LCL RESOURCES LIMITED — Capital/Financing Update 2020

Jul 7, 2020

8 July 2020 ASX Announcement ASX: LCL

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Quinchia gold drilling program to kick off

New gold target identified 200m north of existing Tesorito drilling

 HIGHLIGHTS

• ~2500m diamond drilling program to start in July - initially via conventional drilling service provider, transitioning to own rig that has recently been ordered

• Company’s own diamond drill rig and ancillary equipment expected to arrive in Colombia in October to expand the drilling program

• Drilling to target:

• Wide zones of near-surface porphyry mineralisation to confirm prior best intersection of 384m @1.01g/t Au from 16m[1]

• Higher grade porphyry-style gold intersections at Tesorito such as: 64m @ 1.67g/t Au in TS-DH-07[1] ; and 29.3m @ 1.9g/t Au TS-DH-02[1] ; and

• a new gold-molybdenum soil anomaly 200m north of previous Tesorito drilling

Los Cerros Limited (ASX: LCL) (Los Cerros or the Company) is pleased to advise that it has commissioned its next drilling campaign on schedule with an anticipated start date of last week of July. The ~2,500m diamond drilling program will commence at the Tesorito porphyry before moving to targets at Chuscal and Miraflores, all located within the Company’s Quinchia Gold Project in Colombia.

All seven (7) previous holes drilled to date have successfully intersected porphyry-style gold mineralisation, including impressive intercepts, such as:

• 384m @ 1.01g/t from 16m incl 29.3m @ 1.9g/t Au from 136.75m in TS-DH-02[1] ; and

• 253.1m @ 1.01g/t Au from 2.9m incl 64m @ 1.67g/t Au from 144m in TS-DH-07[1]

All drill holes tested the southern highest grade 250m x 250m region of an 800m long x 350m wide NNE trending gold-molybdenum soil anomaly. Recent infill soil sampling reveals the anomaly comprises two separate higher grade regions, with the northern region untested by drilling (Figure 1). Both higher grade centres are broadly similar in size, with each corresponding to a magnetic high, overprinting E-W trending epithermal veining and porphyry style alteration. The northern centre is poorly exposed but higher in gold and molybdenum values than the southern centre.

The drill program will commence with testing the continuity of wide higher grade intersections (eg. 64m @ 1.67g/t Au and 29m @ 1.9g/t Au in holes TS-DH-02 and TS-DH-07 referenced above), and it is planned to then test the newly defined northern gold-molybdenum soil geochemistry anomaly (Figure 1).

1 See release 30 August 2018. The Company confirms that it is not aware of any new information that affects the information contained in the announcement

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8 July 2020 ASX Announcement ASX: LCL

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Figure 1 : Tesorito is an at surface gold mineralised porphyry system. The Company’s first hole of the pending drill program will further explore the southern anomalous zone that has already delivered impressive results. The Company is also developing its drilling strategy for the northern anomalous zone defined here by gold and strong molybdenum assays in soil over a magnetic high.

Company owned drill rig status

Los Cerros advises that the Company’s new C5C diamond drill rig (Figure 2) and ancillary equipment is expected to arrive in Colombia around early October. The assets have been purchased under the $2M Los Cerros / Hongkong Ausino ( Ausino ) Strategic Partnership Agreement ( SPA )[2] .

2 See announcement 22 April 2020 for further details of the SPA

8 July 2020

ASX Announcement ASX: LCL

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Los Cerros’ Managing Director Jason Stirbinskis commented :

“With full support from Ausino, the Company has decided to commence drilling sooner via a Colombian drilling services provider while we wait for our own equipment to arrive. The intention is to drill at least two ~350m length diamond holes at Tesorito first and then, once we have our own rig with the efficiencies that it should bring, we will tackle more targets across the Quinchia Gold Project.

The encouraging work of our Colombian geologists and international consulting experts has generated a good number of exciting targets to be drill tested. The first two holes will provide additional geological data to fine tune several deeper porphyry targets”.

