Vista GOLD Announces Updated MT Todd Preliminary Feasibility Study Showing Strong Returns at US$1300 GOLD Price
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__________________ NEWS _________________
VISTA GOLD ANNOUNCES UPDATED MT TODD PRELIMINARY FEASIBILITY STUDY
SHOWING STRONG RETURNS AT US$1300 GOLD PRICE
Denver, Colorado, January 24, 2018 - Vista Gold Corp. (“Vista” or the “Company”) (NYSE American and TSX:
VGZ) today announced the positive results of an updated preliminary feasibility study (the “PFS”) for its Mt Todd gold
project ( “Mt Todd” or the “ Project”) in Northern Territory, Australia. The PFS is based on the results of a
comprehensive review of all aspects of the Project and the re-design of elements of the process flow sheet, incorporating
automated sorting and grinding circuit design changes in a 50,000 tonne per day (“tpd”) project. The process
improvement efforts have resulted in reduced operating costs, increased gold recovery and higher gold production at
Mt Todd. Management of Vista believes that the design changes have allowed Vista to achieve a significant
improvement in the Project’s economics at the current gold price. The PFS was authored by Tetra Tech Inc. with Mine
Development Associates, Resource Development Inc., Proteus EPCM Engineers (a Tetra Tech Company), and
POWER Engineers, Inc. Unless otherwise specified, all $ amounts in this press release are expressed in US$.
Highlights of the updated PFS include:
• Estimated proven and probable reserves of 5.85 million ounces of gold (221.0 million tonnes at 0.82 g Au/t)
at a cut-off grade of 0.40 g Au/t, a decrease of 0.9% from the Company’s May 2013 PFS(1);
• Average annual production of 382,211 ounces of gold per year over the life of the Project, including average
annual production of 479,450 ounces of gold per year during the first five years of operations;
• Life of mine average cash costs of $645 per ounce, including average cash costs of $571 per ounce during the
first five years of operations;
• A 13 year operating life;
• Initial capital requirements of $839 million; and
• After-tax NPV5% of $679.0 million and IRR of 20.5% at a $1,300 per ounce gold price with a $0.80:AUD1.00
exchange rate.
(1) See Cautionary Note to United States Investors below.
Vista’s President and CEO, Frederick H. Earnest, commented, “In 2016, we began an effort to review all aspects of the
Mt Todd development plan, focused on improving the economics of the Mt Todd gold project. The results of this
updated PFS demonstrate that Mt Todd is a robust project at today’s gold price and foreign exchange rate. We believe
it is a world class project that enjoys long-standing government and community support. As we announced earlier this
week, we have received the last major e nvironmental permit for the Project. We believe this environmental
authorization, together with the PFS results that we are announcing today provide a solid foundation for continued
advancement of Mt Todd and an improved valuation for the Vista shareholder.”
He added, “Through the comprehensive testing and design work completed over the past 18 months, we have
significantly improved Mt Todd. The incorporation of automated sorting technology enabled us to improve the grade
and reduce the quantity of feed to the newly designed grinding circuit. By using the excess capacity in the high pressure
grinding roll (“HPGR”) crushing circuit, and changing to a more efficient 2 -stage grinding circuit, we are able to
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economically grind to 60 microns and achieve an expected gold recovery of 86.4% (net of solution losses). As a result,
gold recovery is expected to increase 4.1% net of sorting losses. The reduced feed to the grinding circuit and
efficiencies in the design of the grinding circuit result in lower operating costs, in part due to a 6% reduction in required
power. The combination of increased gold recovery, higher gold production, and reduced power consumption, results
in an economically robust, advanced stage gold development project with a 20.5% after-tax IRR at a $1,300 gold price.”
Vista’s senior management team is attending the AME Mineral Exploration Roundup January 24-25, 2018 in
Vancouver and will be available to discuss these results at the conference. A conference call and webcast to discuss
highlights of the PFS will be held Tuesday, January 30, 2018 at 2:00 pm MST. Call-in details are located at the end of
this release.
