Resolute Mining Limited — Capital/Financing Update 2014

Mar 27, 2014

01

28 March 2014

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ASX ANNOUNCEMENT
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Pre-Feasibility Study Boosts Ore Reserves at Syama by 54% to 3.15 Million Ounces

HIGHLIGHTS

• Independent Underground Pre-Feasibility Study completed by Snowden has contributed to a 54% increase in ore reserves at the Syama Project in Mali

• Ore reserves grow to 3.15Moz, up by 1.10Moz with the addition of 14.3Mt of underground ore

• Pre-Feasibility Study supports high volume, low cost and financially viable underground operation extending long term production at Syama by at least 7 years to beyond 2025

• Detailed geotechnical studies support sub-level caving (SLC) as preferred mining method

• Diamond drilling continues to upgrade and extend the Syama ore body at depth with early significant intercepts including 55m @ 3.17g/t Au and 41m @ 2.92g/t Au

• Definitive Feasibility Study is expected to commence in 2015 following completion of a proposed 16,000m infill drilling campaign

Resolute Mining Limited (ASX: RSG, “Resolute” or the “Company”) is pleased to announce a 54% increase in ore reserves at its Syama Project in Mali following the completion of a Pre-Feasibility Study (PFS) for development of the underground potential below the open pit.

Resolute Chief Executive Officer, Peter Sullivan, was extremely pleased with the outcomes of the Syama Underground Pre-Feasibility Study.

“This is a significant addition to the reserve inventory complimenting the successful work by our development and operating teams to reduce costs, improve plant performance and optimise capital spend at Syama. This supports long term gold production beyond 2025 at this world class project,” Mr Sullivan said.

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BACKGROUND

The Company announced to the ASX on 27 August 2013, that it was continuing to assess the optimal approach to mining and treatment of the ore body at Syama to deliver strong positive and consistent cash flows going forward. At that time, the evaluation conducted as part of the updated life of mine plan for Syama concluded the removal of the Stage 3 open pit cutback would deliver significant cash flow and capital management benefits. This material modification to the mine plan also provided the opportunity to look at alternative means to exploit the large resource base beneath the open pit.

An independent conceptual study completed by Snowden Mining Industry Consultants (Snowden) indicated potential for an underground operation utilising a caving mining method similar to that developed successfully at Resolute’s Mt. Wright operation in Queensland. Resolute initiated the Syama PFS in August 2013 to determine the preferred stoping method, mine layout and production rate.

PRE-FEASIBILITY STUDY OUTCOMES

Over the preceding six months Snowden has conducted a detailed geotechnical analysis to assess the caving characteristics of the Syama underground ore. Results confirm that sublevel caving (SLC) provides an opportunity to establish a large volume, low cost and economically viable underground operation (Figure 1) that will maintain mill production for at least 7 years beyond the completion of open pit mining currently scheduled for late FY2020. Investigation of other more selective mining methods did not provide the reduced cost profile or superior ore delivery provided by the SLC schedule.

The key benefits highlighted by Snowden’s selection of SLC include:

• Opportunity to exploit the large resource beneath the open pit, providing access to a Probable ore reserve of 14.3Mt @ 2.4g/t Au (see Table 1 and JORC Code 2012 Table 1).

• Well controlled transition period from open cut mining to underground operations, with the pre-production development schedule including decline and level access infrastructure to be completed in 30 months.

• Sustained high output (1.96Mtpa) ore production profile extending beyond the completion of open pit mining.

• Opportunity to make an early start to the decline portal located in fresh rock exposures in the open pit reducing decline development costs.

• Ability to exploit a high tonnage, high metal content zone immediately below the open pit without leaving a crown pillar.

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SYAMA ORE RESERVES

As a result of the Syama PFS the underground reserves have been calculated and included into the new Syama ore reserves as shown in Table 1.

Table 1: Syama Ore Reserves as at 31 December 2013

Project	Classification	Tonnes	Grade	Metal
		Mt	g/t Au	kOz Au
Syama Open Pit1	Proved Probable	10.14 3.14	2.99 2.59	976 261
	Total	13.28	2.89	1,237
Syama Satellites1	Proved Probable	4.23 6.45	2.47 2.26	337 468
	Total	10.69	2.34	805
Underground2	Probable	14.30	2.40	1,103
Total	Proved & Probable	38.26	2.65	3,145

Note: Reserves have been identified in two categories which comprise 2012 JORC Code compliant Reserves and those which remain 2004 JORC Code compliant. Where no new work has occurred to the Reserve position since 30 June 2013, the Reserves remain listed as compliant under the 2004 JORC Code.