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Figure 2 : The Company’s Atlas Copco (Epiroc) drill rig is ready for shipping

Quinchia Gold Project

Chuscal and Tesorito prospects are part of the larger Quinchia Gold Project which also comprises Miraflores, Dosquebradas and other established targets and untested areas of interest within the ~7,500ha parcel (Figure 3).

The Miraflores Gold Deposit has an existing Resource of 877,000 Au ounces at 2.80g/t Au and Reserve of 457,000 Au ounces at 3.29g/t Au[3] . The Dosquebradas Deposit has an Inferred Resource of 459,000 Au ounces grading 0.71g/t Au[4] .

With further exploration success elsewhere within the Quinchia Gold Project, leveraging existing mine planning, plant design and approval status of Miraflores (Mining Authority approval of PTO (construction and operation plan)), the ability to fast track towards gold production becomes a compelling opportunity.

3 Refer ASX announcement dated 27 November 2017. The Company confirms that it is not aware of any new information or data that materially affects the information included in the market announcement, and that all material assumptions and technical parameters underpinning the estimate continue to apply

4 Inferred Mineral Resources using 0.5g/t Au cut-off grade. See announcement 25 February 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the market announcement

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8 July 2020 ASX Announcement ASX: LCL

Figure 3: The Quinchia Gold Project contains multiple targets at various levels of investigation within a ~3km radius. This image reveals the major known target areas and tellurium anomalism, a pathfinder element associated with substantial intrusive bodies such as porphyries.

For the purpose of ASX Listing Rule 15.5, the Board has authorised for this announcement to be released.

For further enquiries contact:

Jason Stirbinskis

Managing Director Los Cerros Limited 12/11 Ventnor Avenue WEST PERTH WA 6005 jstirbinskis@loscerros.com.au

8 July 2020 ASX Announcement

ASX: LCL

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FORWARD LOOKING STATEMENTS This document contains forward looking statements concerning Los Cerros. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward-looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Los Cerros’ beliefs, opinions and estimates of Los Cerros as of the dates the forward-looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments. Although management believes that the assumptions made by the Company and the expectations represented by such information are reasonable, there can be no assurance that the forward-looking information will prove to be accurate. Forward-looking information involves known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any anticipated future results, performance or achievements expressed or implied by such forward-looking information. Such factors include, among others, the actual market price of gold, the actual results of future exploration, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company's publicly filed documents. Readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. No representation, warranty or undertaking, express or implied, is given or made by the Company that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur.

JORC STATEMENTS - COMPETENT PERSONS STATEMENTS

The technical information related to Los Cerros assets contained in this report that relates to Exploration Results (excluding those pertaining to Mineral Resources and Reserves) is based on information compiled by Mr Cesar Garcia, who is a Member of the Australasian Institute of Mining and Metallurgy and who is a Geologist employed by Los Cerros on a full-time basis. Mr Garcia has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Garcia consents to the inclusion in the release of the matters based on the information he has compiled in the form and context in which it appears.

The information presented here that relates to Mineral Resources of the Dosquebradas Project, Quinchia District, Republic of Colombia is based on and fairly represents information and supporting documentation compiled by Mr. Scott E. Wilson of Resource Development Associates Inc, of Highlands Ranch Colorado, USA. Mr Wilson takes overall responsibility for the Resource Estimate. Mr. Wilson is Member of the American Institute of Professionals Geologists, a “Recognised Professional Organisation” as defined by the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Wilson is not an employee or related party of the Company. Mr. Wilson has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code 2012)’. Mr. Wilson consents to the inclusion in the news release of the information in the form and context in which it appears

The Company is not aware of any new information or data that materially affects the information included in this release.

MIRAFLORES PROJECT RESOURCES AND RESERVES

The Miraflores Project Mineral Resource estimate has been estimated by Metal Mining Consultants in accordance with the JORC Code (2012 Edition) and first publicly reported on 14 March 2017. No material changes have occurred after the reporting of these resource estimates since their first reporting.