Jessica Spriet, Rex Bryan, and Erik Spiller on behalf of Tetra Tech, Thomas Dyer, on behalf of Mine Development
Associates, Deepak Malhotra, on behalf of Resource Development Inc., and Zvon Ponos, on behalf of Proteus EPCM
Engineers, all independent Qualified Persons as defined by Canadian Na tional Instrument 43-101 (“NI 43-101”),
prepared or supervised the preparation of the information that forms the basis for the scientific and technical
information disclosed herein and they have reviewed this press release and consented to its release. Dr. Deepak
Malhotra has verified the metallurgical testing program and data in respect o f the process improvements. For
additional information on data verification, quality assurance and control, key assumptions and other matters relating
to the Project, see Vista’s Annual Report Form 10-K as filed on February 22, 2017.
Highlights
Highlights of the PFS are presented in the table below.
50,000 tpd @ $1,300/oz Au Years 1-5 Life of Mine (“LOM”)
(13 years)
Annual
Average Total Annual
Average Total
Average Milled Grade (g Au/tonne) 0.98 0.82
Payable Gold (000’s ozs) 479 2,397 382 4,956
Gold Recovery 86.4% 85.8%
Cash Costs ($/oz) $571 $645
Strip Ratio (waste:ore) 2.83 2.52
Initial Capital ($ millions) $839
After-tax Payback (Production Years) 3.2
Pre-tax NPV5% ($ millions) $1,178
After-tax NPV5% ($ millions) $679
IRR (Pre-tax / After-tax) 27.3% / 20.5%
Note: Economics presented using $1,300/oz gold and a flat $0.80 USD : $1.00 AUD exchange rate and assumes deferral of certain
Territory tax obligations as well as realization of equipment salvage values at the end of the mine life.
Project Economics
The following table provides additional details of the Project’s after-tax economics at variable gold price s and
Australian dollar assumptions.
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Foreign
Exchange
(US$/AUD)
Gold Price
$1,100 $1,200 $1,300 $1,400 $1,500
IRR NPV5
IRR NPV5
IRR NPV5
IRR NPV5
IRR NPV5
0.70 15.9% $439 20.5% $632 24.9% $825 29.1% $1,016 33.2% $1,208
0.75 13.8% $366 18.3% $559 22.6% $752 26.8% $944 30.8% $1,136
0.80 11.9% $292 16.3% $486 20.5% $679 24.6% $872 28.6% $1,063
0.85 10.1% $222 14.3% $412 18.5% $606 22.5% $799 26.4% $991
0.90 8.3% $150 12.5% $339 16.6% $532 20.6% $726 24.4% $918
Note: Changes in Foreign Exchange rates are only applied to operating costs and not applied to either initial or sustaining capital costs.
Capital Costs
Key capital expenditures for initial and sustaining capital requirements are identified in the following table.
Capital Expenditures ($Thousands)
50,000 tpd Initial Capital Sustaining Capital
Mining $144,278 $385,207
Process Plant $340,768 $22,992
Project Services $117,744 $82,857
Project Infrastructure $23,263 $0
Site Establishment & Early Works $19,723 $0
Management, Engineering, EPCM Services $85,941 $0
Preproduction Costs $11,127 $0
Contingency $95,988 $3,189
Sub-Total5 $838,832 $494,245
Asset Sale and Salvage $0 ($141,788)
Total Capital $838,832 $352,457
Total Capital per payable ounce gold $169 $71
Note: may not add due to rounding.
Operating Costs
The following table presents a breakdown of operating costs. The Project includes a 70MW power plant in the initial
capital. Power is anticipated to be generated by gas-fired reciprocating engines (nominal 10MW capacity). The Project
consumes all power generated during the operating life. Self-generated power creates significant savings in operating
costs compared to a grid-sourced power solution. During the four years of reclamation and closure, the PFS assumes
Vista will continue generating power and will sell 20MW of power into the Northern Territory electrical grid, for which
there is a known market and indicative purchase rates have been provided by the government-owned utility.
