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The independent mineral reserve estimate was prepared by Mine Development Associates (“MDA”). MDA classifies reserves in order of increasing confidence into probable and proven categories in accordance with the “CIM Definition Standards – For Mineral Resources and Mineral Reserves” (2014) and therefore NI 43-101.

The mineral reserve estimate is based on the August 29, 2014 AMC mineral resource model. The resource block model was updated in May 2015 by AMC. The measured and indicated resources were evaluated to determine the minable portion by first using pit optimization techniques and then using the optimization templates to design pit phases and a final design. A production schedule was created from the design pit phases, which forms the basis of the economic evaluation for this study.

Mineral Reserve Statement (0.20 g Au/t cutoff)
Mine Development Associates, 23 October 2015

Item

Quantity (tonnes 000s)

Gold Grade (g/t)

Contained Gold (Koz)

Silver Grade (g/t)

Contained Silver (Koz)

Proven Reserves 67,146 0.79 1,703 3.68 7,940
Probable Reserves 29,508 0.76 718 3.53 3,352
           
Total Proven & Probable Reserves 96,654 0.78 2,422 3.63 11,292
Waste 229,084        

Notes to Mineral Reserve Statement:
•        The pit design was based on an optimization shell generated on gold only at a gold price of $912/oz.
•        The economic evaluations were based on a gold price of $1150/oz and a silver price of $16.00/oz.
•        A diluted gold cut-off grade of 0.20 g/t was used for processing.
•       The effective date of this mineral reserve estimate is October 23, 2015.