30, 2016 Company Monte Christo Resources Year(s) 1984 Exploration Ground mag survey VLF-EM Survey Geologic mapping EM-17 HLEM 3 ddh targeting conductors (W-1, -2, 2A, -3) Dunraine Mines Ltd. Goldun Age Resources Inc. 1984 5 surface drill holes (887.9 m) Ground mag and gradiometer survey Dewatering and review of underground workings Caviar Resources 1986 1986 Ground mag survey VLF-EM survey Mapping, prospecting, sampling between Reed Lake and Leroy Lake Results Ground mag and VLF-EM survey: Completed on 11 claims in Feb 1984 and April 1984. A total of 18.7 line-miles (=30.06 line-km) of mag data and 16 line-miles (=25.75 linekm) of VLF-EM data were collected. One large conductive anomaly was found to be high priority and recommended for drill testing with three drill holes Geologic mapping: shear zones identified during mapping EM-17 HLEM: July 1984. 6 linemiles (=9.66 line-km) collected at 300 ft (=91.44 m) coil separation, as a follow-up survey on the conductors identified by the VLF survey. Weak HLEM conductors were noted in the same trend, interpreted as a possible shear zone, and were recommended for drilling Drilling: one ddh intersected shear zone with "consistent anomalous gold values", two were abandoned 10.29 g/t Au over 0.3 m Ground mag and gradiometer: May 30-June 12, 1986. 0.94 line-km on one claim of ground magnetic data and gradiometer (vertical total field magnetic gradient). Gradiometer sensor spacing is 1 m. 84 stations surveyed. No significant results interpreted due to small size of survey, recommendation to increase survey area Dewatering and review: investigation concluded that Au is left in pillars, floors and backs of stopes (in particular above first level, little minable material left below third level Ground mag and VLF-EM: Jan-Feb, 1986. 24.12 line-miles (=38.82 linekm) of ground mag and VLF at 300 ft (=91.44 m) line spacing and 100 ft (=30.48 m) station spacing. Infill lines were at 100 ft (=30.48 m) line spacing. Magnetic data was collected at 50 ft (=15.24 m) station spacing. 8 conductive anomalies were identified as high-priority targetsMapping, prospecting, sampling: NW trending, Au-bearing vein delineated (up to 16.80 g/t Au) Reference Kuryliw, 1984a (41N15NE0048) Kuryliw, 1984b (41N15NE0064) Studemeister, 1984 (41N15NE0046) Gignac, 1986 (41N15NE0034) Tilsley, 1986 (41N15NE9041) Sears, 1986a (41N15NE0035) Sears, 1986b (41N15NE0505) Page | 36 Wawa Gold Project Ontario, Canada June 30, 2016 Company Citadel Gold Mines Year(s) 1986 Exploration Surluga mine dewatered; underground development; surface and underground drilling Dighem III Survey Terraquest airborne mag VLF-EM survey Robert Henderson 1986 Citadel Gold Mines 1987 Mill refurbished; mapping/sampling on Henderson property (SE McMurray Twp.) Allied Northern Resources Ltd. 1988 Mapping, rock sampling Ground mag VLF-EM survey 1 Ground mag VLF-EM survey 2 Ground mag VLF-EM survey 3 Citadel Gold Mines Citadel Gold Mines 1988 Ore recovery studies 1988 Structural studies Results Drilling: Intersected 20.42 m at 3.74 g/t Au Dighem III: 454 line-km flown with Dighem III FDEM in October 1986. Several discrete bedrock conductors identified and recommended for follow-up work. Terraquest fixed-wing airborne magnetic and VLF-EM survey flown July 22, 1986. 100 line-km at 200 m line spacing and 100 m terrain clearance. Several structural and conductive anomalies were located and recommended for follow-up surveying Mineralization independent of host rock but structurally controlled (140°–160°, 010°–060°) Mapping, rock sampling: six rock types observed and described; various quartz veins observed (no assay results available) Ground mag, VLF-EM survey 1: Aug 12-Sept 17, 1988. 19.25 linekm of ground mag and VLF-EM collected. Ground mag station spacing = 25 m. Magnetic results highlight diabase dykes and geologic contacts. VLF-EM results identified 2 high-priority conductors Ground mag, VLF-EM survey 2: Aug 12-Dec 10, 1988. A total of 50.85 line-km of ground mag and VLF-EM were conducted on 31 claims at 120 m line spacing. No significant anomalies were identified. Ground mag, VLF-EM survey 3: Aug 15-Nov 10, 1988. 11.75 line-km collected at 120 m line spacing. One conductor was recommended for follow-up Cyanidation recovered 90% of the gold, floatation 86% Gold-bearing quartz veins predate shearing along Jubilee Zone Reference Rupert, 1997 Kilty, 1986 (42C02SE0504) Barrie, 1986 (41N15NE0033) Osmani, 1987 (41N15NW0028) Sears and Gasparetto, 1988 (41N15NE0027) Sears, 1989 (41N15NW0021) Sears and Gasparetto, 1989 (41N15NW0022) Lakefield Research, 1988 Helmstaedt, 1988 Page | 37 Wawa Gold Project Ontario, Canada June 30, 2016 Company Citadel Gold Mines Year(s) 1988 Exploration Exploratory underground development; sampling in Surluga mine; trenching and sampling; trenching Ground mag survey 1 IP survey 1 Ground mag survey 2 Ground mag survey 3 Allied Northern Resources Ltd. Citadel Gold Mines 1989 Mapping 1989 Surluga mine closed due to inadequate reserves Mapping, soil and rock sampling, 6 drill holes (AN-90-1 to 6) Allied Northern Resources Ltd. 1990 Van Ollie Exploration Ltd. 1990 Mapping, soil geochemistry, drilling Ground mag and VLFEM survey Pan-Orvana (option agreement with Citadel) Pan-Orvana (option 1990 Soil sampling, review of historical data; sampling of underground workings Detailed data review 1991– 1992 Results Two different shear zones identified during drifting; Darwin and Root veins found by strippingGround mag survey 1: Summer 1988 on Block B to establish base data for future mapping. IP survey 1: JVX contracted to complete test surveys of pole-dipole and gradient array methods in time-domain IP mode. Results found the shear zone was not distinguishable from background Ground mag survey 2: June-July 1988. Targeted follow-up of anomalies on Block C. Line spacing 400 ft (=121.92 m). Several magnetic anomalies were identified. Ground mag survey 3: Dec 1988 Mar 1989. Ground magnetic survey conducted at 400 ft (=121.92 m) line spacing to improve resolution of airborne magnetic anomaly. The anomaly was interpreted as iron formation. Mapping: four target areas delineated Reference Rupert and Leroy, 1989 (42C02SE0220) Rupert, 1989a (41N15NE0023) Rupert, 1989b (41N15NE0021) Sears, 1989 (41N15NW0021) Rupert, 1997 3 vein systems located, several weak soil anomalies; drilling intersected the Villeneuve vein Mapping, soil geochemistry, drilling: more Au anomalies in soil over intrusive rocks than volcanic rocks; down dip of Mickelson vein system confirmed Mag, VLF-EM: Jan 11-Feb 4, 1990. 41.1 line-km of magnetic data and 38.1 line-km of VLF-EM data collected. Several magnetic and conductive anomalies were identified from the respected surveys and recommended for follow-up work. Au anomaly over the shear zone; sampling revealed "considerable variability" in gold content of the shear zone Sufficient low-grade resources available but not suitable for open Sears, 1990b (41N15NE0014) Sears, 1990c (41N15NE0013) Sears, 1990e (41N15NE0025) Sears, 1990a (41N15NE0011) Sears, 1990d (41N15NE0016) Reid, 1990 (41N15NE0011) Bradshaw, 1991 (42C02SE0518) Bradshaw, 1991 (42C02SE0518) Page | 38 Wawa Gold Project Ontario, Canada June 30, 2016 Company agreement with Citadel) Year(s) Exploration Results pit mining because of the high strip ratio Reference Citadel Gold Mines 1990 Prospecting, mapping, reinterpretation of geophysical surveys, trenching; mapping in Deep Lake area Rupert, 1990 (42C02SE0500) Reed, 1990 (42C02SE0500, p. 27) 1991 6 ddh (195.76 m) on Sunrise #1 vein (S-910 to -6) 6 ddh (789 m), ground geophysics Delineate areas for further exploration, geophysics deemed of "marginal utility" but soil sampling effective; anomalous Au grades in Deep Lake area but economic questionable (best results 0.41 g/t Au) Best assays between 1.23 and 4.87 g/t Au but no intervals reported Van Ollie Exploration Ltd. Tri Origin (option agreement with Citadel) Transgold Exploration and Investment Inc. Delisle, 1991 (41N15NE0069) Best Au assay: 609 ppb over 1.3 m Gow, 2004 No significant Au results in 1994; weak B-horizon soil anomaly (57 ppb) All ground geophysics conducted between July September, 1995, on a 100 m linespaced grid. VLF-EM: 25 m station spacing, HLEM: 25 m station spacing, Ground mag: 12.5 m station spacing. Several anomalies were identified from these surveys and displayed on related maps. VLF-EM: Oct 1995. Line spacing 100 m, station spacing 25 m. One conductive anomaly was identified. Ground mag survey: Oct 1996. Line spacing 60 m, station spacing 30 m. 2 anomalies identified as highpriority for follow-up VLF-EM: Oct 1996. 12.2 line-km collected, 100 m line spacing, 25 m station spacing. 3 anomalies identified as possible shear zones, recommended for follow-up Ground mag survey: Oct 1996. 12.2 line-km. Anomalies identified related to Firesand Carbonatite Complex Till sampling: 1997-1998. goldbearing vein averaging 8.7 g/t Au located in southern and northern parts of McMurray Twp IP test survey on weak VLF-EM anomalies. Time domain IP survey. Dipole-dipole array, a spacing = 25 m, N = 1-3. Three chargeable features were identified and recommended for follow-up No conductors; best Au assay: 442 ppb Drost, 1994 (41N15NE0004) Drost, 1995 (41N15NE0029) 2000 1994/1995 Mapping, sampling (1994); VLF-EM surveyHLEM surveyGround mag surveyProspecting, rock/soil sampling (1995) in Leroy Lake area Lawrence Melnick 19951996 VLF-EM survey Ground mag survey Elliot Feder 19961998 VLF-EM survey Ground mag survey Till sampling Transgold Exploration and Investment Inc. 1998 IP survey John Leadbetter 1998– 2000 Beepmat survey Prospecting and Archibald, 1996b (42C02SE0026) Archibald, 1996a (42C02SE0022) Thomas, 1997a (42C02SE2001) Thomas, 1997b (42C02SE2002) Archibald, 1998 (42C02SE2003) Anderson, 1998 (41N15NE2002) Leadbetter, 1998 (41N15NE2003) Page | 39 Wawa Gold Project Ontario, Canada June 30, 2016 Company Year(s) Exploration sampling near Deep Lake Results Reference Leadbetter, 2000 (41N15NE1005) 3814793 Canada Inc. P.MousseauL. 2004 Ground mag survey VLF-EM survey Archibald, 2004 (42C02SE2014) Augustine Ventures Inc. 2007– 2012 Diamond drilling: 8,401 m in 2007; 2,944 m (18 ddh) in 2011; helicopter EM Between Oct 15, 2003 and July 18, 2004: Ground mag survey: 62.2 line-km. 25 m and 50 m line spacing, 15 m station spacing. Ground magnetic results have been used to further delineate airborne anomalies and outcrops. VLF-EM survey: 24.5 line-km, 50 m line spacing, 15 m station spacing. Anomalies identified were interpreted to be associated with fault and shear systems. Resource estimated based on drilling (see text) VTEM: Jan 2011. 412 line-km of VTEM data, 100 m line spacing. Magnetic-conductive features noted in survey coincide with the Parkhill fault. Six conductive anomalies were identified as potential followup targets. 6.1 Duke, 2012 (WGM NI43-101 compliant report) Surluga Gold Mines Ltd. – 1962–1975 Surluga Gold Mines was incorporated in 1962 (Kuryliw, 1972). Between 1964 and 1968, three shafts were sunk to 290 m and Levels 1, 2, 3 and 5 were developed at 50 m, 88 m, 12.5 m and 204 m respectively. Underground diamond drilling traced the ore zone for a length of 457 m (Kuryliw, 1972).The Surluga gold mine was brought into production in 1967 and the mill construction started (Surluga Gold Mines Annual Report 1997). In that year, underground development advanced by 2,465 m on seven levels. Between 1960 and 1969, Surluga Gold Mines drilled 120 diamond drill holes from the surface and 328 underground drill holes. Production stopped in 1969. In 1973, Surluga Gold Mines, under the name of Pursides Gold Mines Ltd., reopened the mine and operated it until 1975 (41N15NE0036, p. 79) 6.2 Cominco – 1963/64 Cominco optioned the property in 1963 (Morris, 1964) and completed a mapping and geophysical surveys. The geophysical survey did not produce any meaningful results. Cominco also drilled 20 diamond drill holes totaling 2633 m in 1963/64 (Table 6-5). Selected assay highlights are listed in Table 6-6. Page | 40 Wawa Gold Project Ontario, Canada June 30, 2016 Table 6-5: Diamond drill holes completed by Cominco in 1963 and 1964. Hole # Year Easting Northing Elevation (m) Azimuth S090 1963 667753 5315781 346 S091 1964 667830 5315935 364 S092 1964 667907 5316059 367 S093 1964 667895 5316194 347 S094 1964 668082 5316345 371 S095 1964 667979 5316257 375 S096 1964 668134 5317530 330 S097 1964 667990 5317373 337 S098 1964 668527 5317742 319 S099 1964 668627 5317962 305 S100 1964 668706 5318177 330 S101 1964 668205 5317778 318 S102 1964 668335 5318131 311 S103 1964 668732 5318419 304 S104 1964 668998 5319129 287 S105 1964 669285 5319044 308 S106 1964 669005 5319442 287 S107 1964 669046 5319053 318 S108 1964 668895 5318739 337 S109 1964 668352 5316413 372 TOTAL 20 Table 6-6: Assay highlights of the Cominco drill holes. Hole # From (m) To (m) Interval (m) S090 37.49 38.25 0.76 S090 35.05 35.51 0.46 S092 49.83 50.90 1.07 S094 62.64 63.55 0.91 S094 63.55 64.47 0.92 S094 74.68 75.29 0.61 S107 86.87 87.48 0.61 S109 191.11 191.72 0.61 S109 220.07 221.44 1.37 (°) Dip (°) Length (m) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 −90 64.31 73.76 85.95 92.97 102.11 93.57 128.02 117.96 103.33 120.09 178.31 132.59 114.3 97.84 207.27 66.14 396.24 95.86 117.04 245.37 2,633.03 Au (g/t) 6.17 5.14 12.69 16.49 4.80 4.80 16.46 19.89 7.54 6.1 Pango Gold Mines Ltd. – 1969–1970, 1980-1984 Pango Gold Mines (“Pango”) entered into a joint-venture agreement with Surluga Gold Mines in 1969 and completed a successful exploration program from 1969 to 1970. Pango delineated “sizeable” tonnage of “good grade” in the Jubilee zone by drilling on the 5th and 6th levels (Kuryliw, 1972). Geological mapping Page | 41 Wawa Gold Project Ontario, Canada June 30, 2016 was completed in 1969 (Kuryliw, 1969). Nevertheless, any additional work was suspended because further financing could not be secured. In June 1969, the Surluga mine closed down in spite of encouraging drill hole intersections on the 6th level. A ground magnetic survey was conducted in August-September, 1969, by Kirkland Lake based contractor, George Potter (Kuryliw, 1969). Grid lines were designed at 400 ft (=121.92 m) line-spacing and 2000 ft (609.6 m) tie-spacing. An inclined gabbro plug East of Jubilee Lake containing disseminated pentlanditechalcopyrite-pyrrhotite mineralization was found to have highly magnetic pyrrhotite-pentlandite but the gabbroic rock itself was found to have low magnetics, notable lower than the biotitic syenite intruded by the gabbro. A 1000 gamma (=1000 nT) anomaly was identified and noted to be associated with disseminated pentlandite-pyrrhotite mineralization in the gabbro, east of Jubilee Lake. The unmineralized gabbro was noted to have a flat magnetic response. Additional magnetic anomalies are noted to be associated with peridotite plugs, and are considered to be part of the Pango intrusive complex. (Kuryliw, 1969). In OctoberNovember, 1969, J. Cureatz conducted a ground magnetic survey on the Property under the supervision of Kuryliw (Kuryliw, 1970 C). A magnetic-high anomaly was located and noted to be associated with disseminated pentlandite-chalcopyrite-pyrrhotite mineralization in the gabbro east of Jubilee Lake. Several other isolated magnetic anomalies were identified (Kuryliw, 1970 C). A strong magnetic response over the Eastern portion of the Firesand carbonatite was noted (Kuryliw, 1970 C). From April-June, 1970, 74.82 line-miles (=120.41 line-km) of ground magnetic data were collected at 100 ft (=30.48 m) intervals on a 400 ft (=121.92 m) line-spaced grid with 3000 ft (=914.40 m) tie line spacing. The work was completed y behalf of Pango by Carl Huston (Tindale, 1970a). The magnetic response was noted to be relatively quiet, and interpreted to be caused by uniform bedrock units. One 2000 gamma (=2000 nT) anomaly was noted and was interpreted to be related to a nearby Firesand River carbonatite. In July 1970, 6.3 line-miles (=10.14 line-km) of ground magnetics were completed at 100 ft (=30.48 m) intervals on behalf of Pango by Carl Huston (Tindale, 1970b). The higher magnetic intensity features identified on the survey were interpreted to be gabbro intrusive. A large portion of this reading is noted to be adjacent to the Firesand carbonatite. Further geological mapping was recommended to determine the cause of these magnetic anomalies (Tindale, 1970b). In 1971, a ground magnetic survey was conducted at 100 ft intervals and high priority magnetic anomalies were identified (Kuryliw, 1971a). Pango drilled one diamond drill hole (1971#1) on the north shore of Reed Lake to test a magnetic anomaly. The anomaly was explained by magnetite-bearing peridotite with minor sulfides and no gold (Kuryliw, 1971b). Page | 42 Wawa Gold Project Ontario, Canada June 30, 2016 Pango conducted a ground magnetic survey in March-April 1980 (Kuryliw, 1980, Piaza, 1984). Two major structural and lithologic trends were identified: the first being a series of east-west trends correlated to metavolcanic rocks, with the more mafic portions being related to areas of high magnetization; and the second identifying a major northwest-southeast trend, reflecting a linear diabase dykes. Two oval shaped magnetic anomalies were identified and noted to be coincident with mapped gabbroic-diorite intrusive (Piaza, 1984). In April 19-21, 1982, Pango conducted an Electromagnetic Very Low Frequency (“VLF-EM”) survey on five claims (Kuryliw, 1982). The survey was carried out on East-West picket lines at 100 ft (=30.48 m) station intervals. Three conductors were located, two of which were recommended for drilling. Also in April-May 1982, Pango conducted an Electromagnetic Very Low Frequency (“VLF-EM”) survey 14 additional claims. Ten conductive anomalies were identified for follow-up, with recommendation to conduct inducedpolarization to help prioritize targets (Piaza, 1984). In 1984, Pango completed an overburden drilling program consisting of 47 holes on their Ward Lake property between Ward Lake and Highway 17 in McMurray Township (Gillis, 1984). Although zones anomalous in Au near faults and shear zones were delineated no economic significance was attributed to these zones. 6.2 J.D.S Bohme Properties – 1970 A ground magnetic was completed in November 1969 on the J.D.S. Bohme property, at 400 ft (=121.92 m) line-spacing (Kuryliw, 1970a). Only magnetic linear features were noted and were interpreted to be caused by gabbroic basic intrusive dykes (Kuryliw, 1970a). 6.3 Consolidated Morrison Explorations Limited – 1974 In August 1974, Consolidated Morrison Explorations Ltd (“Consolidated Morrison”) flew an airborne magnetic and radiometric survey with Aerodat Ltd (Boyko, 1974). The survey results are related to the carbonatite complex and no new anomalies were identified. 6.4 Pursides Gold Mine – 1974-1975 In summer 1974 and winter 1975, a VLF-EM survey was carried out for Pursides Gold Mines (Crone, 1975). Eight anomalies were identified, with one anomaly of interest and recommended for follow-up. Page | 43 Wawa Gold Project Ontario, Canada June 30, 2016 6.5 Canbec Explorations Ltd. – 1983 In May 1983, Canbec Exploration Ltd. (“Canbec”) completed 5.9 line-miles (=9.50 line-km) of ground magnetic surveying at 200 ft (=60.96 m) and 400 ft (=121.92 m) line spacing, with station spacing of 50 ft (=15.24 m) over 3 claims (Archibald, 1983 A). The purpose of the survey was to delineate geological structure related to the north-south trending quartz rich shears. The results showed weak overall magnetic signature, with anomalies identified as either diabase dykes or a felsic volcanic flow unit (Archibald, 1983a). In May-June 1983, Canbec completed 5.9 line-miles (=9.50 line-km) of VLF-EM surveying at 200 ft (=60.96 m) and 400 ft (=121.92 m) line spacing, with station spacing of 100 ft (=30.48 m) over 3 claims (Archibald, 1983b). One conductive anomaly was noted, trending north-south and in strike with the Darwin Shear. Noise was noted throughout the survey due to nearby power lines (Archibald, 1983b). 6.6 Dunraine Mines Ltd. – 1980–1984 Dunraine Mines Ltd. (“Dunraine”) acquired the Parkhill, Darwin (Grace) and Van Sickle mine areas between 1979 and 1980 (Harper, 1981). Dunraine completed diamond drilling programs in five consecutive years (Table 6-7) (Studemeister, 1983, 1984). Table 6-7: Overview of Dunraine's drilling. Year No of Holes Total Metres 1980 38 3,385.10 1981 20 4,919.70 1982 8 410.60 1983 6 738.20 1984 5 887.90 TOTAL 77 10341.50 Best Intersection 46.22 g/t Au over 0.88 m 34.97 g/t Au over 0.15 m 7.61 g/t Au over 1. 5 m 5.96 g/t Au over 1.5 m 10.29 g/t Au over 0.3 m During the 1980 drilling program, 15 drill holes intersected 21 gold-bearing quartz veins. The purpose of the last two drilling programs was to test the continuity of the Grace horizon. The 1982 drilling program focused on the extension of the Grace vein (Gignac, 1983); one hole was drilled on the Darwin Shear zone to test the extension of the Surluga deposit. Gignac (1983) concluded that the Darwin shear zone warrant further work. Dunraine sampled the Parkhill tailings in 1980; a total of 235 samples were collected and an average gold grade of the tailings of 0.86 g/t Au was determined (Harper, 1981a). Harper (1981a) states that the grade of most samples ranges from 0.51 g/t Au to 1.20 g/t Au. Page | 44 Wawa Gold Project Ontario, Canada June 30, 2016 In 1981, Dunraine started dewatering the Parkhill mine and systematically mapping the underground workings (Harper, 1981b). Underground drilling was also continued. Drilling continued until 1984. In 1983, a VLF-EM survey was undertaken on the Dunraine claims in two phases (Studemeister, 1983). The first phase was completed in the vicinity of the Darwin Mine, extending from the Moody Pit to the Darwin Shear. The phase of surveying identified five anomalies for follow-up. The second phase covered the southern half of the Darwin Shear. It was reported that the northern half of the Darwin shear was unable to be surveyed due to remanence effects of local power and telephone lines (Studemeister, 1983). This phase noted that the Darwin shear was a conductive structure, and that any east-west striking conductors intersecting the Darwin shear were considered prospective. Anomalies were recommended for follow-up geochemical surveying (Studemeister, 1983). 6.7 Northern Horizon Resources Ltd. – 1981, 1983 A ground magnetic survey was completed at 300 ft (=91.44 m) intervals for Northern Horizon Resources Ltd. (“Northern Horizon”) (Kuryliw, 1981). One horseshoe-shaped anomaly was identified for follow-up as a possible folded structure. From April 1-4, 1983, Northern Horizon flew 298 line-km of Dighem III frequency-domain electromagnetic data, which included magnetic data collection (Smith and Dvorak, 1983). The line spacing was 300 m, EM sensor height was 30 m, and magnetic sensor height was 45 m. In total, twenty anomalies were identified as moderate-high priority (Smith and Dvorak, 1983). 6.8 Monte Christo Resources – 1984 In February and April, 1984, Monte Christo Resources (“Monte Christo”) conducted a ground magnetic survey and VLF-EM survey on 11 claims (Kuryliw, 1984). A total of 18.7 line-miles (=30.06 line-km) of magnetic data was collected and 16 line-miles (=25.75 line-km) of VLF-EM data was collected. One large conductive anomaly was identified and recommended for drill testing by three drill holes (Kuryliw, 1984). Kuryliw (1984c) completed a mapping program on Monte Christo’s property in 1984 and identified several silicified shear zones. He concluded that diamond drilling in the area of the shear zone is warranted. Three diamond drill holes (W-1, -2 and -3) were completed on the property in 1984 and a quartz-carbonate altered shear zone with anomalous gold intersected (Kuryliw, 1984d). Page | 45 Wawa Gold Project Ontario, Canada June 30, 2016 In July 1984, Monte Christo collected 6 line-miles (=9.66 line-km) of EM-17 horizontal loop electromagnetic (“HLEM”) over the high priority targets identified by the VLF-EM survey (Kuryliw, 1984b). The results of the HLEM survey were interpreted to be weak HLEM conductors coincident with the trend of the conductors identified in the VLF-EM survey and were interpreted to be possible shear zones. These conductors were recommended for drilling (Kuryliw, 1984b). 6.9 Citadel Gold Mines Inc. – 1982–2006 Between 1982 and 1986, Citadel Gold Mines Inc. (“Citadel”) consolidated various properties from previous owners into one land package. In 1986, the Surluga mine was dewatered and a limited underground program started (Rupert, 1997). Drilling discovered an intersection of 0.109 oz/t (3.74 g/t Au) over 67’ (20.42 m) near the junction of the Sunrise vein system and the Jubilee Shear Zone (Rupert, 1997). In October, 1986, 454 line-km of Dighem III FDEM data was flown on the Citadel property (Kilty, 1986). Several discrete bedrock conductors were identified from the survey and recommended for follow-up work (Kilty, 1986). In 1987, Citadel Gold Mines (“Citadel”) optioned the Henderson property east of Leroy Lake in the southeast corner of McMurray Township and Osmani (1987) mapped the property and concluded that the mineralization was independent of rock-type and structurally controlled. He recommended further exploration including geophysical surveys, mapping and prospecting on the property. In 1988, Citadel purchased the Parkhill and Grace Mine properties (MacMillan and Rupert, 1990). In the same year, Citadel commissioned a study of the structural setting of the Surluga deposit (Helmstaedt, 1988). Helmstaedt (1988) concluded that the quartz-gold veins predate the ductile shear movement along the Jubilee Shear Zone. Also in 1988, Citadel completed exploratory underground drifting which identified two different shear zones in the south part of the Surluga mine (Rupert and Leroy, 1989). Trenching and sampling delineated the Darwin, Root and Fat veins. A ground magnetic survey was conducted in the summer of 1988 on Block B to act as a base dataset for future mapping (Rupert and Leroy, 1989). Citadel contracted JVX to complete a test IP survey in pole-dipole and gradient array time-domain methods. The survey results were unable to distinguish the shear zone from the background data (Rupert and Leroy, 1989). Citadel commissioned an ore recovery study including gravity concentration by various means, floatation and cyanidation (Lakefield Research, 1988). Cyanidation recovered ~90% of the gold, sulfide flotation ~86%. Gravity concentration using the Knelson Concentrator was unsuccessful but upgrading gravity with a Mozley Mineral Separator recovered +20% of contained gold. Page | 46 Wawa Gold Project Ontario, Canada June 30, 2016 In June-July 1988, Citadel conducted a ground magnetic survey to target follow-up anomalies located in Block C (Rupert, 1989a). Line spacing was 400 ft (=121.92 m). Several magnetic anomalies were identified (Rupert, 1989a). Between December 1988 and March 1989, Citadel conducted a ground magnetic survey at 400 ft (=121.92 m) line spacing to improve the resolution of an airborne magnetic anomaly identified under Deep Lake (Rupert, 1989b). The author interpreted the anomaly to be caused by iron formation (Rupert, 1989b). The Surluga Mine was closed in 1989 but exploration continued until 1997 (Rupert, 1997). In 1990, Citadel delineated soil anomalies in the Deep Lake area (Rupert, 1990). In 1996, Citadel drilled two diamond drill holes totaling 294 m under Deep Lake (assessment report 41N15NE0037). Assay results were not reported. 6.10 Caviar Resources Ltd. – 1986 In January-February, 1986, Caviar Resources Ltd. (“Caviar Resources”) conducted a ground magnetic and VLF-EM survey covering 24.12 line-miles (=38.82 line-km). The main grid had a line spacing of 300 ft (=91.44 m) and infill spacing of 100 ft (=30.48 m). The magnetic station spacing was 50 ft (=15.24 m) and VLF-EM station spacing was 100 ft (=30.48 m). Eight conductive anomalies were identified as high-priority targets and were recommended for follow-up work (Sears, 1986a). 