1 – From previously reported Ore Reserves reported under JORC code 2004 regulations.

2 – Reported under JORC 2012 code regulations.

The Ore Reserve for underground mining at the Syama Project in Mali has been estimated following completion of the Pre-Feasibility Study by Snowden.

The Pre-Feasibility Study includes:

• Geological models developed using 3 dimensional M.I.K. techniques.

• Resources estimated from these models using an initial cut-off grade of 1.8g/t which is calculated as the marginal cut-off for Sub Level Caving underground mining methods.

• Reserves quoted as at 31 December 2013. Open pit reserves are quoted above a 1.0g/t cut off and underground reserves above a 1.8g/t cut off.

• Detailed geotechnical studies on the ore body geometry and geotechnical conditions which confirmed suitability to SLC mining methods.Ore loss and dilution factors were estimated from similar operations and Snowden’s industry experience. Industry best-practice software (PCSLC) was used to model the interactive material flows expected in the SLC operation.

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• Operating costs calculated from first-principles using both fixed and variable components, bench marked productivity rates adjusted to reflect local operating conditions and processing costs based on the existing operating practice at Syama.

• The Syama process plant which has been operating in its current configuration for several years and no changes to the circuit are anticipated.

• Permitting under the existing Environment Permit (07- 0054/MEA – SG) issued by the Ministry of Environment and Sanitation on the 22 November 2007.

• Measured and Indicated Resources converted to Probable Reserves. Approximately 50% of the Ore Reserve metal is derived from Measured Resources and classified as a Probable Ore Reserve as some modifying factors are only at a PFS (+/-25%) level of confidence.

• A small component (2%) of Inferred Resources that is included in the later years of the mine plan. This does not materially impact the outcome.

• A gold price of US$1,300 per oz.

• Bulk densities derived from historical test work and validated against current production.

SLC is a highly mechanised mining method, well-understood and used in many locations around the world; it can deliver the required production rate to replace open pit production (about 2Mtpa), at an acceptable cost. Resolute successfully uses a similar caving method at its Mt. Wright Project in Queensland.

Table 2: Key results of the PFS Study

**Item **	Base case
**Production **
Ore (kt)	14,296
Grade (Au g/t)	2.4
Au contained (koz)	1,103
Operating Costs
Mining (US$)	40 pertonne
Processing &Admin(US$)	30 pertonne
Financials
Pre-ProductionCapital(US$M)	85.6
Total Revenue (US$M)	1,147
IRR (pre-tax)	28%

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DIAMOND DRILLING PROGRAM

In addition, as announced to the ASX on 19 December 2013 the early results of the PFS had highlighted that the block model under-represented grade, tonnage and metal content beneath the 0m RL (70m below the base of the pit) due to insufficient data provided by the wide spaced drilling. Snowden considered that additional drilling would improve the grade and tonnage of the resource in line with the typical mineralisation grade profile observed in the open pit.

Resolute consequently made an immediate start to diamond drilling, due to the importance for fully evaluating and upgrading the underground potential. Assay results for the first two holes of a planned 5,000m infill program have been received and significant intercepts include:

 SYRD387 41m @ 2.92g/t Au from 321m  SYRD388 12m @ 4.23g/t Au from 365m and 55m @ 3.17g/t Au from 398m

Note: Intersections are reported as down hole lengths and not true width. See JORC Table 1 for the relevant JORC Code 2012 disclosures including Section 1 “Sampling Techniques and Data” and Section 2 “Reporting of Exploration Results” Details of the significant drilling intercepts have been provided in Table 3 and in Figures 2, 3 and 4 which show sections and a location plan of the reported drill holes.

Over the next 12 months the Company plans to complete a more comprehensive second phase diamond drilling program of 16,000m that will infill and extend the drilled resource to at least the -200mRL. The results of this drilling program will be incorporated into the Definitive Feasibility Study the Company plans to commence in 2015.

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PETER SULLIVAN Chief Executive Officer

Competent Persons Statements:

The information in this report that relates to the Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Mr Richard Bray who is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Andrew Goode, a member of The Australian Institute of Mining and Metallurgy. Mr Richard Bray and Mr Andrew Goode both have more than 5 years’ experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity which they are 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 Richard Bray and Mr Andrew Goode are full time employees of Resolute Mining Limited Group and each hold equity securities in the Company. They have consented to the inclusion of the matters in this report based on their information in the form and context in which it appears. Reserves have been divided into two categories which comprise 2012 JORC Code compliant Reserves and those which remain 2004 JORC Code compliant. Where no new work has occurred to the Reserve position since 30 June 2013, the Reserves remain listed as compliant under the 2004 JORC Code.

