EL LIMON PROJECT TECHNICAL REPORT Zaragoza, Antioquia...

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EL LIMON PROJECT TECHNICAL REPORT Zaragoza, Antioquia, Colombia TECHNICAL REPORT PURSUANT TO NATIONAL INSTRUMENT 43-101 OF THE CANADIAN SECURITIES ADMINISTRATORS Prepared For PARA RESOURCES INC. Prepared By: David Bikerman, EM, MS, MAIG Bikerman Engineering & Technology Associates, Inc. 200 Central Park South 3Q, New York, New York, 10019, U.S.A. September 15, 2015

Transcript of EL LIMON PROJECT TECHNICAL REPORT Zaragoza, Antioquia...

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EL LIMON PROJECT

TECHNICAL REPORT

Zaragoza, Antioquia, Colombia

TECHNICAL REPORT

PURSUANT TO NATIONAL INSTRUMENT 43-101

OF THE CANADIAN SECURITIES ADMINISTRATORS

Prepared For

PARA RESOURCES INC.

Prepared By:

David Bikerman, EM, MS, MAIG

Bikerman Engineering & Technology Associates, Inc.

200 Central Park South 3Q, New York, New York, 10019, U.S.A.

September 15, 2015

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CERTIFICATE OF QUALIFIED PERSONS

I, David Bikerman, M.S., Engineer of Mines do hereby certify that:

1. I reside at 200 Central Park South, New York, NY 10019, U.S.A. I have been gainfully employed since 1978 in the field of mining and since 1981, as a Mining Engineer. I am currently a principal in the firm of Bikerman Engineering & Technology Associates, Inc. located at 200 Central Park South 3Q, New York, New York, 10019, U.S.A;

2. This certificate applies to a technical report entitled “El Limon Project, Technical Report” prepared for Para Resources Inc.("Para") by Bikerman Engineering & Technology Associates, Inc. dated September 15, 2015;

3. I am a graduate of the Henry Krumb School of Mines and Columbia University in the City of New York, NY, with the degree of Engineer of Mines in 1995, and the degree of Master of Science in Mining Engineering in 1985. I am a graduate of the University of Pittsburgh, Pittsburgh, PA, with a degree of Bachelors of Science in Mining Engineering in 1981. I have over 20 years of experience in gold, silver and copper exploration and mineral estimation, and have relevant experience in the Western USA and numerous other locations throughout the Americas. I am registered Member # 3588 of the Australian Institute of Geoscientists (MAIG). I am a qualified person for the purposes of National Instrument 43-101 ("NI 43-101"). I have read the definition of "qualified person" set out in National Instrument 43-101 and certify that by reason of my education, affiliation with professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101;

4. My most recent personal inspection of the property referred to in the Technical Report was July 26-28, 2015;

5. I am responsible for all items in the Technical Report;

6. I am an independent qualified person of the property and Para Resources Inc.as described in section 1.5 of NI 43-101;

7. I have limited prior involvement with the project as a mining professional employed by Greenstone Resources Ltd. from 1994-1996. I have performed independent consulting work for CML and FPM on the ElLimon mine over the past year.

8. I have not received interest, direct or indirect, in the El Limon Property nor do I have any beneficial interest, direct or indirect, in the securities of Nicaragua Milling Company Limited, or any parents or subsidiaries of Para;

9. I have read NI 43-101 and the Technical Report and to the best of my knowledge and belief the Technical Report has been prepared in compliance with NI 43-101; and

10. As of the date of the certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

DATED the 15th day of September, 2015.

NAME: DAVID BIKERMAN

"David Bikerman"

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TABLE OF CONTENTS

Title Page 1

Date and Signature Page 2

Table of Contents 3

List of Figures and Tables 5

Item 1: Summary ………………………………………………………………………. 7

Item 2: Introduction ……………………………………………………………………. 13

Item 3: Reliance on Other Experts ……………………………………………………... 14

Item 4: Property Description and Location …………………………………………….. 16

Item 5: Accessibility, Climate, Local Resources, Infrastructure and Physiography …... 25

Item 6: History ………………………………………………………………………….. 29

Item 7: Geological Setting and Mineralization ………………………………………… 37

Item 8: Deposit Types ………………………………………………………………….. 45

Item 9: Exploration …………………………………………………………………….. 47

Item 10: Drilling …………………………………………………………………………. 48

Item 11: Sample Preparation, Analyses and Security …………………………………… 55

Item 12: Data Verification ………………………………………………………………. 56

Item 13: Mineral Processing and Metallurgical Testing ………………………………… 57

Item 14: Mineral Resource Estimates ……………………………..…………………….. 61

Item 15: Mineral Reserve Estimates ……………………………………………………… 62

Item 16: Mining Methods ………………………………………………………………… 63

Item 17: Recovery Methods ……………………………………………………………… 74

Item 18: Project Infrastructure ……………………………………………………………. 80

Item 19: Market Studies and Contracts …………………………………………………… 81

Item 20: Environmental Studies, Permitting and Social or Community Impact …………. 82

Item 21: Capital and Operating Costs …………………………………………………….. 85

Item 22: Economic Analysis………………………………………………………………. 92

Item 23: Adjacent Properties…………….………………………..…………………….... 93

Item 24: Other Relevant Data and Information ………………………………………….. 97

Item 25: Interpretation and Conclusions ………………………………………………… 98

Item 26: Recommendations ……………………………………………………………… 99

Item 27: References ……………………………………………………………………… 100

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LIST OF APPENDICES

Appendix A: Mining Registry Certificates RPP No12011…………………………………… 102

Appendix B: Mining Registry Certificates Exploration Concession No 620………………… 113

Appendix C: FPM Certificate of Existence and Legal Representative – Bogota ..…………... 115

Appendix D: FPM Certificate of Existence and Representation - Medellin …..……………… 120

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LIST OF FIGURES AND TABLES

Figure 1.1: Generalized Location Map………………………………………………………. 7

Figure 1.2: El Limon Mine Concession Location Map…………………………….………. 8

Figure 1.3 Geologic Map of the Region……………………………………………………. 10

Table 2.1 List of Sources of Information and Data………………………………….……. 13

Figure 4.1 General Location of El Limon Mine – Antioquia, Colombia……………….… 15

Figure 4.2 Land Tenements - El Limon – Concession No 620 and RPP 12011 ….………… 16

Figure 4.3 Satellite View of El Limon Property Area………………………………………. 16

Figure 4.4 El Limon Concession Map………………………………………………………. 17

Table 4.1 Coordinates of RPP12011 as recorded by Mining Agency………...……………. 18

Table 4.2 Description of Exploitation Concession RPP No12011………...………………. 19

Table 4.3 Description of Exploration Concession No 620………...………………………. 19

Figure 4.5 El Limon Concessions with Topography…………………………………..……. 20

Table 5.1 Average Monthly Temperature………………………………………………….. 25

Table 5.2 Precipitation……………………………………….…………………………….. 26

Table 5.3 Population distribution by age…………………………………………………... 27

Figure 5.1 Map of Surface Installations – El Limon Mine…………………………………. 28

Table 6.1 General History of El Limon Mine…..........................…………………………. 29

Table 6.2 Tonnes Crushed 1990-2000……………………..……………………………… 30

Table 6.3 El Limon Historical Production 1990-1997……………………..…………….. 30

Table 6.4 General History El Limon Mine 2000-2011…………………………………... 30

Figure 6.1 Graph of Gold Sold (oz) – El Limon Mine 2012-2014…………………………. 31

Table 6.5 Gold Sales by Quarter – FY 2014…………………………….……………….... 31

Table 6.6 Four Points Mining Gold Production Detail 2013-2014……………………….. 32

Table 6.7 Four Points Mining Gold Production Detail 2014-2015……………………….. 33

Table 6.8 2012 Estimation of Minable Reserves (non 43-101) ………………………..…. 34

Figure 6.2 Dec 2012 Reserves Zone 1 North………………………………………………. 35

Figure 6.3 Dec 2012 Reserves Zone 2 South ………………………………………….…… 35

Figure 6.4 Dec 2012 Reserves Zone 3 Level 6……………………………………………… 36

Figure 7.1 Regional Geologic Map…………………………………………………..…….. 37

Figure 7.2 Regional Gold Occurrences……………………………………………………. . 38

Figure 7.3 Geologic Map of the Region (INGEOMINAS) ……………………………….. 39

Figure 7.4 Geologic Map and Cross Section Through El Limon Mine……………………. 41

Figure 8.1 Schematic Geologic Setting ………………….……………………………….. 46

Table 9.1 Independent Samples Taken by Para…………………………………….……. 47

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Table 9.2 Assay Results from Independent Samples Taken by Para……………………. 47

Table 10-1 Drill holes locations - drilled from Level 8 to define the presence of sector 5 … 48

Figure 10.2 View of the intercept of FPM-PZ-03……………………………………………. 50

Figure 10.3 Plan view of the intercept of MPF-PZ-03………………………………..……. 50

Figure 10.4 Cross Section Views of El Limon Mine………………………………………. 51

Table 13.1 Equipment in Mill Plant – May 2015………………………………………….. 60

Figure 16.1 Underground Workings at El Limon Mine……………………………………. 63

Figure 16.2 Portal Entrance, El Limon Mine…………………………………….…………. 64

Figure 16.3 Drilling Schematic………………………………………………………..……. 64

Figure 16.4 Room and Pillar Extraction Method……………………………………………. 65

Figure 16.5 Typical Room and Pillar Mine – Room Development…………………………. 66

Figure 16.6 Channel Samples taken July 2011 by Four Points………………………………. 68

Figure 16.7 Channel Samples taken January 2012 by Four Points…………………………... 69

Figure 16.8 Channel Samples, Level 7 North…………………………………………..……. 69

Figure 16.9 Gold Isovalue Map of Channel Samples, Level 7 North………………..………. 70

Figure 16.10 Channel Samples, Level 7 South…………………………………………..……. 71

Figure 16.11 Gold Isovalue Map, Channel Samples, Level 7 South…………………………. 72

Figure 17.1 Conceptual Flowsheet – El Limon Mine………………………………………. 75

Table 17.1 Mill Renovation Work Schedule………………………………………………. 76

Figure 17.2 Flow Diagram of Crushing and Process Plant – MFP - 2014…………………. 78

Table 17.2 List of Laboratory Equipment…………………………………………………. 79

Figure 20.1 Piezometer Location Diagram……………………………………………….…. 82

Figure 20.2 Reforestation at El Limon………………………………………………………. 83

Figure 20.3 El Limon Mine Topography with Piezometer Locations………………………. 84

Figure 20.4 Tailings to be Relocated - El Limon Mine……………………………………… 84

Table 21.1 Capital Cost Summary …………………………………………………………. 85

Table 21.2 Mine Operating Cost Estimates...………………………………………………. 86

Table 21.3 Mill Operating Cost Estimates...……………………….………………………. 87

Table 21.4 Summary - Mine Development Schedule and Cost……………………………. 89

Table 21.5 Detail - Mine Development Schedule and Cost…………………….…………. 90

Figure 23.1 Mines in the Vicinity of El Limon…………………………………………..…. 94

Figure 23.2 Structural Map Showing Veins in Zaragoza – Segovia Trend………………… 95

Figure 23.3 Structural Map of Adjacent Properties…………………………………………. 96

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1.0 SUMMARY

Bikerman Engineering & Technology Associates, Inc. (BETA) was contracted by Para Resources Inc.(“Para”) to produce an independent evaluation of the merit of the El Limon Property located in Zaragoza, Antioquia, Colombia. This report presents the results of the work, BETA’s recommendations, as well as the methodology and assumptions utilized to perform the work.

This technical report “El Limon Project, Technical Report”, dated September 15, 2015, was prepared for Para for purposes related to its acquisition of interest in the project. This report is updated based upon a technical report of the same name for the El Limon project prepared by BETA on August 10, 2014 for Nicaragua Milling Company Limited.

Work presented by BETA in this report was performed by: David Bikerman, M.S., Engineer of Mines,MAIG; and Hector Vargas, PhD, Professional Geologist. David Bikerman, the Qualified Person for this report, conducted his most recent site visit on July 26-28, 2015. Hector Vargas’s site visit was conducted June 9-13, 2014.

1.1 LOCATION

The El Limon Property is located in Zaragoza, Antioquia, Colombia, The project is located in north-central Colombia, in the most northern part of the Colombian Central Cordillera, approximately 100 miles northeast of Medellin and 200 miles northwest of Bogota, by air. By road, the mine is 165 miles northeast of Medellin and 345 miles northwest of Bogota.

Figure 1.1 Generalized Location Map

The El Limon claims cover a total area of approximately 321 hectares, including 129.6 hectares in RPP No 12011 and 191.1 hectares in the Concession contract #620 which is located west of the currently exploitedzone. BETA notes that one block (referred to as Area 3 in Figure 1.2) of 43.2 hectares within RPP No12011 was transferred to FPM in 2011 according to acquisition documents but is not currently listed in the Registry of Mines. FPM attorneys state that this would appear to be a clerical error and are further investigating. All environmental studies have been performed and licensed granted over the greater area.

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Bikerman Engineering & Technology Associates, Inc. August 31, 2015 Page 8

Figure 1.2El Limon Mine Concession Location Map

1.2 DESCRIPTION OF THE TRANSACTION

Colombia Milling Limited (“CML”), a Belize company, was created to purchase an indirect 61.202% interest in Four Points Mining SAS (“FPM”), a Colombian company that owns 100% of the El Limon gold mine in Colombia. CML was formed on February 16th, 2015. The purchase of the 61.202% interest was done under two separate agreements. The remaining 38.798% of FPM is owned by Minera FF SA (“MFF”), represented by Felipe Florez V. of Medellin, Colombia.

The first agreement was between CML and Surgir Holdings S.A., a Panamanian company, for the purchase of 100% of the shares of GD Resources S.A. (“GDR”), a Panamanian company that owns 11.2% or 5,600 shares of FPM. The only asset of GDR are the shares of FPM and it has no liabilities. The terms of the agreement are: US$20,000 was paid as a deposit; a further US$116,000 was paid at closing on April 16, 2015; a further US$100,000 is due on October 16, 2015, and a final payment of US$84,000 on January 18, 2016 for a total consideration of US$320,000. The shares of GDR are held in escrow by Colombian counsel until the final payment is made.

The second agreement dated April 13th, 2015 was between CML and Red Rock Resources plc (RRR), a UK public company, for the purchase of 100% of the shares of American Gold Mines Limited (“AGM”), a Cayman company that owns 50.002% of the shares of FPM. The only asset of AGM are the shares of FPM and it has no liabilities. The terms of the deal are: US$100,000 was paid as a deposit; a further US$450,000 was paid to effect closing on May 13th 2015; a further US$225,000 is due 9 months after closing and a final payment of US$225,000 is due 15 months after closing. Also, a US$1 million promissory note was issued by CML to RRR payable in 3 years carrying a 5% interest rate payable in arrears and secured with the shares of AGM. A 3% NSR was granted beginning the earlier of 9 months after the closing date or when production of at least 100 tpd are achieved for 30 consecutive days. This royalty is capped at US$2 million and is only paid on ore from existing FPM concessions. A second

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royalty of 0.5% was granted following the payment in full of the first royalty. This royalty is capped at US$1 million and is only paid on ore from existing FPM concessions.