6.11 Goldun Age Resources Inc. – 1986 Goldun Age Resources Inc. (“Goldun Age”) entered into an option agreement with Dunraine in 1986 and continued the dewatering of the underground workings on the Parkhill property that Dunraine had started. The underground workings were mapped, sampled and evaluated. Tilsley (1986) concluded that gold was left in pillars, floors and backs of stopes, in particular above the 1st level but that little minable material was left below the 3rd level. He reports that broken material and material washed from the stopes had grades similar to the ones reported from the stopes with the exception of material from the Mill Vein on 3rd level which had grades up to 3 ounces per ton (102.86 g/t Au; average grade 24 g/t Au; Tilsley, 1986). Tilsley (1986) also concluded that the mined lenses would not extend up dip to the property boundary and that there are no undiscovered lenses. From May 30-June 12, 1986, Goldun Age completed a ground magnetic and vertical total field magnetic gradiometer survey on one claim (Gignac, 1986). The survey consisted of 0.94 line-km. The gradiometer Page | 47 Wawa Gold Project Ontario, Canada June 30, 2016 vertical sensor spacing was 1 m. A total of 84 stations were surveyed. No significant results were noted due to the small size of the survey, and the author recommended increasing the survey size (Gignac, 1986). 6.12 Mr. Robert Henderson – 1986 On July 22, 1986, Mr. Robert Henderson (“Mr. Henderson”) contracted Terraquest Ltd. (“Terraquest”) to fly 100 line-km of fixed-wing airborne magnetic and VLF- EM data (Barrie, 1986). The line spacing was 200 m and mean terrain clearance was 100 m. Several structural and conductive anomalies were identified in the survey data and recommended for follow-up surveying (Barrie, 1986). 6.13 Van Ollie Explorations Ltd. – 1989–1991 In 1990, Van Ollie Explorations Ltd. (“Van Ollie”) completed a geological (mapping, rock and soil sampling) and geophysical (magnetic, VLF-EM) survey on their claims in McMurray Township immediately west of Deep Lake (Sears, 1990a) (Reid, 1990). A total of 41.1 line-km of ground magnetic data was collected and 38.1 line-km of VLF-EM data was collected (Reid, 1990). Several magnetic and conductive anomalies were identified from the respective surveys for follow-up exploration work. Several veins, including the Van Sickle Vein, Captain Vein and Road Vein, were stripped. Mapping, prospecting and rock sampling delineated several targets that correspond with zones of soil and geophysical anomalies. The Van Sickle vein system was traced for 200 m and Sears (1990a) concluded it was the extension of the Park Hill vein system. Van Ollie drilled 31 diamond drilling programs totaling 1,445.88 m in 1989, 34 diamond drill holes totaling 1,447.22 m in 1990 and 6 diamond drill holes totaling 195.76 m in 1991 (Table 6-8, Table 6-9). The drilling targeted the Van Sickle, Mickelson and Captain Veins. In 1991, Van Ollie drilled six diamond drill holes totaling 195.76 m at the Sunrise No. 1 Vein (Delisle, 1991). Best assay results ranged from 1.23 g/t Au to 4.87 g/t Au, however, the intervals for these grades were not reported in Delisle (1991). Table 6-8: Details of diamond drill holes completed by Van Ollie from 1989 to 1991. Hole # Year Easting Northing Elevation (m) Depth (m) VO-89-01 1989 669040 5314847 348 36.58 VO-89-02 1989 669040 5314842 347 38.71 VO-89-03 1989 669040 5314837 347 48.77 VO-89-04 1989 669040 5314817 348 55.17 VO-89-05 1989 669040 5314801 347 103.63 VO-89-06 1989 669040 5314780 346 81.99 Dip (°) −88 −85 −85 −85 −85 −85 Azimuth (°) 360 360 360 360 360 360 Page | 48 Wawa Gold Project Ontario, Canada June 30, 2016 Hole # VO-89-07 VO-89-08 VO-89-09 VO-89-10 VO-89-11 VO-89-12 VO-89-13 VO-89-14 VO-89-15 VO-89-16 VO-89-17 VO-89-18 VO-89-19 VO-89-20 VO-89-21 VO-89-22 VO-89-23 VO-89-24 VO-89-25 VO-89-26 VO-89-27 VO-89-28 VO-89-29 VO-89-30 VO-89-31 VO-90-32 VO-90-33 VO-90-34 VO-90-35 VO-90-36 VO-90-37 VO-90-38 VO-90-39 VO-90-40 VO-90-41 VO-90-42 VO-90-43 VO-90-44 VO-90-45 VO-90-46 VO-90-47 VO-90-48 VO-90-49 VO-90-50 VO-90-51 VO-90-52 VO-90-53 VO-90-54 Year 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1989 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 Easting 669040 669034 669034 668883 669070 668900 669070 669030 669030 668990 668951 668990 668931 668965 668930 668964 668931 668880 668880 668947 668947 668868 668945 668947 668980 668980 668978 668978 668868 668978 669010 668914 669010 669060 669060 669070 668914 669080 669080 669080 668914 669105 669105 669040 668900 668950 668951 668951 Northing 5314853 5314901 5314897 5315714 5314825 5315746 5314801 5314837 5314821 5314827 5315730 5314828 5315732 5314794 5315732 5314794 5315733 5315744 5315744 5314814 5314813 5315739 5314813 5314812 5314826 5314825 5314826 5314825 5315739 5314827 5314827 5315741 5314827 5314821 5314820 5314826 5315741 5314829 5314829 5314828 5315742 5314833 5314833 5314807 5315746 5315735 5315735 5315735 Elevation (m) 347 343 344 354 345 349 347 348 347 346 351 346 353 342 353 342 353 351 351 341 341 352 341 341 344 344 343 343 352 343 350 351 350 345 345 345 351 345 345 345 351 341 341 347 349 352 351 351 Depth (m) 36.88 60.96 65.29 48.16 42.67 91.44 48.46 17.68 36.88 44.65 60.35 35.05 42.67 56.39 36.88 57.91 46.03 42.67 70.41 30.48 24.08 30.48 21.34 24.08 9.14 21.79 18.29 24.69 48.01 43.59 28.96 45.87 22.25 24.69 27.74 24.38 58.37 21.34 21.34 27.74 65.53 24.38 27.74 45.11 45.42 49.68 49.38 52.43 Dip (°) −85 −45 −75 −45 −85 −45 −85 −85 −85 −85 −45 −45 −45 −45 −45 −45 −70 −45 −70 −45 −65 −45 −45 −70 −45 −85 −45 −70 −75 −45 −60 −45 −85 −45 −85 −45 −60 −45 −60 −85 −75 −55 −85 −85 −62 −60 −47 −59 Azimuth (°) 360 360 360 360 360 180 360 360 360 360 180 360 180 360 210 320 210 180 150 360 360 180 315 315 360 360 360 360 180 240 360 180 360 360 360 360 180 360 360 360 180 360 360 360 180 180 152 152 Page | 49 Wawa Gold Project Ontario, Canada June 30, 2016 Hole # VO-90-55 VO-90-56 VO-90-57 VO-90-58 VO-90-59 VO-90-60 VO-90-61 VO-90-62 VO-90-63 VO-90-64 VO-90-65 VO-S-91-1 VO-S-91-2 VO-S-91-3 VO-S-91-4 VO-S-91-5 VO-S-91-6 TOTAL Year 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1990 1991 1991 1991 1991 1991 1991 Easting 668951 668854 668854 668837 668837 668811 668811 668791 668985 668985 669004 668962 668932 668814 668909 668909 668962 Northing 5315736 5315735 5315735 5315738 5315738 5315745 5315746 5315758 5315746 5315747 5315749 5315800 5315806 5315804 5315806 5315806 5315800 Elevation (m) 351 353 353 355 355 358 358 362 348 348 348 347 349 361 352 352 347 Depth (m) 67.67 76.81 43.89 28.04 49.07 44.20 77.42 46.63 64.31 65.23 65.23 36.00 21.70 34.13 29.26 25.66 49.01 3088.86 Dip (°) −85 −45 −60 −60 −45 −45 −60 −45 −45 −60 −45 −45 −45 −70 −45 −75 −65 Azimuth (°) 152 180 180 195 195 180 180 180 180 180 180 180 180 180 180 180 180 Table 6-9: Assay highlights of holes drilled by Van Ollie between 1998 and 1990. Only raw assays >10 g/t Au are shown; weighted averages were not calculated. Hole # From (m) To (m) Interval (m) Au (g/t) VO-89-01 1.83 2.19 0.36 142.42 VO-89-01 1.22 1.52 0.3 44.91 VO-89-01 2.49 2.8 0.31 17.55 VO-89-02 6.76 6.91 0.15 38.19 VO-89-04 27.74 27.91 0.17 34.9 VO-89-10 45.54 45.62 0.08 11.86 VO-89-12 28.65 28.93 0.28 10.08 VO-89-14 2.97 3.15 0.18 57.12 VO-89-14 5.31 5.54 0.23 32.57 VO-89-14 5.87 6.1 0.23 14.67 VO-89-23 31.55 31.85 0.3 75.43 VO-89-23 30.23 30.3 0.07 41.73 VO-89-24 16.74 17.22 0.48 81.63 VO-90-39 10.62 10.72 0.1 109.89 VO-90-43 34.31 34.44 0.13 28.77 VO-90-45 12.32 12.75 0.43 14.64 VO-90-50 32.74 32.92 0.18 20.95 VO-90-51 29.41 30.48 1.07 46.87 VO-90-51 28.19 29.41 1.22 29.01 VO-90-53 37.85 38 0.15 53.55 VO-90-63 13.01 13.14 0.13 23.55 VO-S-91-6 8.73 8.93 0.2 14.71 Page | 50 Wawa Gold Project Ontario, Canada June 30, 2016 The area explored by Van Ollie was traditionally called the “Van Sickle Claims” as they were held by the Van Sickle Estate. Citadel consolidated the area of the Van Sickle Claims with its holdings in 1997 (Red Pine Option Agreement, December 10, 2014 as filed on sedar.com under Red Pine Exploration Inc.). 6.14 Allied Northern Resources – 1988–1990 In 1988, Allied Northern Resources completed a geological (mapping and sampling) and geophysical (magnetics and VLF-EM) survey (Sears and Gasparetto, 1988). Several quartz veins were found. Assay data are not available. From August 12 – September 17, 1988, Allied Northern Resources completed 19.25 line-km of ground magnetic and VLF-EM surveying (Sears and Gasparetto, 1988). The ground magnetic results highlighted diabase dykes and other interpreted geologic contacts. The VLF-EM results identified two high-priority conductors, recommended for follow-up work (Sears and Gasparetto, 1988) From August 12-December 10, 1988, a second magnetic and VLF- EM survey was completed by Allied Northern Resources (Sears, 1989). A total of 50.85 line-km of data was collected covering 31 claims. No significant anomalies were identified (Sears, 1989). From August 15 – November 10, 1988, a third magnetic and VLF-EM survey was completed for Allied Northern Resources (Sears and Gasparetto, 1989). A total of 11.75 line-km of data were collected at 120 m line spacing. One conductor was selected as high priority and recommended for follow-up work (Sears and Gasparetto, 1989). In 1990, Allied Northern Resources completed small exploration programs on their claims in the southern part of McMurray Township at the boundary of McMurray Township with Rabazo and Naveau townships. The program consisted of prospecting, stripping, rock and soil sampling and mapping (Sears, 1990b). Three quartz-carbonate veins and several weak soil anomalies in the eastern part of the property were delineated. One of the veins had low gold values. In addition, six diamond drill holes totaling 320.95 m were drilled (Sears, 1990c). All six drill holes intersected the Villeneuve vein system (Sears, 1990e). 6.15 Pan Orvana Resources Inc. – 1990/91 Pan Orvana Resource Inc. (“Pan Orvana”) entered into an option agreement with Citadel to evaluate the Jubilee property. In 1990, Pan Orvana reviewed historic information including drilling, completed a soil sampling survey that delineated an Au anomaly over the main shear zone and sampled the underground workings (Bradshaw, 1990). Bradshaw (1990) concluded based on the underground sampling that Page | 51 Wawa Gold Project Ontario, Canada June 30, 2016 “significant gold grades” were left in the margins of the old workings and that the grades and thicknesses were sufficient to “consider” open pit mining. 6.16 Transgold Explorations and Investment Inc. – 1994-1995, 1998 Transgold Explorations and Investment Inc. (“Transgold”) completed a mapping and sampling program in the Lyre Lake area in 1994. No anomalous gold values were observed (Drost, 1994). In 1995, Transgold completed a geophysical and geological exploration program in the Leroy Lake area in 1995. A soil weak B-horizon soil anomaly with gold values up to 57 ppm was delineated. The anomalous soil samples correspond to a VLF-EM anomaly. Between July and September 1995, ground magnetics, VLF-EM and HLEM were collected on the Transgold property at 100 m line spacing and 12.5 m, 25 m, and 25 m station spacing respectively (Drost, 1995). Several anomalies were identified from these surveys and were displayed in map format (Drost, 1995). Based on the exploration results, a diamond drilling program in the area was recommended. In 1998, a test IP survey was conducted on previously-identified VLF-EM anomalies (Anderson, 1998). Time-domain IP data was collected in dipole-dipole array, with “a” spacing = 25 m, and N = 1-3. Three chargeable features were identified and recommended for follow-up exploration (Anderson, 1998). 6.17 Lawrence Melnick – 1995-1996 In October 1995, a VLF-EM survey was conducted on the Lawrence Melnick claims at 100 m line spacing and 25 m station spacing (Archibald, 1996b). One high priority conductor was identified. In October 1996, Lawrence Melnick collected ground magnetic data at 60 m line spacing and 30 m station spacing. Two magnetic anomalies were identified as high priority and were recommended for follow-up work (Archibald, 1996b). 6.18 Elliot Feder – 1996–1998 In October 1996, Elliott Feder collected ground VLF-EM and magnetic data covering 12.2 line-km (Archibald, 1996). The line spacing was 100 m and station spacing 25 m. Three conductive anomalies were identified from the VLF-EM survey as possible shear zones and were recommended for follow-up. Anomalies were also identified from the magnetic survey and related to the Firesand Carbonatite Complex (Archibald, 1996). Four diamond drill holes were also completed in 1996 (Archibald, 1996). No positive results were reported. Page | 52 Wawa Gold Project Ontario, Canada June 30, 2016 A till sampling survey was completed on the claim group owned by Elliot Feder in McMurray Township in 1997 (Thomas, 1997a). Twelve gold grains were found in a sample from Feder’s claim 1174416 (Figure 1 in Thomas, 1997). It was concluded that further work was warranted in this area. The following year, a goldbearing vein assaying 8.7 g/t Au was found in the same location in the southern part of McMurray Township (Archibald, 1998; location of the gold-bearing sample shown on Figure 1A in Archibald, 1998). Thirty-two till samples were collected, 16 of which were analyzed for diamond indicator minerals. Several samples contain flakes of visible gold and gold “indicator” minerals (e.g., arsenopyrite). Archibald (1998) described the sample as “sheared meta-rhyolite with up to 16% pyrite and arsenopyrite” and gold occurring as inclusions in the rims of pyrite. Slightly anomalous gold values were also obtained from till samples collected from the northern part of McMurray Township (Thomas, 1997b). The location of the claims where the samples were collected is shown on Figure 1 in Thomas (1997b) 6.19 John Leadbetter – 2000 In 1998, John Leadbetter completed a beepmat survey on claims near Deep Lake. No conductors were discovered (Leadbetter, 1998). In 2000, Leadbetter prospected and sampled the area near Deep Lake in the central eastern part of Red Pine’s dispositions. He took 12 grab samples; the best gold assay results was 442 ppb Au (Leadbetter, 2000). 6.20 3814793 Canada Inc. – P.Mousseau-L. – 2004 Between October 15, 2003 and July 18, 2004, 3814793 Canada Inc. - P.Mousseau-L. conducted ground magnetic and VLF-EM surveying on their property (Archibald, 2004). The ground magnetic data consisted of 62.2 line-km at 25 m and 50 m line spacing, and 15 m station spacing. The results were used to further delineate airborne anomalies and trace outcropping areas. The VLF-EM survey consisted of 24.5 line-km of data at 50 m line spacing and 15 m station spacing. Anomalies identified were interpreted to be associated with fault and shear systems and were recommended for follow-up exploration (Archibald, 2004). 6.21 Wawa GP Inc. – 2007 In 2007, Wawa GP Inc. (“Wawa GP”) completed a diamond drilling program at their Jubilee–Surluga property totaling 8,401 m (core diameter: NQ) (Gow, 2011). The purpose of this drilling program was to target the down dip extension of the Jubilee shear zone. Page | 53 Wawa Gold Project Ontario, Canada June 30, 2016 Table 6-10: Collar locations and survey details of diamond drill holes completed by Wawa GP in 2007. Hole # Easting Northing Elevation Azimuth (°) Dip (°) Collar Length (m) Depth (m) (m) 07-383 668275 5315577 371 270 −85 538.0 07-384 668365 5315474 345 270 −85 618.0 07-385 668147 5315475 348 262 −85 510.2 668453 5315594 362 273 −85 645.0 273 −85 07-387 668361 531582 378 290 −85 534.0 07-388 668444 5315796 375 314 −85 531.0 07-389 668582 5315801 368 299 −86 750.0 07-390 668528 5315701 368 247 −83 711.0 07-391 668610 5315733 374 292 −82 696.0 07-392 668700 5315820 378 176 −82 849.0 668740 55315708 374 281 −82 771.0 181 −82 295 −80 07-386 07-386B 1 07-393 07-393A 1 07-393B1 07-394 688660 5315840 360 TOTAL 1wedged 489.5 124.7 398.7 10.3 393.0 352 770.0 8410.2 drill holes Table 6-11: Selected assay highlights for Wawa GP's 2007 drilling program. Hole No From (m) To (m) Interval (m) Au (g/t) 07-383 452.00 453.90 1.90 6.00 incl. 452.60 453.40 0.80 11.21 07-384 555.06 562.20 7.14 1.18 incl. 555.60 555.80 0.20 13.39 564.40 576.40 12.00 1.15 incl. 569.70 570.15 0.45 5.49 07-385 61.10 62.40 1.30 10.38 07-386B 586.00 590.00 4.00 2.06 incl. 586.00 587.20 1.20 6.22 07-387 476.10 485.50 9.40 1.78 incl. 480.70 481.70 1.00 3.37 incl. 483.50 484.50 1.00 4.61 07-388 48.25 49.18 0.93 4.28 51.10 52.10 1.00 8.68 507.35 508.20 0.85 1.35 7-389 559.60 562.60 3.00 7.24 7-391 600.90 604.30 3.40 11.44 7-392 844.10 844.60 0.50 5.12 7-393 680.50 680.90 0.40 4.50 691.10 692.80 1.70 10.67 734.20 735.70 1.50 5.73 07-393B 686.25 688.80 2.55 6.21 Page | 54 Wawa Gold Project Ontario, Canada June 30, 2016 Hole No incl. 07-394 From (m) 686.25 716.80 558.10 To (m) 686.40 717.60 559.20 Interval (m) 0.15 0.80 1.10 Au (g/t) 93.70 10.95 7.92 Intervals listed here do not represent true thickness. 6.22 Augustine Ventures Inc. – 2011 In January 2011, Augustine contracted Geotech Ltd. to fly 412 line-km of helicopter-borne Versatile Time Domain Electromagnetic data (“VTEM”) at 100 m line spacing (Duke, 2012). Several magnetic-conductive features were noted within the survey to coincide with the Parkhill fault. Six conductive anomalies were identified as potential follow-up targets (Duke, 2012). In 2011, Augustine drilled 2,944 m in 18 diamond drill holes (core diameter: NQ). The purpose of the drilling was to confirm historic drilling results (13 drill holes) and define the mineralization around the Jubilee mine (5 drill holes; Duke, 2012). The holes were surveyed every 10 m using a Flex-IT down hole survey tool. Twelve of the holes twinned historic holes. The twin holes did not reproduce the results of the historic database. Duke (2012) concluded that the nugget effect cannot be used to explain the discrepancy between the two data sets, which remained unexplained. Table 6-12: Collar locations and survey details of diamond drill holes completed by Augustine in 2011. Hole # Easting Northing Elevation (m) Azimuth (°) Dip (°) Length (m) AV-11-001 5317022 668300 361 0 −90 193 AV-11-002 5316929 668276 360 0 −90 151 AV-11-003 5316862 668290 360 0 −90 141 AV-11-004 5316784 668274 354 0 −90 146 AV-11-005 5316773 668370 356 0 −90 212 AV-11-006 5316677 668302 351 0 −90 178 AV-11-007 5316783 668217 349 0 −90 107 AV-11-008 5316560 668108 355 294 −45 72 AV-11-009 5316430 668084 354 294 −45 88 AV-11-010 5316521 668280 384 0 −90 205 AV-11-011 5316326 668036 372 294 −62 79 AV-11-012 5316251 668161 381 0 −90 229 AV-11-013 5316215 668053 380 0 −90 163 AV-11-014 5316160 668051 378 0 −90 170 AV-11-015 5316040 668118 375 0 −90 235 AV-11-016 5316028 668020 381 0 −90 200 AV-11-017 5315969 667918 372 0 −90 169 AV-11-018 5315830 667981 346 0 −90 206 TOTAL 2944 Page | 55 Wawa Gold Project Ontario, Canada June 30, 2016 Table 6-13: assay highlights for Augustine's 2011 drilling program. Hole No From (m) To (m) Interval (m) Au (g/t) AV-11-002 91.81 93.38 1.57 5.67 97.09 103.58 6.49 1.94 incl. 98.58 99.17 0.59 7.24 AV-11-05 171.17 173.66 2.49 2.87 incl. 171.56 172.05 0.49 5.85 AV-11-006 133.00 136.59 3.59 7.03 incl. 133.56 134.12 0.56 21.87 AV-11-007 35.19 37.70 2.51 2.83 incl. 35.92 36.17 0.25 17.32 AV-11-008 30.56 36.60 6.04 3.23 incl. 31.28 31.80 0.52 10.69 and 32.50 32.93 0.43 8.83 AV-11-009 45.23 53.17 7.94 5.33 incl. 46.15 46.46 0.31 43.77 and 51.30 51.74 0.44 8.82 AV-11-010 162.92 164.60 1.68 20.18 AV-11-011 48.17 51.77 3.60 3.76 AV-11-012 161.54 171.44 9.90 1.93 incl. 161.54 161.98 0.44 14.36 and 170.15 170.55 0.40 10.47 AV-11-14 126.85 135.75 8.90 3.09 incl. 133.30 133.70 0.40 23.14 and 134.16 134.62 0.46 11.19 144.68 145.42 0.74 22.77 AVI-11-15 190.74 219.65 28.91 2.57 AVI-11-16 155.92 161.39 5.47 3.06 AVI-11.18 147.55 156.84 9.29 2.60 Subsequently, Augustine commissioned Watts, Griffis and McOuat Consulting Geologists and Engineers (“WGM”) to complete a resource estimate that included Augustine’s current and previous drill holes (Duke, 2012). WGM estimated the Surluga deposit contained 32.2 Mt grading 1.14 g/t Au (cutoff: 0.2 g/t Au) The historic estimate is reliable but no longer relevant as it was superseded by the current estimate (Section 14: Mineral Resource Estimates), which upgraded the historic estimate. The historic estimate used the categories set out in the “Definition Standards on Mineral Resources and Mineral Reserves” by the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”; CIM, 2014). The estimate was completed using ordinary kriging and validated using the inverse distance method. Red Pine is not treating the historic Page | 56 Wawa Gold Project Ontario, Canada June 30, 2016 estimate as current because the qualified person have not done sufficient work to classify the historic estimate as current. Augustine also collected 200 grab samples on the property in 2011 (Figure 6-2). Table 6-14 lists samples with >1 g/t Au. Augustine completed a Lidar survey in 2011.Eagle Mapping Limited used a Riegl VQ-480 laser scanner and airborne GPS/IMU to obtain digital images of the Wawa Gold Project area. The survey collected 2 to 3 pulses per square meter with a ± 0.15 m vertical accuracy and a ±0.3 m horizontal accuracy. The survey provided georeferenced digital files with 1 m contours, digital elevation model and orthophoto imagery with a 20 cm resolution. Page | 57 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 6-2: Locations of the grab samples collected by Augustine in 2011. Page | 58 Wawa Gold Project Ontario, Canada June 30, 2016 Table 6-14: Assay highlights of the grab samples collected by Augustine in 2011. Sample # Easting Northing Au (g/t) Location 1003978 668180 5315784 14.03 Minto 1003953 668166 5315867 8.3 Minto 1003903 668382 5315387 5.64 Minto 1003920 668242 5315144 3.95 Minto 1003894 668397 5315385 2.96 Minto 1003963 668242 5315971 2.06 Minto 1003976 668170 5315779 1.88 Minto 1003873 668447 5315431 1.49 Minto 1003921 668243 5315145 1.27 Minto 7.0 GEOLOGICAL SETTING AND MINERALIZATION 7.1 Regional Geology The property is located in the Michipicoten greenstone belt of the Wawa Subprovince (Superior Province). The Superior Province is the world’s largest Archean craton; it formed by amalgamation of subprovinces of various origins (plutonic, volcanic-plutonic, gneissic, sedimentary) (Polat and Kerrich, 2000). The subprovinces range in age from 3.0 to 2.65 Ga. The Wawa Subprovince extends from Minnesota in the west to the Kapuskasing structural zone in the east (Figure 7-1). The Quetico subprovince is located to the north of the Wawa subprovince and the south-eastern boundary is represented by the Batchawana fault zone. The southern boundary is located under Lake Superior. Two areas of greenstone belts characterize the subprovince: one along its northern border and one in its central parts. The latter area includes the Michipicoten greenstone belt. Page | 59 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-1: Map showing the Superior Province and its subprovinces. 7.2 Local Geology The Michipicoten greenstone belt consists of three cycles of mafic and felsic metavolcanic rocks with associated subvolcanic intrusions and metasedimentary (Sage, 1994). The ages of the three cycle are 2.9 Page | 60 Wawa Gold Project Ontario, Canada June 30, 2016 Ga, 2.75 Ga and 2.7 Ga. The two older cycles are capped by extensive iron formation. The composition of the mafic volcanic rocks ranges from basaltic to komatiitic; the youngest mafic volcanic rocks are tholeiitic. The Hawk Lake Granitic Complex and the Jubilee Lake Stock are the intrusive equivalents to the felsic portions of the two oldest cycles and represent the centres of calderas (Sage, 1984). The granitic stocks are located along a regional structure, the Wawa–Hawk Lake–Manitowik Lake Fault (Figure 7-2). Diabase dikes cut the supracrustal rocks. The Firesand River Carbonatite intruded along the Wawa–Hawk Lake– Manitowik Lake Fault indicating that the fault is deep-seated. The fault forms the boundary between an area of extensive lamprophyres to the south and a lamprophyre-free zone to the north. Sage (1994) interpreted the greenstone belt to have formed as an island arc in a convergent plate margin environment. The Michipicoten greenstone belt was metamorphosed to greenschist facies whereas the surrounding supracrustal rocks were metamorphosed to amphibolite facies. The greenstone belt is surrounded by Early Precambrian granite and gneiss. It is covered by extensive glacial material. The Wawa Gold Project is located along the southern boundary of Michipicoten greenstone belt (Sherman, 2005). 7.3 Property Geology A large part of the property is underlain by the Jubilee Stock, a high-level subvolcanic intrusion of variable composition (diorite to quartz diorite and granodiorite; Frey, 1987) (Figure 7-3). The Jubilee Stock is fineto medium-grained and locally porphyritic; it intruded into quartz-feldspar crystal tuff at 2.745 Ga. Intrusive breccia occurs at the margins of the stock. MacMillan and Rupert (1990) observed that the more massive and competent, central parts of the Jubilee Stock are associated with better gold grades, which they attributed to a locally favorable stress field spatially associated with the competent blocks. Page | 61 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-2: Map of the Michipicoten Greenstone Belt. Page | 62 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-3: Property geology map. Page | 63 Wawa Gold Project Ontario, Canada June 30, 2016 The main rock types encountered during Red Pine’s 2014 drilling program include: 1. Medium-grained diorite (Figure 7-4) 2. Fine-grained mafic rock (gabbro; Figure 7-5) 3. Late lamprophyre dikes (Figure 7-6) Figure 7-4: Typical diorite of the Jubilee Stock from drill hole SD-14-05 (7.4 m). Page | 64 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-5: Typical fine-grained mafic rock (gabbro) of the Jubilee Stock from drill hole SD-14-05 (36.5 m). Page | 65 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-6: Lamprophyre from drill hole SD-14-06 (308 m). 7.3.1 Structure The structural setting on the property is complex and characterized by numerous fractures and faults of variable strikes and dips. The dominant directions of structural features, e.g., faults, joints, quartz-gold veins and zones of weakness intruded by dikes, is northeast to east-northeast (shear veins and shear zones; 20°–45° and 45°–70°; Frohberg, 1937) and northwest (tensional veining; 320°–340°). Examples of northeast striking faults are the prominent Jubilee shear zone, the Darwin break (previously called Darwin Shear) and the Minto B fault (Figure 7-3). Some of the veins mined in the Cooper, Minto and Grace mines are typical examples of the gold-bearing and WNW-oriented tensional vein sets. Diabase dikes post-date gold mineralization. Lamprophyre dikes cut the diabase dikes. Page | 66 Wawa Gold Project Ontario, Canada June 30, 2016 The Jubilee shear zone, which hosts the majority of the mineralization at the Surluga Mine, consists of a number of parallel, ~300–900 m long en-echelon segments (Rupert, 1997). It strikes northeast (018-034°) and dips (25-55°) to the southeast. Its width ranges from 9 m to 60 m. It extends from Wawa Lake to the northwest-trending Parkhill Fault (3.2 km) (Rupert, 1997; MacMillan and Rupert, 1990). The extension of the Jubilee shear zone south of the Parkhill Fault remains to be defined. The Jubilee Shear Zone was interpreted to be an oblique thrust fault with the hanging wall moving up and north (Helmstaedt, 1988). It is not exposed north of Wawa Lake and is assumed to be truncated by a NW trending fault under Wawa Lake (Helmstaedt, 1988). 7.3.2 Alteration Carbonatization, sericitization, chloritization and local silicification of the Jubilee Stock are characteristic of the zones adjacent to mineralization. Locally, the Jubilee diorite is pervasively biotitized. Epidote, tourmaline and K-feldspar were also observed. In the Surluga deposit, current drill core reveals that quartz-sericite alteration of strongly sheared diorite is intimately associated with gold mineralization (Figure 7-7). Pink K-feldspar alteration overprints the sericite alteration (Figure 7-8). Outward from the mineralization, pre-mineralization sodic alteration is prevalent. Biotite veins outside of the immediate mineralized zone and a broad halos of chlorite-carbonate alteration also predate mineralization. Page | 67 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-7: Quartz-sericite altered diorite from SD-14-05, 172.7 m. Page | 68 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-8: Quartz-sericite altered diorite from drill hole SD-14-04, 35 m. The quartz-sericite alteration is overprinted by pink K-spar alteration. 