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Implement discovery into production GoldStone Resources Ltd Corporate Presentation Q3 2019 Disclaimer Disclaimer The content of this presentation has not been approved in terms of the UK Financial Services and Markets Act 2000. This


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GoldStone Resources Ltd Corporate Presentation

Q3 2019

Implement discovery into production

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Disclaimer

Disclaimer The content of this presentation has not been approved in terms of the UK Financial Services and Markets Act 2000. This presentation does not constitute an offer, invitation or solicitation to purchase or subscribe for any securities of the Company and should not be relied on in connection with any investment decision. This presentation does not constitute a recommendation regarding any decision to sell or purchase securities in GoldStone Resources Limited (“GoldStone”). This presentation is being made available for general information only and is subject to change without notice. The information provided in this presentation does not purport to summarise all information that an investor should consider when making an investment decision. The information contained in this presentation is provided as at the date of preparation of this presentation and may not be up-to-date. No one should act or rely upon the information in this presentation, but should undertake their own independent due diligence or seek appropriate professional advice. Figures may not sum due to rounding. This presentation may not be reproduced in any form or forwarded or further distributed to any other person, in whole or in part, for any purpose whatsoever. Any forwarding, distribution or reproduction of the presentation in whole or part is unauthorised. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or the completeness or accuracy of such information. No representation or warranty, express or implied, is given by or on behalf of GoldStone or its directors,

  • fficers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this

presentation and no liability is accepted for any such information or opinions to the maximum extent possible under applicable law. Forward Looking Statements This presentation may contain certain forward looking statements and projections regarding: (i) estimated resources and reserves; (ii) planned production and operating costs profiles; (iii) planned capital requirements; and (iv) planned strategies and corporate objectives. Such forward looking statements/projections are estimates for discussion purposes only and should not be relied upon. They are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of GoldStone. The forward looking statements/projections are inherently uncertain and may therefore differ materially from results ultimately achieved. GoldStone does not make any representations and provides no warranties concerning the accuracy of the projections, and disclaims any obligation to update or revise any forward looking statements/projections based on new information, future events or otherwise.

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GoldStone Resources Ltd - Corporate Presentation Q3 2018

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Summary 3 Economics 7 Geological 9 Operational 15

Contents

Project Costs 24 Corporate 35

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Robust economics, rapid payback, with future exploration costs paid from cashflow and are tax deductible

Who is GoldStone?

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Fast tracking gold production at the Akrokeri-Homase Project in 2020 within the world-class Ashanti belt in Ghana

Definitive Economic Study shows positive economics for 3 open pits from the JORC Resource

  • f 602,000oz Au along the Homase Trend

Two Historic Mines: 75,000oz @ 24g/t Au recovered Akrokeri; 52,500oz @ 2.5g/t Au Homase Operating in Ghana; low risk, mining-friendly jurisdiction with excellent infrastructure Tightly Held share register with Paracale Gold, and BCM as key shareholders are fully supportive of Company’s objective Project lies 12km along strike from AngloGold Ashanti’s Obuasi Mine, total endowment c.70Moz Au Historic and Current Operational Board and Management focussed on production at earliest opportunity, supported by Paracale Gold, investment house and BCM, West African Mining Contractor

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Location

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Homase Akrokeri Obuasi

Homase Pit produced 52,500oz Au @ 2.5g/t Au from 2002-03

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Progressing Towards Production

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Low cost heap leach processing facility from three satellite open pits

*From the AKHM JORC resource of 602,000 oz

Mineable Resource c.82,000oz oxide ore* 82% recovery 2.17M/t @ avg. 1.2g/t Initial LOM - 5 years All In Cost of $852/oz Plant feed approx. 2.26m tonnes @ 1.2 g/t Total ounces of c.88,500 oz Process tailings Akrokeri U/G mine, c.91,000 tonnes @ 2.27 g/t

  • r 6,500 oz contained gold

recovery of 73% Phase 1 Forecast production 72,000 oz Average 14,400 oz pa c.US$94M revenue LOM (US$1,300/oz)