In addition to the shares of FPM, CML will acquire a shareholder loan in the amount of USD$2,250,000that RRR made to FPM.

CML and MFF agreed to a minimum investment of US$2,000,000 into FPM. It was agreed that the first US$1million invested by CML would not dilute MFF’s position in FPM. Thereafter MFF can invest proportionally with CML and thereby avoid dilution from further investment by CML Should MFF not invest, each dollar invested by CML above US$1 million would result in MFF being diluted based on an initial valuation of US$6 million for 100% of FPM.

CML has commitments from three parties to each invest US$1 million for a total of US$3 million for the purchase the shares of FPM and for mine/mill repairs of El Limon. The three parties are James R. Martin (“Martin”) as an individual; Para, a Canadian public company represented by Geoff Hampton; and SAEF Exploration, Inc. (“SAEF”), a private Florida company represented by Alejandro Ochoa of Miami Florida.These parties entered into a shareholder’s agreement with CML dated May 15, 2015 that calls for one share of CML to be issued for each US$1,000 invested (the “Shareholders’ Agreement”). Pursuant to the Shareholders’ Agreement, Para, Martin and SEAF are each required to contribute an aggregate total of US$1,000,000 in consideration of respective 1/3 interests in CML. Para’s payments will be comprised of one payment of US$400,000 (paid) and six contributions of US$100,000 no later than the first day of each of the months commencing July 1, 2015 (paid) to December 1, 2015, inclusive.

When fully funded, pursuant to the Shareholders’ Agreement and subject to the completion of conditions of closing and approval of the TSX Venture Exchange, Para will indirectly control between 33.3% and 45% of CML which currently owns 61.202% of the El Limon Property. Note: CML’s percentage ownership of the El Limon project may increase due to dilution of other shareholders of FPM, as described above.

BETA has verified the existence and good standing of Four Points Mining S.A.S.:with the Colombian National Mining Agency; supporting documentation is included herein as Appendix C and D . BETA also reviewed a legal opinion supporting the good standing of FPM by attorneys Norton Rose Fulbright Colombia S.A.S. dated May 22, 2015.

1.3 GEOLOGY AND MINERALIZATION

In the area there are two zones of metamorphic rocks, one of feldespathic-aluminic gneisses and the other associated to the Cajamarca Complex rocks. There are also granitic bodies associated to Cretaceous magmatism.

Gneisses and schists occur in bundles which are elongated in an N-S course; they cover the entire area andthey are intruded into the NW by a stock of granodioritic composition and small dikes of porphyry andesitic composition.

The area features Quaternary deposits; the largest ones are located on the creeks called Juan Vara, Sardina and Culebra.

The main structure present in the area is the Otu Fault that crosses the area from North to South, the control over the Juan Vara creek is relevant.

The known vein systems of the region extend up to 2-3 km in length with plunging high-grade ore shoots central to the vein and surrounded by a lower grade halo. Vein dips are typically around 30-40°, and occasionally sub-vertical.

The mineralization of El Limon mine is embedded in the quartz-feldespathic gneisses. The gold occurs in a milky quartz vein, to the west of Otu Fault, its approximate course is N10E/40W, with average thickness of

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0.40 m. These features are very consistent in an extension of almost 400m on the course and 350m in the dip direction.

Figure 1.3Geologic Map of the Region (INGEOMINAS)

Typical production grades of the region range 8-12 g/t Au diluted. However, higher-grade mines also exist, such as Quintana and El Limon mines at 15-20 g/t Au diluted. Vein widths are typically below 1m, although both the hanging wall and footwall zones can contain appreciable economic mineralization within the high-grade cores.

Structure is continuous, except for a series of reverse faults, with displacements ranging from 0.2 up to 40and 60 meters, of which the main ones are El Limon and Leonel Faults, and to the north the 5N and the Victoria faults.

Gold mineralization is related to sulphide contents, mainly pyrite, with smaller amounts of galena, sphalerite and tetrahedrite, usually occurring as clear strips with a thickness ranging from 2 to 5 mm, andthey comprise from 7% to 12% in volume. Occasionally the strip structure is replaced by distributions of sulfides which are more irregular or uneven.

Pyrite is the first most common and abundant ore, present in the form of aggregates of anhedral and subhedral crystals.Tetrahedrite is the second most abundant ore; usually it occurs in anhedral crystals. Gold is the most important metal; it appears in the form of grains in native state or electrum, normally encapsulated with galena and in the form of inclusions in pyrite crystals, but not always. The particle size is distributed in ranges from 1 to 120 microns, occasionally above 200 microns.

Gold – silver ratio is 1:1.2; the mineralization is normally contained within quartz veins, it is very rare to find quantities of gold directly in the host rock. The tenor of gold appears to relate to the quantity of sulphides, preferably related to the presence of sphalerite and galena.

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1.4 EXPLORATION CONCEPT AND STATUS

Underground development at the El Limon mine has continued nearly continuously for over 60 years. The mine has been developed by room and pillar method on the upper levels, as the inclination of the vein has not been sufficient to allow for stoping. The vein dip has increased with depth, allowing stoping activities.The El Limon vein has been developed on 8 levels; production over the past 15 years has been from levels 5, 6, 7 and 8.

Underground workings are accessed via the mine portal (at level 0). Track extends from the mine mouth to an incline drift (shaft), located about 150 meters south of the portal. This primary incline drift is 325 meters long at 50° dip, measuring 3m x 3m, and extends down from level 0 (portal level) to level 6. A second incline shaft, located on level 6 about 300 meters north of the bottom of the primary incline, is utilized to access levels 7 and 8.

Three stopes are currently under development for selective mining (resuing) to minimize dilution.

A ventilation raise is being renovated to allow for better air flow at the mining faces.

1.5 MINERAL PROCESSING

FPM has recently initiated an upgrade and renovation of the crushing plant and mill circuit at El Limon.

The existing mineral process at El Limon consists of two-stage crushing, milling, gravity separation, flotation, cyanidation, merill-crowe precipitation and smelting. Amalgamation in small ball mills (cocos) has historically been performed as well. The final product sold by FPM is gold/silver doré.

CML has operation control over the upgrades and renovation of the mineral processing facilities on behalf of FPM. The planned upgrades include installation of equipment required to increase mill throughput to 200 tpd. The proposed mineral process has not changed. Amalgamation is eliminated.

A 2-stage crushing plant is operational on site. The crushing plant historically operated one shift per day, recently at 10-12 tonnes per hour but with capacity of 20 tonnes per hour, providing sufficient crushed ore to feed the mill. The crushing plant consists of a jaw crusher, cone crusher, vibrating screen and associated belts and bins. A nominal 3/4” product is supplied to the mill. This crushing plant will be renovated and upgraded to allow a smaller (-1/2”) nominal feed to the mill.

The existing mill is housed in a dedicated building. The 5’ x 10’ ball mill was originally a bar mill that was retrofitted for balls. Rubber liners were installed in 2102. Ore is fed into the ball mill, from which the oversize is separated via trommel for regrinding and the undersize is fed to 12” duplex jigs. The material separated by the jigs contains the majority of the gold recovered by the mill. The product captured by the jig is concentrated on the Wiffley table, and then run through a small ball mill with mercury. Gold is then recovered by amalgamation. The pulp is collected in a pulp tank and pumped to a pair of hydrocyclones The coarse reject from the hydrocyclone recirculates into the ball mill, while the undersize goes to a conditioner tank in preparation for flotation. Flotation provides between 5-10% mass pull. The flotation concentrate is pumped to a thickener, from which it goes to a 3’ x 4’ regrind mill and into a concentrate tank from which it is pumped to a pair of hydrocyclones. The coarse reject is recirculated through the regrind mill, while the fines are sent to agitation tanks (5 batch tanks operating in parallel) for cyanidation. A Merrill Crowe precipitation circuit , which reportedly can handle 20 cubic meters of solution per day,recovers to gold from solution.

The mineral processing plant recovered approximately 80% of the gold contained. The renovated plant is expected to allow recoveries greater than 90%.

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1.6 CONCLUSIONS

The El Limon Project is a property of merit with a rich history of mining. The grade of gold ore that has been extracted over the years is very high, at over 20 grams per tonne. Recent grades mines are substantially lower, between 5-10 grams per tonne. This indicates that the known high grade zones have been substantially depleted. Additional exploration will be required to delineate future mine resources and reserves.

Mining operation can continue within the known confines of the El Limon vein for a limited number of years. Determining the location of the vein on the south side of the Leonel fault will add substantial upside to the project life.

The crushing plant and mill are in operational condition. The mill is operating in relatively poor condition and needs some upgrades to bring it to good condition. The proposed upgrades and renovations reviewed by BETA are substantial in scope and if completed should bring the mill to its full potential for gold recovery of +90%. The use of mercury for amalgamation on site should be terminated.

The Project has potential environmental liabilities due to underground mining activities, past and present,including:

Surface disturbance and degradation including deforestation. Waste rock and tailings from mining operations. Possible contamination of soil and water by mercury, cyanide, arsenic, acid drainage, heavy

metals and solids from mining operations.

These environmental liabilities have been addressed in the Environmental License and FPM is under obligation to mitigate the above by reforestation and transport of old tailings to an approved location. FPM is in compliance with the Environmental License. Additional work is mandated for monitoring of surface and ground water.

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2.0 INTRODUCTION

2.1 PURPOSE OF REPORT

Para Resources Inc.(“Para”) of Vancouver, B.C. commissioned Bikerman Engineering & Technology Associates, Inc. (BETA), of New York, New York to complete this independent Technical Report on the merit of the El Limon Property in accordance with industry standard practices and in compliance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves and Canadian National Instrument 43-101, for the purpose of submission to institutions or agencies in support of an acquisition transaction by Para.

This report, entitled El Limon Project, Technical Report, dated September 15, 2015, conforms to Form 43-101 requirements for technical reports. As of this writing, CML and Para have expressed the desire to commence rehabilitation activities for the project as described herein.

The Qualified Person (QP) responsible for the preparation of this report is Mr. David Bikerman. Hector Vargas, Professional Geologist, assisted on this report. Both are independent to Para under NI 43-101.

David Bikerman conducted his most recent site visit of the El Limon property on July 26-28 2015. Hector Vargas’s site visit was conducted June 9-13, 2014.

Para, CML and FPM supplied documentation which forms the basis of significant portions of this report. Over the past years, a number of individuals, companies and consulting firms have completed studies that have been reviewed by BETA and incorporated in part in this study.

2.2 TERMS OF REFERENCE

The terms of reference were to prepare a Technical Report as defined in Canadian Securities Administrators’ National Instrument 43-101, Standards of Disclosure for Mineral Projects, and in compliance with Form 43-101F1 (Technical Report) and Companion Policy 43-101CP.

2.3 SOURCES OF INFORMATION

A list of sources of information and data, with citations, is shown in Table 2.1 in addition to Section 19 References.

Table 2.1List of Sources of Information and Data

DOCUMENT TITLE, SOURCE, AUTHOR DATEPlan de Manejo Ambiental – El Limon, Mineras Four Points SA, Érica Yanet Monsalve Álvarez

August 2010

OTU Gold Project Colombia Investment Summary, OTU Gold Inc. March 2014Controles De Calidad QA – QC, Mineras Four Points SA October 2011Plan De Contingencia Para El Tratamiento Y Disposición De Los Vertimientos Resultantes Del Beneficio De La Mina El Limón, Propiedad De Minera Four Points S.A., En El Municipio De Zaragoza, Antioquia., Ecovías S.A., Jorge Aristizábal G

November 2011

Mina El Limon, Zaragoza Antioquia, Colombia, Reporte de Avance, Hector Vargas

June 2014

Geology of El Limon Mine, Mineras Four Points SAS, Geologist Cosme Ranier Mejia Espinal

September 2012

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3.0 RELIANCE ON OTHER EXPERTS

In compiling this report for the El Limon Property, BETA produced work of its own origin derived from the work of others.

After reasonable due diligence, BETA has accepted and incorporated portions of this work and associated reports, third party estimates and conclusions as part of the basis of this study as BETA deemed warranted. The data, maps, and other records on which these estimates are based have been, after careful review, accepted by BETA as true and accurate without independent verification.

BETA has assumed that Para, CML, FPM, and their third party consultants and engineers did not withhold from BETA any facts or information.

BETA has verified the existence and good standing of Four Points Mining S.A.S. with the Colombian National Mining Agency; supporting documentation is included herein as Appendix C and D. BETA also reviewed a legal opinion supporting the good standing of FPM by attorneys Norton Rose Fulbright Colombia S.A.S. dated May 22, 2015.

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4.0 PROPERTY LOCATION AND DESCRIPTION

4.1 PROPERTY LOCATION

The El Limon project is located in north-central Colombia, in the most northern part of the Colombian Central Cordillera, approximately 100 miles northeast of Medellin and 200 miles northwest of Bogota, byair. By road, the mine is 165 miles northeast of Medellin and 345 miles northwest of Bogota. The project is located in the northeast part of the Municipality of Zaragoza in the Deparment of Antioquia(shown in red in Fig. 4.1). The nearest population center to the project is the town of Zaragoza, six kilometers north of the project site (Fig. 4.2).

Bikerman Engineering & Technology Associates, Inc. August 2014

Figure 4.1 General Location of El Limon Mine –

Within Department of Antioquia, Colombia

El Limon Mine General Location Map

El Limon Mine

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4.2 PROPERTY DESCRIPTION

The El Limon claims historically covered a total area of approximately 321 hectares, including 129.6 hectares in RPP No 12011 and 191.1 hectares in the Concession contract #620 which is located west of the currently exploited zone. (see Figure 4.3) Both titles are located in the Municipality of Zaragoza, in the north of the Department of Antioquia.

Current documentation issued by the National Mining Agency (see Appendix A and B) indicates a totalproject area of 277.5 hectares comprised of 86.4 hectares RPP 12011 and 191.1 hectares in Concession #620. . FPM attorneys are investigating this discrepancy. The sales agreement between the vendor Bullet and FPM shows the transfer of 129.6 hectares in RPP12011.

BETA notes that, as recently as 2011, RPP 12011 was comprised of three areas, as shown in Figure 4.3 byFPM dated June 9 2014. In Figure 4.3, concession #620 is shown as area A, and RPP 12011 is shown as areas B, C and D. All environmental studies and licenses are based on these areas. Nevertheless, the current Certificate of Mining Registry from the National Mining Agency shows a total area of 86.4 hectares comprised of two areas that cover the zones of current mining activity. FPM attorneys are investigating this discrepancy. BETA notes that the all important areas for ongoing mining activities are covered by the 86.4 hectares shown in areas B and C.

Figure 4.2 Land Tenements - El Limon – Concession No 620 and RPP 12011 to the west

El Limon Mine, within RPP 12011, is located 6 kilometers (4 miles) from the suburban area of Zaragoza, to the west of the unpaved road that joints the towns of Zaragoza and Segovia, as shown in the aerial view below.

Bikerman Engineering & Technology Associates, Inc. August 2014Figure 4.3 Satellite View of El Limon Property Area

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Figure 4.4 El Limon Concession Map

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The mine portal is located at coodinates 913250 N and 1315550 E (1975 Bogota Coordinates) which equates to UTM coordinates of 823536 N and 515186 E.