7.4 Mineralization Historically, mineralization was found at various locations on the property as evidenced by the eight pastproducing mines. The mineralization is spatially associated with the major shear-zones on the property. Gold mineralization is finely disseminated in quartz veins, lenses and pods within shear and breccia zones in various rock types (Frey, 1987). This lack of preference of the gold mineralization for a particular rock type is typical of the mineralization in the area. Recrystallized quartz and minor amounts of sulfides are also characteristic. Frey (1987) interpreted the rock competency to have a major impact on the character and location of the mineralization. Page | 69 Wawa Gold Project Ontario, Canada June 30, 2016 According to Frey (1987) gold occurs within the NE (020°) trending Jubilee shear zone and dips between 30° and 40° east. However, Sherman (2005) stressed that most historical deposits are hosted by quartz lenses located east of the Jubilee shear zone in ENE-oriented shear systems. In addition, mineralization also occurs in the hanging-wall of the Jubilee shear zone. Rupert (1997) describes the high grade mineralized zones to consist of lenses of <2.5 cm to 6 m thickness, 4.5–15 m length and 3 to 12 m width. They occur in clusters and are arranged in en-enchelon manner. Between 2 and 4% pyrite and minor arsenopyrite and chalcopyrite were also reported; strong silicification is typically associated with the mineralization. The lenses consist of zones of recrystallized quartz that is often folded and deformed. Different sets of tensional veins with variable gold content were also document within the Surluga deposit and in the other historic mines. Helmstaedt (1988) suggested that the mineralized zones appear to be lenses because the maximum elongation direction during ductile shearing was oblique to the trend of the Jubilee zone. Kuryliw (1970) reported the mineralization to be zoned from white quartz-tourmaline-gold to grey quartzpyrite-gold to blue-grey quartz-arsenopyrite-gold with increasing gold grades from quartz–tourmaline to quartz–gold. During the personal inspection of the property, two different types of mineralization were observed in core (dominantly strongly altered diorite) from the Surluga deposit. One type is characterized by late quartz veins that carry fine-grained visible gold and minor pyrite and carbonate. Another type is characterized by auriferous arsenopyrite with minor quartz in strongly sheared and strongly sericite altered diorite. Pyrite, pyrrhotite, minor chalcopyrite and magnetite were also observed in or peripheral to the high-grade zones. Locally, the quartz veins are very thin or absent. Quartz-tourmaline-Au veins were not observed. The continuity of the mineralization between the various historic mines on the property is uncertain due to lack of drilling data but the systematic orientation of the tensional vein sets in each of the historical mines indicate a coeval period of formation under a similar stress regime. In the Surluga–Jubilee area the vast majority of the gold mineralization is constrained within the Surluga– Jubilee shear zone and hanging wall and footwall secondary shear zones that remain poorly understood and defined. The shear zone represents a continuous structure approximately 2.5 km long, striking north, dipping 30–35° to the east and plunging to the south at 12°, with a true thickness up to 75 m locally. The shear zone outcrops at the northern extremity. Current drilling information confirms that the shear zone can be traced up to 800 m below surface. Details about possible mineralization in other areas outside the Surluga–Jubilee area have not been confirmed. Page | 70 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 7-9: Late quartz-vein and breccia from drill hole SD-14-05, 167.3 m. 8.0 DEPOSIT TYPES The mineralization on the Wawa Gold Project property is interpreted to be of orogenic (shear-zone-hosted) origin. Epigenetic gold deposits in metamorphic terranes of Precambrian shields have yielded 23,000–25,000 t Au (Goldfarb et al., 2005). These deposits typically formed during the late stages of orogeny and are therefore called orogenic gold deposits (Goldfarb et al., 2005). Most of these deposits are located close to deepcrustal, compressional and transtensional fault zones with complex structural histories (Dubé and Gosselin, 2007). Mineralization is hosted by veins filling shears and faults; mineralization is concentrated at jogs or changes in strike along the larger-scale fault zones. The timing of the mineralization is typically syn- to latedeformation. Stockworks, breccias, crack-seal veins, sigmoidal veins, and disseminations in deeper parts Page | 71 Wawa Gold Project Ontario, Canada June 30, 2016 are all common. Swarms of lamprophyre dikes and intermediate to felsic porphyritic intrusions are also common in orogenic deposits. The typical sulfide content of these deposits is 2–5% with arsenopyrite and pyrite being the dominant sulfides. Pyrrhotite occurs in higher-temperature systems. Base-metals are rare but W-, B- and Te-bearing phases can occur (Goldfarb et al., 2005). Visible gold and electrum are common. Typical gangue minerals are quartz and carbonate. Carbonates, sericite/muscovite, chlorite, K-feldspar, biotite, tourmaline and albite are typical alteration minerals. Intermittent pressure changes in the shear zones and the resulting fluid unmixing and water–rock interaction and associated desulfidation are considered the dominant precipitation mechanisms. Metamorphic fluids are interpreted to be responsible for gold transport; however, gold may have been sequestered from rocks predating the metamorphic event (Goldfarb et al., 2005). Economically significant orogenic deposits tend to be between 2 and 10 km long, ~1 km wide and can be mined to depths of 2–3 km. Examples of orogenic deposits/districts are Muruntau (Kazakhstan), Ashanti (West Africa) and Golden Mile (West Australia). Canadian examples include McIntyre–Hollinger (Ontario), Red Lake (Ontario) and Kirkland Lake (Ontario). 9.0 EXPLORATION 9.1 Ground Magnetic Surveying (Dec 2014 – Jan 2015) Members of the Red Pine team conducted a ground magnetic survey of the Surluga Mine and surrounding area between 03 December 2014 and 26 January 2015. The survey data was collected using a GEM Systems GSMP-35 Magnetometer, an optically pumped potassium magnetometer. The data was collected at 1 Hz and the system is reported to have an accuracy of ±0.05 nT (GEM Systems Inc., 2013). The magnetic diurnal was observed using a stationary GSM-19 magnetometer, and was collected at 0.2 Hz. The corrected total magnetic field was calculated during nightly processing of the data. The majority of survey lines were collected in an east-west orientation, perpendicular to the strike of the Jubilee shear zone. The survey line spacing was 50 m. An additional four lines were surveyed over the cut line path of the IP lines discussed in Section 9.2 - Induced Polarization. Additional lines oblique to the main east-west orientation were collected and included in the final database. Page | 72 Wawa Gold Project Ontario, Canada June 30, 2016 The corrected total magnetic intensity was examined in profile format and found to be of sufficient quality, and delineates the western edge of the presently-defined extent of the Surluga Mine. A few east-west trending magnetic lineaments, extending eastward from the Surluga Mine, are under-sampled with the present east-west ground magnetic line orientation and are therefore not as well delineated in the magnetic image. Since the delineation of these units was not the primary focus of this survey, this sampling is considered satisfactory. The ground magnetic survey defined the strike of the Jubilee shear zone and is expressed as a magnetic low striking approximately 015°. There are areas of increased magnetization within the Jubilee shear plane require further investigation in 3D through constrained inversion, as they may be related to the shear zone. Linear features oriented east-west are also observed in the magnetic data. The gridded results of the total magnetic intensity are displayed in Figure 9-1. A total of 69.7 line-km were collected in GPS mode. This represents a total area surveyed of 2.23 km². Page | 73 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-1. Total Magnetic Intensity of Wawa Ground Magnetic Survey (Dec 2014 – Jan 2015). Page | 74 Wawa Gold Project Ontario, Canada June 30, 2016 9.2 Induced Polarization (Dec 2014) Red Pine contracted ClearView Geophysics Inc. (“ClearView”) to conduct Spectral Induced Polarization and Resistivity (“Spectral IP/Res”) surveys on the Surluga Property. The work was completed December 12–16, 2014. The objective of the survey was to determine if the Spectral IP/Res results could be used to enhance drill targeting for gold mineralization (Mihelcic, 2014). The survey array geometry was a Pole-Dipole “Combo” array, whereby the dipole spacing (“a”) for n = 1-6 was a = 50 m, and for n= 7-8, a = 100 m. Voltage drops were measured for each dipole, and the transmitter operator measured the contact resistance and electric current passing through the current electrodes during each reading. This information was relayed to the receiver operator and entered into the receiver instrument for to help calculate apparent resistivity (Mihelcic, 2014). A total of four lines were surveyed covering 3.08 line-km, with each line ranging from 600–950 m. Lines 1 – 3 were surveyed orthogonal to the Jubilee shear zone, and Line 4 was surveyed parallel to the strike of the Jubilee shear zone, approximately 430 m southeast of the top surface. Line 4 is considered the Base Line. A map outlining the line locations in plan-view is located in Figure 9-2. A final database was provided to the client containing Spectral IP/Res parameters calculated during the survey: chargeability, DC resistivity and spectral tau calculated from Cole-Cole decay fitting. The data was collected using a Scintrex IPR-12 Multi-channel IP-Receiver, and the original dump files were provided to Ronacher McKenzie for review in Geosoft Oasis Montaj. Over a period of two seconds of on-off time, eleven samples were taken to map the chargeability decay per sample point. The decay curves were examined visually for each line and no abnormalities were noted. The samples are considered representative and no factors are thought to have resulted in sample bias. Three features were identified by ClearView in the Spectral IP/Res and are listed in Table 9-1. A location of the survey lines is found in Figure 9-2. Table 9-1. Features identified from Spectral IP/Res data by ClearView Geophysics Inc. Coordinates are listed in NAD83, UTM Zone 16N. Feature Elevation Easting (m) Northing (m) Description ID (m) Gold mineralization noted at this point; There is a contact of low resistivity to the west and high A 668,415 5,317,121 128.5 resistivity to the east at this point; Spectral Tau is relatively short compared to adjacent areas on line B 668,449 5,316,382 177.8 Gold mineralization noted at this point; Broad chargeability response of 12mV/V at 100 m depth; Spectral Tau is relatively short Page | 75 Wawa Gold Project Ontario, Canada June 30, 2016 Feature ID C Easting (m) 668,129 Northing (m) 5,316,091 Elevation (m) 174.8 Description Gold mineralization noted at this point; Chargeability response is broad 14mV/V and located between low resistivity zones; Spectral Tau is relatively short Figure 9-2. Location of Spectral IP/Resistivity Survey lines. Page | 76 Wawa Gold Project Ontario, Canada June 30, 2016 On April 20th, 2015, Red Pine contracted Abitibi Geophysics (“Abitibi Geophysics”) to complete an inversion of the Spectral IP dataset using the RES2DINV inversion code developed by Geotomo Software Sdn. Bhd. The purpose of the inversion is to appropriately place the chargeability and apparent resistivity features at depth and relate them to the known Surluga Mine. Red Pine constructed an XYZ file of GPS coordinates recorded during the survey. The results were provided to Red Pine in .DAT, .INV AND .XYZ containing the input dataset, the output RES2DINV format and the final output of chargeability and resistivity features at depth. 3D images of the resistivity and chargeability inversions are found in Figure 9-3 and Figure 9-4. The results reflect the easterly dip of the Jubilee shear zone, with higher resistivity associated values in the west and above the shear zone. A broad chargeability contrast is associated with the shear zone. Figure 9-3. Results of the RES2DINV resistivity inversion on the Spectral IP dataset carried out by Abitibi Geophysics Inc. Viewed from South. Page | 77 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-4. Results of the RES2DINV chargeability inversion on the Spectral IP dataset carried out by Abitibi Geophysics Inc. Viewed from South. 9.3 Ground Magnetic Surveying (October 2015) Red Pine contracted ClearView Geophysics Inc. (“ClearView”) to complete a ground magnetic survey on the Wawa Gold Project, in the Sunrise area (See Figure 7-3). The purpose of this work was to locate magnetic anomalies, as well as identify zones and trends to help guide gold exploration. The survey was completed in October 2015 (Mihelcic, 2015). Survey parameters are found in Table 9-2. Table 9-2. Parameters of the Ground Magnetic Survey: October 2015 Survey Parameter Value Survey dates October 18-19, 2015 Line-km 12.3 km Line direction 170° Line spacing 20 m Terrain clearance 2m Page | 78 Wawa Gold Project Ontario, Canada June 30, 2016 Survey Parameter Value Magnetic sensor Scintrex ENVI Cesium magnetometer Magnetic sensor resolution 0.01 nT Magnetic sensor sampling rate 10 Hz Magnetic base station sensor GSM-19 v7.0 Overhauser magnetometer Magnetic base station sensor resolution 0.01 nT Magnetic base station 1 Hz Magnetic base station location (Long, Lat) 84.7378W, 47.9714N The corrected total magnetic intensity was examined in profile format and found to be of sufficient quality and representative of the magnetite distribution of the subsurface. No factors are noted to cause sample biases. The gridded results of the total magnetic intensity are displayed in Figure 9-5. A total of 12.3 linekm were collected in GPS mode. This represents a total area surveyed of 0.17 km². This survey represents a higher-resolution magnetic survey over the Sunrise area. The survey delineates several subtle ENE trending magnetic linear features, including one associated with the south-eastern arm of the Surluga grade shell. Page | 79 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-5. Total Magnetic Intensity of Wawa Ground Magnetic Survey (Oct 2015) Page | 80 Wawa Gold Project Ontario, Canada June 30, 2016 9.4 Ground Horizontal Loop Electromagnetic Surveying (October 2015) Red Pine contracted ClearView Geophysics Inc. (“ClearView”) to complete a ground horizontal loop electromagnetic (“HLEM”) on the Wawa Gold Project. The survey was completed using an Apex MaxMin system and is often referred to as a “MaxMin” survey (“MaxMin”). The purpose of this work was to locate electromagnetic anomalies, as well as identifying zones and trends that help guide gold exploration. The survey was completed in October 2015 (Mihelcic, 2015). Two cable separations were recorded: 50 m and 100 m. The coils were kept horizontal-parallel to each other. The receiver (“Rx”) led the transmitter (“Tx”) along survey lines and the slope difference between the Rx and Tx was adjusted using an inclinometer. The 110 Hz setting was used to ‘null’ the in-phase response of small adjustments to the Tx-Rx coil separation. Readings were recorded as the secondary field percentage of the primary transmitter field (Mihelcic, 2015). Survey specifications can be found in Table 9-3. Profile responses for the 50 m Tx-Rx separation and 100 m Tx-Rx separation are found in Figure 9-6 and Figure 9-7 respectively. Table 9-3. HLEM survey parameters. Survey Parameter Survey dates Cable lengths Line-km Area covered Line direction Line spacing Station spacing - 50 m cable separation Station spacing - 100 m cable separation Coil orientation Slope calculation Rx, Tx configuration System Frequencies recorded (Hz) - 50 m cable separation Frequencies recorded (Hz) - 100 m cable separation Parameters measured Value October 9-18, 2015 50 m and 100 m 50 m: 6.3 line-km, 100 m: 4.2 line-km 50 m: 0.112 km², 100 m: 0.052 km² 170° 20 m 5m 12.5 m Horizontal-parallel to each other Inclinometer Rx in front, Tx trailing Apex MaxMin I-10 EM System L1460E, L1400E, north of 130N on L1380N: 110, 220, 880, 1760, 3520, 7040, 14080, 28160, 56320 All other lines: 110, 7040, 14080, 28160, 56320 All lines: 110, 220, 880, 1760, 3520, 7040, 14080, 28160, 56320 In-phase and quadrature components of secondary magnetic field, in % of primary field Page | 81 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-6. Max Min 50 m Tx-Rx separation. In-phase solid lines: 56 kHz (red), 28 kHz (pink), 14 kHz (brown), 7 kHz (cyan). Quadrature dashed lines: 56 kHz (blue), 28 kHz (maroon), 14 kHz (orange), 7 kHz (green). Page | 82 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-7. Max Min 100 m Tx-Rx Separation. In-phase solid lines: 56 kHz (red), 28 kHz (pink), 14 kHz (brown), 7 kHz (cyan). Quadrature dashed lines: 56 kHz (blue), 28 kHz (maroon), 14 kHz (orange), 7 kHz (green). Page | 83 Wawa Gold Project Ontario, Canada June 30, 2016 The highest quadrature response profiles for the 100 m Tx-Rx separation were noted on the southern parts of lines L1480E – L1600E. The in-phase responses were noted to be relatively weak and highly variable in the south part of L1540E - L1600E (Mihelcic, 2015). Eleven anomalies were selected by ClearView Geophysics from the 50 m Tx-Rx separation based on the in-phase and quadrature response, and are listed in Table 9-4. They are displayed graphically in Figure 9-8. Table 9-4. Interpreted anomalies of 50 m Tx-Rx separation survey. Selected by ClearView Geophysics Inc. Anomaly ID Comment A B C D E F G H I J K Strong in-phase and quadrature responses, especially on L1180E and L1200E. Width of anomaly is less than 25 m suggesting a near or at surface source. Centre of 25 m wide quadrature and alternating in-phase response. Anomaly extends to outcrops where samples were taken. Centre of 25 m wide quadrature and alternating in-phase response. Anomaly extends to outcrops where samples were taken. Located in northeast corner of grid, best defined on 14 kHz data. Response is less than 15 m wide indicating weak near or at surface source. Located in northeast corner of grid, best defined on 14 kHz data. Response is less than 15 m wide indicating weak near or at surface source. Located in northeast corner of grid, best defined on 14 kHz data. Response is less than 15 m wide indicating weak near or at surface source. Anomaly noted to coincide with elevated gold assays. Consist of very weak (less than 3%) 56 kHz quadrature anomalies over a width of approximately 50 m. Anomaly likely the result of subtle variations from the bedrock. Anomaly noted to coincide with elevated gold assays. Consist of very weak (less than 3%) 56 kHz quadrature anomalies over a width of approximately 50 m. Anomaly likely the result of subtle variations from the bedrock. Similar, and immediately south to anomalies G and H. Located at south-east corner of grid. One of the highest amplitude anomalies detected. Marks the boundary between positive and negative quadrature response. This boundary does not correlate with the edge of the swamp. Posited to be a bedrock source. Located at south-east corner of grid. One of the highest amplitude anomalies detected. Although the anomaly axis is located in a flat overburden-filled area, the source could result from a bedrock fault zone. Page | 84 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-8. Anomalies selected by ClearView Geophysics from 50 m Tx-Rx separation HLEM data. Total magnetic intensity data (Oct 2015) underlain. Page | 85 Wawa Gold Project Ontario, Canada June 30, 2016 9.5 Helicopter-borne Gradient Magnetic Survey (Feb 2015) Red Pine contracted Scott Hogg & associates Ltd. (“Scott Hogg”) to conduct a helicopter-towed gradient magnetic survey on the Wawa Gold Project. The survey was completed from February 12th – 17th, 2015. A total of 928 line-km of data were collected (Munro, 2015). The survey covered an area of 37 km2. The survey parameters are presented in Table 9-5. Table 9-5. Helicopter-borne gradient magnetic survey parameters Survey Parameter Value Survey dates Feb 12-17, 2015 Line-km 928 line-km Area 37 km² Line direction 090° Line spacing 50 m Tie line direction 000° Tie line spacing 500 m Terrain clearance 30 m Heli-GT (contains 4 Scintrex CS3 cesium sensors in an orthogonal array) 3 m within the array Magnetic sensor Magnetic sensor separation Magnetic sensor resolution 0.005 nT Magnetic sensor sampling rate 10 Hz Fluxgate magnetometer Billingsley TFM100G2 3-axis Fluxgate magnetometer sampling rate 10 Hz Radar altimeter Terra TRA 3500 / TR 140 Radar altimeter sampling rate 10 Hz Additional data recorded VLF, GPS Magnetic base station GEM SSM19TW proton magnetometer Alternate diurnal recording Natural Resources Canada - Ottawa It was noted that there were times throughout surveying that magnetic base station operated by Scott Hogg was unable to record due to cold weather conditions. During this time, diurnal magnetic data recorded by Natural Resources Canada in Ottawa was reviewed for determination of magnetic storms during surveying (Munro, 2015). Scott Hogg confirmed that the base station channels were used to monitor diurnal activity but the diurnal correction occurs during the tie-line levelling phase. It is industry-practice to employ at least one base magnetometer at a survey site to monitor diurnal activity. The diurnal activity recorded by Natural Resources Canada does not suggest any abnormal solar storm occurring, but the lack of this on-site base Page | 86 Wawa Gold Project Ontario, Canada June 30, 2016 station magnetometer could introduce bias in the sampling of the magnetic data. Red Pine was made aware of the base magnetometer failure and elected to continue with surveying. The Scott Hogg Heli-GT system consists of a towed bird that contains all of the geophysical sensors as well as altimeter and GPS antennae (Munro, 2015). The system contains four magnetometers and allows for calculation of three magnetic gradients G1, G2 and G3, measured from the nose sensor to each of the radial sensors (Munro, 2015). The sensor in the bird’s nose (“Mag4”) is used as the principal total field profile. A minor lag is applied to the Mag4 sensor to align the data with the GPS antennae array (Munro, 2015). A visual depiction of the system can be found in Figure 9-9. Figure 9-9. Overview of the Heli-GT system. The three orthogonal magnetic gradients are measured on 3 m baselines (from Munro, 2015). The pitch, roll and yaw of the bird are recorded by Scott Hogg and mathematically used to rotate the measured gradients to G-north, G-east and G-down, representing the XYZ orthogonal components of the magnetic field. The GPS altitude data was applied to the lagged magnetic data to produce an altitude correction. This altitude-corrected data underwent tie-line levelling and final micro-levelling (Munro, 2015). Page | 87 Wawa Gold Project Ontario, Canada June 30, 2016 Scott Hogg used proprietary gradient tensor software program GT-Grid to produce a total magnetic field grid from the recorded total magnetic field sensor (Mag4) and the recorded gradients. The total magnetic field grid is displayed in Figure 9-10. The data was also pole-reduced for the Wawa Gold Project using a Fast Fourier Transform (“FFT”) filter. An FFT filter was also applied to the data to produce a first vertical derivative grid (“CVG”), calculated from the pole-reduced total field grid, as can be seen in Figure 9-11. A half-cosine roll-off filter was included with the vertical derivative operator to reduce short-wavelength noise. The full wavelength of the noise filter was 30 m (Munro, 2015). A digital terrain model (“DTM”) was calculated by subtracting the radar altimeter data from the GPS altitude, and was corrected by microlevelling (Munro, 2015). The DTM is displayed in Figure 9-12. The magnetic survey covers the extents of the Wawa Gold Project. Significant structures such as the Hornblende Shear, the Jubilee Shear, the Parkhill fault and the Darwin Shear could be identified from this survey data and can be viewed on Figure 9-13. This information was used to guide gold exploration on the property. Page | 88 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-10. Final total magnetic field grid Page | 89 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-11. Calculated Vertical Gradient of Reduced to Pole Magnetic Grid Page | 90 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-12. Digital Terrain Model Page | 91 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-13. Structures noted on CVG results. Page | 92 Wawa Gold Project Ontario, Canada June 30, 2016 9.6 2014 Rock Sampling Red Pine completed a short field program from September 29 to October 3, 2014. The field work was executed by Brad Leonard, P.Geo., a consultant to Red Pine. The purpose of the program was to collect structural data and samples from the property (Leonard, 2014). Fifty-nine rock samples were collected (Figure 9-14). The samples are representative of the outcrop from which they were collected. The assay results are listed in Table 9-6. Based on the field observations and sampling, Leonard (2014) concluded that intense alteration was restricted to the shear zones and the immediate vicinity of the shear zones. He observed three main structural trends: NNE (e.g., Jubilee shear zone), NNW (e.g., Parkhill shear zone) and EW (e.g., Parkhill fault). Page | 93 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-14: Map showing the locations of the grab samples collected by Red Pine in 2014. Page | 94 Wawa Gold Project Ontario, Canada June 30, 2016 Table 9-6: List of samples collected by Red Pine in 2104. Sample # Area Easting Northing 22306 Surluga 668230 5317911 22307 Surluga 668251 5317928 22308 Surluga 668251 5317928 22309 Wawa Goldfield 669592 5319119 22310 Wawa Goldfield 669592 5319119 22311 Wawa Goldfield 669587 5319123 22312 Wawa Goldfield 669587 5319123 22313 Mackay 668762 5318441 22314 Mackay 668791 5318470 22315 Surluga Mine 667960 5316853 22316 Cora Shaft 667930 5316220 22317 Cora Shaft 667930 5316220 22318 Cora Shaft 667930 5316220 22319 Cora Shaft 667930 5316220 22320 Cora Shaft 668311 5316955 22321 Jubilee Shaft 668002 5316479 22322 Jubilee Shaft 667997 5316478 22323 Jubilee Shaft 667997 5316478 22324 Jubilee Shaft 667997 5316478 22325 Jubilee Shaft 667973 5316473 22326 Minto Zone B 668161 5315781 22327 Minto Zone B 668190 5315789 22328 Minto Zone B 668190 5315789 22329 Minto Zone B 668165 5315787 22330 Minto Zone B 668141 5315834 22331 Minto Zone A 667976 5315864 22332 Minto Zone A 667976 5315864 22333 Minto Zone A 667976 5315864 22334 Sunrise 668942 5315761 22335 Sunrise 668942 5315761 22336 Sunrise 668942 5315754 22336a Sunrise 668942 5315754 22337 Sunrise 668942 5315754 22338 Sunrise 668932 5315689 22339 Sunrise 668926 5315679 22340 Sunrise 668724 5315745 22341 Sunrise 668724 5315745 22342 Sunrise 668724 5315745 22343 Mickelson 668718 5315826 22344 Mickelson 668702 5315822 22345 Mickelson 668687 5315822 22346 Mickelson 668712 5315809 22347 Parkhill 668555 5314701 22348 Parkhill 668555 5314701 22349 Parkhill 668555 5314701 22350 Parkhill 668544 5314670 22201 Mariposa Shaft 668794 5314282 Au (ppb) 19 9 7 28 <5 20 77 > 5000 > 5000 <5 2300 18 177 112 <5 22 37 <5 16 <5 638 > 5000 > 5000 12 62 11 14 <5 > 5000 8 > 5000 36 10 > 5000 15 > 5000 13 <5 238 16 971 9 25 25 <5 280 > 5000 Au (g/t) 5.63 14.70 17.00 5.51 9.25 31.90 27.00 15.00 11.00 Page | 95 Wawa Gold Project Ontario, Canada June 30, 2016 Sample # 22202 22203 22204 22205 22206 22207 22208 22209 22210 22211 22212 22213 22214 22215 9.7 Area Mariposa Shaft Mariposa Shaft Mariposa Shaft EM Conductor EM Conductor Nyman Van Sickle Shaft Van Sickle Shaft Van Sickle Shaft Van Sickle Shaft Van Sickle Shaft Parkhill Shear Zone Parkhill Shear Zone Parkhill Shear Zone Easting 668804 668810 668843 668029 668029 668470 668991 668991 668991 668991 668991 668781 668781 668781 Northing 5314280 5314255 5314225 5313446 5313446 5313571 5314866 5314866 5314866 5314866 5314866 5314180 5314180 5314180 Au (ppb) 241 10 163 > 5000 <5 68 3480 <5 7 <5 <5 137 364 16 Au (g/t) 13.50 2015 Rock Sampling Red Pine collected 277 rock grab samples on the property from July 3 to 31, 2015. The purpose of the