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THE PUCACORRAL PROPERTY NI 43-101 UUTECHNICAL REPORT

(PROVINCE OF HUAROCHIRI,

DEPARTAMENT OF LIMA, PERU)

- Prepared for -

BCGold Corp.

Suite 520 – 800 West Pender Street Vancouver, British Columbia

V6C 2V6 - Canada

- Prepared by – Victor Jaramillo, M.Sc.A.,P.Geo

Discover Geological Consultants Inc.

November 30, 2016

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TABLE OF CONTENTS SECTION PAGE

1.0 Summary .................................................................................................................. 5 2.0 INTRODUCTION AND TERMS OF REFERENCE ......................................... 6 2.1 Terms of Reference ................................................................................................. 6 2.2 Scope, Sources of Information and Disclaimer .................................................... 7 2.3 Units .......................................................................................................................... 7 3.0 RELIANCE ON OTHER EXPERTS................................................................. 8 4.0 PROPERTY DESCRIPTION AND LOCATION…........................................... 8 4.1 Property Location ................................................................................................ 8 4.2 Mining Concessions ............................................................................................. 9 4.3 Concession Title, Rights, Fees, & Requirements .............................................. 11 4.4 Underlying Agreements ......................................................................................... 13

5.0 ACCESSIBILITY, CLIMATE, RESOURCES AND INFRASTRUCTURE .. 15 5.1 Accessibility........................................................................................................... 15 5.2 Regional Population Centers ............................................................................... 15 5.3 Topography, Elevation, Vegetation .................................................................... 15 5.4 Climate ..................................................................................................................... 16 5.5 Infrastructure................................................................................................................ 17

6.0 HISTORY ................................................................................................................ 17 7.0 GEOLOGICAL SETTING .................................................................................... 18 7.1 Regional Geology .................................................................................................. 18 7.2 Property Geology.................................................................................................. 18 8.0 DEPOSIT TYPE ..................................................................................................... 22

9.0 MINERALIZATION .............................................................................................. 22 9.1 Breccia Veins (Grab Samples) ............................................................................ 22 9.2 Underground Sampling of Breccia Veins........................................................... 29 9.3 Underground Mapping of Breccia Veins ........................................................... 32 9.4 Surface Mapping and Sampling of Breccia Veins ............................................. 32

10.0 EXPLORATION ..................................................................................................... 34 11.0 DRILLING ............................................................................................................... 34 12.0 SAMPLING METHOD AND APPROACH ........................................................ 34

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13.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY ............................. 35 14.0 DATA VERIFICATION ........................................................................................ 36 15.0 ADJACENT PROPERTIES .................................................................................. 41

16.0 MINERAL PROCESSING AND METALLURGICAL TESTING .................. 41 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ............. 41 18.0 OTHER RELEVANT DATA AND INFORMATION ........................................ 41 19.0 INTERPRETATION AND CONCLUSIONS ...................................................... 41 20.0 RECOMMENDATIONS ........................................................................................ 43 21.0 REFERENCES ........................................................................................................ 44 22.0 DATE AND SIGNATURE PAGE ......................................................................... 46 23.0 ILLUSTRATIONS .................................................................................................. 47

LIST OF TABLES

1. List of Mineral Concessions Owned by Cima de Oro ......................................................9 2. List of Mineral Concessions owned by Cerro de Oro Tres ............................................10 3. Acquisition of Cerro de Oro Tres - Schedule of Payments .......................................... 14 4. Breccia types with assay results from Lourdes ............................................................. 23 5. Breccia types with assay results from Sairita ...................................................................27 6. Lourdes Vein Underground Chip Channel Samples ..................................................... 30 7. Gianella Vein Underground Chip Channel Samples ..................................................... 30 8. Sairita Vein Underground Chip Channel Samples ........................................................ 30 9. Surface Vein (S-Vein) Channel Sample .......................................................................... 32 10. Gianella Vein Surface Chip Channel Sample ................................................................. 33 11. Elements analyzed by ME-ICP61a .................................................................................. 36 12. Analytical method for gold showing detection limits and units reported .................... 36 13. Standard AGM-04 ............................................................................................................. 37 14. Standard PLSUL-01 .......................................................................................................... 37 15. Standard PLM-04 .............................................................................................................. 37 16. Blank Standard .................................................................................................................. 38 17. Statistical Summary of Standards used for copper ........................................................ 38 18. Statistical Summary of Standards used for lead ............................................................ 38 19. Coarse blank Assay results ............................................................................................... 39 20. Statistical summary of duplicate samples for copper and lead ..................................... 40 21. Distance and Direction from nearby mines .................................................................... 41 22. 2017 Exploration budget ................................................................................................... 43

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LIST OF FIGURES 1. Pucacorral Project Location Map ..................................................................................... 8 2. Pucacorral Property Concession Area Map ....................................................................11 3. Regional Population Centers near Pucacorral ............................................................... 18 4. Generalized Regional Geology Map Showing Outline of Property............................... 20 5. San Mateo Mine Area Geology Map – Scale 1:2500 ....................................................... 21 6. Copper variogram for standard AGM-04 ...................................................................... 38 7. Lead variogram for standard AGM-04 .......................................................................... 39 8. Copper variogram of duplicate samples ......................................................................... 40 9. Lead variogram of duplicate samples .............................................................................. 40

LIST OF PLATES 1. Porphyritic Andesite with quartz veining ...................................................................... 19 2. Lourdes Breccia Vein Type 1 ............................................................................................23 3. Lourdes Breccia Vein Type 2 ........................................................................................... 24 4. Lourdes Breccia Vein Type 3 ........................................................................................... 24 5. Lourdes Breccia Vein Type 4.. ......................................................................................... 25 6. Lourdes Breccia Vein Type 5 ........................................................................................... 25 7. Lourdes Breccia Vein Type 6 ........................................................................................... 26 8. Lourdes Breccia Vein Type 7 ............................................................................................ 26 9. Lourdes Breccia Vein Type 8 ........................................................................................... 27 10. Sairita Breccia Vein Type 1 .............................................................................................. 28 11. Sairita Breccia Vein Type 2 .............................................................................................. 28 12. Sairita Breccia Vein Type 3 .............................................................................................. 28 13. A 3-D Spot satellite image showing the location of the main adits at Pucacorral ....... 30 14. Sairita Breccia Vein (underground) sample 247660 – Width 1.67m............................ 32 15. Gianella Vein Surface Chip Channel Sample (247731) ................................................. 33 16. View of top surface area near the Gianella Surface Sample 247731 ............................ 34

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1.0 SUMMARY Victor A. Jaramillo P. Geo. of Discover Geological Consultants Inc. was retained by BCGold Corp. to prepare a Canadian National Instrument 43-101 (NI 43-101) compliant Technical Report on the poly-metallic Pucacorral Property in Peru. This report has been prepared in accordance with the guidelines provided in National Instrument 43-101 ("NI 43-101"), Standards of Disclosure for Mineral Projects, dated December 23, 2005. The Pucacorral property is comprised of 13 mineral concessions; 2 owned each by Minera Chanape and Cima de Oro, wholly owned Peruvian subsidiaries of BCGold, and an additional 9 concessions under option by Cima de Oro from SMRL Cerro de Oro Tres. The Pucacorral Property has seen in the past limited mining activity in an area known as the San Mateo Mine, where breccia type veins containing copper, silver, lead, zinc and gold was the target. The Pucacorral Property is located in the western flank of the Andes Mountains 90 kilometres east-northeast of the City of Lima, Peru. It lies in the Miocene Central Peru Porphyry Copper Belt, known to host numerous, silver-base metal veins and large porphyry deposits. Access to the Property is by 4 x 4 truck. The area is mountainous with elevations ranging from approximately 4,500 at the Pucacorral valley mouth to more than 5,200 metres above sea level. The Property has a significant alteration zone on which several elongated vein-like base metal breccias have been identified. BCGold has not completed previous exploration work at Pucacorral. The predominant rock types at the Property are early Tertiary andesitic volcanic flows, interlayered with tuffs and rhyolites of the Rimac group and overlain disconformably by the Millotingo Formation; the composite thickness of these units is 700 m to 1,000 m. The Rimac hosts mineralization at the San Mateo Mine area. The Rimac group has been broadly folded and warped but is not regionally metamorphosed. During the middle to late Tertiary these rocks were intruded by various bodies of quartz monzonite and diorite. Numerous base metal rich breccia type veins are associated with the intrusions. Pucacorral is centered on the historic San Mateo mine developed in the late 1960’s by Minera San Mateo, a small Peruvian miner focused on exploiting base metal vein type breccias. Three breccia veins at the San Mateo mine; Lourdes, Gianella, Sairita were partially mined. Underground mine workings include nearly 800 meters of drifts and over 130 meters of shafts. During April to June 2012 American Silver Cia. Minera S.A.C. attempted to revitalize the underground workings at Charito, Gringa, Lourdes, Gianella and Cristina, located in the flank of the Sullac Creek Valley, and Rocío y Sairita in the the Suerococha Creek flank (Yucra R 2012, 2014. Surface and underground mapping and sampling of the main mineralized veins was completed. During October and November 2016 a Phase I exploration program was carried out at the Pucacorral Property by BCGold. Exploration work included detailed geological mapping of