The coordinates of the area included in RPP12011 are shown below in Table 4.1.

Table 4.1Coordinates of RPP12011 as recorded by Mining Agency

Note: Area 1 in the Table 4.1 corresponds to Area B in Figure 4.3; Area 2 corresponds to Area C; Area 3 corresponds to Area D.

The RPP12011 area granted by the Ministry of Mines and Energy totaled 129.6 hectares in 2011, divided into three areas as shown in Table 4.1 which combined correspond to RPP12011.

Historically, concession contract areas have been defined on a map with reference to a starting point (punto arcifinio) with distances and bearings, or map coordinates.

The following tables define the RPP12011:

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Table 4.2Description of Exploitation Concession RPP No12011

AREA 1:From To N/S Degree Min. Sec. E/W Meters CMSPA 1 S 16 0 0.0 E 1200 001 2 N 83 30 0.0 W 240 002 3 N 6 30 0.0 E 1800 003 4 S 83 30 0.0 E 240 004 1 S 6 30 0.0 W 1800 00

Area 2:From To N/S Degree Min. Sec. E/W Meters CMSPA 1 S 16 0 0.0 E 1200 001 2 S 6 30 0.0 W 1800 002 3 N 83 30 0.0 W 240 003 4 N 6 30 0.0 E 1800 004 1 S 83 29 59.99 E 240 00

Area 3:From To N/S Degree Min. Sec. E/W Meters CMSPA 1 S 16 0 0.0 E 1200 001 2 S 83 30 0.0 E 240 002 3 S 6 30 0.0 W 1800 003 4 N 83 30 0.0 W 240 004 1 N 6 30 0.0 E 1800 00

Coordinates of the base point:North: 1,317,360 m East: 912,900 m

In addition to the above, an area of 191.1 hectares in license No 620 belongs to the company; this license is in the exploration phase , but the company anticipates procedures to achieve exploitation status with the following boundaries:.

Table 4.3Description of Exploration Concession No 620

AREA 1:From To N/S Degree Min. Sec. E/W Meters0 (PA) 1 S 5 0 0.0 E 11381 2 S 6 30 0.0 W 18002 3 S 83 28 4.8 E 4773 4 S 11 12 36 W 2084 5 N 85 0 0.0 W 10005 6 S 77 7 4.3 . W 2676 7 0 0 0.0 W 2007 8 N 0 0 0.0 22168 1 0 0 0.0 E 1000

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Figure 4.5El Limon Concessions with Topography

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4.2.1 APPLICABLE LEGAL FRAMEWORK

The exploitation of gold ore from the El Limon mine is subject to the mining and environmental standards set forth by the national government through its laws, decrees, resolutions etc. which are applicable as the mining guides and environmental terms of reference for the development of this activity.

Mining in Colombia is governed by the Mining Law 685 of 2001. It was modified by Mining Law 1382 of 9 February 2010 but this was annulled on 11 May 2011 and expired in 2013 after a two-year deadline to pass a new law lapsed, and Mining Law 685 of 2001 regained full force and effect. In addition, the new National Development Plan (Law 1450 of 2011) included some of the changes of the annulled Law 1382, specifically article 108 regarding the extension of exploration periods. In lieu of a new mining law, a series of decrees and resolutions were issued in 2013 to regulate mining as follows:

Decree 935 (9 May 2013) which regulates the free areas, proposal evaluation, estimation of economical investment and rejection of proposals.

Decree 943 (14 May 2013) which regulates the extensions for stages and concession contracts. Decree 1300 (21 June 2013) which defines how to support the execution of exploration works

using an estimate for economical investment; Resolution 428 (23 June 2013) which adopts the terms of reference, mining environmental

guidelines and the minimum exploration program as elements to evaluate the technical and economic contents of the proposal.

Resolution 551 (9 August 2013) regulates the remaining financial capacity.

All mineral resources belong to the state and can be explored and exploited by means of concession contracts granted by the state. The mining authority is the Ministry of Mines and Energy, and mining is regulated by the new National Mining Agency (Agencia Nacional Minería or ANM). There is a single type of concession contract covering exploration, construction and mining which is valid for 30 years and can be extended for another 30 years. Concession applications resumed on 2 July 2013 after a suspension since 3 February 2011 to clear a backlog of applications.

4.3 MINING AND ENVIRONMENTAL LEGISLATION

The Mining Law 685 of 2001 requires an annual Environmental-Mining Bond to be posted for each concession contract. Four Points has done this for the concession contract.

Exploration activities require an Environmental Management Plan (Plan de Manejo Ambiental or PMA), which has been approved for the concession contract.

At the end of the Exploration Phase an Environmental Impact Study (EIA) has to be presented if the concession is to proceed to the Construction Phase. This must be approved and an Environmental License issued before the Exploitation Phase can begin, subject to a PMA. In addition, exploitation requires a Permit for Springs, Forest Use Permit, Certificate of Vehicular Emissions, Emissions Permit, and River Course Occupation Permit.

The El Limon mine operates under Environmental License issued in Resolution #130PZ-1402-2703 dated February 27, 2014. MFP is in compliance with the requirements of the Environmental License. The most recent visit by Mining Agency officials was August 12, 2015. The mine has explosives permits and stores its explosives on site.

Under Colombian mining and environmental laws, companies are responsible for any environmental remediation and any other environmental liabilities based on actions or omissions occurring from and after the entry into force and effect of the relevant concession contract, even if such actions or omissions occurred at a time when a third party was the owner of the relevant mining title. However, companies are not responsible for any such remediation or liabilities based on actions or omissions occurring before the entry into force and effect of the relevant concession contract, from historical mining by previous owners

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and operators, or based on the actions or omissions of third parties who carry out activities outside of the mining title (such as illegal miners).

Law 685 of 2001 Mining Code, which regulates the legal relations of the State with the individuals in all its phases with respect to the handling of minerals that are found in soil or subsoil, either national property or private property.

According to the law of December 99 1993 title 8 which deals with the environmental license. Decree 2150 of 1995 which regulates the processing of the environmental license, April 1220 Decree 2005, determines the obligation to submit an environmental management plan

(EMP) for its evaluation and establishment. Resolution 18-1053 2001; Min Mines delegated tasks to Minercol Ltda. Resolution 18-1130 2001, except in the functions of Minercol Ltda. Resolution 18-1145 2001 regulates the functions of processing and celebration of concession

contracts governors and mayors. Resolution 18-4568 2001 modifies the Resolution 18-1145 2001 Resolution 18-1194 2001 exception in the functions delegated to the Governor of Antioquia

Department. Resolution 18-1320 2001 orders for the cancellation of the registration of the inputs into the

National Mining Registry. Resolution 18-1847 2001 Form for the legalization of mining operations without title registered in

the National Mining Registry. Resolution 0034 of 2001 proposal form Single Concession Contract. Decree 1335 of 1987, Security in underground mining: regulation of safety in the work of

underground mining. April 1220 Decree of 2005 Decree 500 of 2006 Law 21 of 1991. Approves the Convention 169 on indigenous and tribal peoples in independent

countries. Adopted by the ILO in 1989. Law 70 of 1993. Protection of the cultural identity and rights of the black communities in

Colombia. Decree 1745 of 1995. Land titling of black communities. Decree 1277 of 1996. Areas of campesino reserves. Law 2811 of 1974 Part XII. With respect to the resources in the landscape and its protection Decree 877 of 1976. Uses of the forest resource. Law 84 of 1989. Adopts the national statute for the protection of animals. Decree 2811 of 1974 part VII. The agricultural soil and the non-agricultural uses of the land. Law 388 of 1997, Art. 33. Territorial Management. Regulates the uses of the soil. Decree 2811 of 1974. Code of natural resources and the environment. Art. 33.192 , 193 noise

control in infrastructure works. Law 09 of 1979. National health Code Decree 02 of 1982. Regulates title I of the Act and the decree 09-79 2811-74. Art. 74 Prohibitions

and restrictions on the discharge of material particles, gases and vapors into the atmosphere. Art. 75 Prevention of air pollution.

Decree 948 of 1995. Standards for the protection and control of air quality. Resolution 8321 of 1983. Noise. Resolution 619 of 1997. Atmospheric emissions permits for stationary sources. Decree 2811 of 1974, book II part III. Art. 77 To 78 Classification of waters. Art. 80 To 85:

domain of the waters and channels. Art. 86 To 89: the right to use the water. Art.134 to 138: Pollution prevention and control. Art. 149: Groundwater. Art.155: Administration of waters. Decree 1449 of 1977. Provisions on conservation and protection of waters, forests, terrestrial and

aquatic flora. Decree 1541 of 1978. Inland Waters: Art. 44 To 53 characteristics of concessions, Art. 54 To 66,

Art. 87 To 97: Occupation of channels, Art. 104 To 106: Occupation of channels and permission

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of occupation of channels, Art. 211 To 219: Control of dumping, Art. 220 To 224: dumping by household and municipal use, Art. 226 To 230 Dumping for industrial use, Art. 231:

Decree 1594 of 1984. Rules of spills of liquid waste. Art. 37 To 50 quality criteria for water Decree 901 of 1997. Remuneration rates by dumping liquids point to bodies of water.

4.4 MINING RESTRICTIONS:

Colombia has two basic types of restriction over the mining process, those that disallow mining under any circumstances and those that require formal process to resolve:

Mining Disallowed: National parks/reserves (Does not impact El Limon concessions) Paramo law - Prohibits mining above 3,200m elevation (Does not impact El Limon concessions)

Require additional environmental submissions:

Forestry reserve (Law 2) Requires a formal study of the defined project area from the reserve(Does not impact El Limon concessions)

Indigenous communities - Requires formal Prior Consultation Process with the respective community (A community zone is located to the far east of the Zaragoza district. This zone does not impact upon the El Limon concessions)

Black communities - Requires formal Prior Consultation Process with the respective community(A community zone is located to west of the project, but does not impact El Limon concessions)

4.5 LEGAL ACCESS AND SURFACE RIGHTS

FPM has legal access and full surface rights to the 6.855 hectares within the fenced borders of the mine. These rights have been explicitly granted to FPM by court decree, and accordingly FPM is obligated to paya fee determined by the court to the owner for use of the land.

In Colombia, as in most of South America, mineral rights are independent from surface rights. The owner of the surface does not own the mineral rights, or vice versa. However, Colombian law provides to the owner of the mineral rights the right to use the surface associated with the mineral rights for the purposes of carrying out mining exploration and exploitation activities. Under applicable Colombian mining statutes, this includes the construction and installation of all works and services proper for exploration, construction, assembly, extraction, gathering and benefit of the mineral rights, as well as the right to exercise other easements. The owner of mineral rights has also the right to establish its own transportation system, and appropriate means for the access of persons and to load, transport and unload minerals and equipment related to the mining operations.

Applicable regulations contemplate that the owner of mining rights will negotiate with the surface rights owner for an easement or other agreement for the use of the surface. However, if those parties cannot reach agreement and the owner does not grant access to the land, the Colombian Mining Code, Law 685 of 2001, and the Code of Civil Procedure (Art 16, numeral 9 and Art 408, numeral 1) provide the mineral rights owner an expedited legal procedure to gain compulsory access. The Mining Law provides the mining servitudes and the possibility of expropriation of the surface, in case it is required, since the mining activity is considered to be in the public interest.

4.6 WATER RIGHTSExploration activities require a Surficial Water Concession if a natural resource is required to be used, especially for drilling. BETA confirmed that Surficial Water Permits granted for the project byCorantioquia are currently in good standing.

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4.7 SEISMICEl Limon lies in the low-intermediate risk zone (middle volcanic zone) for seismic hazard. Ingeominas (2011) mapping shows the El Limon project within an band of Aa acceleration values of 0.1 to 0.15 (Intermediate). Effective peak acceleration (“Aa) corresponds to horizontal accelerations of the earthquake design standards referred to in Colombian Earthquake Resistant Design and Construction (NSR-98) as a percentage of the acceleration of the Earth’s gravity (g=980 cm/s). The parameter Aa is used to determine seismic design loads required by the regulation of Earthquake Resistant Structures.

4.8 OTHER RISKSThe author is not aware of any other significant factors and risks, other than those described above, that may affect access, title, or the right or the ability to perform work on the property.

4.9 ROYALTIES

The property is subject to the following royalties:

A 4% royalty on gold and silver sales is paid to the government of Colombia.

A 0.4% royalty is paid to the state.

A 3% NSR was granted to RRR, beginning the earlier of 9 months after the closing date or when production of at least 100 tpd are achieved for 30 consecutive days. This royalty is capped at US$2 million and is only paid on ore from existing FPM concessions. A second royalty of 0.5% was granted to RRR following the payment in full of the first royalty. This second royalty is capped at US$1 million and is only paid on ore from existing FPM concessions.

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5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 ACCESSIBILITY

The El Limon Property is accessible by automobile via paved road from Medellin (4 hours) or by local scheduled flights from Medellin to El Bagre or Caucasia (Zaragoza district); and to Otú (Segovia district).Flights are 25--‐50 minutes, depending on the type of aircraft. BETA’s flight from Medellín-El Bagre took 40 minutes and then the overland route between El Bagre and El Limon took 90 minutes, passing by the municipal seat Zaragoza. Similarly there are flights from Medellín to Caucasia, two hours by road from the mine site.

A 4WD vehicle is recommended for access throughout the region. All roads North of Segovia (to Zaragoza) are unpaved and can often be in poor condition due to the high rainfall of the region. A central unpaved road accesses the Zaragoza district, commencing at the regional town of Caucasia, to the north, and running north‐south from Zaragoza through to Segovia. It was originally constructed for the transport of mining equipment to Frontino Gold Mines from the Nechi river at Zaragoza. Power supply lines also run alongside the main road. The Segovia‐Zaragoza road has been approved for upgrade to a paved road, with work scheduled to begin in 2015.

5.2 CLIMATE

The project is amenable to year-round operation. Temperatures range between 23‐33˚C, and the mine gets about 4.3 meters of rainfall per year.

The average monthly temperature (lowest and highest), are presented in table 5.1.

Table 5.1Average Monthly Temperature

TemperatureMonths Normal Warmest ColdestJanuary 28.5°C 32.7°C 23.5°C

February 28.7°C 32.9°C 23.6°C

March 28.5°C 32.6°C 23.7°C

April 28.0°C 31.9°C 23.4°C

May 27.8°C 32.0°C 23.3°C

June 27.9°C 32.0°C 23.2°C

July 28.2°C 32.6°C 23.1°C

August 28.0°C 32.4°C 23.0°C

September 27.7°C 31.8°C 22.7°C

October 27.1°C 31.0°C 22.6°C

November 27.3°C 31.1°C 23.0°C

December 27.9°C 31.9°C 23.4°CSource: Barrancabermeja weather station: 134 m.a.s.l., 129.0 km away from Zaragoza

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Precipitation data is presented in Table 5.2.