sampling was to characterize historic gold showings in the hanging wall and footwall and the Surluga deposit and elsewhere on the property (Figure 9-15). Another purpose was to test structures interpreted from airborne magnetic data (see Section 9.5). Samples were collected from outcrops and placed in a plastic sample bag together with a pre-labeled sample tag. Individual samples were placed in rice bags and delivered to the laboratory by Red Pine personnel. The samples are representative of the outcrop from which they were collected. Assay highlights are listed in Table 9-7. Samples from the Sunrise, Parkhill and Jubilee (near the Cora shaft) areas returned gold values of >50 g/t (Figure 9-15). Samples from the Cooper area and from the Hornblende Shear area north of Surluga (Figure 7-3) returned gold values between 20 and 50 g/t Au. The sample results confirmed that significant gold grades exist in the historic showings. Channel sampling was completed in some of the areas where rock samples returned high gold grades (see Section 9.8 2015 Channel Sampling). Page | 96 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-15: Locations of the rock grab samples collected in 2015. Prospecting samples represented by white dots are from Augustine’s 2011 program (see Figure 6-2). Page | 97 Wawa Gold Project Ontario, Canada June 30, 2016 Table 9-7: Assay highlights of the 2015 grab samples. Sample # Field ID UTM_E 11728 15WG-AC-101 668884 11619 15WG-AC-025 668764 1473023 15WG-BM-025 667930 11701 15WG-AC-080 668944 1473051 15WG-JFM-126 669518 1473059 15WG-JFM-130 669653 11465 grab 668966 11663 15WG-AC-048 668077 11743 15WG-AC-111 668025 11532 15WG-JFM-029 668756 11626 15WG-AC-025 668746 11597 Adam_Gord_Prospecting 668463 11725 15WG-AC-099 668723 11703 15WG-AC-081 668790 1099323 15WG-JFM-073 668399 1473052 15WG-JFM-126 669518 1473087 15WG-JFM-098 668042 11644 15WG-AC-033 668907 1473084 15WG-JFM-099 668079 11618 15WG-AC-024 668958 9.8 UTM_N 5315692 5314700 5316243 5315749 5317996 5317918 5315680 5317498 5313447 5318442 5314695 5315777 5315749 5315707 5315384 5317996 5317460 5315695 5317534 5314842 Au (g/t) 93.0 54.1 50.8 36.3 34.1 25.4 24.9 24.4 18.4 16.6 12.9 10.5 6.9 6.9 3.7 3.1 3.1 3.1 3.1 2.7 2015 Channel Sampling Red Pine collected 144 channel samples from 41 locations from July 3 to 31, 2015 (Figure 9-16, Table 9-8). The purpose of the channel sampling was to verify historic showings. Channel samples were cut using a channel saw. The starting point of the channel was recorded in terms of UTM easting and northing; the elevation was also recorded. In addition, the azimuth of the channel was documented. Samples were collected in approximately one meter intervals (intervals range from 0.1 to 1.5 m); assay highlights of the channel samples are listed in Table 9-9. The channel samples are representative of the outcrop from which they were collected. The areas investigated with the channel samples were the area around the historic Sunrise shaft, the area between the historic Van Sickle and Parkhill mines, the area north of the historic Minto mine and an area north of Highway 101 on dispositions SSM61967 and SSM61972. The best results were obtained from the Sunrise area with several samples returning gold grades >50 g/t. As a result of the positive prospecting and channel sample results, this area was selected for follow-up drilling. Page | 98 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 9-16: Location of the channel samples collected in 2015. Page | 99 Wawa Gold Project Ontario, Canada June 30, 2016 Table 9-8: Locations and orientations of the channels sampled in 2015. Trench ID Claim UTM_E UTM_N Elevation (m) 15WG-AC-009 696679 668159 5315862 348 15WG-AC-010 696679 668154 5315864 349 15WG-AC-011 696679 668215 5315948 349 15WG-AC-012 696679 668251 5315988 352 15WG-AC-014 696679 668226 5315952 349 15WG-AC-018 635653 669020 5314854 347 15WG-AC-019 635653 669033 5314876 346 15WG-AC-020 635653 669035 5314877 346 15WG-AC-021 635653 669046 5314879 345 15WG-AC-022 635653 669054 5314880 343 15WG-AC-023A 635653 669086 5314882 341 15WG-AC-023B 635653 669086 5314882 341 15WG-AC-023C 635653 669086 5314882 341 15WG-AC-025 698917 668764 5314700 339 15WG-AC-026 614798 668943 5315696 352 15WG-AC-031 614798 668904 5315687 353 15WG-AC-032 614798 668903 5315695 354 15WG-AC-034A 614798 668896 5315692 354 15WG-AC-034B 614798 668896 5315692 354 15WG-AC-035 614798 668913 5315683 352 15WG-AC-121 710019 668796 5315832 367 15WG-AC-122 710019 668787 5315834 367 15WG-AC-123 710019 668756 5315817 367 15WG-AC-124 710019 668753 5315821 367 15WG-AC-125A 606820 668721 5315745 371 15WG-AC-125B 606820 668721 5315745 371 15WG-JFM-017 629611 668758 5318439 301 15WG-AC-001 664637 668803 5318479 297 15WG-AC-001A 664637 668803 5318479 297 15WG-AC-004 629611 668766 5318449 300 15WG-AC-006 626116 668212 5315821 350 15WG-AC-008 626116 668163 5315777 348 Mariposa1 661858 668799 5314286 358 Mariposa2 661858 668806 5314278 357 Mickelson1 614798 668931 5315680 350 Mickelson2 614798 668930 5315683 350 Mickelson3 614798 668885 5315690 354 Mickelson4 614798 668884 5315690 354 Mickelson5 614798 668883 5315690 354 Mickelson6 614798 668882 5315691 355 Mickelson7 614798 668881 5315692 353 Length (m) 6.00 4.00 10.00 11.50 1.55 1.70 3.00 0.60 1.00 3.00 0.25 0.35 0.45 4.00 1.50 2.25 2.35 0.35 0.20 2.75 8.00 2.00 5.75 3.00 3.15 0.75 0.95 4.40 3.50 1.50 4.82 6.00 4.00 3.00 4.50 0.35 2.75 0.55 1.60 1.20 0.85 Dip (°) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Azimuth (°) 326 309 315 312 350 338 347 347 43 358 333 333 333 162 17 332 337 20 20 359 326 314 321 229 329 329 329 150 240 148 332 326 180 360 177 177 177 177 177 177 177 Page | 100 Wawa Gold Project Ontario, Canada June 30, 2016 Table 9-9: Assay highlights of the 2015 channel samples. Channel # From (m) To (m) 15WG-AC-001 0 2 15WG-AC-001A 0 3.5 incl. 2.5 2.88 15WG-AC-008 2 6 incl. 5 6 15WG-AC-025 2 3 15WG-AC-026 0 1.5 incl. 1 1.1 15WG-AC-035 0 2.75 incl. 0 0.7 15WG-AC-125A 0.5 3.15 incl. 1.5 2.25 15WG-JFM-017 0 0.95 Mickelson1 2.1 3.45 Mickelson5 0 1.6 Mickelson7 0 1.2 Interval (m) 2 3.5 0.38 4 1 1 1.5 0.1 2.75 0.7 2.65 0.75 0.95 1.35 1.6 1.2 Weighted Average Au (g/t) 4.16 8.03 53.7 2.64 5.16 9.21 8.22 88.1 28.04 69.5 17.2 54.2 8.55 8.85 18.76 24.23 10.0 DRILLING Red Pine completed a drilling program consisting of six diamond drill holes totaling 1,573.7 m from December 3 to 18, 2014 (Figure 10-1). The purpose of the program was to confirm the existence of historically reported high-grade zones and the geological setting and the character of the mineralization. A second drilling program was completed from February 13, 2015 to April 15, 2015. The purpose of this program was to expand the size of the mineralized body and to drill infill holes gaps in the historic drilling existed. The spring 2015 program consisted of 20 diamond drill holes totaling 4020.77 m. Another drilling program was completed between October 4 and November 15, 2015. It consisted of 13 diamond drill holes totaling 1571.6 m (Table 10-2). The purpose of the drilling program was to drill test structures adjacent to the Surluga deposit where gold mineralization was found in surface samples. This area north of Surluga is called “Hornblende Shear” (see locations of drill holes labeled “HS“ in Figure 10-1). In addition, another gold-bearing vein systems in the area of the Mickelson-Sunrise Deformation zone was drilled. Prospecting and channel samples collected in this area returned high gold grades of >50 g/t. Collar locations were determined using an RTK GPS. Drilling was completed by Norex Drilling of Timmins, Ontario, in 2014, by Forage Drilling of Sherbrooke, Quebec, in the spring of 2015, and Forage Rouiller of Page | 101 Wawa Gold Project Ontario, Canada June 30, 2016 Amos, QC, in the fall of 2015. The drill core was oriented using a Reflex ACT II RD core orientation instrument during all drilling programs; a Reflex TN14 Gyrocomopass was used to orient the drill rig during the two 2015 programs. The drill core diameter was NQ (47.6 mm) for the first two programs and HQ (63.5 mm) for the fall 2015 program. A Reflex EZ-Shot downhole deviation survey tool was used to determine the deviation of the drill hole from the planned azimuth and dip. The first deviation reading was taken at a depth of 10–15 m, subsequent readings were taken every 50 m and at the end of each hole. Core recovery was >95%. Table 10-1: Details of Red Pine’s 2014 and early 2015 diamond drill holes. Hole ID Easting Northing Elevation (m) Azimuth (°) SD-14-01 668306 5316785 320 317 SD-14-02 668306 5316786 362 328 SD-14-03 668442 5316567 386 340 SD-14-04 668449 5316300 373 340 SD-14-05 668365 5317013 366 234 SD-14-06 668205 5315775 348 345 SD-15-07 668241 5315919 348 305 SD-15-08 668546 5316251 375 324 SD-15-09 668315 5316460 378 302 SD-15-10 668343 5316352 374 338 SD-15-11 668272 5316498 384 300 SD-15-12 668271 5316497 384 320 SD-15-13 668322 5316532 386 318 SD-15-14 668341 5316090 361 323 SD-15-15 668219 5316237 372 323 SD-15-16 668256 5316336 371 321 SD-15-17 668289 5316374 370 337 SD-15-18 668172 5316367 371 325 SD-15-19 668141 5316463 364 326 SD-15-20 668219 5316593 370 326 SD-15-21 668163 5316660 353 320 SD-15-22 668248 5316729 353 320 SD-15-23 668186 5316802 351 320 SD-15-24 668166 5316869 353 314 SD-15-25 668455 5317006 369 225 SD-15-26 668498 5316263 383 325 TOTAL Dip (°) −65 −65 −62 −65 −47 −45 −56 −60 −57 −57 −57 −60 −65 −56 −55 −55 −62 −60 −59 −59 −50 −60 −50 −56 −55 −67 Length (m) 127.7 231.0 309.0 330.0 234.0 342.0 279.0 363.8 240.0 255.0 228.0 163.1 213.0 291.0 195.0 180.0 210.0 115.8 135.0 123.0 75.0 99.0 99.0 171.0 240.0 345.1 5,594.5 Page | 102 Wawa Gold Project Ontario, Canada June 30, 2016 Table 10-2: Details of Red Pine’s fall 2015 drilling program. Hole ID UTM_E UTM_N Elevation (m) Azimuth (°) Dip (°) Depth (m) HS-15-27 668091 5317471 340.7 345 -65 130 HS-15-28 668057 5317403 340.8 342 -65 82.8 HS-15-29 668122 5317297 344.3 350 -70 211 HS-15-30 668094 5317233 348.7 350 -70 208 HS-15-31 668253 5316810 357.6 310 -56 385 SM-15-32 668918 5315678 351.0 325 -47 53.8 SM-15-33 668939 5315706 352.5 215 -47 82 SM-15-34 668962 5315707 352.4 215 -47 82 SM-15-35 668964 5315707 352.4 145 -45 100 SM-15-36 668951 5315772 348.2 210 -50 52 SM-15-37 668897 5315675 351.9 325 -47 58 SM-15-38 668720 5315742 371.1 25 -47 75 SM-15-39 668724 5315758 369.8 190 -50 52 1571.6 Page | 103 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 10-1: Drill plan map showing the collar locations and traces of the 2014 and 2015 drill holes. The area containing HS- drill holes is known as the “Hornblende Shear” area. Page | 104 Wawa Gold Project Ontario, Canada June 30, 2016 The core was transported from the drill rig to Red Pines secure core logging facility in Wawa by the drilling company (Figure 10-3). At the logging facility, the core was measured and photographed (wet and dry). Red Pine personnel logged the core in detail using a custom-made, Microsoft Access-based logging database. Magnetic susceptibility and structural information, including fractures, veins etc., were also recorded. Overburden thickness ranged from 0.16 m to 6.52 m and averaged 1.83 m. Core recovery exceeded 95%. Figure 10-2: Drill collar location for SD-14-01 and SD-14-02. Page | 105 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 10-3: Red Pine's core logging facility in Wawa. 10.1 Results Red Pine analyzed 597 drill core samples from the 2014 drill core, 1,901 samples from the core drilled in the spring of 2015 and 1,102 samples from the core drilled in the fall of 2015. Typical sample intervals were one metre in the mineralized zone and two metres outside the mineralized zone. During the fall 2015 program, the maximum sample length was decreased to 1.5 m to keep to keep the sample weight reasonable because the core diameter had been increased from NQ to HQ. Assay highlights are shown in Table 10-3 and Table 10-4. The current sampling length of approximately 1m to 2 m allows an adequate characterization of the gold grade variation within the shear zone. Page | 106 Wawa Gold Project Ontario, Canada June 30, 2016 Table 10-3: Assay highlights for Red Pine's 2014 and spring 2015 drilling program. Hole # From (m) To (m) Interval (m)* Au (g/t)** SD-14-01 75.50 78.10 2.60 2.61 incl. 77.00 78.10 1.10 4.72 SD-14-01 107.07 109.60 2.53 3.15 SD-14-02 80.5 82.5 2.00 3.85 SD-14-02 119.50 128.38 8.88 3.58 incl. 119.50 120.50 1.00 8.28 and 121.50 122.42 0.92 6.06 and 125.50 126.50 1.00 11.30 SD-14-03 255.00 260.00 5.00 3.22 incl. 257.00 258.00 1.00 8.17 SD-14-03 264.10 271.80 7.70 8.89 incl. 265.10 266.20 1.10 20.50 and 266.53 267.30 0.77 15.00 and 268.50 270.70 2.20 14.23 SD-14-04 253.18 288.50 35.32 5.72 incl. 263 264 1.00 11.60 and 267 267.77 0.77 11.60 and 275.6 276.6 1.00 11.80 and 281.5 282.5 1.00 11.40 SD-14-05 148.25 162.25 14.00 7.25 incl. 155.00 161.00 6.00 15.33 SD-14-06 10.61 18.00 7.39 1.71 incl. 10.61 12.45 1.84 6.05 SD-14-06 292.33 322.50 30.17 2.64 incl. 302.2 303.3 1.10 11.90 and 320.46 321.5 1.04 42.30 SD-15-07 66.00 68.00 2.00 13.65 SD-15-07 237.00 252.00 15.00 2.19 incl. 247.00 248.00 1.00 9.25 SD-15-08 328.35 329.35 1.00 11.50 SD-15-10 228.39 229.40 1.01 16.20 SD-15-11 195.50 196.50 1.00 53.20 SD-15-11 216.00 217.00 1.00 51.70 SD-15-12 151.10 152.10 1.00 5.00 incl. 254.11 255.00 0.89 8.49 SD-15-14 253.00 257.00 4.00 2.17 SD-15-14 266.00 273.18 7.18 2.57 incl. 268.80 269.80 1.00 9.99 and 273.00 273.18 0.18 5.00 SD-15-14 281.00 285.48 4.48 3.16 incl. 282.00 283.00 1.00 11.20 SD-15-15 166.00 174.00 8.00 1.04 SD-15-19 72.00 79.60 7.60 1.67 incl. 74.48 76.50 2.02 4.88 SD-15-19 84.60 85.60 1.00 5.11 SD-15-22 54.70 57.00 2.30 2.48 incl. 56.04 57.00 0.96 5.67 Page | 107 Wawa Gold Project Ontario, Canada June 30, 2016 Hole # SD-15-22 SD-15-23 SD-15-24 SD-15-25 SD-15-25 SD-15-26 incl. SD-15-26 From (m) 72.00 30.60 161.00 198.75 231.70 275.00 287.10 298.13 To (m) 75.00 31.60 162.00 205.75 232.70 288.10 288.10 299.13 Interval (m)* 3.00 1.00 1.00 7.00 1.00 13.10 1.00 1.00 Au (g/t)** 1.88 3.86 2.88 2.19 2.35 3.60 17.89 11.20 *Intervals are sample lengths and do not represent the true thicknesses of the mineralization ** weighted average gold grades Table 10-4: Assay highlights for Red Pine’s fall 2015 drilling program. Hole # From (m) To (m) Interval (m)* Weighted Average Au (g/t)** HS-15-27 25.00 33.10 8.10 2.96 incl. 26.00 27.40 1.40 9.70 and 28.40 29.73 1.33 3.28 HS-15-28 25.95 41.30 15.35 1.25 HS-15-29 147.00 150.00 3.00 1.58 incl. 148.00 149.00 1.00 3.05 HS-15-29 165.00 171.00 6.00 0.84 HS-15-30 1.50 14.00 12.50 1.78 incl. 10.00 11.40 1.40 3.82 and 12.84 14.00 1.16 5.22 HS-15-30 153.50 164.83 11.33 1.33 incl. 155.97 157.52 1.55 3.21 HS-15-31 57.50 84.00 26.50 2.92 incl. 65.00 66.00 1.00 3.06 and 76.00 77.00 1.00 3.91 and 80.00 81.00 1.00 3.45 HS-15-31 178.50 200.50 22.00 1.01 HS-15-31 347.50 356.00 8.50 5.37 incl. 350.50 351.50 1.00 25.30 and 352.50 353.40 0.90 15.70 SM-15-32 21.40 22.00 0.60 6.65 SM-15-35 41.00 41.75 0.75 28.06 SM-15-37 6.10 7.00 0.90 1.04 *Intervals are sample lengths and do not represent the true thicknesses of the mineralization ** weighted average gold grades Page | 108 Wawa Gold Project Ontario, Canada June 30, 2016 10.1.1 Surluga area In the Surluga area, the mineralization forms zones in a tabular body striking north and dipping 30–35° to the east and plunging to the south at 12°, with a true thickness up to 75 m locally. The drill holes in this area were included in the resource estimated. 10.1.2 Sunrise-Mickelson area This area was drilled because of the results from the prospecting and channel samples. SM-15-32, 35 and -37 intersected possible extensions of the veins found on surface at 21 m, 41 m and 6 m, however, insufficient drilling was completed in this area to provide full understanding of the vein extent. The relationship between the sample lengths and the true thickness of the mineralization and the orientation of the mineralization are not known at this stage. 10.1.3 Hornblende Shear area Limited modern exploration had been completed west of the historic Surluga mine in the “Hornblende Shear” area (Figure 7-3), located approximately 300 m west of the Jubilee Shear zone. A historic shaft may have occurred in this area but little evidence remains. Red Pine collected rock samples from the area in 2015 and one sample returned 24.4 g/t Au. Five holes were drilled in the Hornblende Shear area in 2015. The Hornblende Shear strikes northeast and dips ~25-35° to the southeast. It is interpreted to be subparallel to the Jubilee shear zone. Several drill holes intersected gold mineralization. Drill hole HS-15-31 was drilled to the northwest (310°). It intersected mineralization that is part of the Jubilee shear zone between ~60 and 80 m and mineralization that is interpreted to be part of the Hornblende Shear at 350 m. The relationship between the sample lengths and the true thickness of the mineralization is not known at this stage. Based on limited drilling, the orientation of the mineralization is interpreted to coincide with the orientation of the Hornblende Shear. Ronacher McKenzie did not determine any drilling, sampling, or recovery factors that could materially impact the accuracy and reliability of the results. Page | 109 Wawa Gold Project Ontario, Canada June 30, 2016 11.0 SAMPLE PREPARATION, ANALYSES AND SECURITY 11.1 Historic Samples No information is available about the sample preparation, analyses and security of historic drill core. However, Duke (2012) assumed that core from surface drill holes was split using a core splitter and that core from underground drill holes were either assayed as whole core or also split by a core splitter. Duke (2012) also indicated that samples may have been analyzed by an assay laboratory on site initially. In the 1980s and 1990s, the samples were likely sent to Wawa Assay Laboratory, an unaccredited laboratory in Wawa. Duke (2012) assumed the assay method to have been fire assay with a gravimetric finish. No information about quality control measures and sample security is available. 11.2 Wawa GP Inc. 2007 Samples Details about the sample preparation, analyses and security of core samples from Wawa GP’s 2007 drilling program were described by Duke (2012). The core was cut in half using a core saw; one half was returned to the core box, the other half was put in a sample bag and sent to Accurassay Laboratories (“Accurassay”) in Thunder Bay, Ontario. Accurassay is accredited for gold under the ISO/IEC 17025 guideline. At Accurassay, the samples were dried, crushed, split and pulverized. A 30 g aliquot was used for fire assay analysis with an atomic absorption spectroscopy finish. Accurassay is independent of Augustine (Duke 2012). Wawa GP inserted 12 blanks and three standards into the sample stream. In addition, Accurassay repeated one analysis for every 10 samples (Duke, 2012). Sample security was described by Dow (2011): core was moved from the drill rig to the logging area by the drillers. Samples were transported to Accurassay by a bonded carrier. 11.3 Augustine 2011 Samples Duke (2012) described the sampling procedure for the drill core from Augustine’s 2011 drilling program. The core was transported from the drill rig to Augustine’s secure logging and storage facility in Wawa. The core was cut in half using a core saw. One half was returned to the core box, the other half was put in a sample bag with a pre-numbered sample tag. Multiple sample bags were collected in rice bags; the rice bags were sealed, placed in pails and shipped to Accurassay by Greyhound. Accurassay is accredited for gold under the ISO/IEC 17025 guideline. Accurassay is independent of Augustine. Page | 110 Wawa Gold Project Ontario, Canada June 30, 2016 Accurassay dried and crushed the sample to −8 mesh (2.38 mm). A subsample was pulverized and 30 g of the pulverized material was analyzed by fire assay with an atomic absorption spectroscopy finish. Duke (2012) concluded that the sample collection, preparation and security for the 2011 drilling program were adequate. 11.4 2014 and 2015 Prospecting and Channel Samples The 2014 and 2015 prospecting and channel samples were collected by Red Pine personnel and put in plastic sample bags with pre-labeled tags; several samples were collected in rice bags and transported to the laboratory by Red Pine personnel. No quality control samples were added. Sample preparation and analytical procedures were the same as for the 2014 and 2015 drill core samples (Section 11.5). 11.5 Red Pine 2014/2015 Samples Drill core was transported from the drill rig to the core logging facility by the drill contractor. The core collected by Red Pine during the 2014–2015 drilling program was sampled in regular intervals of ~1 m within the mineralized zone and ~2 m outside the immediate mineralized zone observing lithological contacts. Maximum sample lengths for HQ core (fall 2015 program) was 1.5 m. The core was cut using a core saw. A total of 1901 samples were collected during the 2014 and spring 2015 programs and 1102 samples during the fall 2015 program. Standards and blanks were inserted in the samples stream every 20 samples and 25 samples, respectively. The standards used are listed in Table 11-1 and Table 11-2. Silica sand was used as blank. During the 2014 and spring 2015 programs, 138 standards and 112 blanks were inserted. Six core duplicates were inserted. During the 2015 program, 52 blanks and 55 standards were inserted. No core duplicates were submitted for assaying. The assay laboratory inserted preparation and pulp duplicates. Core samples were put into a plastic bag together with a pre-numbered sample tag. Individual bags were put into rice bags and transported to Activation Laboratories Ltd. (“Actlabs”) in Ancaster or Timmins, Ontario, by Red Pine personnel. Each rice bag also has a pre-numbered tag. Actlabs is an ISO/IEC 17025 certified laboratory and fire assay analysis is within the scope of this accreditation at Actlabs Timmins, Sudbury and Ancaster laboratories, the three locations where assays were performed. There is no relationship between Augustine and Actlabs. The remaining drill core is stored in Red Pine’s secure drill core logging and outdoor storage facility (Figure 11-1). Page | 111 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 11-1: Secure core storage area next to Red Pine’s core logging facility in Wawa, Ontario. 11.5.1 Analytical Procedures Two analytical packages were selected by Red Pine: (1) Fire-assay with an AAS finish and (2) Screen metallics on 1000 g of samples. For the fire-assay analysis, the entire sample is crushed to −10 mesh (1.7 mm), mechanically split and an aliquot of 250 g is pulverized to at least 95% −150 mesh (105 μm). For the fall 2015 samples, an aliquot of 500 g was pulverized to at least 95% −150 mesh (105 μm). Thirty grams of the pulverized sample were used for the fire assay procedure for the 2014 and the spring 2015 samples. Fifty grams of the pulverized sample were used for the fire assay procedure for the fall 2015 samples. Gold analysis was completed by AAS. Page | 112 Wawa Gold Project Ontario, Canada June 30, 2016 For the metallic screen analysis, typically a 1000 g split (up to 2000 g) is sieved at 100 mesh (149 μm). Assays are performed on the entire +100 mesh and on two splits of the −100 mesh fraction. The final assay is calculated using the weight and gold analysis of each fraction. Table 11-1: Standards used during the 2014 Red Pine drilling program. Standard Name* Certified Standard Method Matrix Au (g/t) Deviation Oreas 205 1.244 0.053 FA-AAS tholeiitic basalt and sulfide-bearing (pyrite, arsenopyrite) gold ore in quartz-sericite-carbonate schist assemblage Oreas 206 2.197 0.081 FA-AAS same Oreas 904 0.045 0.0043 FA-INAA oxide Cu ore hosted by carbonaceous sandstone and siltstone *All standards are produced by Ore Research & Exploration Pty. Table 11-2: List of standards used during the fall 2015 drilling program. Standard Certified Standard Method Matrix Name* Au g/t Deviation Oreas 12a 11.79 0.24 FA-AAS sulfide-bearing (pyrite, arsenopyrite) gold ore in quartzsericite-carbonate schist assemblage Oreas 19a 5.49 0.10 FA-AAS alkali olivine basalt and sulfide-bearing (pyrite, arsenopyrite) gold ore in quartz-sericite-carbonate schist assemblage Oreas 205 0.75 0.03 FA-AAS tholeiitic basalt and sulfide-bearing (pyrite, arsenopyrite) gold ore in quartz-sericite-carbonate schist assemblage Oreas 202 1.24 0.05 FA-AAS tholeiitic basalt and sulfide-bearing (pyrite, arsenopyrite) gold ore in quartz-sericite-carbonate schist assemblage *All standards are produced by Ore Research & Exploration Pty. The Qualified Person concludes that the sample preparation, security and analytical procedures are adequate for the purpose of this report. For future quality assurance programs, Ronacher McKenzie recommends the inclusion of core duplicates in regular intervals. 11.5.2 Physical Rock Property Measurements Magnetic susceptibility and specific gravity (“SG”) on the drill core were recorded by Red Pine. SG was determined by weighing a piece of core in air and in water and by calculating SG using the formula: Page | 113 Wawa Gold Project Ontario, Canada June 30, 2016 SG Figure 11-2: SG measurement at Red Pine's core logging facility. Page | 114 Wawa Gold Project Ontario, Canada June 30, 2016 11.6 Quality Assurance and Quality Control Programs Quality control measures are typically set in place to ensure the reliability and trustworthiness of exploration data. These measures include written field procedures and independent verifications of aspects such as drilling, surveying, sampling and assaying, data management, and database integrity. Appropriate documentation of quality control measures and regular analysis of quality control data are important as a safeguard for project data and form the basis for the quality assurance program implemented during exploration. Analytical control measures typically involve internal and external laboratory control measures implemented to monitor the precision and accuracy of the sampling, preparation, and assaying. They are also important to prevent sample mix-up and to monitor the voluntary or inadvertent contamination of samples. Assaying protocols typically involve regularly duplicating and replicating assays and inserting quality control samples to monitor the reliability of assaying results delivered by the assaying laboratories. Check assaying is normally performed as an additional test of the reliability of assaying results. This generally involves reassaying a set number of sample rejects and pulps at a secondary umpire laboratory. This technical report concerns the exploration work completed by Red Pine between 2014 and 2015. The review focuses on the analytical results for the new drilling completed by Red Pine and informing the mineral resources. Analytical quality control data from Augustine drilling in 2011 are summarized in the previous technical report by WGM (Duke, 2012). The authors concluded that the exploration data of Augustine were acquired using generally accepted industry best practices. SRK also reviewed the available Augustine data and found it sufficiently reliable. SRK is not aware of any analytical quality control data produced by earlier project operators. Red Pine relied partly on the internal analytical quality control measures implemented by Activation Laboratories Ltd. (Actlabs). In addition, Red Pine implemented external analytical control measures consisting of the use of control samples (blanks, certified reference materials and duplicate samples) inserted in all sample batches submitted for assaying. Umpire check assaying was not performed. Five certified gold reference materials sourced from commercial suppliers were used (Table 11-3). Silica sand provided by Actlabs was used as a field blank. Only six field duplicate samples were collected early in the 2014 program. The duplicate sample was collected by splitting the remaining half core in two and taking one quarter of the remaining core as sample material. Page | 115 Wawa Gold Project Ontario, Canada June 30, 2016 Table 11-3: Specifications of Control Samples Used By Red Pine (2014-2015) Reference Material OREAS 205 OREAS 206 OREAS 904 OREAS 12a OREAS 19a Source Ore Research Ore Research Ore Research Ore Research Ore Research Au (g/t) 1.244 2.197 0.045 11.79 5.49 Standard Deviation 0.0530 0.0810 0.0043 0.2400 0.1000 Sample Count 48 12 10 34 34 11.6.1 SRK Comments In the opinion of SRK, the sampling preparation, security, and analytical procedures used by Red Pine to collect samples from the Surluga gold deposit are consistent with generally accepted industry best practices and are, therefore, adequate. The sampling preparation, security, and analytical procedures used by Augustine are well documented and appear to be adequate. Historical sampling preparation, security, and analytical procedures are unknown and as such SRK cannot comment on its adequacy. The analysis of the available analytical quality control data is presented in the following section. 