Operating Cost – 50,000 tpd First 5 Years LOM Cost
Per tonne
processed Per ounce Per tonne
processed Per ounce
Mining $7.06 $260.23 $6.08 $270.97
Processing $6.66 $245.30 $6.72 $299.50
Site General and Administrative $1.18 $43.43 $1.22 $54.40
Jawoyn Royalty $0.35 $12.93 $0.29 $12.91
Water Treatment $0.07 $2.74 $0.09 $3.58
Tailings Management $0.08 $2.91 $0.08 $3.51
Refining Costs $0.09 $3.13 $0.07 $3.11
Power Credit 0 $0.00 -0.062 -2.67
Total Cash Costs $15.49 $570.68 $14.48 $645.33
Note: Jawoyn Royalty and refinery costs calculated at $1,300 per ounce gold. May not add due to rounding.
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Mining and Production
The mine plan contains 207.7 million tonnes of ore mined from the Batman open pit plus 13.4 million tonnes of ore
from the existing heap leach pad that is processed through the mill at the end of the mine life. The mine plan
contemplates that together, 221.0 million tonnes of ore containing 5.848 million ounces of gold at an average grade of
0.82 g Au/t are to be processed over the 13-year operating life of the Project. Total gold recovered is expected to be
4.956 million ounces. Average annual gold production over the life of the Project is expected to be 382,211 ounces,
averaging 479,450 ounces during the first five years of operations, with 582,032 ounces produced in the first year of
operations. Commercial production is anticipated to begin after two years of construction and commissioning.
Estimated Annual Production
The table below highlights the production schedule.
Years Ore Mined
(kt)
Waste Mined
(kt)
Strip
Ratio
(W:O)
Milled Ore
(kt)
Milled
Grade
(g/t)
Contained
Ounces
(kozs)
Mill
Production
(kozs)
-1 10,437 16,850 1.61 - - - -
1 13,174 27,284 2.07 17,750 1.19 682 582
2 23,679 32,692 1.38 17,750 0.83 473 404
3 20,112 74,220 3.69 17,799 0.95 543 463
4 34,149 54,933 1.61 17,750 1.00 570 487
5 10,843 98,928 9.12 17,750 0.95 542 462
6 6,427 71,318 11.10 17,750 0.56 317 270
7 10,429 53,987 5.18 17,799 0.55 317 270
8 14,965 43,800 2.93 17,750 0.61 349 298
9 22,633 33,942 1.50 17,750 0.78 448 382
10 37,943 14,990 0.4 17,750 1.24 709 605
11 2,895 47 0.02 17,799 0.84 481 411
12 - - - 17,750 0.49 278 224
13 - - - 7,895 0.54 137 98
Total 207,687 522,990 2.52 221,041 0.82 5,848 4,956
Note: May not add due to rounding. Total milled ore includes material from the heap leach pad that is planned to be processed at the end of the mine life.
Project Mineral Reserves and Resources
The table below illustrates the updated reserve and resource estimate for the Project. The effective date of the Batman
and Quigleys deposits resource estimates is January 24, 2018. The effective date of the heap leach resource estimate
is July 9, 2014.
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Mt. Todd Gold Project Reserves – 50,000tpd, 0.40 g Au/t cut-off and $1,250 per ounce gold
Batman Deposit Heap Leach Pad Quigleys Deposit Total
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Proven 72,672 0.88 2,057 - - - - - - 72,672 0.88 2,057
Probable 135,015 0.82 3,559 13,354 0.54 232 - - - 148,369 0.79 3,791
Proven & Probable 207,687 0.84 5,616 13,354 0.54 232 - - - 221,041 0.82 5,848
Mt. Todd Gold Project Resources
Batman Deposit Heap Leach Pad Quigleys Deposit Total
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Tonnes
(000s)
Grade
(g/t)
Contained
Ounces
(000s)
Measured 77,725 0.88 2,191 - - - 457 1.27 19 78,182 0.88 2,210
Indicated 200,112 0.80 5,169 13,354 0.54 232 5,743 1.12 207 219,209 0.80 5,608
Measured &
Indicated 277,837 0.82 7,360 13,354 0.54 232 6,200 1.13 225 297,391 0.82 7,818
Inferred 61,323 0.72 1,421 - - - 1,600 0.84 43 62,923 0.72 1,464
Note: Measured & indicated resources include proven and probable reserves. Batman and Quigleys resources are quoted at a 0.40g Au/t cut-off grade. Heap
Leach resources are the average grade of the heap, no cut-off applied. Economic analysis conducted only on proven and probable reserves. Rex Bryan of Tetra
Tech is the Qualified Person responsible for the geologic resource estimates. Thomas Dyer of Mine Development Associates is the Qualified Person responsible for
developing reserves for the Batman deposit. Deepak Malhotra of Resource Development Inc. is the Qualified Person responsible for the metallurgical data and
program, and for developing reserves for the heap leach. See Cautionary Note to United States Investors below.