Table 5.2Precipitation and Data

Period of Record Monthly Climate Summary Source: worldweatheronline.com

5.3 LOCAL RESOURCES AND DEMOGRAPHICS

Population throughout the region is sparse outside of the principal towns and communities. Town populations reported in the last census in 2005 are given below:

El Bagre 59,836

Zaragoza 32,916

Segovia 42,000

Remedios 17,658

Population statistics published by the town of Zaragoza in 2011 are as follows:

Inhabitants Urban Zone: 15,366Inhabitants Rural Zone: 12,214Total Inhabitants: 27,580

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Table 5.3Population distribution by age

Age distribution

Age Ranges > 1 Year 1-4 5-14 15-44 45-59 > 60

Total Age 4,810 6,818 12,602 1,436 1,914

Percentage 0.00 17.44 24.72 45.69 5.21 6.94

Population Distribution by sex:Men: 13,770Women: 13,810

The literacy rate is 75.8% according to figures presented by the DANE census 2005. The ethnographic composition of the municipality is:

Mestizos & Whites (54.5%)Afro-Colombians (38.8%)Indigenous (6.7%)

5.4 PHYSIOGRAPHY

The Zaragoza district sits between 50 180 meters above sea level (“masl”), with the El Limon mine at 70 masl. The relief is rolling hills with valleys along drainage plains.

The Property area is blanketed with lowland evergreen broadleaf rainforest. Tall, broad leaved evergreens are the dominant tree type, forming a high, leafy canopy over the forest floor. The undergrowth is often restricted by the lack of sunlight at ground level, and generally consists of shade-tolerant shrubs, herbs, ferns, and small trees.

The area is highly forested with principal clearings made by illegal alluvial mining operations, logging, and cattle ranching. Across the district vegetation coverage is principally secondary forest with cattle ranching.

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Figure 5-1Map of Surface Installations – El Limon Mine

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6.0 HISTORY

The prior ownership and exploration history for the El Limon Property follow. Table 6.1: General History of El Limon Mine

1938 Nepomuceno Mira found the vein, called it El Limon, installed a mill, starting the exploitation on a small scale.

1940-1946 Sold to Otto Feckler who worked the oxidized zones through 19461947 Review by N.A. Timmons Corporation 1947-1953 H. von Staufen bought the mine, improved the mill and continued work until

forced to close in 1953, by lack of working capital.1958 Leased to the mining company Pacific Chocó S.A. , a subsidiary of South

American Gold and Platinum Company of New York. Furthered exploration through underground galleries and five diamond drill holes

1961 Reports indicate mineralization showing a grade of 39 grams of gold per tonne and a 1:1 gold:silver ratio

1962 Pacific Chocó S.A. gave up lease1963-1975 Operated by H. von Staufen until his death in 19751975 Grupo Minero Ltda. of Medellín and Oro Norte S.O.M. obtain authorization from

Ministry of Mines to exploit the deposit1986 Sold to Greenstone Resources Ltd of Canada who drilled a total of 1573 m from

October 1988 to February 1989. This drilling intersected the vein from level 2 up to 5, and demonstrated the persistence of the vein at depth.

1987 Greenstone protected the mining title via Reconocimiento de Propiedad Privada, (recognition of private property), MMP12, which was granted to the company by Resolution 2781 of 2 October 1987.

1988-89 The initial development of the underground mine was in 1988 and 1989 through a contract with Geominas Ltda. In September 1989 the decision was made byOronorte S. O. M to put the project into production. The company built a plant to process 100 tonnes per day, with production of gold concentrates of 500- 800 g/T Au, with equal quantity of silver content, and some Pb, Cu, and Zn, which was to be exported to Japan.

1990 After a 3-month delay due to social unrest, the mine was officially opened on November 11, 1990. Production rate was planned to be 30,000 tonnes per year, processing 17g/tonne gold ore with expected monthly production of 1,000-1,500 ounces.

1991 A trade union of workers was soon formed, causing a cessation of activity at the end of 1991. To resolve the conflict, the company helped create the “Cooperative Workers of Zaragoza Associated” or "Coomizar".

1992-1996 In April 1992, the mining company Oronorte S.A. contracted the exploitation of the mine with the cooperative Coomizar. The mine continued to operate through 1996 albeit with labor difficulties

1996 Fisher Watt Gold Inc. assumed control of the mining company Oronorte S. A. through an exchange of properties with Greenstone Resources Ltd. A cyanidation circuit was added, and gold production on site using amalgamation initiated. Production peaked in 1997. Based upon drilling results and underground development to mid-1997, an independent audit of the EL Limón resource byWatts, Griffis and McOuat, Lakewood, Colorado, indicated reserves of 156,674 t @ 15 g Au/t (+75,000 Oz Au). BETA has not reviewed this study and cannot comment regarding the key assumptions, parameters and methods used to prepare the historical estimate. This area was subsequently mined and therefore thehistorical estimate cannot be updated to include current mineral resources or mineral reserves. The issuer is not treating the historical estimate as current mineral resources or mineral reserves.

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Table 6.2 Tonnes Crushed 1990-2000YR TONS CRUSHED

1990 2,0401991 24,5671992 17,3021993 26,9611994 23,0111995 22,5631996 23,0881997 29,5471998 18,9181999 8,7812000 2,335

The production figures from various SEC filings are given below:Table 6.3

El Limon Historical Production 1990-1997

Table 6.4General History El Limon Mine 2000-2011

2000-2005 In 2000, Bullet Holding acquired Minera Oronorte SA and operated the mine until December 2005, the date on which the Superintendencia de Sociedades decreedthe compulsory winding-up of the Colombian company Oronorte S.A.

2007 In February of 2007, the Superintendencia de Sociedades auctioned off the assets of Oronorte S. A., among which were the mining titles. Continental Gold Ltda. acquired the mineral rights and part of the infrastructure that remained after the process.

2009 Mineras Four Points SAS acquires rights to Oronorte SA for $150,000,000(Colombian Pesos) on March 31, 2009 and resumes operations

2011 Reorganization of Mineras Four Points SAS. Red Rock purchases 25,001 shares of Mineras Four Points SA giving Red Rock 50.002% control of Four Points

Year Tonnes Milled

Gold Produced

(T. Oz)

Avg. Recovery

(%)

Grade (g/t)

Calendar 1990* 2,040 365 90% 6.19Calendar 1991 24,567 10,241 90% 14.41Calendar 1992 17,302 7,679 90% 15.34Calendar 1993 26,961 9,990 90% 12.80Calendar 1994 23,011 7,510 91% 11.10Calendar 1995 23,563 8,603 92% 12.89

FY H1 1996 12,224 3,562 10.30FY H2 1996 10,467 4,817 15.90FY H1 1997 11,904 5,735 17.50Total (6.5 years) 149,999 58,137Avg / year (6.5 years) 23,077 8,944 13.78Avg / month 1,923 745

*Two months' operation

El Limon Mine Historical Production

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HISTORICAL PRODUCTION

Figure 6.1Graph of Gold Sold (oz) – El Limon Mine 2012-2014

Four Points Mining SAS (50.002% owned by Red Rock) reported gold sales of 718 oz in the first quarter of 2014. This corresponds to sales over the same period last year (Q1 2013) of 363 oz, a 97.7% increase year on year. Q1 2014 sales of 718 oz fell from Q4 2013 figures of 909 oz, a decline of 21%, however in line with the two year quarterly average of 732 oz.

As of 31 March 2014 total gold sales for FY14 sat at 2,607 oz as compared to 1,723 oz at this point in FY13. The average realized gold price was $1,259/oz during the quarter.

Table 6.5Gold Sales by Quarter – FY 2014

FY 14 Month Gold (oz)

Q1Jul-13 343.36Aug-13 292.76Sep-13 343.99

Q2Oct-13 276.64Nov-13 226.57Dec-13 405.97

Q3Jan-14 230.12Feb-14 259.85Mar-14 228.14

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A detailed report of gold bars produced by the operation is shown in the following tables. This report indicates which bars were produced by amalgamation versus cyanidation.

Table 6.6Four Points Mining Gold Production Detail 2013-2014

Table 6.7Four Points Mining Gold Production Detail 2014-2015

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98060 A98060 B

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HISTORICAL RESERVE STATEMENTS – DECEMBER 2012

The most recent reserve statement produced by the mine showed 30,058 tonnes of ore grading 11.75 g/Tundiluted (10.1 g/T diluted), containing approximately 10,000 ounces of gold. Details of the estimation are presented in the following figures.

A significant portion of this historical reserve has been mined and as such the following is relevant only for historical information purposes.

BETA’s qualified person has not done sufficient work to classify this historical estimate as current mineral resources or mineral reserves; and the issuer is not treating the historical estimate as current mineral resources or mineral reserves.

The historical estimates were produced by polygonal estimation methods. There was no distinction or categorization as to proven or probable.

Additional exploration and development, or drilling, will be required in order to produce a current estimate of minable reserves.

Table 6.8 2012 Historical Estimation of Minable Reserves

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Figure 6.2

Figure 6.3

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Figure 6.4

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7.0 GEOLOGICAL SETTING AND MINERALIZATION

7.1 REGIONAL GEOLOGY

The project area features multiple rock types, with ages ranging from the Paleozoic to the Quaternary. Metamorphic rocks are those covering most of the area; igneous rocks are also found to the E and W and Quaternary deposits associated with the rivers that flow through the region.

Figure 7.1Regional Geologic Map

7.1.1. Paleozoic

Paleozoic units in the region are comprised of two packages of metamorphic rocks that cover most of the area: feldespathic-aluminic gneisses; and rocks of the Cajamarca Complex, which are distinguished by their degree of metamorphism.

7.1.1.1. Feldespathic-aluminic Gneisses

North-South elongated bodies, located to the West of the Otu fault; the main body presents tectonic contact with green schists. The predominant rock is medium to fine grain, its color ranges from middle to clear grey to the south of El Limon Mine and from brown to dark in the north of the mined workings of levels 5, 6 and 7; some sections inside the mine present gneissose structure with good foliation defined by sheets

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whose colors range from white to beige, quartz, plagioclase and dark films with high content of biotite, with thicknesses from 2 to 4 mm

Figure 7.2Regional Gold Occurrences

7.1.1.2. Cajamarca Complex.

Cajamarca Complex is a metamorphic pack made up of quartz-sericitic schists, green schists, phylilites, quartzites, and marbles and metasedimentites. The contacts of this complex with adjacent rocks are varied, generally faulted, although there are protrusions featuring considerable extension.Contacts of this complex with adjacent rocks are varied, generally faulted, although there are considerable intrusions featuring extension.

The main lithological components of the Complex are:

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Quartz-sericitic schists: It is the lithological type being more abundant and characteristic of the complex, includes both the ordinary sericitic schists and their mineralogical (quartzites and schists) and textural transitions (phyllites). They are black rocks to grey silver, fine to very fine-grained, laminated and foliated, with compositional stripping and veins featuring milky quartz of metamorphic segregation.

Quartzites: They appear intercalated and interdigitated with quartz-sericitic schists, showing transition to them. Massive rock mainly made up by quartz and small amounts of biotite and feldspar.

Actinolitic-chloritic schists: rocks ranging from massive to schistose featuring green color and defined foliation by amphibole and chlorite parallel to subparallel orientation. They feature compositional stripping between albite and chlorite layers; sometimes they show lenticular texture by "augen" of quartz and plagioclase and its stratification is accordingly with quartz-sericitic schists.

Figure 7.3Geologic Map of the Region (INGEOMINAS)

7.1.2. Mesozoic

In the region there are igneous bodies associated with Cretaceous magmatism.To the South and slightly to the SW of Zaragoza in the Limon Village there’s a body of intrusive composition (granodiorite), which is North-South elongated, to the South it contacts quartz-feldespathic schists, which should form a halo of contact. It is an Exploration Target.Contact towards eastern edge is uncertain, since the sedimentary cover wraps it up mostly and it cannot be observed; due to weathering, it is assumed that it has intruded into the gneiss and faulting has taken place upon said intrusion.

7.1.3. Cenozoic

The Cenozoic period formations are commonly disposed not only in river and stream banks, but also in small higher strata where there is substantial erosion. They are made up by 60-70% of gravel and 30-40% of sands; their edges are mostly rounded quartz, the average diameter measures 05-0.10 m and in lesser

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extent fragments of igneous and metamorphic rocks. Most of alluvium and colluvial-alluvial deposits of valleys high belong to the Holocene; however, in some places, similar deposits are cut by current streams and they could belong to the Pleistocene.

7.2 LOCAL GEOLOGY

This section pertains to rocks covering the surroundings of El Limon Mine.In the area there are two zones of metamorphic rocks, one of feldespathic-aluminic gneisses and the otherassociated to the Cajamarca Complex rocks. There are also granitic bodies associated to Cretaceous magmatism.

Gneisses and schists occur in bundles which are elongated in an N-S course; they cover the entire area and they are intruded into the NW by a stock of granodioritic composition and small dikes of porphyry andesitic composition.The area features Quaternary deposits; the largest ones are located on the creeks called Juan Vara, Sardina and Culebra.The main structure present in the area is the Otu Fault that crosses the area from North to South, the control over the Juan Vara creek is relevant.

7.2.1. Feldespathic-aluminic Quartz Gneiss (Pe)

Feldespathic-aluminic gneisses emerge from North to South in the area; to the west of the green schist their contact is faulty and, to the north they are intruded by a stock of granodioritic composition. There are lenses of quartzites and amphibolite.

It is a white to dark brown rock, its grain size ranges from medium to thick and its texture is gneissic, made up by quartz, plagioclase, feldspar, muscovite, biotite and chlorite; micas mark the orientation in the gneisses; quartz occurs in discordant veins with the orientation of the other minerals; rocks closest to the veins have pyrite.The best outcrops of this rock are located in Shaft 6.0 of El Limon Mine.

7.2.2. Cajamarca Complex (Pes)

The main lithological components of the Complex are:Quartz-sericitic schists: It is the lithological type being more abundant and characteristic of the complex, includes both the ordinary sericitic schists and their mineralogical (quartzites and schists) and textural transitions (phyllites). They are black rocks to grey silver, fine to very fine-grained, laminated and foliated, with compositional stripping and veins featuring milky quartz of metamorphic segregation.

Quartzites are related to Cajamarca Complex and they are associated to feldespathic-aluminic gneisses in the form of lenses, they are characteristic for being massive rocks, greenish-grey color, and their size is very fine and their texture is saccharoidal. They are made up by quartz and some sulphides (pyrite), in quartz veins. The best outcrops are found in El Limon Mine (It is a topic deserving discussion; a petrographic analysis is suggested for said purpose).

7.2.3. El Limon Granodiorite or Diorite Quartz (Jdc).

A body of intrusive composition (granodiorite) is found, which is N-S elongated; to the west it contacts feldespathic-quartz schists, which should form a halo of contact since it is a new exploration Target.It is a small stock that outcrops about 700 m to the west of El Limon Village and to the NW of El Limon Mine, intruding into gneissic rocks. The best outcrops are found to the NW in tributary streams of the Culebra Creek.

7.2.4. Porphyry andesitic (KAn).

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It is a rock featuring porphyritic texture, light green matrix and very fine grain size; the phenocrystals are white, with cleavage, the mineralogical composition is mainly plagioclase and feldspar in phenocrystals.

Andesitic porphyry bodies emerge on both sides of Juan Vara Fault; occuring in the form of dikes of small length, they cut gneisses and green schists, on the tributary streams of the La Sardina and El Siete creeks. They are non-cartographiable to the map scale but they are mentioned because inside the mine, on south level 4 and 5 a 2 meter wide andesitic body was located in the N-S course.