Miraflores Mineral Resource Estimate, as at 14 March 2017 (100% basis)

Resource Classification	Tonnes (000t)	Au (g/t)	Ag (g/t)	Contained Metal (koz Au)	Contained Metal (koz Ag)
Measured	2,958	2.98	2.49	283	237
Indicated	6,311	2.74	2.90	557	588
Measured & Indicated	9,269	2.82	2.77	840	826
Inferred	487	2.36	3.64	37	57

Notes:

i) Reported at a 1.2 g/t gold cut-off. ii) Mineral Resource estimated by Metal Mining Consultants Inc. iii) First publicly released on 14 March 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Mineral Resource estimation.

iv) These Mineral Resources are inclusive of the Mineral Reserves listed below. v) Rounding may result in minor discrepancies.

8 July 2020

ASX Announcement

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ASX: LCL

Miraflores Mineral Reserve Estimate, as at 27 November 2017 (100% basis)

The Miraflores Project Ore Reserve estimate has been estimated by Ausenco in accordance with the JORC Code (2012 Edition) and first publicly reported on 18 October 2017 and updated on 27 November 2017. No material changes have occurred after the reporting of these reserve estimates since their reporting in November 2017.

Reserve Classification	Tonnes (Mt)	Au (g/t)	Ag (g/t)	Contained Metal (koz Au)	Contained Metal (koz Ag)
Proved	1.70	2.75	2.20	150	120
Probable	2.62	3.64	3.13	307	264
Total	4.32	3.29	2.77	457	385

Notes:

i) Rounding of numbers may result in minor computational errors, which are not deemed to be significant. ii) These Ore Reserves are included in the Mineral Resources listed in the Table above. iii) First publicly released on 27 November 2017. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Ore Reserve estimation.

Source: Ausenco, 2017

Dosquebradas Inferred Mineral Resource Estimate, as at 25 February 2020 (100% basis)

Cut-Off (g/t Au)	Tonnes (‘000t)	Au (g/t)	Au (koz)	Ag (g/t)	Ag (koz)	Cu (%)	Cu (pounds)
0.3	57,794	0.50	920.8	0.6	1,036	0.04	56,767
0.4	34,593	0.60	664.1	0.6	683.8	0.05	38,428
0.5	20,206	0.71	459.1	0.7	431.7	0.06	**24,867 **

Notes:

i) No more than 6m internal waste is included in the weighted intervals ii) Inferred Mineral Resources shown using various cut offs. iii) Based on gold selling price of US$1,470/oz. iv) Mineral Resource estimated by Resource Development Associates Inc.

v) First publicly released on 25 February 2020. No material change has occurred after that date that may affect the JORC Code (2012 Edition) Mineral Resource estimation.

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random	•Soil samples were obtained from the C-Horizon, bagged and tagged with
techniques	chips, or specific specialised industry standard	unique sample identity numbers, transported and submitted to ALS Colombia
	measurement tools appropriate to the minerals under	Ltda located in Medellin for sample preparation. Sample preparation included
	investigation, such as down hole gamma sondes, or	drying at <60°C, sieve sample to -180 micron (80 mesh) from which a
	handheld XRF instruments, etc). These examples should	representative 30g sample was obtained using a riffle splitter. Gold assays
	not be taken as limiting the broad meaning of sampling.	were obtained using a lead collection fire assay technique (FAA313) and
	• Include reference to measures taken to ensure sample	assays an additional 54 elements were obtained using multi-acid (four acid)
	representivity and the appropriate calibration of any	digest for (ICM40B) at ALS’s laboratory in Lima, Peru.
	measurement tools or systems used.	•The saprock (saprolite) and rock chip sampling program was conducted by the
	• Aspects of the determination of mineralisation that are	exploration team of Los Cerros, who comply with industry standard practices.
	Material to the Public Report.	Los Cerros has a geologist responsible for verification of QA/QC on all
	• In cases where ‘industry standard’ work has been done this	samples generated by the company and samples are not released for inclusion
	would be relatively simple (eg ‘reverse circulation drilling	in the company’s database until they pass the QA/QC controls. The samples
	was used to obtain 1 m samples from which 3 kg was	were prepared by ALS in Medellin and analysed for Gold (FA) and 49 elements
	pulverised to produce a 30 g charge for fire assay’). In other	(ICP MS-ES) in ALS´s laboratory in Lima, Peru.
	cases more explanation may be required, such as where
	there is coarse gold that has inherent sampling problems.
	Unusual commodities or mineralisation types (eg submarine
	nodules) may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer,	•n/a
techniques	rotary air blast, auger, Bangka, sonic, etc) and details (eg
	core diameter, triple or standard tube, depth of diamond
	tails, face-sampling bit or other type, whether core is
	_oriented and ifso, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample	•n/a
recovery	recoveries and results assessed.
	• Measures taken to maximise sample recovery and ensure
	representative nature of the samples.