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Figure 1: Long Section view of Proposed Underground Development 07

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Figure 2: Drilling Section 23250 08
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Figure 3: Drilling Section 23550 09
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Figure 4: Location Plan of Reported Drill hole Intercepts 011

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012

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Table 3: Diamond Drilling Assay Results.

Hole ID	North	East	Dip	Azimuth	From	To	Interval	Grade
	WGS	WGS		WGS	m	m	m	g/t
SYRD387 1194662		820188	-60	96	36	38	2	1.23
SYRD387 1194662		820188	-60	96	162	165	3	1.00
SYRD387 1194662		820188	-60	96	182	183	1	1.76
SYRD387 1194662		820188	-60	96	212	213	1	1.20
SYRD387 **1194662 **		820188	-60	96	220	225	5	2.66
SYRD387 1194662		820188	-60	96	239	242	3	1.96
SYRD387 1194662		820188	-60	96	249	250	1	1.09
SYRD387 1194662		820188	-60	96	282	285	3	2.38
SYRD387 1194662		820188	-60	96	299	316	17	1.89
SYRD387 **1194662 **		820188	-60	96	321	**362 **	41	**2.92 **
SYRD387 1194662		820188	-60	96	368	369	1	1.22
SYRD387 1194662		820188	-60	96	375	394	19	1.55
SYRD387 1194662		820188	-60	96	398	413	15	2.77
SYRD388 1194404		819996	-60	98	46	47	1	1.25
SYRD388 1194404		819996	-60	98	162	164	2	1.73
SYRD388 1194404		819996	-60	98	181	182	1	1.53
SYRD388 1194404		819996	-60	98	251	261	10	1.52
SYRD388 1194404		819996	-60	98	269	274	5	1.51
SYRD388 1194404		819996	-60	98	298	299	1	1.21
SYRD388 1194404		819996	-60	98	304	308	4	1.17
SYRD388 1194404		819996	-60	98	314	315	1	1.55
SYRD388 1194404		819996	-60	98	351	352	1	1.76
SYRD388 **1194404 **		819996	-60	98	365	377	12	4.23
SYRD388 1194404		819996	-60	98	383	387	4	1.00
SYRD388 1194404		819996	-60	98	392	394	2	1.76
SYRD388 **1194404 **		819996	-60	98	398	453	55	3.17
SYRD388 **1194404 **		819996	-60	98	**457 **	**467 **	10	**5.02 **
SYRD388 **1194404 **		819996	-60	98	474	480	6	2.11
SYRD388 **1194404 **		819996	-60	98	**484 **	**487 **	3	**2.92 **
SYRD388 1194404		819996	-60	98	493	494	1	1.35
SYRD388 1194404		819996	-60	98	507	511	4	1.65

See notes following

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Notes to Accompany Table 3:

• Grid coordinates are in WGS84 Zone 29.

• All holes are planned WGS azimuth 95[0] which is local Grid 90[0] .

• All drill holes are HQ and NQ diamond core orientated and sampled every 1.0m by cutting the core in half to provide a 2-4kg sample.

• Cut-off grade reporting of intercepts is >1.0 g/t au with a maximum of 3m internal dilution included within the intercept.

• Samples are analysed for gold by Au-AA25 method which is a 30g fire assay fusion with AAS instrument finish.

• No top cutting of individual assays prior to length weighted compositing of the reported intercept has been applied.

• Given that the angle of the holes is 60[0] from the horizontal and the ore zone is 60[0] from horizontal the reported intercepts are slightly larger than the true width of the ore zones.

• All other drill holes depicted on accompanying sections and plans were from previous years and significant results previously reported, under JORC 2004 guidelines.

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SYAMA GOLD MINE MALI JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	Mineral resource estimate based on data collected from reverse circulation (RC) and diamond core (DD) drill holes. RC 1m intervals are sampled via a cyclone and three tier splitter, to obtain a 2-4kg sample, which is sent to the laboratory for pulverising to provide a 30g charge for analysis. Diamond core is sampled at 1m intervals and cut in half, to provide a 2-4kg sample, which is sent to the laboratory for crushing, splitting and pulverising, to provide a 30g charge for analysis. Sampling and sample preparation protocols are industry standard and are deemed appropriate by the Competent Person.
Drilling techniques	 Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond _tails, face-sampling bit or other type, whether _	Drill types used include RC and diamond core of HQ and NQ sizes. Drill core is oriented at 3m down hole intervals using spear method.