7.2.5. Quaternary Deposits (Qal).

El Limon mine and its surroundings have many Quaternary deposits associated to creeks that cross the area; there are two types of deposits: alluvial and alluvial terraces of ancient courses of these creeks; the latter have special interest in gold mining since large quantities of alluvial gold are found on their conglomeratic foundations.

Figure 7.4Geologic Map and Cross Section Through El Limon Mine

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7.3 VEIN CHARACTERISTICS

The known vein systems of the region extend up to 2-3 km in length with plunging high-grade ore shoots central to the vein and surrounded by a lower grade halo. Vein dips are typically around 30-40°, and occasionally sub-vertical.

Typical production grades of the region range 8-12 g/t Au diluted. However, higher-grade mines also exist, such as Quintana and El Limon mines at 15-20 g/t Au diluted.

Vein widths are typically below 1m, although both the hanging wall and footwall zones can contain appreciable economic mineralization within the high-grade cores.

The mineralization of El Limon mine is embedded in the previously described quartz-feldespathic gneisses. The gold occurs in a milky quartz vein, to the west of Otu Fault, its approximate course is N10E/40W, with average thickness of 0.40 m. These features are very consistent in an extension of almost 400m on the course and 350m in the dip direction.

As to structure, it is continuous, except for a series of reverse faults, with displacements ranging from 0.2 up to 40 and 60 meters, of which the main ones are El Limon and Leonel Faults, to the north the 5N and the Victoria faults

7.4 MINERALIZATION

Gold mineralization is related to sulphide contents, mainly pyrite, with smaller amounts of galena, sphalerite and tetrahedrite, usually occurring as clear strips with a thickness ranging from 2 to 5 mm, and they comprise from 7% to 12% in volume. Occasionally the strip structure is replaced by distributions of sulfides which are more irregular or uneven.

Pyrite is the first most common and abundant ore, present in the form of aggregates of anhedral and subhedral crystals. Sizes vary from 0.5 μm corresponding to small fragments caused by intense fracturing up to centimeters.

Tetrahedrite is the second most abundant ore; usually it occurs in anhedral crystals. Galena is a not so abundant as pyrite, usually it appears in the form of anhedral crystals in Intergrowth with gold, but it is not always included in pyrite crystals.

Gold is the most important metal; it appears in the form of grains in native state or electrum, normally encapsulated with galena and in the form of inclusions in pyrite crystals, but not always. The particle size is distributed in ranges from 1 to 120 microns, occasionally above 200 microns. (Lopez 2004).

Gold – silver ratio is 1:1.2; the mineralization is normally contained within quartz veins, it is very rare to find quantities of gold directly in the host rock. The tenor of gold appears to relate to the quantity of sulphides, preferably related to the presence of sphalerite and galena.

In many cases the veins are mineralized segments and may be relatively discontinuous. Potentially economic mineralization is often related to discrete outbreaks of high quality (more than tens to hundreds of meters along the guide) and then just lower quality ore zones. In general, these minerals represent arelatively small proportion of the total of meters and mineralized tonnage, but they may contain more than 75% of the gold content, and thickness from 0.1m up to 0.8m.

The vein’s mineralogical composition is simple since the ore is composed of pyrite as the more abundant mineral, with smaller quantities of galena, sphalerite, and tetrahedrite; usually they occur in clear strips that run parallel to semi parallel to the course of the vein.

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By sectors, these strips are replaced by a presentation in "patches". Gold appears intergrowth with galena or in the form of inclusions in pyrite crystals and from little to moderate presence in "hooks" from 1 to 120 microns. The gold-silver ratio is 1:1.2, normally being the tenor of 450grAu/Mt.; the major tenors of gold are associated to the presence of galena and sphalerite.

The presence of three mineralization stages that have acted in the quartz vein can be established from a macroscopic analysis and experience:

1. First stage: injection of macroscopic pyrite crystals which do not carry gold;2. Second stage: injection of sulfides accompanying fine pyrite, chalcopyrite, sphalerite, galena and gold;3. Third stage: intense dynamic deformation represented by an association of tetrahedrite-pyrite -sphalerite-gold, indicating the presence of tetrahedrite, possibly enrichment caused in addition to gold.

7.4.1 Age Of Mineralization

Embedded quartz gold vein is produced at high temperature; metamorphic rocks (high-temperature facies and amphibolites) and from Precambrian age are very close to 450 Million years. The presence of a dyke of andesite with EW course and predominant "pre-vein" age would indicate a Post-Triassic age for the events of quartz vein mineralization.

7.5 STRUCTURAL CONFIGURATION

The area has three types of geological structures, the first corresponds to the foliation and schistosity of metamorphic rocks, the second is defined by geological faults that cross the sector and, the third is related to the jointing of lithological units.

7.5.1 Foliation – Schistocity:

The predominant direction varies from N-S to N25° W dipping on average 60° W, except in the phyllites, in which the direction of dip is to the E.

7.5.2 Faults:

The main fault is Otu which course is N20° - 35° W/70°, Vertical; the geomorphic expression of the fault is in aligned valleys of the Pocune River, and hills in the manner of tectonic hooks showing sinistral behavior.The most important faults related to El Limon Mine are presented in the level 5, 6 and 7 along with the crease area and some outstanding structural traits. These faults cut the vein, segment it and move it, and isolate it in independent tabular bodies.

Among these we have El Limon Fault, a structure with N20°W course, dipping 65° east; it moves the vein 32 meters in the dip course. A second fault of this type is the Leonel fault; its course is NNE and it has a 78° W pseudo-vertical dipping with slight variation to the South, it moves the vein about 35 meters in the dip course. Such fault features a combined motion, with sliding in the direction of the dextral rhumb, displacing El Limon fault approximately 85 meters. The third fault is the Victoria fault which features a NNE reverse course and dips 75° W; it displaces the vein approximately 60 meters in the dip course, locating the continuation of the block 830.

Minor fractures occur abundantly, both pre-minerals such as post-minerals. The most characteristic faulting is the post-mineral, which causes intense fracturing in the vein and moves it small jumps of centimeters to a few meters.

The intrinsic structural configuration of El Limon Vein is characterized by the presence of morphologies of the sigmoid loop type and occasionally echelon and ponytail structures.

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In the Sibson nomenclature (1990), these structures are called "Jogs" and basically correspond to inflections, jumps, imbricated fans and extensional duplex.

There are also small E-W faults generating displacement measured in cm in the veins.

7.5.3 Jointing:

The main families of joints are: E-W/60°- Vertical, N45°W/-30°- Vertical, and N-S/45° - Vertical.The vein is continuous and it extends to depth with N5°E - N15°E more or less constant disposition, dipping from 35° to 55° W, except for some changes produced by a folding area, its axis course is N20°W/28°, locally changing its arrangement and altering its folding site, therefore altering the exploitation system.

7.6 REGIONAL AND LOCAL STRUCTURAL DESCRIPTION OF EL LIMON MINE

The prevailing geological feature in the area is called the OTU FAULT, its prevailing course is N15-20E and it tilts towards the West. Since it behaves like a reverse fault in rocks featuring gneissic Precambrian age, it overlaps schistose rocks of the Paleozoic era towards the East. This is a local event and it is characteristic of the morphology of the fault of the Valley of the Juan Vara creek, where the mine is located.

With the pre-cretaceous known activity to date, gold mineralization continues associated with more than 100 km to the South, where it joins the Palestinos Fault that has a length of more than 500 kilometers to the south of the mineralized zone of Caldas and Tolima, this failure originates a series of very recent faults, as the known faults Leonel, 1 W, 5N, Victoria and Limon, with an echeloned structure and it is mainly related having the parallelism to Leonel Fault as a pattern.

From angles close to 30° regarding the Otu Fault, the activity of these faults is contemporary of the mineralization flows, and it has acted as a priority in relation to mineralization. The fissure where the quartz vein was injected behaves as a fault featuring dextral direction and its projection towards the North also forms a 30° angle with the Otu Fault.

The photo-geological presence describes the Northern and Southern zones, parallel to the course of the Leonel fault and angles that form it are about 30° with Otu Fault which corresponds to the Siete Sur Zone and the north part of La Estrella Mine, giving place to the possibility that the veins thereof behave like echelon parallel structures and it keeps a close relationship with the Otu Fault through faults featuring reverse character affecting the structure and creating "traps" for mineralization; additionally, it was reported in detail when referring to the Out Fault, so this could cause low values in level 5.

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8.0 DEPOSIT TYPES

Sillitoe (2008) classifies the gold deposits of North and South America into five broad categories; 1) epithermal deposits in shallow volcanic environments, 2) porphyry gold or gold only deposits in the subvolcanic environment, 3) sediment hosted (or Carlin-type) deposits in non-metamorphosed, carbonate-rich sedimentary sequences, 4) pluton-related deposits in deeper, but still epizonal intrusive environments and 5) orogenic deposits in metamorphic rocks, commonly assignable to greenschist facies (Figure 8.1).

Deposits of the Zaragoza / Segovia belt are classified as “Oxidized Pluton-Related Deposit” within the plutonrelated (#4) category. They are believed to be genetically related to the Segovia batholith, but to have formed after the batholith cooled and under stress conditions induced by the Otu fault.

The main characteristics of “Oxidized Pluton-Related Gold Deposits” are:

hey occur as quartz veins, sheeted quartz veins and stockworks. Associated elements are Cu, Pb, Zn and Mo, and these normally are present as sulphide minerals. The deposits may occur both in the pluton itself and in the intruded wall rocks. ommon alteration types that occur proximal to the deposits are alkali feldspar and sericite.

Standard geochemical exploration techniques may be applied in the search for deposits of this type since a) sheeted veins and stockwork deposits may have a surface expression measured in hectare or tens of hectares, and b) they normally have associated base metals (Cu, Pb, Zn & Mo).

A stream sediment survey is useful to define broad target areas, while a more tightly controlled soil survey is employed to define trenching or drill targets.

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Figu

re 8

.1

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9.0 EXPLORATION

Para, via CML, only recently acquired the project. There has been no relevant exploration work performed on behalf of the issuer.

Para’s geologist Paulo J. Andrade, PhD Geologist, MAIG; visited the site February 5-6, 2015 and took several grab samples from underground workings at the El Limon mine for independent analysis.

The results confirm that significant grades of gold and silver exist in site. BETA notes that the samples are not representative of the mineralization as a whole. Results as presented by Para are shown in Table 9.1 and Table 9.2 below.

Table 9.1Independent Samples Taken by Para

Table 9.2Assay Results from Independent Samples Taken by Para

Sample ID Location DescriptionPBRCO-001 N Front-Level 7 Quartz vein; Py infilling fracturesPBRCO-002 N Front-Level 7 Altered schist with disseminated PyPBRCO-003 Duct-Level 06 Altered schist with disseminated PyPBRCO-004 Chamber-Level 7 Quartz vein; abundant Py>ZnS>PbS PBRCO-005 Duct-Level 06 Quartz vein; Py infilling fractures

Sample ID Au (g/t) Ag (ppm) Cu (ppm) Zn (ppm) Pb (ppm)PBRCO-001 13.67 11.80 31 177 572PBRCO-002 0.01 0.70 55 111 11PBRCO-003 3.44 3.90 53 156 48PBRCO-004 124.70 127.50 29 17984 12043PBRCO-005 0.15 0.40 16 12 6

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10.0 DRILLING

There has been no drilling performed by CML or Para. The following drill results are from previous operators.

BETA reviewed: drill logs and drill core from three holes drilled on level 8 in November 2013; and, drill logs from two diamond drill holes, drilled in 2008 drilled by Four Points.

The cores from the 2008 drilling were not examined.

The type and extent of drilling is described below. There is no report available on the procedures followed for this drilling. BETA is not aware of any drilling, sampling, or recovery factors that could materially impact the accuracy and reliability of the results shown in this section.

As one of the last exploration activities made by Four Points in the area of the El Limon mine, drilling was undertaken in November 2013 consisting of three holes drilled from a cross cut on Level 8 as indicated on Table 10.1 and Figures 10.2 and 10.3.

Table 10.1Drill holes locations - drilled from Level 8 to define the presence of sector 5 of the El Limon vein.

These drill results were modeled in Vulcan, utilizing results as received from on the 27th of August 2014 and these new results are presented in the following interpretation of implications for exploration. Drilling was designed to perpendicularly intersect the mineralized vein. The relationship between the sample length and the true thickness of the mineralization has been accounted for in the Vulcan model. The data presented in the tables show actual sample length.

During the field activities a rapid revision of the drill core was made with the following observations:

1. In Hole FPM-PZ-01, azimuth 180, Dip -86, length 68 metres, all the lithology corresponds to biotite gneiss, and at a depth of 58.2m begins a zone of alteration, quartz-sericitic, weak to moderate, which extends to 59.5m: later the biotite gneiss continues and then another zone ofweak sericitic alteration, with intense silicification up to 66.5 m. In the report from Minera Four Points, there is a vein between 8,5 and 10 metres but in the boxes there was no core remaining, since all was sent to the laboratory. The results of the samples No. 1 and 2, which according to the order of the drill holes correspond to FPM-PZ-01, with values of 100 and 200 ppb possibly corresponding to another type of quartz, possibly metamorphic, without sulfides and therefore does not correspond to segment 5 of El Limon.

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2. In Hole FPM-PZ-02, with azimuth 100 dip -70, length 65 metres, all of the rock corresponds to biotite gneiss with three weak fault zones, between 16 and 17 metres, between 21.5 to 23 metres and between 44 and 45 metres. Between 62 and 64 m there is a zone of sericitic alteration, weak to moderate in rock which is not cataclastic. In the revision of the logs this hole was not sampled.

3. In hole FPM-Pz03, azimuth 280, dip -70 and depth 20m, we observed biotite gneiss, with two fault zones, between 11 and 14m. In the Minera Four Points report, there is a vein between 17.5 and 20 m but there are no remaining samples in the core box.

Photograph 10-1: Core cases from hole FPM-PZ-01, with gneiss biotite and the empty space corresponding to sample (muestra) #1 and 2, between 8.5 and 10.0 meters down the hole, with results of 101 and 192 PPB gold, indicating that it does not correspond to sector 5 of the El Limon vein.

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Figure 10.2 – View of the intercept of FPM-PZ-03, between 18.50 and 20.00 meters with results of 5.60 and 4.60 PPM gold. In the figure the displacement of fault 8 is shown to be 50m between sectors 4 and 5, however based on these results the displacement appears to be 18 to 20 meters.

Figure 10.3Plan view of the intercept of MPF-PZ-03 18.5 and 20.0 meters with results of 5.60 and 4.60 PPM gold.

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Prospect Hole # Depth Status Results

El Limon Pzlim-01 456.3 completed 0.30 m Limon vein intersected at 451 m

El Limon Pzlim-02 422.8 completed thin intercept of Limon vein; sparse sulfs.60 cm sample (some non-vein material)with pyrite-galena

Figure 10.4Cross Section Views of El Limon Mine

The drill holes were designed with the aim to establish the continuity of the El Limon mine below level 7 along the dip. Two holes were planned with a depth of 450 m, vertical. Drilling was conducted between the months of June and August of 2008 with a Longyear 38 machine. The cores were marked, boxed and transported to the El Limon mine site, where sample preparation was performed. Core was marked in the boxes, washed, photographed, and split by diamond saw. Samples for assay were selected from the cores taking into account the mineralization and the structures present in the rock. A total of 47 samples in holePZLIM01 and 94 samples in holes PZLIM02 were analyzed.

