SABINA GOLD & SIL ILVER CORP. Developing the high- grade Goose - - PowerPoint PPT Presentation

1

SABINA GOLD & SIL ILVER CORP.

Developing the high- grade Goose Mine at the Back River Gold District.

The work done on Back River over the last two years offers opportunity to bring higher-grade ounces in earlier in the mine life, providing for increased production profile and economics and reduced payback; improving

• n

an already top tier project. This work will form the basis of an updated Feasibility Study and Resource Estimate due Q1/21. August 2020

Forw rward Looking In Information

Statements relating to our belief as to the results of exploration activities, timing of receipt of necessary authorizations and licenses, the availability of project financing, the timing of the start of construction and the first gold pour, and the results of further

• ptimization studies to the feasibility study, the potential tonnage and grades and contents of deposits and the potential production

from and viability of Sabina’s properties are forward looking information within the meaning of securities legislation of certain Provinces in Canada. Forward looking information are statements that are not historical facts and are generally, but not always identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” “opportunities,” and similar expressions, or that events or conditions “will,” “would.” “may,” “could,” or should occur. The forward looking information is made of the date of this video. This forward looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward looking information, including, without limitation: the effects of general economic conditions; changing foreign exchange rates; risks associated with exploration and project development; the calculation of mineral resources and reserves; risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work arising from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential

• f the Company’s properties; risk of accidents, equipment breakdowns and labour disputes; access to project funding or other

unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; title matters; government regulation; obtaining and receiving necessary licenses and permits; the risk of environmental contamination or damage resulting from Sabina’s operations and other risks and uncertainties including those described in Sabina’s annual information form for the year ended December 31, 2019 available at www.sedar.com Forward looking information is based on the beliefs, estimates and opinions of Sabina’s management on the date the statements are made. Sabina undertakes no obligation to update the forward looking information should management’s beliefs, estimates or

• pinions, or other factors, change, except as required by applicable law

2

With ith Majo jor perm rmit its and so socia ial l li license receiv ived, Sa Sabin ina is is sh shovel l ready

3

Why Sabina?

*1 2019 average grade of open pit and U/g deposits with gold as primary commodity in M&I. S&P Global Intelligence

Advanced, large, high grade - 6 g/t open pits vs world average of 1.2 g/t*1 A mining district in a stellar jurisdiction Nunavut, Canada Critical project components de-risked

Project optimizations underway to increase production profile and enhance economics

Robust economics at US$1150 gold –

significant leverage to increasing gold price

Well funded with exceptional people C$75m at Q2/2020 Back River Gold Project

COVID ID-19 Glo lobal Health Cris isis is Response Measures Im Imple lemented

4

Course of Action: What we did ❑ Work from home protocol initiated March 15; ❑ First Company in Nunavut to make the decision to de-mobilize camp, deferring exploration to later in the year and protecting our northern community stakeholders from unnecessary risk

• f exposure;

❑ Decelerated project development activities to preserve cash and wait for more stable market conditions; and ❑ Implement reporting tracking system of employee health through self quarantine period after returning home from camp or travel and in general.

Meanwhile, we have close to 10 million ounces

• f gold in the most secure bank anywhere – in the ground that we own!

Course of Action: what we are doing ❑ worked in consultation with external parties to phase in camp re-opening with camp protocols that ensure the safety of our workforce and the surrounding communities. ❑ Continuing to engage with local governments, the KIA and Kitikmeot communities ❑ Protocols will be modified based on new information to ensure our safety measures remain appropriate. ❑ Slowly and safely phasing in corporate office re-

• pening

❑ Maintaining vigilant approach with safety of our employees being number 1

5

Base Based on

• n 201

2014 reso esource es esti timate no not t including three ne new hig high-grade dis discoveries

There are few advanced gold projects that are large, high grade, district scale and in good jurisdictions. Back River is advanced engineered, permitted and has obtained social license

The In Investment Opportunity

Development Companies By Size and Grade

RBC Capital Markets – Aug 23/20

Nunavut, Canada – Over r 4 decades s of f prosperit ity in in min inin ing

1 2 3 4 5 6 7 8 1998 2002 2007 2009 2010 2012 2015

Gold Resource

Millions oz

Indicated Inferred

Bac ack Ri River – De Deposits ar are Well l Dr Drill illed , , Well l Understood an and Open. Over 56 568, 8,000 meters of