Project Description
Gold mineralization in the Batman deposit at the Project occurs in sheeted veins within silicified
greywackes/shales/siltstones. The Batman deposit strikes north-northeast and dips steeply to the east. Higher grade
zones of the deposit plunge to the south. The core zone is approximately 200-250 meters wide and 1.5 km long, with
several hanging wall structures providing additional width to the deposit. Mineralization is open at depth as well as
along strike, although the intensity of mineralization weakens to the north and south along strike.
In addition to the Mt Todd mining licenses, Vista controls over 1,100 sq. km of contiguous exploration licenses – all
of which are located at the southeast end of the Pine Creek District. Various gold targets have been identified in early-
stage, grass roots exploration programs along the Cullen-Australis and Batman-Driffield structural corridors, the latter
of which is the host to the Batman deposit. To-date, Vista’s exploration efforts have primarily focused on the Batman
deposit. The Company is now in a position to expand its exploration activities in search of new deposits.
The Project is designed to be a conventional, owner-operated, large open-pit mining operation that will utilize large-
scale mining equipment in a blast/load/haul operation. Ore is planned to be processed in a large comminution circuit
consisting of a gyratory crusher, two cone crushers, two HPGR crushers, and primary grinding by two ball mills and
secondary grinding by six horizontal IsaMills as discussed in greater detail below. Vista plans to recover gold in a
conventional carbon-in-pulp (“CIP”) recovery circuit.
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Metallurgy, Processing and Infrastructure
Vista has completed extensive metallurgic test work that was announced in separate press releases dated May 22, 2013,
July 21, 2017 and November 24, 2017.
Vista’s metallurgic test work programs support: (1) ore hardness estimates at the Batman deposit that are consistent
and do not change at depth; (2) the selection of HPGR, automated sorting and 2-stage grinding technologies as part of
the comminution circuit; (3) estimated gold recovery rates based on optimized grind size and leach conditions; and (4)
the processing of material from the historic heap leach pad at the end of the proposed mine life.
Significant improvements to the Project have been achieved through design changes in the comminution circuit. Vista
plans to screen the HPGR crusher product at 16 mm (5/8”) and use automated sorting technology (both x -ray
transmission and laser) to remove the material that is sub-economic. Testing indicates that approximately 10% of the
run-of-mine plant feed can be eliminated with only a 1.3% gold loss using automated sorting. The excess capacity in
the HPGR circuit will be employed to create a final product that is nominally 3.5 mm (1/8”) or, approximately 50%
smaller than previously planned. This material will be wet screened and then classified to provide feed to the redesigned
primary and secondary grinding circuits. The Company has selected smaller, more energy efficient ball mills for the
primary grinding circuit and horizontal IsaMills for the secondary grinding circuit. Together, these mills are expected
to efficiently produce a final product that is nominally 60 microns in size (a 33% reduction from previous studies).
Leaching tests conducted at this finer grind size indicated that an overall gold recovery of 86.4% (net of solution losses)
can be expected, a significant improvement from the previous 81.7% recovery. This results in a 4.1% increase in total
gold production (net of sorting losses).
The robust comminution circuit is designed to process material with an average bond-work index 5% in excess of actual
rock hardness based on the test work completed. Gold will be recovered through a traditional CIP circuit. Recovery
rates are based on the results of 41 tests recently completed at present design conditions in addition to the tests
completed in 2013.
Because the Project was an operating mine, infrastructure exists that reduces initial capital expenditure and significantly
reduces capital risk related to infrastructure construction, which has been a major source of capital overruns in the
mining industry over the last decade. Existing mining infrastructure items include:
• an existing tailings storage facility that will receive two raises and is expected to contain 62 million tonnes of
material processed;
• an existing fresh water storage reservoir that will receive a two-meter dam raise and will harvest stormwater
sufficient to provide process water for year-round operations;
• a natural gas pipeline at site that can supply sufficient natural gas to meet the Project’s energy requirements
and would save considerably on project operating costs compared to grid-supplied power;
• a paved road to site;
• current electrical connection to the Northern Territory electric grid; and
• process plant location has been cleared and graded, resulting in reduced earthworks costs due to the process
plant location being the same as the previous process plant.