PZLIM01

Hole Pzlim01 reached a total depth of 456 m and intersected two families of lodes, the most important of which at 450.50 m corresponds with the projection of the Limon mine. This intercept proved continuity of 50 m along the dip of the vein.

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11.0 SAMPLE PREPARATION, ANALYSES, SECURITY

Sample preparation and analysis is performed onsite. BETA did not review the sample preparation or analysis procedures actually utilized.

BETA was not able to identify the sample preparation methods and quality control measures employed before dispatch of drill core samples to the analytical laboratory, the method or process of sample splitting and reduction, nor the security measures taken to ensure the validity and integrity of samples taken. BETA therefore cannot comment with regard to the nature, extent, and results of quality control procedures employed and quality assurance actions taken.

As such, none of the results from historical drilling are suitable for resource or reserve evaluation.

BETA’s qualified person does not believe that historical sample preparation, security, and analytical procedures were adequate.

As a result, Four Points has, under the direction of CML, produced a Sampling Quality Assurance / Quality Control Plan which meets acceptable industry standards for future use.

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12.0 DATA VERIFICATION

BETA personnel independently verified the site conditions, mine geology and mineral processing operations.

BETA has not independently verified or check-sampled any of the laboratory results presented in this report.

The mining of ore and the production of gold from the existing operation was independently verified for the project.

In the opinion of the author, the data presented in this report is adequate and appropriate for the purposes used in this technical report.

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13.0 MINERAL PROCESSING, METALLURGICAL TESTING

FPM has recently initiated an upgrade and renovation of the crushing plant and mill circuit at El Limon.

The existing mineral process at El Limon consists of two-stage crushing, milling, gravity separation, flotation, cyanidation, merill-crowe precipitation and smelting. Amalgamation in small ball mills (cocos) has historically been performed as well. The final product sold by FPM is gold/silver doré.

BETA has reviewed the metallurgical results of the FPM operation. BETA has not reviewed any independent metallurgical test work for the El Limon mine.

Photograph of Gold Pour at El Limon Photograph of doré bar #337

ORE CRUSHING PLANT

The crushing plant is in reasonably good operating condition. The belts and rollers are in good condition. The crushing circuit begins at the dump pocket where the one tonne ore cars are dumped onto a fixed grizzly with 12 inch opening. Workers with sledgehammers break the oversize material on the grizzley. This run of mine ore is transported up belt #1 to a 60 tonne coarse ore bin. There is a washer bar at the bottom of the coarse ore bin. Feed from this ore bin onto belt #2 to is currently manual – a labourer sits on the bin feeder and pulls the ore forward onto the 30” belt with a shovel (this will be mitigated in the rehabilitation underway). A scrap magnet sits above belt #2. Belt #2 discharges into a 16”x22” jaw crusher, with nominal opening of 1.5 inches. Belt #3 feeds the vibrating screen, from which minus ¾” material goes to the fine ore bin via belt #5 and plus ¾” material goes to the 4’ Allis shorthead cone crusher via belt #4. The vibrating screen has two screen decks, the top deck at 1½ ” and the bottom at ¾”. Belt #4 is a 24” belt that takes the oversize +¾” ore from the vibrating screen to the secondary crusher. A scrap magnet is above belt #4. The cone is set at 1” opening, allowing for considerable recirculation.

BETA notes that the design of the fine ore bin allows for a large dead zone at the base (this will be mitigated in the rehabilitation underway). The fine ore bin feeds via a short belt feeder onto belt #6 for transport of ore to the primary ball mill.

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The material being discharged from the fine ore bin at the time of site visit was about minus ¾”. The crushing plant operates at 10-12 tonnes per hour with a maximum capacity of 20 tonnes per hour.

MILL PLANT

The mill was operating throughout BETA’s visit.

The 5’ x 10’ ball mill was originally a bar mill that was retrofitted for balls. Rubber liners were installed in 2102. Ore is fed into the ball mill, from which the oversize is separated via trommel for regrinding and the undersize is fed to 12” duplex jigs. There seemed to be considerable coarse overflow from the mill.

The material separated by the jigs contains the majority of the gold recovered by the mill. The product captured by the jig is concentrated on the Wiffley table, and then run through a small ball mill with mercury. Gold is then recovered by amalgamation.

The pulp is collected in a pulp tank and pumped to a pair of hydrocyclones.. BETA notes that these pumps appear to be too small. The oversize from the hydrocyclone recirculates into the ball mill, while the undersize goes to a conditioner tank in preparation for flotation.

Flotation cells are operating at partial capacity, with motors operating at differential speeds limiting their effectiveness. Flotation cell dividers were not operational so corners between the cells have been cut out to allow fluids to flow through between cells.

Flotation provides between 5-10% mass pull. The flotation concentrate is pumped to a thickener, from which it goes to a 3’ x 4’ regrind mill and into a concentrate tank from which it is pumped to a pair of hydrocyclones. The coarse reject is recirculated through the regrind mill, while the fines are sent to agitation tanks (5 batch tanks operating in parallel) for cyanidation.

A Merrill Crowe precipitation circuit , which reportedly can handle 20 cubic meters of solution per day, is utilized to remove the gold from solution and produce dore bars on site.

Ball mill size and pumping capacity appears to be the limiting factors keeping plant tonnage constrained at 3.8-4 tonnes per hour, making the current plant a 100 tpd max best-case throughput, more likely a 75 tpd plant as is.

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The barren solution tank was rusted through at the top, so it was kept at ¾ level, but the system was operable.

While presently in operational condition, the mill needs some work. Tank repairs, valve repair, etc are needed in addition to increased milling capacity in order to bring it to 150-200 tpd. (this will be mitigated in the rehabilitation underway)

The mine has adequate facilities for security, warehouse, geology & core storage, lamp room, etc.

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The following equipment was in place at the start of reconstruction in May 2015:

Table 13.1Equipment in Mill Plant – May 2015

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14.0 MINERAL RESOURCE ESTIMATES

There are no mineral resource estimates that meet NI 43-101 standards.

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15.0 MINERAL RESERVE ESTIMATES

There are no mineral reserve estimates that meet NI 43-101 standards.

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16.0 MINING METHODS

Underground development at the El Limon mine has continued nearly continuously for 75 years. The mine has been developed by room and pillar method, as the inclination of the vein is not sufficient to allow for stoping. The El Limon vein has been developed on 8 levels; production over the past 15 years has been from levels 5-8.

Figure 16.1 Underground Workings at El Limon Mine

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Figure 16.2. Levels and raises in levels 3, 4, 5, 6, 7, and 8 of the Limon mine.

The underground workings are accessed via the mine portal (at level 0). Track extends from the mine mouth to an incline drift (shaft), located about 150 meters south of the portal. This primary incline drift is 325 meters long at 50° dip, measuring 3m x 3m, amd extends down from level 0 (portal level) to level 6. A second incline shaft, located on level 6 about 300 meters north of the bottom of the primary incline, is utilized to access levels 7 and 8.

Figure 16.2Portal Entrance, El Limon Mine

The mine openings are naturally supported, with square set timber installed as needed in fault zones or other areas of instability.

Figure 16.3 – Drilling Schematic

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Mine drift development is by drill, blast and muck. Drilling is with standard pneumatic shortleg drills using 5 foot rods and 34mm (1.33 inch) diameter holes. The holes are loaded with explosive (ANFO, Indugel), with blasts planned for twice daily. Each advance is 1.5 meters. Material from the face is loaded into 1 tonne mine cars with Eimco12B muckers.

Development of drifts and raises for room and pillar extraction follows typical extraction methods as shown in Figure 16.4.

Figure 16.4Room and Pillar Extraction Method

Room (stope) development is drilled and blasted utilizing the same drills and explosives as used in drifting. Mucking of the face is by winch and bucket (scraper).

Twelve (12) scraper bucket loads (“bulto”) fill a one tonne rail car, which is pushed manually on the lower levels from the draw point to the incline shaft, where it is loaded onto skips for transport to the surface.

The loaded cars are manually dumped into 2-ton skip buckets that raise the material up to the surface, where it is loaded into 1 tonne rail cars for transport out of the mine to the crushing plant (ore) or waste dump.

A 1.5 ton battery locomotive is shown to exist, however all of the mine cars were pushed manually at the time of BETA’s site visit.

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Figure 16.5 Typical Room and Pillar Mine – Room Development

Mine ventilation is by axial fans located underground. A 10hp fan is situated on level 0. Fans are placed on the levels of exploitation (currently levels 6 and 7) in a manner so as to circulate air to facilitate the workers. The two auxiliary fans are 5ph and 7.5 hp.

Photograph of Axial Fan for Ventilation Photograph of Dewatering Pump

Mine dewatering is accomplished by means of four (4) suction pumps of 24hp each. These pumps are located on levels 6, 5, 4 and 3, and arranged in series such that the water on level 6 is pumped to the sump on level 5, and from there to level 4 and level 3 and from there to the surface.At the time of BETA’s site visit, extraction of ore was being conducted on low-grade blocks in the southern part of level 6, as well as higher grade blocks on level 7.

Development work is currently suspended due to lack of geological data to indicate the presence andcontinuity of the quartz vein to the north and south ends of levels 5-8. In particular, there is a lack ofexploration drilling from underground drill stations to determine the displacement of the vein across limiting faults. While the historical drilling records indicate approximately 20 drill holes from the surface and 45 drill holes from underground from levels 3, 4 and 5, most of these intercepts have already been

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mined. Only three drill holes are relevant: drilled from level 8 south, in November 2013; however these did not produce significant intercepts.

From level 5 toward surface, all levels are facing collapse and considered dangerous. Current workings are on levels 6-8.

The El Limon quartz vein is continuous along strike for 600 meters trending N10-20E, with inclination of 40 to 50 SW. The vein has been shown to be continuous down dip for 350 meters, affected by post-mineralreverse faulting direction, and possibly associated with one of the final mineralizing events.

The dip of the quartz vein between levels 7 and 8 changes drastically to a pitch of 60 to 70 to the SW.

Limiting faults are present at both the north and south ends of levels 7 and 8. Exploration drilling is required to determine the location of the vein as displaced by these faults.

.

Two details of the limiting fault of Level 8 south

The mine rooms and pillars are referred to numerically by levels and raises (“tambor”), based upon the distance from the incline shaft. For example Level 6 Raise 9S (or alternatively level 6S raise 9) refers to the raise beginning 9 meters south of the primary incline drift on level 6. Level 6 Raise 70N refers to the raise beginning 70 meters north of the primary incline drift. On levels 7 and 8, the raises are measured from the incline shaft that connects levels 6-8.

Mine production was feasible at the following locations at the time of BETA’s visit: Level 6 - raises 9S, 52N and 70NLevel 7 – raises 92S, 39S, 14S, 10N 20N and 90NLevel 8 – raises 65S and 19S

Numerous channel samples have been taken in the mine workings. Results of some these sample locations and isovalue maps, from 2011 and 2012, are shown in the following Figures 16.6 to 16.11. Most of the areas sampled have since been mined out.

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Figure 16.6 Channel Samples taken July 2011 by Four Points

7/12/11 7000 0.20 12.30 Pila de Veta Nivel 7 sur 78 + 0 N.A N.A7/12/11 7001 0.20 18.50 Canal en veta Nivel 7 Norte 78 + 3.40 43 cm 43 cm7/13/11 7002 19.00 48.30 Canal en veta Nivel 7 Norte 2 73 cm 73 cm7/13/11 7003 15.30 33.60 Canal en veta Nivel 7 Norte 4 100 cm 100 cm7/13/11 7004 2.80 11.40 Canal en veta Nivel 7 Norte 6 74 747/13/11 7005 58.70 140.90 Canal en veta Nivel 7 Norte 8 47 477/13/11 7006 0.20 7.60 Canal en veta Nivel 7 Norte 26 25 257/13/11 7007 3.00 9.10 Canal en veta Nivel 7 Norte 30 26 267/13/11 7008 1.90 8.60 Canal en veta Nivel 7 Norte 32 70 707/13/11 7009 5.60 19.40 Canal en veta Nivel 7 Norte 36 102 1027/13/11 7010 106.30 148.10 Canal en veta Nivel 7 Norte 38 100 1007/13/11 7011 12.20 29.30 Canal en veta Nivel 7 Norte 40 50 507/13/11 7012 14.00 39.30 Canal en veta Nivel 7 Norte 42 66 667/13/11 7013 0.20 - Canal en veta Nivel 7 Norte 44 70 707/13/11 7014 66.60 150.90 Canal en veta Nivel 7 Norte 46 55 557/13/11 7015 6.90 21.40 Canal en veta Nivel 7 Norte 48 20 207/13/11 7016 3.80 8.90 Canal en veta Nivel 7 Norte 50 50 507/13/11 7017 377.00 556.30 Canal en veta Nivel 7 Norte 56 45 457/13/11 7018 94.70 140.50 Canal en veta Nivel 7 Norte 58 58 58