11.7 Ground Magnetic Survey (Dec 2014 – Jan 2015) The diurnal variation of the ground magnetic survey was examined for any deviations that exceeded 3 nT peak-to-peak over a 1 minute chord. When noted, these artifacts were removed from the database so that they were not introduced into the final data when the diurnal values are subtracted from the recorded airborne data. The integrity of the survey magnetometer data was also viewed graphically in profile form to ensure that no gaps exist and that the noise specifications are met. A fourth difference with normalized tolerance of 20 nT was applied to the raw ground magnetic data to locate and correct any small steps and/or spikes in the data. The only significant area identified in the fourth difference filter coincided with an area of known culture, as communicated by the client. This data was removed from the final database. It is expected, given the nature of a ground magnetic survey, for the results to be slightly noisier than those presented by an airborne survey. Ms. Jenna McKenzie, a Qualified Person of this Report judges these QA/QC criteria to be acceptable thresholds for the collection of ground magnetic survey data. Page | 116 Wawa Gold Project Ontario, Canada June 30, 2016 11.8 IP/Res Survey (Dec 2014) The original, raw time-domain IP files were provided to Red Pine for review in Geosoft Oasis Montaj. The IP decays and resistivity values were reviewed in the IP QC utility visually. The final cole-cole Spectral IP data was also provided and gridded for review against the final products provided by ClearView. An *.inv file was provided for each line detailing the inversion parameters and convergence limits. Each file was set with convergence limit of 1 with one cell per station spacing. Each inversion converged. Ms. Jenna McKenzie, a Qualified Person of this Report judges this quality control method to be acceptable for the collection of IP/Res survey data and corresponding inversions. 11.9 Ground Magnetic Survey (Oct 2015) The diurnal variation of the ground magnetic survey was examined for any deviations that exceeded 3 nT peak-to-peak over a 1 minute chord. No instances were noted. The integrity of the survey magnetometer data was viewed graphically in profile form to ensure no gaps exist and that noise specifications were met. A fourth difference of 20 nT was applied to the raw ground magnetic data to locate any spikes in the data. This corresponded to the ‘Noise’ channel provided by ClearView. All data flagged in the Noise channel was removed by ClearView in the final database. Given the walk-mode of the survey and close location to the ground, it is expected for the results to be slightly noisier than those presented by an airborne survey. Ms. Jenna McKenzie, a Qualified Person of this Report judges these QA/QC criteria to be acceptable thresholds for the collection of ground magnetic survey data. 11.10 HLEM Survey (Oct 2015) ClearView employed the quality control procedures outlined in the MaxMin instrumentation manual (Apex Parametrics, 1998). The transmitter and receiver were held symmetrically during measurements. The tilt test monitor was reviewed continuously, allowing for manual correction of the transmitter and receiver planes. The battery was also monitored, as sufficient voltage is required to drive the prescribed current through the transmitter coil for each recorded frequency. Page | 117 Wawa Gold Project Ontario, Canada June 30, 2016 To account for minor variations in the coil separation, the 110 Hz in-phase response was subtracted from the higher frequencies to remove the incorrectly calculated primary field. This is considered industry standard and is acceptable as there were no major conductors noted in the area. Ms. Jenna McKenzie, a Qualified Person of this Report judges these QA/QC criteria to be acceptable thresholds for the collection of ground magnetic survey data. 11.11 Helicopter-borne Gradient Magnetic Survey (Feb 2015) The radar altimeter was tested for a 30 m tolerance ± 10 m over a distance of 100 m. The areas found to be out of specification were valleys between topographic highs and tree covered low-land areas. The average altimeter reading in these areas was approximately 40 m. The flight-line separation was tested for a nominal separation of 50 m, maximum separation of 75 m, and a line separation greater than 65 m over a distance greater than 50 m. The majority of the survey area was within specification, but several areas were noted to have line separation of 75 m to 80 m. The sample separation was tested and all samples are 4 m apart or less. The integrity of the survey magnetometer data was also viewed graphically in profile form to ensure that no gaps exist and that the noise specifications are met. A fourth difference with normalized tolerance of 1 nT was applied to each of the raw magnetic channels to locate and correct any small steps and/or spikes in the data. No significant areas were noted. Due to the failure of the base magnetometer at the survey site, the quality of the diurnal activity could not be verified. Given the ability to resolve major structures from this dataset, as was the intention of this survey, this data is considered to be adequate for the purposes of this technical report. Ms. Jenna McKenzie, a Qualified Person of this Report judges these QA/QC criteria provided adequate confidence in the data collection and processing of the airborne gradient magnetic survey data. Page | 118 Wawa Gold Project Ontario, Canada June 30, 2016 12.0 DATA VERIFICATION 12.1 Data Verification by Red Pine The exploration work completed by Red Pine was conducted using documented procedures and involved extensive verifications and validation of exploration data. During drilling, experienced Red Pine geologists implement industry standard measures designed to ensure the reliability and trustworthiness of the exploration data. Red Pine monitored the analytical quality control data on a real-time basis. Failures of quality control samples were investigated and appropriate actions taken, including potentially requesting re-assaying of certain batches of samples. Following the acquisition of the project, Red Pine initiated a review of the electronic exploration data in relation to the original paper reports, drill logs, sections and plans. Red Pine fixed various discrepancies in the digitization of the project database, including re-locating 27 underground boreholes. 12.2 Data Verification by SRK SRK completed a series of verifications to ensure that the geological information and the electronic data provided by Red Pine are reliable for modelling the geology and the mineral resources of the Wawa Gold Project. The verifications include a site inspection, independent verification sampling, verification of the electronic data, and a review of the analytical data with emphasis on analysis of analytical quality control data produced by Red Pine in 2014. The following sections summarizes the verifications completed by SRK. 12.2.1 Independent Verification Sampling As part of the verification procedures, SRK collected a total of forty-two verification samples. Fourteen samples were collected from core drilled by Red Pine, eleven samples were collected from core drilled by Augustine in 2011, four samples were collected from core drilled by Citadel Gold Mines in 1988, and fourteen samples were collected from historical underground drilling by Surluga Gold Mines in 1968. The verification samples were collected by splitting the remaining half core to replicate historical sample intervals where possible. Verification samples were submitted to the ALS Minerals Laboratory (ALS Minerals) in Sudbury, Ontario for preparation along with one blank and one certified reference material control sample. Final analyses were completed at ALS Minerals in North Vancouver, BC. Page | 119 Wawa Gold Project Ontario, Canada June 30, 2016 The ALS Minerals laboratory in North Vancouver, British Columbia, and the preparation laboratory in Sudbury, Ontario are accredited under ISO/IEC 17025:2005 certification by the Standards Council of Canada (accreditation numbers 579 and 689) for various testing procedures including the procedures used to assay the samples submitted by SRK. SRK samples were assayed for gold using a standard fire assay procedure with atomic absorption finish on thirty gram sub-samples or by metallic screen. Assay certificates for the SRK samples are presented in Appendix 3. Such a small sample size cannot be considered representative to verify the gold grades obtained by Red Pine, Augustine, Citadel Gold Mines, and Surluga Gold Mines. The purpose of the verification sampling was only to confirm that there is gold mineralization in the core from the Wawa Gold Project sampled by SRK. Assay results for the verification samples confirm the presence of gold in the core sampled by SRK (Table 12-1). The analytical results show that the SRK verification samples generally reproduce the Red Pine and Augustine sampling results reasonable well. There are, however, larger discrepancies between the SRK data and the historical results from Citadel and Surluga. Table 12-1: Assay Results for Verification Samples Collected by SRK on the Surluga–Jubilee gold deposit Borehole Operator SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 SD14-03 AV-11-015 AV-11-015 AV-11-015 AV-11-015 AV-11-015 AV-11-015 AV-11-015 AV-11-015 AV-11-015 AV-11-015 AV-11-015 S307 Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Red Pine Augustine Augustine Augustine Augustine Augustine Augustine Augustine Augustine Augustine Augustine Augustine Citadel From (m) 246.68 247.80 248.80 249.80 251.00 251.98 253.00 254.00 255.00 256.00 257.00 258.00 259.00 260.00 212.32 212.95 213.29 213.77 214.20 214.90 218.80 219.20 219.65 220.04 220.41 303.28 To (m) 247.80 248.80 249.80 251.00 251.98 253.00 254.00 255.00 256.00 257.00 258.00 259.00 260.00 261.00 212.95 213.29 213.77 214.20 214.90 215.80 219.20 219.65 220.04 220.41 221.26 304.80 Length (m) 1.12 1.00 1.00 1.20 0.98 1.02 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 0.63 0.34 0.48 0.43 0.70 0.90 0.40 0.45 0.39 0.37 0.85 1.52 Original (g/t Au) 0.07 1.96 0.07 0.07 0.07 0.07 0.28 0.39 3.47 1.72 8.17 0.07 2.65 0.77 3.84 2.86 0.89 0.22 0.60 3.00 11.72 7.89 0.14 0.03 0.01 5.97 ALS Minerals (g/t Au) 0.05 3.37 0.12 0.05 0.05 0.09 0.12 0.45 2.72 1.64 9.45 0.05 4.00 1.21 5.72 2.93 0.51 0.84 3.69 2.05 17.20 6.99 0.38 0.03 0.01 0.39 Page | 120 Wawa Gold Project Ontario, Canada June 30, 2016 Borehole Operator S307 S307 S307 U0335L5 U0335L5 U0335L5 U0335L5 U1660L5 U1660L5 U1660L5 U1660L5 U1660L5 U1660L5 U1660L5 U1660L5 U1660L5 Citadel Citadel Citadel Surluga Surluga Surluga Surluga Surluga Surluga Surluga Surluga Surluga Surluga Surluga Surluga Surluga From (m) 304.80 306.48 307.24 13.70 14.48 15.24 16.03 16.15 17.07 18.44 19.96 20.88 22.25 22.86 17.89 26.67 To (m) 306.48 307.24 308.15 14.48 15.24 16.03 16.76 17.07 17.98 19.96 20.88 22.25 22.86 23.77 18.44 27.06 Length (m) 1.68 0.76 0.91 0.78 0.76 0.79 0.73 0.92 0.91 1.52 0.92 1.37 0.61 0.91 0.55 0.39 Original (g/t Au) 0.75 8.71 22.59 11.00 0.69 11.31 1.71 0.27 3.57 2.67 0.55 5.01 2.19 0.21 - ALS Minerals (g/t Au) 0.27 0.99 2.39 0.19 0.01 0.24 0.08 0.34 6.77 0.37 2.21 2.98 1.36 6.87 11.55 0.12 12.2.2 Verification of Electronic Analytical Data Red Pine provided assay certificates for all batches of samples analyzed at Actlabs in 2014 and 2015, in addition to the assay certificates from Accurassay Laboratories, from Thunder Bay, Ontario, for the Augustine drilling in 2011. SRK verified the sample numbers and gold values recorded in the digital data against electronic assay certificates (pdf format). SRK checked approximately 5 percent of the analytical database entries for the drilling completed by Red Pine and Augustine. No input errors were detected. SRK concludes that the digital analytical results reflect the analytical results delivered by Actlabs for the 2014-2015 drilling program completed by Red Pine, and by Accurassay Laboratories for the 2011 drilling program completed by Augustine. SRK noticed that in the digital database, Augustine analytical results for gold were rounded to the second decimal place, while the assay certificates delivered by Accurassay report gold assays to three decimal places. No rounding errors were detected. To the extent possible, SRK also verified other electronic data (surveying and logging tables) contained in the Wawa Gold Project exploration database. The location of historical underground boreholes were checked against scanned mine plan maps and for consistency in relation to adjoining boreholes. No major issues were detected. Page | 121 Wawa Gold Project Ontario, Canada June 30, 2016 12.2.3 Verification of Analytical Quality Control Data Red Pine provided to SRK assay results for the external analytical quality control samples for the period 2014 to spring 2015. The data was provided by Red Pine in the form of Microsoft Excel spreadsheets. External quality control samples comprise field blanks, certified reference materials and field duplicated. SRK aggregated the assay results of the external analytical control samples for further analysis. Sample blank and certified reference material data were summarized on time series plots to highlight the performance of the control samples. Field duplicates were analyzed using bias charts, quantile-quantile, and relative precision plots. The analytical quality control data produced by Red Pine between 2014 and 2015 are summarized in Table 12-2 and presented in graphical format in Figure 12-1 and Figure 12-2. The external quality control data produced represents 10 percent of the Red Pine produced analytical data (2,525 samples). Table 12-2: Summary of Analytical Quality Control Data Produced by Red Pine on the Surluga–Jubilee Gold Deposit Sample Count Blanks QC samples OREAS 205 OREAS 206 OREAS 904 OREAS 12a OREAS 19a Field Duplicates Total QC Samples Core 2,525 112 138 48 12 10 34 34 6 256 (%) Comment 4.44% 5.47% Ore Research (1.244 g/t) Ore Research (2.197 g/t) Ore Research (0.045 g/t) Ore Research (11.79 g/t) Ore Research (5.49 g/t) 0.24% 10.14% In general, the performance of the control samples is acceptable. Blanks consistently yielded values at or below the detection limit with no sample above ten times the detection limit of 0.005 g/t gold. The highest blank sample (1472053) assayed in 2015 graded 0.039 g/t gold. This sample was not inserted with higher grade samples thus eliminating sample contamination as a possible cause. Overall the sample blanks performed very well. The certified reference material samples are generally within expected limits of two standard deviations with a few failures. An initial review revealed a number of outliers indicating mislabelled control samples. These errors were subsequently corrected by Red Pine. Globally, the results show that Actlabs is able to return analytical results within expected limits for the control samples tested. Page | 122 Wawa Gold Project Ontario, Canada June 30, 2016 Only six field duplicates were collected. Such a small sample group cannot be considered representative so as to verify if a sampling bias was introduced. Based on the review of the analytical quality control data, SRK concludes that the analytical results delivered by Actlabs are sufficiently reliable to inform mineral resource estimation. In the opinion of SRK, the analytical data acquired by Red Pine for the Wawa Gold Project does not present evidence of bias. WGM reviewed the analytical data acquired by Augustine in 2011 and concluded that the data were sufficiently trustworthy to inform mineral resources (Duke, 2012). SRK also reviewed the Augustine analytical quality control data from 2007 and 2011 and found no evidence of bias. In 2011, Augustine drilled 12 vertical boreholes to validate the data contained in the historical database from Citadel Gold Mines. Borehole casings were found at 9 of the 12 twin borehole sites. Their location corresponds to the location in the digital database. WGM noted a significant difference between the gold assays in the historical database and the assays from the 12 twin boreholes. WGM’s comparison showed that, using grade composites with historically unsampled intervals given a value of zero, there is 24 percent less gold in the boreholes drilled by Augustine in 2011. WGM concluded that despite not being able to explain the differences in the twin boreholes that the historical database, excluding the underground drilling, was sufficiently reliable to be considered for mineral resource evaluation. On the basis of the review of the Red Pine and Augustine data, SRK concludes that despite the lack of extensive analytical quality control data for a significant portion of the exploration database, the analytical data are generally sufficiently reliable to support geology and mineral resource modelling. The lack of analytical quality control data for the historical data cast some uncertainty in the reliability of the historical analytical data. This is compounded by the poor results of the 2011 twin drilling program. These risks should be taken into consideration in the classification of any mineral resources informed from the historical data. SRK recommends that Augustine conduct additional verification of the historical sampling data with a focus on validating the historical assay results. In light of the results of the 2011 twin borehole program, the verifications should include re-sampling of selected sections of archived core for check assaying and additional verification and validation drilling. SRK also recommends that Augustine submit a portion of pulp rejects from newly acquired drilling data to an umpire laboratory for check assaying. Page | 123 Wawa Gold Project Ontario, Canada June 30, 2016 0.8 Time Series for Silica Field Blank (Actlabs; 2014-2015 Core Samples) N = 112 Time Series for Reference Material OREAS 205 (Actlabs; 2014-2015 Core Samples) Blank 0.7 1.7 10x Detection Limit 0.6 1.5 Gold Assay (g/t) Gold Assay (g/t) OREAS 205 Expected Value +2StdDev -2StdDev N = 48 0.5 0.4 0.3 1.3 1.1 0.2 0.9 0.1 0.0 1471025 1471277 1472025 1471975 1472323 10172 10473 10737 11027 0.7 1471082 1471293 1472030 1471896 1472250 1472430 10400 11327 Time Series for Reference Material OREAS 206 (Actlabs; 2014 Core Samples) 2.8 0.10 N = 12 OREAS 206 Expected Value +2StdDev -2StdDev 2.6 2.4 0.09 11000 11240 2.2 2.0 Time Series for Reference Material OREAS 904 (Actlabs; 2014 Core Samples) OREAS 904 Expected Value +2StdDev -2StdDev N = 10 0.08 Gold Assay (g/t) Gold Assay (g/t) 10700 Samples (Time Series) Samples (Time Series) 0.07 0.06 0.05 0.04 0.03 0.02 1.8 0.01 1.6 1471020 1471517 1471154 1471273 1471597 0.00 1471058 1471134 1471194 1471255 1471313 1471577 1471637 1471373 1471433 1472010 1471451 Samples (Time Series) Samples (Time Series) Time Series for Reference Material OREAS 12a (Actlabs; 2015 Core Samples) 15 N = 34 Time Series for Reference Material OREAS 19a (Actlabs; 2015 Core Samples) 6.5 OREAS 12a Expected Value +2StdDev -2StdDev 14 Gold Assay (g/t) Gold Assay (g/t) 11 10 OREAS 19a Expected Value +2StdDev -2StdDev 6.0 13 12 N = 34 5.5 5.0 9 8 1471780 1471980 1472270 1472390 10300 10540 Samples (Time Series) 10780 11020 11320 4.5 1471740 1472110 1472350 10140 10380 10620 10860 11100 11340 Samples (Time Series) Figure 12-1: Time series plots for blank samples and certified reference materials assayed by Actlabs between 2014 and 205 on the Surluga–Jubilee Gold Deposit. Page | 124 Wawa Gold Project Ontario, Canada June 30, 2016 Bias Chart Field Duplicate Assay Pairs (0-0.1 gpt Au) (Actlabs; Core Samples) 0.10 100% 90% 0.08 N = 6 pairs Au assay 80% y = 0.9991x R² = 0.997 70% 0.06 HARD (%) Field Duplicate Assays (Au g/t) N = 6 pairs Ranked Half Absolute Relative Deviation Plot (Actlabs; Core Samples) Only pair analysed by Metallic Screen. Both are below detection limit. 0.04 0.00 0.00 0.02 0.04 50% 40% 30% 2014 Field Duplicates 0.02 60% +10% 20% -10% 10% 0.06 0.08 83.3% 0% 0.10 0% 10% 20% 30% Original Assays (Au g/t) 100% N = 6 pairs 60% 70% 80% 90% 100% Mean versus Half Relative Deviation Plot (Actlabs; Core Samples) N = 6 pairs 80% Au assay 0% Line 60% 1 40% HRD (%) Field Duplicate Assays (Au g/t) 50% Rank Q-Q Plot Field Duplicate Assay Pairs (Actlabs; Core Samples) 10 40% 0.1 20% 0% -20% -40% 0.01 -60% -80% 0.001 0.001 0.01 0.1 1 10 -100% 0.001 0.01 0.1 1 Individual Mean (Au g/t) Original Assays (Au g/t) Mean versus Half Absolute Relative Deviation Plot (Actlabs; Core Samples) 100% HARD (%) 10% 1% N = 6 pairs 0% 0.001 0.01 0.1 1 Individual Mean (Au g/t) Figure 12-2: Bias charts and precision plots for field duplicates sampled by Red Pin and assayed by Actlabs comparing the original assay to the quarter core duplicate. Page | 125 Wawa Gold Project Ontario, Canada June 30, 2016 12.3 Verification of Analytical Quality Control Data for the October/November 2015 Drilling Program The verification of the analytical quality control data for the fall 2015 drilling program was completed by Ronacher McKenzie Geoscience. The fall 2015 drilling was not included in the resource estimate. Red Pine inserted blanks and standards into the sample stream. Duplicates were not inserted because of the strong nugget effect observed in the previous drilling programs. A total of 52 blanks were inserted in regular intervals: every 25th sample was silica sand. All blanks returned gold values below the detection limit. Four different standards were inserted, including a low-, medium- and high-grade gold standard (Table 11-2). Generally, the standards inserted performed well (Figure 12-3 to Figure 12-6). Only one standard failed (Oreas 205, sample 12950, drill hole SM-15-37). Standards Oreas 202 and 205 appeared to have a high failure rate based on the database provided by Red Pine, however, it was clear from a review of the results that these standards were mislabeled. Although all standards passed, standards Oreas 12a, 19a and 205 show a distinct bias low (Figure 12-3, Figure 12-4, Figure 12-5). Page | 126 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 12-3: Performance of standard Oreas 12a. Black triangles represent standard results. Figure 12-4: Performance of standard Oreas 19a. Black triangles represent standard results. Page | 127 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 12-5: Performance of standard Oreas205. Black triangles represent standard results. 1.35 1 standard deviation Au (g/t) 1.3 1.25 certified value 1.2 1 standard deviation 1.15 1 3 5 7 9 11 13 15 17 Oreas 202 Figure 12-6: Performance of standard Oreas 202. Black triangles represent standard results. Page | 128 Wawa Gold Project Ontario, Canada June 30, 2016 The data obtained from the fall 2015 drilling program are adequate for the purpose of this report. 12.3.1 2016 Site Visit Check Samples During the site visit in February 2016, Ronacher McKenzie collected seven samples from drill core that was reviewed on site (Table 12-3). The purpose of the check sampling was to confirm that gold is present in the drill core. Exact correlation was not expected because of the strong nugget effect demonstrated previously. The samples were submitted to ALS Minerals in Sudbury, Ontario. The samples were prepared at ALS Minerals’ Sudbury laboratory and analyzed by fire assay with an AAS finish in ALS Minerals’ Val d’Or, Quebec, laboratory. The ALS Minerals laboratory Val d’Or, QC, is accredited under ISO/IEC 17025:2005 certification by the Standards Council of Canada (accreditation number 689) for various testing procedures including the procedures used to assay the samples submitted by Ronacher McKenzie. A blank and a standard were included in the sample submission and both performed well. The check sample results corroborate previous conclusions that the gold mineralization displays a strong nugget effect. For example, visible gold was observed during logging in sample 1473309 by Ronacher McKenzie (Figure 12-9), however, the assay result is 0.23 g/t Au. Although this result indicates that gold is present, it is not proportional to the amount observed visually, which is attributed to the nugget effect. Table 12-3: Check samples collected during the February 2016 site visit. Hole ID From (m) To Interval Check Original Check Comment (m) (m) Sample Tag Au (g/t) Au (g/t) HS‐15‐27 25.00 26.00 1.00 1473303 0.57 0.02 HS‐15‐27 26.00 27.40 1.40 1473304 9.70 0.10 HS‐15‐27 27.40 28.40 1.00 1473305 0.46 0.04 HS‐15‐30 12.84 14.00 1.16 1473306 5.22 0.07 Blank 1473307 <0.005 HS‐15‐30 14.00 15.20 1.20 1473308 0.01 0.01 HS‐15‐31 73.00 74.00 1.00 1473309 1.00 0.23 Visible gold observed in core Standard Oreas 202 1473310 0.75 0.74 HS‐15‐31 74.00 75.00 1.00 1473311 0.90 0.01 Lamprophyre dike 12.4 Site Visit Sébastien Bernier, P.Geo., of SRK visited the Wawa Gold Project on January 19 and 20, 2015 accompanied by Elisabeth Ronacher, P.Geo., of Ronacher McKenzie Geoscience, in addition to Craig Scherba’ and the field personal representing Red Pine. The site visit took place shortly after the first drilling program had been completed. The purpose of the site visit was to ascertain the geological setting of the Page | 129 Wawa Gold Project Ontario, Canada June 30, 2016 project, witness the extent of exploration work carried out on the property and assess logistical aspects, including access to the property (Figure 12-7), and other constraints relating to conducting exploration work in this area. All aspects that could materially impact the integrity of the resource database (like core logging, sampling and database management) were reviewed with Red Pine staff. SRK and Ronacher McKenzie were given full access to all relevant project data. SRK and Ronacher McKenzie were able to interview exploration staff to ascertain exploration procedures and protocols. The location of several borehole collars, drilled by Red Pine and historical, was verified in the field by SRK and Ronacher McKenzie (Figure 12-8). For the holes drilled by Red Pine, the collars are clearly marked and the borehole casing is capped and marked with the drill hole number. For the historical holes, the borehole identification tag is often missing but the casing remains intact. No discrepancies were found between the location, numbering or orientation of the holes verified in the field, on plans and the database examined by SRK. SRK examined core from several boreholes and found that the logging information accurately reflects actual drill core. The lithology contacts checked by SRK match the information reported in the drill logs. Page | 130 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 12-7: Entrance to the property. Page | 131 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 12-8: Historic collar. Page | 132 Wawa Gold Project Ontario, Canada June 30, 2016 Another site visit was completed by Elisabeth Ronacher, P.Geo., on February 17 and 18, 2016, to review core drilled in the fall of 2015. Dr. Ronacher reviewed sections of the following drill holes listed in Table 12-4 with the help of Red Pine personnel. Visible gold was observed in drill hole HS-15-31 (72.00–74.00 m). A total of seven drill core check samples were collected and submitted to ALS Canada, a laboratory not used by Augustine, for verification of the assay results. Table 12-4: Sections of drill holes reviewed during the February 2016 site visit. Hole ID From (m) To (m) HS-15-27 24.00 38.80 HS-15-28 23.00 43.00 HS-15-29 162.00 178.92 HS-15-29 202.00 214.00 HS-15-30 0.00 17.60 HS-15-30 149.00 168.80 HS-15-31 51.00 89.00 HS-15-31 177.00 207.00 In addition, Dr. Ronacher visited the property and verified the locations of drill holes HS-15-29 and HS-1530 (Figure 12-10). The core storage area that Red Pine had created in 2015 was also visited; historic core that had been stored off site until 2015 was transferred to this location and is currently stored there together with recent drill core. Page | 133 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 12-9: Visible gold in drill hole HS-15-31, 73.00–74.00 m. Page | 134 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 12-10: Photo of the collar location for HS-15-29 as verified during the February 2015 site visit. 