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tabular or elongated vein-like breccia bodies and selective sampling of a number of old mine workings, existing mineral stockpiles and waste rock dumps. Exploration results confirm the presence of a potential copper porphyry system at Pucacorral, within a zone measuring at least 1.5 km x 1.5 km, comprised of hydrothermally altered porphyry, breccias, veins, and wall rock. The porphyry discovery occurs within 30 metres of the entrance to the lower two levels of the Lourdes vein and approximately 70 metres into the lower adit on the Sairita vein, where it is open-ended. While a significant portion of the breccia veins in mine workings have been mapped during the recent Phase I exploration program, approximately one-third of them remain largely unmapped and almost all remain unmapped on the surface. A Phase II exploration program is highly recommended comprised of surface and underground geological mapping and sampling, completion of an 3D IP-res and mag geophysical survey designed to enhance drill targeting for both the vein-type breccia occurrences and the possible underlying mineralized porphyry at Pucacorral. 2.0 INTRODUCTION This technical report was prepared by the writer at the request of BCGold Corp. (“BCGold”), a Vancouver-based resource public company listed on the TSX Venture Exchange. The purpose of the report is to outline the recent exploration work and results. This technical report was prepared for BCGold in compliance with standards laid out by National Instrument 43-101 and Form 43-101F (Standards of Disclosure for Mineral Projects). Sources of information include 1:100,000 topographic maps prepared by the Instituto Geográfico Nacional (Perú), geological maps and reports from the Instituto Geológico Minero y Metalúrgico (INGEMMET Perú), reports from Minero Peru, reports by other consultants and particularly, from geological information obtained from the recent exploration program completed by BCGold. The writer managed the exploration program during October 1st to November 17th, 2016 in Peru and was responsible for all geological, administrative, and logistical aspects. 2.1 TERMS OF REFERENCE Terms in this technical report are used as defined in the National Instrument 43-101, Standards of Disclosure for Terms of Mineral Projects, Part I: Application, Definitions and Interpretation. This report is structured following the outline given in Technical Report Form 43-101F1.

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2.2 SCOPE, SOURCES OF INFORMATION AND DISCLAIMER In preparing this report, the author has relied in part on geological reports and maps, miscellaneous technical papers, published government reports and historical documents listed in the “References” section at the conclusion of this report, public information and the writer’s field experience. This report is based on information known to the writer as of October 1, 2016. All measurement units used in this report are metric, and currency is expressed in US dollars unless stated otherwise. Additionally, the author met several times with Mr. Adam Szybinski, Vice President Exploration – South America for BCGold, at their Vancouver office, during which time background information such as reports and maps concerning the property was made available. The results and opinions expressed in this report are conditional upon the aforementioned geological and legal information being current, accurate, and complete as of the date of this report, and that no information has been withheld which would affect the conclusions made herein. 2.3 UNITS Unless explicitly stated, all units presented in this report are in the Metric System (i.e. metric tonnes, kilometers (km), centimeters (cm), millimeters (mm), percent (%), and parts per million (ppm)). Refer to table below for standard conversions from Standard Imperial units to the International System of Units (or metric units).

To Convert from Imperial Units To Metric Multiply by: Acres Hectares 0.404687 Feet Meters 0.30480

Miles Kilometers 1.609344 Tons Tonnes 0.907185

Troy Ounces/ton Grams /tonne 34.2857

1 mile = 1.609 kilometers 2,000 pounds (short ton) = 0.907 tonnes 1 yard = 0.9144 meters 1 ounce (troy) = 31.1035 grams 1 acre = 0.405 hectares 1 ounce (troy)/ton = 34.2857 grams/tonne The following is a list of abbreviations used throughout this report for technical terms:

Ag silver Au gold Cu copper g/t grams per tonne ha hectare(s) IP/RES induced polarization and resistivity (survey) kg kilogram(s) km kilometer(s)

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m meter(s) oz ounce Pb lead ppb parts per billion ppm parts per million tonne metric tonne (2,204.6 pounds) Zn zinc

3.0 RELIANCE ON OTHER EXPERTS The author has not completed an independent title search of the concessions and as such expresses no opinion as to the ownership status of the Property. The author has relied on the representations and warranties made by BCGold Corp. through an opinion by Lima based law firm Estudio Egusquiza Sociedad Civil de Responsabilidad Limitada entitled “Properties Report of the “CIMA DE ORO PROJECT”, dated April 28, 2016, prepared for BCGold. 4.0 PROPERTY DESCRIPTION AND LOCATION 4.1 Property Location The Property is located in the central Andes of Peru (Figure 1) in the District of San Mateo, Province of Huarochiri, Department of Lima, within the Matucana 24-k map (1:100,000 scale) of the Peruvian National Topographic System (NTS).

FIGURE 1: Pucacorral Project Location Map. Basemap by InterraRMG, 2007.

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4.2 Mining Concessions BCGold Corp. through its wholly owned subsidiary, Cima de Oro SAC (Peru) is the registered owner of a 100% interest in the following mineral concessions which comprise the Pucacorral Property:

Table 1: List of Mineral Concessions Owned by Cima de Oro

BCGold Corp. through its wholly owned subsidiary, Minera Chanape SAC (Peru) is also the registered owner of a 100% interest in two of the following mineral concessions which are included in the Pucacorral Property: Name Code Titleholder Area ha Pucacorral – Chanape 010121907 MINERA CHANAPE S.A.C. 792.69 Pacocha Este 010122207 MINERA CHANAPE S.A.C. 476.18 In addition, Cima de Oro has an option agreement (the “Tres Agreement”) to acquire 100% of the issued and outstanding shares of SMRL Cerro de Oro Tres (“Tres”), a private Peruvian company that in turn holds 9 additional mineral concessions. SMRL Cerro de Oro Tres is the registered owner of a 100% interest in the following nine mineral concessions:

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Table 2: List of Mineral Concessions owned by Cerro de Oro Tres

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FIGURE 2: Pucacorral Property Concession Area Map The total area that comprises the Pucacorral Property consists of a total of 3,564.9 hectares. 4.3 Concession Title, Rights, Fees & Requirements Ownership of mineral claims is controlled by mining concessions that are established using UTM co-ordinates to define the corners of an area of interest, measured in hectares. New mining concessions have to be of at least 100 hectares in size (1 km2), and must be oriented in a north-south or east-west direction. Concessions that pre-date 1992 are based on the ‘punto de partida’ system and can be of any orientation. To be enforceable, any and all transactions and contracts pertaining to mining concessions must be entered into a public deed and registered at INGEMMET (Geological, Mineral and Metallurgical Survey of Peru).