770197/14/11 7020 224.30 291.60 Canal en veta Nivel 7 Norte 62 70 cm 70 cm7/19/11 7021 192.30 291.60 Canal en veta Nivel 7 Norte 64 54 cm 54cm7/19/11 7022 142.80 285.60 Canal en veta Nivel 7 Norte 66 59 cm 59 cm7/19/11 7023 19.60 41.60 Canal en veta Nivel 7 sur 4 132 cm 132 cm7/19/11 7024 13.00 24.70 Canal en veta Nivel 7 sur 6 110 cm 110 cm7/19/11 7025 81.20 171.40 Canal en veta Nivel 7 sur 8 35 cm 35 cm7/19/11 7026 27.00 43.20 Canal en veta Nivel 7 sur 10 25 cm 25 cm7/19/11 7027 36.40 80.00 Canal en veta Nivel 7 sur 12 36 cm 32 cm7/19/11 7028 19.70 33.50 Canal en veta Nivel 7 sur 14 30 cm 30 cm7/19/11 7029 43.30 47.60 Canal en veta Nivel 7 sur 16 32 cm 32 cm7/19/11 7030 52.60 99.90 Canal en veta Nivel 7 sur 18 26 cm 26 cm7/19/11 7031 36.00 77.30 Canal en veta Nivel 7 sur 20 30 cm 30 cm7/19/11 7032 13.20 19.40 Canal en veta Nivel 7 sur 32 40 cm 40 cm7/19/11 7033 4.40 10.20 Canal en veta Nivel 7 sur 26 65 cm 65 cm7/19/11 7034 5.40 11.90 Canal en veta Nivel 7 sur 28 76 cm 76 cm7/19/11 7035 26.80 56.30 Canal en veta Nivel 7 sur 30 60 cm 60 cm7/19/11 7036 18.10 42.60 Canal en veta Nivel 7 sur 32 50 cm 50 cm7/19/11 7037 39.00 74.30 Canal en veta Nivel 7 sur 34 48 cm 48 cm7/19/11 7038 68.20 161.70 Canal en veta Nivel 7 sur 36 39 cm 39 cm7/19/11 7039 126.40 198.60 Canal en veta Nivel 7 sur 38 24 cm 24 cm7/19/11 7040 23.00 40.90 Canal en veta Nivel 7 sur 40 47 cm 47 cm7/19/11 7041 3.60 11.80 Canal en veta Nivel 7 sur 42 36 cm 36 cm7/19/11 7042 28.20 63.40 Canal en veta Nivel 7 Sur 44 47 cm 47 cm7/19/11 7043 66.40 109.30 Canal en veta Nivel 7 Sur 46 38 cm 38 cm7/19/11 7044 84.20 146.30 Canal en veta Nivel 7 Sur 48 40 cm 40 cm7/19/11 7045 0.40 12.30 Canal en veta Nivel 7 Sur 50 45 cm 45 cm7/19/11 7046 0.40 9.10 Canal en veta Nivel 7 Sur 52 40 cm 40 cm7/19/11 7047 5.10 11.40 Canal en veta Nivel 7 Sur 54 35 cm 35 cm7/19/11 7048 76.60 160.70 Canal en veta Nivel 7 Sur 56 76 cm 76 cm7/19/11 7049 23.60 55.80 Canal en veta Nivel 7 Sur 58 47 cm 47 cm7/19/11 7050 44.20 99.30 Canal en veta Nivel 7 Sur 60 50 cm 50 cm7/19/11 7051 131.20 321.80 Canal en veta Nivel 7 Sur 62 30 cm 30 cm7/19/11 7052 12.00 28.20 Canal en veta Nivel 7 Sur 64 48 cm 48 cm7/19/11 7053 0.60 8.40 Canal en veta Nivel 7 Sur 68 20 cm 20 cm 7/19/11 7054 0.40 6.60 Canal en veta Nivel 7 Sur 70 15 cm 15 cm7/19/11 7055 8.60 19.10 Canal en veta Nivel 7 Sur 72 20 cm7/19/11 7056 2.40 17.30 Canal en veta Nivel 7 Sur 74 26 cm 26 cm7/19/11 7057 0.40 11.90 Canal en veta Nivel 7 Sur 76 36 cm 36 cm7/19/11 7058 0.40 0.90 Canal en veta Nivel 7 Sur 78 34 cm 34 cm7/19/11 7059 1.30 7.60 Canal en veta Nivel 7 Sur 80 52 cm 52 cm7/26/11 7060 16.70 39.40 Canal en veta N7S T.14 2 M. 24 cm 24 cmc7/26/11 7061 0.40 7.90 Canal en veta N7S T.14 4 27 277/26/11 7062 94.80 147-9 Canal en veta N7S T.14 6 30 307/26/11 7063 69.00 133.40 Canal en veta N7S T.14 8 36 367/26/11 7064 137.70 290.30 Canal en veta N7S T.14 10 40 407/26/11 7065 21.30 47.30 Canal en veta N7S T.14 12 42 427/26/11 7066 43.10 101.90 Canal en veta N7S T.14 14 78 787/26/11 7067 36.30 96.30 Canal en veta N7S T.14 16 60 607/26/11 7068 62.40 85.40 Canal en veta N7S T.14 18 28 287/26/11 7069 6.60 10.80 Canal en veta N7S T.14 20 37 377/26/11 7070 12.20 21.60 Canal en veta N7S T.14 22 16 167/26/11 7071 10.80 25.40 Canal en veta N7S T.14 24 14 147/26/11 7072 10.60 25.60 Canal en veta N7S T.14 26 19 197/26/11 7073 14.80 39.30 Canal en veta N7S T.14 28 20 207/26/11 7074 8.20 23.90 Canal en veta N7S T.14 30 20 20

70757/27/11 7076 10.40 0.00 Canal en veta N7S T.14 34 40 407/27/11 7077 29.20 81.40 Canal en veta N7S T.14 36 20 207/27/11 7078 8.20 0.00 Canal en veta N7S T.14 38 30 307/27/11 7079 55.60 139.40 Canal en veta N7S T.14 40 20 207/27/11 7080 133.00 345.80 Canal en veta N7S T.14 42 32 327/27/11 7081 68.40 157.30 Canal en veta N7S T.14 46 34 347/27/11 7082 22.20 69.80 Canal en veta N7S T.14 48 40 407/28/11 7083 161.50 399.60 Canal en veta N7N T. 55 0 54 547/28/11 7084 127.70 301.90 Canal en veta N7N T. 55 2 61 617/28/11 7085 79.00 88.30 Canal en veta N7N T. 55 4 36 367/28/11 7086 113.30 112.50 Canal en veta N7N T. 55 6 32 327/28/11 7087 58.20 84.84.3 Canal en veta N7N T. 55 8 30 307/28/11 7088 130.40 127.60 Canal en veta N7N T. 45 0 30 307/28/11 7089 34.70 48.90 Canal en veta N7N T. 45 2 32 327/28/11 7090 101.40 119.90 Canal en veta N7N T. 45 4 42 427/28/11 7091 14.80 0.00 Canal en veta N7N T. 45 6 20 207/28/11 7092 19.60 17.30 Canal en veta N7N T. 45 8 24 247/28/11 7093 50.40 71.50 Canal en veta N7N T. 45 10 64 647/28/11 7094 80.60 85.90 Canal en veta N7N T. 45 12 41 417/28/11 7095 3.00 0.00 Canal en veta N7N T- 30 2 47 477/28/11 7096 79.30 95.60 Canal en veta N7N T- 30 4 20 207/28/11 7097 92.80 118.70 Canal en veta N7N T- 30 6 64 647/28/11 7098 179.80 104.50 Canal en veta N7N T- 30 8 22 227/28/11 7099 46.40 79.60 Canal en veta N7N T- 30 10 8 8

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Figure 16.7 Channel Samples taken January 2012 by Four Points

Figure 16.8 Channel Samples, Level 7 North

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Figure 16.9 Gold Isovalue Map of Channel Samples, Level 7 North

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Figure 16.10 Channel Samples, Level 7 South

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Figure 16.11 Gold Isovalue Map, Channel Samples, Level 7 South

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EQUIPMENT IN MINE:

5 - Pneumatic drills YT-28 column and lubricator with2 - pneumatic drills Toyo-2606 - pneumatic drills Toyo-280L1 - electric winch with barrel for loading 2" Sunderland1 - electric winch with barrel for loading 2" WEG motors 50 KVA1 - winch Sunderland motor siemens 30 KVA2 - pneumatic Shovels EIMCO3 - peristaltic pump Envirotech pump system inc 30 HP Level 3,5,72 - 24HP centrifugal pump Level 6, Level 6N,72- 10HP centrifugal pump level 6.73 - sludge pump 10HP Wilfley type 2" Platform 0, level 6N,72 - Siemens Transformer 500 KVA1 - Axial Fan Motor 75 HP1 - electric motor Level 6 Siemens M OT 2791 - 5 HP Siemens platform 010 – ore cars1 - electrical substation4 - axial fans Vano WEG1 - pneumatic Grinder ss266jr1 - Locomotive 1.5 ton300 - Rail 25 lbs/yd tranches 6m lengths4 - Compressors atlas copco GA 75 WEG motor 100 KVA 220 v-220 psi-901 digital control

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17.0 RECOVERY METHODS

The historical operations at El Limon provide reliable information on the recoverability of gold and silver from the nearby mineralization, and the amenability of the mineralization to the proposed processing method.

CML has operation control over the upgrades and renovation of the mineral processing facilities on behalf of FPM. Tom McGrail, Engineer of Mines, MAIG, is the individual responsible for the plant upgrades and renovation. The planned upgrades include installation of equipment required to increase mill throughput to 200 tpd. The proposed mineral process has not changed. Amalgamation is eliminated. A conceptual flowsheet (see figure 17.1) details the proposed upgraded circuit with calculated material flow for each component of the plant.

At the time of the writing of this report, the existing ball mill and flotation circuit have been disassembled pending relocation. Detailed CAD design of the plant is underway, and pertinent equipment has been sourced and contracted for delivery in tranches through October. Two used mills have been sourced in-country and are being inspected and serviced as necessary prior to delivery to site. Electrical demands have been recently reviewed by an independent contractor.

The roof of the mill building is pending repairs that have been contracted to be completed by September 15.

Final process plant design is to be completed in mid-September with installation continuing through November. The crushing plant will be refurbished, mitigating the discrepancies described below of the existing facilities, by mid-October.

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4.17

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Bikerman Engineering & Technology Associates, Inc. August 31, 2015 Page 76

The following work has been undertaken by FPM since CML assumed control as of June 1, 2015.

Table 17.1Mill Renovation Work Schedule

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Figure 17.2 Flow Diagram of Crushing and Process Plant – MFP – 2014

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Table 17.2

1. JAW CRUSHER AND ROLLER GRINDER MOTOR: 1700 rpm

220V - 14 amps - 7.5 hz

polea motor: 3"

JAW CRUSHER 437 rpm

OPENING: 12"ROLLER GRINDER 874 rpm

2. DISC PULVERIZERMOTOR CENTURY: 1800 rpm

220V -3hz

3. DRYING OVEN 220V - 3KW

4. GAS SMELTING OVEN Motor búfalo, 1/4 hz para horno a gas

5. PhMETER MESAHanna HI 3222 con electrodo ISE HI 4109 (para cianuro)

6. PRINTER SCX 3200

7. PORTABLE COMPUTER HP G42-265LA

8. PhMETER Hanna de bolsillo

9. MUFLA TYPE OVEN modelo K11 marca: RZG

10. WATER DISTILLERmarca SCHOTT Gerate

11. RO - TAP modelo: RX 29-10

serial: 11-1509230V - 50hz -2.9amps

12. MANUAL LAMINATOR13. ELECTRONIC BALANCE PRECISIÓN AZ 313 Sartorius

serie M power, model: AZ313, 310g. Legibilidad 0,001g

14. SCREEN SIEVES MALLA: 50,70,100,200,325

15. SAFE16. ANALYTICAL BALANCE ANALITICA SARTORIUS CP225D 220g d= 0.01mg (80g)

0.1mg (220g)

17. CUPELS

18. SPLITTER HUMBOLDT H3992

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18.0 PROJECT INFRASTRUCTURE

The nearest ports are at Tolú and Cartagena on the Atlantic Ocean. Caucasia is situated on the navigable Cauca River, part of the Magdalena River system which enters the Atlantic Ocean at Barranquilla.

The nearest railway is at Medellin.

The national electricity grid supplies the mine and the town of Zaragoza. There is sufficient power available for the mine’s needs.

Hotel accommodation and field supplies are available locally in the towns of Zaragoza, Caucasia and El Bagre.

Personnel for the project are available locally from the operating mine and from the nearby towns and villages. The district is expected to be able to supply the basic workforce for any future mining operation.

The region has high rainfall and there are ample water resources available.

Tailings disposal has historically been located at the mine site. The environmental agency has recently given permission for a permanent tailing disposal site located on the southern periphery of FPM’s exploitation concession, within RPP 12011.

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19.0 MARKET STUDIES AND CONTRACTS

FPM has sold its production to several refineries in 2013-2015 in Colombia, including Goldex, CIGSA, Gutiérrez, C.I. Mepricol, and Metales Hermanos. The most recent bars were sold to CIGSA. There are no long term agreements for sales to refineries. FPM regularly determines which refinery will charge the least smelter fees and sells accordingly.

As gold/silver dore has a ready market in Colombia, Para and CML have not conducted anyrelevant market studies, commodity price projections, product valuations, market entry strategies, or product specification requirements.

BETA is not aware of any contracts material to the issuer that are required for property development at El Limon including mining, concentrating, smelting, refining, transportation, handling, sales and hedging, and forward sales contracts or arrangements.

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20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL IMPACT

The El Limon mine operates under Environmental License issued in Resolution #130PZ-1402-2703 dated February 27, 2014. MFP is in compliance with the requirements of the Environmental License. The most recent visit by Mining Agency officials was August 12, 2015.

MFP is in compliance with the groundwater sampling requirements of the government. Figure 20.1indicates the piezometer locations for sampling activities conducted by FPM.

Figure 20.1Piezometer Location Diagram

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MFP is in compliance with the reforestation requirements of the government. Figure 20.2 indicates the locations for reforestation activities conducted by FPM.

Figure 20.2Reforestation at El Limon

MFP has filed a closure plan and bond with Corantioquia (the pertinent environmental authority for the El Limon mine). BETA is not aware of any additional closure requirements for the project.

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In March 2015, FPM formally requested from Corantioquia a modification to the environmental license in order to allow for the movement of tailings from the current location near the mine to a new location where long-term placement is possible. The current tailings location is nearing capacity.

FPM received approval from Corantioquia for this modification on August 24, 2015. BETA estimates a cost of US$120,000 to move the tailings.

Figure 20.3El Limon Mine Topography with Piezometer Locations

Figure 20.4Tailings to be Relocated - El Limon Mine

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21.0 CAPITAL AND OPERATING COSTS

21.1 CAPITAL COSTS

In order to bring the mineral processing plant to a 200 tonne per day operating status, and to eliminate the use of mercury in amalgamation on site, the following improvements and estimated costs are anticipated:

Table 21.1Capital Cost Summary

Crushing plant: 1) Belt cleaners, roller replacement2) Course ore bin feeder3) Vibrating screen rehabilitation4) Rebuild Jaw crusher5) Cone Crusher rehabilitation6) Fine ore bin feeder

Mill needs – at 200 tpd 1) Install two new ball mills2) Fix mill foundation3) Install equipment per design flow sheet (Figure 13.1) 4) Repair mill building5) Repair solution tanks (35 cubic meters each)6) Structural upgrades – walkways; stairs;

TAILINGS AND PONDS: 1) Tailings disposal area is nearly full. Transport tails to new approved facility2) Ponds are marginal, but operable at current rates. Will need to be enlarged to double production.

LAB NEEDS: 1) Purchase and install new laboratory equipment to allow 100 determinations per day.2) Train personnel on how to

SITE NEEDS: 1) General cleanup2) Maintenance facility rehabilitation

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21.2 OPERATING COSTS

21.2.1 Mine Operating CostCash costs have been estimated for the project by BETA based on historical costs at El Limon. Table 21.2 details the mine operating cost estimates for mining of $96.50 per ton of ore mined.

Table 21.2Mine Operating Cost Estimates

LABOR - MINE $50.00

LABOR BURDEN & ADMIN $10.00

EXPLOSIVES $5.12

WOOD $3.97

PUMPS $0.01

OILS AND GREASE $0.22

HARDWARE $1.79

OTHER $0.10

TOOLS $0.97

FUEL $0.01

ELECTRIC AND TELEPHONE $13.01

TRANSPORTATION $0.64

SECURITY $0.06

MAINTENANCE OF EQUIPMENT $0.60

MAINTENANCE OF SITE $0.18

MAINTENANCE OF VEHICLES $0.07

SERVICES $4.44

FEES $3.75

CASINO AND RESTAURANT $0.15

DIVERSOS $0.07

LEASES $1.23

ENDOWMENTS $0.09

TOTAL COST - MINING $96.50

21.2.2 Mill Operating Cost

Cash costs have been estimated for the project by BETA based on historical costs at El Limon, factoring in the improvements being made. Table 21.3 details the mill operating cost estimates of $59.16 per tonne of ore processed.