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	core is oriented and if so, by what method, etc.).
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Diamond core interval recoveries are measured and logged. RC recoveries are not measured and no issues were identified that would cause a preferential loss or gain or sample bias. Appropriate measures are taken to maximise sample recovery and ensure representative nature of the samples.
Logging	 Whether core and chip samples have been geologically and 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.	RC and DD drill holes are geologically logged for colour, grainsize, lithology, minerals and alteration. RC drill holes are logged on 1m intervals and DD drill holes are logged on geologically domained intervals. Geotechnical and structure orientation data are measured and logged for diamond core intervals. Diamond core is photographed (wet and dry); RC chip trays are collected for records and are photographed. Diamond core and RC chips are logged onto paper records and / or into Excel spread sheets, then validated and imported into the digital drill hole database. Holes are logged in their entirety (100%).
Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	RC intervals are riffle split (dry) to obtain a 2-4kg sample, which are sent to the laboratory for pulverising. Wet samples are thoroughly dried prior to riffle splitting. Diamond core is sampled at 1m intervals and cut in half to obtain a 2-4kg sample which is sent to the laboratory for crushing, splitting and pulverising. RC and DD samples are submitted to ALS Bamako, SGS Morila and SGS Syama laboratories for sample preparation and analysis. Sample preparation includes oven drying, crushing to 10mm and splitting (core only), pulverising to 85% passing 75 microns. These are deemed to be the appropriate to the material being sampled. Field duplicates (RC) are collected every 1:20 samples at the same time using the same method as the parent sample. Field duplicates (DD) are split in the lab after crushing. Sampling, sample preparation and quality control protocols are industry standard and all attempts are made to ensure an unbiased representative sample is collected. The methods applied in this process are deemed appropriate by the Competent Person.

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	 Whether sample sizes are appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	RC and DD samples are analysed for gold by ALS Bamako Au-AA25 method, or SGS FAA303 method, which is a 30g fire assay fusion with AAS instrument finish. The analytical method is appropriate for the style of mineralisation. No geophysical tools were used to determine elemental concentrations used in resource estimations. Quality control (QC) procedures include the use of certified standards and blanks (1:20), non- certified sand blanks (1:20), field duplicates (RC) (1:20). Umpire pulp analysis of 2-5% of pulps is performed by a second laboratory, at the end of a drill program, to verify the results from the primary laboratory. Laboratory quality control data, including laboratory standards, blanks, duplicates, repeats and grind size results are also captured into the digital database and analysed for accuracy and precision. Analysis of the QC sample assay results indicates that an acceptable level of accuracy and precision has been achieved.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	Verification of significant intersections has been completed by company personnel and the competent person. No drill holes within the resource were twinned. Drill holes are logged onto paper templates or Excel templates with lookup codes, validated and then compiled into a relational SQL 2008 database using DataShed data management software. The data management software has a variety of verification protocols which are used to validate the data entry. The DataShed drill hole database is backed up on a daily basis to the head office server. Assay result files are reported by the laboratory in CSV format and are imported into the SQL database without adjustment or modification.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	Collar coordinates are picked up in UTM (WGS84) by staff surveyors using an RTK DGPS with an expected accuracy of +/-0.05m; elevations are height above EGM96 geoid. Down hole surveys are collected every 30-50m using Reflex magnetic instruments including EZTRAC, FLEXIT, single shot and multi shot tools. A time-dependent declination is applied to the magnetic readings to determine UTM azimuth. Coordinates and azimuth are reported in UTM WGS84 Zone 29 North.

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		Coordinates are translated to local mine grid where appropriate.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	Drill hole spacing is sufficient to demonstrate geological and grade continuity appropriate for the Mineral Resource and the classifications applied under the 2012 JORC Code. The appropriateness of the drill spacing is reviewed by the geological technical team, both on site and head office. This is also reviewed by the Competent Person. RC and diamond samples are collected on 1m intervals; no sample compositing is applied during sampling.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	Holes are drilled predominantly perpendicular to mineralised domains where possible. No orientation based sampling bias has been identified in the data.
Sample security	 The measures taken to ensure sample security.	RC and diamond samples are collected from the drill site and stored on site, then securely dispatched to the laboratories.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	External audits of procedures indicate protocols are within industry standards.