• f

drill rillin ing comple

• leted. Opportunitie

ies to

• in

incr crease resources an and op

• ptimize rese

serv rves with ith in infill fill drill rillin ing

7

Under Sabina Ownership

*See mineral reserves and resources estimate slide 30 for details

Mineral Resource Estimate Oct/14 Tonnes (kt) Au (g/t) Metal (koz Au)

Measured 10,273 5.27 1,740 Indicated 17,969 6.22 3,593 Measured and Indicated 28,242 5.87 5,333 Inferred 7,750 7.43 1,851 Mineral Reserve Estimate Aug/15 Classification Tonnes (kt) Au (g/t) Au (koz) Total Open Pit Proven 6,983 5.97 1,340 Probable 1,885 5.52 335 Total Underground Proven 20 9.52 6 Probable 3,471 7.37 822 Total Back River Property Proven 7,003 5.98 1,346 Probable 5,356 6.72 1,157

80% of open pit reserve is in Proven Category

1980’s & 90s 1997-2009 June 2009 2010-2014

George & Goose deposit discoveries Project owned by Arauco, Kinross, Miramar & DPM Project acquired by Sabina +325% resource growth under Sabina

Measured & Indicated Inferred

Infill drilling for new resource estimate underway

Ba Back Riv iver r A Dis istric ict Sc Scale le Gold ld Opportunit ity

100% OWNED BY SABINA

Significant extended production

• pportunities exist through:

❑ Deposits not included in first mine plan (at both Goose and George) ❑ Low risk resource opportunities with infill program ❑ Increase production profile by brining forward higher-grade underground resources ❑ Numerous blue sky and brownfield targets ❑ Continued greenfield and generative exploration future

Back River Property 80 Km

Kilometres 12.5 25

LEGEND

Inuit Owned Land Camp Area of Interest Claim Lease Surface Subsurface and Surface

George Project Boot Boulder Goose Project Del Bath 8

George Property Existing Mineral Resources:

Indicated 1.1m oz @ 5.6 g/t Inferred 980k oz @ 6.32 g/t Included in prior Feasibility ~600 k oz

Port

Significant existing resources at George on 20km of largely unexplored iron formation offering

• pportunity for another mining complex on the

Back River district

QA/QC Slide 30

Back k Riv iver is is Permit itted, Shovel l Ready and Offers Robust Economics

9

❑At US$1150 gold price and $.80 FX generates 24.2% after tax IRR (9/15 Feasibility Study) ❑Simple executable first mine produces ~200,000 Oz per year for ~12 years. Expanded mine life demonstrated. ❑Fully permitted and shovel

• ready. Strong government and

community support; ❑Social license in hand

Sabina has one of the lowest capital intensity ratios relative to peers ✓ Back River is a Company Maker with embedded growth in a world class jurisdiction ✓ 6.2 g/t Au open pits – highest grade undeveloped pits ✓ Robust Economics ✓ Capex geared to a company Sabina’s size ✓ Competitive Opex ✓ Strong Production Profile ✓ 12 year mine life with significant expansion demonstrated

QA/QP – see slide 29

55% 61% 81% 81% 103% 164% 364% 480% 530% Orla Orezone Rubicon Sabina Gold Standard Belo Sun Cardinal INV Falco

Initial Capital Expenditures as a % of Market Capitalization

Sensitivities in in Current Environment

After Tax 5% 5% dis iscount

10

Running sensitivities based on the 2015 Feasibility Study economics

An internal optimized mine plan has been developed that will be used as the basis for an updated feasibility study and resource estimate due Q1, 2021. This includes bringing higher- grade material earlier into the mine life, increasing production profile, economics and reducing payback period.