Information from DEP announced 27 June 2019

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Definitive Economic Plan

GoldStone Resources Ltd - Corporate Presentation Q3 2019

6 Fast tracking gold production at the Akrokeri-Homase Project in 2020* “within the world- class Ashanti belt in Ghana”

Phase 1 Open Pit AKHM Gold Project: c.72,000oz Gold Production average head grade 1.22g/t Five years phase 1 Open Pit Heap Leach Low Cost High Margin Post-tax NPV US$19.5M, IRR 143% @ 10% disc. rate US$1,300 /oz gold price Pay-back within first operating year on pre-production capex of US$6.95M**

*Subject to funding **pre-production mining, including compensation and contingency

Conventional Operation Contract open pit, free dig mine with up to date pricing Conventional Heap Leach with proven recovery exceeding 80% Near Term Development Registration for Environmental Permit Complete DEP will enable rapid transition to Mining Permit, application in-progress Experienced Management Experienced management with proven track record in discovery,

development and delivery of major gold projects Globally

Massive Upside Homase Trend continues to deliver higher grades at depth and along strike Old Akrokeri Mine ready for re-opening

Production to Fund the Exploration for Phase 2 Mine Expansion

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Economics

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Robust Economics Low Initial Capex, Rapid Payback

Definitive Economic Plan Highlights

Gold Price (Base Case) US$1,300/oz FX Rate GHS 5.263: US$1.00 Mineable Resource (inc. tails) 2.26 Million tonnes Initial Mine Life 5 Years Annual Production (Phase 1) 14,400 oz (average) Total Production (Phase 1) 72,000 oz Strip Ratio / Recovery (O/all) 3.5* / 81% Cash Cost (Phase 1) US$650/oz ** AIC (Phase 1) US$852/oz Cash Flow (after tax) (Phase 1) US$26.2 Million Initial Capital US$6.95 Million *** Sustaining Capital US$1.5 Million NPV 10% (after tax) US$19.5 Million IRR (after tax) 143% Payback (after tax) Within 1st year of production

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  • Strip ratio excludes tailings ore

** Excludes GRL overhead costs *** Initial Capital includes land/crop compensation

Homase Mine 2002/03 Original Forecast Production: 35,800 oz

Actual Production: 52,500 oz

Exceeded expectation

147%

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Geological Information

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Where we are

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AKHM lies 12km along strike from Obuasi Mine: 34.05 Moz @ 7.30 g/t* Process for Mining Lease and Environmental Permit underway Low population density area, limited relocation required Excellent Infrastructure

  • 1km from sealed road
  • Mobile phone coverage
  • LV grid power on-site
  • 11km from HV grid power
  • Own stable water source

Ministry fully supportive of a new mine coming on stream

GoldStone’s assets lie in one of the most prospective gold belts in the world: Ghana’s Ashanti Gold Belt which hosts the Obuasi Mine

* AngloGold Ashanti 31 December 2017 – Mineral Resources and Ore Reserve Report

The Gold Belts of Ghana

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Surrounding Geology

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Obuasi - 8km strike and 1.5 km depth Total historical and current resource >70M oz Au

AKHM - 12km along strike to the Obuasi Mine Mineral Resource 34.05M oz @ 7.30 g/t* AngloGold Ashanti recently committed to spend >US$500 million for restart

* AngloGold Ashanti 31 December 2017 – Mineral Resources and Ore Reserve Report

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Obuasi growth 1995 – 2000

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Obuasi Analogue Widths of ore shoots: 100 – 400 m Lengths of ore shoots: 500 – 2,500 m down plunge

2000m depth 1000m depth

Major Deep Drilling Programme (2km below surface) Where AKHM sits along strike:

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Comparable Geology

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Ref: A review of the Birimian Supergroup- and Tarkwaian Group-hosted gold deposits of Ghana, Albertus J. B. Smith, George Henry and Susan Frost-Killian Episodes Vol. 39, no. 2 June 2016

Quartz veins and mineralisation in graphitic sheared faults Quartz veins and mineralisation in graphitic shear zone Arsenopyrite in metasediments surrounding the quartz veins Pyrite and Arsenopyrite in meta- sediments (seen under lens) Visible gold occurring in fractures within a quartz vein Visible gold occurring in fractures within a quartz vein