Other benefits of Mt Todd’s Northern Territory location include:
• the Stuart highway – the main North / South highway in the Northern Territory is less than 15 km from the
project site;
• rail line parallel to the Stuart highway; and
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• the regional center of Katherine (population approximately 12,000) less than 60 km from site and the
Territory capital of Darwin less than 300 km from site, which has port access.
Vista continues to work with the communities of Katherine and Pine Creek to develop a community-based project as
opposed to the more typical fly-in, fly-out project, which is generally more expensive and limits the economic benefits
of projects to local communities.
Opportunities for Additional Project Improvement
The PFS uses a natural gas price derived from east coast gas pricing. Historically the Northern Territory gas grid was
isolated from the national market and pricing was based on local supply and demand. With the construction of the
Northern Gas Pipeline (presently in progress), producers of natural gas will be able to sell gas to higher value markets
on the east coast of Australia. Presently there is little demand for NT gas on the east coast. Vista has used a natural
gas price derived from the east coast market. The Company believes that there is significant opportunity to achieve a
lower gas price when it is able to commit to the delivery of gas.
The power plant, as presently designed, is situated at the mine site. This results in an AUD 0.60 per GJ pipeline charge
for transportation of gas in a spur line. The Company has completed preliminary evaluations to consider moving the
location of the power plant to a location near the main NT gas pipeline to eliminate this sustained operating cost.
Additional capital would be required, but reduced operating costs could be achieved. The Company may elect this
option after further evaluation.
The Company has a known resource at the Quigleys deposit. Additional drilling and metallurgical testing is required
to develop mine plans and ultimately convert part of the Quigleys resource to either proven or probable reserves. The
estimated grade of the Quigleys deposit is higher than the estimated average grade of the Batman deposit and could
provide a source of higher-grade feed in the mid years of the Project when higher stripping in encountered and the
average grade of feed to the plant is expected to decrease.
Conference Call Details
A conference call and webcast to discuss highlights of the PFS will be held Tuesday, January 30, 2018 at 2:00 pm
MST. A presentation accompanying the conference call will be made available on the Company’s website prior to the
conference call.
Toll-free in North America: 888-378-4413
International: 647-792-1280
Confirmation Code: 8526874
This call will also be web-cast and can be accessed at the following web location:
http://event.on24.com/r.htm?e=1591324&s=1&k=D07C2A33BFD459430C3091BC1FBE6A04
This call will be archived and available at www.vistagold.com after January 30, 2018. Audio replay will be
available for 21 days by calling toll-free in North America: 888-203-1112, passcode 8526874.
Detailed Report
A NI 43-101 Technical Report will be filed on SEDAR within 45 days and will be available on our website at that time.
As part of the sensitivity analysis of the Project, Vista intends to complete and present the results of an alternate 33,000
tpd project as part of the NI 43-101 report.
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About Vista Gold Corp.
The Company is a well-funded gold project developer. Our principal asset is our flagship Mt Todd gold project in
Northern Territory, Australia. Mt Todd is the largest known undeveloped gold project in Australia.
For further information, please contact Connie Martinez at (720) 981-1185.
For more information about our projects, including technical studies and resource estimates, please visit our website
at www.vistagold.com.
