Five inter-related styles of mineralization are observed on the Project.

1. Fault-fill breccia veins subparallel to foliation (S1), hosted in carbonaceous mudstone (BC Vein style).

2. Vertical NE-trending extensional (AP) veins dominantly hosted in sandstone units in S3 cleavages (Cow Mountain, Island Mountain and Mosquito Creek vein mineralization).

3. Fractured moderately dipping ENE-trending shear veins, hosted in sandstone units (Cow Mountain, Island Mountain and Mosquito Creek Vein mineralization).

4. Gold-bearing sulphide replacements hosted in fold hinges of calcareous sandstone units (Island Mountain and Mosquito Creek Replacement Style).

5. Gold-bearing sulphide replacement mineralization hosted in fault-bounded calcareous siltstone units (Bonanza Ledge style).

Vein mineralogy is largely simple, composed predominantly of quartz and lesser iron carbonate gangue. Pyrite is the dominant sulphide mineral with vein content ranging from trace amounts to tens of percent. Pyrite content appears to have a direct association with gold content in the veins. Although galena and arsenopyrite can also occur in individual veins in amounts up to several percent, these minerals generally occur in trace amounts as does sphalerite, chalcopyrite, argentite and scheelite. Generally increasing amounts of galena and argentite are related to elevated silver values. At least two sulphide events are observed in veins: one early event inter-grown with quartz and a secondary event infilling pre-existing void spaces or vein margins. The bismuth-lead sulphosalt cosalite also occurs in isolated veins and appears to be associated with high-grade gold independent of pyrite content. Cosalite is only observed as intergrowths with quartz and its timing is considered early.

Replacement mineralization in calcareous sandstones varies from fine to coarsegrained pyrite with lesser arsenopyrite. Bonanza Ledge replacement mineralization, hosted in calcareous siltstone, consists entirely of fine-grained pyrite ore. Sulphide content in replacement ore types is generally high, ranging from 10% (replacing thin calcareous bands) to massive (replacing entire beds). The timing relationship for observed mineralization types is considered to be contemporaneous, with vertical veins acting as feeders for the fault fill veins, replacement horizons and earlier shear veins.

Large veins tend to exhibit a strong silica alteration halo with pyrite contents that range from several percent to massive. Farther from the large veins, the pyrite content drops to trace amounts with intense silicification. Most of the smaller veins have strong silica with trace pyrite proximal to vein margins; they rarely show the massive pyrite deposition exhibited in larger veins. A widespread moderate silica envelope with patchy but intense silica closer to the veins is observed within the vein corridors. More distal from the vein corridors, the intensity of silica alteration becomes weak and sericite is the dominant alteration mineral with an iron carbonate halo outside of the sericite. Localized veins show argillic and chloritic alteration within the vertical AP veins.

Vein deposits on Cow Mountain and Island Mountain are composed predominantly of quartz and lesser iron carbonate gangue. Pyrite is the dominant sulphide mineral with vein content varying from trace amounts to tens of percent and appears to have a direct association with gold content in the veins. These veins range in width from millimetres to several metres, and where the density is high, they are considered a vein corridor and trend over 300 m within the sandstone unit. The veins are near-vertical and plunge to the northeast within the sandstone unit.

Axial planar (“AP”) veins are the primary source of vein hosted gold within the Mosquito Creek, Shaft, Valley and Cow deposits. AP veins are vertically dipping and strike from N030 to N050 Az. Vein corridors are defined as a high-density zone of mineralized AP veins.

Extensional veins are classified based on surface and underground mapping as veins with margins oblique to foliation. Extensional veins are locally observed as conjugate sets to have formed pre-F3 buckling in the early stages of D3 compression. The extensional veins sulphide mineralized when they are intersected by AP veins.

Fault-fill breccia veins such as that of the BC Vein are subparallel to foliation and hosted in carbonaceous mudstone. This vein is continuous along strike for 1.4 km and is bound on the hanging wall by carbonaceous mudstone and on the footwall by calcareous siltstone. The vein dips moderately at 65° to the northeast. Mineralization within the fault-filled breccia vein consists of fine disseminated pyrite in rehealed breccia matrix.

Replacement mineralization in calcareous sandstones varies from fine- to coarse-grained pyrite with lesser arsenopyrite. Bonanza Ledge replacement, hosted in calcareous siltstone, consists of fine-grained pyrite ore only. Sulphide content in replacement ore types is generally high, from 10% replacing thin calcareous bands to massive, largely replacing entire beds completely. The Bonanza Ledge replacement is fault bounded in the footwall of the BC Vein structure. The replacement deposits observed at Island Mountain and Mosquito Creek are largely controlled by the F2 fold hinges of the D2 deformation event and are hosted in calcareous siltstone and sandstone. The observed mineralization types are considered contemporaneous, with vertical veins acting as feeders for the fault fill veins, replacement horizons and earlier shear veins.