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Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Drilling is conducted within the Malian Exploitation Concession Permit PE—008/93 which covers an area of 200.6 Km2 Resolute Mining Limited has an 80% interest in the Syama project and the Exploitation Permit PE--008/93, on which it is based, through its Malian subsidiary, Sociêtê des Mines de Syama SA (SOMISY). The Malian Government holds a free carried 20% interest in SOMISY. The Permit is held in good standing. Malian mining law provides that all mineral resources are administered by DNGM (Direction Nationale de la Géologie et des Mines) or National Directorate of Geology and Mines under the Ministry of Mines, Energy and Hydrology.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	The Syama deposit was originally discovered by a regional geochemical survey undertaken by the Direction National de Géologie et des Mines (DNGM) with assistance from the United Nations Development Program (UNDP) in 1985. There had also been a long history of artisanal activities on the hill where an outcropping chert horizon originally marked the present day position of the open pit. BHP during 1987-1996 sampled pits, trenches, auger, RC and diamond drill holes across Syama prospects. Randgold Resources Ltd during 1996-2000 sampled pits, trenches, auger, RAB, RC and diamond drill holes across Syama prospects.
Geology	 Deposit type, geological setting and style of mineralisation.	The Syama Project is found on the northern margin of the Achaean-Proterozoic Leo Shield which forms the southern half of the West African Craton. The project area straddles the boundary between the Kadiana–Madinani terrain and the Kadiolo terrain. The Kadiana-Madinani terrain is dominated by greywackes and a narrow belt of interbedded basalt and argillite. The Kadiolo terrain comprises polymictic conglomerate and sandstone that were sourced from the Kadiana-Madinani terrain and deposited in a late- to syntectonic basin. Prospects are centred on the NNE striking, west dipping, Syama-Bananso Fault Zone and Birimian volcano-sedimentary units of the Syama Formation. The major commodity being sought is gold.

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Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar 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 Whole 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.	All information including easting, northing, elevation, dip, azimuth, coordinate system, drill hole length, intercept length and depth are measured and recorded in UTM Zone 29 WGS84. The Syama belt is mostly located on the Tengrela 1/200,000 topo sheet (Sheet NC 29-XVIII). The Syama local grid has been tied to the UTM co-ordinate system. Spectrum Survey & Mapping from Australia established survey control at Syama using AusPos online processing to obtain an accurate UTM Zone 29 (WGS84) and ‘above geoid’ RL for the origin of the survey control points. Accuracy of the survey measurements is considered to meet acceptable industry standards. Drill hole information has been tabulated for this release in Table 3 of the accompanying text. Detailed information in relation to the results from drilling used to calculate the Resource and Reserve is not included in this release. For completeness the following information about the drill holes used in the reserve calculation and diamond drilling is provided: 1. Easting, Northing and RL of the drill hole collars are measured and recorded in UTM Zone 29 (WGS84). 2. Dip is the inclination of the drill hole from horizontal. For example a drill hole drilled at -600is 600from the horizontal. 3. Down hole length is the distance down the inclination of the hole and is measured as the distance from the horizontal to end of hole. 4. Intercept depth is the distance from the start of the hole down the inclination of the hole to the depth of interest or assayed interval of interest. The Competent Persons do not believe the listing of the entire drill hole data base used to calculate the resources is relevant for this release.
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. 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 procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown indetail.	All reported assay intervals have been length weighted to the nearest 1.0m. No top cutting has been applied. Up to 3m of internal dilution has been allowed to be included in the interval reporting. Higher grade intervals internal to broader zones are reported as included intervals in Table 3. See notes accompanying Table 3 of the text.

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	 The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	The mineralisation is steeply dipping at approximately 600from the horizontal. Drill hole azimuths were planned at local grid 900(950WGS84) at a general inclination of - 600east to achieve as close to perpendicular to the ore zone as possible. At the angle of the drill holes and the dip of the ore zones, the reported intercepts will be slightly more than true width.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Relevant maps, diagrams and tabulations are included in the body of text.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	Significant intercepts of new drill holes have been reported in this release. All other drilling depicted on the sections and maps have been released in previous years.
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	No geophysical and geochemical data and any additional exploration information are reported in this release as they are not deemed relevant to the release.
Further work	 The nature and scale of planned further work _(e.g. tests for lateral extensions or depth _	Down Depth drilling in order to test the depth extensions of the Syama ore body, is ongoing.

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	extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Relevant maps and diagrams are included in the body of text.