Criteria	JORC Code explanation	Commentary	Commentary
	• Whether a relationship exists between sample recovery and
	grade and whether sample bias may have occurred due to
	preferential loss/gainof fine/coarse material.
Logging	• Whether core and chip samples have been geologically and	•	n/a
	geotechnically logged to a level of detail to support
	appropriate Mineral Resource estimation, mining studies
	and metallurgical studies.
	• Whether logging is qualitative or quantitative in nature. Core
	(or costean, channel, etc) photography.
	• The total length and percentage of the relevant intersections
	_logged. _
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all	•	Soil samples are taken on a regular grid (NE sample lines on a 100m * 50m
techniques	core taken.		spacing) over the zone of interest with each sample being collected from the C
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc		Horizon in the soil profile. The C-Horizon is classified as the weathered
preparation	and whether sampled wet or dry.		lithology at the point of collection. In Tesorito region this generally occurs at a
	• For all sample types, the nature, quality and		depth of between 0 & 2m. As the sample is weathered, by definition there has
	appropriateness of the sample preparation technique.		been remobilization of some elements but the geochemistry is considered
	• Quality control procedures adopted for all sub-sampling		indicative of the lithology.
	stages to maximise representivity of samples.	•	Rock samples, where possible, are taken from outcrops or saprock however
	• Measures taken to ensure that the sampling is		during reconnaissance mapping samples from float material may also be taken
	representative of the in situ material collected, including for		if it is considered by the geologist that the material is locally derived with
	instance results for field duplicate/second-half sampling.		minimum transport. Samples are chip samples with the sample weight varying
	• Whether sample sizes are appropriate to the grain size of		from 2 – 3kg.
	the material being sampled.	•	Outcrops of fresh rock in the sub-tropical environment that characterizes
			Tesorito, are not common. The area is predominantly covered by saprolite, soil
			cover or recent volcanic ash falls. Therefore, rock samples are not collected on
			a regular grid but where they occur and generally exhibit some degree of
			weathering and/or alteration. The geochemistry is indicative of what may be
			found at depth.
Quality of	• The nature, quality and appropriateness of the assaying and	•	All samples are prepared at the ALS Medellin facility using industry accepted
assay data	laboratory procedures used and whether the technique is		preparation procedures. Pulps for assay and analysis are sent to their facility in
and	considered partial or total.		Lima Peru.
laboratory	• For geophysical tools, spectrometers, handheld XRF	•	Gold assays are obtained using a lead collection fire assay technique (Au-
tests	instruments, etc, the parameters used in determining the		AA26) and analyses for an additional 48 elements using multi-acid (four acid)
	analysis including instrument make and model, reading		digest with ICP finish (ME-MS61) at ALS’s laboratory in Lima, Peru.
	times, calibrations factors applied and their derivation, etc.	•	Fire assayforgold is considered a “total” assaytechnique.