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The holder of a Peruvian mining concession is entitled to all the protection afforded to holders of private property rights under the Peruvian Constitution, the Civil Code and other applicable laws. A Peruvian mining concession is a property-related right that is distinct and independent from the ownership of land on which it is located, even when both a mining concession and the land on which it is based belong to the same person. The rights granted by a mining concession are defensible against third parties, are transferable and chargeable and, in general, may be the subject of any transaction or contract. Mining titles are irrevocable and perpetual, as long as the required annual maintenance fees (derecho vigencia) are up to date and fully paid to the Ministry, by 30 June of each year following granting of a concession. The fees are paid in advance. The annual fee for metallic mineral concessions is US$3 per hectare for each concession that is either actually acquired or pending (petitorio). Surface Rights & Permitting: The Peruvian government requires any property developer to either purchase the surface rights or make an appropriate agreement with the surface rights owner, for access to a property. In the case of mining concession holders, their concession rights do not confer ownership of the land - the owner of a mining concession must instead deal with the registered land owner to obtain the right of access to fulfill the production obligations inherent in the concession grant. No work can proceed on a mineral concession without a community agreement. Any type of exploration involving ground disturbance, apart from mapping, taking samples at surface and geophysical surveys, requires a permit. Acquiring a permit is a process requiring preparation, site visits by specialists and community agreements. This task is usually out-sourced to consultants and specialists that are able to recognize local needs, are aware of the details of government regulations and are familiar with the mining industry and the requirement to do exploration. A background summary of the permitting process includes:

1. There are two types of exploration/drilling permits in Peru. The first type (Category 1) is for drill programs that involve less than 20 drill pads and less than 10 hectares of ground disturbance. That includes road building. This permit requires a DIA (Declaración de Impacto Ambiental). A drill pad may be used for multiple drill holes as long as this detailed in the declaration.

2. DIAs, if they comply with all requirements, may be granted after 20 working days unless the initial review finds causes for concern.

3. Programs over 20 drill pads or with more than 10 hectares of disturbance need to file for an EIA-sd or Semi-detailed Environmental Impact Assessment (Category II). There is a review process that includes requests for comments from the Water Authority, local governments, community and Ministry of Culture.

4. All reports are filed electronically, and all communication from the Ministry is now posted online.

5. Once the DIA and EIA-sd are granted the Company will need an Autorización de Inicio de Actividades. This second permit must include the following: a legal agreement with the registered owner of the land - in the case of communities it needs to have two thirds approval from a general assembly; a CIRA (Archeological certificate) granted by the

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regional cultural authority certifying that the work area is free of archeological or cultural items of significance, and a water permit from the regional water board. Once all these permits are in place, an Autorización de Inicio de Actividades is granted.

6. The Ministry will ask the Ministry of Culture for comments. This means that additional community outreach programs may be needed, particularly if in a region where quechua is spoken. Quechua is the language spoken by many indigenous people of the Andean region. Quechua is not commonly spoken in the region of the Property. Archeological monitoring during ground disturbance is also a requirement.

7. Planning requires drill pads to be specified with 50-metre accuracy. Drill sites can be modified using ITS applications, so long as the modified pads are within the work area (or polygon) specified in the original permit.

Validity fees or ‘Pago de Vigencia’, is the fee, or tax, that is collected annually from holders of mineral concessions. It is currently US$3 per hectare. The penalty fees are an added tax imposed on mineral concession owners that have not achieved a minimum annual commercial production or invested in exploration. The law states that the tax will be that the minimum annual production should be equivalent to one (1) Tributary Tax Unit (UIT) which is currently S/ 3,950.00 (Soles) per year per hectare for metallic substances. If production has not been achieved after the ten- year anniversary the owner of the mining concession must instead pay, starting on the first semester of the eleventh year, a penalty payment equal to the 10% of the required minimum annual production. If the owner of the mining concession continues to be in default after the fifteenth-year anniversary the mining concession may expire. Both validity and penalty fees are due June 30th of the calendar year. Fees payable may be up to 12 months in arrears, but failure to pay after that period of time results in forfeiture of title and loss of the concession. All Concessions listed in Tables 1 and 2 are in good standing. All validity fees and any penalties have been paid. Ownership details of the above mentioned claims were supplied by BCGold Corp. and have not been independently verified by the author. Mining Law: The General Mining Law of Peru is administered by the Ministry of Energy and Mines (Ministerio de Energia y Minas). The law was changed in the mid-1990s to encourage the development of the country’s considerable mineral resources. Details of the law were consolidated in a ‘Single Revised Text of the General Mining Law’ of 1992 (government document D.S. No. 014-92-EM, 19926). It defines and regulates different categories of mining activities, ranging from sampling and prospecting to development, mining and processing. 4.4 Underlying Agreements In order to maintain and exercise its option Cima de Oro must make firm and optional payments over a five-year term (but may be exercised in full at any time in that period) commencing upon registration of the option agreement with the Ministry of Mines:

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Obligation  Amount (US dollars)

Interest Earned in Tres (%) 

Status 

Ten days from registration  Firm 40,000 16.6  Completed

6 months from registration  Optional 60,000 23.26  ‐

12 months from registration  Optional 50,000 ‐

18 months from registration  Optional 50,000 29.92  ‐

24 months from registration  Optional 75,000 ‐

30 months from registration  Optional 75,000 39.92  ‐

36 months from registration  Optional 90,000 ‐

42 months from registration  Optional 51.92  ‐

60 months from registration  Optional 970,000 100.00  ‐

Total  $ 1,500,000 100%  Table 3: Acquisition of Cerro de Oro Tres - Schedule of Payments For the purpose of the acquisition of Cima de Oro, the agreement allows BCGold to acquire all of the issued and outstanding shares of Cima in exchange for shares of BCGold and cash payments. Upon closing BCGold will acquire all of the issued and outstanding shares of Cima through the issuance of 8,000,000 shares of BCGold and a payment of $32,000 to the vendors. This ia a firm commitment, however the acquisition of Tres is optional, thus BCGold is to reserve up to an additional 8,000,000 shares (the “Tres Agreement Shares”) of BCGold, to be issued on a pro rata basis coincident with the schedule of payments as laid out in Table 3 above. It has been agreed that BCGold may, in its sole discretion, elect to cease making payments under the Tres Agreement in which case BCGold shall not be required to issue any of the Tres Agreement Shares then remaining unissued. Royalties: There are no royalties registered against any of the concession owned by Cima de Oro or Tres. Peru has a sliding scale gross over-riding royalty on mining. Calculation of the amount payable is made monthly and is based on the gross value of the concentrate sold (or its equivalent) using international metal prices as the base for establishing the value of metal. The sliding scale is:

1. First stage: up to US$60 million annual revenue; 1.0 percent of gross value; 2. Second stage: in excess of US$60 million up to US$120 million annual value; 2.0 percent of gross value; and 3. Third stage: in excess of US$120 million annual value; 3.0 percent of gross value.

Environment: To the best of the writer’s knowledge here are no known environmental liabilities within the property limits. Historic tunnels, adits, roads and rock dumps have been previously located and should be re-stated and included in Cima de Oro’s DIA and/or EIA. This will help limit the current owner’s liability. At present Cima de Oro has an agreement with the town of Parac for access, has an agreement with Comunidad de Checa, and is working on an agreement with the community of San Antonio. At the Pucacorral Property the surface rights belong mainly to one community: Comunidad Campesina de San Antonio - District of San Mateo, with vestiges that belong to the Comunidad

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de Checa and Comunidad de Concha – District of San Damian, and Comunidad de Lupo, District Huarochiri . All are located within the Province of Huarochiri, Department of Lima. 5.0 ACCESSIBILITY, CLIMATE, RESOURCES AND INFRASTRUCTURE 5.1 Accessibility

Access to the Property is via paved highways to the town of San Mateo approximately 95 kilometers from Lima. San Mateo (elevation 3200 m) is a regional transportation center and mining community of approximately 4,000 inhabitants. From San Mateo (see figure 3 below) a narrow secondary gravel road leads uphill and east-southeast to the village of San José de Parac (elevation 4,140 m) then to the abandoned or inactive mines at Millotingo (elevation 4,200 m) and Pacococha (elevation 4,400 m), a road-distance of approximately 28 kilometers. At Pacococha the road forks, with the left-hand road leading to the abandoned mining camp of Shullac and the center of the Pucacorral Property.