Extraction of the economic mineable inventory is proposed to be achieved through underground mining as it presented the best case from an economic, environmental and sustainable development perspective. The Project is to have production achieve average production of 4,000 tpd over the 11-year LOM. This Technical Report has focused on four underground zones: Shaft Zone, Valley Zone, Cow Zone and Mosquito Zone. The mining zones are accessed via a main portal and are interconnected by an internal ramp system.

The mineralization comprises 181 vein corridors open at depth and along strike. The main mining method selected is longhole longitudinal retreat with a combination of paste fill, cemented rockfill (“CRF”) and un-cemented rockfill (“URF”).

The selected mining method of longhole stoping, requires backfill to manage stability and achieve the planned extraction. Paste fill produced from the processed tailings and binding agents (e.g. cement), cemented rockfill, or rockfill are required in longitudinal stopes and closure areas where mining progresses towards previously mined areas. The closure areas will require placement of a higher strength plug or slab where the backfill will be undermined, with regular backfill in the rest of the stope. All excavations should be tight filled to minimize the space for potential failure and rock settlement that could result in surface subsidence. This requirement is especially critical in the shallow areas of the mine where stope failure is more likely to cause surface subsidence.

The sole mining method is longitudinal retreat long-hole stoping using a combination of CRF, URF and paste fill. This decision was driven by the average vein width, contained metal (value), and ground conditions; as well as a practical and economic influence of mineral sorter reject being available and preferentially suitable for backfill provision.

Production stopes will consist of a set of 76 mm blasthole rings configured to achieve the required powder factor. All blastholes will be loaded with emulsion with along with detonator, booster and stemming in each hole. A slot area consisting of a slot raise utilizing a contractor V30 and 102 mm raise holes drilled. Blastholes will be drilled using a longhole drill from the top sill down to the undercut drift.

The haul truck and LHD fleet will handle mineralized and waste rock material. Development headings on levels will be mucked with the 10-t LHDs. This material will be taken to level re-mucks where they will be transferred to the 50 t haulage trucks via the 14 t LHD fleet. Main decline or ramp headings will be mucked with the 14-t LHD fleet directly as they can accommodate the larger equipment. Waste material will be used as backfill material wherever possible, or stored underground for later use.

Stopes will be mucked using the 10-t LHD fleet. Similarly, to development headings, the excavated material will be transferred to a level remuck whereupon the material will be transferred to 50 t trucks using the 14-t LHD fleet. Mineralized material will be taken to the underground crusher. This crushed material will be brought to mineralized material sorting facilities on surface using a vertical conveyor.

If required, the mineralized material sorting will produce waste material that will be transported back underground, using a waste pass. This crushed waste material will be used in the uncemented and cemented waste rock backfill stream.

All LHDs and trucks will include automation options. LHDs will include tele-operated capability such that mucking and re-handling operations can continue between shifts. Trucks will include autonomous driving mode for between shifts. Operating in a three-truck convoy will enable teleoperated loading, autonomous hauling and autonomous dumping. This autonomous capability is expected to realize higher daily trucking productivities.

A total throughput of up to 4,000 tpd is planned for the Cariboo Gold Project. The mineralized material will be processed in two stages at two facilities, first at the Mine site and then shipped to QR Mill.

A new concentrator will be built at the Mine site, including crushing, mineral sorting, grinding, and flotation. The Mine site concentrator and underground facility will serve as a pre-concentrator to reduce operation and transportation costs on the overall activity. The primary crushing operation will be located underground, and the crushed product will be conveyed to the surface to feed a screen. The screen undersize will be discharged into a fine storage bin and the oversize will be sent to the coarse storage bin. The coarse material will feed a mineral sorting circuit. A fraction of the sorted concentrate will be combined with the fine storage bin material to feed a grinding and flotation circuit. The flotation concentrate and the remaining sorted concentrate will be trucked to the QR Mill for further gold leaching processing and refining.

The QR Mill is an existing plant with a daily capacity to treat 850 t of mineralized material. The QR Mill will require modifications to process higher feed grades of the concentrates from the Mine site.

The QR Mill is located near the municipality of Quesnel. The plant started operation in the mid1990s, with an initial flowsheet using grinding, gravity concentration, cyanide leaching, and carbon-in-pulp adsorption. The design criteria are based on a throughput of 850 tpd of flotation and mineral sorter concentrate at a gold grade of 20.2 g/t.

Concentrate Unloading, Storage, and Handling
The QR Mill will be fed by mineral sorter and flotation concentrates, and the old crushing circuit will no longer be required. A new conveyor will be installed to bypass the existing crushing circuit from the truck unloading station discharge to directly feed the grinding circuit.

The Mine site concentrate will be dumped by truck onto the existing crusher feed system that includes static grizzly screen, a hopper and an apron feeder. The apron feeder discharge will be transported by a new 125 m belt conveyor to the existing belt conveyor that feeds the primary ball mill.