Criteria	JORC Code explanation	Commentary	Commentary
	• Nature of quality control procedures adopted (eg standards,	•	An acid (4 acid) digest is considered a total digestion technique. However, for
	blanks, duplicates, external laboratory checks) and whether		some resistant minerals, not considered of economic value at this time, the
	acceptable levels of accuracy (ie lack of bias) and precision		digestion may be partial e.g. Zr, Ti etc.
	have been established.	•	No field non-assay analysis instruments were used in the analyses reported.
		•	Los Cerros uses certified reference material, blank samples and field
			duplicates inserted into the sample sequence to verify both preparation and
			analytical quality.
		•	Results from Los Cerros’ QA/QC samples are reviewed by Los Cerros for
			indications of any significant analytical bias or preparation errors in analyses
			reported by the Laboratory.
		•	The Laboratory also carries out internal laboratory QA/QC checks which are
			also reported and reviewed as part of the Los Cerros. QA/QC analysis. The
			geochemical data is only accepted where the analyses are performed within
			acceptable industry standard limits.
Verification of	• The verification of significant intersections by either	•	All digital data received is verified and validated by the Company’s Competent
sampling and	independent or alternative company personnel.		Person before loading into the assay database.
assaying	• The use of twinned holes.	•	Over limit gold or base metal samples are re-analysed using appropriate,
	• Documentation of primary data, data entry procedures, data		alternative analytical techniques. (Au-Grav22 50g and OG46).
	verification, data storage (physical and electronic) protocols.	•	Reported results are compiled by the Company’s geologists and verified by the
	• Discuss any adjustment to assay data.		Company’s database administrator and exploration manager.
		•	No adjustments to assay data were made.
Location of	• Accuracy and quality of surveys used to locate drill holes	•	Soil and rock-chip sample locations were positioned using a hand-held GPS.
data points	(collar and down-hole surveys), trenches, mine workings	•	Accuracy of a hand-held GPS (+/- 5m) is considered appropriate for this level
	and other locations used in Mineral Resource estimation.		of early exploration.
	• Specification of the grid system used.	•	The grid system is WGS84 UTM Z18N.
	• Quality and adequacy of topographic control.
Data spacing	• Data spacing for reporting of Exploration Results.	•	A soil geochemical survey (207 samples) was undertaken by Los Cerros over
and	• Whether the data spacing and distribution is sufficient to		a regular grid with fifty meter spaced samples along 100m-spaced lines
distribution	establish the degree of geological and grade continuity		extending over an area of 1.7km x 1.5km to fill in the 200 m spacing of the
	appropriate for the Mineral Resource and Ore Reserve		former soil geochemical survey.
	estimation procedure(s) and classifications applied.	•	A soil geochemical survey (194 samples) was undertaken by the previous
	• Whether sample compositing has been applied.		option owner (Minera Seafield SAS) over a regular grid with fifty meter spaced
			samples along 200m-spaced lines extending over an area of 1.7km x 1.5km.
		•	The interpretation of surface mapping and sampling relies on correlating
			isolated points of informationthat areinfluenced byfactors suchasweathering,

Criteria	JORC Code explanation	Commentary	Commentary
			accessibility and sample representativity. This impacts on the reliability of
			interpretations which are strongly influenced by the experience of the geologic
			team. Structures, lithologic and alteration boundaries based on surficial
			information are interpretations based on the available data and will be refined as
			more data becomes available during the exploration program.
		•	It is only with drilling, that provides information in the third dimension, that the
			geologic model can be refined.
Orientation of	• Whether the orientation of sampling achieves unbiased	•	The nature and extent of the soil geochemical sampling achieves an unbiased
data in	sampling of possible structures and the extent to which this		representation of the distribution of the elements assayed.
relation to	is known, considering the deposit type.	•	Rock chip sampling can be biased positively or negatively by effects such as
geological	• If the relationship between the drilling orientation and the		alteration. Silicification associated with fault systems or hydrothermal systems
structure	orientation of key mineralised structures is considered to		results in rocks that are more resistant whereas whole phyllic or potassic
	have introduced a sampling bias, this should be assessed		alteration can have the opposite effect. It is an indication of what may be
	and reported if material.		encountered at depth but surface sampling in this environment does not map
			the subsurface.
		•	The current sampling pattern is considered appropriate for the program to
			reasonably assess the prospectivity of known features interpreted from other
			data sources.
Sample	• The measures taken to ensure sample security.	•	All samples are secured in a closed facility at Quinchia secured by armed
security			guard on a 24/7 basis. Each batch of samples are transferred in a locked
			vehicle and driven 165km to ALS laboratories for sample preparation in
			Medellin.
Audits or	• The results of any audits or reviews of sampling techniques	•	n/a at this stage as no audits have been undertaken.
reviews	and data.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership	•The Exploration Titles were validly issued as Concession Agreements pursuant
tenement and	including agreements or material issues with third parties	to the Mining Code.
	such as joint ventures, partnerships, overriding royalties,	•The Concession Agreement grants its holders the exclusive right to explore for
	native title interests, historical sites, wilderness or national	and exploit all mineralsubstances onthe parcelof land covered by such