The roads are well used by residential and mining vehicles as far as San José de Parac but currently there is no mining further to the south. Upgrading and repair is required at Pacococha due to erosion of the road bed and mine dump sloughing (Blackwell J., 2016), which is currently bypassed by a temporary detour.

5.2 Regional Population Centers The town of San Mateo, with approximately 4,500 inhabitants, is the only population center closest to the Property and is located approximately 30 km northwest of the Pucacorral property. 5.3 Topography, Elevation and Vegetation Topographic relief in the area is characterized by a high, ancient peneplain at 5,000 meters deeply incised by narrow canyons to 3,400 meters. Canyon walls north of Millotingo are steep and hazardous, south of which the valleys tend to be broad at 4,200 to 4,500 meters. Drainage from the Property is north from the abandoned mining camp of Shullac. From Shullac a series of creeks and swamps drain northerly to San José de Parac then enter a tight canyon (Quebrada) and the Parac which flows into the Rimac River at Tamboraque. The Rimac flows 80 km southwest to Lima, where it is an important source of drinking water (Blackwell J., 2016). Ground cover consists of various types of short grasses (“ichu” mainly) and small brush near drainages in the low terrain to barren rock in the upper elevations. 5.4 Climate The climate in the area is highly variable. Annual temperatures in the area range from just below 0°C to 25°C with periods of heavy precipitation from December to April. Dense fog is common

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during the rainy season. The dry season is from May through November and is characterized by no rainfall.

FIGURE 3: Regional Population Centers and infrastructure near Pucacorral; Basemap from INGEMMET, Peru, 2016.

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5.5 Infrastructure Three-phase power is available at San José de Parac and could be readily extended to the Property. Power poles are present near the Property, evidence that previous operations used electricity supplied from the national grid. The nearest electricity generation plant is the hydroelectric power plant which supplies the Coricancha mine and is located at the entrance to the San Mateo town. The Central Railway passes through the Rimac River valley, parallel to the Central Highway. It is likely that any mining operations will construct housing, potential tailings storage areas, potential waste disposal areas, heap leach pad areas, or potential processing plant sites at lower elevations, possibly at existing sites off-property (Blackwell J., 2016). 6.0 HISTORY According to Zuniga y Guzman, E. et. Al., 1949, the mines in the region were mined at a very small scale from 1877 by a Mr. A. Delboy and other individuals who built a smelter in the Germania area. In 1907 Mr. Lizandro A. Proaño began mining at a larger scale with the use of drills called “electro pneumatic” hence increasing production. Mineralized rock was transported on the back of llamas to a smelter in Tamboraque (Coricancha). Later during 1965 Compañia Minera San Mateo S.A. (“Cia. San Mateo”) began surface exploration, underground development and limited mining. Cia. San Mateo developed 500 meters of drifts and 70 meters of raises and ore passes. Subsequently Banco Minero pledged debt-funding and an additional 287 meters of adits and drifts accompanied by over 62 meters of raises and ore passes were completed. Cia. San Mateo also “mined” 5,600 metric tonnes of “mineralized rock” which was shipped to the concentrator at Pacococha with concentrates sold to the Banco Minero. In July 1970 Banco Minero after a review decided to suspend economic aid to the company, foreclosed and then removed all equipment, machinery and tools that had been pledged as collateral by Cia. San Mateo. The Banco Minero-funded work at Cia, San Mateo was important as it developed a better geological understanding of the veins by means of the underground development. The subsequent history is very uncertain. The lands around the mine have been held but there is little technical information available until the current decade. In 2012 a report was written for Compañia Minera American Silver S.A.C. (R. Yucra, 2012) with an outline of the geology, mineralization and development of the property. This work was conducted from April to July 2012, including both surface and underground geological mapping of the several veins. In August 2013 Cima de Oro (shareholders at this time were Circum-Pacific and Ms. Jenny Egusquiza, a Peruvian lawyer) entered into an agreement with the owners of the concessions and their respective companies and transferred this agreement to Compañia Minera Shullac S.A.C (shareholders of “Shullac” were Circum-Pacific, Jenny Egusquiza and Laurie Ziatas). In November 2013 an Australian company, Matriz Resources Limited (“Matriz”), and its Peruvian subsidiary, Suerococha S.A.C., entered into a contract to purchase the Yauri concessions from the shareholders of Shullac. By March 2014 Matriz was in default of the agreement and Matriz was put on notice. In April 2015 a Deed of Compromise and Release was signed between the Minera Shullac shareholders and Matriz-Suerococha, and the agreement was terminated. The concessions and Cima de Oro were returned to the Yauri family interests and Ziatas ceased to be a shareholder of Shullac. In October 2015 the 9

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concessions were combined in one company, SMRL Cerro de Oro Tres, and a new agreement was reached between Cerro and Cima de Oro (Blackwell J., 2016). 7.0 GEOLOGICAL SETTING 7.1 REGIONAL GEOLOGY In the region, the geology is comprised of Tertiary andesitic volcanics and local sedimentary units intruded by diorite and monzonite stocks. The sedimentary rocks that represent the base of the Viso-Aruri volcanic sequence consists of tightly folded, beds of limestone of the Jumasha Formation. They appear in the bottom of the Rimac River, near the town of Viso. This formation hosts vein-type polymetallic mines. The over ly ing sequence consists of tertiary andesitic volcanics (1,500 m thick) that belong to the Rimac Formation characterized by alternating layers of massive and porphyritic, grey to greenish-grey-purple andesite. The porphyritic beds alternate between massive andesite and breccia and vary in thickness from 10 to 40 m. The volcanic beds are sub- horizontal to slightly dipping at 15 degrees to the SW. Other occurrences of intrusive rocks correspond to NE-NNE trending, sub vertical dikes cutting the volcanic rocks. The area has been subjected to a massive structural compression, which has produced folding and a strong fracturing pattern on a regional scale. I t presents several structural domains such as : a) faults and regional fractures trending NW-SE, b) NS and NNE trending faults, c) NNE to NE fractures that allowed the intrusions of dikes; and d) NNE-SSW mineralized fractures (N. Díaz and L. Band, 1995). See Figure 4 below. 7.2 PROPERTY GEOLOGY The predominant rock types at the Property (Figure 4) are early Tertiary andesitic volcanic flows, interlayered with tuffs and rhyolites of the Rimac group and overlain disconformably by the Millotingo Formation; the composite thickness of these units is 700 m to 1,000 m. The Rimac hosts breccia vein mineralization at San Mateo. The Rimac has been broadly folded and warped but is not regionally metamorphosed. The Rimac group is a sequence of volcanic flows, tuffs and breccias interbedded with sedimentary units. The volcanic rocks are mainly andesite flows, flow breccias and tuffaceous andesite. During the Miocene period, these rocks were intruded by various bodies of quartz monzonite and diorite, which have mineralized and altered the adjacent volcanic rocks with added pyrite and fine-grained silica. Underground workings, particularly at San Mateo area show altered andesite porphyry, intruded by diorite and diabase stocks. The volcanic sequence is dissected by glacial erosion forming U-shaped valleys, cirques, arêtes, moraines and till. Diaz and Banda (1995) identified four main structural trends that pre-date the mineralization

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event: faults and regional fractures trending northwest-southeast; north-south trending faults; north-northeast and northeast trending fractures into which dikes were later intruded; and north-northeast to south-southwest trending fractures that host the mineralized breccia veins as those found in the Project area. Plate 1 below is of porphyritic andesite believed to be related to porphyry type mineralization.

PLATE 1: Porphyritic Andesite with quartz veining. The plagioclase crystals have rounded edges instead of euhedral faces, probably as a result of sericite alteration affecting mostly the rims. Specimen from Lourdes level 4835.

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FIGURE 4: Generalized Regional Geology Map Showing Outline of Property – Scale 1:100,000 (Source: Salazar, H. 1983).

