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Anglo Asian Mining PLC Maiden JORC Resources and Ore Reserves for Gadir

14/03/2019 7:01am

UK Regulatory (RNS & others)


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TIDMAAZ

RNS Number : 8102S

Anglo Asian Mining PLC

14 March 2019

Anglo Asian Mining plc / Ticker: AAZ / Index: AIM / Sector: Mining

14 March 2019

Anglo Asian Mining plc

Maiden JORC Mineral Resources and Ore Reserves for the producing

Gadir Underground Mine

Anglo Asian Mining plc ("Anglo Asian" or the "Company"), the AIM listed gold, copper and silver producer, is pleased to announce maiden Mineral Resources and Ore Reserves, estimated in accordance with the JORC (2012) code, for the producing Gadir Underground Mine ("Gadir") located at the Company's Gedabek Contract Area ("Gedabek") in Western Azerbaijan. The Mineral Resources and Ore Reserves are the same as those published as a Company estimate on 25 February 2019. The mineral resources estimate is based on a robust geological model, which benefits from information gathered during mining of the deposit since 2015, combined with ongoing geological work and exploration drilling.

Overview

   --    Maiden JORC Mineral Resources: 

o Measured plus Indicated Mineral Resources (at a cut-off grade of 0.5 grammes per tonne of gold) of 1,775,000 tonnes containing 145,200 ounces of gold, 736,100 ounces of silver, 3,295 tonnes of copper and 14,470 tonnes of zinc

o Inferred Mineral Resources (at a cut-off grade of 0.5 grammes per tonne of gold) of 571,000 tonnes containing 27,200 ounces of gold, 104,400 ounces of silver, 571 tonnes of copper and 2,972 tonnes of zinc

   --    Maiden JORC Ore Reserves estimate: 

o Proved and Probable Ore Reserves (at a cut-off grade of 1.2 grammes per tonne of gold) of 797,000 tonnes at a grade of 2.73 grammes per tonne gold containing about 70,000 ounces of gold, 11.86 grammes per tonne silver containing over 300,000 ounces of silver and 0.17 percent copper containing nearly 1,400 tonnes of copper

o At the current production rate, this gives over a mine life of over five-years

o These reserves are the economic part of the Measured plus Indicated Mineral Resources

-- A comprehensive three-dimensional geological model of Gadir has now been completed which will support future mining and further exploration

-- Geological exploration of additional areas of the deposit, which remains open at depth and along strike, is continuing and has the potential to further enhance this maiden resource and reserves estimate

-- Publication of these JORC mineral resources and ore reserves is in line with the Company's strategy to formalise its global resource inventory of producing assets (which also includes Gedabek Open Pit and the Ugur Open Pit). Resources and reserves estimates classified according to the JORC Code have now been prepared for all the Company's producing mines.

Gadir Background

-- The polymetallic sulphide deposit was discovered by surface exploration core drilling, and subsequently accessed via an adit tunnel in 2015. On reaching the mineralisation for further evaluation, mining of the deposit commenced.

-- Production mining has continued since 2015, on a simultaneous exploration-mining basis. However, as part of the recent strategy to formalise the resources classified in accordance with the JORC (2012) Code, the Gadir Mineral Resources report and Ore Reserves report have been prepared.

-- The mineral resource estimate was prepared utilising the extensive geological and mining information that comprised surface core drill holes (64 drill holes with a total length of 22,458 metres), underground core drill holes (338 drill holes with a total length of 15,512 metres), and 8,645 underground channel samples.

-- Total underground development as at end 2018 was over 10 kilometres, comprising nearly 7,000 metres of development tunnelling, 902 metres of decline drives, over 1,534 metres of spiral ramp and 844 metres tunnelling towards and under the northern part of the Gedabek open pit.

The Gadir JORC Mineral Resources Report can be accessed via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/8102S_2-2019-3-13.pdf

The Gadir JORC Ore Reserves Report can be accessed via the following link:

http://www.rns-pdf.londonstockexchange.com/rns/8102S_1-2019-3-13.pdf

Anglo Asian CEO, Reza Vaziri, said "I am delighted to announce the maiden JORC Mineral

Resources and Ore Reserves estimate for the Gadir deposit, which, together with our JORC Resources and Reserves estimates for our Gedabek Open Pit and Ugur underground mines, provide investors with a tangible sense of the overall mineralised potential of our main Gedabek Contract Area where we have been producing gold and copper since 2009.

"To prepare JORC resource and ore reserves estimate for a complex underground mine is a technically very difficult exercise and this resource and the reserves estimate demonstrates the high expertise of the Company's geologists. This process of comprehensive geological exploration is continuing, and as additional geological data are obtained, this mineral resource and reserve estimate will be further updated. Supporting these activities is a detailed, three-dimensional geological model of Gadir which will assist in both mining the deposit and further exploration."

Anglo Asian Group Director of Geology & Mining, Stephen Westhead, said "This maiden resource and ore reserve estimate is for Gadir only and does not include any underground mining resource potential beneath the Gedabek open pit, which is located some 500 metres from the Gadir resource. The Gadir Mineral Resources and Ore Reserves estimates assess the total mineral inventory as known from exploration and development work to date, including material immediately adjacent to areas already mined that may be re-accessed pending an intensive geological and geotechnical risk assessment. The Gadir property continues to be an important asset of the Company and, with it remaining open at depth and along strike, may yield significant further upside to Anglo Asian in the future.

"The completion of this work provides a strong understanding of the combined production profile of all operating mines, that gives a mine life until end 2024 from the current reserves. Importantly, the resources adjacent to these mineral reserves provide the opportunity to be further upgraded for future production. Additionally, exceptional exploration potential exists at not only the Gedabek Contract Area, but also at the Ordubad and Gosha Contract Areas, which will be evaluated in due course to increase the Group resources with the aim of expanding current mines and constructing new mines."

JORC (2012) Mineral Resources Statement

The Mineral Resource estimate was prepared in accordance with JORC Code (2012), which is the current edition of the JORC Code. The resources stated below are in-situ and depleted for mining development and production to the end of August 2018.

Mineral Resources

 
    CLASSIFICATION       Tonnage       Gold          Silver          Copper          Zinc 
     (Cut-off grade 
      0.5 g/t Au) 
----------------------                                           -------------  -------------- 
                           kt      g/t     koz     g/t     koz     %       t      %       t 
----------------------  --------  -----  ------  ------  ------  -----  ------  -----  ------- 
       Measured            540     3.70   64.2    17.49   303.6   0.29   1,566   1.01   5,454 
                        --------  -----  ------  ------  ------  -----  ------  -----  ------- 
       Indicated          1,235    2.04   81.0    10.89   432.4   0.14   1,729   0.73   9,016 
                        --------  -----  ------  ------  ------  -----  ------  -----  ------- 
 Measured + Indicated     1,775    2.54   145.2   12.90   736.1   0.21   3,295   0.84   14,470 
                        --------  -----  ------  ------  ------  -----  ------  -----  ------- 
       Inferred            571     1.48   27.2    5.68    104.4   0.10    571    0.52   2,972 
                        --------  -----  ------  ------  ------  -----  ------  -----  ------- 
         Total            2,347    2.29   172.4   11.14   840.4   0.19   3,866   0.78   17,442 
                        --------  -----  ------  ------  ------  -----  ------  -----  ------- 
 

JORC (2012) Ore Reserves Statement

The ore reserves estimate was also prepared in accordance with JORC Code (2012). The Ore Reserves are derived from the Measured plus Indicated Mineral Resources and are presented below.

Ore Reserves

 
        CLASSIFICATION          Tonnage      Gold          Silver         Copper 
  (Cut-off grade 1.2 g/t Au) 
                                  kt       g/t    koz    g/t     koz     %      t 
                               --------  -----  -----  ------  -----  -----  ------ 
            Proved                222     2.81    25    14.13   101    0.24    535 
                               --------  -----  -----  ------  -----  -----  ------ 
           Probable               575     2.41    45    10.99   203    0.15    852 
                               --------  -----  -----  ------  -----  -----  ------ 
            Total                 797     2.73    70    11.86   304    0.17   1,387 
                               --------  -----  -----  ------  -----  -----  ------ 
 

Mineral Resources and Ore Reserves Estimation Overview

Anglo Asian, together with the mining and geological consulting group Datamine International, prepared the resources and the reserve estimation for gold, silver and copper of the Gadir deposit. Zinc was not estimated as part of this reserve as is under study at resource level currently. Further information regarding the Mineral Resources estimation parameters per Table 1 of the JORC Code are set out in Appendix One (Section 3) and information regarding the Ore Reserves estimation parameters per Table 1 of the JORC code are set out in Appendix One (Section 4). A glossary of terminology related to the mineral resource and reserves estimate and other information is set out in Appendix Two.

Competent Person Statement

The information in the announcement that relates to exploration results, minerals resources and ore reserves is based on information compiled by Dr Stephen Westhead, who is a full-time employee of Anglo Asian Mining with the position of Director of Geology & Mining, who is a Fellow of The Geological Society of London, a Chartered Geologist, Fellow of the Society of Economic Geologists, Member of The Institute of Materials, Minerals and Mining and a Member of the Institute of Directors.

Stephen Westhead has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Stephen Westhead consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

Stephen Westhead has sufficient experience, relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking, to qualify as a "competent person" as defined by the AIM rules. Stephen Westhead has reviewed the resources and reserves included in this announcement.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**S**

For further information please visit or contact:

 
 Reza Vaziri        Anglo Asian Mining plc          Tel: +994 12 596 3350 
 Bill Morgan        Anglo Asian Mining plc          Tel: +994 502 910 400 
                   ------------------------------  ---------------------- 
 Stephen Westhead   Anglo Asian Mining plc          Tel: +994 502 916 894 
                   ------------------------------  ---------------------- 
 Ewan Leggat        SP Angel Corporate Finance      Tel: +44 (0) 20 3470 
                     LLP                             0470 
                     Nominated Adviser and Broker 
                   ------------------------------  ---------------------- 
 Soltan Tagiev      SP Angel Corporate Finance      Tel + 44 (0) 20 3470 
                     LLP                             0470 
                   ------------------------------  ---------------------- 
 Susie Geliher      St Brides Partners Ltd          Tel: +44 (0) 20 7236 
                                                     1177 
                   ------------------------------  ---------------------- 
 Gaby Jenner        St Brides Partners Ltd          Tel: +44 (0) 20 7236 
                                                     1177 
                   ------------------------------  ---------------------- 
 

Notes:

Anglo Asian Mining plc (AIM:AAZ) is a gold, copper and silver producer in Central Asia with a broad portfolio of production and exploration assets in Azerbaijan. The Company has a 1,962 square kilometre portfolio, assembled from analysis of historic Soviet geological data and held under a Production Sharing Agreement modelled on the Azeri oil industry.

The Company's main operating location is the Gedabek Contract Area ("Gedabek") which is a 300 square kilometre area in the Lesser Caucasus mountains in western Azerbaijan. The Company developed Azerbaijan's first modern operating gold/copper/silver mine at Gedabek which commenced gold production in May 2009. Mining at Gedabek was initially from its main open pit, which is an open cast mine with a series of interconnected pits.

The Company also operates the high grade Gadir underground mine, which is co-located at the Gedabek site. In September 2017, production commenced at the Ugur open pit mine, a recently discovered gold ore deposit at Gedabek. The Company has a second underground mine, Gosha, which is 50 kilometres from Gedabek. Ore mined at Gosha is processed at Anglo Asian's Gedabek plant.

The Company produced 83,736 gold equivalent ounces ('GEOs') for the year ended 31 December 2018. Gedabek is a polymetallic ore deposit that has gold together with significant concentrations of copper in the main open pit mine, and an oxide gold-rich zone at Ugur. The Company therefore employs a series of flexible processing routes to optimise metal recoveries and efficiencies. The Company produces gold doré through agitation and heap leaching operations, copper concentrate from its Sulphidisation, Acidification, Recycling, and Thickening (SART) plant and also a copper and precious metal concentrate from its flotation plant. A second dedicated crusher line has been commissioned and is now in operation for the flotation plant to enable it to operate independently of the agitation leaching plant.

The Company has forecast metal production for FY 2019 of between 82,000 to 86,000 gold equivalent ounces ("GEOs"). Of the forecast production for FY 2019, between 28,000 to 30,000 GEOs is in the form of copper and gold flotation concentrate.

Anglo Asian is also actively seeking to exploit its first mover advantage in Azerbaijan to identify additional projects, as well as looking for other properties in order to fulfil its expansion ambitions and become a mid-tier gold and copper metal production company.

Appendix One: JORC Code, 2012 Edition - Table 1 report: Gadir Deposit (Anglo Asian Mining plc)

Mineral Resource statement date: Database as 20 August 2018

The following table provides a summary of assessment and reporting criteria used at the Gadir deposit for the reporting of exploration results, Mineral Resources and Ore Reserves in accordance with the JORC Table 1 checklist in The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2012 Edition).

Section 1 Sampling Techniques and Data

(Criteria in this section applies to all succeeding sections.)

 
 Criteria       JORC Code explanation                                         Commentary 
 Sampling 
 techniques      *    Nature and quality of sampling (eg cut channels,          *    The majority of the geological information for Gadir 
                      random chips, or specific specialised industry                 was obtained from diamond core drilling (DD). Both 
                      standard measurement tools appropriate to the                  surface (60 drillholes) and underground (342 
                      minerals under investigation, such as down hole gamma          drillholes) drilling has been completed, for a 
                      sondes, or handheld XRF instruments, etc). These               drilling total of 37,970 m. 
                      examples should not be taken as limiting the broad 
                      meaning of sampling. 
                                                                                *    In addition, 8,786 channel samples (CH) have been 
                                                                                     analysed, with a total length of 8,645 m. Channel 
                 *    Include reference to measures taken to ensure sample           sample length is typically 1 m, with a width of 10 cm 
                      representivity and the appropriate calibration of any          and a depth of 5 cm. Samples are obtained with use of 
                      measurement tools or systems used.                             a grinding machine. 
 
 
                 *    Aspects of the determination of mineralisation that       *    Chip sampling is undertaken for grade control 
                      are Material to the Public Report.                             purposes but is not captured in the drillhole 
                                                                                     database nor databases planned for resource 
                                                                                     estimation. 
                 *    In cases where 'industry standard' work has been done 
                      this would be relatively simple (eg 'reverse 
                      circulation drilling was used to obtain 1 m samples       *    Full core was split (HQ and NQ only) longitudinally 
                      from which 3 kg was pulverised to produce a 30 g               50% using a rock diamond saw and half-core samples 
                      charge for fire assay'). In other cases more                   were taken at typically 1 metre intervals or to rock 
                      explanation may be required, such as where there is            contacts if present in the core run for both 
                      coarse gold that has inherent sampling problems.               mineralisation and wall rock. The drill core was 
                      Unusual commodities or mineralisation types (eg                rotated prior to cutting to maximise structure to 
                      submarine nodules) may warrant disclosure of detailed          core axis of the cut core. BQ material is whole-core 
                      information.                                                   sampled. 
 
 
                                                                                *    To ensure representative sampling, diamond drill core 
                                                                                     was marked considering mineralisation and alteration 
                                                                                     intensity, after ensuring correct core run marking 
                                                                                     with regards to recovery. 
 
 
                                                                                *    Sampling of DD and CH material was systematic and 
                                                                                     unbiased. 
 
 
                                                                                *    Diamond drill sample target weight is 2-3.5 kg prior 
                                                                                     to laboratory processing. Fire Assay (FA) analysis is 
                                                                                     carried out at the onsite laboratory by Atomic 
                                                                                     Absorption Spectroscopy (AAS) - 25 g charges are used 
                                                                                     for Au analysis whilst 10 g charges are used for Ag, 
                                                                                     Cu and Zn analysis for underground core. Exploration 
                                                                                     (i.e. surface) DD core used 50 g charges. 
 
 
                                                                                *    Channel samples typically weigh between 10-20 kg 
                                                                                     prior to laboratory processing. Charges for Au 
                                                                                     assaying weigh 25 g whilst 10 g charges are used for 
                                                                                     Ag, Cu and Zn analysis. 
 
 
                                                                                *    Handheld XRF (model THERMO Niton XL3t) was used to 
                                                                                     assist with mineral identification during field 
                                                                                     mapping and core logging procedures. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Drilling 
 techniques       *    Drill type (eg core, reverse circulation, open-hole      *    DD accounts for 80% of the material drilling used 
                       hammer, rotary air blast, auger, Bangka, sonic, etc)          within the Gadir resource and comprises of HQ, NQ and 
                       and details (eg core diameter, triple or standard             BQ core. During the exploration and development 
                       tube, depth of diamond tails, face-sampling bit or            phases, DD was completed from both surface and 
                       other type, whether core is oriented and if so, by            underground. Infill DD was then completed from 
                       what method, etc).                                            underground locations. 
 