CAD millions FS gold price sensitivity NPV IRR Payback USD 2,100, forex 0.758 $ 1,817 58.3% 1.0 USD 2,000, forex 0.758 $ 1,686 55.6% 1.1 USD 1,900, forex 0.758 $ 1,555 52.8% 1.2 USD 1,800, forex 0.758 $ 1,423 49.9% 1.3 USD 1,700, forex 0.758 $ 1,290 46.9% 1.4 USD 1,600, forex 0.758 $ 1,159 43.7% 1.5 USD 1,500, forex 0.758 $ 1,027 40.4% 1.6

QA/QP – See Slide 20

Hig igh-Grade Open Pit its are among the lo lowest cost gold ld producers

Mine Country Owner Processed Grade Q418 (Au g/t) C1 Cash Costs Q418 (US$/0z) 2018 Annual Productio n (Au Oz) Kumtor Kyrgzstan Centerra Gold Inc. 5.5 $319 535,000 Red Rabbit Turkey Ariana Resources PLC 5.2 $349 20,000 Pueblo Viejo Dominica n Republic Barrick Gold Corp. 4.2 $425 580,000 Svetloye Russia Polymetal Internatio nal PLC 3.5 $265 135,000 Lihir Papua New Guinea Newcrest Mining Ltd. 3.1 $663 900,000

11

Sep/15 Feasibility Study – Goose Project, Back River ❑ Projected to produce 250,000 ounces of gold from years 1 – 8 from a combination of three

• pen pits (72%) and one underground (28%)

❑ With 6.2 g/t Au open pits, total cash costs are forecast at US$534 per ounce. ❑ Life of mine all in sustaining costs, including initial capital, sustaining and closure capital are estimated at US$763 per ounce. ❑ Three new discoveries since Feasibility Study have demonstrated opportunity for extended mine life

Source: Company public documents. See QA/QC Slide 29

Significant Work Completed to advance the proje ject

12

Key Mil ilestones on the Proje ject sin ince the Feasibility Study

❑ Full Permits and social license received ❑ Built infrastructure to support construction and

• perations

❑ Basic engineering done. Detailed engineering commenced ❑ Metallurgical testing to support design of flow sheet. ❑ 3 new discoveries ❑ Advancement of a Project Debt term sheet ❑ Gold price increase from ~C$1,438/oz in our FS to C$2,575/oz significantly impacting project economics ❑ Internal studies revisiting mine scheduling to increase economics, production profile and lower payback period

13

Contin inuing to utiliz ilize our treasury ry prudently as we advance the proje ject

14

❑ Logistics and supply route ❑ Construction of Port and Winter Ice Road completed. Equipment moved from Port to Goose Site ❑ First 10 million litre fuel tank constructed ❑ Internal Studies ❑ FS utilizes only 2.3m of 7.3 m oz resource & 3 new discoveries since ❑ Opportunities to adjust mine scheduling to bring in higher grades earlier and increase production profile ❑ Negotiated Project Debt on favourable terms ❑ Contingent on access to equity ❑ In a state of readiness to execute at the right time

Envir ironment, , Permit itting and Social Lic icense Achie ieved

15

❑ Completed Environmental Assessment Process – Project certificate received ▪ Wildlife Monitoring and Mitigation new standard for Nunavut ▪ Caribou protection plans are “State-of-the-Art in Arctic Canada” – Paul Emingak, ED. KIA ❑ All Major authorization for construction and operation received. ❑ Finalized Agreements with landowner Kitikmeot Inuit Association (KIA) ▪ Will provide training, jobs, contracting opportunities and royalty payments to Kitikmeot Region ▪ 20 year lease ▪ KIA an aligned shareholder ▪ Regional wealth creation initiative payments – creating jobs

• utside of the mining industry – new precedent in Nunavut

❑ Environmental Assessment process completed ❑ Unprecedented support from communities

Opportunities for 2020 and beyond!

16

Evolv lving The Goose Proje ject Gold ld System – Th The Fir First Min ine

Targeting 10 Million Ounces of Gold in Banded Iron Formation

LLAMA UMWELT GNS HACKLES ECHO KOGOYOK NUVUYAK

Dif Target 525 m Llama Plunge Extension Dif Target Open Open Vault Open Open

• 1000m
• 500m

GOOSE MAIN

Dif Target Hook

Resource MI&I Drill Target 2017-2019 DDH

Umwelt Llama

Vault Nuvuyak

Open

3600 m >1200 m >4000 m

Goose Main

Approximated Plunge Length of Banded Iron Formation Stratigraphy

Combined Resource plunge length De-risked discoveries plunge length Untested upside potential plunge length