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Figure 5: San Mateo Mine Area Geology - by R.Yucra, 2012, revised and updated by R. Yucra,V. Jaramillo and A. Szybinski, 2016.

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8.0 DEPOSIT TYPE At Pucacorral at or near surface hydrothermal breccia veins are believed to represent the top geological features commonly associated with Andean-style porphyry copper deposits. This type of mineralization system covers tens of square kilometres of large masses of altered rocks, sulphide-bearing veinlets and disseminated mineralization, quartz veins, and stockworks. Alteration zones are commonly coincident with shallow intrusives and/or dike swarms and hydrothermal breccias. Intrusives, hydrothermal breccias and zones of intensely developed fracturing are often coincident and commonly contain the highest metal grades. Weathering commonly modifies the distribution of mineralization. The oxidation of pyrite commonly generates acidic meteoric water which leaches the copper minerals. The copper rich solution re-deposits the copper as secondary minerals such as chalcocite and covellite immediately below the water table in a supergene and blanket shaped enrichment zone. The phenomenon produces a copper-poor leached cap lying above a relatively thin higher-grade zone of supergene enrichment. The latter overlies a thicker zone of lower-grade primary (hypogene) mineralization at depth. 9.0 MINERALIZATION In the past at the San Mateo mine area (Pucacorral Property) the focus has been on the exploration and limited mining of base metal and silver hydrothermal veins. In this report, the author will refer to these veins as hydrothermal breccia veins as there have been multiple phases of mineralization acompanied by faulting that have broken the earlier, probably more massive and/or banded quartz base metal veins. 9.1 Breccia Veins (Grab Samples) Up to 8 types of breccia types have been identified from grab samples taken from abandoned mineralized stockpiles at Lourdes. The grab samples were carefully selected from various old mineralized piles based upon texture, matrix type, shape of fragments and the base metal distribution. These breccias are mostly mineralized with argentiferous galena, sphalerite and to a lesser degree chalcopyrite (except at Sairita). Table 4 shows assay results for each breccia. Photos of hand specimens are shown below.

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Breccia Types and Assays from Lourdes

Sample Sample BX BX Silver Lead Zinc Copper Gold

No. Type Vein  Type g/t % % % g/t247753 Grab Lourdes 1 131.00 7.40 13.75 0.48 0.445

247755 Grab Lourdes 2 39.00 2.09 1.82 0.16 0.376

247756 Grab Lourdes 3 24.00 0.96 2.12 0.07 0.587

247757 Grab Lourdes 4 63.00 4.26 3.39 0.40 0.302

247758 Grab Lourdes 5 29.00 1.16 1.93 0.15 0.371

247759 Grab Lourdes 6 7.00 0.10 0.36 0.03 0.131

247760 Grab Lourdes 7 20.00 0.32 1.13 0.19 0.553

247761 Grab Lourdes 8 59.00 3.54 1.57 0.33 0.229                          TABLE 4: Breccia types with assay results from Lourdes

PLATE 2 – Lourdes Breccia Vein Type 1: Well mineralized Andesite Porphyry breccia with galena, sphalerite, minor chalcopyrite in a dark gray mineralized quartz matrix. Fragments have a white quartz rim. Lv. 4835

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PLATE 3 – Lourdes Breccia Vein Type 2: Breccia with fragments of quartz and silicified andesite with stockwork quartz veinlets in a light gray quartz matrix. Fragments range from subangular to subrounded.

PLATE 4 – Lourdes Breccia Vein Type 3: Mineralized breccia with quartz fragments and strongly silicified rock, both dark grey and white and rounded to sub-rounded in a white quartz matrix.

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PLATE 5 – Lourdes Breccia Vein Type 4: Mineralized breccia with subangular to subrounded fragments of strongly silicified andesite porphyry in a dark gray quartz matrix with galena, sphalerite and minor chalcopyrite.

PLATE 6 – Lourdes Breccia Vein Type 5: Silicified andesite porphyry fragments (1-5cm) with pyrite. Matrix of gray quartz, chlorite, sericite with galena and sphalerite. Fragments have stockwork quartz veinlets.

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PLATE 7 -Lourdes Breccia Vein Type 6: Sub angular frag. of white quartz, in a gray quartz matrix with traces of galena, sphalerite. Breccia fragments with sphalerite-galena.  

PLATE 8 – Lourdes Breccia Vein Type 7: Sub-rounded quartz and andesite porphyry fragments with fine disseminated chalcopyrite. Siliceous matrix. Level 4835 – Lourdes.

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PLATE 9- Lourdes Breccia Vein Type 8: Sub rounded silicified andesite fragments (1mm-3cm) with clusters of galena, sphalerite and pyrite. Matrix is of dark gray quartz and calcite. A late quartz veinlet with disseminated pyrite cuts through all.

Up to 3 varieties of breccia have been identified from grab samples taken from abandoned mineralized stockpiles at Sairita (level 4660). These are mostly mineralized with disseminations and clusters of chalcopyrite, with minor galena and sphalerite. Table 5 shows assay results for each breccia. Photos of hand specimens are shown below.

Breccia Types and Assays from Sairita

Silver Lead Zinc Copper Gold

Sample No. Vein  Type g/t % % % g/t

247763 Sairita 1 93.00 1.84 2.27 3.40 0.463247765 Sairita 2 87.00 0.54 0.25 3.52 0.664247766 Sairita 3 55.00 2.26 1.03 1.63 0.171

TABLE 5: Breccia types with assay results from Sairita

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PLATE 10- Sairita Breccia Vein Type 1: Rounded quartz and silicified clasts of Andesite Porphyry with rims of chalcopyrite with less galena and sphalerite. Matrix contains quartz- calcite. Some of the clasts are aligned as in flow texture.

PLATE 11- Sairita Breccia Vein Type 2: Sub-rounded altered andesite porphyry fragments with disseminated pyrite and chalcopyrite and 1-2cm quartz-chalcopyrite veinlets in a quartz- calcite matrix.

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PLATE 12- Sairita Breccia Vein Type 3: Breccia with subrounded silicified andesite porphyry fragments (1mm-3cm) with clusters of chalcopyrite, and disseminated pyrite and sphalerite. Matrix is of quartz-calcite. 9.2 Underground Sampling of Breccia Veins

During the 2016 exploration program a total of 94 rock samples were taken at the property mostly from underground workings. Chip channel sampling was carried out perpendicular to the full width of the veins and each sample weighed a minimum of 5 kg. As only limited exposures of these breccia veins remained in the drifts, the underground sampling was not systematic, as most of the higher-grade areas had been mined. Any remaining exposures were in high, hard to reach, mined areas. The underground sampling program was designed to complete the mineralisation profile of the sulphide-bearing and hydrothermally altered breccias. The Lourdes and Gianella Breccia Veins lie approximately 175 vertical meters above Sairita (See Plate 13), and have high contents of lead and zinc, with less chalcopyrite. The Sairita Breccia Vein (level 4660m), located near the base of the valley floor, returned high copper assay results. This gives further support of an intrusive related copper system at depth. Particularly, as some of the breccia fragments at Sairita contain disseminated pyrite and chalcopyrite. Highlights of chip-channel sample results at Lourdes include:

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LOURDES VEIN CHIP CHANNEL SAMPLES

Sample No. Sample Silver Lead Zinc Copper Gold

Width (m) g/t % % % g/t

247678 0.84 17 0.25 0.81 0.048 0.35

247679 0.90 48 2.21 2.77 0.109 0.61

247684 0.80 20 0.41 1.14 0.081 0.27

247687 0.42 9 0.12 0.56 0.035 0.24

247690 1.10 25 0.63 1.79 0.179 0.17

247691 0.90 19 0.33 0.56 0.057 0.21

247692 0.95 31 1.27 2.66 0.121 0.43

247694 1.67 14 0.30 0.77 0.055 0.20

247696 1.50 25 1.01 2.23 0.25 0.324

247697 3.00 14 0.37 1.46 0.07 0.201

247700 1.72 15 0.76 2.08 0.07 0.122

247701 1.38 24 1.23 2.22 0.09 0.298

247703 1.60 16 0.24 0.87 0.06 0.166

247712 1.30 x 1.0 31 0.86 1.71 0.13 0.11 TABLE 6: Lourdes Vein Underground Chip Channel Samples Highlights of chip-channel sample results at Gianella include:

GIANELLA VEIN UNDERGROUND CHIP CHANNEL SAMPLES

Sample No. Sample Silver Lead Zinc Copper Gold

Width (m) g/t % % % g/t

247670 1.50 10 0.07 0.98 0.21 0.05

247673 1.30 11 0.15 0.41 0.20 0.07

247674 0.86 27 0.84 0.93 0.24 0.13 TABLE 7: Gianella Vein Underground Chip Channel Samples Highlights of chip-channel sample results at Sairita include:

SAIRITA VEIN CHIP CHANNEL SAMPLES

Sample No. Sample Silver Lead Zinc Copper Gold

Width (m) g/t % % % g/t

247654 0.62 76 1.33 1.87 2.47 0.16

247655 0.55 162 1.84 0.93 1.19 8.23

247657 0.96 60 2.70 0.46 1.32 0.13

247660 1.67 34 0.06 0.11 1.42 0.05

247775 1.10 26.00 0.03 0.05 1.43 0.034

247777 0.60 21.00 0.04 0.09 1.20 0.048

247778 0.60 11.00 0.04 0.08 0.40 0.204 TABLE 8: Sairita Vein Underground Chip Channel Samples

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PLATE 13 : A 3-D Spot satellite image showing the location of the main adits at Pucacorral (Google Earth 2016)

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PLATE 14 : Sairita Breccia Vein (underground) sample 247660 – Width 1.67m 9.3 Underground Mapping of Breccia Veins

Underground mapping was done using measuring tapes and compass. The mapping was centered on the tabular or elongated (vein-like) breccia bodies at Lourdes, Gianella and Sairita. Other less developed breccia veins also mapped included Rocio and Cristina. The mapping was done at a scale of 1:250. Refer to Section 23 of this report for Illustrations (Figures) of the main veins. These mineralized structures trend as follows: Lourdes: Average strike is 050 degrees with a 75 degree dip SE. Widths range 1 to 3 meters. Gianella: Average strike is 025 degrees with a 75 degree dip SE. Average width is 0.60 meters. Rocio: Average strike is 075 degrees with a 55 degree dip SE. Widths range 0.30 to 1.50 meters. Sairita: Average strike is 050 degrees with a 65 degree dip SE. Average width is 1.50 meters. 9.4 Surface Mapping and Sampling of Breccia Veins Surface mapping was done using a Garmin GPS model MAP 62stc. The coordinates used were UTM with Datum WGS 84. Highlights of chip channel samples included the Gianella breccia vein and a new vein called the “S-Vein”. They returned the following assay results:

 SURFACE VEIN CHIP CHANNEL SAMPLE

Sample No. Sample Silver Lead Zinc Copper Gold

Width (m) g/t % % % g/t

247732 0.50 0.0075 3.04 1.87 0.29 1.54 TABLE 9: Surface Vein (S-Vein) Channel Sample

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GIANELLA VEIN SURFACE CHIP CHANNEL SAMPLE

Sample No. Sample Silver Lead Zinc Copper Gold

Width (m) g/t % % % g/t

247731 1.52 331 16.65 0.79 0.30 2.47 TABLE 10 : Gianella Vein Surface Chip Channel Sample

PLATE 15 : Gianella Vein Surface Chip Channel Sample (247731) at level 4925

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PLATE 16: View of top surface area near Gianella sample 247731. Notice the intense stockwork veining. This area needs further mapping and sampling. 10.0 EXPLORATION No previous modern exploration program has ever been conducted on the property. This includes the use of geophysics, alteration mapping, petrographic work and diamond drilling. The only form of exploration was vein development (drifting and raising), by American Silver Cia. Minera S.A.C, which completed a surface geology map, rock sampling and mapped the underground workings at the San Mateo Mine area (R. Yucra, 2012). 11.0 DRILLING There has been no previous drilling at the Pucacorral Property. 12.0 SAMPLING METHOD AND APPROACH During the 2016 exploration program a total of 94 rock samples were taken at the property. Additionally, 18 QC samples were included. The sampling program was carried out under the supervision of Victor Jaramillo, P. Geo., for BCGold Corp. The samples were bagged and tagged at the mine site, then transported to the laboratory. The sampling was carried out perpendicular to the full width of the veins and each sample weighted a minimum of 5 kg. All samples were submitted to the offices of ALS CHEMEX in Lima, Peru for preparation and analysis. ALS-CHEMEX is a Canadian-Australian based laboratory with an excellent

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international reputation. Their quality system complies with ISO 9001:2000 and ISO 17025:1999. 13.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY Preparation Sample preparation procedures done at ALS CHEMEX used PREP-31B as outlined in the flow chart shown below:

Analysis Analytical work done at ALS CHEMEX consisted in two methods. The ME-ICP61a four acid method for multi element analysis (33 elements), and for gold the AA-Au24 fire assay method. In the ME-ICP61a method the sample is digested in a mixture of nitric, perchloric, hydrofluoric and hydrochloric acids ( HNO3-HClO4-HF-HCL). Perchloric acid is added to assist oxidation of the sample and to reduce the possibility of mechanical loss of sample as the solution is evaporated to moist salts. Elements are determined by inductively coupled plasma – atomic emission spectroscopy (ICP-AES). This method analyses for 33 elements. Table 11 below provides a list of the elements and their limits of detection expresed in ranges.

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TABLE 11: Elements analyzed by ME-ICP61a showing the detection limits for each element. Units are reported in ppm, unless indicated as %. In the AA-Au24 method the sample is fused with a mixture of lead oxide, sodium carbonate, borax, silica and other reagents as required, inquarted with 6 mg of gold-free silver and then cupelled to yield a precious metal bead (Fire Assay Fusion). The bead is digested in 0.5 ml dilute nitric acid in the microwave oven,0.5 ml concentrated hydrochloric acid is then added and the bead is further digested in the microwave at a lower power setting. The digested solution is cooled, diluted to a total volume of 4 ml with de-mineralized water, and analyzed by atomic absorption spectroscopy against matrix-matched standards. Table CC below gives further details of this analytical method.

TABLE 12: Analytical method for gold showing detection limits and units reported Security The author is not aware of any factors in the sample preparation procedures that could materially impact the accuracy/reliability of the assay results presented in this report. The sample checks have demonstrated that the samples are representative of the mineralization and that there is no bias in the sampling. Duplicate, standard and blank samples were inserted into batches of approximately 20 samples. All these sample batches were delivered directly to the office of ALS CHEMEX in Lima by V. Jaramillo, P.Geo. 14.0 DATA VERIFICATION The author believes that all sample data collected by BCGold geologists is accurate, reliable and representative. Quality control procedures and methodologies were implemented by BCGold Corp. This work

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included the insertion of duplicates, blanks and standards during sample submittal to ALS CHEMEX Labs in Lima, Peru. An electronic data file was generated for merging into the database. No irregularities in the data were noted. Original assay certificates are in the Vancouver BCGold office. Each electronic file includes ALS Chemex internal check results. The assay data is merged electronically into a database by matching sample numbers from the assay certificates with those entered into the database. The standards and blanks used were commercially prepared by Target Rocks Peru SAC, with an office at Av. Monseñor Roca y Boloña 176 A, Urb. San Antonio, Miraflores, Lima, Peru. Four standards were used: AGM-04, PLSUL-1, PLM-04 and TR-16125 (blank standard). LEVEL OF PRECISION The following Tables 13 to 16 provide the values of the standards used and the analytical results provided by ALS Chemex. The data indicates results within acceptable margins of error.