 
                                                                                *    The majority of the core drilled from the surface was 
                                                                                     either HQ (63.5 mm) or NQ (47.6 mm) in diameter. 
                                                                                     Underground drilling was completed using NQ or BQ 
                                                                                     (36.5 mm diameter) standard tubes. 
 
 
                                                                                *    Drillcore was not orientated due to technological 
                                                                                     limitations in-country. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Drill sample 
  recovery       *    Method of recording and assessing core and chip           *    Core recovery was recorded at site, verified at the 
                      sample recoveries and results assessed.                        core yard and subsequently entered into the database. 
                                                                                     Recovery for mineralised sections was generally very 
                                                                                     good (in excess of 95%) and over the length of the 
                 *    Measures taken to maximise sample recovery and ensure          hole was typically > 90%. Recovery measurements were 
                      representative nature of the samples.                          poorer in fractured and faulted rocks, weathered 
                                                                                     zones or dyke contacts - in these zones average 
                                                                                     recovery was 85%. 
                 *    Whether a relationship exists between sample recovery 
                      and grade and whether sample bias may have occurred 
                      due to preferential loss/gain of fine/coarse              *    From visual inspection of the data, the consultant 
                      material.                                                      deemed the core recovery to be good and not have 
                                                                                     introduced bias into the subsequent sampling. 
 
 
                                                                                *    Work to date has not identified a relationship 
                                                                                     between grade and sample or core recovery. However, 
                                                                                     in core drilling, losses of fines is believed to 
                                                                                     result in lower gold grades due to washout in 
                                                                                     fracture zones. This is likely to result in an 
                                                                                     underestimation of grade, which will be checked 
                                                                                     during production. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Logging 
                  *    Whether core and chip samples have been geologically     *    All historic and current drill core was logged in 
                       and geotechnically logged to a level of detail to             detail for lithology, alteration, mineralisation, 
                       support appropriate Mineral Resource estimation,              geological structure and oxidation state by AIMC 
                       mining studies and metallurgical studies.                     geologists, utilising logging codes and data sheets 
                                                                                     as supervised by the Competent Person ("CP"). Data 
                                                                                     was captured on paper and manually entered into the 
                  *    Whether logging is qualitative or quantitative in             database. 
                       nature. Core (or costean, channel, etc) photography. 
 
                                                                                *    Logging was considered sufficient to support Mineral 
                  *    The total length and percentage of the relevant               Resource estimation, mining studies and metallurgical 
                       intersections logged.                                         studies. 
 
 
                                                                                *    Rock Quality Designation (RQD) data was recorded for 
                                                                                     all core drilling for geotechnical purposes. Fracture 
                                                                                     intensity, style, fracture-fill and fragmentation 
                                                                                     proportion data was also collected for geotechnical 
                                                                                     analysis. 
 
 
                                                                                *    An independent geotechnical assessment was completed 
                                                                                     by the environmental engineering company CQA 
                                                                                     International Limited to support operations and to 
                                                                                     provide supplementary information for this resource 
                                                                                     evaluation. 
 
 
                                                                                *    DD and CH logging was both quantitative and 
                                                                                     qualitative in nature. 
 
 
                                                                                *    All core was photographed in the core boxes to show 
                                                                                     the core box number, core run markers and a scale. 
                                                                                     All channel samples/faces were sketched prior to 
                                                                                     cutting. 
 
 
                                                                                *    The entire length of each drillhole (DD & CH) was 
                                                                                     logged in full, so 100% of the relevant intersections 
                                                                                     were logged. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Sub-sampling 
  techniques      *    If core, whether cut or sawn and whether quarter,             *    HQ and NQ full core was split longitudinally in half 
  and sample           half or all core taken.                                            by using a diamond-blade core saw. The core saw is a 
  preparation                                                                             'CM501' manufactured by Norton Clipper and the blades 
                                                                                          from the 'GSW' series manufactured by Lissmac. 
                  *    If non-core, whether riffled, tube sampled, rotary 
                       split, etc and whether sampled wet or dry. 
                                                                                     *    Full core of BQ size was sampled and as such, only 
                                                                                          coarse reject and pulp rejects were retained. 
                  *    For all sample types, the nature, quality and 
                       appropriateness of the sample preparation technique. 
                                                                                     *    Samples of one half of the HQ/NQ core were taken, 
                                                                                          typically at 1 metre intervals, whilst the other half 
                  *    Quality control procedures adopted for all                         was retained as reference core in the tray prior to 
                       sub-sampling stages to maximise representivity of                  storage. If geological features or contacts warranted 
                       samples.                                                           adjustment of the interval, then the intersection 
                                                                                          sampled was reduced to confine these features. The 
                                                                                          drill core was rotated prior to cutting to maximise 
                  *    Measures taken to ensure that the sampling is                      structure to axis of the cut core - cut lines were 
                       representative of the in situ material collected,                  drawn on during metre-marking. 
                       including for instance results for field 
                       duplicate/second-half sampling. 
                                                                                     *    All underground faces are marked-up by the 
                                                                                          supervising underground geologist, constrained within 
                  *    Whether sample sizes are appropriate to the grain                  geological and mineralised boundaries. Subsequent CH 
                       size of the material being sampled.                                sample acquisition was carried out with a rock hammer 
                                                                                          (either hand-held or Bosch power tool) and grinding 
                                                                                          machines. Samples are collected in calico bags as per 
                                                                                          AIMC's face sampling procedure. Typical sample masses 
                                                                                          range between 10-20 kg. 
 
 
                                                                                     *    The procedure involves cutting a linear channel 
                                                                                          across the vein or orebody in order to obtain the 
                                                                                          most representative sample possible for the 
                                                                                          designated interval. CH samples are collected from 
                                                                                          the floors of the underground workings. When chip 
                                                                                          channel sampling is conducted along a rock face, of 
                                                                                          plastic sheeting is laid out for the material to fall 
                                                                                          on so as to avoid contamination. Sample intervals are 
                                                                                          1-1.5 m, 10 cm in width and 5 cm deep. A face sheet 
                                                                                          with sketch, sample width, sample number(s) and 
                                                                                          locality are generated for each sampled face. 
 
 
                                                                                     *    Samples are bagged with pre-numbered sample tickets 
                                                                                          and submitted with a sample submission form to the 
                                                                                          onsite laboratory. Underground CH samples have been 
                                                                                          used in the Mineral Resource estimate. Chip samples 
                                                                                          have not been used in the Mineral Resource estimate 
                                                                                          and are primarily used to provide guidance for 
                                                                                          mine-mill reconciliations 
 
 
                                                                                     *    No sub-sampling of CH material needs to be carried 
                                                                                          out as the samples are deemed 'laboratory-ready' at 
                                                                                          the channel face. Samples were sent to the on-site 
                                                                                          laboratory for preparation and pulverised ready for 
                                                                                          routine AAS and check FA. 
 
 
                                                                                     *    Both DD and CH samples were prepared according best 
                                                                                          practice, with initial geological control of the half 
                                                                                          core or CH samples, followed by crushing and grinding 
                                                                                          at the laboratory sample preparation facility that is 
                                                                                          routinely managed for contamination and cleanliness 
                                                                                          control. 
 
 
                                                                                     *    Sampling practice is considered as appropriate for 
                                                                                          Mineral Resource Estimation. 
 
 
                                                                                     *    Sample preparation at the laboratory is subject to 
                                                                                          the following procedure. 
 
 
                                                                                    o After receiving samples at the laboratory from the 
                                                                                    geology department, all samples are cross referenced 
                                                                                    with the sample order list. Any errors/omissions are 
                                                                                    to be followed-up and rectified. 
                                                                                    o All samples are dried in an oven at 105-110degC to 
                                                                                    drive off moisture and volatiles. Samples then head 
                                                                                    to crushing. 
                                                                                    o Crushing - first stage - to -25mm size 
                                                                                    o Crushing - second stage - to -10mm size 
                                                                                    o Crushing - third stage - to -3mm size 
                                                                                    o After crushing the samples are split and 150-250 
                                                                                    g of material is taken for assay preparation (depending 
                                                                                    upon the drillhole type). The remainder is retained 
                                                                                    for reference. 
                                                                                    o The material to be assayed is first pulverised to 
                                                                                    -75 um prior to delivery to the assaying facility. 
                                                                                    o The performance of the laboratory is monitored daily 
                                                                                    and at the end of the month when grade control samples 
                                                                                    are reconciled with mill production. 
                                                                                    o Overall, the sampling practice was deemed by Datamine 
                                                                                    to be appropriate for Mineral Resource estimation purposes. 
                                                                                     *    Quality control procedures were used for all 
                                                                                          sub-sampling preparation. This included geological 
                                                                                          control over the core cutting, and sampling to ensure 
                                                                                          representativeness of the geological interval. 
 
 
                                                                                     *    Petrographic studies have identified the average Au 
                                                                                          particle size as being in the order of 5 um. Sample 
                                                                                          sizes are therefore deemed appropriate. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Quality of 
 assay data      *    The nature, quality and appropriateness of the                      *    Laboratory procedures, QA/QC assaying and analysis 
 and                  assaying and laboratory procedures used and whether                       methods employed are industry standard. They are 
 laboratory           the technique is considered partial or total.                            enforced and supervised by a dedicated laboratory 
 tests                                                                                       team. AAS and FA techniques were utilised and as such, 
                                                                                               both partial and total analytical techniques were 
                 *    For geophysical tools, spectrometers, handheld XRF                                           conducted. 
                      instruments, etc, the parameters used in determining 
                      the analysis including instrument make and model, 
                      reading times, calibrations factors applied and their               *    Handheld XRF (model THERMO Niton XL3t) was used to 
                      derivation, etc.                                                        assist with mineral identified during field mapping 
                                                                                                          and core logging procedures. 
 
                 *    Nature of quality control procedures adopted (eg 
                      standards, blanks, duplicates, external laboratory                  *    The onsite laboratory has QA/QC protocols in place 
                      checks) and whether acceptable levels of accuracy (ie                   and uses an external control laboratory. Calibration 
                      lack of bias) and precision have been established.                        of the analytical equipment in the laboratory is 
                                                                                                     considered to represent best practice. 
 
 
                                                                                             *    Comparing the grade control results and mill 
                                                                                              performance is a qualitative index of performance - 
                                                                                                there was good overall quarterly reconciliation 
                                                                                              between grade control results and the mill for Gadir 
                                                                                                                   material. 
 
 
                                                                                          *    All data related to these drillings are located in 
                                                                                              the relevant drillhole database. Material drillholes 
                                                                                              include only those completed by DD or CH methods as 
                                                                                              these impacted on the interpretation of the overall 
                                                                                                geometry of the resource. Chip samples were not 
                                                                                              considered material as these were predominantly used 
                                                                                             for mine-mill reconciliation purposes. The quality of 
                                                                                              the QA/QC carried out for Gadir was considered to be 
                                                                                                appropriate for resource and reserve estimation 
                                                                                                             purposes by Datamine. 
 
 
                                                                                        *    QA/QC procedures included the use of field duplicates 
                                                                                                 of RC samples, blanks, certified standards or 
                                                                                                certified reference material ("CRMs") from OREAS 
                                                                                             ("Ore Research & Exploration Pty Ltd Assay Standards", 
                                                                                               Australia), in addition to the laboratory control 
                                                                                               that comprised pulp duplicates, coarse duplicates, 
                                                                                              and replicate samples. This QA/QC system allowed for 
                                                                                              the monitoring of precision and accuracy of assaying 
                                                                                                             for the Gadir deposit. 
 
 
                                                                                            *    A total of 101 pulp duplicates were assayed at 
                                                                                               varying grade ranges. Fifteen pulp duplicates were 
                                                                                                 assayed for CH samples and 86 for DD samples. 
 
 
                                                                                          *    Au grade ranges as assigned to the Gadir deposit: 
 
                                                                                               Ore Grade Designation    Au (from)   Au (to) 
                                                                                                                            g/t        g/t 
                                                                                                                       ----------  -------- 
                                                                                                    Very Low (VL)          0.00       0.30 
                                                                                                                       ----------  -------- 
                                                                                                         Low               0.30       1.00 
                                                                                                                       ----------  -------- 
                                                                                                     Medium (MED)          1.00       2.00 
                                                                                                                       ----------  -------- 
                                                                                                         High              2.00       5.00 
                                                                                                                       ----------  -------- 
                                                                                                      Very High (V          5.00         + 
                                                                                                                       HIGH) 
                                                                                                                       ----------  -------- 
 
 
                                                                                             *    Summary results from the pulp duplicates are 
                                                                                              presented in the accompanying Gadir Resource Report 
 
 
                                                                                            *    The following CRMs were used for QA/QC control 
                                                                                                     purposes as part of this resource run: 
 
                                                                                       Ore Grade                  CRM Description and target grade(s) 
                                                                                                                Designation 
                                                                                                       Name            Au          Ag         Cu        Zn 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                        g/t        g/t         %         % 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                         CRM 22_OREAS 
                                                                                    Very Low            501           0.21        0.44       0.28      0.01 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 30_OREAS 
                                                                                                 600                  0.19       24.31       0.05      0.06 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                         CRM 32_OREAS 
                                                                                      Low               905           0.40        0.52       0.16      0.01 
                                                                               --------------  -----------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 23_OREAS 
                                                                                                502c                  0.48        0.80       0.78      0.01 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 17_OREAS 
                                                                                                502b                  0.49        2.01       0.76      0.01 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 20_OREAS 
                                                                                                 620                  0.67       38.40       0.18      3.12 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                      CRM 2_OREAS 
                                                                                                503b                  0.69        1.46       0.52      0.01 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 31_OREAS 
                                                                                                 601                  0.77       49.41       0.10      0.13 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 16_OREAS 
                                                                                                 623                  0.80       20.40       1.72      1.01 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 12_OREAS 
                                                                                                  59d                  0.80         -         1.47       - 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                         CRM 15_OREAS 
                                                                                     Medium             701           1.07        1.11       0.48      0.03 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 27_OREAS 
                                                                                                  253                  1.22        0.25       0.01       - 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 19_OREAS 
                                                                                                 621                  1.23       68.00       0.37      5.17 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 13_OREAS 
                                                                                                 604                  1.43       492.00      2.16      0.25 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                      CRM 7_OREAS 
                                                                                                504b                  1.56        2.98       1.10      0.01 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                     CRM 3_OREAS       1.81         -          -         - 
                                                                                                                                16a 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 11_OREAS 
                                                                                                 602                  1.95       114.88      0.52      0.41 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                         CRM 24_OREAS 
                                                                                      High              60d           2.43        4.45       0.01      0.00 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                      CRM 4_OREAS 
                                                                                                 60c                  2.45        4.81       0.01      0.01 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 28_OREAS 
                                                                                                  254                  2.50        0.40       0.01       - 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                     CRM 9_OREAS       2.92         -          -         - 
                                                                                                                                214 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                    CRM 10_OREAS       3.04         -          -         - 
                                                                                                                                17c 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                      CRM 6_OREAS 
                                                                                                 61e                  4.51        5.37       0.01      0.00 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 25_OREAS 
                                                                                                  61f                  4.53        3.61       0.00       - 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                         CRM 14_OREAS 
                                                                                   Very High            603           5.08       292.92      1.01      0.91 
                                                                                               -----------------  ---------  ----------  --------  -------- 
                                                                                                                      CRM 5_OREAS 
                                                                                                  62c                  9.37        9.86        -         - 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
                                                                                                                     CRM 29_OREAS 
                                                                                                  257                  13.96       2.17       0.01       - 
                                                                                --------------------------------  ---------  ----------  --------  -------- 
 
 
                                                                                          *    Comparison of average Au grades between the onsite 
                                                                                              laboratory and the OREAS CRMs (see Report) showed a 
                                                                                                   general bias towards the onsite laboratory 
                                                                                               underestimating the grade, notably for 'Very High' 
                                                                                             material; however, overall the bias fell just outside 
                                                                                                        of 0.1 g/t and so is reasonable. 
 
 
                                                                                         *    The same exercise was also conducted for Ag, Cu and 
                                                                                               Zn CRM assays and the results can be viewed in the 
                                                                                                                Resource Report. 
 