5.2 Moz +Moz ++Moz Average BIF potential of

1.4 Moz Gold per 1000 m

Extension

1000m 600m 900m

200m

1500m 800m 400m

500m

1500m 1600m

Three new discoveries in the last three years

Umwelt High Grade Corridor – 2020 drilling

18

❑ High-grade corridor within current under ground resource extending up and down plunge from the Vault zone ❑ Initial 2020 drill hit grades are double the Umwelt resource of 7g/t with widths sufficient to minimize dilution ❑ Potential for a second Vault type zone below the bottom of the

• pen pit offering opportunity for

higher-grade ounces to come in earlier in the mine life

Inclined section of the Umwelt underground mineralization showing gram meter intercepts and 2020 drilling results to date.

Exp xploration Decli line Ramp at Umwelt to further exp xplore hig igh grade corrid idor

19

❑ Under current Feasibility Study, underground at Umwelt comes online in year 3 (after payback) ❑ Since the Feasibility Study, exploration at Umwelt has demonstrated higher grades at depth (both up and down plunge from Vault) ❑ These high-grade zones need to be verified with close spaced drilling and/or bulk sample from underground ❑ Portal preparations being undertaken this summer with collaring in early 2021.

If this drilling is successful it could potentially provide for the earlier release of high-grade ores to the mine plan and positively impact the production profile and project economics.

Ramp will take approximately three years to complete with initial underground drilling beginning in 2022

20

Opportunities to add fu further underground at t Umwelt, t, Ll Llama, Nuvuyak & & Goose Main in la later in in th the Min ine Pla lan – target: : 30 300k oz/ z/year producer

❑ Discovery drilling has been widely spaced, testing interpretation and hypotheses from historic drilling & desk top work ❑ To drill off new discoveries would require: To Inf: 32,000 meters = ~$20m To Ind: 81,000 meters = ~$48m ❑ High level internal upside studies have been completed to target increased production at similar throughput to determine potential economic impact and plans for infill drilling

Figure2: Plan map of the Goose property showing the 1st derivative airborne magnetic survey overlain by the cross axial quadrature 5500 electro-magnetic airborne survey. Selected targets defined by geophysical responses, known gold occurrences and by prospective lithology are shown by yellow-dotted ellipses.

The Goose Project offers flexibility to adjust mine scheduling to impact production profile and economics

Proposed Eart rth works and pre-development activ ivities for r 2020

❑ Extension of Goose airstrip to allow heavy lift aircraft and support early construction ❑ Goose site roads from proposed infrastructure to drill/deposits ❑ Pre-development of pads and lay down areas to proposed plant site and portal site ❑ Commencement of detailed engineering ❑Procurement opportunities

21

Hackett Silv ilver Royalty

Significant potential cash flow at no cost from silver royalty. ❑ 22.5% x 190 million ounces of silver = cash equivalent of ~3 million ounces of silver per year; and ❑ 12.5% x of silver production after 190 million ounces

22

20 40 60 80 100 120 140 160

PRECIOUS METALS BASE METALS

Tonnes ( millions)

Data source: alley et al. , Mineral deposits of Canada, 2007 and selected company websites. Metal distribution using Wardrop PEA metal prices, 2.00 Cu, 0.80 Zn, 0.50 Pb, 14.00 Ag, 600 Au

Sabina mineral resource estimate:

❑ Indicated resources of 25 million tonnes at 4.2% Zn and 130 g/t Ag ❑ Inferred resources of 57 million tonnes at 3% Zn and 100 g/t Ag

60km west of Back River, one of world’s largest undeveloped silver rich VMS deposits

QA/QC – slide 31

ESG - Our Cor

• rporate Cultu

lture is is built ilt on

• n in

integrity an and proactiv ive ap approaches to

• ensu

sure th the heal alth, sa safety an and wellb llbein ing of

• f th

the envir ironment, ou

• ur stakeholders an

and ou

• ur people
• le. Through

th this is cu cult lture we will ill build ild valu alue for

23

Environment Social Governance

Wildlife protection Water use & management Waste management & reduction GHG emissions Energy use & reduction Air quality Waste rock & tailings management Noise management Community focused fisheries offset Closure & reclamation Inuit Framework Agreement Inuit Impact Benefit Agreement Community engagement Stakeholder engagement Community support & development Hiring practices Transparency & disclosures Management structure Business ethics Compensation Diversity & inclusion Risk & incident management Data security & privacy