Sample No. Silver Lead Zinc Copper Gold

g/t % % % g/t

247669 158 1.40 1.69 0.22 0.38

247714 152 1.33 1.62 0.21 0.386

STAND. AGM‐04 160 1.40 1.68 0.22 0.353 TABLE 13: Standard AGM-04

Sample No. Silver Lead Zinc Copper Gold

g/t % % % g/t

247754 15.00 0.3520 0.15 0.08 0.015

247779 14.00 0.3510 0.14 0.08 0.013

STAND. PLSUL‐01 14.2 0.35 0.14 0.08 NR

NR: Not Reported TABLE 14: Standard PLSUL-01

Sample No. Silver Lead Zinc Copper Gold

g/t % % % g/t

247693 89 1.88 2.39 0.16 0.207

STAND. PLM‐04 92 1.94 2.44 0.16 0.197 TABLE 15: Standard PLM-04

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Sample No. Silver Lead Zinc Copper Gold

ppm ppm ppm ppm ppm247695 1 <20 <20 <10 <0.005

247780 <1 <20 <20 <10 <0.005

Blank TR-16125 < 0.3 4.3 3.8 2.6 <0.005 TABLE 16: Blank Standard The Recommended Values (RV) are the average values that are provided in each of Target Rocks Standard certificates, which were established by assaying at multiple labs. The following tables and figures show lab results and the statistics for standards AGM-04 and PLSUL-01for copper and lead, as calculated and presented by the writer.

Copper 

Standard ID  Count  R.V. (ppm)  AV (ppm) S.D.(ppm) Outliers AV (without outl.) BIAS (%)

AGM‐04  2  2170  2150  71  0  2150  ‐1 

PLSUL‐1  2  794  795  7  0  795  0 TABLE 17: Statistical Summary of Standards used for copper

Lead 

Standard ID  Count  R.V. (ppm)  AV (ppm) S.D.(ppm) Outliers AV (without outl.) BIAS (%)

AGM‐04  2  14000  13650  495  0  13650  ‐3 

PLSUL‐1  2  3485  3515  7  0  3515  1 TABLE 18: Statistical Summary of Standards used for lead

Figure 6: Copper variogram for standard AGM-04

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Figure 7: Lead variogram for standard AGM-04 Considering the following % BIAS ranges: Good or Acceptable: -5 to 5% Questionable: -5 to -10% or 5 to 10% Unacceptable: below -10% or over 10% It can be concluded (Tables 10 and 11), that all the values lie within the “good or acceptable” range. As such, the sample results do reflect a very good level of precision. CONTAMINATION To control any possible contamination coarse blanks were inserted into the sample batches approximately every 20 samples. The blank material was purchased from Target Rocks Peru. Table 19 below gives the analytical results for the blank samples submitted.

         Blank Sample Results

Sample No. Silver Lead Zinc Copper Gold Blank Code

ppm ppm ppm ppm ppm

247664 1 < 0.002 < 0.002 0.001 <0.005 Coarse Blank TR-16126

247686 <1 <20 20 <10 <0.005 Coarse Blank TR-16126

247704 <1 <20 0.003 <10 <0.005 Coarse Blank TR-16126

247730 <1 0.01 0.01 0.001 <0.005 Coarse Blank TR-16126

247762 <1 0.00 0.004 0.001 <0.005 Coarse Blank TR-16126 TABLE 19: Coarse blank Assay results Based on the results in Table 12, it can be concluded that sample contamination was not present or was minimal, this due to the very low levels of the metals, mostly below detection limits. SAMPLING BIAS Table 20 below and Figures 7 and 8 provides statistical results for duplicate samples.

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                Copper ppm Lead ppm

Original  Duplicate Difference Original  Duplicate Difference

Count 6 6 6 Count 6 6 6

Max 38200 34800 3400 Max 86600 85100 1500

Min 70 70 ‐130 Min 280 270 ‐8500

Mean 12600 11957 643 Mean 20967 22503 ‐1537

Standard Deviation  18258 17240 1362 Standard Deviation  33086 32404

BIAS % 5.24 BIAS % ‐7.07 TABLE 20: Statistical summary of duplicate samples for copper and lead.

Figure 8: Copper variogram of duplicate samples

Figure 9: Lead variogram of duplicate samples Duplicate sample results (Table 20, Figures 8 and 9 ) show good correlation for copper as the trend line is very similar to x=y, and the % BIAS is only 5.24%. For lead the situation is similar as the trend line is very similar to x=y and the % BIAS is -7.07 %.

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15.0 ADJACENT PROPERTIES The past producing Pacococha, Germania and Millotingo mines lie close to the San Mateo Mine within the Pucacorral Property. There are indications that there has been a limited mining and milling at Pacococha since the second half of 2015. Both the nearby Millotingo mine and the Pacococha mines closed in 1992, due to a combination of weak metal prices, labor disputes and terrorist activities. Neither mine has been re-opened and all are in a state of disrepair (see Table 21 below for relative distances and location with respect to the Property). The Writer has been unable to verify the information on the adjacent Silveria Project of Grenville Gold Corp., or the Pacococha, Germania and Millotingo mines and this information is not necessarily indicative of the mineralization on the Property that is the subject of this technical report (Blackwell J., 2016).

Historic Mine  Distance and Direction from the San 

Mateo Mine (Pucacorral Property)

Silveria                 3.5 km WNW

Germania                 4 km WNW

Pacococha                 6 km NNW

Millotingo                 9 km N TABLE 21: Distance and Direction from nearby mines. 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING There are no metallurgical studies completed for the Property. Historical information on mineral processing of materials mined from the veins at San Mateo is not available. Though, R. Yucra 2012, indicates that the Cía. Minera San Mateo S.A mined approximately 5,600 tonnes of mineralized vein material which was processed at the Tonsuyoc Mill owned by Minero Peru and the concentrates sold to Banco Minero. 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES There are currently no mineral resource or reserve estimates for the Pucacorral Property. 18.0 OTHER RELEVANT DATA AND INFORMATION Nothing to report. 19.0 INTERPRETATION AND CONCLUSIONS The Pucacorral Property has a significant alteration zone on which several elongated vein-like base metal breccias have been identified.

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The predominant rock types at the Property are early Tertiary andesitic volcanic flows, interlayered with tuffs and rhyolites of the Rimac Group and overlain disconformably by the Millotingo Formation; the composite thickness of these units is 700 m to 1,000 m. The Rimac Group hosts mineralization at the San Mateo Mine area. The Rimac Group has been broadly folded and warped but is not regionally metamorphosed. During the middle to late Tertiary these rocks were intruded by various bodies of quartz monzonite and diorite. Associated with the intrusions are numerous base metal rich breccia type veins. Exploration results point to a potential copper porphyry system at Pucacorral, within a zone measuring at least 1.5 km x 1.5 km, comprised of hydrothermally altered porphyry, breccias, veins and wall rock. While a significant portion of the breccia veins in mine workings have been mapped during the recent Phase I exploration program, approximately one-third of them remain largely unmapped and almost all remain unmapped on the surface. The just concluded field program ads significant weight to the argument that a copper porphyry system is present at Pucacorral. This is supported by the following:

1. Pucacorral lies aligned within the Central Peru Copper Porphyry Belt with more than 10 known deposits – examples include: Toromocho, La Codiciada and the Ticlio cluster to name a few.

2. Adjacent to the Lourdes Breccia Vein on both wall rocks of the two lowest levels, a

porphyritic rock with disseminations of pyrite and minor chalcopyrite and stockwork veinlets of quartz in a quartz-sericite-pyrite matrix (Phyllic Alteration) have been identified. This has also been observed in the lower level at Sairita.

3. Multiple episodes of magmatic-hydrothermal brecciation, generally found in the upper sections of copper porphyries, are present. At least 11 different breccia types have been identified on the Property, these include eight in the Lourdes Vein and three in Sairita.

4. Multiple phase intrusions of diorite to granodiorite composition are present at Pucacorral.

5. Some breccias (eg. at Sairita) have sub-angular to sub-rounded broken rock fragments of

a porphyritic altered rock with disseminations of chalcopyrite. This may indicate proximity to a porphyry at depth or nearby.