 
                                                                                         *    Production reconciliations between mined grades and 
                                                                                                 assays correlate well and have been used as an 
                                                                                                 additional resource to validate metal content. 
 
 
                                                                                         *    The quality of the QA/QC was considered adequate for 
                                                                                                         resource estimation purposes. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Verification 
 of sampling     *    The verification of significant intersections by          *    Significant intersections were verified internally by 
 and assaying         either independent or alternative company personnel.           a number of company personnel within the management 
                                                                                     structure of the Exploration and Underground Mining 
                                                                                     Departments of AIMC. Intersections were defined by 
                 *    The use of twinned holes.                                      the geologists and subsequently reviewed and verified 
                                                                                     by the Exploration Manager. Further independent 
                                                                                     verification was carried out as part of the due 
                 *    Documentation of primary data, data entry procedures,          diligence for resource estimation by Datamine 
                      data verification, data storage (physical and                  personnel. Assay intersections were cross-validated 
                      electronic) protocols.                                         with visual drillcore intersections (i.e. 
                                                                                     photographs). 
 
                 *    Discuss any adjustment to assay data. 
                                                                                *    No twinning of drillholes was carried out at Gadir 
                                                                                     however extensive underground development has 
                                                                                     confirmed the overall grade and geological 
                                                                                     interpretation based on the drillholes. 
 
 
                                                                                *    Data entry is supervised by a data manager. 
                                                                                     Verification and checking procedures are in place. 
                                                                                     The format of the data is appropriate for direct 
                                                                                     import into Datamine(R) software. All data is stored 
                                                                                     in electronic databases within the geology department 
                                                                                     and backed up to the secure company electronic server 
                                                                                     that has restricted access. 
 
 
                                                                                *    Four main files are created per hole, relating to its 
                                                                                     'collar' details, 'survey' data, 'assay' results and 
                                                                                     logged 'geology'. Laboratory data is loaded 
                                                                                     electronically by the laboratory department and 
                                                                                     validated by the geology department. Any outliers or 
                                                                                     anomalous assays are resubmitted. 
 
 
                                                                                *    Prior to commencement of mining at Gadir, all samples 
                                                                                     from the surface exploration campaign that 
                                                                                     intersected mineralisation was sent for external 
                                                                                     assay at ALS-OMAC in Ireland. This laboratory is 
                                                                                     currently the preferred company to carry out external 
                                                                                     assaying for AIMC. 
 
 
                                                                                *    Independent validation of the database was carried 
                                                                                     out as part of the resource model generation process 
                                                                                     where all data was checked for errors, missing data, 
                                                                                     misspelling, interval validation and management of 
                                                                                     zero versus 'no data' entries. 
 
 
                                                                                *    All databases were considered accurate for the 
                                                                                     Mineral Resource Estimate. 
 
 
                                                                                *    No adjustments were made to the assay data. The 
                                                                                     quality of the QA/QC is considered adequate for 
                                                                                     resource estimation purposes. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Location of 
  data points    *    Accuracy and quality of surveys used to locate drill      *    The surface mine area was recently (2017) surveyed by 
                      holes (collar and down-hole surveys), trenches, mine           a high-resolution drone survey. Five topographic base 
                      workings and other locations used in Mineral Resource          stations were installed and accurately surveyed using 
                      estimation.                                                    high precision GPS that was subsequently tied into 
                                                                                     the local mine grid using ground-based total station 
                                                                                     surveying (utilising the LEICA TS02) equipment. All 
                 *    Specification of the grid system used.                         drillhole collars were then surveyed using the Leica 
                                                                                     apparatus. 
 
                 *    Quality and adequacy of topographic control. 
                                                                                *    In 2018, new survey equipment was purchased to be 
                                                                                     used for precision surveying of drill holes, trenches 
                                                                                     and workings. This apparatus comprises two Trimble 
                                                                                     R10s, Model 60 and accessories. 
 
 
                                                                                *    Equipment used for underground surveying comprises a 
                                                                                     Leica TCR407 7" Total Station and a GeoSLAM 
                                                                                     GS-610090. 
 
 
                                                                                *    Downhole surveying was carried out on HQ and NQ 
                                                                                     drillholes utilising a Reflex EZ-TRAC magnetic and 
                                                                                     gravimetric multi-shot instrument, at a downhole 
                                                                                     interval of 9 m (after an initial collar shot at 3 
                                                                                     m). Downhole surveying was not carried out on BQ 
                                                                                     holes. 
 
 
                                                                                *    The grid system used for the site is Universal 
                                                                                     Transverse Mercator 84 WGS Zone 38T (Azerbaijan) 
 
 
                                                                                *    The level of topographic and survey control was 
                                                                                     deemed adequate for the purposes of resource 
                                                                                     modelling by Datamine. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Data spacing 
 and             *    Data spacing for reporting of Exploration Results.        *    On surface and underground, collar spacing averaged 
 distribution                                                                        20 m over the main mineralised zone and 50 m on the 
                                                                                     periphery of the resource. Fan-drilling was also 
                 *    Whether the data spacing and distribution is                   carried out around some underground collar sites to 
                      sufficient to establish the degree of geological and           test mineralisation at depth. 
                      grade continuity appropriate for the Mineral Resource 
                      and Ore Reserve estimation procedure(s) and 
                      classifications applied.                                  *    The data spacing and distribution (20 x 20 metre 
                                                                                     grid) over the mineralised zones was deemed to be 
                                                                                     sufficient to establish the degree of geological and 
                 *    Whether sample compositing has been applied.                   grade continuity appropriate for the Mineral Resource 
                                                                                     and Ore Reserve estimation procedures and 
                                                                                     classifications applied. The depth and spacing was 
                                                                                     considered appropriate for defining geological and 
                                                                                     grade continuity as required for a JORC Mineral 
                                                                                     Resource estimate. 
 
 
                                                                                *    Extensive underground development has tested and 
                                                                                     confirmed the existing drillhole data and spacing was 
                                                                                     sufficient to establish grade and geological 
                                                                                     continuity. The available drill data spacing 
                                                                                     represents industry best-practice. 
 
 
                                                                                *    Compositing to 1 metre intervals was applied. 
                                                                                     Residual intervals ( 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Orientation 
  of data in     *    Whether the orientation of sampling achieves unbiased     *    Detailed surface mapping, subsequent drilling and 
  relation to         sampling of possible structures and the extent to              underground development enabled the deposit 
  geological          which this is known, considering the deposit type.             characteristics to be understood. 
  structure 
 
                 *    If the relationship between the drilling orientation      *    CH samples were obtained where mineralisation was 
                      and the orientation of key mineralised structures is           intersected. Orientation of the channels was 
                      considered to have introduced a sampling bias, this            dependent upon the orientation of the drive and face 
                      should be assessed and reported if material.                   being sampled. 
 
 
                                                                                *    Overall, orientation of drilling and sampling was as 
                                                                                     perpendicular to mineralisation as was practicable. 
 
 
                                                                                *    Given the geological understanding and the 
                                                                                     application of the drilling grid orientation, grid 
                                                                                     spacing and vertical drilling, no orientation-based 
                                                                                     sample bias was identified in the data that resulted 
                                                                                     in unbiased sampling of structures considering the 
                                                                                     deposit type. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Sample 
 security         *    The measures taken to ensure sample security.            *    Regarding drill core: each drill site was supervised 
                                                                                     by an experienced geologist. The drill core was 
                                                                                     placed into wooden or plastic core boxes (sized 
                                                                                     specifically for the core diameter) at the drill 
                                                                                     site. Once a box was filled, a wooden/plastic lid was 
                                                                                     fixed to the box to ensure there was no spillage. 
                                                                                     Core box number, drillhole I.D. and from/to metres 
                                                                                     were written on both the box and the lid. The core 
                                                                                     was then transported to the core storage area and 
                                                                                     logging facility, where it was received and logged 
                                                                                     into a data sheet. Core logging, cutting and sampling 
                                                                                     took place at the secure core management area. The 
                                                                                     core samples were bagged with labels both in and on 
                                                                                     the bag, and data recorded on a sample sheet. The 
                                                                                     samples were transferred to the laboratory, where 
                                                                                     they were registered as received, for laboratory 
                                                                                     sample preparation works and assaying. Hence, a chain 
                                                                                     of custody procedure was followed from core 
                                                                                     collection to assaying and storage of reference 
                                                                                     material. 
 
 
                                                                                *    All samples received at the core facility were logged 
                                                                                     in and registered with the completion of an "act". 
                                                                                     The act was signed by the drilling team supervisor 
                                                                                     and core facility supervisor (responsible person). 
                                                                                     All core is photographed, subjected to geotechnical 
                                                                                     logging, geological logging, samples interval 
                                                                                     determinations, bulk density, core cutting, and 
                                                                                     sample preparation (each size of fragments 3-5 cm). 
 
 
                                                                                *    CH and DD samples were weighed, and a Laboratory 
                                                                                     Order prepared after cutting was complete (CH samples 
                                                                                     were prepared underground at the face). This was 
                                                                                     signed by the core facility supervisor prior to 
                                                                                     release to the laboratory. On receipt at the 
                                                                                     laboratory, the responsible person countersigned the 
                                                                                     order acknowledging full delivery of the samples. 
 
 
                                                                                *    After assaying all reject duplicate samples were 
                                                                                     received from laboratory to core facility (again 
                                                                                     recorded on the act). All reject samples were placed 
                                                                                     into boxes referencing the sample identities and 
                                                                                     stored in the core facility. 
 
 
                                                                                *    In the event of external assaying, AIMC utilised 
                                                                                     ALS-OMAC in Ireland. Samples selected for external 
                                                                                     assay were recorded on a data sheet and sealed in 
                                                                                     appropriate boxes for shipping by air freight. 
                                                                                     Communication between the geological department of 
                                                                                     AIMC and ALS occurs to monitor the shipment from 
                                                                                     despatch, through customs clearance, and upon receipt 
                                                                                     of samples. Results were sent electronically by ALS 
                                                                                     and loaded to the Company database for study. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 Audits or 
  reviews         *    The results of any audits or reviews of sampling         *    Reviews on sampling and assaying techniques were 
                       techniques and data.                                          conducted for all data internally and externally (by 
                                                                                     Datamine) as part of the resource and reserve 
                                                                                     estimation validation procedure. No concerns were 
                                                                                     raised as to the procedures or the data results. All 
                                                                                     procedures were considered industry standard and well 
                                                                                     conducted. Datamine identified no material issues 
                                                                                     that would prevent Gadir from reporting Measured, 
                                                                                     Indicated and Inferred Mineral Resources. 
               ------------------------------------------------------------  ------------------------------------------------------------------------------ 
 

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

 
 Criteria         JORC Code explanation                                            Commentary 
 Mineral 
 tenement           *    Type, reference name/number, location and ownership         *    The Gedabek open pit project is located within a 
 and land                including agreements or material issues with third               licence area ("Contract Area") that is governed under 
 tenure                  parties such as joint ventures, partnerships,                    a Production Sharing Agreement ("PSA"), as managed by 
 status                  overriding royalties, native title interests,                    the Azerbaijan Ministry of Ecology and Natural 
                         historical sites, wilderness or national park and                Resources ("MENR"). 
                         environmental settings. 
 
                                                                                     *    The PSA grants the Company a number of 'time periods' 
                    *    The security of the tenure held at the time of                   to exploit defined Contract Areas, as agreed upon 
                         reporting along with any known impediments to                    during the initial signing. The period of time 
                         obtaining a licence to operate in the area.                      allowed for early-stage exploration of the Contract 
                                                                                          Areas to assess prospectivity can be extended if 
                                                                                          required. 
 
 
                                                                                     *    A 'development and production period' commences on 
                                                                                          the date that the Company issues a notice of 
                                                                                          discovery, which runs for 15 years with two 
                                                                                          extensions of five years each at the option of the 
                                                                                          Company. Full management control of mining in the 
                                                                                          Contract Areas rests with AIMC. 
 
 
                                                                                     *    The Gedabek Contract Area, incorporating the Gadir 
                                                                                          underground mine, currently operates under this 
                                                                                          title. 
 
 
                                                                                     *    Under the PSA, AAM is not subject to currency 
                                                                                          exchange restrictions and all imports and exports are 
                                                                                          free of tax or other restriction. In addition, MENR 
                                                                                          is to use its best endeavours to make available all 
                                                                                          necessary land, its own facilities and equipment and 
                                                                                          to assist with infrastructure. 
 
 
                                                                                     *    The deposit is not located in any national park. 
 
 
                                                                                     *    At the time of reporting no known impediments to 
                                                                                          obtaining a licence to operate in the area exist and 
                                                                                          the Contract Area agreement is in good standing. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Exploration 
  done by other     *    Acknowledgment and appraisal of exploration by other               *    The Gadir deposit was discovered in 2012 by AIMC 
  parties                parties.                                                                geologists. As such, previous exploration has not 
                                                                                                 been carried out by other parties specific to this 
                                                                                                 deposit. 
 
 
                                                                                            *    During 2012, exploration carried out by AIMC 
                                                                                                 uncovered an outcrop of rhyolite displaying intense 
                                                                                                 silica and potassic alteration on the northwestern 
                                                                                                 flank of the Gedabek operation (about 400 m from the 
                                                                                                 Gedabek open pit). Samples were assayed and returned 
                                                                                                 grade and so they were followed-up with an 
                                                                                                 exploration drillhole. 
 
 
                                                                                            *    A downhole intersection grading 24m at 2.9 g/t Au was 
                                                                                                 returned for this hole, justifying further 
                                                                                                 exploration and project development. 
 
 
                                                                                            *    The following work was further completed to define 
                                                                                                 Gadir: 
 
 
                                                                                           o Detailed geological and structural mapping (1:5,000 
                                                                                           and 1:1,000 scale; 2012-2015) 
                                                                                           o Rock chip sampling (650 samples) 
                                                                                           o Trenching (5 trenches totalling 200 m length and 
                                                                                           160 samples) 
                                                                                           o Soil geochemistry study (1,473 samples; 2014) 
                                                                                           o Various HQ & NQ surface drill campaigns (2013 - present 
                                                                                           day) 
                                                                                           o Underground NQ & BQ drill campaigns (2015 - present 
                                                                                           day) 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Geology 
                    *    Deposit type, geological setting and style of               *    The Gadir Au-Ag-Cu-Zn deposit is located in the 
                         mineralisation.                                                  Gedabek Ore District of the Lesser Caucasus in NW 
                                                                                          Azerbaijan, adjacent to the city of Gedabay and 48 km 
                                                                                          west of the city of Ganja. Gadir is characterised as 
                                                                                          a low-sulphidation (LS) epithermal system. 
 
 
                                                                                     *    The portal to Gadir was independently located on 
                                                                                          Google Earth at latitude 40deg58'59.21"N and 
                                                                                          longitude 45deg79'03.54"E and tunnelled into the 
                                                                                          flanks of Yogundag Mountain. 
 
 
                                                                                     *    The Gadir ore deposit is located within the large 
                                                                                          Gedabek-Garadag volcanic-plutonic system. This system 
                                                                                          is characterised by a complex internal structure 
                                                                                          indicative of repeated tectonic movement and 
                                                                                          multi-cyclic activity. Yogundag Mountain is a 
                                                                                          porphyry-epithermal zone, with known deposits in the 
                                                                                          area (e.g. Gadir, Gedabek, Umid and Zefer) believed 
                                                                                          to represent the upper portion of the mineralising 
                                                                                          system. 
 
 
                                                                                     *    The Gadir orebody has a complicated geological 
                                                                                          structure and hosts intrusive rocks of different ages 
                                                                                          and compositions. Three sets of regional fault zones 
                                                                                          controlling mineralisation have been identified and 
                                                                                          are characterised on the basis of strike direction 
                                                                                          and morphological characteristics: 
 
 
                                                                                     *    NW-SE striking faults (e.g. Gedabek-Bittibulag Deep 
                                                                                          Fault, Misdag Fault) 
 
 
                                                                                     *    NE-trending faults (e.g. Gedabek-Ertepe Fault, 
                                                                                          Gerger-Arykhdam Fault, Gadir ore-controlling faults) 
 
 
                                                                                     *    Local transverse faults 
 
 
                                                                                     *    The drilling identified a series of vertically 
                                                                                          stacked, shallow-dipping mineralised lenses within an 
                                                                                          area of approximately 50 x 100 metres over about 150 
                                                                                          m height. 
 