Obuasi Homase

Common Features of Birimian mesothermal gold mineralisation between Obuasi and AKHM

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JORC Resource open at depth

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The JORC Resource is within the Homase Trend only to a depth of 250 m The two drilling campaigns completed in 2016 & 2017, NOT included in the JORC Resource Typical Birimian meta-sediment, disseminated sulphide, shear hosted mineralisation over known 8 km strike length Higher grade, steeply plunging shoots identified at regular intervals within a broader mineralised envelope

TONNAGE GRADE CONT'D GOLD

Tonnes (million) (Au g/t) Ounces

Measured 1.61 2.24 116,000 Indicated 4.41 1.73 245,000 Measured & Indicated 6.01 1.87 361,000 Inferred 4.56 1.64 241,000 Total 10.6 1.77 602,000

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Operational Information

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Free Dig Open Pit Mines

Existing infrastructure with compact footprint

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Production Profile

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Ounces Produced Average – 14,400oz/yr Total 2.26Mt for 72,000oz Open Pit Heap Leach Facility Throughput - 1,200 tpd (375 ktpa) Average recovery Pit ore = 82% Tailings = 73% Average grade Pit ore = 1.17 g/t Tailings = 2.27 g/t Initial 5 Year mine life Results confirm extension of mineralisation and coarse gold presence Open pit mine life extension: Parallel deposits Blind ore shoots Push-backs Exploration trenches have tested target open pits

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GoldStone Resources Ltd - Corporate Presentation Q3 2019

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Tonnage Grade Gold (million) (g/t) (ozs) Measured 1.61 2.24 116,000 Indicated 4.41 1.73 245,000 Inferred 4.56 1.64 241,000 TOTAL 10.6 1.77 602,000

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The North Pit

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The Central Pit

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The South Pit

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The Main Pit – mined 2002-2003 what lies beneath

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Schematic of Operations

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Carbon in solution columns

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Project Costs

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Low Initial Capital Outlay

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DESCRIPTION US$ MINING MOBILISATION 250k INFRASTRUCTURE 624k PROCESS PLANT 3.830k POWER GENERATORS & DISTRIBUTION 350k SOCIAL & ENVIRONMENTAL 516k WORKING CAPITAL 750k CONTINGENCY @ 10% 632k

TOTAL 6.95M

Project costs extracted from the Definitive Economic Plan

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Low Cost, High-Margin Gold Mine

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Description Phase 1 LOM US$/t Phase 1 LOM US$/oz Mining 10.5 315 Processing 7.6 227 G&A Ghana 0.8 25 Royalties & Community 2.5 76 Closure Provision 0.2 7 Cash Cost (Phase 1) 21.6 650 GRL Overheads Costs 2.7 85 Total Costs* 24.3 735

*Total Costs excludes Ghana corporate tax, capital expenditure and exploration costs

43.0% 31.1% 3.4% 10.4% 0.9% 11.1%

Phase 1 Costs Splits Open Pit Mining

Mining Processing Ghana G&A Royalties & Community Relations Closure Provision GRL Costs

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Development Schedule

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FEASIBILITY STUDY PERMITTING CONSTRUCTION FINANCING EARLY NEEDS/WORKS PROJECT CONSTRUCTION COMMISSIONING FIRST GOLD REVENUE EXPLORATION

Q3 2019 Q4 2019 H1 2020 H2 2020 FINANCE/CONSTRUCTION/PRODUCTION

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Exploration Information

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Exploration Targets

Historical Akrokeri Mine

  • Old Akorkeri Mine hosts high grade quartz veins

including 1.0 metre at 51.01 g/t Au or >1.5oz/tonne

  • North Shaft, 27m, and Norton Shaft, 33m, providing

access to the old mine workings

  • Refurbish to provide safe access to the mine workings
  • Opening mineralised zone for underground exploration

Homase Trend and Beyond:

  • Gold-in-soil anomaly contains the historic Homase

mines and demonstrates along strike extensions

  • Anomaly >8km along Homase Trend
  • Anomaly >3km south of the Akrokeri Mine
  • Parallel mineralised structures

Exploration and Development Programme

  • Funded by cashflow from Phase 1 mining
  • Exploration and development at Akrokeri Underground

Mine

  • Proposed extensive drilling programme on the Homase

Trend along strike and at depth

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1996-1997 Birim Goldfields Akrokeri DD targeting Akrokeri Quartz Vein, 9 holes @ 2000m 2002-2003 AngloGold Ashanti Homase RC to confirm drilling of oxide resources, 30 holes @ 1503m Mined 52,000 oz @ 2.5g/t Au open pit to 60 metres

Period Company Permit Method Holes Metres Target

1900- 1909 Akrokeri Ashanti Mines Ltd Akrokeri Under- ground Mining Two Shafts 800 feet depth Mined 75,000 oz @ 24 g/t Au 1996- 1997 Birim Goldfields Akrokeri DD 9 2 000 Akrokeri Quartz Vein 1998- 2001 Shea Gold Homase RC 251 16 242 Main Trend and Adubriem 1999- 2001 Shea Gold Akrokeri RC 110 7 062 Main Trend and Parallel Trend 2002 Anglo Gold Ashanti Homase RC 30 1 503 Confirmation Drilling

  • f Oxide Resources

2002- 2003 Anglo Gold Ashanti Homase Open Pit Mining One pit 50 metres depth Mined 52,000 oz @ 2.5 g/t Au 2007- 2008 Pan African Resources Akrokeri DD 10 3 200 Akrokeri Quartz Vein 2011- 2012 GRL Homase RC + DD Tails 34 9 071 Main Trend, Down Dip Resources Estimate 2012 GRL Akrokeri DD 17 5 305 Main Trend, Down Dip Resources Estimate 2015 GRL Akrokeri/ Homase Auger 1 491 2 875 Surface Geochemical Anomolies, Resource Estimate 2016 GRL Akrokeri/ Homase Auger, RC DD 135 2 475 Infill Drilling, Resource Estimation 2017 GRL Akrokeri/ Homase RC 26 1 471 Pit Definition In-Fill Drilling

Continuous Review

  • f Previous Work

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1900 – 1909 Akrokeri Ashanti Mines Ltd Mined 75,000 oz @ 24g/t Au Two Shafts, 800 feet depth 1998-2001 – Shea Gold Akrokeri/Homase RC targeting Main Trend and Parallel Trend, 361 holes for 23,304m 2007-2008 Pan African Resources Akrokeri DD targeting Akrokeri Quartz Vein, 10 holes @ 3200m 2011-2018 GoldStone Resources Ltd Akrokeri/Homase RC + DD Tails targeting Main Trend, Down Dip Resources Estimate, 51 holes for 14,106m Auger targeting Surface Geochemical Anomalies, Resource Estimate, 1491 holes @ 2875m Auger, RC, DD targeting Infill Drilling, Resources Estimation, 135 holes @ 2475m RC targeting Pit Definition In-Fill Drilling, 26 holes @ 1471

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Homase Mine extending from 2003

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Homase Pit – 90% owned

  • Ashanti Goldfields Limited Homase Pit produced 52,500oz Au @ 2.5g/t Au from 2002-03

Deep trench proves free dig

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Homase Trend - Just Keeps Going

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Represents knowledge on sub-surface for:

18m @ 2.57 g/t 14m @ 6.55 g/t 14m @ 3.62 g/t 13m @ 10.92 g/t

  • Incl. 2m @

24.03 g/t 7m @ 5.78 g/t 7.5m @ 10.7 g/t 10.48m @ 7.44 g/t 3.97m @ 8.35 g/t

Homase Main

31m @ 2.17 g/t 6m @ 2.86 g/t 20m @ 2.42 g/t 17m @ 4.19 g/t

Homase Main South

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Akrokeri Mine picking up from 1909

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Akrokeri Mine – 100% owned

  • Akrokeri Ashanti Mines Limited operated the

Akrokeri underground mine from 1904 to 1909

  • Produced 75,000oz Au @ 24g/t average

recovered grade

  • High grade quartz veins, up to 1.5m wide and

grades of c.1oz/t, have been mined

Ref: Arkrokeri (Ashanti) Mine Limited 1906, National Archives, Kew London

North Shaft 2019

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Akrokeri – Ashanti Fissure Extension

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Corporate Information

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Board Driving Development Progress

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Bill Trew Non-Executive Chairman

An engineer with 40 years experience in the mining and finance sectors. Chairman of MAED Engineering, Gold Mines of Uganda and Paracale Gold.