12.5 Geophysics Surveys The original ground magnetic survey data (Dec 2014 – Jan 2015) was loaded into geophysical processing software program Geosoft Oasis montaj (“Oasis montaj”), gridded and reviewed. The location of the data was confirmed, and the base-corrected magnetic data was gridded and confirmed against the files provided by Red Pine. Both data instrument files and final databases pertaining to the Spectral IP/Res survey were provided to Ronacher McKenzie and reviewed in Oasis montaj. The location of the data was confirmed, and pseudosections were generated in Oasis Montaj for verification against those provided by ClearView. The raw instrument data was also reviewed in Oasis Montaj and decays and resistivity/chargeability values were verified. Page | 135 Wawa Gold Project Ontario, Canada June 30, 2016 The raw and processed ground magnetic data (Oct 2015) was provided by Red Pine to Ronacher McKenzie for review in Oasis montaj. The location of the data was confirmed, and the base corrected magnetic data was gridded and confirmed against the files provided by Red Pine. The ground magnetic survey data (Oct 2015) was loaded into geophysical processing software program Geosoft Oasis montaj (“Oasis montaj”), gridded and reviewed. The location of the data was confirmed, and the base-corrected magnetic data was gridded and confirmed against the files provided by ClearView Geophysics. The ground HLEM survey data (Oct 2015) was loaded into geophysical processing software program Geosoft Oasis montaj (“Oasis montaj”) and reviewed in profile format. The profiles were exported and compared graphically in ArcMap to the interpretation maps provided by ClearView Geophysics. The helicopter-borne gradient magnetic survey data (Feb 2015) was provided by Red Pine to Ronacher McKenzie for review in Oasis montaj. An analytic signal grid was calculated from the three measured gradients and compared to that derived from the total field grid using an FFT filter. Both grids were found to show similar features. Ms. Jenna McKenzie, a Qualified Person of this Report considers the ground magnetic survey (December 2014 – Jan 2015, the Spectral IP/Res survey (Dec 2014) and corresponding inversion results, the ground magnetic survey (Oct 2015), the HLEM survey (Oct 2015) and the helicopter-borne gradient magnetic survey (Feb 2015) to be adequate for the purposes used in this technical report. 13.0 MINERAL PROCESSING AND METALLURGICAL TESTING Red Pine has not completed any mineral processing and metallurgical testing. 14.0 MINERAL RESOURCE ESTIMATES The Wawa project includes gold mineralization in the Surluga-Jubilee gold deposit, a Precambrian-age structurally complex gold deposit hosted in the Michipicoten greenstone belt. The gold mineralization occurs in quartz veins and silica-altered fractures associated with shear zones, with the Jubilee shear zone representing the primary structure. From the early 1900s until 1991, numerous small underground mines have extracted approximately 500,000 tonnes of gold mineralization at an average grade of 8.9 grams of gold per tonne (g/t gold). Page | 136 Wawa Gold Project Ontario, Canada June 30, 2016 A recent technical report (Watts, Griffis and McQuat, October 15, 2012) describes the geology and exploration work supporting a Mineral Resource Statement prepared for Augustine Ventures Inc., the previous project owner. Recent exploration work completed by Red Pine warrants the preparation of a new mineral resource evaluation that considers a bulk pit extraction scenario. This section describes the resource estimation methodology and summarizes the assumptions considered by SRK in the preparation of a geology and mineral resource model for the Surluga–Jubilee gold deposit. The Mineral Resource Statement presented herein has been prepared for public disclosure. This is the second mineral resource valuation prepared for the Surluga–Jubilee gold deposit pursuant to National Instrument 43-101. The mineral resources were estimated in conformity with CIM Mineral Resource and Mineral Reserves Estimation Best Practices Guidelines (November 2003) and are classified according to the CIM Standard Definition for Mineral Resources and Mineral Reserves (May 2014). Mineral resources are not mineral reserves and have not demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves. SRK is unaware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant issues that may materially affect the mineral resources. The effective date of the tonnage and grade estimates is May 26, 2015. 14.1 Mineral Resource Estimation Methodology The mineral resources reported herein have been estimated using a geostatistical block modelling approach informed from core borehole data and constrained by geological and gold mineralization domains. Geological and gold mineralization domains were defined using a traditional wireframe interpretation constructed from explicit modelling and sectional interpretation of the drilling data. The evaluation of the mineral resources involved the following procedures: Database compilation and verification Construction of three-dimensional wireframe models and their verification Data extraction and processing (compositing and capping), statistical analysis, and variography Selection of estimation strategy and estimation parameters Block modelling and grade estimation Validation, classification, and tabulation Assessment of “reasonable prospects for eventual economic extraction,” and selection of the reporting assumptions Page | 137 Wawa Gold Project Ontario, Canada June 30, 2016 Preparation of the Mineral Resource Statement 14.1.1 Resource Database The Wawa exploration database up to January 19, 2015 comprises 2,007 historical core boreholes (126,067 metres) drilled between early 1900s and 2007. During 2014 and 2015, Red Pine drilled an additional 26 core boreholes (5,594 metres) designed to verify and validate parts of the historical data and the position of underground excavations. SRK received the borehole sampling data as a Microsoft Access database and subsequently converted the data into a series of CSV files for import into Leapfrog and Datamine Studio 3 software. SRK performed the following validation steps: Checked minimum and maximum values for each quality value field and confirmed/edited those outside of expected ranges Checked for gaps, overlaps and out of sequence intervals assays tables No errors were found and SRK is satisfied with the database received from Red Pine. Unsampled intervals are assumed to be barren and were assigned a value of 0.0 g/t gold for estimation. Some of the historical core is still available. Preliminary validation work completed by Red Pine, as well as by SRK and Ronacher McKenzie, confirms that the historical information in the database matches the historical paper logs. The original assay certificates are not available for the historical data but sporadic check samples and geochemistry validation using a portable XRF spectrometer confirms that the historical sample intervals contain gold mineralization and that the analytical data are reasonable. SRK audited approximately 5 percent of the electronic assay table against original assay certificates for the boreholes drilled by Red Pine. No discrepancies were found. Considering the early stage of the exploration project and the amount of work required to fully understand the controls on the distribution of the gold mineralization, SRK concludes that the current database, including the historical data, is sufficiently reliable for the purpose mineral resource estimation. The bulk of the exploration data is, however, historical in nature, casting uncertainty in the location of the samples and the analytical results. These concerns have been taken into account for the classification of the block model. Page | 138 Wawa Gold Project Ontario, Canada June 30, 2016 14.1.2 Geological Modelling The gold mineralization at the Wawa project is associated with very fine sulfide (mainly pyrite) and small quartz veining in strongly altered rock, the protolith from which is very difficult to identify but most likely was of diorite composition. The vast majority of the gold mineralization is constrained within the Surluga-Jubilee shear zone, and hanging wall and footwall secondary shear zones that remain poorly understood and defined. In collaboration with Red Pine, SRK developed a series of wireframes to constrain the mineral resource estimation. Domain 1 represents a grade shell defined using a threshold of 0.80 g/t gold that was generated to constrain the higher grade mineralization, located mainly within the Surluga-Jubilee shear zone, around the historical underground development and drilling. This domain is surrounded by an alteration wireframe generated essentially from the lithological information. The same strategy was applied to build a more general wireframe for the Surluga-Jubilee shear zone (Figure 14-1). In total three domains were modelled and considered as domains to constrain gold estimation. Late lamprophyre dikes have been regularly identified in the Surluga-Jubilee shear zone. They crosscut the gold mineralization and are barren. Overall, the lamprophyre intersections, typically about one metre in length, represent between 3 and 4 percent of the length weighted lithology intervals in the borehole database. For this study, the dikes were not modelled. Page | 139 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-1: Oblique section looking northwest. Showing the geology/resource domains modelled for the Surluga-Jubilee gold deposit of the Wawa project. 14.1.3 Compositing and Capping Borehole assay data were extracted for each of the three resource domains (Domain 1, alteration and shear zone wireframes) and examined for determining an appropriate composite length. Block model cell dimensions and anticipated mining methods were also considered in the selection of the composite length. A modal composite length of 2.0 metres was applied to all data (Figure 14-2). The impact of outliers was examined on composite data in all three domains individually using log probability plots and cumulative statistics. A three-dimensional visual validation of the selected capping levels was also performed to assess the three-dimensional distribution of the higher grade values. Basic statistics for assays, composites, and capped composites are summarized in Table 14-1. Basic statistics, histograms, and cumulative probability plots examined for each domain are provided in Figure 14-4 to Figure 14-6. Page | 140 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-2: Sampling Length by Domains Table 14-1: Basic statistics – gold Source Units Sample Count Domain 1 Alteration Shear g/t g/t g/t 17,118 14,415 10,351 Domain 1 Alteration Shear g/t g/t g/t 8,011 8,935 8,871 Domain 1 Alteration Shear g/t g/t g/t 8,011 8,935 8,871 Capped Count Minimum Maximum Original Data 0.00 467.31 0.00 130.47 0.00 44.85 Composite Data 0.00 132.23 0.00 49.40 0.00 13.39 Capped Composite Data 3 0.00 75.00 8 0.00 21.00 5 0.00 10.00 Mean Standard Deviation Coefficient of Variation 2.77 0.36 0.11 7.65 2.19 0.79 2.77 6.06 7.34 2.77 0.36 0.11 5.21 1.45 0.52 1.88 3.99 4.82 2.75 0.35 0.11 4.85 1.21 0.50 1.76 3.41 4.67 Page | 141 Wawa Gold Project Ontario, Canada June 30, 2016 14.1.1 Specific Gravity Database Red Pine measured specific gravity on a small number of representative core samples from selected assay intervals using a water displacement technique. A total of 859 specific gravity measurements were taken (Figure 14-3). The average specific gravity was applied to each domain (2.76, 2.71 and 2.72 for Domain 1, Alteration Zone and Shear Zone respectively). Figure 14-3: Specific Gravity Page | 142 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-4: Basic Statistics – Domain 1 Page | 143 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-5: Basic Statistics – Alteration Zone Page | 144 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-6: Basic Statistics – Shear Zone Page | 145 Wawa Gold Project Ontario, Canada June 30, 2016 14.1.2 Variography and Block Interpolation SRK evaluated the spatial distribution of gold using variograms and correlograms its normal score transform in Domain 1. This domain contains the most continuous gold mineralization. A total of four spatial metrics were considered to infer the correlation structure. Continuity directions were assessed based on the orientation of the resource domains, composites, and their spatial distribution. Further, variogram calculation considered sensitivities on orientation angles prior to finalizing the correlation orientation. All variogram analysis and modelling was performed using Datamine Studio 3 and the Geostatistical Software Library (GSLib). The variogram modelling was based on the combination of the four metrics of the capped composites and the correlogram. The use of original data yielded reasonably clear long range structures allowing fitting variogram models. The variogram developed for Domain 1 was applied to the Alteration and Shear domains. These models are oriented in the plane of the gold mineralization, representing the direction of maximum continuity. Consequently in Figure 14-7, the horizontal red model corresponds to the long axis of the variogram orientated almost directly south and plunging at approximately 30 degrees towards the east, while the blue horizontal model is the perpendicular to this direction. The vertical model represents the short axis and is orientated perpendicular to the horizontal plane. Considering that the borehole orientation is generally at a high angle to the zone, the vertical model can be considered as a proxy to a down-hole variogram. The variogram parameters are summarized in Table 14-2. Page | 146 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-7: Gold Correlograms for Domain 1 Note: The correlogram is inverted for the purposes of variogram modelling. The solid lines correspond to the fitted model, while the dashed lines correspond to the experimental variogram in those same directions. Table 14-2: Gold Variogram Parameters for the Surluga–Jubilee gold deposit. Domain Structure Contribution Model 1 1 C0 C1 C2 C3 C4 0.15 0.55 0.20 0.05 0.05 Nugget Spherical Spherical Spherical Spherical R1x R1y R1z Angle1 Angle1 Angle1 Axis Axis Axis (m) (m) (m) 1 2 3 1 2 3 107 38 -28 3 1 3 11 4 1 107 38 -28 3 1 3 12 8 13 107 38 -28 3 1 3 28 18 14 107 38 -28 3 1 3 30 20 15 107 38 -28 3 1 3 The rotation angles are shown in Datamine Studio 3 convention 14.1.3 Block Model Definition The criteria used in the selection of the block size included the borehole spacing, geometry of the modelled gold mineralization, and anticipated mining techniques. In collaboration with Red Pine, SRK chose a block size of 5 by 5 by 5 metres for all resource domains. Subcells were used with 5 splits in all directions, allowing a resolution of 1 metre and honouring the geometry of the modelled mineralization. Subcells were assigned the same grade as the parent cell. The model is not rotated. The characteristics of the final block model are summarized in Table 14-3. Page | 147 Wawa Gold Project Ontario, Canada June 30, 2016 Table 14-3: Surluga–Jubilee Deposit Block Model Specifications Block Size (m) Origin* Parent Subcell X 5 1.0 667,500 Y 5 1.0 5,315,200 Z 5 1.0 -500 Domain Axis All * Number Rotation Rotation of Cells Angles Axis 650 540 180 - UTM NAD 83, Zone 16 14.1.4 Estimation Strategy The estimation parameters developed for the Wawa project are summarized in Table 14-4. In all cases, grade estimation considered ordinary kriging and five passes informed by capped composites. The first pass was the most restrictive in terms of search radii and number of boreholes required to code a block. Successive passes usually populated areas with less dense drilling, using relaxed parameters with generally larger search radii and less data requirements. SRK assessed the sensitivity of the gold block estimates to changes in minimum and maximum number of data, use of octant search and the number of informing boreholes. Results from these studies show that the model is relatively insensitive to the selection of the estimation parameters and data restrictions. A hard boundary was used between the resource domains. Table 14-4: Summary of Estimation Parameters for all Resource Domains Parameter 1st Pass 2nd Pass 3rd Pass 4th Pass 5th Pass Interpolation method OK* OK OK OK OK Search range X (relative to variogram range) 1x 1x 2x 2x 10x Search range Y (relative to variogram range) 1x 1x 2x 2x 10x Search range Z (relative to variogram range) 1x 1x 2x 2x 10x Minimum number of composites 7 7 7 4 2 Maximum number of composites 12 12 16 16 16 Octant search Yes Yes Yes No No Minimum number of octant 5 3 3 Minimum number of composites per octant 1 1 1 Maximum number of composites per octant 12 12 12 Maximum number of composites per borehole 3 3 3 3 3 * OK = Ordinary Kriging 14.1.5 Block Model Validation The block model estimates were validated through: Page | 148 Wawa Gold Project Ontario, Canada June 30, 2016 Comparison of the basic statistics of ordinary kriging estimates with nearest neighbour estimates, change-of-support correction and with the original source data (Figure 14-8 to Figure 14-11) Comparison of ordinary kriging estimates against an inverse distance (power of two) estimates to assess potential impact of negative kriging weights (Figure 14-12) Visual comparison of block estimates to original borehole data on plans and sections Validation checks confirm that block estimates for all resource domains are a reasonable representation of the informing data considering the current level of geological and geostatistical understanding of the deposit. Page | 149 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-8: Validation of the Block Estimates for Domain 1 Page | 150 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-9: Validation of the Block Estimates for the Alternation Domain Page | 151 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-10: Validation of the Block Estimates for the Shear Domain Page | 152 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-11: Validation of the Block Estimates for all Resource Domains Combined Page | 153 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 14-12: Block Estimates Comparing Ordinary Kriging and Inverse Distance Estimation Results Page | 154 Wawa Gold Project Ontario, Canada June 30, 2016 14.2 Mineral Resource Classification Block model quantities and grade estimates were classified by Sébastien Bernier, P.Geo. (APGO#1847) according to the CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014). Mineral resource classification is typically a subjective concept, and industry best practices suggest that resource classification should consider the confidence in the geological continuity of the mineralized structures, the quality and quantity of exploration data supporting the estimates, the geostatistical confidence in the tonnage and grade estimates, and the continuity at the reporting cut-off grade. Appropriate classification criteria should aim at integrating these concepts to delineate regular areas at a similar classification. SRK is satisfied that the geological model constructed for the Wawa project honours the current geological information and knowledge. Over 99 percent of the exploration data informing the geology and mineral resource model is historical, with limited geological information. A review of available documentation of the historical information suggests that the location of the samples and the analytical results are generally sufficiently reliable to support resource evaluation. Their historical nature and the lack of geological information cast some uncertainty in the reliability of the historical data and thus present a risk that should be taken into consideration for classification. The mineral resource model is informed from core boreholes with pierce points density varying from a few metres to a few hundred metres in some deeper portion of the deposit. The sampling information is sufficiently dense to infer a reasonable continuity of the gold mineralization between sample points. Considering that the mineral resources are mostly informed from historical drilling information, with a lack of information on the sample preparation and analytical methods used, no analytical quality control data, and poor reproducibility in the 2011 twin drilling program, SRK considers that all modelled blocks should be classified in the Inferred category within the meaning of the CIM Definition Standards for Mineral Resources and Mineral Reserves. SRK believes that the confidence in the estimates is insufficient to allow for the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. This Inferred classification is consistent with the classification of the 2012 mineral resource model. Page | 155 Wawa Gold Project Ontario, Canada June 30, 2016 14.3 Preparation of Mineral Resource Statement CIM Definition Standards for Mineral Resources and Mineral Reserves (May 2014) defines a mineral resource as: “[A] concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.” The “reasonable prospects for eventual economic extraction” requirement generally implies that the quantity and grade estimates meet certain economic thresholds and that the mineral resources are reported at an appropriate cut-off grade that takes into account extraction scenarios and processing recoveries. SRK considers that the gold mineralization at the Wawa project is amenable to pit and underground extraction. In order to determine the quantities of material offering “reasonable prospects for eventual economic extraction” by a pit, SRK used a pit optimizer and reasonable mining assumptions to evaluate the proportions of the block model that could be “reasonably expected” to be mined from a pit. It should be noted that the pit optimization results are used solely for the purpose of testing the “reasonable prospects for economic extraction” by a pit and do not represent an attempt to define mineral reserves. There are no mineral reserves on the Wawa project. The assumptions considered to assist with the preparation of the mineral resource statement are summarized in Table 14-5. SRK considers that it is appropriate to report the mineral resources for the Wawa project at two cut-off grades: 0.40 g/t gold for pit mineral resources and 2.50 g/t gold for underground mineral resources. Table 14-5: Assumptions Considered for Reporting Cut-Off Grade Determination Parameter Production rate (tonnes per day) Mining cost (C$/tonne) General and administration (C$/tonne) Process cost (C$/tonne of ore) Gold recovery (%) Mining recovery / mining dilution (%) Gold price (US$/ounce) Exchange Rate US$:C$ Revenue factor Pit slope angle Pit 12,250 $2.05 $2.00 $13.00 95% 95 / 5 $1,250 0.95 1.00 45 Underground 2,000 $75.00 $5.00 $13.00 95% 95 / 10 $1,250 0.95 n/a n/a Page | 156 Wawa Gold Project Ontario, Canada June 30, 2016 The gold mineralization delineated by drilling is not completely closed off by drilling, especially in the center of the deposit, near surface. Further, there is gold mineralization in the hanging wall and footwall secondary structures, but its geometry remains poorly constrained. SRK considers that additional drilling is required near surface to define better the near surface gold mineralization. In this context, the conceptual pit optimization results should be reviewed with caution. Review of the pit optimization results suggests that the bulk of the modelled gold mineralization is amenable for pit extraction to a depth of approximately 300 metres. SRK considers that the gold mineralization located outside of the conceptual pit shell, but above the bottom of the pit shell may eventually be shown to be amenable for pit extraction with additional drilling. As a result, SRK considers that it is appropriate to report as pit mineral resource those blocks above cutoff and to the maximum depth about 300 metres (maximum depth of the conceptual pit shell). Furthermore, SRK considers that it is appropriate to report those blocks located below that depth above a cut-off grade of 2.50 g/t gold as underground mineral resource. The global quantity and grade estimates for the Wawa project is presented in Table 14-6. Table 14-6: Mineral Resource Statement*, Surluga-Jubilee Gold Deposit, Wawa Gold Project, Ontario, SRK Consulting (Canada) Inc., May 26, 2015 Resource Category Inferred** Inside Pit Outside Pit Underground Total * Cut-off Gold (g/t) 0.40 0.40 2.50 0.50 Quantity Grade (‘000 t) Gold (g/t) 10,239 8,630 955 19,824 Contained Metal Gold (‘000 oz) 2.05 1.07 3.73 1.71 676 298 114 1,088 Mineral resources are not mineral reserves and have not demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate. ** Pit mineral resources are reported at a cut-off grade of 0.40 g/t gold in relation with a conceptual pit shell constructed by SRK. Underground mineral resources include classified modelled blocks below the conceptual pit shell and above a cut-off grade of 2.50 g/t gold. Cut-off grades are based on a gold price of US$1,250 per once and a gold recovery of 95 percent 14.4 Sensitivity to Selection of Reporting Cut-off Grade The quantity and grade estimates are fairly sensitive to the selection of a reporting cut-off grade. To illustrate this sensitivity, block model quantities and grade estimates are presented at different cut-off grades in Table 14-7 for the pit material and Table 14-8 for the underground material. The reader is cautioned that the figures presented in the tables should not be misconstrued with Mineral Resource Statements. Page | 157 Wawa Gold Project Ontario, Canada June 30, 2016 Table 14-7: Quantities and Grade Estimates – Pit Material Cut-Off Grade g/t gold 0.2 0.3 0.4 0.5 0.6 0.7 0.8 * Quantity ‘000s tonnes 30,717 23,028 18,869 16,029 14,011 12,448 11,021 Grade g/t gold 1.09 1.38 1.61 1.81 1.99 2.16 2.34 Contained Gold ‘000 oz 1,080 1,020 974 933 897 865 831 The reader is cautioned that the figures presented in this table should not be misconstrued as a Mineral Resource Statement. The reported quantities and grades are only presented as a sensitivity of the deposit model to the selection of cut-off grade. Table 14-8: Quantities and Grade Estimates – Underground Material Cut-Off Grade g/t gold 1.5 2.0 2.5 3.0 3.5 4.0 5.0 * Quantity ‘000s tonne 2,111 1,658 955 475 255 201 128 Grade g/t gold 2.81 3.11 3.73 4.72 6.05 6.67 8.00 Contained Gold ‘000 oz 191 166 114 72 50 43 33 The reader is cautioned that the figures presented in this table should not be misconstrued as a Mineral Resource Statement. The reported quantities and grades are only presented as a sensitivity of the deposit model to the selection of cut-off grade. 15.0 ADJACENT PROPERTIES There are no claims immediately adjacent to the Wawa Gold Property, however, there are mines in the general vicinity that may have similar mineralization styles. These are described below. 15.1 Argonaut Gold Inc. Argonaut Gold Inc.’s (“Argonaut”) Magino gold project (“Magino”) is located ~40 km NE of Red Pine’s Wawa Gold Project property in Finan Township (Figure 15-1). Magino is a historic underground mine that Argonaut Page | 158 Wawa Gold Project Ontario, Canada June 30, 2016 is planning on reopening as open pit operation and has completed a Preliminary Feasibility Study in January 2014 (Doerksen et al., 2014). At Magino, gold is hosted by carbonate-quartz-tourmaline veins that occur in an ENE striking, felsic intrusions, the Webb Lake and Lovell Lake Stocks. The stock hosts about 5–10% veins. High-grade gold-bearing veins are enclosed in a strongly silica-flooded envelope of low-grade, quartz-sericitie-pyrite±gold mineralization. Doerksen et al. (2014) report a strong, structural control on the veins with 70°-striking shear zones being common. Individual quartz-veins are hosted by secondary, brittleductile fracture sets. The Qualified Person has been unable to verify the information presented in section 15.1 and the information is not indicative of mineralization on the Wawa Gold Project property that is the subject of this report. The information presented here is from the public domain. This report clearly distinguishes between the information from adjacent properties, such as the Magino gold project, and the information from the Wawa Gold Project property that is the subject of this report. Page | 159 Wawa Gold Project Ontario, Canada June 30, 2016 Figure 15-1: Map showing the locations of adjacent mines and exploration projects. 