 
                                                                                     *    Various forms of hydrothermal alteration are found to 
                                                                                          occur at Gadir. Propylitic alteration (+ 
                                                                                          chlorite/epidote) is observed in the andesitic tuff 
                                                                                          formation. Argillic alteration (+ clay minerals) is 
                                                                                          found in the wall rocks and silicification is common 
                                                                                          in the volcanic units as well as the central part of 
                                                                                          the deposit. 
 
 
                                                                                     *    Mineralisation primarily exploited at Gadir is Au-Ag 
                                                                                          from a polymetallic ore, also containing base metals 
                                                                                          of Cu and Zn. The main ore minerals are sulphides, 
                                                                                          including pyrite, chalcopyrite, sphalerite and trace 
                                                                                          galena. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Drill hole 
  Information          *    A summary of all information material to the             *    A summary of the type and metres of drilling 
                            understanding of the exploration results including a          completed is shown below. Material drill hole 
                            tabulation of the following information for all               information provided in Appendix B in the Resource 
                            Material drill holes:                                         Report. 
 
                                                                                         Purpose       Drillhole    Number of   Total Length 
                      o easting and northing of the                                                       Type        Holes          (m) 
                      drill hole collar                                                  Surface           DD          60          22,458 
                      o elevation or RL (Reduced                                                      -----------  ----------  ------------- 
                      Level - elevation above sea                                      Underground         DD          342         15,512 
                      level in metres) of the drill                                                   -----------  ----------  ------------- 
                      hole collar                                                                 CH                    -          8,645 
                      o dip and azimuth of the hole                                  ----------------------------  ----------  ------------- 
                      o down hole length and interception                                   TOTAL DRILLING             402         46,615 
                      depth                                                                                        ----------  ------------- 
                      o hole length. 
                       *    If the exclusion of this information is justified on     *    Chip samples are primarily used to provide guidance 
                            the basis that the information is not Material and            for mine-mill reconciliation purposes and have not 
                            this exclusion does not detract from the                      been included as part of this Mineral Resource 
                            understanding of the report, the Competent Person             estimation. 
                            should clearly explain why this is the case. 
 
                                                                                     *    The database contains information related to 
                                                                                          geological work up until 20(th) August 2018. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Data 
 aggregation        *    In reporting Exploration Results, weighting averaging       *    Drilling results were reported using intersection 
 methods                 techniques, maximum and/or minimum grade truncations             intervals based on an Au grade > 0.3 g/t and internal 
                         (eg cutting of high grades) and cut-off grades are               waste >= 1 m thickness. Grades of both Au and Ag 
                         usually Material and should be stated.                           within the intersections were stated and the results 
                                                                                          presented to 2 decimal places. 
 
                    *    Where aggregate intercepts incorporate short lengths 
                         of high grade results and longer lengths of low grade       *    No data aggregation methods have been applied to the 
                         results, the procedure used for such aggregation                 drillhole data for reporting of exploration results. 
                         should be stated and some typical examples of such 
                         aggregations should be shown in detail. 
                                                                                     *    No metal equivalent values have been reported. 
 
                    *    The assumptions used for any reporting of metal 
                         equivalent values should be clearly stated. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Relationship 
 between            *    These relationships are particularly important in the       *    Overall orientation of drilling and sampling is as 
 mineralisation          reporting of Exploration Results.                                perpendicular to the orebody as is practicable. The 
 widths and                                                                               geometry of the Gadir orebody has been deemed to be 
 intercept                                                                                suitably tested and confirmed with surface and 
 lengths            *    If the geometry of the mineralisation with respect to            underground drilling, as well as underground 
                         the drill hole angle is known, its nature should be              development. 
                         reported. 
 
                                                                                     *    A good correlation exists between the mineralisation 
                    *    If it is not known and only the down hole lengths are            widths, intercept lengths and orebody modelling and 
                         reported, there should be a clear statement to this              this has been tested and proven through development 
                         effect (eg 'down hole length, true width not known').            intersections 
 
 
                                                                                     *    Given the geological understanding and the 
                                                                                          application of the drilling grid orientation and grid 
                                                                                          spacing, along with underground development, no 
                                                                                          orientation-based sample bias has been identified in 
                                                                                          the data that resulted in unbiased sampling of 
                                                                                          structures considering the deposit type. 
 
 
                                                                                     *    All intercepts are reported as down-hole lengths. 
 
 
                                                                                     *    Grade control drilling is balanced with exploratory 
                                                                                          and target-testing programmes. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Diagrams 
                    *    Appropriate maps and sections (with scales) and             *    Appropriate diagrams and sections have been included 
                         tabulations of intercepts should be included for any             in the Mineral Resources report. 
                         significant discovery being reported. These should 
                         include, but not be limited to a plan view of drill 
                         hole collar locations and appropriate sectional             *    Plans and sections are updated regularly onsite to 
                         views.                                                           reflect the latest information (e.g. underground 
                                                                                          development, geological interpretations). The AIMC 
                                                                                          Survey Department update working headings on a 
                                                                                          monthly basis in Surpac(R). 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Balanced 
 reporting          *    Where comprehensive reporting of all Exploration            *    Representative reporting of mineralisation styles and 
                         Results is not practicable, representative reporting             intervals has been previously reported by AAM via 
                         of both low and high grades and/or widths should be              regulated news service (RNS) announcements on the 
                         practiced to avoid misleading reporting of                       London Stock Exchange (AIM), on the Company website 
                         Exploration Results.                                             or at conferences and roadshows. 
 
 
                                                                                     *    The report has been deemed balanced and reflects the 
                                                                                          views of both Datamine and the CP. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Other 
 substantive        *    Other exploration data, if meaningful and material,         *    Additional information including photographs of the 
 exploration             should be reported including (but not limited to):               Gadir area can be viewed on the Anglo Asian Mining 
 data                    geological observations; geophysical survey results;             website: www.angloasianmining.com 
                         geochemical survey results; bulk samples - size and 
                         method of treatment; metallurgical test results; bulk 
                         density, groundwater, geotechnical and rock                 *    An independent geotechnical assessment was completed 
                         characteristics; potential deleterious or                        by CQA to support operations and to provide 
                         contaminating substances.                                        supplementary information for this resource 
                                                                                          evaluation. This assessment of Gadir involved 
                                                                                          carrying out a desk study, completion of fieldwork 
                                                                                          (e.g. assessing tunnel morphology and existing ground 
                                                                                          support, estimating water inflows) and then 
                                                                                          interpretation of the data. The results of this study 
                                                                                          and a copy of the report can be found in the Gadir 
                                                                                          Ore Reserves report. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 Further work 
                    *    The nature and scale of planned further work (eg                    *    Further exploration and grade control drilling is 
                         tests for lateral extensions or depth extensions or                      planned at the Gadir deposit. The targets for this 
                         large-scale step-out drilling).                                          drilling include: 
 
 
                    *    Diagrams clearly highlighting the areas of possible                o Down-dip extension of the mineralisation 
                         extensions, including the main geological                          o Additional drilling chasing mineralisation along-strike 
                         interpretations and future drilling areas, provided                o Exploration drilling between Gadir and Gedabek 
                         this information is not commercially sensitive.                     *    No diagrams to show future planned works are 
                                                                                                  presented in this report as the information is 
                                                                                                  commercially sensitive. 
                 ---------------------------------------------------------------  -------------------------------------------------------------------- 
 

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

 
 Criteria         JORC Code explanation                                           Commentary 
 Database 
 integrity          *    Measures taken to ensure that data has not been                   *    The Gadir database is stored in Access(R) software. 
                         corrupted by, for example, transcription or keying                     The data used for the Gadir resource was compiled 
                         errors, between its initial collection and its use                     from two different databases: 
                         for Mineral Resource estimation purposes. 
 
                                                                                          o the 'Exploration Database' - surface DD holes 
                    *    Data validation procedures used.                                 o the 'UG database' - underground CH samples and DD 
                                                                                          holes 
                                                                                           *    A dedicated database manager has been assigned to 
                                                                                                monitor all databases. Tasks include checking the 
                                                                                                data entered against the laboratory report and survey 
                                                                                                data. 
 
 
                                                                                           *    Geological data is entered by a geologist to ensure 
                                                                                                there is no confusion over terminology whilst 
                                                                                                laboratory assay data is entered by the data entry 
                                                                                                staff. 
 
 
                                                                                           *    A variety of manual and data checks are in place to 
                                                                                                check against human error of data entry. 
 
 
                                                                                           *    All original geological logs, survey data and 
                                                                                                laboratory results sheets are retained in a secure 
                                                                                                location in hard and soft copy format. 
 
 
                                                                                           *    It was noted by Datamine that the supplied Gadir 
                                                                                                database was not subjected to a full independent 
                                                                                                database audit prior to estimation as it was 
                                                                                                understood that the data were audited during upload. 
 
 
                                                                                           *    All data were imported to Datamine Studio RM(R) 
                                                                                                software and further validation processes completed. 
                                                                                                At this stage, any errors found were corrected. 
 
 
                                                                                           *    The validation procedures used include: 
 
 
                                                                                          o Drillhole depths for the geology, survey and assay 
                                                                                          logs do not exceed the recorded drilled depth 
                                                                                          o Dates are in the correct format and are correct 
                                                                                          o Set limits (e.g. for northing, easting, assay values) 
                                                                                          are not exceeded 
                                                                                          o Valid geology codes (e.g. lithology, alteration etc.) 
                                                                                          have been used 
                                                                                          o Sampling intervals are checked for gaps and overlaps 
                                                                                           *    After the data has been loaded into the database, the 
                                                                                                following checks are carried out: 
 
 
                                                                                          o Visual checks that collar locations are correct and 
                                                                                          compared with existing information (e.g. development 
                                                                                          wireframes) 
                                                                                          o Visual checks of drillhole traces for unusual traces 
                                                                                          and comparing the actual drillhole strings against 
                                                                                          the planned strings 
                                                                                           *    Hence there are several levels of control. This final 
                                                                                                point was also checked by Datamine prior to 
                                                                                                modelling. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Site visits 
                    *    Comment on any site visits undertaken by the               *    Datamine consultants developed and audited the Gadir 
                         Competent Person and the outcome of those visits.               Mineral Resource Block Model for the Gadir 
                                                                                         underground mine. Two Datamine engineers worked on 
                                                                                         the resources and reserves (one assigned to each 
                    *    If no site visits have been undertaken indicate why             project) and were able to verify work practice and 
                         this is the case.                                               procedures. 
 
 
                                                                                    *    Yerzhan Uzakbayev (Senior Resource Geologist; 
                                                                                         Datamine) visited Gadir for 9 days in August 2018 and 
                                                                                         worked on the Mineral Resources estimation. 
 
 
                                                                                    *    Aidar Kairbekov (Senior Mining Consultant; Datamine) 
                                                                                         visited Gadir for 5 days in October 2018 and worked 
                                                                                         on the Ore Reserves calculation. 
 
 
                                                                                    *    The CP is an employee of the company and as such has 
                                                                                         been actively in a position to be fully aware of all 
                                                                                         stages of the exploration and project development. 
                                                                                         The CP has worked very closely with the independent 
                                                                                         resource and reserve estimation staff of Datamine, 
                                                                                         both on site and remotely, to ensure knowledge 
                                                                                         transfer of the geological situation, to allow 
                                                                                         geological "credibility" to the modelling process. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Geological 
 interpretation     *    Confidence in (or conversely, the uncertainty of) the      *    There is confidence in the overall interpretation of 
                         geological interpretation of the mineral deposit.               the Gadir mineral deposit. There is some geology and 
                                                                                         grade distribution uncertainty on the local scale 
                                                                                         however this is mitigated by close-spaced fan 
                    *    Nature of the data used and of any assumptions made.            drilling at 15 m collar spacing as well as 
                                                                                         underground development information. 
 
                    *    The effect, if any, of alternative interpretations on 
                         Mineral Resource estimation.                               *    The geological interpretation is considered robust. 
                                                                                         Geological data collection has included surface 
                                                                                         mapping, outcrop sampling, core drilling (surface and 
                    *    The use of geology in guiding and controlling Mineral           underground) and geotechnical assessment. This has 
                         Resource estimation.                                            amassed a significant amount of information for the 
                                                                                         deposit. Various software has been used to model the 
                                                                                         deposit, including Leapfrog(R), Surpac(R) and 
                    *    The factors affecting continuity both of grade and              Datamine(R) packages. 
                         geology. 
 
                                                                                    *    The geological team have worked in the licence area 
                                                                                         for many years and the understanding and confidence 
                                                                                         of the geological interpretation is considered high. 
                                                                                         Vitaly Khorst (Senior Underground Geologist; AIMC) 
                                                                                         was involved with geological interpretation and 
                                                                                         modelling of Gadir with Yerzhan Uzakbayev (Senior 
                                                                                         Resource Geologist; Datamine). 
 
 
                                                                                    *    No alternative geological interpretation of the 
                                                                                         mineral deposit exists at this time and so the 
                                                                                         Mineral Resources estimate is unaffected. 
 
 
                                                                                    *    The geology has guided the resource estimation, 
                                                                                         especially the structural control where, for example, 
                                                                                         faulting has defined "hard" boundaries to 
                                                                                         mineralisation. This deposit-scale structural 
                                                                                         orientation was used to control the drilling grid and 
                                                                                         resource estimation search ellipse orientations. 
 
 
                                                                                    *    Grade and geological continuity have been established 
                                                                                         by the extensive 3D data collection. Gadir has 
                                                                                         dimensions of about 500 metres by 400 metres and the 
                                                                                         continuity is well understood, especially in relation 
                                                                                         to structural effects. 
 
 
                                                                                    *    A geological interpretation of the Gadir orebody was 
                                                                                         completed utilising geological sections typically at 
                                                                                         spacing of about 5-10 metres. These interpretations 
                                                                                         were used to form a wireframe solid in Datamine 
                                                                                         Studio RM(R) that was subsequently used as the main 
                                                                                         domain/mineralised zone for resource estimation. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Dimensions 
                    *    The extent and variability of the Mineral Resource         *    The footprint of the whole mineralisation zone is 
                         expressed as length (along strike or otherwise), plan           about 500 metres by 400 metres, with about 200 m 
                         width, and depth below surface to the upper and lower           overall thickness. 
                         limits of the Mineral Resource. 
 
                                                                                    *    The average surface elevation around Gadir is 1717.39 
                                                                                         m RL. The maximum local RL is 1799.24 m and the 
                                                                                         minimum local RL is 1654.24 m. 
 
 
                                                                                    *    The elevation of the centre of the block model 
                                                                                         (within mineralisation) is 1436.89 m RL. The upper 
                                                                                         elevation of the block model (within mineralisation) 
                                                                                         is 1537.25 m RL and the lowest elevation is 1316.50 m 
                                                                                         RL. All measurements taken from the centre of the 
                                                                                         block. 
 
 
                                                                                    *    The elevation of the centre of the block model 
                                                                                         (including waste) is 1446.72 m RL. The upper 
                                                                                         elevation of the block model (including waste) is 
                                                                                         1796.50 m RL and the lowest elevation is 1202.75 m 
                                                                                         RL. All measurements taken from the centre of the 
                                                                                         block. 
 
 
                                                                                    *    The initial search orientations applied to the model 
                                                                                         related to the geometry of the orebody. A bearing of 
                                                                                         -35deg and dip of -30deg was applied. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Estimation 
  and modelling     *    The nature and appropriateness of the estimation                  *    Estimation was completed using Datamine Studio RM(R) 
  techniques             technique(s) applied and key assumptions, including                    on a parent cell basis. The Gadir Resource Model is a 
                         treatment of extreme grade values, domaining,                          sub-celled block model controlled by the geological 
                         interpolation parameters and maximum distance of                       domains. In addition, both hard boundaries and 
                         extrapolation from data points. If a computer                          top-capping was used for all variables. 
                         assisted estimation method was chosen include a 
                         description of computer software and parameters used. 
                                                                                           *    Top-capping was applied to Au, Ag, Cu and Zn assays 
                                                                                                to minimise the impact of grade outliers/extreme 
                    *    The availability of check estimates, previous                          values, reduce the coefficient of variation ("CV") 
                         estimates and/or mine production records and whether                   within the mineralisation boundary and minimise the 
                         the Mineral Resource estimate takes appropriate                        impact on the ordinary kriging ("OK") estimation. 
                         account of such data. 
 
                                                                                          o Au top-cap: 115.00 g/t 
                    *    The assumptions made regarding recovery of                       o Ag top-cap: 480.00 g/t 
                         by-products.                                                     o Cu top-cap: 8.50% 
                                                                                          o Zn top-cap: 22.00% 
                                                                                           *    Estimation was conducted via OK using three 'passes'. 
                    *    Estimation of deleterious elements or other non-grade                  Inverse Power Distance ("IPD") estimation was 
                         variables of economic significance (eg sulphur for                     performed as well in order to validate and compare 
                         acid mine drainage characterisation).                                  the two estimations. 
 