Angie List Non-Executive Director

20 years experience of Finance and Administration in the African Mining

  • Sector. Owner and Director of BCM

Ghana Ltd, mining contractors.

Richard Wilkins Non-Executive Director

Independent

Fellow of the Institute of Chartered Accountants with considerable experience in emerging markets and the natural resources sector.

Emma Priestley Chief Executive Officer

Experience in African business development, a former director of Lonrho Plc with over 20 years exposure to capital markets, mining and infrastructure services.

GoldStone Resources Ltd - Corporate Presentation Q3 2019

  • Team has international build and operational experience across Africa, Asia and the FSU, with trusted

networks

  • BCM a major Mining Contractor and Owner Operator of Nzema in Ghana and Tabokoto in Mali with

successful mining operations in Africa and Asia in precious metals, bulk minerals and energy minerals

  • Proactive and operationally driven Board focused on delivering production
  • Board and Management has a proven track record of delivery

Orrie Fenn Non-Executive Director

Independent

An engineer with a proven track record for bringing mines into production. Former head of mining with Cementation Group.

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Management

Support during Construction

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MAED - Successfully completed EPCM and turnkey projects for leading mining companies in Africa, Asia and FSU. MAED takes a project from feasibility to production and are experts in technical designs, cost efficiency, so that the project is delivered without excessive debt.

Darryl Norton Chief Operating Officer Engineer with 38 years of experience developing mines and building process plants in the mining industry internationally, particularly in Africa, the Former Soviet Union & South East Asia Sophia A Antonio Finance & Administration Manager Chartered Accountant with 20 years experience in managing public listed and private companies. Formerly a Finance Manager of Anglo Gold Ashanti Klaus Kappenschneider Consultant Geologist With over 35 years experience in Resource Estimation, Mining

  • Geology. Technical Reports (NI 43- 101/ Jorc/ Samrec), Near-

mine Exploration and QA/QC audits, data audits Oleg Hret Consultant Geologist Over 30 years experience in Resource Estimation and Mining

  • Geology. ore reserve estimations, 3D modelling of geological

structures/deposits and the evaluation of properties Patrick Adu- Gyamfi Implementation Manager Geologist associated with GoldStone since 2010, and advanced to Permitting, Environmental Assessment Officer and acting Community Liaison Officer Malcolm Crowe Consultant Process Engineer Veteran Mineral Processer with 10 year’s with Ashanti Goldfields at Obuasi Mine, proceeded to advise Lonrho Plc on operations

  • globally. Fellow of the IoMMM
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Ownership and Capital Structure

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Paracale Gold Limited is a mining investment company focused on development opportunities BCM is one of Africa’s largest private contract miners and investor with successful mining

  • perations in Africa and Asia in precious metals,

bulk minerals and energy minerals

Share Price Key Data Paracale Gold Ltd 28% BCM Investments Ltd 20% Fiske Nominees 7% Pershing Nominees Ltd 5% Interactive Investor 4% Pershing Nominees Ltd 4%

SVS (Nominees) Limited 3.6%

Chase Nominees Ltd 3% Shareholders < 3.0% 27% Key Shareholders Market : Ticker AIM : GRL Shares in Issue 249,707,991 Warrants 43,352,377 Market Cap GBP4.75M Share Price

as at 19.09.19

1.9 pence

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Investment Opportunity

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Postcode – Obuasi as a neighbour, 12km along strike

Board – all disciplines covered Short Term – get into production Long Term – develop multi-million ounce mine

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Old Mines Don’t Die They Are Merely Sleeping