Sabina embraces diversity in all of our workplaces which has contributed to maintaining a happy and safe workforce and environment

In Investment Hig ighli lights and Catalysts

❑ Continued drilling results ❑ Commencement of detailed engineering ❑ Updated feasibility and resource estimate due Q1, 2021 ❑ Continued pre-development earthworks to prepare for underground ramp ❑ Ready for financing window to make a production decision

24

Back River is a Company Maker

+1800% This Bull Gold Market?

Sabina is fortunate to own one of the best development projects in the sector. Shovel ready, district scale, large high grade and in Canada: positioned for a re-rating once a production decision is made

Sabina Share Price 2005-current

Sabina undervalued compared to sim imil ilarly advanced peers

25

No Value ascribed for:

❑ Multi-generational district owned 100% by Sabina – imbedded growth ❑ Premier jurisdiction ❑ Remaining ounces in mineral resource estimate & exploration upside ❑ Vault, Llama & Nuvuyak potential for extended mine life and enhanced economics ❑ Hackett River Royalty – option on silver for the future ❑ Environmental and Social Licenses in hand

BACK RIVER IS A COMPANY MAKER AND A COVETED PROJECT

5.24x 1.21x 1.12x 1.07x 0.90x 0.83x 0.83x 0.78x 0.77x 0.73x 0.73x 0.71x 0.68x 0.66x 0.64x 0.60x 0.56x 0.56x 0.52x 0.51x 0.50x 0.49x 0.47x 0.46x 0.37x 0.37x 0.36x 0.31x 0.29x 0.26x 0.23x 0.23x 0.22x 0.17x 0.15x 0.00x 1.00x 2.00x 3.00x 4.00x 5.00x 6.00x Goldquest Orla Artemis Rupert Pure Gold Minera Alamos Midas Great Bear Falco Sabina Marathon Osisko Mining Barsele Belo Sun Corvus Almaden Liberty Gold Standard Orezone Seabridge Condor Bluestone Integra Probe Vista Lumina First Mining Troilus Novagold Atac Solgold Columbus Bonterra Inv Metals Eastmain

Average = 0.70x

P/NAV – Gold Developers

Source: National Bank Financial August 23, 2020

Capit ital Structure & Coverage

Sabina Gold & Silver Corp.

Symbol SBB Listed exchange OTCQX Market capitalization ~C$850million Shares outstanding ~325million Shares outstanding (diluted) ~340 million Cash ~C$75 million Debt None 52 week trading range C$.71 -$2.66 Recent Price ~C$2.60

Analyst Coverage

BMO Capital Markets Andrew Mikitchook Paradigm Capital Don MacLean Cormark Securities Brock Colterjohn RBC Capital Markets Mark Mihaljevic Canaccord Kevin MacKenzie Echelon Partners Ryan Walker TD Securities Arun Lamba Industrial Alliance George Topping Cantor Fitzgerald Matt O’Keefe National Bank Financial John Sclodnick Sprott Capital Partners Chris Tonkin

Major Shareholders Holdings (I&O)

Dundee Precious Metals 9.8% Sun Valley Gold 8.5% Zhaojin 9.9% Wheaton Precious 4.3% Management (options incl.) 1.8%

26

Average 12 month target price C$3.40

Management & Board

Combined exploration, mine development, permitting operations & capital markets experience in over 87 projects & companies

Executive Management

Bruce McLeod President, CEO & Director Elaine Bennett VP Finance & CFO Nicole Hoeller VP Communications & Corp. Secretary

Technical Management

Angus Campbell VP Exploration Matthew Pickard VP Environment & Sustainability

Walter Segsworth (Chairman) David Fennell James Morton Anthony Walsh Anna Stylianides Leo Zhao David Rae Bruce McLeod, President & CEO

Board of Directors

27

28

Thank you!

Back k Riv iver Feasibili lity Study QA/QC

The FS was prepared under the direction of JDS Energy & Mining Inc. by leading independent industry consultants, all Qualified Persons (QP) under National Instrument 43-101.