 
                    *    In the case of block model interpolation, the block              o Full block estimation was performed, negative kriging 
                         size in relation to the average sample spacing and               weights were set to zero and estimation kriging variances 
                         the search employed.                                             greater than the respective variogram variance were 
                                                                                          reset to the variogram sill. 
                                                                                          o Initial search orientations were derived from the 
                    *    Any assumptions behind modelling of selective mining             principal structural orientations of the mineralisation. 
                         units.                                                           The principal search ranges for Au were set at 7 x 
                                                                                          8 x 7 m. Second and third passes with x2.5 and x3.5 
                                                                                          multipliers for the search ranges were applied. Minimum 
                    *    Any assumptions about correlation between variables.             and maximum samples per estimate were: 
                                                                                          o Pass 1 - 16 minimum; 32 maximum 
                                                                                          o Pass 2 - 10 minimum; 32 maximum 
                    *    Description of how the geological interpretation was             o Pass 3 - 3 minimum; 20 maximum 
                         used to control the resource estimates.                           *    The search was orientated along the plane of 
                                                                                                mineralisation. This correlated with the average 
                                                                                                orientation of the Au, Ag, Cu and Zn variography. 
                    *    Discussion of basis for using or not using grade 
                         cutting or capping. 
                                                                                           *    The Mineral Resources Estimate was subsequently 
                                                                                                depleted for mining to the end of August 2018. 
                    *    The process of validation, the checking process used, 
                         the comparison of model data to drill hole data, and 
                         use of reconciliation data if available.                          *    No assumptions regarding the recovery of by-products 
                                                                                                were applied. 
 
 
                                                                                           *    No assumptions relating to deleterious elements or 
                                                                                                other non-grade variables of economic significance 
                                                                                                were applied. 
 
 
                                                                                           *    The parent cell size of the block model is 5 mX x 5 
                                                                                                mY x 5 mZ. This cell size was derived from the 
                                                                                                extensive underground ore development, infill and 
                                                                                                grade control drilling, kriging efficiency and slope 
                                                                                                of regression analysis. A parent cell height of 5 m 
                                                                                                was deemed optimal for underground planning purposes. 
 
 
                                                                                           *    Waste blocking was also set to 5 x 5 x 5 m sizing. 
 
 
                                                                                           *    No selective mining unit assumptions were made. 
 
 
                                                                                           *    Available testwork indicated possible correlation 
                                                                                                between grade variables and bulk density data. The 
                                                                                                grade variables were modelled independently based on 
                                                                                                the Au domaining (the main revenue for the 
                                                                                                operation). 
 
 
                                                                                           *    Local knowledge of the mining area and the typical 
                                                                                                structures from exposures provided the bases for 
                                                                                                interpretation. This was used to create 3D solids. 
                                                                                                These solids were used to define hard boundaries 
                                                                                                during estimation, as observed and verified during 
                                                                                                mining operations. 
 
 
                                                                                           *    As part of the mining process, grade control drilling 
                                                                                          , 
                                                                                                truck sampling and process reconciliation forms part 
                                                                                                of the daily management of the operations. As such, 
                                                                                                extensive production data is available for 
                                                                                                comparison. The relative accuracy of the estimated 
                                                                                                resource compares well to the production data and the 
                                                                                                confidence in the estimate, given the amount of 
                                                                                                geological data, is considered high. 
 
 
                                                                                           *    The OK and IPD estimations were validated by: 
 
 
                                                                                          o Visual comparison of sections and plans with block 
                                                                                          estimates and composite intervals. 
                                                                                          o Statistical comparison of grade distributions for 
                                                                                          block estimates and declustered composites. 
                                                                                          o Swath plots were created of block model estimates 
                                                                                          and declustered composites in x,y,z orientations for 
                                                                                          Au, Ag, Cu and Zn mineralisation. 
                                                                                           *    These validations confirmed that there was a good 
                                                                                                correlation between declustered composites and 
                                                                                                declustered block model estimates. Instances of 
                                                                                                over-estimation was not encountered during analysis. 
 
 
                                                                                           *    The estimation method is considered appropriate for 
                                                                                                the style of mineralisation and geometry of the 
                                                                                                mineralised zone. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Moisture                                                                         *    Tonnage was estimated on a dry basis. 
                    *    Whether the tonnages are estimated on a dry basis or 
                         with natural moisture, and the method of 
                         determination of the moisture content. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Cut-off 
 parameters         *    The basis of the adopted cut-off grade(s) or quality       *    Grade continuity was assessed at a range of cut-offs 
                         parameters applied.                                             between 0.1 g/t and 3.0 g/t Au in 0.1 g/t increments. 
                                                                                         A tonnage-grade table and graph were prepared based 
                                                                                         on these variable cut-off grades. Following 
                                                                                         interrogation of this data, a 0.5 g/t Au cut-off 
                                                                                         grade was applied for the Gadir deposit. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Mining factors 
 or assumptions     *    Assumptions made regarding possible mining methods,        *    This resource estimation was carried out on 
                         minimum mining dimensions and internal (or, if                  mineralisation that is currently being mined via 
                         applicable, external) mining dilution. It is always             underground methods. 
                         necessary as part of the process of determining 
                         reasonable prospects for eventual economic extraction 
                         to consider potential mining methods, but the              *    The ore body is being worked using overhand stoping 
                         assumptions made regarding mining methods and                   in the upper levels where the dip is steeper and room 
                         parameters when estimating Mineral Resources may not            and pillar workings in the lower levels, where the 
                         always be rigorous. Where this is the case, this                dip is shallower. 
                         should be reported with an explanation of the basis 
                         of the mining assumptions made. 
                                                                                    *    The workings are connected to the spiral decline by 
                                                                                         drifts. Ore intersections along these drives are 
                                                                                         sampled for grade evaluation. The vertical distance 
                                                                                         between drifts for both mining methods is 10 m. 
 
 
                                                                                    *    Mining dilution and mining dimensions are referenced 
                                                                                         in Section 4 (Estimation and Reporting of Ore 
                                                                                         reserves). 
 
 
                                                                                    *    The current mining and ore extraction methodologies 
                                                                                         are appropriate for the geological conditions. The 
                                                                                         efficiency of extraction may be increased by 
                                                                                         sub-level stopping where the ore body is sufficiently 
                                                                                         thick and continuous. 
 
 
                                                                                    *    Other mining factors are not applied at this stage. 
 
 
                                                                                    *    Mineral Resources are developed by ore drives which 
                                                                                         are sampled and thereafter the appropriate mining 
                                                                                         method confirmed. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Metallurgical 
  factors or          *    The basis for assumptions or predictions regarding       *    The Company currently operates an agitation leach 
  assumptions              metallurgical amenability. It is always necessary as          plant, flotation plant, crushed heap leach pad and a 
                           part of the process of determining reasonable                 run-of-mine dump leach facility. 
                           prospects for eventual economic extraction to 
                           consider potential metallurgical methods, but the 
                           assumptions regarding metallurgical treatment            *    Ore is blended with material from other AIMC 
                           processes and parameters made when reporting Mineral          operations to meet mill production targets. These 
                           Resources may not always be rigorous. Where this is           targets therefore dictate the processing route the 
                           the case, this should be reported with an explanatio          material follows. 
                     n 
                           of the basis of the metallurgical assumptions made. 
                                                                                    *    The various plant operations have been in use since 
                                                                                         the start of extraction at Gedabek open pit (2009). 
                                                                                         As such, the basis for assumptions and predictions of 
                                                                                         processing routes and type of "ores" suitable for 
                                                                                         each process available are well understood. 
 
 
                                                                                    *    Due to the high-grade nature of the ore, Gadir ore is 
                                                                                         typically processed via AGL. 
 
 
                                                                                    *    No metallurgical factor assumptions were used during 
                                                                                         this estimation however these are discussed in 
                                                                                         Section 4 (Estimation and Reporting of Ore reserves). 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Environmental 
  factors or        *    Assumptions made regarding possible waste and process      *    The Gadir underground deposit is located in the 
  assumptions            residue disposal options. It is always necessary as             Gedabek Contract Area where AIMC currently operates 
                         part of the process of determining reasonable                   two other mines (both open pit). 
                         prospects for eventual economic extraction to 
                         consider the potential environmental impacts of the 
                         mining and processing operation. While at this stage       *    Approximately 20% of mine rock waste remains 
                         the determination of potential environmental impacts,           underground to be used primarily as stope-backfill 
                         particularly for a greenfields project, may not                 material. The remainder is trucked to the surface 
                         always be well advanced, the status of early                    waste dump. 
                         consideration of these potential environmental 
                         impacts should be reported. Where these aspects have 
                         not been considered this should be reported with an        *    As part of the initial start-up, environmental 
                         explanation of the environmental assumptions made.              studies and impacts were assessed and reported for 
                                                                                         Gedabek. This included the nature of process waste as 
                                                                                         managed in the tailings management facility ("TMF"). 
                                                                                         Other waste products are fully managed under the AIMC 
                                                                                         HSEC team, including disposal of mine equipment waste 
                                                                                         such as lubricants and oils). 
 
 
                                                                                    *    CQA has carried out a study of production waste 
                                                                                         management, in addition to designing and supervising 
                                                                                         the construction of the TMF and its recent expansion. 
                                                                                         CQA have permanent representation at Gadir and 
                                                                                         conduct monitoring of their baseline environmental 
                                                                                         systems (e.g. in local waterways). 
 
 
                                                                                    *    No environmental assumptions were used during this 
                                                                                         estimation however they are discussed in Section 4 
                                                                                         (Estimation and Reporting of Ore Reserves). 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Bulk density 
                    *    Whether assumed or determined. If assumed, the basis       *    Bulk density values were analysed and determined. A 
                         for the assumptions. If determined, the method used,            total of 1,818 samples were tested by AIMC from 
                         whether wet or dry, the frequency of the measurements,          selected core samples, which comprised both 
                         the nature, size and representativeness of the                  mineralisation and waste rocks. The density was 
                         samples.                                                        tested by rock type, extent of alteration and depth. 
                                                                                         The method used was hydrostatic weighing. 
 
                    *    The bulk density for bulk material must have been 
                         measured by methods that adequately account for void       *    Of the 1,818 samples, 292 density measurement samples 
                         spaces (vugs, porosity, etc), moisture and                      were used to calculate the average density of the 
                         differences between rock and alteration zones within            ore. 
                         the deposit. 
 
                                                                                    *    The samples within the ore material had an average 
                    *    Discuss assumptions for bulk density estimates used             density of 2.8 t/m3 and the waste rock were assigned 
                         in the evaluation process of the different materials.           a density of 2.5 t/m3. These densities have been used 
                                                                                         for resource calculation. 
 
 
                                                                                    *    It should be noted that DD samples were tested for 
                                                                                         density, not CH samples. 
 
 
                                                                                    *    Density data are considered appropriate for Mineral 
                                                                                         Resource and Mineral Reserve estimation. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Classification 
                    *    The basis for the classification of the Mineral                   *    The Mineral Resource has been classified on the basis 
                         Resources into varying confidence categories.                          of confidence in the following criteria: 
 
 
                    *    Whether appropriate account has been taken of all                o AIMC have been involved with the development of the 
                         relevant factors (ie relative confidence in                      project, from exploration, construction, production 
                         tonnage/grade estimations, reliability of input data,            and through to processing, since its discovery in 2012 
                         confidence in continuity of geology and metal values,            o The nature and associated confidence in the 
                         quality, quantity and distribution of the data).                 interpretation 
                                                                                          of the mineralisation 
                                                                                          o Proximity to existing underground workings 
                    *    Whether the result appropriately reflects the                    o DD and CH spacing and density 
                         Competent Person's view of the deposit.                          o DD and CH sampling density and average distance between 
                                                                                          samples informing the estimate 
                                                                                          o The degree of interpolation versus extrapolation, 
                                                                                          as identified by the estimation pass 
                                                                                          o The kriging efficiency and slope of regression of 
                                                                                          the final estimate 
                                                                                          o The overall extents of the Gadir orebody - for example, 
                                                                                          areas supported by less than two drillholes (e.g. at 
                                                                                          the periphery) were reclassified as 'Exploration Potential' 
                                                                                           *    Depending on the estimation parameters (described 
                                                                                                above), the Gadir resources were classified as 
                                                                                                Measured, Indicated or Inferred Mineral Resources, as 
                                                                                                defined by the parameters below. Additional 
                                                                                                'Exploration Potential', that fall outside Inferred 
                                                                                                parameters, have also been considered. 
 
 
                                                                                          o Measured: Blocks estimated in search volume 1 with 
                                                                                          a minimum 16 samples (maximum of 32) and maximum of 
                                                                                          5 per drillhole within 25 m of workings. 
                                                                                          o Indicated: Blocks estimated in search volume 2 with 
                                                                                          a minimum 10 samples (maximum of 32) and maximum of 
                                                                                          5 per drillhole within 25 m of workings. 
                                                                                          o Inferred: Blocks estimated in search volume 2 with 
                                                                                          a minimum 10 samples (maximum of 32) and maximum of 
                                                                                          5 per drillhole outside of 25 m of workings or blocks 
                                                                                          estimated in search volume 3 with a minimum 5 samples 
                                                                                          (maximum of 20) and maximum of 5 per drillhole outside 
                                                                                          of 25 m of workings. 
                                                                                          o Exploration Potential: Blocks estimated in search 
                                                                                          volume 3 with a minimum 3 samples (maximum of 20) and 
                                                                                          all the blocks estimated less than 5 samples, or all 
                                                                                          other material not classified within the Resource 
                                                                                          Categories 
                                                                                          and parameters above. 
                                                                                           *    It is anticipated that material classified as 
                                                                                                'Inferred' or 'Exploration Potential' may be upgraded 
                                                                                                with further drilling and sampling. 
 
 
                                                                                           *    The results reflect the CP's view of the deposit. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Audits or 
 reviews            *    The results of any audits or reviews of Mineral            *    Datamine consultants have been involved with other 
                         Resource estimates.                                             mining projects owned by the Company within the same 
                                                                                         contract area as the Gadir underground mine and as 
                                                                                         such are familiar with the processing methods 
                                                                                         available, value chain of the mining and cost 
                                                                                         structure. 
 
 
                                                                                    *    The data used as part of this project were audited, 
                                                                                         validated and considered adequate for Mineral 
                                                                                         Resource estimates - all aspects of the data 
                                                                                         collection and management were observed and 
                                                                                         evaluated. 
 
 
                                                                                    *    Internal company and external reviews of the Mineral 
                                                                                         Resources yield estimates that are consistent with 
                                                                                         the Mineral Resource results. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 Discussion 
 of relative        *    Where appropriate a statement of the relative              *    The relative accuracy of the Gadir Mineral Resource 
 accuracy/               accuracy and confidence level in the Mineral Resource           estimate is reflected in the applied Mineral Resource 
 confidence              estimate using an approach or procedure deemed                  classification as per the JORC Code, 2012 Edition. 
                         appropriate by the Competent Person. For example, the 
                         application of statistical or geostatistical 
                         procedures to quantify the relative accuracy of the        *    Confidence is high due to successful development and 
                         resource within stated confidence limits, or, if such           production of the deposit since 2015. There is good 
                         an approach is not deemed appropriate, a qualitative            reconciliation between mine and mill production 
                         discussion of the factors that could affect the                 grades. 
                         relative accuracy and confidence of the estimate. 
 
                                                                                    *    The August 2018 Gadir Mineral Resources classified as 
                    *    The statement should specify whether it relates to              Measured and Indicated are considered local estimates 
                         global or local estimates, and, if local, state the             of tonnage and grade. Areas classified as Inferred 
                         relevant tonnages, which should be relevant to                  are considered to be a global estimate of tonnage and 
                         technical and economic evaluation. Documentation                grade. 
                         should include assumptions made and the procedures 
                         used. 
                                                                                    *    Regions classified as Exploration Potential contain 
                                                                                         material that is not considered sufficiently 
                    *    These statements of relative accuracy and confidence            well-defined, at this point in time, to allow mining 
                         of the estimate should be compared with production              operations to develop to these areas to extract the 
                         data, where available.                                          material without considerable risk. However, they are 
                                                                                         considered to be areas for future investigation - 
                                                                                         further drilling to increase geological confidence 
                                                                                         and sample/assay density will be able to confirm 
                                                                                         potential mineralisation. 
 