6. Several phases of stockwork type quartz veinlets, with different orientation, are present in the porphyritic andesite host rocks. Some veinlets contain quartz with chalcopyrite; others are barren, while others contain only quartz-pyrite.

7. The wall rocks near the mineralized fault breccias are strongly silicified, and within the

stockwork areas contain sericite and pyrite (typical Phyllic alteration found in porphyries).

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It is known that clusters of breccia pipes are prone to rise to higher levels above an intrusive complex than weak pervasive features such as disseminated mineralization. 20.0 RECOMMENDATIONS The author believes this to be a Property of merit and as such recommends the following: A Phase II exploration program is highly recommended comprised of further surface and underground geological mapping and sampling, completion of a 3D IP-res and 3D mag geophysical surveys designed to enhance drill targeting for both the vein-type breccia occurrences and the possible underlying mineralized porphyry at Pucacorral. Other recommendations include: 1. Continue the beneficial work with the communities of Parac and San Antonio in order to keep the existing access permit and future water-use permits; 2. Hire a new specialist in community relations to negotiate or re-nogotiate agreements. Pucacorral Exploration Program budget for 2017 (in US funds)

Description Amount 

US dollars

Geophysics (3D IP/res &  ) 15 Line Kms @ $ 6,000/line Km 90,000

3D Mag 15,000

Project Manager @ $ 15,000/month x 3 months 45,000

Two Junior geologists @ $ 2000/month x 3 months 12,000

Local Field Assistants (6) @ $ 700/month x 3 months 12,600

 2 drivers @ $ 1500/month x 3 months 9,000

2 Truck (4 x4) rental @ $ 3000/month x 3 months 18,000

Assays @ $ 35/sample x 300 samples  10,500

Airfares to and from Peru @ $ 1200 x 6 trips 7,200

Infrastructure improvements (access roads)  18,000

Fuel for 2 trucks @ $ 300/ month x 3 months 1,800

Lodging and Food for staff @ 1800/month x 3 months 5,400

Supplies (field and office) 2,000

Communications 500

Community support  22,000

Contingency 31,000

Total= 300,000 TABLE 22: 2017 Exploration budget

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21.0 REFERENCES Beane, R. E and Titley, S. R., 1981, Porphyry Copper Deposits, Part II Hydrothermal Alteration and Mineralization, Economic Geology, 75th Anniversary, Volume pp 235- 263. Blackwell, J., 2016, Technical Report on the Chanape - Pucacorral Project, Prepared for BCGold Corp. Camus, F. and Dilles, J. 2001, A Special Issue Devoted to Porphyry Copper Deposits of Northern Chile, Preface. Economic Geology, v96, pp233-237. Castillo R., 1970. Cía. Minera San Mateo, Mina Pucacorral – Estudios de posibilidades de mineralización económica. Cooke D.R. and Hollings P., et. al., 2005, Giant Porphyry Deposits: Characteristics, Distribution, and Tectonic Controls, Economic Geology, Vol. 100, p. 801-818 Díaz, N. and Banda, L., 1995. La Arsenopirita Aurífera de Viso-Aruri, San Mateo, Huarochirí, Lima. Geological Society of Perú, Volumen Jubilar Alberto Benavides, pp. 87-102. Eichenlaub Amy B., 2007. MSc. Thesis, University of Arizona. Exploration of genetic links between breccia pipes and porphyry copper deposits in a Laramide hydrothermal System, Sombrero Butte, Pinal County Arizona. Fernandez Concha J., 1966. Internal Report for Minera San Mateo. Zona Pucacorral – Informe sobre desarrollos. Gilbertson, J., 2008. Independent Technical Report on the Silveria Project, Peru, prepared by SRK Exploration Services (UK) for Journey Resources Corp., 61 p., filed on Sedar. Catchpole, H. et. al., 2015, Zoned Base Metal Mineralization in a Porphyry System: Origin and Evolution of Mineralizing Fluids in the Morococha District, Peru, Economic Geology, v. 110, pp. 39–71 Eichenlaub Amy B., 2007. MSc. Thesis, University of Arizona. Exploration of genetic links between breccia pipes and porphyry copper deposits in a Laramide hydrothermal System, Sombrero Butte, Pinal County Arizona. Kents P., 1964. Special Breccias Associated with Hydrothermal Developments in the Andes. Economic Geology, Vol. 59, p. 1551-1563. Landtwing, M.R. et. al., 2002, Evolution of the Breccia-Hosted Porphyry Cu-Mo-Au Deposit at Agua Rica, Argentina: Progressive Unroofing of a Magmatic Hydrothermal System, Economic Geology, Vol. 97, p. 1273-1292

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Rozelle, J.W. and Tschabrun, P.G., 2007. “Report NI 43-101 Technical Report on The Prefeasibility of The Coricancha Project, Department of Lima, Peru.” dated 16 April 2007 prepared for Gold Hawk Resources Inc. Salazar, H. (1983): Geología de los Cuadrángulos Matucana y Huarochirí, Hojas 24-k y 25-k; Boletín No36, Instituto Geológico Minero y Metalúrgico; 74p plus 2 maps. Sillitoe, Richard H., 1992, Gold and Copper Metallogeny of the Central Andes – Past, Present and Future Exploration Objectives, Economic Geology, Vol 87 pp 2205-2216. Titley, S. R., and Beane, R. E., 1981, Porphyry Copper Deposits, Part I Geologic Settings, Petrology, and Tectogenesis, Economic Geology, 75th Aniversary Volume pp 214- 234. Yucra, R., 2012. Evaluación Geológica Preliminar del Proyecto Bucarán. Internal report for American Silver Cia. Minera SAC. Yucra, R., 2014. Evaluación Geológica Preliminar del Proyecto Bucarán. Internal report for American Silver Cia. Minera SAC. Zuniga y Guzman, E. and del Rio, R., 1949. Informe Preliminar sobre la Region Minera de Huarochiri, 1949. Report for Banco Minero. Source INGEMET. Internet Sources: BCGold at http://www.bcgoldcorp.com INGEMMET at http://www.ingemmet.gob.pe Google Earth 2016: www.googleearth.com

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22.0 DATE AND SIGNATURE PAGE Respectfully Submitted, “Signed and Sealed by Victor Jaramillo” Victor A. Jaramillo, P.Geo. November 30, 2016

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23.0 Illustrations

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Discover Geological Consultants Inc Suite 501 - 1111 Haro Street

Vancouver, BC V6E 1E3 Canada Tel: 778-952-7848

Email: victor@discovergeological.com

CERTIFICATE OF QUALIFIED PERSON I, Victor Jaramillo, P. Geo., do hereby certify that: I am a President of: Discover Geological Consultants Inc. Suite 501 - 1111 Haro Street Vancouver, BC V6E 1E3 Canada I graduated with a Bachelor of Science Degree in Geology from Washington and Lee University (U.S.A.) in 1981. In addition, I obtained a Master of Science Applied Degree in Mineral Exploration in 1983 from McGill University (Canada). I am a professional geoscientist, registered with the Association of Professional Engineers and Geoscientists of British Columbia (License No. 19131). I am a Fellow of the Geological Association of Canada (GAC) and a Fellow of the Society of Economic Geologists (SEG). I have worked as a geologist for a total of 35 years since my graduation from university. I have read the definition of "Qualified Person" set out in National Instrument 43-101 ("NI-43-101") and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "Qualified Person" for the purpose of NI 43-101. I am responsible for the preparation of the technical report titled The Pucacorral Property Technical Report and dated November 30, 2016 (the "Technical Report") relating to the Pucacorral Property. The author most recently worked at the Property from October 15, 2016 to November 17, 2016. I have had no prior involvement with the property that is the subject of the Technical Report. I am not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the Technical Report, the omission to disclose which makes the Technical Report misleading. I am independent of the issuer applying all the tests III section 1.4 of National Instrument 43-101.

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I have read National Instrument 43-101 and Form 43-101 F1, and the Technical Report has been prepared in compliance with that instrument and form. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report. Dated this 30th day of November, 2016 Victor Jaramillo Signed "Victor Jaramillo" Victor Jaramillo, P.Geo.