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Section 3 Estimation and Reporting of Mineral Resources

Criteria	JORC Code explanation	Commentary
Database integrity	 Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.  Data validation procedures used.	Data have been compiled into a relational SQL database; the setup of this database precludes the loading of data which do not meet the required validation protocols. The data is managed using DataShed drill hole management software using SQL database techniques. Validation checks are conducted using SQL and DataShed relational database standards. Data has also been checked against original hard copies for 75% of the data, and where possible, loaded from original data sources. Resolute carried out the following basic validation checks on the data supplied prior to resource estimation:  Drill holes with overlapping sample intervals.  Sample intervals with no assay data. Duplicate records.  Assay grade ranges.  Collar coordinate ranges.  Valid hole orientation data There are no significant issues identified with the data.
Site visits	 Comment on any site visits undertaken by the Competent Person and the outcome of those visits.  If no site visits have been undertaken indicate why this is the case.	Mr Richard Bray is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Andrew Goode, a member of The Australian Institute of Mining and Metallurgy are the Competent Persons who have both visited this site on numerous occasions. All aspects of drilling, sampling and mining are considered by the Competent Persons to be of a high industry standard.
Geological interpretation	 Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.  Nature of the data used and of any assumptions made.  The effect, if any, of alternative interpretations on Mineral Resource estimation.  The use of geology in guiding and controlling Mineral Resource estimation.  The factors affecting continuity both of grade	The digital database used for the interpretation included logged intervals for the key stratigraphic zones of Syama. Detailed geological logs were available in hardcopy and digital and reviewed where necessary. Drill density (15m by 50) for the majority of the Syama area allows for confident interpretation of the geology and mineralized domains. More recent infill/verification drilling of selected more structurally complicated areas, confirms the positions of mineralized zones. Geological and structural controls support modelled mineralized zones. Continuity of mineralization is affected by proximity to structural conduits (allowing flow of mineralized fluids), stratigraphic position, lithology of key stratigraphic units and porosity of host lithologies. Theinterpretationsfortheweathering surfaceshave beencompiled by site geologicalpersonnel

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	and geology.	using the drill hole database and the logs identifying Oxide, Transitional and Fresh material.
Dimensions	 The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	The Syama study area extends for approximately 1,000 metres in strike and the west dipping gold mineralised zone is between 100-200 metres in horizontal width, narrowing at its southern and northern limits. The Mineral Resource is limited in depth by drilling, which extends from surface to a maximum depth of approximately 600 metres vertically.
Estimation and modelling techniques	 The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.  The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.  The assumptions made regarding recovery of by-products.  Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterization).  In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.  Any assumptions behind modelling of selective mining units.  Any assumptions about correlation between variables.  Description of how the geological interpretation was used to control the resource estimates.  Discussion of basis for using or not using _grade cutting or capping. _	The method of Multiple Indicator Kriging (MIK) was used to estimate gold. MIK of gold grades use indicator variography based on the resource composite sample grades within distinct mineralised populations defined by wire-frames. Within each domain gold grade continuity was characterised by indicator variograms at 14 indicator thresholds spanning the global range of grades. Data viewing, compositing and wire-framing were performed using Micromine software. Exploratory data analysis, variogram calculation and modelling, and resource estimation have been performed using Supervisor and Micromine software. . MIK was used as the preferred method for estimation of gold at Syama as the approach has been demonstrated to work well in a large number of deposits of diverse geological styles. MIK has been used successfully in the open cut estimation. The gold mineralisation seen at Syama is typical of that seen in most structurally controlled gold deposits and where the MIK method has been found to be of most benefit. Extensive open pit mining has occurred at Syama by SOMISY (Resolute Mining Ltd) and previous owners of the project. The current resource estimate has been reconciled to recent production and shows good agreement. The resource model also estimates sulphide and organic carbon using Ordinary Kriging for metallurgical characterization. Block dimensions used was 5mE by 12.5mN by 5mRL and chosen due to this dimension approximating the average dimensions of the underground extraction methods reviewed. Gold is the only economic metal estimated in the current model. Mineralised domain wire-frames developed at nominal cut off intervals to generate shells and used to flag resource composites and code domain proportions to the block model. These domain shells were generated using Leapfrog implicit modelling software at 0.5 g/t, 1.0g/t, 1.5g/t, 2.0g/t and 4.0g/t. A further division of the model domains into oxide and fresh rock is applied by triangulated surfaces interpreted from the logging of the drill samples.

