SARIALAN PROJECT

BALIKESIR, TURKEY

Gold Mining in Turkey

1st Gold Producer in Europe

15 Gold mines built in Turkey since 2000

Stable mining legislation

Strong govermental support

Low goverment royality

Full Liberal Financial Enviroment

Project Location

572 km NW of Ankara, 188 km NE of İzmir and 27 km NW of Balıkesir

License

Project History

2017 Geological

Mapping andStream, Rock

Sampling

2017 SoilSampling andGeophysical

Survey

<1 ppm Au(Soil)

2018 Start Drillingand Drill

GeochemicalStudies

1200 ppm Au(Drill)

2019 Continue of Resource Calculationand First Metallurgical

Testing

2020 First MRE Report Submitted for the Zone I.

Further Exploration Activities will continiue on

the Licence Area.

Keditasi

Outcrop

SA_32

Visible

Gold

Exploration Summary Collected Samples• 125# Stream sediment samples, up to 0,777 ppm Au

• 1519# Rock samples, up to 22,5 ppm Au

• 3937# Soil samples, up to >1 ppm Au

Geological Compilation Mapping• 1/10000 Scaled Geological and Structural Mapping

• 1/100 Scaled Outcrop Mapping in Zone I & II

Geophysical Surveying• Magnetic Measurement on 24.537 point

• IP/Res Surveying with 270,9 km

Drillings• 34.107,50 meters Drillhole

Metallurgy• Oxidized ore %85-96 Gold Recovery

• Sulphide ore %62-82 Gold Recovery

High Potential Region

SARIALAN

Sarıalan Structural Setting

SARIALAN

• The study area has structurally been shaped under the control of these faults

Geology Mineralization

• Mineralization is controlled by

E-W trending structural faults

• Breccias and massive silica

veins and veinlets

• Gold mineralization observed in

quartz veins and veinlet as

disseminated and co-exist with

copper mineralization

• Consistent metal association

(gold, arsenic, bismuth, copper,

silver, antimony)

Alteration

Alteration From Drillhole Samples

Specrometric measurementperformed on 7835 samples fromdrillings

Kaolinite, Jarocite, Dicite, Alunite, Montmorillinite minerals areobserved in argillic alteration

Epidote, Chlorite, Gypsum, Muscovite minerals are observedin prophylitic alteration

Silicification is characterized bymulti-phase breccia and massivesilica that controlled by structuralactivity

Surface Alteration

Prophylitic Alteration

Phyllic Alteration

Argillic Alteration

Silica Alteration

Mineralization

Brecciated Silica Sulphide Vein

Oxide Vuggy Silica Crackle Brecciated Silica

Visible Gold

Mineralization

SA_32AT 248,8 – 249,4m 1015 ppm Au

SA_26 54,1 – 55,20m 171,5 ppm Au

SA_08A 162,0 – 163,0m 53,9 ppm Au

Stream Geochemistry

• 25# Stream Sediment Samples

are covering all licence area

• Anomaly observed in North side

gives 0,409 ppm Au, 0,36 ppm

Ag and South side gives 0,777

ppm Au, 0,3 ppm Ag

Rock Geochemistry

• Rock Samples were

collected from silica

outcrops and altered

zones generally

• Totally 519# rock

samples were collected

from all over the licence

area

• Higher anomalies were

obtained from Keditasi

Outcrop as values of

22,5 ppm Au, 126 ppm

Ag

2,5 Km

Soil Geochemistry

• Totally 1937# soil samples werecollected from all over the licence area

• E-W trending zone with the length of 2,5 km can be observed on soilanomalies from those samples

• In the West part (zone II), 2 samplesgive over grade (>1 ppm Au) anomaly

Geophysic

Area

Geophysics

As a result of the

surface studies, the

licence area is divided

into 5 different

potential zones

• Within the scope

of geophysical

study, magnetic

measurements

were made on

24.537 points

• Totally 270,9 km

IP/Res

measurements

were made on

134 lines

Geophysics

Google Earth view of total magnetic anomally at zone I and zone II

Geophysics

• In zone II, higher chargeability and resistivity values are seen than in zone I.

• This indicates that the high sulfidation system is approaching towards the zone II

Drilling

• A total of 115 diamond drillholes (historicals included)

• Total drills 34.000 meter full diamond core (2 rigs still operational)

• Purpose of the drillholes is to test continuation of silica veins(let) that

observed at the surface

SA_32AT 248,8 – 249,4m 1015 ppm Au

SA_26 54,1 – 55,20m 171,5 ppm Au

SA_32A 284,1 – 285,0m 1200 ppm Au

Summary of Drillings

First Resource Estimation

• Inverse distance weighting method is used for initialresource estimation

• CoG is 0,3 g/t

• Resource calculation for the Zone I is conluded.Reserve, Technology and Budgeting Studies hasstarted for this particular focus area.

• Overall resource figures are being updated thanks tostrike along continuing drilling operations andfeasible intersections.

Metallurgy

• Go on / Go off Metallurgical –technical tests were performed in the Department of MiningEngineering at METU

• Oxidized ore %85-96 Gold Recovery

• Sulphide ore %62-82 Gold Recovery

• Further detailed technological testsprogramme is being run forpit&process optimisation studies.

Upside Potential

Work Plan 2020

• Drillings for resource calculation andgeotechnical purposes will continue

• Proposed drillholes in high potential area willdrill

• Update technical report and resourceestimation

• Detailed metallurgical test will continue

• Update 3D geological modelling

• Update 3D ore body and grade modelling

• Geological outcrop mapping in a scale of 1/100 for the zone II, III and IV

• Additional 15.000 meters of full core drilling is budgeted and planned for the rest of the year.