15.2 Richmont Mines Inc. Richmont Mines Inc.’s (“Richmont”) Island Gold Mine is located 83 km NE of Wawa and has been a gold producer from underground operations since 2007 (Adam and Vachon, 2014). The underground operations are accessed via a ramp and reach depths of 574 m. Between 2007 and the end of 2013, the mine produced >256,000 ounces of gold. Gold mineralization is hosted by the Goudreau Lake deformation zone and associated with strong sericitification and silicification. Narrow quartz-veins contain 2%–5% pyrite and gold. Richmont completed nearly 100,000 m of underground drilling in 2013 and estimated 251,572 t of proven resources at a grade of 5.95 g/t Au and 481,775 tonnes of probably resources at a grade of 6.16 g/t Au. Page | 160 Wawa Gold Project Ontario, Canada June 30, 2016 The Qualified Person has been unable to verify the information presented in section 15.2 and the information is not indicative of mineralization on the Wawa Gold Project property that tis the subject of this report. The information presented here is from the public domain. This report clearly distinguishes between the information from adjacent properties, such as the Island Gold Mine, and the information from the Wawa Gold Project property that is the subject of this report. 15.3 Wesdome Gold Mines Ltd. Wesdome Gold Mines Ltd. (“Wesdome”) operates the Eagle River and Mishi Mines, 50 km west of Wawa. The deposits are “Archean greenstone belt-hosted vein deposits along a regional deformation zone…” (Heather, 1986). At the Eagle River Mine, gold is hosted dominantly by east striking, sub-vertical quartz veins in a diorite stock. The average vein thickness is 2.5 m (range: 1–15 m). The quartz veins are sheared and spatially associated with sericite-chlorite alteration. Sulfides are also present, including pyrite, pyrrhotite, galena, sphalerite and chalcopyrite. The deposit is mined underground (sublevel long-hole stoping) and accessed by a ramp system and a 580 m deep shaft. The Eagle River Mine has been operated by Westdome since 1996 and has produced 961,936 ounces (as of December 31, 2013; www.wesdome.com). The Qualified Person has been unable to verify the information presented in section 15.2 and the information is not indicative of mineralization on the Wawa Gold Project property that tis the subject of this report. The information presented here is from the public domain. This report clearly distinguishes between the information from adjacent properties, such as the Island Gold Mine, and the information from the Wawa Gold Project property that is the subject of this report. 16.0 OTHER RELEVANT DATA AND INFORMATION The Qualified Persons are not aware of any other relevant data, information or explanation that would make this report understandable or not misleading. 17.0 INTERPRETATION AND CONCLUSIONS The Wawa Gold Project is located two km east of the Town of Wawa and consists of a land position of 5,184 ha. Eight past-producing mines exist on the property. Page | 161 Wawa Gold Project Ontario, Canada June 30, 2016 Gold mineralization is characterized by fine-grained visible gold in quartz veins in strongly sheared and strongly sericite altered diorite. Pyrite, pyrrhotite and minor chalcopyrite also occur in or peripheral to the high-grade zones. The structural setting on the property is complex and characterized by numerous fractures and faults of variable strikes and dips with the dominant directions being northeast to east-northeast and northwest. The Jubilee shear zone, which is the most prominent structure on the property and hosts the majority of the mineralization at the Surluga Mine, consists of a number of parallel, ~300–900 m long en-echelon segments. It strikes northeast (018–034°), dips 25–55° to the southeast and is between 9 m and 60 m wide. Red Pine completed 69.7 line-km of ground magnetic surveying over an area of 2.23 km² in February 2015 over the Surluga Mine area and 12.3 line-km over an area of 0.17 km² in October 2015 at the Sunrise area. The Surluga ground magnetic survey defined the strike of the Jubilee shear zone. Areas of increased magnetization within the Jubilee shear plane require further investigation in 3D. Linear features oriented east-west are observed in the magnetic data. The Sunrise survey delineated several subtle ENE trending magnetic linear features, including one associated with the south-eastern arm of the Surluga grade shell. Red Pine completed 3.08 line-km of Spectral Induced Polarization and Resistivity survey. The IP/Res inversion results indicate a resistive zone coincident with the silicification noted above the Jubilee shear zone. Both the resistivity and chargeability inversion results show a contrast at the Jubilee shear plane. Red Pine completed 6.3 line-km of 50 m Tx-Rx separated HLEM data and 4.2 line-km of 100 m Tx-Rx HLEM data at the Sunrise area. Eleven anomalies were identified from the 50 m Tx-Rx in-phase and quadrature profiles. In February 2015, a helicopter-towed gradient magnetic survey was completed on the Wawa Gold Project, consisting of 928 line-km and covering an area of 37 km2. During the survey operation, the magnetic base station was unable to operate at the survey site due to cold weather conditions. Diurnal magnetic data recorded by Natural Resources Canada in Ottawa suggests that no solar storms occurred during survey operations. Despite this failure, significant structures were still identified from this survey data and were used to guide gold exploration on the property. Red Pine drilled a total of 5,594.5 m in 26 diamond drill holes in 2014 and the spring of 2015. The drilling results indicate that gold mineralization is spatially associated with the Jubilee Shear plane; the mineralized body strikes north, dips 30–35° to the east and plunges to the south at 12°. Isolated pockets of Page | 162 Wawa Gold Project Ontario, Canada June 30, 2016 mineralization also occur in the hanging wall of the shear. Quartz-sericite alteration of strongly sheared diorite is intimately associated with gold mineralization. Pink K-feldspar alteration overprints the sericite alteration. Outward from the mineralization, pre-mineralization sodic alteration is prevalent. Biotite veins outside of the immediate mineralized zone and broad halos of chlorite-carbonate alteration also predate mineralization. Another drilling program in October/November 2015 focused on the Sunrise and Hornblende Shear areas. The drilling at Sunrise was insufficient to fully test the anticipated depth extensions of the veins sampled on surface. In the Hornblende Shear area mineralization subparallel to the Jubilee shear zone was drilled. The limited drilling in this area did not fully delineate the extent of the mineralization. SRK estimated a resource for the Surluga–Jubilee zone. SRK is satisfied that the geological model constructed for the Surluga–Jubilee area honours the current geological information and knowledge. Over 99% of the exploration data informing the geology and mineral resource model is historical, with limited geological information. A review of available documentation of the historical information suggests that the location of the samples and the analytical results are generally sufficiently reliable to support resource evaluation. The lack of information on analytical methods and procedures for the historical drilling data, including the absence of analytical quality control data, compounded with poor results of the 2011 twin drilling program, shows some uncertainty in the reliability of the historical analytical data. Poor reproducibility of historical results casts doubt on the reliability of the data and thus presents a risk that the quantities and grade presented in the Mineral Resource Statement are overestimated. Ronacher McKenzie and SRK did not determine any significant risks or uncertainties that could reasonably be expected to affect the reliability or confidence in the exploration information or mineral resource other than the uncertainties associated with the historic drilling, which were taken into account when SRK classified the resource. Based on the historic exploration and mining, the current exploration completed by Red Pine and the resource estimate by SRK Ronacher McKenzie conclude that significant potential exists to find additional gold mineralization on the property outside the Surluga–Jubilee area, including in the area of the Hornblende Shear. Further exploration is therefore warranted on the property outside the Surluga–Jubilee area. Page | 163 Wawa Gold Project Ontario, Canada June 30, 2016 18.0 RECOMMENDATIONS A large amount of drilling exists on the property. Only one area, the Surluga–Jubilee area, was modeled for the current resource estimation. The recommendations to advance the property focus on the parts of the property outside the Surluga–Jubilee area where additional exploration is warranted. A large amount of drilling exists in the area of the historic Surluga and Jubilee mines. The mineralization appears to be structurally controlled with the Jubilee shear zone hosting most of the mineralization in the Surluga–Jubilee area. However, prominent structures exist in other parts of the property, e.g. Parkhill Shear, Parkhill Fault and Darwin Shear. The following staged exploration program is recommended for the property. 18.1 Phase 1 18.1.1 3D Compilation Ronacher McKenzie recommend a property-wide compilation of all geological (including structural and alteration) data, assay information and geophysical data in 3D. The various datasets should be integrated in 3D and interpreted together. In particular, geophysical features should be related to geological observations through constrained inversion and analysis. An integrated approach to data interpretation will provide a model for subsequent exploration. In particular, a 3D model of the Sunrise Mickelson area will help understand a potential downward extension of the gold-bearing veins sampled at surface. 18.1.2 Structural Interpretation As part of the 3D compilation, a detailed, property-wide structural analysis of magnetic data in a geological context should be completed. This will help determine the structural controls on mineralization; in particular, it will help understand the importance of structures intersecting the dominant shear zones. 18.1.3 Rock Property Survey The 3D model will provide a geological baseline for the entire property with excellent geological control in the Surluga–Jubilee area. In order to obtain a better understanding of other areas on the property, Ronacher McKenzie recommend determining the physical rock properties (e.g. chargeability, resistivity, magnetic Page | 164 Wawa Gold Project Ontario, Canada June 30, 2016 susceptibility, etc.) using downhole probes on existing drill holes. The rock properties should be correlated with drill core information, including rock type, alteration, mineralization and structural data, and interpreted in this geological context. Furthermore, the rock property data should be combined with the existing ground and airborne geophysical data to assist in characterizing the properties of host and mineralized rock. Based on the integration of geological and geophysical downhole and surface data, the geology, mineralization and structural setting could characterized in areas where there is no drilling but only surface geophysics by extrapolating the findings from the zones where the physical rock properties were collected to adjacent unexplored areas. A more detailed analysis could be completed on the Spectral IP/Res dataset, relating the tau results with gold mineralization and determining if this is a predictive tool in locating zones of gold mineralization. Pending on the results, further IP/Res surveying on the surface and/or downhole would be warranted. Table 18-1: Cost estimate for the recommended exploration program. Item Unit No of Units 3D compilation hour 80 Structural interpretation hour 80 Physical rock property downhole survey on 20 drill holes day 25 Rock property analysis (incl. cluster analysis) hour 40 Targeting hour 20 Cost/Unit $135 $200 Total Cost $10,800 $16,000 $3,000 $75,000 $150 $135 $6,000 $2,700 $110,500 18.1.4 Quality Control Red Pine used an acceptable quality control program during the 2014 and 2015 drilling programs. It included blanks and various standards. The quality control analysis of several standards used during the fall 2015 program indicated a systematic low bias of the analysis. It is recommended that a QC analysis be completed during the drilling program so that the assay laboratory can be made aware of the bias and correct the issue. SRK recommends that Augustine submit a portion of pulp rejects from newly acquired drilling data to an umpire laboratory for check assaying. SRK also recommends that Augustine conduct additional verification of the historical sampling data with a focus on validating the historical assay results. This is especially important considering the impact of the historical data on the Mineral Resource Statement presented herein. Over 99% of the analytical data Page | 165 Wawa Gold Project Ontario, Canada June 30, 2016 informing the mineral resource model is historical and represents an important risk for this deposit. The 2011 twin drilling program showed poor reproducibility. The verifications should include a comprehensive re-sampling program of selected sections of archived core for check assaying. 18.2 Phase 2 Five holes were drilled in the Hornblende Shear area; the results from theses holes warrant follow-up drilling to determine the extent of the mineralization in the Hornblende Shear zone. This drilling program is recommended after completion of the 3D modeling of the property recommended in Phase 1 and is contingent on the positive outcome of the 3D model. The 3D model results will determine the most favourable locations and directions of the drill holes. It will also help determine the amount of drilling required for an initial characterization of the extent of the mineralization in the Hornblende Shear area. 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Page | 172 Wawa Gold Project Ontario, Canada June 30, 2016 Sears, S., 1990d, Summary report on the 1990 work program (an addendum to the 1989 report) on the Van Sickle property, of Van Ollie Explorations Ltd., Part 1: Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE0016, 196 p. Sears, S., 1990e, Report on a 1990 Drill Program on the Fickle Claims of Allied Northern Resources Ltd.: Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE0025, 30 p. Sears, S. and Gasparetto, A., 1988, Report of a work program on the Fickle property of Allied Northern Resources Ltd., Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE0027, 39 p. Sears, S. and Gasparetto, A., 1989, Report of a Work Program on Eight Claims of the Fickle Property for Allied Northern Resources Ltd., Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NW0022, 33 p. Sherman, B., 2005, Illustrated Information to Accompany an Independent Assessment of the Mineral Exploration Potential of the Surluga Property of Citadel Gold Mines Inc., at Wawa, Ontario: Report for Citadel Gold Mines Inc., 48 p. Smith, P.A. and Dvorak, Z., 1983, Dighem III Survey of the Wawa Area, Ontario for Northern Horizon Resource Corporation: Ontario Ministry of Northern Development and Mines Assessment Report No. 42C02SE0505, 83 p. Studemeister, P.A., 1983, Dunraine Property, Dunraine Mines Ltd., Wawa, Ontario, Progress Report, (various reports): Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE0041, 209 p. Studemeister, P.A., 1984, Report on the 1984 Diamond Drilling Program, Dunraine Mines Ltd.: Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE0046, 52 p. Surluga Gold Mines, Annual Report 1967, Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE0063, 11 p. Sutherland, W.D., 1995, Wawa Creek Geophysical Survey: Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NW0017, 102 p. Thomas, R.D., 1997a, Report on Heavy Mineral Sampling, Feder Claim Group, Chabanel, McMurray and Lastheels Townships, Wawa, Ontario, NTS 42C/2, 41N/15: Ontario Ministry of Northern Development and Mines Assessment Report No. 42C02SE2001, 63 p. Thomas, R.D., 1997b, Report on geochemical analyses of till samples, Feder North claim group, Chabanel and McMurray Townships, Wawa, Ontario, NTS 42C/2: Ontario Ministry of Northern Development and Mines Assessment Report No. 42C02SE2002, 36 p. Tilsley, J.E., Goldun Age Resources Inc., 1986 Exploration Program, Parkhill Property, McMurray Township, Sault Ste. Marie Mining Division, Ontario: Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE9041, 98 p. Page | 173 Wawa Gold Project Ontario, Canada June 30, 2016 Tindale, J.L., 1970a, Report on Magnetometer Survey on Property of Pango Mines Ltd., Twsp 28 & 29, Rge 23, Wawa, District of Algoma, ON. Ontario Ministry of Northern Development and Mines Assessment Report No. 42C02SE0208, 18 p. Tindale, J.L., 1970b, Report on Magnetometer Survey on Property of Pango Mines Ltd., Twsp 38, Rge 23, District of Algoma, ON. Ontario Ministry of Northern Development and Mines Assessment Report No. 41N15NE0008, 11 p. Trusler, J.R., 1970, Report on a Geologic Survey of the Property of Pango Gold Mines Ltd. Ontario Ministry of Northern Development and Mines Assessment Report No. 42C02SE0110, 37 p. Page | 174 Wawa Gold Project Ontario, Canada June 30, 2016 20.0 STATEMENT OF AUTHORSHIP This report, titled “Independent Technical Report – Wawa Gold Project, Wawa, Ontario”, dated June 30, 2016 and prepared for Augustine Ventures Inc., was completed and signed by the following authors: “signed and sealed” __________________________ Elisabeth Ronacher, PhD, P.Geo. June 30, 2016 Sudbury, ON “signed and sealed” __________________________ Jenna McKenzie, P.Geo. June 30, 2016 Toronto, ON “signed and sealed” __________________________ Sébastien Bernier June 30, 2016 Sudbury, ON Page | 175 Wawa Gold Project Ontario, Canada June 30, 2016 Appendix 1 – Certificates of Qualified Persons Page | 176 Wawa Gold Project Ontario, Canada June 30, 2016 CERTIFICATE OF QUALIFIED PERSON Elisabeth Ronacher Ronacher McKenzie Geoscience Sudbury, ON, Canada Elisabeth.Ronacher@RMGeoscience.com 705-419-1508 I, Elisabeth Ronacher, do hereby certify that: 1. I am the Principal Geologist at Ronacher McKenzie Geoscience. 2. I am responsible for sections 3–5, 7, 8, 9.3, 10 and 15 and jointly responsible for sections 1, 2, 6, 11 and 12, and 15–20 of the report titled “Independent Technical Report – Wawa Gold Project, Wawa, Ontario” dated June 30, 2016, and prepared for Augustine Ventures Inc. 3. I hold the following academic qualifications: M.Sc. Geology (1997), University of Vienna, Vienna, Austria; Ph.D. Geology (2002), University of Alberta, Edmonton, Canada. 4. I am a member in good standing of the Association of Professional Geologists of Ontario (APGO, member # 1476), the Society of Economic Geologists (SEG) and the Society for Geology Applied to Mineral Deposits (SGA). 5. I have worked on exploration projects worldwide (including Canada, Mongolia, China, Austria) and on a variety of commodities including Au, Cu, base-metal, Cu-Ni PGE and U and deposit types since 1997. 6. I have read the definition of “Qualified Person” set out in the National Instrument 43-101 (“NI 43101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a “Qualified Person” for the purposes of NI 43-101. 7. I visited the property on January 19 and 20, 2015, and on February 17 and 18, 2016. 8. I am independent of the issuer as described in section 1.5 of the National Instrument 43-101. 9. I have no prior involvement with the property that is subject of this report other than having completed a Technical Report for Red Pine Exploration Inc. on the same property in June 2015. 10. I have read the National Instrument 43-101 and this report has been prepared in compliance with this Instrument. 11. As of the date of this technical report, to the best of my knowledge, information, and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Dated this 30th Day of June, 2016 “Signed and Sealed” ___________________________ Elisabeth Ronacher, Ph.D., P.Geo. Ronacher McKenzie Geoscience Wawa Gold Project Ontario, Canada June 30, 2016 CERTIFICATE OF QUALIFIED PERSON Jenna McKenzie Ronacher McKenzie Geoscience Toronto, ON, Canada Jenna.McKenzie@RMGeoscience.com 647-378-2648 I, Jenna McKenzie, do hereby certify that: 1. I am the Principal Geophysicist at Ronacher McKenzie Geoscience. 2. I am responsible for sections 9.1, 9.2, 11.4, 11.5, 12.4 and jointly responsible for sections 1, 2, 6 and 17-20 of the report titled “Independent Technical Report – Wawa Gold Project, Wawa, Ontario” dated June 30, 2016, and prepared for Augustine Ventures Inc. 3. I hold the following academic qualifications: Hons.B.Sc. Applied Physics – Geophysics (2002), University of Toronto, Toronto, ON, Canada. 4. I am a member in good standing of the Association of Professional Geologists of Ontario (APGO, member # 1653), the Canadian Exploration Geophysical Society (KEGS) and the Society of Exploration Geophysicists (SEG) 5. I have worked on exploration projects worldwide (including Canada, USA, Mexico, Dominican Republic, Angola, Democratic Republic of Congo, Zambia, Republic of South Africa, Russia, Turkey and Indonesia). I have worked on a variety of commodities including porphyry-copper, gold, diamond, Ni-Cu-PGE and potash since 2001. 6. I have read the definition of “Qualified Person” set out in the National Instrument 43-101 (“NI 43101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfil the requirements to be a “Qualified Person” for the purposes of NI 43-101. 7. I have not visited the property. 8. I am independent of the issuer as described in section 1.5 of the National Instrument 43-101. 9. I have no prior involvement with the property that is subject of this report other than having completed a Technical Report for Red Pine Exploration Inc. on the same property in June 2015. 10. I have read the National Instrument 43-101 this report has been prepared in compliance with this Instrument. 11. That, as of the date of this technical report, to the best of my knowledge, information, and belief, the technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. Dated this 30th Day of June, 2016 “Signed and Sealed” ___________________________ Jenna McKenzie, P.Geo. Ronacher McKenzie Geoscience Wawa Gold Project Ontario, Canada June 30, 2016 CERTIFICATE OF QUALIFIED PERSON To accompany the technical report entitled Independent Technical Report Wawa Gold Project, Wawa, Ontario and dated June 30, 2016. I, Sébastien B. Bernier, do hereby certify that: 1) I am a Principal Consultant (Resource Geology) with the firm of SRK Consulting (Canada) Inc. (SRK) with an office at Suite 101, Regent Street South, Sudbury, Ontario, Canada; 2) I am a graduate of the University of Ottawa in 2001 with BSc (Honours) Geology and I obtained a MSc degree in Geology from Laurentian University in 2003. I have practiced my profession continuously since 2002. I worked in exploration and commercial production of base and precious metals mainly in Canada. I have been focussing my career on geostatistical studies, geological modelling and resource modelling of base and precious metals since 2004; 3) I am a Professional Geoscientist registered with the Association of Professional Geoscientists of Ontario (APGO#1847) and with the Ordre des Géologues du Québec (OGQ# 1034) ; 4) I have personally visited the project area between January 19 and 20, 2015; 5) I have read the definition of qualified person set out in National Instrument 43-101 and certify that by virtue of my education, affiliation to a professional association, and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of National Instrument 43-101 and this technical report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1; 6) I am independent of the issuer as defined in Section 1.5 of National Instrument 43-101; 7) I have co-authored parts of sections 1, 2, 11, 12, 14, 17, 18, 19 and 20 and Appendix 3; 8) I have had prior involvement with the subject property. I have completed and co-signed a Technical Report dated June 5, 2015 for Red Pine Exploration Inc on the subject property. The Mineral Resource Statement dated May 26, 2015 remains current as no new information acquired since would affect the Mineral Resource Statement; 9) I have read National Instrument 43-101 and confirm that this technical report has been prepared in compliance therewith; 10) SRK Consulting (Canada) Inc. was retained by Augustine Ventures Inc, to restate the Mineral Resource Statement of the Wawa Gold Project and contribute to a Technical Report prepared by Ronacher Mckenzie Geoscience, as part of the property acquisition requirement. 