The Timok project is located within the central zone of the Timok Magmatic Complex (TMC), in the Serbian section of the East European Carpathian Balkan Arc. The TMC has one of the highest concentrations of copper enrichment in the Tethyan Belt.

The high sulphidation epithermal (“HSE”) mineralization in the Upper Zone comprises massive sulphide, semi-massive, and also vein, stockwork, dissemination and hydrothermal breccia matrix sulphide hosted by strongly altered (advanced argillic and argillic) andesite. The HSE mineralization forms a single coherent zone at depths ranging from 400 to over 800 metres below surface. Pyrite is the dominant sulphide mineral, and the principal copper mineral is covellite with lesser enargite, bornite and chalcocite occurring in veins, hydrothermal breccias, disseminations and replacement. Gold is associated primarily with the copper sulphides.

This PEA is based on a Sub Level Caving (“SLC”) mining method. SLC is applicable through a wide range of geotechnical conditions and is typically used in massive, steeply-dipping orebodies with considerable strike length as at the Timok Project.

The underground mine will be developed in three phases:

1. The Exploration Decline consists of twin 5 meter x 5 meter ramps which will be driven straight for approximately 2,800 meters to 400 meters below the surface. This Exploration Decline will serve as the main access, egress and material haulage ramp for the mine. Exploration Decline construction is expected to take up to two years to complete. Once at depth, the upper portion of the orebody will be drilled perpendicular to the current drilling. This drilling will increase geotechnical knowledge and tighten up the existing mineral resources drill density.

2. Mine infrastructure and development including the first underground primary jaw crusher about half way down the orebody which will support production for the first 7.5 years. This Phase will begin upon receipt of the Exploitation License from the bottom of the Exploration Decline.

3. Sustaining mine infrastructure development which provides access to lower production levels and a second jaw crusher at the bottom of the orebody which will be utilized for the final 7.5 years of the mine life.

LOM material will be transported to surface by a staged underground conveyor system connecting to an overland conveyor to the process plant.

Primary ventilation consists of a push/pull system with a fresh air raise and a return air raise (RAR). Both raises will be installed using raise bore techniques from access off the Exploration Decline.

The process plant has been designed to treat an average of 8,900 tonnes per day, equivalent to 3.25M tonnes per annum. The plant will produce a single bulk concentrate and a gold bearing pyrite rougher concentrate (“Rougher Pyrite”) which will be stored in a dedicated pyritic tailings storage facility, a separate compartmentalized subset of the larger Tailings Storage Facility.

The processing flowsheet is considered conventional and consists of primary underground crushing; underground conveyors; overland conveying to the processing plant; coarse material storage bins; SAG and ball mill comminution circuit; copper flotation comprising of rougher flotation, regrind, and three stages of cleaning; copper concentrate thickening and filtration; and pyrite rougher flotation. Other supporting systems to the process plant and site are included and generally consist of reagents storage and distribution; effluent treatment; water services which include fresh, fire, service, and process water systems; compressed air services; concentrate storage and handling; grinding media storage and addition; and plant control rooms.