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	 The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	Statistical analysis showed the gold population in each domain shell, to be log normal or close to log normal in distribution. Each data set within each shell has a moderate to low coefficient of variation. Selection of the median as the average grade of the highest indicator threshold used to reduce the influence of extreme composite grades on the model gold estimates. Visual validation of grade trends and gold distributions was carried out. Reconciliation with recent production shows good agreement between the predicted resource estimates and mining outcomes.
Moisture	 Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	All tonnages are estimated on a dry basis.
Cut-off parameters	 The basis of the adopted cut-off grade(s) or quality parameters applied.	Mineral Resources reported at a 1.8 g/t Au grade cut-off for this underground model. This is an economic cut-off which was considered in the 2013 Pre- Feasibility Study on the Syama Underground.
Mining factors or assumptions	 Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	Mining method for the extraction of gold at Syama is currently by open pit mining excavating benches of 2.5 metres in height. Grade control is conducted on sampling from high quality reverse circulation drilling, spaced at approximately 4mE by 10mN, with samples taken at one and half metre intervals down-hole. The anticipated mining method for Underground exploitation will be Sub-Level Caving (SLC) and its derivative Stoping Under Rock Fill (SURF). The Underground model was generated from the 150m RL to the -200m RL. Open pit methods will be used by Resolute to the 70mRL. The reconciliation, geological continuity, structural trends and metallurgical factors experienced within the open pit are assumed to apply to the underground.
Metallurgical factors or assumptions	 The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not	Extensive metallurgical investigations and reporting has been completed prior to the commencement of mining and milling at Syama. The processing method involves crushing, milling, flotation and roasting, followed by conventional CIL recovery. The Syama plant in its current form has been in successful operation since 2007. There is no evidence to suggest that the metallurgical characteristics of ore extracted from underground will change from that encountered to date within the open pit operations.

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	always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.
Environmental factors or assumptions	 Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a green fields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	It is a requirement of Decree No.03-594/P-RM of 31 December 2003 of Malian law that an Environmental and Social Impact Study (Étude d’Impact Environmental et Social – EIES) must be undertaken to update the potential environmental and social impacts of the mine’s redevelopment. In November 2007 the EIES for the Syama Gold Mine was approved and an Environment Permit (07- 0054/MEA – SG) issued by the Ministry of Environment and Sanitation on the 22 November 2007 At Syama there are three key practices for disposal of wastes and residues namely, stacking of waste rock from open pit mining; storage of tailings from mineral processes; and “tall-stack dispersion” of sulphur dioxide from the roasting of gold bearing concentrate. The Environmental & Social Impact Study – “Société des Mines de Syama, Syama Gold Mine, Mali, dated 2007, found “a minimal potential for acid drainage from waste rock, as historical analysis indicates that the high carbonate content of the material will suppress any potential acid generation.” Progressive rehabilitation of waste rock landforms has begun and a management plan for waste rock dumping is the subject of ongoing development. The landform of tailings impoundments does not have a net acid generating potential. The largest volume is flotation tailings where the sulphide minerals have already been removed from the host rock. Its mineralogy includes carbonates which further buffer any acid-formation potential from sulphides that may also be present. Cyanide levels in the leached-calcine tailings are typically less that 50 ppm in the weak acid dissociable form. Groundwater away from the tailings landform is intercepted by trenches and sump pumps. Sulphur dioxide is generated from the roasting of gold concentrate so that gold can be extracted and refined. Tall-Stack “dispersion” of the sulphur dioxide emission is monitored continuously. Prevailing weather and dissipation of the sulphur dioxide is modelled daily to predict the need to pause the roasting process in order to meet the air quality criteria set out in the Environmental & Social Impact Study.
Bulk density	 Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the	Site personnel have completed numerous SG estimates on HQ drill core to assess the variability using the Archimedes method of dry weight versus weight in water. Other tests were completed by SGS using the pycnometer method.

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	nature, size and representativeness of the samples.  The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.  Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	On the basis of the data collected the following SG estimates were applied to the 2013 model: a) Hanging Wall Basalt 2.80 b) Main Lode 2.75 c) Foot Wall Zone 2.75 d) ULP – Lamprophyre 2.78 e) Sikoro Formation 2.78 f) Conglomerate 2.73 g) All Oxides 1.80
Classification	 The basis for the classification of the Mineral Resources into varying confidence categories.  Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).  Whether the result appropriately reflects the Competent Person’s view of the deposit.	The gold estimates within each block have been initially classified according to the distribution of sampling in the kriging neighborhood. This classification scheme takes into account the uncertainty in the estimates related to the proximity and distribution of the informing composites. A progressively less stringent three pass search strategy produces the initial three categories of confidence. The highest confident estimate uses a search ellipse of approximately the same dimension of the block dimension and a significant number of resource composites selected from within an octant constraint. The search radii are expanded and sample criteria relaxed for the second and third categories.
Audits or reviews	 The results of any audits or reviews of Mineral Resource estimates.	No external audits or independent reviews have been undertaken on the current Mineral Resource estimates. Resolute believes that there is adequate production, metallurgical and grade control reconciliation data from the current operation, to provide confident internal review.
Discussion of relative accuracy/ confidence	 Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.  The statement should specify whether it	The relative accuracy of the Mineral Resource estimate is reflected in the reporting of Measured, Indicated and Inferred as per the guidelines of the 2012 JORC Code. In addition, reconciliation with recent production shows the predicted resource in the Measured and Indicated categories compare within acceptable limits (<10%) to mine production results by month, quarter and annually.

