Boungou Project

An exploration budget of $9 million has been established to explore the Tapoa Permit Group, which consists of four contiguous permits - Boungou, Dangou, Pambourou and Bossoari- along the Diapaga belt in Burkina Faso. Following completion of a delineation drilling in the first quarter, the 2018 exploration program targeted two areas: Tawori and Dangou.

Boungou Proximal

Prior to the rainy season break, a total of 66 RC holes (6,949 meters) was drilled in the third quarter, most of which consisted of follow-up drilling on the Osaanpalo Zone at Tawori. The Osaanpalo Zone is a shallow west-dipping structure located four kilometers north of the Boungou Mine. Significant gold values had been obtained within the structure earlier in the year that showed a north-trending orientation of mineralization.

In the third quarter, significant mineralization was obtained along the flat-lying shear zone including 17.63 g/t Au over 1 meter (TPA1484), 1.88 g/t Au over 5 meters (TPA1488), and 1.77 g/t Au over 3 meters (TPA1501). The zone remains open down dip and to the south. Follow-up drilling will be assessed following receipt of pending results and their compilation.

Figure 1 - RC Drill Results Outlining Osaanpalo Zone on Boungou Proximal

Boungou Regional

In early October, following the rainy season, exploration resumed on the Dangou permit located approximately 30 kilometers east-northeast of the Boungou Mine. Significant mineralization was obtained in the second quarter of 2018 on the permit following realization of a program of 88 RC holes and two core holes (10,561 meters) across the most promising anomalies (Figure 2).

Figure 2 - Q2 2018 Drill Results Outlining Baali Zone on Boungou Regional