 
                                                                                    *    The Gadir Mineral Resources table (for Au only) is 
                                                                                         presented below, with an Au cut-off of 0.5 g/t and 
                                                                                         depleted for mining development and production up 
                                                                                         until August 2018: 
 
                                                                                      MINERAL RESOURCES     Tonnage       Gold 
                                                                                        (Cut-off grade 
                                                                                         0.5 g/t Au) 
                                                                                   ---------------------- 
                                                                                                              kt      g/t     koz 
                                                                                   ----------------------  --------  -----  ------ 
                                                                                          Measured            540     3.70   64.2 
                                                                                                           --------  -----  ------ 
                                                                                          Indicated          1,235    2.04   81.0 
                                                                                                           --------  -----  ------ 
                                                                                    Measured + Indicated     1,775    2.54   145.2 
                                                                                                           --------  -----  ------ 
                                                                                          Inferred            571     1.48   27.2 
                                                                                                           --------  -----  ------ 
                                                                                            Total            2,347    2.29   172.4 
                                                                                                           --------  -----  ------ 
                                                                                         Exploration           5      1.37    0.2 
                                                                                                           --------  -----  ------ 
 
                                                                                   Note that due to rounding, numbers presented may not 
                                                                                   add up precisely to totals. 
                                                                                    *    Resources for Ag, Cu and Zn are presented in the main 
                                                                                         body of the report. 
 
 
                                                                                    *    Production data is available for block model 
                                                                                         comparison. The relative accuracy of the estimation 
                                                                                         compares well to the production data, and the 
                                                                                         confidence in the estimate given the amount of 
                                                                                         geological data is considered high. Future extraction 
                                                                                         of mineralisation, grade control and mining data will 
                                                                                         continue to be used to compare with the Resource 
                                                                                         model. 
 
 
                                                                                    *    The Mineral Resource Estimate (August 2018) is 
                                                                                         considered appropriate by the CP. 
 
 
                                                                                    *    It is the CP's opinion that the classification has 
                                                                                         taken into account all relevant factors, local 
                                                                                         knowledge of the orebody and wealth of information 
                                                                                         accumulated since the commencement of exploration of 
                                                                                         Gadir. 
                 --------------------------------------------------------------  -------------------------------------------------------------------- 
 

Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

 
 Criteria         JORC Code explanation                                         Commentary 
 Mineral 
 Resource           *    Description of the Mineral Resource estimate used as              *    Refer to Section 3 (Estimation and Reporting of 
 estimate for            a basis for the conversion to an Ore Reserve.                          Mineral Resources) for more detailed information 
 conversion                                                                                      regarding the Gadir Mineral Resource estimate. 
 to Ore 
 Reserves           *    Clear statement as to whether the Mineral Resources 
                         are reported additional to, or inclusive of, the Ore             *    The Ore Reserves calculation for Gadir was derived 
                         Reserves.                                                              from the Gadir Mineral Resource estimate, dated 
                                                                                             13(th) October 2018. The Model had a cut-off grade of 
                                                                                                 0.5 g/t Au applied and was depleted for mining 
                                                                                                development and production up until August 2018. 
 
 
                                                                                            *    The Resource Model assigns material to either 
                                                                                              Measured, Indicated or Inferred categories dependent 
                                                                                             upon variables discussed in Section 3 (Estimation and 
                                                                                               Reporting of Mineral Resources). The 'Exploration 
                                                                                               Potential' category includes mineralised material 
                                                                                                   that falls outside of Inferred parameters. 
 
 
                                                                                          *    Four tables have been prepared for each estimated 
                                                                                             commodity showing tonnes & grade, the contained metal 
                                                                                               by class and the percentage of metal by class. The 
                                                                                                 resources from each model are presented below: 
 
                                                                                                MINERAL RESOURCES     Tonnage           Gold 
                                                                                                                (Cut-off grade 
                                                                                                                  0.5 g/t Au) 
                                                                                         ---------------------- 
                                                                                                                    kt      g/t     koz    % koz 
                                                                                         ----------------------  --------  -----  ------  ------ 
                                                                                                 Measured            540     3.70   64.2     37% 
                                                                                                                 --------  -----  ------  ------ 
                                                                                                 Indicated          1,235    2.04   81.0     47% 
                                                                                                                 --------  -----  ------  ------ 
                                                                                           Measured + Indicated     1,775    2.54   145.2    84% 
                                                                                                                 --------  -----  ------  ------ 
                                                                                                 Inferred            571     1.48   27.2     16% 
                                                                                                                 --------  -----  ------  ------ 
                                                                                                   Total            2,347    2.29   172.4   100% 
                                                                                                                 --------  -----  ------  ------ 
                                                                                                Exploration           5      1.37    0.2      - 
                                                                                                                 --------  -----  ------  ------ 
 
                                                                                                MINERAL RESOURCES     Tonnage          Silver 
                                                                                         ---------------------- 
                                                                                                                    kt       g/t     koz    % koz 
                                                                                         ----------------------  --------  ------  ------  ------ 
                                                                                                Measured            540     17.49   303.6    36% 
                                                                                                                 --------  ------  ------  ------ 
                                                                                                Indicated          1,235    10.89   432.4    51% 
                                                                                                                 --------  ------  ------  ------ 
                                                                                          Measured + Indicated     1,775    12.90   736.1    88% 
                                                                                                                 --------  ------  ------  ------ 
                                                                                                Inferred            571     5.68    104.4    12% 
                                                                                                                 --------  ------  ------  ------ 
                                                                                                  Total            2,347    11.14   840.4   100% 
                                                                                                                 --------  ------  ------  ------ 
                                                                                                Exploration           5      5.94     0.9     cc 
                                                                                                                 --------  ------  ------  ------ 
                                                                                                MINERAL RESOURCES     Tonnage         Copper 
                                                                                          ---------------------- 
                                                                                                                     kt       %       t     % t 
                                                                                          ----------------------  --------  -----  ------  ----- 
                                                                                                 Measured            540     0.29   1,566   41% 
                                                                                                                  --------  -----  ------  ----- 
                                                                                                 Indicated          1,235    0.14   1,729   45% 
                                                                                                                  --------  -----  ------  ----- 
                                                                                           Measured + Indicated     1,775    0.21   3,295   85% 
                                                                                                                  --------  -----  ------  ----- 
                                                                                                 Inferred            571     0.10    571    15% 
                                                                                                                  --------  -----  ------  ----- 
                                                                                                   Total            2,347    0.19   3,866   100% 
                                                                                                                  --------  -----  ------  ----- 
                                                                                                 Exploration           5      0.09   2,470    - 
                                                                                                                  --------  -----  ------  ----- 
                                                                                                MINERAL RESOURCES     Tonnage           Zinc 
                                                                                         ---------------------- 
                                                                                                                     kt       %       t      % t 
                                                                                         ----------------------  --------  -----  -------  ----- 
                                                                                                 Measured            540     1.01   5,454    31% 
                                                                                                                 --------  -----  -------  ----- 
                                                                                                 Indicated          1,235    0.73   9,016    52% 
                                                                                                                 --------  -----  -------  ----- 
                                                                                           Measured + Indicated     1,775    0.84   14,470   83% 
                                                                                                                 --------  -----  -------  ----- 
                                                                                                 Inferred            571     0.52   2,972    17% 
                                                                                                                 --------  -----  -------  ----- 
                                                                                                  Total            2,347    0.78   17,442   100% 
                                                                                                                 --------  -----  -------  ----- 
                                                                                                Exploration           5      0.60   7,620     - 
                                                                                                                 --------  -----  -------  ----- 
                                                                                           Note that due to rounding, numbers presented may not 
                                                                                                       add up precisely to totals. 
                                                                                        *    Only Resources defined to Measured and Indicated were 
                                                                                              considered for Ore Reserve calculation to Proved and 
                                                                                                              Probable for Gadir. 
 
 
                                                                                             *    The Ore Reserve statement is inclusive (not 
                                                                                                   additional to) of the Resource statement. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Site visits 
                    *    Comment on any site visits undertaken by the             *    Datamine consultants developed and audited the Ore 
                         Competent Person and the outcome of those visits.             Reserves estimation for the Gadir underground mine. 
                                                                                       Two Datamine engineers worked on the resources and 
                                                                                       reserves (one assigned to each project) and were able 
                    *    If no site visits have been undertaken indicate why           to verify work practice and procedures. 
                         this is the case. 
 
                                                                                  *    Aidar Kairbekov (Senior Mining Consultant; Datamine) 
                                                                                       visited Gadir for 5 days in October 2018 and worked 
                                                                                       on the Ore Reserves calculation. 
 
 
                                                                                  *    The CP is an employee of the company and as such has 
                                                                                       been actively in a position to be fully aware of all 
                                                                                       stages of the exploration and project development. 
                                                                                       The CP has worked very closely with the independent 
                                                                                       resource and reserve estimation staff of Datamine, 
                                                                                       both on site and remotely, to ensure knowledge 
                                                                                       transfer of the geological situation, to allow 
                                                                                       geological "credibility" to the modelling process. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Study status 
                   *    The type and level of study undertaken to enable          *    Study undertaken to enable Mineral Resources to be 
                        Mineral Resources to be converted to Ore Reserves.             converted to Ore Reserves was completed to 
                                                                                       Feasibility standard. As the mine has been operating 
                                                                                       for nearly four years, operating costs are well 
                   *    The Code requires that a study to at least                     understood, with continuous data generated since 
                        Pre-Feasibility Study level has been undertaken to             commencement of mining, and with the geological data 
                        convert Mineral Resources to Ore Reserves. Such                being generated from a tightly-spaced drilling grid. 
                        studies will have been carried out and will have               Extraction is reasonably justified and calculated to 
                        determined a mine plan that is technically achievable          be economically mineable as of the modifying 
                        and economically viable, and that material Modifying           conditions reported. 
                        Factors have been considered. 
 
                                                                                  *    The ore will continue to be mined utilising the 
                                                                                       current mining fleet and will be processed in the 
                                                                                       current processing facilities of the Company which 
                                                                                       operates two other mines in the same Contract Area. 
 
 
                                                                                  *    The modifying factors used in conversion of Mineral 
                                                                                       Resources to Ore Reserves were based on 
                                                                                       reconciliation and observation of past mining and 
                                                                                       processing performance. 
 
 
                                                                                  *    A technically achievable mine plan that is 
                                                                                       economically viable has been designed taking into 
                                                                                       consideration the JORC resources and modifying 
                                                                                       factors. 
 
 
                                                                                  *    Confidence in the calculations and results is 
                                                                                       considered high. 
 
 
                                                                                  *    Extraction of ore from the Gadir mine will continue. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Cut-off 
 parameters         *    The basis of the cut-off grade(s) or quality             *    Financial factors included in the COG estimates are 
                         parameters applied.                                           mining, process and overhead costs, along with mining 
                                                                                       dilution, payable gold and silver prices and 
                                                                                       processing recovery. 
 
 
                                                                                  *    In 2018, AAM completed an exercise for estimation of 
                                                                                       various COGs based on agreed economic parameters with 
                                                                                       the Technical Services team. A "strategic" COG of 1.2 
                                                                                       g/t Au was applied to the Resource Model during 
                                                                                       calculation of the Ore Reserves as established by AAM 
                                                                                       (break-even cut-off, "BECOG", plus a return on 
                                                                                       capital and margin). 
 
 
                                                                                  *    BECOG was calculated at 0.93 g/t Au. 
 
 
                                                                                  *    The COG was verified using a forecasted Au price, 
                                                                                       costs and metallurgical recoveries from the past 
                                                                                       financial year. A 1.2 g/t Au COG was applied to 
                                                                                       create initial stope shapes. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Mining factors 
 or assumptions    *    The method and assumptions used as reported in the                 *    The 2018 Gadir Mineral Resources Block Model was used 
                        Pre-Feasibility or Feasibility Study to convert the                       as the basis for stope and development design. No 
                        Mineral Resource to an Ore Reserve (i.e. either by                      modifications were made to this model for mine design 
                        application of appropriate factors by optimisation or                                         purposes. 
                        by preliminary or detailed design). 
 
                                                                                             *    The modifying factors and assumptions used in the 
                   *    The choice, nature and appropriateness of the                            conversion of Mineral Resources to Ore Reserves were 
                        selected mining method(s) and other mining parameters                      based on reconciliation and observation of past 
                        including associated design issues such as pre-strip,                    mining and processing performance, as Gadir has been 
                        access, etc.                                                                          in production since 2015. 
 
 
                   *    The assumptions made regarding geotechnical                         *    Ore Reserves were calculated by generating mineable 
                        parameters (eg pit slopes, stope sizes, etc), grade                        shapes for all areas that contained Measured or 
                        control and pre-production drilling.                                    Indicated Resources. Ore drive development for access 
                                                                                                                 was also considered. 
 
                   *    The major assumptions made and Mineral Resource model 
                        used for pit and stope optimisation (if appropriate).               *    The underground stope optimisation was run using the 
                                                                                                 industry standard Datamine MSO(R) software package. 
                                                                                                  Every stope shape output from MSO(R) was manually 
                   *    The mining dilution factors used.                                         inspected to determine its potential for eventual 
                                                                                                 extraction. Exclusion control has been used to avoid 
                                                                                                the creation of stope shapes within adverse rock-mass 
                   *    The mining recovery factors used.                                                   or processing material zones. 
 
 
                   *    Any minimum mining widths used.                                        *    For this study, physical exclusion constraints 
                                                                                                                      included: 
 
                   *    The manner in which Inferred Mineral Resources are 
                        utilised in mining studies and the sensitivity of the                  o Depleted resources within stopes and development 
                        outcome to their inclusion.                                                                  areas 
                                                                                               o "Non-recoverable" material located in areas that 
                                                                                            cannot be safely mined due to previous mining activities 
                   *    The infrastructure requirements of the selected                        *    The final mineable material comprised the Ore 
                        mining methods.                                                                               Reserves. 
 
 
                                                                                           *    Access to the orebody is via a single entrance portal 
                                                                                                    that is connected to the workings by a decline 
                                                                                                                     development. 
 
 
                                                                                             *    The mining methods currently employed at Gadir are 
                                                                                                   overhand stoping in the 'Upper Zone' (above 1442 
                                                                                                  mRL). Here, the orebody dip is steeper. Below the 
                                                                                                 1442 mRL, room-and-pillar extraction is used as the 
                                                                                                             orebody has a shallower dip. 
 
 
                                                                                              *    Access drives were used for both development and 
                                                                                                   stoping. Pillars of the ore are left in place to 
                                                                                                 provide support. No backfill procedure is in place; 
                                                                                                however, about 20% of the waste rock produced remains 
                                                                                                   underground and is used to backfill stopes on a 
                                                                                                                 case-by-case basis. 
 
 
                                                                                            *    Geotechnical parameters were determined based on an 
                                                                                                independent geotechnical investigation carried out by 
                                                                                                    CQA International Limited, taking into account 
                                                                                                      geological structure, rock type and design 
                                                                                                               orientation constraints. 
 
 
                                                                                             *    It was established that the current mining and ore 
                                                                                                   extraction methodologies are appropriate for the 
                                                                                                 geological conditions. The geotechnical constraints 
                                                                                                are well understood and assessed ahead of development 
                                                                                                (especially with respect to fault zone intersection). 
 
 
                                                                                             *    Lateral development design parameters implemented 
                                                                                                  during mine planning for this study are summarised 
                                                                                                                        below: 
 
                                                                                                             Description         Value 
                                                                                                               Ramp         4.0 x 4.0 m 
                                                                                                                           ------------- 
                                                                                                             Decline        4.0 x 4.0 m 
                                                                                                                           ------------- 
                                                                                                             Crosscut       4.0 x 4.0 m 
                                                                                                                           ------------- 
                                                                                                         Level Ore Drive    4.0 x 4.0 m 
                                                                                                                           ------------- 
                                                                                                         Return Air Raise   Square 1.5 x 
                                                                                                                                 1.5 m 
                                                                                                                           ------------- 
 
 
                                                                                              *    Stope design parameters implemented during mine 
                                                                                                    planning for this study are summarised below: 
 
 
                                                                                                                   Overhand stoping 
                                                                                                          Parameter     Minimum   Maximum 
                                                                                                                       --------  -------- 
                                                                                                         Stope Width     3.5 m    10.0 m 
                                                                                                                       --------  -------- 
                                                                                                         Stope Length     5.0 m       - 
                                                                                                                       --------  -------- 
                                                                                                         Stope Height     5.0 m       - 
                                                                                                                       --------  -------- 
                                                                                                         Pillar Width     4.0 m       - 
                                                                                                                       --------  -------- 
                                                                                                          Dip Angle      30deg     90deg 
                                                                                                                       --------  -------- 
                                                                                                                     Room-and-pillar 
                                                                                                          Parameter     Minimum   Maximum 
                                                                                                                       --------  -------- 
                                                                                                         Stope Width     3.5 m    10.0 m 
                                                                                                                       --------  -------- 
                                                                                                         Stope Length     5.0 m       - 
                                                                                                                       --------  -------- 
                                                                                                         Stope Height     5.0 m       - 
                                                                                                                       --------  -------- 
                                                                                                        Pillar Width     4.0 m    15.0 m 
                                                                                                                       --------  -------- 
                                                                                                          Dip Angle      40deg     90deg 
                                                                                                                       --------  -------- 
 
                                                                                           *    The geotechnical modifying factors have been verified 
                                                                                                       by current underground mining practices. 
 
