Hurricane_Rick Tuesday, 08/07/18 10:33:34 PM Re: Hurricane_Rick post# 283 Post # of 314 Recommendations from the latest NI 43-101 1.10 RECOMMENDATIONS After review and analysis of the 2015 through 2017 exploration program data on the Pardo project, additional exploration is warranted. The following phase 1 and phase 2 exploration programs are recommended. A breakdown of the estimated costs for phase 1 & 2 is provided in section 18. 1.10.1 Phase 1 The phase 1 program is designed to continue advancing the Pardo Property towards an initial resource estimate. The phase 1 exploration program includes bringing the property to an advanced exploration status and conducting a 10,000-tonne bulk sample from two separate locations to assist and build confidence in grade estimation between drilling and bulk sampling. The proposed budget to complete Phase 1 is approximately $1.2 million. The campaign would begin as soon as the advanced exploration permit is granted and likely continue until the end of 2018. 1.10.2 Phase 2 The phase 2 program is an extension of the phase 1 program and is designed to continue advancing the project towards a resource estimate. The campaign would be comprised of a 40,000-tonne bulk sample at different locations to provide production gold grade data from additional subdomains with only exploration drilling gold grade estimates. The bulk samples would further aid with the development of a resource estimate and provide further confidence of the gold grade in their respective subdomains. The phase 2 program should also pursue the use of ore sorting technologies. The proposed budget to complete phase 2 is approximately $4.8 million. If ore sorting is implemented into the Phase 2 program the additional cost would be approximate $520,000 thousand. Additionally, if ore sorting is used it would reduce the overall tonnage being trucked and milled potentially lowering the overall costs. Additional recommendations include: • Continue the use of large diameter HQTW diamond drill holes to outline the extent, thickness and tonnage of the mineralized boulder conglomerate. • Continue the collection of channel sampling to further define grade distribution in the main zones and between them if possible. • Create a master data drill and channel database • Validate the data that was not previously validated in section 12. • Standardize the detection limits inside the QA/QC database (remove the multiple detection limits including zeros). • Continue to evaluate the use of ore sorting technologies for the mineralized conglomerates. • Continue the collection of specific gravity measurements for the various rock types and alteration styles. There should be approximately 4 to 5% of the database with specific gravity measurement and complete a check SG program on ~ 10% of the SG data.