Resources Statement

Sisorta

The following statement of Mineral Resources conforms to the Australasian Code for Reporting Exploration, Mineral Resources and Ore Reserves (JORC code) 2004 Edition.

All tonnages reported are as dry metric tonnes. Minor discrepancies may occur due to rounding to appropriate significant figures.

JORC Code Mineral Resource estimate for the Sisorta Project comprises:

• Indicated and Inferred Resource:
  14.55Mt at 0.6g/t Au for 303,000oz Au
  at a 0.40 g/t Au cutoff.
• Oxide zone Indicated and Inferred Mineral Resource:
  10.03Mt at 0.7g/t Au containing 223,000oz Au,
  almost all of which occurs at a depth of 50m or less.

Mineral Resources

Estimation of Mineral Resources at Sisorta utilise diamond drill & RC assays from within mineralised zones. The Sisorta Resource estimate is quoted for blocks with a grade of greater than 0.4g/t gold. Other key parameters used in its determination were a 0.2g/t gold lower cutoff to define the mineralized domains and a variable capping (between 6.85/t gold and 10.5g/t gold for the bulk of the resource) for domains based on their individual sample populations.

Additional parameters used in this resource estimate are set out in Appendix 1.

The Mineral Resource was independently estimated by Giroux Consultants Ltd of Vancouver, BC, Canada, using 72 diamond drillholes.

Appendix 1 - Additional details pertaining to Sisorta Resource Estimation

The resource is estimated for blocks with a grade of greater than 0.4g/t gold. Differences may occur due to rounding errors

• The Sisorta gold deposit is located 25km to the northeast of the town of Koyulhisar in Northeastern Turkey
• A total of 72 diamond holes were drilled into the Sisorta project area, for a combined length of 10,039m. Of these, 69 diamond holes penetrated the area of the present resource model.
• All 69 diamond core collars were surveyed by DGPS.
• Downhole surveys were measured at approximately 40 metre intervals, by single shot camera.
• Wireframed domains capturing gold mineralisation within an envelope encapsulating samples of greater than 0. 2g/t gold were modeled. A total of five separate domains were modeled (made up of nine individual wireframes) and formed the basis for the resource estimate
• A wireframed surface representing the bottom of complete oxidation (BOCO) was modeled
• A block model was constructed for each deposit using wireframed mineralisation and oxide domains. A block size of 10m (X) x 10m (Y) x 10m (Z) was constructed, with needling calculations carried out in order to determine percentages of mineralization and oxide domains within individual blocks. The extent of the block model is summarized in Table A.
• All drill samples were composited to five metre lengths, honouring domain boundaries
• Each domain was estimated separately for gold and silver by ordinary kriging using only composites from within that domain. Kriging was completed in a series of passes with expanding search ellipse dimensions.
• Capping levels, based on the identification of erratic high values within individual domains, are summarised in Table B.
• Within the East and West Domains pairwise relative semivariograms were produced in the directions along strike, down dip and across dip. Nested spherical models were fit to each direction with a geometric anisotropy demonstrated. Within the waste between the modeled solids isotropic nested spherical models were fit to the data. For the remaining domains there was insufficient data to develop semivariograms.
• Bulk densities were assigned on the basis of 1618 specific gravity determinations on drillcore from oxide, sulphide and transitional material. Based on this information, oxide material was assigned a bulk density of 2.38 t/m3 and all sulphide and transitional material was assigned a bulk density of 2.69 t/m3.
• The reported resource has been classified as a combination of indicated and inferred. The indicated portion of the resource is supported by at least 4 composites within two separate drillholes within ½ of the semivariogram range for each individual domain (see Table C). Resource blocks with a minimum of 4 composites lying within pass 3 and 4 as defined by Table C were classified as inferred.
• The classification is supported by a sound level of QAQC checks on assay data, and verified drill hole collar positions and down hole surveys.