 
                                                                                             *    Planned stope dilution was considered and designed 
                                                                                                   into the mining shapes and further interrogated 
                                                                                                               against the block model. 
 
 
                                                                                            *    Unplanned stope dilution (e.g. due to overbreak) was 
                                                                                                 assumed to be 10% based on historic production data. 
                                                                                                 This was applied after block model interrogation to 
                                                                                                      generate a diluted ore tonnage and grade. 
 
 
                                                                                             *    The mining recovery factor was estimated to be 95% 
                                                                                                  for both the room-and-pillar and overhand stoping 
                                                                                                methods and was based on current reconciliation data. 
 
 
                                                                                           *    A minimum mining width of 3.5 m was used based on the 
                                                                                                     nature of the deposit and equipment fleet in 
                                                                                                                      operation. 
 
 
                                                                                              *    The Ore Reserves contain approximately 0.08% of 
                                                                                                  Inferred Resources. This material was captured in 
                                                                                                    mining shapes therefore has modifying factors 
                                                                                                   applied. Its inclusion and subsequent impact on 
                                                                                                          economic viability is negligible. 
 
 
                                                                                              *    Gadir is an established, operating mine and all 
                                                                                                  infrastructure required to service the demands is 
                                                                                                                  already in place. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Metallurgical 
  factors or       *    The metallurgical process proposed and the                *    The ore extracted from Gadir is treated at the 
  assumptions           appropriateness of that process to the style of                Gedabek processing facilities. The plants process all 
                        mineralisation.                                                ore sourced from the Gedabek Contract Area. 
 
 
                   *    Whether the metallurgical process is well-tested          *    The ore from the Gadir underground mine can be 
                        technology or novel in nature.                                 processed by four different available processing 
                                                                                       methods within the Gedabek Contract Area. These are 
                                                                                       agitation leach ("AGL"), heap leach of crushed 
                   *    The nature, amount and representativeness of                   material ("HLC"), heap leach of run-of-mine material 
                        metallurgical test work undertaken, the nature of the          ("HLROM") and flotation ("FLT"). There also will be 
                        metallurgical domaining applied and the corresponding          two stockpiles, comprising of Gedabek ore generated 
                        metallurgical recovery factors applied.                        during the life-of-mine ("LOM"), available for 
                                                                                       blending. 
 
                   *    Any assumptions or allowances made for deleterious 
                        elements.                                                 *    AAM will decide how to process these in due course, 
                                                                                       as it depends on the blending criteria, financial 
                                                                                       factors and the quality of material from other mines 
                   *    The existence of any bulk sample or pilot scale test           in the Company's portfolio. These two types of 
                        work and the degree to which such samples are                  stockpile material are denoted as "SPF" (Cu stockpile 
                        considered representative of the orebody as a whole.           for flotation) and "ROMSP" (low-grade Au material 
                                                                                       that could be sent to ROM processing by blending with 
                                                                                       higher grade material). Copper and precious metal 
                   *    For minerals that are defined by a specification, has          concentrates are also produced via a SART plant. All 
                        the ore reserve estimation been based on the                   these processing facilities are currently in 
                        appropriate mineralogy to meet the specifications?             operation in the Gedabek Contract Area. 
 
 
                                                                                  *    It should be noted that due to the high-grade nature 
                                                                                       and physical properties of the material, Gadir ore is 
                                                                                       typically only processed via the AGL method. 
                                                                                       Additionally, as Gadir is fresh material (i.e. 
                                                                                       unoxidised), it is blended with other softer ores to 
                                                                                       assist during crushing. 
 
 
                                                                                  *    The proposed metallurgical processes are well-tested, 
                                                                                       being processing facilities for current mining 
                                                                                       operations in the Contract Area. The processing 
                                                                                       facilities include conventional methods that comprise 
                                                                                       comminution, gravity concentration (via Knelson 
                                                                                       concentrators), thickening, agitation leaching, 
                                                                                       resin-in-pulp extraction, elution and electrowinning 
                                                                                       to produce gold doré. For flotation, a 
                                                                                       concentrate is produced. The final products will be 
                                                                                       shipped off site for refining, in line with current 
                                                                                       practices. 
 
 
                                                                                  *    Tails from each process operation will be transferred 
                                                                                       via gravity pipeline to the existing tailings 
                                                                                       management facility ("TMF"). The TMF has enough 
                                                                                       capacity to manage the projected tails from the Gadir 
                                                                                       deposit. 
 
 
                                                                                  *    Metallurgical testwork has previously been conducted 
                                                                                       on drill and bulk truck samples in the form of bottle 
                                                                                       roll and column leach testing. This enabled 
                                                                                       amenability of the ore to leaching via AGL and static 
                                                                                       HL processes to be assessed. 
 
 
                                                                                  *    As the mine has been operating since 2015, 
                                                                                       metallurgical recoveries of the various ore types are 
                                                                                       well understood and a geometallurgical classification 
                                                                                       system has been developed for Gadir. The amount of 
                                                                                       testwork is considered representative of the 
                                                                                       processing technology to be employed. 
 
 
                                                                                  *    Deleterious elements were not detected in analytical 
                                                                                       tests or during assaying of samples (utilised in the 
                                                                                       Mineral Resource) and the Ore Reserves estimation has 
                                                                                       been based on the appropriate mineralogy to meet the 
                                                                                       specification. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Environmental 
                    *    The status of studies of potential environmental         *    A previous Environmental and Social Impact Assessment 
                         impacts of the mining and processing operation.               ("ESIA") was carried out over the Gedabek Contract 
                         Details of waste rock characterisation and the                Area by Amec Foster Wheeler and TexEkoMarkazMMC, both 
                         consideration of potential sites, status of design            in 2012 and submitted to the relevant Government 
                         options considered and, where applicable, the status          authorities. The Gadir deposit is located within the 
                         of approvals for process residue storage and waste            Gedabek Contract Area for which the ESIA is valid. 
                         dumps should be reported.                                     Processing and tailings storage reported in the ESIA 
                                                                                       has not changed since its publication and will 
                                                                                       continue to be utilised for material as part of this 
                                                                                       Ore Reserve update. 
 
 
                                                                                  *    CQA have on-site representation and they have carried 
                                                                                       out both the geotechnical and environmental 
                                                                                       assessments of the Gadir mine area. Baseline 
                                                                                       environmental monitoring is carried out via use of 
                                                                                       receptors downstream of the mine site to observe 
                                                                                       catchments located in the vicinity of the Gadir mine. 
                                                                                       Watercourses downstream of stockpiles will continue 
                                                                                       to be monitored on a routine basis for pH and heavy 
                                                                                       metal contaminants. 
 
 
                                                                                  *    Stockpile areas for waste rock have previously been 
                                                                                       identified following condemnation drilling. Waste 
                                                                                       material will continue to be utilised for 
                                                                                       infrastructure (road) construction at the Gedabek 
                                                                                       Contract Area where required. The waste rock has a 
                                                                                       low potential for acid rock drainage due to the 
                                                                                       absence of sulphide-bearing mineralisation. In total, 
                                                                                       about 20% of the waste rock is back-filled into 
                                                                                       stopes underground and is not transported to surface. 
 
 
                                                                                  *    The TMF has the capability, with an addition lift, 
                                                                                       for the extra storage requirements for Gadir process 
                                                                                       waste. The design and operations of the TMF have been 
                                                                                       reviewed by CQA along with a visit by MENR. Regular 
                                                                                       environmental monitoring is carried out at the TMF, 
                                                                                       along with monitoring of all receptors associated 
                                                                                       with the TMF. Independent reviews and third-party 
                                                                                       safety inspections of the TMF is routinely carried 
                                                                                       out. Tailings water is now returned to the process 
                                                                                       site water treatment plant (ultra-filtration and 
                                                                                       reverse osmosis) and reused in ore treatment. 
 
 
                                                                                  *    All approvals for conducting mining fall under the 
                                                                                       PSA. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Infrastructure 
                   *    The existence of appropriate infrastructure:              *    Infrastructure is considered excellent for Gadir. The 
                        availability of land for plant development, power,             deposit is located within AAM's Gedabek Contract Area 
                        water, transportation (particularly for bulk                   with extraction rights according to the PSA. Ore can 
                        commodities), labour, accommodation; or the ease with          be processed at the Company's current facilities, 
                        which the infrastructure can be provided, or                   with material being delivered by truck from the mine 
                        accessed.                                                      to processing via the constructed haul road system. 
 
 
                                                                                  *    Offices and mechanical workshop buildings are 
                                                                                       available. Power for the offices, workshop and 
                                                                                       weighbridge will continue to be via grid electrical 
                                                                                       power, with diesel generators as backup. Labour is 
                                                                                       readily available and planned extraction rates are 
                                                                                       consistent with current capacity. G&A and process 
                                                                                       labour are part of the existing company compliment of 
                                                                                       staff. Regarding accommodation, canteen facilities 
                                                                                       and associated services, the continuing exploitation 
                                                                                       of the Gadir deposit will be serviced by the current 
                                                                                       infrastructure. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Costs 
                    *    The derivation of, or assumptions made, regarding               *    Project capital costs are minimal given that no 
                         projected capital costs in the study.                                additional processing facilities or manpower camps 
                                                                                              are required. The costs in relation to the facilities 
                                                                                              already referenced above are based on actual 
                    *    The methodology used to estimate operating costs.                    quotations, considering capital construction and 
                                                                                              local operational experience. 
 
                    *    Allowances made for the content of deleterious 
                         elements.                                                       *    Operating costs are estimated based on current mining 
                                                                                              and processing operations within the Contract Area. 
                                                                                              This is applicable as ore processing will be carried 
                    *    The derivation of assumptions made of metal or                       out at the same plants and mining, contractor and 
                         commodity price(s), for the principal minerals and                   haulage costs are the same as current agreements. 
                         co- products. 
 
                                                                                         *    Treatment and refining costs are based on current 
                    *    The source of exchange rates used in the study.                      contracts, as the ore will be treated in the 
                                                                                              operating processing plants and refined under the 
                                                                                              current agreements (including transport). Penalties 
                    *    Derivation of transportation charges.                                are applicable for deleterious elements in FLT 
                                                                                              concentrate; however, studies of the concentrations 
                                                                                              of these elements show that the mined material 
                    *    The basis for forecasting or source of treatment and                 contains deleterious elements below these penalty 
                         refining charges, penalties for failure to meet                      levels. 
                         specification, etc. 
 
                                                                                         *    Revenue was based on the USD $ Au price, USD $ Ag 
                    *    The allowances made for royalties payable, both                      price and USD $ Cu price. Commodity pricing was based 
                         Government and private.                                              on forecasts by reputable market analysts. Local 
                                                                                              Azeri exchange rates are pegged to the United States 
                                                                                              Dollar (USD $). The source of exchange rates used in 
                                                                                              the study was the Central Bank of the Republic of 
                                                                                              Azerbaijan. 
 
 
                                                                                         *    Prices (USD $) for Au, Ag and Cu used in EPS(R) were: 
 
 
                                                                                        o Gold: $1250 per troy ounce ($40.19 per gramme) 
                                                                                        o Silver: $16.50 per troy ounce ($0.53 per gramme) 
                                                                                        o Copper: $6000.00 per tonne 
                                                                                         *    Royalties have been considered as part of the cost 
                                                                                              structure for the company to operate under the PSA. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Revenue 
 factors           *    The derivation of, or assumptions made regarding                    *    Prices (USD $) for Au, Ag and Cu used in EPS(R) were: 
                        revenue factors including head grade, metal or 
                        commodity price(s) exchange rates, transportation and 
                        treatment charges, penalties, net smelter returns,                      o Gold: $1250 per troy ounce ($40.19 per gramme) 
                        etc.                                                                   o Silver: $16.50 per troy ounce ($0.53 per gramme) 
                                                                                                          o Copper: $6000.00 per tonne 
                                                                                             *    The selling price of each commodity is deduced from 
                   *    The derivation of assumptions made of metal or                           the respective market price to determine the NSR. The 
                        commodity price(s), for the principal metals,                             values used are specified by the process route and 
                        minerals and co-products.                                                    product shown in the table below. Sensitivity 
                                                                                                    analysis has been used at a range of Au and Ag 
                                                                                                                        prices. 
 
 
                                                                                            Processes          Selling % payable - Net of refining and 
                                                                                                                                  transportation 
                                                                                                                Doré                 Concentrate 
                                                                                                     -------------------------  ------------------------- 
                                                                                                         Au       Ag       Cu       Au       Ag       Cu 
                                                                                                         AGL       99.95%   96.00%   86.60% 
                                                                                                         HLC       99.95%   96.00%   86.60% 
                                                                                                     -------  -------  ------- 
                                                                                                        HLROM      99.95%   96.00%   86.60% 
                                                                                                     -------  -------  ------- 
                                                                                            FLT                                  97.00%   84.00%   83.00% 
                                                                                                     -------------------------  -------  -------  ------- 
                                                                                            SPF                                  97.00%   84.00%   83.00% 
                                                                                                     -------  -------  -------  -------  -------  ------- 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Market 
 assessment        *    The demand, supply and stock situation for the            *    The market for Au, Ag and Cu is well established. The 
                        particular commodity, consumption trends and factors           metal price is fixed externally to the Company 
                        likely to affect supply and demand into the future.            however AAM has reviewed a number of metal forecast 
                                                                                       documents from reputable analysts and is comfortable 
                                                                                       with the market supply and demand situation. 
                   *    A customer and competitor analysis along with the 
                        identification of likely market windows for the 
                        product.                                                  *    A specific study of customer and competitor analysis 
                                                                                       has not been completed as part of this project. 
 
                   *    Price and volume forecasts and the basis for these 
                        forecasts.                                                *    Price and volume forecasts have been studied in 
                                                                                       reports from reputable analysts, based on metal 
                                                                                       supply and demand, USD $ forecasts and global 
                   *    For industrial minerals the customer specification,            economics. 
                        testing and acceptance requirements prior to a supply 
                        contract. 
                                                                                  *    Industrial minerals do not form part of this study. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Economic 
                    *    The inputs to the economic analysis to produce the              *    Prices (USD $) for Au, Ag and Cu used in EPS(R) were: 
                         net present value (NPV) in the study, the source and 
                         confidence of these economic inputs including 
                         estimated inflation, discount rate, etc.                       o Gold: $1250 per troy ounce ($40.19 per gramme) 
                                                                                        o Silver: $16.50 per troy ounce ($0.53 per gramme) 
                                                                                        o Copper: $6000.00 per tonne 
                    *    NPV ranges and sensitivity to variations in the                 *    Processing Recovery parameters for the various 
                         significant assumptions and inputs.                                  processing methods other than AGL have been included 
                                                                                              for comparison, in addition to Cu recovery % (all in 
                                                                                              italics): 
 
                                                                                         Proceses      Recovery % 
                                                                                                     Au    Ag    Cu 
                                                                                                    ----  ----  ---- 
                                                                                            AGL      75%   66%   30% 
                                                                                                    ----  ----  ---- 
                                                                                            HLC      60%   7%    30% 
                                                                                                    ----  ----  ---- 
                                                                                           HLROM     40%   7%    20% 
                                                                                                    ----  ----  ---- 
                                                                                            FLT      60%   68%   83% 
                                                                                                    ----  ----  ---- 
                                                                                            SPF      60%   68%   83% 
                                                                                                    ----  ----  ---- 
 
                                                                                         *    Selling costs were described in 'Revenue Factors' 
 
 
                                                                                         *    Sensitivity analysis has been used at a range of Au, 
                                                                                              Ag and Cu prices. Variables that have the largest 
                                                                                              positive impact on NPV is the Au price. Conversely, 
                                                                                              the OPEX cost has a negative impact on project NPV; 
                                                                                              when these increase it impacts project economics. AAM 
                                                                                              routinely controls its operating costs. 
 