If the hopper cannot receive the concentrate, the truck will unload into a new storage shed. The material in the storage shed will be used to feed the QR Mill when the road between Wells and QR Mill is closed. This occurs about two months per year. A loader will be used to load the concentrate from the storage shed into the feed hopper.

Grinding and Gravity Circuit
The grinding circuit is composed of two identical 3.96 m long by 3.05 m diameter ball mills with single pinion 450 kW motors, running in series. The primary ball mill is fed from the concentrate feed hopper and discharges into the cyclone feed pump box. The cyclone underflow flows to a diverter chute, which splits the slurry to the two ball mills. The secondary ball mill also discharges into the cyclone feed pump box, closing the loop.

A portion of the cyclone underflow is redirected to the gravity concentration circuit through a separate underflow port. The cyclone underflow passes over a static sieve to control the feed size. The screen overflow flows back to the ball mill, while the screen underflow feeds by gravity into the 30” Knelson concentrator. The Knelson removes approximately 0.05% by mass of gravity concentrate, and the remaining tails material overflows the machine and flows to ball mill pump box. The Knelson concentrate is sent to a shaking table and magnetic separator.

The cyclone overflow is piped to a trash screen in order to remove any debris. The trash screen underflow flows by gravity to the pre-leaching thickener.

Thickening, Leaching, and Carbon-in-Pulp Circuits
The cyclone underflow flows to the existing 10.7 m diameter conventional thickener. Flocculant is added to the thickener feed. The existing flocculant mixing tank and wetting head will be replaced to increase the mixing capacity.

The thickener underflow will be pumped to a new agitated pre-aeration tank before flowing to the leach circuit, consisting of four tanks, where cyanide and lime are added. The pre-aeration tank will be the same size as the leach tanks. Slurry will flow from one tank to the other by gravity and each tank can be by-passed to allow for maintenance. Each tank is equipped with an agitator mechanism and compressed air lines.

The thickener overflow will feed by gravity the process water tank.

The discharge of the leach circuit will feed by gravity the carbon-in-pulp (“CIP”) circuit, composed of six tanks. The slurry flows from one tank to the other by gravity and each tank can be bypassed to allow for maintenance. Inter-stage screens prevent carbon from being transferred with the slurry. All tanks are equipped with agitators. Carbon is pumped counter-current to the slurry using existing vertical pumps. Fresh carbon is fed to the last tank from the regenerated carbon vibrating screen which removes carbon fines prior to feeding the carbon to the CIP circuit.

The CIP tails flow over a vibrating safety screens to recover any small carbon particles that may have passed through the inter-stage screens before proceeding to detox.

Elution and Carbon Regeneration Circuits
The entire elution and carbon regeneration circuit will be replaced to increase the gold treatment capacity, with the exception of the regeneration kiln, which is scheduled to be replaced by the end of 2019.

This upgrade includes the following major equipment: the acid wash column, elution column, elution solution heater, fine carbon tank, barren solution tank, acid wash tank, acid neutralization tank, acid dilute tank, quench tank, fine carbon filter press, attrition tank, and electrowinning cells.

The loaded carbon from the first CIP tank will be pumped onto a screen, which returns the underflow slurry back to the same tank. The overflow carbon falls into a chute feeding the acid wash column, which uses hydrochloric acid to eliminate carbonates.

The elution column will operate in batch cycles using the ZADRA process which uses a high temperature, high pressure sodium cyanide and caustic solution to desorb gold from the carbon. The elution solution will be prepared in the barren solution tank. The barren solution will be pumped through a heat exchanger and further heated using a propane heater, and then flow through the elution column. Under the right temperature and pressure conditions in the elution column, gold desorbs from the loaded carbon and dissolves in the elution solution. The pregnant solution will flow out from the top of the elution column and will be cooled through the trim heat exchanger before being pumped to the electrowinning cells.

Carbon from the elution column is pumped to a dewatering screen where its oversize feeds the regeneration kiln and its undersize flows to the carbon fines tank. At the regenerating kiln, the carbon is heated to burn off organic contaminants.

The regenerated carbon from the kiln is cooled in a quench tank, and returned to the regenerated carbon screen which feeds the last CIP tank. As required, fresh carbon will be fed to an agitated carbon attrition tank and pumped to the same CIP tank. Carbon fines collected from the regenerated carbon screen, the kiln feed dewatering screen, and other carbon transfer waters are collected in the fine carbon tank. Carbon fines are recovered at the bottom of the tank, filtered using a filter press, and bagged to be sold.

Refinery Circuit
The cooled pregnant solution from elution is pumped to the gold refinery into two electrolysis cells running in parallel. As part of the mill elution upgrade, the two electrowinning cells, as well as the gold sludge filter and gold melting furnace, will be replaced.

The new electrowinning cells will operate at 9V. A fan will be used to evacuate fumes from b