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the U.S. Securities Act of 1933, as amended, and U.S. Securities
Exchange Act of 1934, as amended, and forward -looking information within the meaning of Canadian securities laws . All statements, other
than statements of historical facts, included in this press release that address activities, events or developments that Vista expects or anticipates
will or may occur in the future, including such things as, the Company’s continued work on the Mt Todd gold project, process improvements
will result in lower operating costs, reduced power consumption, increased gold recovery and higher gold production, estimate s of reserves
and resources, projected project economics, including anticip ated production, average cash costs, before and after -tax NPV, IRR, capital
requirements and expenditures, gold recovery after-tax payback, operating costs, average tonne per day milling, mining methods procedures,
recovery, project design, life of mine, t he Project is robust and world class, the continued advancement of Mt Todd, the improved valuation
for shareholders, the Project is an advanced stage development project, estimated gold recovery, average annual production overtime,
commencement of commercial production, timing for construction and commissioning, exploration of new deposits at Mt Todd, size of final
product through the HPGR crusher, potential costs or savings related to gas price, ability to convert Quigley’s estimate to proven or probable
reserves, grade of minerals at the Quigley deposit, timing for and completion of PFS and other such matters are forward -looking statements
and forward-looking information. The material factors and assumptions used to develop the forward-looking statements and forward-looking
information contained in this press release include the following: the accuracy of the results of the PFS, mineral resource and reserve estimates,
and exploration and assay results, the terms and conditions of our agreements with contractors and our approved business plan, the anticipated
timing and completion of a feasibility study on the Project; the anticipated receipt of required permits; no change in laws that materially impact
mining development or operations of a mining business, the potential occurrence and timing of a production decision; the anticipated gold
production at the Project; the life of any mine at the Project; all economic projections relating to the Project, including e stimated cash cost,
NPV, IRR, and initial capita l requirements; and Vista’s goal of becoming a gold producer. When used in this press release, the words
“optimistic,” “potential,” “indicate,” “expect,” “intend,” “plans,” “hopes,” “believe,” “may,” “will,” “if,” “anticipate,” and similar expressions
are intended to identify forward-looking statements and forward-looking information. These statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance or achievements of Vista to be materially d ifferent from any
future results, performance or achievements expressed or implied by such statements. Such factors include, among others, unc ertainty of
resource estimates, estimates of results based on such resource estimates; risks relating to cost increases for capital and operating costs; risks
related to the timing and the ability to obtain the necessary permits, risks of shortages and fluctuating costs of equipment or supplies; risks
relating to fluctuations in the price of gold; the inherently hazardous nature of mining-related activities; potential effects on Vista’s operations
of environmental regulations in the countries in which it operates; risks due to legal proceedings; risks relating to politic al and economic
instability in certain countries in which it operates; as well as those factors discussed under the headings “Note Regarding Forward -Looking
Statements” and “Risk Factors” in Vista’s Annual Report Form 10 -K as filed on February 22, 2017 and other documents filed with the U.S.
Securities and Exchange Commission and Canadian securities regulatory authorities. Although Vista has attempted to identify important
factors that could cause actual results to differ materially from those described in forward-looking statements and forward-looking information,
there may be other factors that cause results not to be as anticipated, estimated or intended. Except as required by law, Vi sta assumes no
obligation to publicly update any forward-looking statements or forward-looking information; whether as a result of new information, future
events or otherwise.
Cautionary Note to United States Investors
The United States Securities and Exchange Commission (“SEC”) limits disclosure for U.S. reporting purposes to mineral deposit s that a
company can economically and legally extract or produce. This press release uses the terms “Proven reserves” and “Probable reserves”.
Reserve estimates contained in this press release are made pursuant to NI 43 -101 standards in Canada and do not represent reserves under
SEC Industry Guide 7 standards. Under SEC Industry Guide 7 standards, a “final” or “bankable” feasibility study is required to report reserves,
the three -year historical average price is used in any reserve or cash flow analysis to designate reserves and all necessary permits an d
government approvals must be filed with the appropriate governmental authority. Additionally, this press release uses the terms “Measured
resources”, “Indicated resources”, and “Measured & Indicated resources”. We advise U.S. investors that while these terms are Canadian
mining terms as defined in accordance with NI 43 -101, such ter ms are not recognized under SEC Industry Guide 7 and normally are not
permitted to be used in reports and registration statements filed with the SEC. Mineral resources described in this press release have a great
amount of uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not
constitute SEC Industry Guide 7 compliant “reserves” as in-place tonnage and grade, without reference to unit measures. The term “contained
gold ounces” used in this press release is not permitted under the rules of the SEC. “Inferred resources” have a great amount of uncertaint y
as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that any or al l part of an Inferred
resource will ever be upgraded to a higher category. U.S. Investors are cautioned not to assume that any part or all of mineral deposits
in these categories will ever be converted into SEC Industry Guide 7 reserves.