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Table 21.3Mill Operating Cost Estimates

MILL & PLANTADMINPERSONNELSALARIESOVERTIMEUNEMPLOYMENTSERVICE PREMIUMVACATIONSBONUSOTHER TAXES ETCTRAVEL

MILL COSTSLABORMATERIALSWINCHESPUMPSCHEMICALSSTEELOILS AND GREASEHARDWAREGASTOOLSOTHER

FUELELECTRIC AND TELEPHONETRANSPORTATIONSECURITYMAINTENANCE OF EQUIPMENTSERVICESENDOWMENTS

TOTAL COST - MILLING $59.16

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21.2.3 Mine Development Plan

BETA has assisted in preparation of a 6-month mine development plan for FPM: the details and costs are shown in Table 21.4. Total cost is estimated at $954,000.

During development, 2,870 tonnes of mineralized rock is projected to be mined. Gold production is expected to pay back all of the proposed development activity costs.

Three major goals of this plan are:

1. Repair existing ventilation shaft to provide adequate ventilation to working areas2. Provide secondary egress from working areas by rehabilitating existing openings; provide

adequate manways, ladders and signs indicating escapeways; replace winch to increase worker safety.

3. Develop stopes and haulage levels to prepare for future production needs.

The work to be completed in this plan includes:

Rehabilitation of 100 meter ventilation raiseReactivation of 300 meter shaft from levels 2-4Replacement of winch, levels 0-6Development of 150 meters on level 7 Development of 150 meters on level 6 southDevelopment of stope #102 on level 6 – preparation for resuingDevelopment of stope #188 on level 7 – preparation for resuingDevelopment of new stope on level 7 – preparation for resuingRehabilitation of manways and ladders – shaft 0-5Rehabilitation of raises 5-6 and 6-8

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Bikerman Engineering & Technology Associates, Inc. August 31, 2015 Page 92

22.0 ECONOMIC ANALYSIS

An economic analysis is not presented as: the project is currently in production; this technical report does not include a material expansion of current production capability; and there are no reportable demonstrated resources or reserves for the project.

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23.0 ADJACENT PROPERTIES

The qualified person for this report has been unable to verify the information in this section. The following information is not necessarily indicative of the mineralization on the El Limon property that is the subject of this technical report

23.1 Regional Mines

Principal towns in the region include El Bagre, Zaragoza, Segovia, Remedios and Santa Isabel; all of which are aligned with the north/south Otu fault. Mining activities are present in all areas, with the principal operations defined below:

Zaragoza: La Ye and El Limon minesSegovia: Frontino Gold Mines and Marmajito mineRemedios: San Pablo mineSanta Isabel: Quintana mine

23.2 Zaragoza District

The Zaragoza district comprises approximately 46,000 hectares of 100% owned concessions and concession applications covering a broad zone of 60 x 20 km principally contained with the municipality of Zaragoza.

Within the district there are more than 60 small scale mining operations and several established trends of artisanal mining operations.

The main trends of interest on the basis of work completed by Continental Gold and Grupo de Bullet geologists to date are as follows:

1. Oro Verde trend: Two small mines define approximately 300m of strike length of a 0.7-1.0m vein system. Sampling of these mines completed by Continental Gold gave an average grade of 19.1 g/t Au. Additional abandoned mine workings along this trend indicate a minimum trend of 500m.

2. Machuca trend: Development of the Machuca trend was commenced by Continental Gold in 2007 and continued by Minera Four Points S.A. and Grupo de Bullet. The Machuca trend includes the El Mango 1 & 2, Higueron and Aurora mines defining over 700m of trend.

3. Aparecida trend: Located 3 km to the east of the Machuca trend, defined by the Aparecida group of mines, Rica mine and potentially Amansaguapos and Mazamorros mines giving a potential trend of up to 4 km.

4. Primavera trend: A more formal abandoned mine operation.

5. Limoncito trend: Central in the Zaragoza district, with a north--‐south trend of small mining operations and one major trackless access tunnel.

6. Diamantina trend: Potentially an extension of the El Limon vein that includes the Diamantina and Delirios mines.

A regional exploration program across the Zaragoza district was completed by Continental Gold between 2007 and 2008. This program targeted the identification of existing vein trends and new areas.

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Figure 23.1Mines in the Vicinity of El Limon

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Figure 23.2Structural Map Showing Veins in Zaragoza – Segovia Trend

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Figure 23.3Structural Map of Adjacent Properties

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24.0 OTHER RELEVANT DATA AND INFORMATION

Not applicable

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25.0 INTERPRETATION AND CONCLUSIONS

The El Limon Project is a property of merit with a rich history of mining. The grade of gold ore that has been extracted over the years is very high, at over 20 grams per tonne. Recent grades mines are substantially lower, between 5-10 grams per tonne. This indicates that the known high grade zones have been substantially depleted. Additional exploration will be required to delineate future mine resources and reserves.

Mining operation can continue within the known confines of the El Limon vein for a limited number of years. Determining the location of the vein on the south side of the Leonel fault will add substantial upside to the project.

There are no demonstrated mineral resource or reserves for the El Limon project. This adds a level of risk to the project as there is no reliable estimation of gold grade and tonnage scheduled for production. The short term risk to the project’s viability is limited due to the advanced nature of the underground operation and development and the likelihood that suitable mineralization has already been prepared for production. The long term risk to project viability due to resource or reserve is greater due to lack of development and exploration in these areas. BETA concludes that additional exploration is warranted to delineate mine resources and reserves.

The crushing plant and mill are in operational condition. The mill is operating in relatively poor condition and is currently being upgraded to bring it to good condition.

The Project has potential environmental liabilities due to underground mining activities, past and present,including:

• Surface disturbance and degradation including deforestation.• Waste rock and tailings from mining operations.• Possible contamination of soil and water by mercury, cyanide, arsenic, acid drainage, heavy

metals and solids from mining operations.

From geological evidence and laboratory results, combined with structural-geological analysis we can conclude:

1. The logging in the field and the laboratory results indicate that in FPM-PZ-03, various zones of quartz-sericitic alteration were intersected between 11 and 14m; followed by a zone of intense silicification in a dark colored rock, fine grained, banded, mylonitic and biotitic, until the possible contact with the vein was intersected between 17.5 and 20m with samples 3 and 4. The samplesassayed 5.6ppm and 4.6ppm respectively.

2. The displacement of the El Limon vein is between 18 and 20 m below Segment 4. This model can be reevaluated with the new holes programmed from the existing crosscut farther to the east.

3. As well there are other factors which support the existence of Segment 5, of the El Limon vein at depth, as in the present configuration of known faults, based on the underground mapping and interpretation, where Zone 4 corresponds to a zone of maximum distention and opening by reverse faulting, and which caused the maximum enrichment in this block, and whose characteristic show that possibly this ore chute continues at depth and has moved to the south as shown in Figure 4.

4. The Orogenic style of mineralization shown by the gold bearing quartz structures in the Zaragoza-Machuca district, indicates that in these areas of contact between Paleozoic terranes and transcurrent borders, which are subject to multiple orogenies, there are multiple metamorphic events, reaching high amphibolite facies and these events have the capacity to generate conditions of pressure and temperature which generate these types of deposits, and for this reason, there exists the possibility of multiple quartz veins encased in metamorphic terranes between fault zones and duplex fault zones with weak dips to the west, and for this reason there could exist multiple structures similar to El Limon which don’t outcrop and have been cut by the Otu Fault and other related faults. The only outcrops of the El Limon vein on surface, correspond to a 20 cm vein, white, milky, oxidized, with druses in the core and a grade of 4ppm Au.

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26.0 RECOMMENDATIONS

BETA recommends a two phase work program:

Phase 1Expenditure of $954,000 for 6-month mining and development activities;Expenditure of $1,750,000 for capital improvements to the mineral processing facilities and general site area;

Phase 2Completion of a 24-month mining plan by FPM;Completion of NI 43-101 compliant resource and reserve estimates

Phase 1

BETA has assisted in preparation of a 6 month mine development plan for FPM: the details and costs are shown in Table 18.1. Total cost is estimated at approximately $954,000, and 2,870 tonnes of ore are expected to be extracted in the process of implementation.

Three major goals of this plan are:1. Repair existing ventilation shaft to provide adequate ventilation to working areas2. Provide secondary egress from working areas by rehabilitating existing openings; provide

adequate manways, ladders and signs indicating escapeways; replace winch to increase worker safety.

3. Develop stopes and haulage levels to prepare for future production needs.

The work to be completed in this plan includes:

Rehabilitation of 100 meter ventilation raiseReactivation of 300 meter shaft from levels 2-4Replacement of winch, levels 0-6Development of 150 meters on level 7 Development of 150 meters on level 6 southDevelopment of stope #102 on level 6 – preparation for resuingDevelopment of stope #188 on level 7 – preparation for resuingDevelopment of new stope on level 7 – preparation for resuingRehabilitation of manways and ladders – shaft 0-5Rehabilitation of raises 5-6 and 6-8

The capital improvements recommended are sufficient to bring the plant back to full operation, eliminating the use of amalgamation on site. The mill is expected to have a full capacity of 200 tonnes per day.

Ponds and tailing facilities are to be cleaned up. The laboratory is to be upgraded in order to produce capacity for an appropriate quantity of repeatable determinations for an operation of this type.

Maintenance facilities and other buildings on site are recommended to be improved.

Phase 2

BETA recommends that FPM geologists create a 24-month mining plan in order to assure that exploration and development proceed well in advance of mining.

FPM mining engineers should complete the calculations of volume and gold grade of the existing known mineralization to estimate mineral resources and reserves.

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27.0 REFERENCES

Cediel, F., Shaw, R. P. & Cáceres, C., 2003. Tectonic Assembly of the Northern Andean Block.In: Bartolini, C., Buffler, R. T. & Blickwede, J., eds, The Circum-Gulf of Mexico and the Caribbean: Hydrocarbon habitats, basin formation, and plate tectonics. AmericanAssociation of Petroleum Geologists Memoir 79, p. 815-848.

Cediel, F. & Cáceres, C., 2000. Geological Map of Colombia. Bogotá, Colombia, Geotec Ltda,3rd edition. 7 thematic maps at 1:1,000,000 scale.

Emmons, W. H., 1937. Gold Deposits of the World. New York & London, McGraw-Hill BookCompany, Inc., 562 p.

Kantor, J. A. & Cameron, R. E., 2013. Technical Report on the Titiribi Project, Department ofAntioquia, Colombia. NI 43-101 technical report by Behre Dolbear & Company (USA), Inc.for Sunward Resources Limited, 9 September 2013, 187 p.

Kennan, L. & Pindell, J., 2009. Dextral shear, terrane accretion and basin formation in the NorthernAndes: best explained by interaction with a Pacific-derived Caribbean Plate? In: James, K.,Lorente, M.A. & Pindell, J. (eds), The Origin and Evolution of the Caribbean Plate. GeologicalSociety of London, Special Publication, Vol. 328, p. 487 - 531.

Lesage, G., Richards, J. P., Muehlenbachs, K. & Spell, T. L., 2013. Geochronology, Geochemistry,and Fluid Characterization of the Late Miocene Buriticá Gold Deposit, AntioquiaDepartment, Colombia. Economic Geology, vol. 108, p. 1067-1097.

Manco, J. D. & Dávila Bolívar, C., 2012. Geology Report, Minerales Córdoba S.A.S. Internalcompany report, May 2012, 57 p.

Mibex, 2013. Estudio de Magnetometría Terrestre Proyecto “Minerales Córdoba”, Municipio de PuertoLibertador Bijao, Departamento de Córdoba. Report for Minerales Córdoba S.A.S. by Mibex,Colombia, March 2013, 42 p.

Parsons, B., 2012. A NI 43-101 Mineral Resource Estimate on the Marmato Project, Colombia,21 June 2012. Report for Gran Colombia Gold Corp. by SRK Consulting (UK) Limited,187 p.

Redwood, S. D., 2011. Technical Report for the Córdoba Project, Department of Córdoba,Republic of Colombia. NI 43-101 technical report for Wesgold Minerals Inc. (nowCordoba Minerals Corp.), Vancouver, 65 p.

Restrepo, J. J. & Toussaint, J. F., 1988. Terranes and Continental Accretion in the ColombianAndes. Episodes, vol. 11, p. 189-193.

Shaw, R. P., 2002. A Technical Overview of the El Alacran Gold (Copper, Silver) Project,Municipality of Puerto Libertador, Department of Cordoba, Colombia. Report forSociedad Minera El Alacran S.O.M., 14 p.

Sillitoe, R. H., 2010. Porphyry Copper Systems. Economic Geology, vol. 105, p. 3-41.

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Sillitoe, R.H. 2008. Major gold deposits and belts of the North and South AmericanCordillers: distribution, tectomagmatic setting and metallogenic considerations; Economic Geology special paper, vol. 103, pp. 663-687.

Sillitoe, R. H., Jaramillo, L., Damon, P. E., Shafiqullah, M. & Escovar, R., 1982. Setting, Characteristics, and Age of the Andean Porphyry Copper Belt in Colombia. Economic Geology, vol. 77, p. 1837-1850.

Starling, T., 2012. Structural review of the Cordoba Project, Colombia. Report by TellurisConsulting Ltd. for Cordoba Minerals Corp., 20 p.

Taylor, B. E., 2007, Epithermal gold deposits, in Goodfellow, W. D., ed., Mineral Deposits ofCanada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution ofGeological Provinces, and Exploration Methods: Geological Association of Canada,Mineral Deposits Division, Special Publication No. 5, p. 113-139.

Vargas, H., 1998. Reservas y potencial en el proyecto El Alacrán, San Juan de Asis, Cordoba,Colombia. Report by Guacomo Ltda for Sociedad Minera El Alacran S.O.M., 24 p.

Vargas, H., 2001. Reservas Explotables en el Proyecto El Alacrán, San Juan de Asis, Cordoba,Colombia. Report for Sociedad Minera El Alacran S.O.M.

Vargas, H., 2002. El Alacrán Skarn Deposito de Cobre Oro Plata, Puerto Libertador, San Juan de Asis,Cordoba, Licencia No. 022-23, Colombia. Independent Reserves Report by Guamoco & CiaLtda Minerals Exploration for Sociedad Minera El Alacran S.O.M., October 2002, 50 p.

Vigar, A. J. & Recklies, M., 2012. Mineral Resource Estimate of the Buriticá Gold Project, Colombia.NI 43-101 technical report by Mining Associates Pty Limited for Continental Gold Limited,211 p.

Wilson, S. E., 2012. Technical Report, Bellhaven Copper & Gold Inc., La Mina Project,Antioquia, Republic of Colombia. Report by Scott E. Wilson Consulting Inc. forBellhaven Copper & Gold Inc., 15 August 2012, 144 p.

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APPENDIX A

FOUR POINTS MINING S.A.S.

MINING REGISTRY CERTIFICATESRPP No12011

National Mining AgencyDepartment of Mining Registry

July 27, 2015

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APPENDIX B

FOUR POINTS MINING S.A.S.

MINING REGISTRY CERTIFICATEExploration Concession No 620

National Mining AgencyDepartment of Mining Registry

May 13, 2011

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APPENDIX C

FOUR POINTS MINING S.A.S.

REPORT OF EXISTANCE AND LEGAL REPRESENTATIVE

Camara de Comercio de Bogota

May 15, 2015

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APPENDIX D

FOUR POINTS MINING S.A.S.

CERTIFICATE OF EXISTANCE AND REPRESENTATION

Camara de Comercio de Medellin para Antioquia

April 15, 2015

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