 
                                                                                         *    NPV, NPV ranges and sensitivity will not be detailed 
                                                                                              here as the information is commercially sensitive. 
 
 
                                                                                         *    A discount rate of 10.5% was used. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Social 
                    *    The status of agreements with key stakeholders and       *    To the best of the CP's knowledge, agreements with 
                         matters leading to social licence to operate.                 key stakeholders and matters leading to social 
                                                                                       licence to operate are valid and in place. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Other 
                   *    To the extent relevant, the impact of the following       *    There are no known material or naturally occurring 
                        on the project and/or on the estimation and                    risks associated with the Ore Reserves. 
                        classification of the Ore Reserves: 
 
                                                                                  *    AAM is currently compliant with all legal, regulatory 
                   *    Any identified material naturally occurring risks.             and marketing arrangements and agreements. 
 
 
                   *    The status of material legal agreements and marketing     *    The Gadir underground project is located within a 
                        arrangements.                                                  licence area ("Contract Area") that is governed under 
                                                                                       a PSA, managed by the Azerbaijan Ministry of Ecology 
                                                                                       and Natural Resources ("MENR"). 
                   *    The status of governmental agreements and approvals 
                        critical to the viability of the project, such as 
                        mineral tenement status, and government and statutory     *    The PSA grants AAM a number of 'time periods' to 
                        approvals. There must be reasonable grounds to expect          exploit defined Contract Areas, as agreed upon during 
                        that all necessary Government approvals will be                the initial signing. The period of time allowed for 
                        received within the timeframes anticipated in the              early-stage exploration of the Contract Areas to 
                        Pre-Feasibility or Feasibility study. Highlight and            assess prospectivity can be extended if required. 
                        discuss the materiality of any unresolved matter that 
                        is dependent on a third party on which extraction of 
                        the reserve is contingent.                                *    A 'development and production period' that runs for 
                                                                                       fifteen years, commences on the date that the Company 
                                                                                       holding the PSA issues a notice of discovery, with 
                                                                                       two extensions of five years each at the option of 
                                                                                       the company. Full management control of mining within 
                                                                                       the Contract Areas rests with AIMC. The Gedabek 
                                                                                       Contract Area, incorporating the Gadir underground, 
                                                                                       Gedabek open pit and Ugur open pit, currently 
                                                                                       operates under this title. 
 
 
                                                                                  *    Under the PSA, AAM is not subject to currency 
                                                                                       exchange restrictions and all imports and exports are 
                                                                                       free of tax or other restrictions. In addition, MENR 
                                                                                       is to use its best endeavours to make available all 
                                                                                       necessary land, its own facilities and equipment and 
                                                                                       to assist with infrastructure. 
 
 
                                                                                  *    At the time of reporting, no known impediments to 
                                                                                       obtaining a licence to operate in the area exist. 
 
 
                                                                                  *    The PSA is valid for the forecast LOM. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Classification 
                    *    The basis for the classification of the Ore Reserves     *    Measured Mineral Resources were converted to Proved 
                         into varying confidence categories.                           Reserves after applying the modifying factors. 
 
 
                    *    Whether the result appropriately reflects the            *    Indicated Mineral Resources were converted to 
                         Competent Person's view of the deposit.                       Probable Ore Reserves after applying the modifying 
                                                                                       factors. 
 
                    *    The proportion of Probable Ore Reserves that have 
                         been derived from Measured Mineral Resources (if         *    Internal dilution ( 
                         any). 
 
                                                                                  *    The Ore Reserve is based on a global estimate; the 
                                                                                       division of material between Proved and Probable is 
                                                                                       72:28 respectively. 
 
 
                                                                                  *    The underground Ore Reserves contain approximately 
                                                                                       0.08% of Inferred Mineral Resources. This near-zero 
                                                                                       value demonstrates that the Gadir deposit is 
                                                                                       understood and well-defined through exploration and 
                                                                                       grade control drilling, as well as mining 
                                                                                       development. 
 
 
                                                                                  *    The resultant Ore Reserves are appropriate given the 
                                                                                       level of understanding of the deposit geology and 
                                                                                       reflects the CP's view of the deposit. 
 
 
                                                                                  *    No Probable Ore Reserves were derived from Measured 
                                                                                       Mineral Resources. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Audits or 
 reviews            *    The results of any audits or reviews of Ore Reserve      *    Datamine developed and audited the Mineral Resource 
                         estimates.                                                    and Ore Reserve models and estimations. Two Datamine 
                                                                                       engineers worked on the resources and reserves and 
                                                                                       were able to verify work practice and procedures. 
 
 
                                                                                  *    Datamine consultants have been involved with other 
                                                                                       mining projects of the company within the same 
                                                                                       contract area as the Gadir underground mine and as 
                                                                                       such are familiar with the processing methods 
                                                                                       available, value chain of the mining and cost 
                                                                                       structure. 
 
 
                                                                                  *    The data used as part of the Mineral Resources 
                                                                                       project was audited, validated and considered robust 
                                                                                       for Ore Reserves calculations. 
 
 
                                                                                  *    The Gadir Ore Reserve estimate was reviewed by the CP 
                                                                                       and was considered to be reasonable and adequately 
                                                                                       supported, consistent with industry practice for 
                                                                                       reporting Ore Reserves in accordance with the JORC 
                                                                                       Code [3]. 
 
 
                                                                                  *    Internal company and external reviews of the Ore 
                                                                                       Reserves yield estimates that are consistent with the 
                                                                                       Ore Reserve results. The amount of waste material 
                                                                                       calculated as part of dilution and capital 
                                                                                       development totals 80,916 t over the LOM. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 Discussion 
 of relative       *    Where appropriate a statement of the relative             *    The Ore Reserve has been completed to feasibility 
 accuracy/              accuracy and confidence level in the Ore Reserve               standard with the data being generated from a tightly 
 confidence             estimate using an approach or procedure deemed                 spaced drilling grid, thus confidence in the 
                        appropriate by the Competent Person. For example, the          resultant figures is considered high. 
                        application of statistical or geostatistical 
                        procedures to quantify the relative accuracy of the 
                        reserve within stated confidence limits, or, if such      *    Extraction of ore from the Gadir underground mine 
                        an approach is not deemed appropriate, a qualitative           will continue. 
                        discussion of the factors which could affect the 
                        relative accuracy and confidence of the estimate. 
                                                                                  *    Mining costs and haulage costs will be as per the 
                                                                                       current contracts in place being utilised at Gadir 
                   *    The statement should specify whether it relates to             operation and other mines in the Contract Area. 
                        global or local estimates, and, if local, state the 
                        relevant tonnages, which should be relevant to 
                        technical and economic evaluation. Documentation          *    Project capital is well-managed, and certain 
                        should include assumptions made and the procedures             infrastructure facilities are already available 
                        used.                                                          within AIMC/AAM, thus minimising capital 
                                                                                       requirements. 
 
                   *    Accuracy and confidence discussions should extend to 
                        specific discussions of any applied Modifying Factors     *    The Modifying Factors for mining, processing, 
                        that may have a material impact on Ore Reserve                 metallurgical, infrastructure, economic, gold price, 
                        viability, or for which there are remaining areas of           legal, environmental, social and governmental factors 
                        uncertainty at the current study stage.                        as referenced above have been applied to the 
                                                                                       underground mine design. 
 
                   *    It is recognised that this may not be possible or 
                        appropriate in all circumstances. These statements of     *    Ore Reserves calculation relates to a global scale 
                        relative accuracy and confidence of the estimate               and data reflects the global assumptions. 
                        should be compared with production data, where 
                        available. 
                                                                                  *    An appropriate level of consideration was given to 
                                                                                       all Modifying Factors, which were established from 
                                                                                       actual operation data from Gadir, to support the 
                                                                                       declaration and classification of Ore Reserves. 
 
 
                                                                                  *    No statistical or geostatistical procedures were 
                                                                                       carried out to quantify the accuracy of the Ore 
                                                                                       Reserve. Factors which could affect the relative 
                                                                                       accuracy and confidence of the estimate have been 
                                                                                       fully assessed as part of the modifying factor 
                                                                                       derivation. Geological variability between sample 
                                                                                       points, for example very high-grade narrow zones, may 
                                                                                       impact on the Reserve statement. 
 
 
                                                                                  *    It Is concluded that the Ore Reserve for the Gadir 
                                                                                       underground mine is 797 kt, with a contained Au 
                                                                                       content of 90 koz, 304koz of Ag and 1,387 t of Cu 
                                                                                       (see Table below). Note that due to rounding, numbers 
                                                                                       presented may not add up precisely to totals. 
 
 
                                                                                  *    Zn reserves were not reported as part of the Ore 
                                                                                       Reserves summary. 
 
                                                                                     ORE RESERVES      Tonnage      Gold        Silver         Copper 
                                                                                 -------------------                                       ------------- 
                                                                                                         kt      g/t    koz    g/t    koz    %       t 
                                                                                 -------------------  --------  -----  ----  ------  ----  -----  ------ 
                                                                                     Total Proved        222     2.81   25    14.13   101   0.24    535 
                                                                                                      --------  -----  ----  ------  ----  -----  ------ 
                                                                                    Total Probable       575     2.41   45    10.99   203   0.15    852 
                                                                                                      --------  -----  ----  ------  ----  -----  ------ 
                                                                                  Proved + Probable      797     2.73   70    11.86   304   0.17   1,387 
                                                                                                      --------  -----  ----  ------  ----  -----  ------ 
 
                                                                                  *    Mine production data are available and were utilised 
                                                                                       in assessing the relative accuracy of the ore types 
                                                                                       and grade in the Ore Reserves. The average process 
                                                                                       feed grades were understood in order to determine the 
                                                                                       process algorithm of the different ore type. Thus, 
                                                                                       there is a direct relationship between the known 
                                                                                       grades from production data and those of the Ore 
                                                                                       Reserve estimate. 
                 ------------------------------------------------------------  -------------------------------------------------------------------------- 
 

Section 5 Estimation and Reporting of Diamonds and Other Gemstones

(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in the 'Guidelines for the Reporting of Diamond Exploration Results' issued by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)

Estimation and Reporting of Diamonds and Other Gemstones is not applicable to this Statement of Resources

Appendix Two: Glossary of Terms and Abbreviations

The following definitions are extracted from the JORC Code, 2012 Edition

 
 Cut-off grade          The lowest grade, or quality, of mineralised 
                         material that qualifies as economically 
                         mineable and available in a given deposit. 
                         May be defined on the basis of economic 
                         evaluation, or on physical or chemical 
                         attributes that define an acceptable product 
                         specification. 
 Indicated Mineral      An 'Indicated Mineral Resource' is that 
  Resource               part of a Mineral Resource for which quantity, 
                         grade (or quality), densities, shape and 
                         physical characteristics are estimated 
                         with sufficient confidence to allow the 
                         application of Modifying Factors in sufficient 
                         detail to support mine planning and evaluation 
                         of the economic viability of the deposit. 
                         Geological evidence is derived from adequately 
                         detailed and reliable exploration, sampling 
                         and testing gathered through appropriate 
                         techniques from locations such as outcrops, 
                         trenches, pits, workings and drill holes, 
                         and is sufficient to assume geological 
                         and grade (or quality) continuity between 
                         points of observation where data and samples 
                         are gathered. An Indicated Mineral Resource 
                         has a lower level of confidence than that 
                         applying to a Measured Mineral Resource 
                         and may only be converted to a Probable 
                         Ore Reserve. 
                       -------------------------------------------------- 
 Inferred Mineral       An 'Inferred Mineral Resource' is that 
  Resource               part of a Mineral Resource for which quantity 
                         and grade (or quality) are estimated on 
                         the basis of limited geological evidence 
                         and sampling. Geological evidence is sufficient 
                         to imply but not verify geological and 
                         grade (or quality) continuity. It is based 
                         on exploration, sampling and testing information 
                         gathered through appropriate techniques 
                         from locations such as outcrops, trenches, 
                         pits, workings and drill holes. An Inferred 
                         Mineral Resource has a lower level of confidence 
                         than that applying to an Indicated Mineral 
                         Resource and must not be converted to an 
                         Ore Reserve. It is reasonably expected 
                         that the majority of Inferred Mineral Resources 
                         could be upgraded to Indicated Mineral 
                         Resources with continued exploration. 
                       -------------------------------------------------- 
 JORC                   JORC stands for Australasian Joint Ore 
                         Reserves Committee (JORC). The Code for 
                         Reporting of Exploration Results, Mineral 
                         Resources and Ore Reserves (the JORC Code) 
                         is widely accepted as the definitive standard 
                         for the reporting of a company's resources 
                         and reserves. The latest JORC Code is the 
                         2012 Edition. 
                       -------------------------------------------------- 
 Measured Mineral       A 'Measured Mineral Resource' is that part 
  Resource               of a Mineral Resource for which quantity, 
                         grade (or quality), densities, shape, and 
                         physical characteristics are estimated 
                         with confidence sufficient to allow the 
                         application of Modifying Factors to support 
                         detailed mine planning and final evaluation 
                         of the economic viability of the deposit. 
                         Geological evidence is derived from detailed 
                         and reliable exploration, sampling and 
                         testing gathered through appropriate techniques 
                         from locations such as outcrops, trenches, 
                         pits, workings and drill holes, and is 
                         sufficient to confirm geological and grade 
                         (or quality) continuity between points 
                         of observation where data and samples are 
                         gathered. A Measured Mineral Resource has 
                         a higher level of confidence than that 
                         applying to either an Indicated Mineral 
                         Resource or an Inferred Mineral Resource. 
                         It may be converted to a Proved Ore Reserve 
                         or under certain circumstances to a Probable 
                         Ore Reserve 
                       -------------------------------------------------- 
 Mineral Reserves       An 'Ore Reserve' is the economically mineable 
  or Ore Reserves        part of a Measured and/or Indicated Mineral 
                         Resource. It includes diluting materials 
                         and allowances for losses, which may occur 
                         when the material is mined or extracted 
                         and is defined by studies at Pre-Feasibility 
                         or Feasibility level as appropriate that 
                         include application of Modifying Factors. 
                         Such studies demonstrate that, at the time 
                         of reporting, extraction could reasonably 
                         be justified. 
                       -------------------------------------------------- 
 Mineral Resource       A 'Mineral Resource' is a concentration 
                         or occurrence of solid material of economic 
                         interest in or on the Earth's crust in 
                         such form, grade (or quality), and quantity 
                         that there are reasonable prospects for 
                         eventual economic extraction. The location, 
                         quantity, grade (or quality), continuity 
                         and other geological characteristics of 
                         a Mineral Resource are known, estimated 
                         or interpreted from specific geological 
                         evidence and knowledge, including sampling. 
                         Mineral Resources are sub-divided, in order 
                         of increasing geological confidence, into 
                         Inferred, Indicated and Measured categories. 
                       -------------------------------------------------- 
 Modifying Factors      'Modifying Factors' are considerations 
                         used to convert Mineral Resources to Ore 
                         Reserves. These include, but are not restricted 
                         to, mining, processing, metallurgical, 
                         infrastructure, economic, marketing, legal, 
                         environmental, social and governmental 
                         factors. 
                       -------------------------------------------------- 
 Probable Ore Reserve   A 'Probable Ore Reserve' is the economically 
                         mineable part of an Indicated, and in some 
                         circumstances, a Measured Mineral Resource. 
                         The confidence in the Modifying Factors 
                         applying to a Probable Ore Reserve is lower 
                         than that applying to a Proved Ore Reserve. 
                       -------------------------------------------------- 
 Proved Ore Reserve     A 'Proved Ore Reserve' is the economically 
                         mineable part of a Measured Mineral Resource. 
                         A Proved Ore Reserve implies a high degree 
                         of confidence in the Modifying Factors. 
                       -------------------------------------------------- 
 
 
 Abbreviation   Definition of term 
-------------  -------------------- 
 Ag             Chemical symbol for 
                 silver 
               -------------------- 
 Au             Chemical symbol for 
                 gold 
               -------------------- 
 Cu             Chemical symbol for 
                 copper 
               -------------------- 
 g/t            Gramme per tonne 
               -------------------- 
 M              Meters 
               -------------------- 
 Oz             Ounces 
               -------------------- 
 t              Tonnes 
               -------------------- 
 Zn             Chemical symbol for 
                 zinc 
               -------------------- 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

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