The Gum Creek Gold Project covers approximately 800km2 of the Gum Creek Greenstone Belt located in the East Murchison Province of the Western Australian Archaean Yilgarn Craton. Four dominant styles of gold mineralisation are recognised in the belt including both free milling and refractory mineralisation types. For the free milling Howards Resources, gold mineralisation is typically associated with sulphide poor quartz veins of 1 to 3mm thickness, within a shear zone up to 50m wide in mafic host rocks. For Swan and Swift free milling Resources, gold mineralisation is hosted within conjugate quartz-carbonate sulphide vein sets with individual veins up to several metres thick and extending over tens of metres in carbonate altered mafic host rocks. Coarse free gold is often observed in the veins.

The Study assumed a standard drill, blast, load and haul mining methodology which is well known and widely used in Western Australia.

Mining at Gum Creek will be undertaken by mining contractors, with personnel operating on a fly-in, fly-out out basis from Perth, with local residents employed where possible.

Production from Swan and Swift includes cutbacks to the existing open pits, while mining at Howards will be from a new open pit.

The Study is based on mining open pit Resources from the Swan, Swift and Howards Resources and processing it through a new 800ktpa Carbon in Leach (“CIL”) processing plant to produce approximately 290koz gold over an initial six year mine life.

The Gum Creek Gold Project includes a 600,000tpa process facility (not in operation).

Feed from Swan, Swift and Swan South will be hauled to the process plant ROM pad, whilst feed from Howards will be stockpiled and hauled via road train as required. Feed to the process plant will be blended in accordance with the delivery schedule from each open pit. Higher value material will be processed preferentially to improve the Project NPV.

The comminution and metallurgical flow sheet design was undertaken by an engineering contractor. The design includes three stages of crushing, a single ball mill, gravity circuit, cyanide leach, elution circuit and gold room. The throughput rates for fresh and oxide/transitional ore is 800ktpa and 1Mtpa respectively.

Historical metallurgical recoveries from Swan and Swift range between 97-99%. Metallurgical testwork, including gravity and cyanide leach tests on Swan and Swift Resources confirmed these recoveries for a grind size of P80 of 75µm. The Study assumes average gold recovery of 96% for the Swan and Swift Resources. Metallurgical testwork undertaken on Howards mineralisation resulted in average recoveries of 91.3% for a grind size of P80 of 75µm. The Study assumes a metallurgical recovery of 91% for Howards. Overall, the average metallurgical recovery over the LOM is 95%.