11) I have not received, nor do I expect to receive, any interest, directly or indirectly, in the Wawa project or securities of Augustine Ventures Inc; 12) That, as of the date of this certificate, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. “signed and sealed” Sudbury, Ontario Sébastien B. Bernier, PGeo (APGO#1847) June 30, 2016 Principal Consultant (Resource Geology) Wawa Gold Project Ontario, Canada June 30, 2016 Appendix 2 – List of Patented Tenures Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry DJ7 Part of 31169Fee Simple 0255 Absolute NA Yes DJ7 31169-0255 Wawa GP Inc. Yes DJ7 311690255 Wawa GP Inc. Yes 5% NSR, Weiss Estate NA DJ8 Part of 31169Fee 0255 Simple Absolute NA Yes DJ8 31169-0255 Wawa GP Inc. Yes DJ8 311690255 Wawa GP Inc. Yes 5% NSR, Weiss NA NA Yes R738 31169-0221 Wawa GP Inc. No R738 311690642 Wawa GP Inc. No 5% NSR, Weiss NA 5% NSR, Weiss NA R738 Fee Simple Absolute 31169-0221 SSM138 Part of 31169Fee Simple 0277 Absolute NA Yes SSM138 31169-0277 Wawa GP Inc. No SSM138 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM138 Part of 31169Fee Simple 0643 Absolute NA No SSM138 31169-0277 Wawa GP Inc. Yes SSM138 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM139 Part of 31169Fee Simple 0277 Absolute NA Yes SSM139 31169-0277 Wawa GP Inc. No SSM139 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM139 Part of 31169Fee Simple 0643 Absolute NA No SSM139 31169-0277 Wawa GP Inc. Yes SSM139 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM140 Part of 31169Fee Simple 0277 Absolute NA Yes SSM140 31169-0277 Wawa GP Inc. No SSM140 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM140 Part of 31169Fee Simple 0643 Absolute NA No SSM140 31169-0277 Wawa GP Inc. Yes SSM140 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM141 Part of 31169Fee Simple 0277 Absolute NA Yes SSM141 31169-0277 Wawa GP Inc. No SSM141 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM141 Part of 31169Fee Simple 0643 Absolute NA No SSM141 31169-0277 Wawa GP Inc. Yes SSM141 311690643 Wawa GP Inc. and Citabar Limited Partnership No NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM176 PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Part of 31169Fee Simple 0277 Absolute NA Yes SSM176 31169-0277 Wawa GP Inc. No SSM176 311690643 Wawa GP Inc. and Citabar Limited Partnership No 5% NSR, Weiss NA SSM176 Part of 31169Fee Simple 0643 Absolute NA No SSM176 31169-0277 Wawa GP Inc. Yes SSM176 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM177* Part of 31169Fee Simple 0277 Absolute NA Yes SSM177 31169-0277 Wawa GP Inc. No SSM177 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM177 Part of 31169Fee Simple 0643 Absolute NA No SSM177 31169-0277 Wawa GP Inc. Yes SSM177 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM178 Part of 31169Fee Simple 0278 Absolute NA Yes SSM178 31169-0278 Wawa GP Inc. No SSM178 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA SSM182 Part of 31169Fee 0277 Simple Absolute NA Yes SSM182 31169-0277 Wawa GP Inc. No SSM182 311690643 Wawa GP Inc. and Citabar Limited Partnership No 5% NSR, Weiss NA SSM182 Part of 31169Fee Simple 0643 Absolute NA No SSM182 31169-0277 Wawa GP Inc. Yes SSM182 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM183 Part of 31169Fee Simple 0277 Absolute NA Yes SSM183 31169-0277 Wawa GP Inc. No SSM183 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM183 Part of 31169Fee Simple 0643 Absolute NA No SSM183 31169-0277 Wawa GP Inc. Yes SSM183 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM191 Part of 31169Fee Simple 0277 Absolute NA Yes SSM191 31169-0277 Wawa GP Inc. No SSM191 311690643 Wawa GP Inc. and Citabar Limited Partnership No NA 5% NSR, Weiss NA NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM191 PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Part of 31169Fee Simple 0643 Absolute NA No SSM191 31169-0277 Wawa GP Inc. Yes SSM191 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM194 Part of 31169Fee Simple 0277 Absolute NA Yes SSM194 31169-0277 Wawa GP Inc. No SSM194 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM194 Part of 31169Fee Simple 0643 Absolute NA No SSM194 31169-0277 Wawa GP Inc. Yes SSM194 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM195 Part of 31169Fee Simple 0277 Absolute NA Yes SSM195 31169-0277 Wawa GP Inc. No SSM195 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM195 Part of 31169Fee Simple 0643 Absolute NA No SSM195 31169-0277 Wawa GP Inc. Yes SSM195 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM201 Part of 31169Fee Simple 0277 Absolute NA Yes SSM201 31169-0277 Wawa GP Inc. No SSM201 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM201 Part of 31169Fee Simple 0643 Absolute NA No SSM201 31169-0277 Wawa GP Inc. Yes SSM201 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM212 Part of 31196Fee Simple 0279 Absolute NA Yes SSM212 31196-0279 Wawa GP Inc. No SSM212 311960695 Wawa GP Inc. No SSM212 Part of 31196Fee 0695 Simple Absolute NA No SSM212 31169-0279 Wawa GP Inc. Yes SSM212 311960695 Wawa GP Inc. Yes SSM218 Part of 31169Fee 0278 Simple Absolute NA Yes SSM218 31169-0278 Wawa GP Inc. No SSM218 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA SSM219 Part of 31169Fee 0278 Simple Absolute NA Yes SSM219 31169-0278 Wawa GP Inc. No SSM219 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM220 PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Part of 31169Fee Simple 0278 Absolute NA Yes SSM220 31169-0278 Wawa GP Inc. No SSM220 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA SSM221 Part of 31169Fee 0278 Simple Absolute NA Yes SSM221 31169-0278 Wawa GP Inc. No SSM221 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA SSM223 Part of 31169Fee 0278 Simple Absolute NA Yes SSM223 31169-0278 Wawa GP Inc. No SSM223 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA SSM224 Part of 31169Fee 0277 Simple Absolute NA Yes SSM224 31169-0277 Wawa GP Inc. No SSM224 311690643 Wawa GP Inc. and Citabar Limited Partnership No 5% NSR, Weiss NA SSM224 Part of 31169Fee Simple 0643 Absolute NA No SSM224 31169-0277 Wawa GP Inc. Yes SSM224 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM2401 Part of 31169Fee Simple 0280 Absolute NA Yes SSM2401 31169-0280 Wawa GP Inc. Yes SSM2401 311690280 Wawa GP Inc. No 1/4% NSR Dunraine; Citadel/Gibson 1/2 interest NA SSM2402 Part of 31169Fee Simple 0280 Absolute NA Yes SSM2402 31169-0280 Wawa GP Inc. Yes SSM2402 311690280 Wawa GP Inc. No 1/4% NSR Dunraine; Citadel/Gibson 1/2 interest NA SSM2403 Part of 31169Fee Simple 0280 Absolute NA Yes SSM2403 31169-0280 Wawa GP Inc. Yes SSM2402 311690280 Wawa GP Inc. No 1/4% NSR Dunraine; Citadel/Gibson 1/2 interest NA SSM241 Part of 31169Fee Simple 0277 Absolute NA Yes SSM241 31169-0277 Wawa GP Inc. No SSM241 311690643 Wawa GP Inc. and Citabar Limited Partnership No 5% NSR, Weiss NA SSM241 Part of 31169Fee Simple 0643 Absolute NA No SSM241 31169-0277 Wawa GP Inc. Yes SSM241 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM242 Part of 31169Fee Simple 0277 Absolute NA Yes SSM242 31169-0277 Wawa GP Inc. No SSM242 311690643 Wawa GP Inc. and Citabar Limited Partnership No NA NA 5% NSR, Weiss NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM242 PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Part of 31169Fee Simple 0643 Absolute NA No SSM242 31169-0277 Wawa GP Inc. Yes SSM242 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM243 Part of 31169Fee Simple 0277 Absolute NA Yes SSM243 31169-0277 Wawa GP Inc. No SSM243 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM243 Part of 31169Fee Simple 0643 Absolute NA No SSM243 31169-0277 Wawa GP Inc. Yes SSM243 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM244 Part of 31169Fee Simple 0277 Absolute NA Yes SSM244 31169-0277 Wawa GP Inc. No SSM244 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM244 Part of 31169Fee Simple 0643 Absolute NA No SSM244 31169-0277 Wawa GP Inc. Yes SSM244 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM245 Part of 31169Fee Simple 0277 Absolute NA Yes SSM245 31169-0277 Wawa GP Inc. No SSM245 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM245 Part of 31169Fee Simple 0643 Absolute NA No SSM245 31169-0277 Wawa GP Inc. Yes SSM245 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM246 Part of 31169Fee Simple 0277 Absolute NA Yes SSM246 31169-0277 Wawa GP Inc. No SSM246 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM246 Part of 31169Fee Simple 0643 Absolute NA No SSM246 31169-0277 Wawa GP Inc. Yes SSM246 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM247 Part of 31169Fee Simple 0277 Absolute NA Yes SSM247 31169-0277 Wawa GP Inc. No SSM247 311690643 Wawa GP Inc. and Citabar Limited Partnership No Agreement Obligations, Recipient(s) Expiry NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM247 PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Part of 31169Fee Simple 0643 Absolute NA No SSM247 31169-0277 Wawa GP Inc. Yes SSM247 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM248 Part of 31169Fee Simple 0277 Absolute NA Yes SSM248 31169-0277 Wawa GP Inc. No SSM248 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM248 Part of 31169Fee Simple 0643 Absolute NA No SSM248 31169-0277 Wawa GP Inc. Yes SSM248 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM250 Part of 31169Fee Simple 0277 Absolute NA Yes SSM250 31169-0277 Wawa GP Inc. No SSM250 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM250 Part of 31169Fee Simple 0643 Absolute NA No SSM250 31169-0277 Wawa GP Inc. Yes SSM250 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM252 Part of 31169Fee Simple 0277 Absolute NA Yes SSM252 31169-0277 Wawa GP Inc. No SSM252 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM252 Part of 31169Fee Simple 0643 Absolute NA No SSM252 31169-0277 Wawa GP Inc. Yes SSM252 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM257 Part of 31169Fee Simple 0278 Absolute NA Yes SSM257 31169-0278 Wawa GP Inc. No SSM257 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA SSM258 Part of 31169Fee 0277 Simple Absolute NA Yes SSM258 31169-0277 Wawa GP Inc. No SSM258 311690643 Wawa GP Inc. and Citabar Limited Partnership No 5% NSR, Weiss NA SSM258 Part of 31169Fee Simple 0643 Absolute NA No SSM258 31169-0277 Wawa GP Inc. Yes SSM258 311690643 Wawa GP Inc. and Citabar Limited Partnership No NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA 5% NSR, Weiss NA NA NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Timber Rights Agreement Obligations, Recipient(s) Expiry SSM2583 Fee Simple Absolute 31169-0549 NA Yes SSM2583 31169-0549 Wawa GP Inc. Yes SSM2583 311690549 Wawa GP Inc. No 1% NSR, Davey NA SSM259 Part of 31169Fee Simple 0277 Absolute NA Yes SSM259 31169-0277 Wawa GP Inc. No SSM259 311690643 Wawa GP Inc. and Citabar Limited Partnership No 5% NSR, Weiss NA SSM259 Part of 31169Fee Simple 0643 Absolute NA No SSM259 31169-0277 Wawa GP Inc. Yes SSM259 311690643 Wawa GP Inc. and Citabar Limited Partnership No SSM261 Part of 31196Fee Simple 0279 Absolute NA Yes SSM261 31196-0279 Wawa GP Inc. No SSM261 311690695 Wawa GP Inc. No SSM261 Part of 31196Fee 0695 Simple Absolute NA No SSM261 31169-0279 Wawa GP Inc. Yes SSM261 311690695 Wawa GP Inc. Yes SSM262 Part of 31196Fee 0279 Simple Absolute NA Yes SSM262 31169-0279 Wawa GP Inc. No SSM262 311690695 Wawa GP Inc. No SSM262 Part of 31196Fee 0695 Simple Absolute NA No SSM262 31169-0279 Wawa GP Inc. Yes SSM262 311690695 Wawa GP Inc. Yes SSM3047 Fee Simple Absolute NA Yes SSM3047 31169-0281 The Estate of Lloyd A. Van Sickle Yes SSM3047 311690281 The Estate of Lloyd A. Van Sickle No SSM3089 Part of 31169Fee Simple 0648 Absolute NA Yes SSM3089 31169-0648 Wawa GP Inc. Yes SSM3089 311690648 Wawa GP Inc. No NA SSM3090 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3090 31169-0648 Wawa GP Inc. Yes SSM3090 311690648 Wawa GP Inc. No NA SSM3104 Part of 31169Fee 0289 Simple Absolute NA No SSM60184 31169-0205 Wawa GP Inc. Yes SSM3104 311690289 Wawa GP Inc. No NA SSM3106 Part of 31169Fee 0289 Simple Absolute NA No SSM60185 31169-0205 Wawa GP Inc. Yes SSM3106 311690289 Wawa GP Inc. No NA SSM3107 Part of 31169Fee 0289 Simple Absolute NA No SSM60363 31169-0205 Wawa GP Inc. Yes SSM3107 311690289 Wawa GP Inc. No NA 31169-0281 Surface Surface Rights Rights PIN Title Holder NA 5% NSR, Weiss NA NA 5% NSR, Weiss Estate NA NA 2.5% Diamonds, 1% other NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID SSM3108 Part of 31169Fee Simple 0289 Absolute SSM3109 Fee Simple Absolute NA No SSM60362 31169-0205 Wawa GP Inc. Yes SSM3108 311690289 Wawa GP Inc. No NA Yes SSM3109 31169-0286 Wawa GP Inc. Yes SSM3109 311690286 Wawa GP Inc. No 1/4% NSR, Dunraine NA SSM3124 Part of 31169Fee Simple 0284 Absolute NA Yes SSM3124 31169-0284 Wawa GP Inc. Yes SSM3124 311690284 Wawa GP Inc. No 1/4% NSR, Dunraine NA SSM3129 Part of 31169Fee 0284 Simple Absolute NA Yes SSM3129 31169-0284 Wawa GP Inc. Yes SSM3129 311690284 Wawa GP Inc. No 1/4% NSR, Dunraine NA SSM3130 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3130 31169-0649 Wawa GP Inc. Yes SSM3130 311690649 Wawa GP Inc. No NA SSM3131 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3131 31169-0649 Wawa GP Inc. Yes SSM3131 311690649 Wawa GP Inc. No NA SSM3132 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3132 31169-0649 Wawa GP Inc. Yes SSM3132 311690649 Wawa GP Inc. No NA SSM3133 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3133 31169-0649 Wawa GP Inc. Yes SSM3133 311690649 Wawa GP Inc. No NA SSM3134 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3134 31169-0649 Wawa GP Inc. Yes SSM3134 311690649 Wawa GP Inc. No NA SSM3135 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3135 31169-0649 Wawa GP Inc. Yes SSM3135 311690649 Wawa GP Inc. No NA SSM3136 Fee Simple Absolute NA Yes SSM3136 31169-0283 The Estate of Lloyd A. Van Sickle Yes SSM3136 311690283 The Estate of Lloyd A. Van Sickle No SSM3191 Part of 31169Fee Simple 0648 Absolute NA Yes SSM3191 31169-0648 Wawa GP Inc. Yes SSM3191 311690648 Wawa GP Inc. No NA SSM3192 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3192 31169-0648 Wawa GP Inc. Yes SSM3192 311690648 Wawa GP Inc. No NA 31169-0286 31169-0283 Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry NA 2.5% Diamonds, 1% other NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM3193 SSM3194 SSM321118 Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Part of 31169Fee Simple 0648 Absolute NA Yes SSM3193 31169-0648 Wawa GP Inc. Yes SSM3193 311690648 Wawa GP Inc. No NA Part of 31169Fee 0648 Simple Absolute NA Yes SSM3194 31169-0648 Wawa GP Inc. Yes SSM3194 311690648 Wawa GP Inc. No NA Olie Van Sickle and the Estate of Lloyd Allen Van Sickle and The Corporation of the Municipality of Wawa No Lease PIN 31169-0202 107487 Yes SSM321118 31169-0202 Surface Surface Rights Rights PIN Title Holder Partial SSM321118 31169Olie Van 0202 and Sickle and (excepting and Y308 31169the Estate of PT 3 on 1R0265 Lloyd Allen 4860 Van Sickle (Y308) Timber Rights Agreement Obligations, Recipient(s) 2.5% diamonds + 1% other, Van Sickle Expiry 31-Jan-25 SSM3231 Part of 31169Fee Simple 0648 Absolute NA Yes SSM3231 31169-0648 Wawa GP Inc. Yes SSM3231 311690648 Wawa GP Inc. No NA SSM3232 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3232 31169-0648 Wawa GP Inc. Yes SSM3232 311690648 Wawa GP Inc. No NA SSM3256 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3256 31169-0648 Wawa GP Inc. Yes SSM3256 311690648 Wawa GP Inc. No NA SSM3301 Part of 31169Fee 0295 Simple Absolute NA Yes SSM3301 31169-0295 Wawa GP Inc. Yes SSM3301 311690295 Wawa GP Inc. No SSM3306 Fee Simple Absolute NA No SSM430232 33169-0213 Wawa GP Inc. Yes SSM3306 311690307 Wawa GP Inc. No NA SSM3307 Part of 31169Fee Simple 0308 Absolute NA No SSM430235 33169-0214 Wawa GP Inc. Yes SSM3307 311690308 Wawa GP Inc. No NA SSM3378 Part of 31169Fee 0308 Simple Absolute NA No SSM430234 33169-0214 Wawa GP Inc. Yes SSM3378 311690308 Wawa GP Inc. No NA SSM3379 Part of 31169Fee 0308 Simple Absolute NA No SSM430233 33169-0214 Wawa GP Inc. Yes SSM3379 311690308 Wawa GP Inc. No NA 31169-0307 1/4% NSR, Dunraine NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID SSM64595 Lease Part of 311690205 NA Yes SSM64595 31169-0205 Wawa GP Inc. No SSM3399 311690291 John A. McPhail, John A. Hussey, and Lanthrop Henry Peters No 31-May-26 SSM3400 Part of 31169Fee Simple 0649 Absolute NA Yes SSM3400 31169-0649 Wawa GP Inc. Yes SSM3400 311690649 Wawa GP Inc. No NA SSM3401 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3401 31169-0649 Wawa GP Inc. Yes SSM3401 311690649 Wawa GP Inc. No NA SSM3406 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3406 31169-0649 Wawa GP Inc. Yes SSM3406 311690649 Wawa GP Inc. No NA SSM3407 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3407 31169-0649 Wawa GP Inc. Yes SSM3407 311690649 Wawa GP Inc. No NA SSM3408 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3408 31169-0649 Wawa GP Inc. Yes SSM3408 311690649 Wawa GP Inc. No NA SSM3455 Part of 31169Fee 0649 Simple Absolute NA Yes SSM3455 31169-0649 Wawa GP Inc. Yes SSM3455 311690649 Wawa GP Inc. No NA SSM3470 Part of 31169Fee 0295 Simple Absolute NA Yes SSM3470 31169-0295 Wawa GP Inc. No SSM3470 311690872 Wawa GP Inc. No SSM3470 Part of 31169Fee 0872 Simple Absolute NA No SSM3470 31169-0295 Wawa GP Inc. Yes SSM3470 311690872 Wawa GP Inc. No SSM3471 Part of 31169Fee 0295 Simple Absolute NA Yes SSM3471 31169-0295 Wawa GP Inc. Yes SSM3471 311690295 Wawa GP Inc. No 1/4% NSR, Dunraine NA SSM3493 Fee Simple Absolute NA Yes SSM3493 31169-0285 Wawa GP Inc. Yes SSM3493 311690285 Wawa GP Inc. No 1/4% NSR, Dunraine NA SSM3531 Part of 31169Fee Simple 0648 Absolute NA Yes SSM3531 31169-0648 Wawa GP Inc. Yes SSM3531 311690648 Wawa GP Inc. No NA SSM3538 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3538 31169-0648 Wawa GP Inc. Yes SSM3538 311690648 Wawa GP Inc. No NA 31169-0285 Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) 1/4% NSR, Dunraine Expiry NA NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM3555 Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Part of 31169Fee Simple 0648 Absolute NA Yes SSM3555 31169-0648 Wawa GP Inc. Yes SSM3555 311690648 Wawa GP Inc. No NA SSM3556 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3556 31169-0648 Wawa GP Inc. Yes SSM3556 311690648 Wawa GP Inc. No NA SSM3557 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3557 31169-0648 Wawa GP Inc. Yes SSM3557 311690648 Wawa GP Inc. No NA SSM3558 Part of 31169Fee 0648 Simple Absolute NA Yes SSM3558 31169-0648 Wawa GP Inc. Yes SSM3558 311690648 Wawa GP Inc. No NA SSM3565 Part of 31169Fee 0297 Simple Absolute NA Yes SSM3565 31169-0297 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes SSM3565 311690297 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.5% Diamonds + 1% other, Van Sickle NA SSM3566 Part of 31169Fee Simple 0297 Absolute NA Yes SSM3566 31169-0297 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes SSM3566 311690297 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.5% Diamonds + 1% other, Van Sickle NA SSM3678 Fee Simple Absolute 31169-0304 NA Yes SSM3678 31169-0304 Wawa GP Inc. Yes SSM3678 311690304 Wawa GP Inc. No 1% NSR, Davey; 1% Caicco NA ES170 Fee Simple Absolute 31169-0268 NA Yes ES170 31169-0268 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes ES170 311690268 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.5% Diamonds + 1% other, Van Sickle NA NA Yes SSM4020 31169-0648 Wawa GP Inc. Yes SSM4020 311690648 Wawa GP Inc. No NA Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes SSM407822 311690201 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 31-Jan-25 SSM4020 SSM407822 PIN Part of 31169Fee Simple 0648 Absolute Lease 31169-0201 107487 Yes SSM407822 31169-0201 Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Y330 but recorded as SSM4141 Fee Simple Absolute 31169-0306 NA Yes Y330 31169-0306 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes Y330 311690306 Y331 but recorded as SSM4142 Fee Simple Absolute 31169-0305 NA Yes Y331 31169-0305 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes Y331 ES171 but recorded as SSM4192 Fee Simple Absolute 31169-0309 NA Yes ES171 31169-0309 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes SSM430232 Lease 311690213(LT) Part of 108850 Yes SSM430232 31169-0213 Wawa GP Inc. SSM430233 Lease Part of 31169- Part of 0214 108850 Yes SSM430233 31169-0214 SSM430234 Lease Part of 31169- Part of 0214 108850 Yes SSM430258 Lease 31169-0216 Part of 109445 Yes SSM4316 Fee Simple Absolute 31169-0318 NA Yes SSM4316 SSM4317 Part of 31169Fee 0648 Simple Absolute NA Yes SSM4318 Part of 31169Fee 0648 Simple Absolute NA SSM433 Fee Simple Absolute NA 31169-0270 Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.5% Diamonds + 1% other, Van Sickle NA 311690305 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.5% Diamonds + 1% other, Van Sickle NA ES171 311690309 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.5% Diamonds + 1% other, Van Sickle NA No SSM3306 311690307 Wawa GP Inc. No 31-Aug-32 Wawa GP Inc. No SSM3379 311690308 Wawa GP Inc. No 31-Aug-32 SSM430234 31169-0214 Wawa GP Inc. No SSM3378 311690308 Wawa GP Inc. No 31-Aug-32 SSM430258 31169-0216 Wawa GP Inc. Yes SSM430258 311690216 Wawa GP Inc. No 31-May-33 31169-0318 Wawa GP Inc. Yes SSM4316 311690318 Wawa GP Inc. No NA SSM4317 31169-0648 Wawa GP Inc. Yes SSM4317 311690648 Wawa GP Inc. No NA Yes SSM4318 31169-0648 Wawa GP Inc. Yes SSM4318 311690648 Wawa GP Inc. No NA Yes SSM433 31169-0270 Wawa GP Inc. Yes SSM433 311690270 Wawa GP Inc. Yes NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry SSM4390 Fee Simple Absolute 31169-0316 NA Yes SSM4390 31169-0316 Wawa GP Inc. Yes SSM4390 311690316 Wawa GP Inc. No 1% NSR, Davey NA SSM4391 Part of 31169Fee Simple 0317 Absolute NA Yes SSM4391 31169-0317 Wawa GP Inc. Yes SSM4391 311690317 Wawa GP Inc. No 1% NSR, Davey NA SSM4392 Part of 31169Fee 0317 Simple Absolute NA Yes SSM4392 31169-0317 Wawa GP Inc. Yes SSM4392 311690317 Wawa GP Inc. No 1% NSR, Davey NA SSM4507 Part of 31169Fee 0648 Simple Absolute NA Yes SSM4507 31169-0648 Wawa GP Inc. Yes SSM4507 311690648 Wawa GP Inc. No NA SSM469255 Lease Part of 31169- Part of 0217 109446 Yes SSM469255 31169-0217 Wawa GP Inc. No None None Crown No 31-May-33 SSM469256 Lease Part of 31169- Part of 0217 109446 Yes SSM469256 31169-0217 Wawa GP Inc. No None None Crown No 31-May-33 SSM469257 Lease 31169-0215 Part of 109445 Yes SSM469257 31169-0215 Wawa GP Inc. Yes SSM469257 311690215 Wawa GP Inc. No 31-May-33 SSM542856 Lease 31169-0200 107417 Yes SSM542856 31169-0200 Wawa GP Inc. No JD3 311690287 The Corporation of the Township of Michipicoten No 1/4% NSR, Dunraine 31-Jul-23 SSM58 Fee Simple Absolute 31169-0276 Yes Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes SSM58 311690276 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.5% Diamonds + 1% other, Van Sickle NA SSM581686 Lease No None None Crown No 1/4% NSR Dunraine 31-Jan-31 SSM59662 Fee Simple Absolute Wawa GP Inc. Wawa GP Inc. 311691824 Wawa GP Inc. No NA SSM59663 Lease Wawa GP Inc. No 31-May-26 SSM59664 Lease 311690203 None Crown No 31-May-26 NA SSM58 31169-0276 31169-0210 108502 Yes SSM581686 31169-0210 31169-1824 Yes SSM59662 31169-1824 Yes SSM59663 31169-0203 Yes SSM59664 31169-0205 NA PIN 31169- 107760 0203 Part of 31169- 107761 0205 Wawa GP Inc. Wawa GP Inc. Yes except SSM59662 SR over transmissio n lines Yes SSM59663 No None Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Timber Rights Agreement Obligations, Recipient(s) Expiry SSM60 Fee Simple Absolute 31169-0274 NA Yes SSM60 31169-0274 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes SSM60 311690274 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) No 2.0% NSR Diamonds, 1% NSR Van Sickle Claims held under option NA SSM60183 Lease Yes SSM60183 31169-0205 Wawa GP Inc. No SSM3105 311690289 Wawa GP Inc. No SSM60184 Lease 31169-0205 Part of 107761 Yes SSM60184 31169-0205 Wawa GP Inc. No SSM3104 311690289 Wawa GP Inc. No SSM60185 Lease 31169-0205 Part of 107761 Yes SSM60185 31169-0205 Wawa GP Inc. No SSM3106 311690289 Wawa GP Inc. No 31-May-26 SSM60942 Fee Simple Absolute 31169-1809 NA Yes SSM60942 31169-1809 Wawa GP Inc. Yes SSM60942 311691809 Wawa GP Inc. No NA SSM61530 Lease 31169-0212 108852 Yes SSM61530 31169-0212 Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Yes SSM61530 Wawa GP Inc. No 31-Jul-32 SSM61531 Lease Yes SSM61531 31169-0204 SSM61532 Lease Part of PIN 107760 31169-0204 Part of 31169- Part of 0206 107761 Wawa GP Inc. No 31-May-26 Yes SSM61532 31169-0206 Crown No 31-May-26 SSM61533 Lease Part of 31169- Part of 0206 107761 Yes SSM61533 31169-0206 Wawa GP Inc. No None None Crown No 31-May-26 SSM61954 Lease Part of 31169- Part of 0206 107761 Yes SSM61954 31169-0206 Wawa GP Inc. No None None Crown No 31-May-26 SSM61955 Lease Part of 31169- Part of 0206 107761 Yes SSM61955 31169-0206 Wawa GP Inc. No None None Crown No 31-May-26 SSM61956 Lease Part of PIN Part of 31169-0206 107761 Yes SSM61956 31169-0206 Wawa GP Inc. No None None Crown No 31-May-26 SSM61957 Lease 31169-0211 108852 Yes SSM61957 31169-0211 No None None Crown No 31-Jul-32 Lease Part of PIN 107760 31169-0204 Yes SSM61958 31169-0204 Wawa GP Inc. Wawa GP Inc. SSM61958 Yes SSM61958 311690204 Wawa GP Inc. No 31-May-26 Part of 31169- Part of 0205 107761 Yes No Surface Surface Rights Rights PIN Title Holder 311690212 SSM61531 PIN 311690204 None None 31-May-26 Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM61959 Lease SSM61960 Lease SSM61961 PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Part of PIN 107760 31169-0204 Part of PIN Part of 31169-0206 107761 Yes SSM61959 31169-0204 Yes SSM61959 Yes SSM61960 31169-0206 Wawa GP Inc. Wawa GP Inc. No Lease Part of PIN Part of 31169-0206 107761 Yes SSM61961 31169-0206 Wawa GP Inc. SSM61962 Lease Part of PIN Part of 31169-0206 107761 Yes SSM61962 31169-0206 SSM61963 Lease Yes SSM61963 31169-0204 SSM61964 Lease Part of PIN 107760 31169-0204 Part of PIN Part of 31169-0206 107761 Yes SSM61964 31169-0206 SSM61965 Lease 107760 Yes SSM61965 31169-0204 SSM61966 Lease 107760 Yes SSM61966 31169-0204 SSM61967 Lease 107760 Yes SSM61967 31169-0204 SSM61968 Lease 107760 Yes SSM61968 31169-0204 SSM61969 Lease 107761 Yes SSM61969 31169-0206 SSM61970 Lease 107761 Yes SSM61970 31169-0206 SSM61971 Lease 107760 Yes SSM61971 31169-0204 SSM61972 Lease 107760 Yes SSM61972 31169-0204 SSM6247 in PIN, SSM64702 in lease Lease Part of PIN 31169-0204 Part of PIN 31169-0204 Part of PIN 31169-0204 Part of PIN 31169-0204 Part of PIN 31169-0206 Part of PIN 31169-0206 Part of PIN 31169-0204 Part of PIN 31169-0204 31169-0207 107761 Yes SSM6247 31169-0207 SSM64700 Lease 31169-0196 108913 Yes SSM64700 31169-0196 SSM64701 Lease 31169-0197 108912 Yes SSM64701 31169-0197 Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Wawa GP Inc. No 31-May-26 None 311690204 None Crown No 31-May-26 No None None Crown No 31-May-26 Wawa GP Inc. No None None Crown No 31-May-26 Wawa GP Inc. Wawa GP Inc. Yes SSM61963 Wawa GP Inc. No 31-May-26 No None 311690204 None Crown No 31-May-26 Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Yes SSM61965 Wawa GP Inc. No 31-May-26 Yes SSM61966 Wawa GP Inc. No 31-May-26 Yes SSM61967 Wawa GP Inc. No 31-May-26 Yes SSM61968 Wawa GP Inc. No 31-May-26 No None 311690204 311690204 311690204 311690204 None Crown No 31-May-26 No None None Crown No 31-May-26 Yes SSM61971 Wawa GP Inc. No 31-May-26 Yes SSM61972 Wawa GP Inc. No 31-May-26 No SSM6247 311690204 311690204 311690330 The Corporation of the Township of Michipicoten No 31-May-26 Wawa GP Inc. Wawa GP Inc. No None None Crown No 30-Nov-32 No None None Crown No 30-Nov-32 Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM64703 Lease SSM64704 PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry 31169-0195 108914 Yes SSM64703 31169-0195 No None None Crown No 30-Nov-32 Lease 31169-0194 108916 Yes SSM64704 31169-0194 No None None Crown No 30-Nov-32 SSM64705 Lease 31169-0193 108915 Yes SSM64705 31169-0193 No None None Crown No 30-Nov-32 SSM64706 Lease 31169-0198 108943 Yes SSM64706 31169-0198 No None None Crown No 31-Jan-33 SSM64934 Lease Part of 31169- Part of 0206 107761 Yes SSM64934 31169-0206 Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. Wawa GP Inc. No None None Crown No 31-May-26 SSM64955 Lease Part of 31169- Part of 0206 107761 Yes SSM64955 31169-0206 Wawa GP Inc. No None None Crown No 31-May-26 JD16 Fee Simple Absolute 31169-0273 NA Yes JD16 31169-0273 Olie Van Sickle and the Estate of Lloyd Allen Van Sickle Yes JD16 311690273 Olie Van Sickle and the Estate of Lloyd Allen Van Sickle No 2.5% Diamonds + 1% other, Van Sickle NA SSM7389 Fee Simple Absolute 31169-0338 NA Yes SSM7389 31169-0338 Wawa GP Inc. No SSM7389 311690872 Wawa GP Inc. No 1/4% NSR Dunraine NA SSM7389 Part of 31169Fee Simple 0872 Absolute NA No SSM7389 31169-0338 Wawa GP Inc. Yes SSM7389 311690872 Wawa GP Inc. No 31169-0199 107320 Yes SSM76721 31169-0199 Olie Van Sickle and the Estate of Lloyd Allen Van Sickle Yes SSM76721 311690199 Olie Van Sickle and the Estate of Lloyd Allen Van Sickle No 2.5% Diamonds + 1% other, Van Sickle 30-Apr-21 NA SSM76721 Lease SSM7921 Fee Simple Absolute 31169-0341 NA Yes SSM7921 31169-0341 Estate of Lloyd Allen Van Sickle (Exec: Ollie Van Sickle) Yes SSM7921 311690341 Olie Van Sickle and the Estate of Lloyd Allen Van Sickle No 2.5% Diamonds + 1% other, Van Sickle NA SSM886 Fee Simple Absolute 31169-0272 NA Yes SSM886 31169-0272 Wawa GP Inc. Yes SSM886 311690272 Wawa GP Inc. Yes 1/4%, NSR Dunraine NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title PIN Lease ID Mineral Rights Mineral Rights Claim ID Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry 1/4% NSR, Dunraine NA Y461 Part of 31169Fee Simple 0260 Absolute NA Yes Y461 31169-0260 Wawa GP Inc. No Y461 311690872 Wawa GP Inc. No Y461 Part of 31169Fee 0872 Simple Absolute NA No Y461 31169-0260 Wawa GP Inc. Yes Y461 311690872 Wawa GP Inc. Yes Y462 Part of 31169Fee 0260 Simple Absolute NA Yes Y462 31169-0260 Wawa GP Inc. No Y462 311690872 Wawa GP Inc. No Y462 Part of 31169Fee 0872 Simple Absolute NA No Y462 31169-0260 Wawa GP Inc. Yes Y462 311690872 Wawa GP Inc. Yes Y463 Part of 31169Fee 0260 Simple Absolute NA Yes Y463 31169-0260 Wawa GP Inc. No Y463 311690872 Wawa GP Inc. No Y463 Part of 31169Fee 0872 Simple Absolute NA No Y463 31169-0260 Wawa GP Inc. Yes Y463 311690872 Wawa GP Inc. Yes SSM222 Part of 31169Fee 0278 Simple Absolute NA Yes SSM222 31169-0278 Wawa GP Inc. No SSM222 311690696 Kurt Echle and Stephan Echle No 5% NSR, Weiss NA SSM249 Part of 31169Fee 0277 Simple Absolute NA Yes SSM249 31169-0277 Wawa GP Inc. No SSM249 311690643 Wawa GP Inc. and Citabar Limited Partnership No 5% NSR, Weiss NA SSM249 Part of 31169Fee Simple 0643 Absolute NA No SSM249 31169-0277 Wawa GP Inc. Yes SSM249 311690643 Wawa GP Inc. and Citabar Limited Partnership No NA NA No R738 31169-0221 Wawa GP Inc. Yes R738 311690642 Wawa GP Inc. Yes NA NA No SSM60183 lease 107761 Wawa GP Inc. Yes SSM3105 311690289 Wawa GP Inc. No NA Part of 108850 Yes SSM430235 31169-0214 Wawa GP Inc. No SSM3307 311690308 Wawa GP Inc. No 31-Aug-32 Part of 31160- Part of 0205 107761 Yes SSM60362 Wawa GP Inc. No SSM3108 311690289 Wawa GP Inc. No 31-May-26 R738 SSM3105 Fee Simple Absolute 31169-0642 Part of 31169Fee Simple 0289 Absolute SSM430235 Lease SSM60362 Lease 31169-0214 31169-0205 NA 1/4% NSR Dunraine NA NA 1/4% NSR Dunraine NA NA Wawa Gold Project, Ontario, Canada June 30, 2016 Patented Mining Claim ID Type of Title SSM60363 Lease SSM4678 Fee Simple Absolute NA: Not applicable PIN Lease ID Part of 31169- Part of 0205 107761 31169-0315 NA Mineral Rights Mineral Rights Claim ID Yes SSM60363 Yes SSM4678 Mineral Rights PIN Mineral Rights Title Holder Surface Rights Surface Rights Claim ID 31169-0205 Wawa GP Inc No SSM3107 311600289 Wawa GP Inc. No 31-May-26 31169-0315 Yes SSM4678 311690315 Wawa GP Inc. No NA Wawa GP Inc. Surface Surface Rights Rights PIN Title Holder Timber Rights Agreement Obligations, Recipient(s) Expiry Wawa Gold Project Ontario, Canada June 30, 2016 Appendix 3 – Independent Verification Samples Assay Certificates