Criteria	JORC Code explanation	Commentary
land tenure	park and environmental settings.	concession agreement.
status	• The security of the tenure held at the time of reporting along	•There are no outstanding encumbrances or charges registered against the
	with any known impediments to obtaining a licence to	Exploration Title at the National Registry.
	operate in the area.
Exploration	• Acknowledgment and appraisal of exploration by other	•Artisanal gold production was most significant from the Miraflores mines during
done by other	parties.	the 1950s. Interest was renewed in the area in the late 1970s. In the 1980s the
parties		artisanal mining cooperative "Asociación de Mineros de Miraflores" (AMM) was
		formed.
		•In 2000, the Colombian government's geological division, INGEOMINAS, with
		the permission of the AMM, undertook a series of technical studies at
		Miraflores, which included geological mapping, geochemical and geophysical
		studies, and non-JORC compliant resource estimations.
		•In 2005, Sociedad Kedahda S.A. (Kedahda), now called AngloGold Ashanti de
		Colombia S.A., a subsidiary of AngloGold Ashanti Ltd., entered into an
		exploration agreement with the AMM, and carried out exploration including
		diamond drilling in 2005 to 2007 at Miraflores, completing 1,414.75m.
		•In 2007 Kedahda optioned the project to B2Gold Corp. (B2Gold), which carried
		out exploration including additional diamond drilling from 2007 to 2009.
		B2Gold made a NI 43-101 technical study of the Miraflores Project in 2007.
		•On March 24, 2009, B2Gold advised the AMM that it had decided not to make
		further option payments and the property reverted to AMM under the terms of
		the option agreement.
		•Seafield signed a sale-purchase contract with AMM to acquire a 100% interest
		in the Mining Contract on April 16, 2010.
		•Seafield completed the payments to acquire 100% of rights and obligations on
		the Miraflores property in November 30, 2012. AMM stopped the artisanal
		exploitation activities in the La Cruzada tunnel on the same date, November
		30, 2012 and transferred control of the mine to Seafield.
		•Since June 2010, Seafield has drilled 63 drillholes for a total of 22,259m on the
		Miraflores Project adjacent to Tesorito.
		•The initial exploration undertaken by Seafield at Tesorito in 2012 and 2013
		included systematic geological mapping, rock and soil sampling, followed by
		trenching within the area of anomalous Au and Cu in soils.
		•Seafield commissioned an Induced Polarisation (IP) survey over the Tesorito
		Prospect in August 2012 and undertook a three-hole diamond drilling program
		fora totalof 1,150.5m in 2013.

Criteria	JORC Code explanation	Commentary	Commentary
Geology	• Deposit type, geological setting and style of mineralisation.	•	The Tesorito area is underlain mainly by fine to coarse grained, intrusive
			porphyritic rocks of granodioritic to dioritic composition, which intrude an
			andesite porphyry body of the Miocene Combia formation, tertiary
			sandstones and mudstones of the Amaga Formation, as well as basaltic
			rocks of the Barroso Formation of Cretaceous age. The intrusives suite
			show variable intensities of hydrothermal alteration, including potassic
			alteration overprinted by quartz-sericite and sericite-chlorite alteration.
			NNE to EW faulting controls the intrusive emplacement and
			mineralization, including faulting of contacts between the rock units. The
			depth of sulphide oxidation observed in the drill holes is approximately
			20m.
		•	Gold, copper and molybdenite observed in the intrusive rocks is typical of
			Au-Cu-Mo rich porphyry deposit; mineralisation occurs as sulphides and
			magnetite in disseminations as well as in veinlets and stockworks of
			quartz. Pyrite, chalcopyrite and molybdenite have been recognised.
Drill hole	• A summary of all information material to the understanding	•	The results have been reported for all drilling undertaken on the Tesorito
Information	of the exploration results including a tabulation of the		Prospect to date (the first three holes TS_DH_01 – 03) which were drilled
	following information for all Material drill holes:		by the previous owners of the project, and the last 4 holes drilled by
	o easting and northing of the drill hole collar		Metminco (now called Los Cerros) in 2018 (TS_DH04 – 07).
	o elevation or RL (Reduced Level – elevation above sea
	level in metres) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the basis
	that the information is not Material and this exclusion does
	not detract from the understanding of the report, the
	Competent Person should clearly explain why this is the
	case.
Data	• In reporting Exploration Results, weighting averaging	•	No metal equivalent values have been stated.
aggregation	techniques, maximum and/or minimum grade truncations (eg
methods	cutting of high grades) and cut-off grades are usually
	Material and should be stated.
	• Where aggregate intercepts incorporate short lengths of high
	grade results and longer lengths of low grade results, the