Angus Campbell, P.Geo, Vice-President, Exploration, is a qualified person under NI-43-101 where the information relates to mineral resource estimates and Jeff Eng, P.Eng Director, Engineering are qualified persons under NI 43-101 for the feasibility study and both approve the scientific and technical information contained herein. Further information can be found at Technical Report for the Initial Project Feasibility Study on the Back River Gold Property, Nunavut” dated October 28, 2015 and filed on SEDAR at http://www.sedar.com.

Qualified Person, Designation Company QP Responsibility/Role

Gord Doerksen, P.Eng. JDS Energy & Mining Inc. Executive Summary, Introduction, Reliance on Other Experts, Reserves, Infrastructure, Market Studies, Capex, Opex, Economic Analysis, Adjacent Properties, Environmental, Other Relevant Data, Interpretations, Recommendations, References, Abbreviations, Project Execution Plan, Logistics, Infrastructure, G&A Dino Pilotto, P.Eng. JDS Energy & Mining Inc. Mining Methods Andrew Fowler, MAusIMM, CP (Geo) AMC Mining Consultants (Canada) Ltd. Mineral Resource Estimates for George Dinara Nussipakynova, P.Geo AMC Mining Consultants (Canada) Ltd. Mineral Resource Estimates for Goose John Morton Shannon, P.Geo AMC Mining Consultants (Canada) Ltd. Property Description, Accessibility, History, Geology, Deposits, Exploration, Drilling, sample Preparation, Data Verification Maritz Rykaart, P.Eng. SRK Consulting (Canada) Inc. Geochemistry, Tailings Management, Water Management Stacy Freudigmann, P.Eng Canenco Canada Inc. Metallurgy, Recoveries, Process Rob Mercer, Ph.D., P.Eng Knight Piésold Ltd. Geomechanical

29

CIM definitions were used for the resources.

• Ms. D. Nussipakynova, P.Geo. and Dr. A. Fowler, Ph.D., MAusIMM, CP (Geo), both

from AMC and Qualified Persons under NI 43-101, take responsibility for the Mineral Resource Estimates. Open pit resources are constrained by an optimized pit shell at a gold price of US$1,500 oz. The cut-off grade applied to the open pit resources is 1.0 g/t Au. The underground cut-off grade is 4.0 g/t Au for all George resources (LCPN, LCPS, LOC1, LOC2, GH, and Slave), 3.5 g/t Au for Goose Main, Echo, and Llama, and 4.5 g/t for the Umwelt deposit. The George resources were estimated within mineral domains expanded to a minimum width of 2 m for the underground resources. Drilling results up to December 31, 2013 are included, except for Echo (July 4, 2014) and LOC1 and LOC2 (July 21, 2014). The numbers might not add due to rounding. Measured and Indicated Resources are inclusive of Reserves. Resources that are not reserves do not have demonstrated economic viability. 30 A gold price of US$1,250/oz is assumed. An exchange rate of CDN$1.15 to US$1.00 is assumed. The numbers might not add due to rounding . Notes for open pit: Dilution and recovery factors are applied as per open pit mining method. A COG of 2.08 g/t was used for the Umwelt Open Pit Mineral Reserve Estimate. A COG of 2.14 g/t was used for the Llama Open Pit Mineral Reserve estimate. A COG of 2.07 g/t was used for the Goose Main Open Pit Mineral Reserve estimate. Notes for underground: Dilution and recovery factors are applied as per underground mining method. A COG of 3.86 g/t was used for the Umwelt underground Mineral Reserve Estimate.

Mineral Resources Estimate Mineral Reserve Estimate

Back River Mineral Resource and Reserve Estimates QA/QC

Hackett Riv iver QA/QC

The updated mineral resource estimate was originally prepared by Glencore (previously Xstrata) under the JORC code and was reported by Glencore on May 3, 2013 in its annual report of mineral resources and reserves as at December, 31, 2012. Glencore’s updated mineral resource estimate has been reviewed by Sabina and is stated in the Report dated July 31, 2013 and titled “Sabina Gold & Silver Corp. Hackett River Property Royalty NI 43- 101 Technical Report, Nunavut, Canada” in accordance with NI 43-101 thus conforming to CIM Definition Standards. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied.

31