Criteria	JORC Code explanation	Commentary	Commentary
	procedure used for such aggregation should be stated and
	some typical examples of such aggregations should be
	shown in detail.
	• The assumptions used for any reporting of metal equivalent
	_values should be clearly stated. _
Relationship	• These relationships are particularly important in the reporting	•	The results reported in this announcement are considered to be of an early
between	of Exploration Results.		stage in the exploration of the project.
mineralisation	• If the geometry of the mineralisation with respect to the drill	•	Mineralisation geometry is		not accurately known		as the exact number,
widths and	hole angle is known, its nature should be reported.		orientation and extent of mineralised structures are not yet determined.
intercept	• If it is not known and only the down hole lengths are
lengths	reported, there should be a clear statement to this effect (eg
	_‘down hole length, true width not known’). _
Diagrams	• Appropriate maps and sections (with scales) and tabulations	•	Geological map showing exploration results including drilling over the Tesorito
	of intercepts should be included for any significant discovery		Prospect is shown in Figures 1 & 3
	being reported These should include, but not be limited to a	•
	plan view of drill hole collar locations and appropriate
	sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is	•	Summary statistics of selected elements for soil-sampling results
reporting	not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid			GOLD	SILVER	COPPER	MOLYBDENUM
	misleading reporting of Exploration Results.			(ppb)	(ppm)	(ppm)	(ppm)
			Number of values	207	207	207	207
			Minimum	10	0.019	1.88	0.02
			Maximum	1360	13.9	1590	57.6
			Mean	80.53	0.2867	93.04	1.57
			Median	10	0.139	58.8	0.61
			Mode	10	0.093	121.5	0.24

Criteria	JORC Code explanation	Commentary
Other	• Other exploration data, if meaningful and material, should be	•A ground magnetic survey that covered the Chuscal and Tesorito Prospects
substantive	reported including (but not limited to): geological	was performed in 2019 and presented two magnetic high anomalies that are
exploration	observations; geophysical survey results; geochemical	spatially related to the soil gold and molybdenum anomalies and are presented
data	survey results; bulk samples – size and method of treatment;	in Figure 1. The magnetic high anomalies appear associated with the presence
	metallurgical test results; bulk density, groundwater,	of potassic alteration and quartz-magnetite veining and stockworks.
	geotechnical and rock characteristics; potential deleterious
	or contaminating substances.
Further work	• The nature and scale of planned further work (eg tests for	•Additional drilling is required to systematically test the nature and extent of
	lateral extensions or depth extensions or large-scale step-	both the higher-grade mineralization that appears to be associated with EW
	out drilling).	trending sheeted veins, as well as the broader intercepts of NNE-trending
	• Diagrams clearly highlighting the areas of possible	moderate-grades related to the porphyry-style mineralization.
	extensions, including the main geological interpretations and	•The objective of the proposed program is to test continuity of wide high grade
	future drilling areas, provided this information is not	intersections in holes TSDH-02 and TSDH-07 to potentially guide resource
	commercially sensitive.	targeted drilling in a second phase drilling program, and to test the north gold-
		molybdenum soil geochemistry anomally.