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relates to global or local estimates, and, if local, state the relevant tonnages, which The geostatistical techniques applied to estimate the underground resource at Syama, are should be relevant to technical and economic deemed appropriate to the estimation of Sub Level Caving (SLC) mining method and hence evaluation. Documentation should include applicable for reserve estimation. assumptions made and the procedures used.  These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

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Section 4 Estimation and Reporting of Ore Reserves

Criteria	JORC Code explanation	Commentary
Mineral Resource estimate for conversion to Ore Reserves	 Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.  Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.	The Ore Reserves are based on a Mineral Resource estimated by Resolute using Multiple Indicator Kriging (MIK) to model grades into cells 5.0 mE by 12.5 mN by 5 mZ. These cell sizes are appropriate for the bulk underground mining methods considered for Syama. . Only Mineral Resources below the base of the final open pit down and below 150 mrl have been considered in the mining studies. The highest tonnes, grade and metal content are from immediately below the base of the open pit at about 70 mrl to about 0 mrl. Below 0 mrl, the tonnage, grade and metal content decrease rapidly, which may reflect lower drill densities at depth. Resources at Syama are reported above a 1.0 g/t cut-off. This is calculated as a marginal and geological cut off. Material below this cut-off is not considered in the resource. Ore Reserves are the material reported as a sub-set of the resource, which can be extracted from the mine and processed with an economically acceptable outcome. Reported Ore Reserves are exclusive to the Resources.
Site visits	 Comment on any site visits undertaken by the Competent Person and the outcome of those visits.  If no site visits have been undertaken indicate why this is the case.	Mr Richard Bray who is a Registered Professional Geologist with the Australian Institute of Geoscientists and Mr Andrew Goode, a member of The Australian Institute of Mining and Metallurgy are the Competent Persons. Both have conducted regular site visits to the project location.
Study status	 The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.  The Code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.	The Syama open pit is currently operational and well established. This study considered the potential underground operation below the ultimate open pit to a Pre-Feasibility Study level. Open pit mining is scheduled to be completed by mid to late 2020 and underground production is scheduled to be available by this time. Geotechnical parameters have been derived from geotechnical core logging, materials testing and application of standard industry methods. Ore loss and dilution estimates have been estimated from similar operations and Snowden’s experience. Industry best-practice software (PCSLC) was used to model the interactive material flows expected in a SLC operation Mine operating costs were calculated from first-principles using local rates, and bench mark productivities,adjusted to reflect local operatingconditions. Processingand site costs,and

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		recoveries are based on the current operations at Syama.
Cut-off parameters	 The basis of the cut-off grade(s) or quality parameters applied.	The mining outline was defined within a contiguous economic envelope at a cut-off grade of 1.8 g/t Au based on a US$1,300/oz gold price, 80% recovery (after allowance for royalties), expected mining costs and current overhead and process costs. Within this envelope a break- even shut off grade was applied based on overhead and processing costs The mine design was completed using a fully costed cut-off grade estimate. Some opportune ore has been identified and included using an incremental cut-off grade. This is related to the overdraw material estimated on current overdraw performance. Dilution and overdraw was modelled using PCSLC software with input parameters based on current and historic operations of a similar nature. The results of the modelling provided a basis for estimating tonnes and grade associated with the overdraw scenario in the lower levels.
Mining factors or assumptions	 The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimization or by preliminary or detailed design).  The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.  The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc), grade control and pre- production drilling.  The major assumptions made and Mineral Resource model used for pit and stope optimization (if appropriate).  The mining dilution factors used.  The mining recovery factors used.  Any minimum mining widths used.  The manner in which Inferred Mineral Resources are utilized in mining studies and the sensitivity of the outcome to their inclusion.  The infrastructure requirements of the	Snowden’s geotechnical study confirmed that the deposit is amenable to caving, making SLC the preferred mining method. SLC is a highly mechanized, bulk mining method used in used in operations world-wide. A similar mining method is used successfully at Resolute’s Mt Wright mine in Queensland. The ore is blasted and as it is extracted the surrounding rock is allowed to cave naturally; backfilling is not required. SLC offers the advantages of high productivities and lower mining costs compared with more selective mining methods such as open stoping. The ore body is steeply dipping with a competent footwall conglomerate and ore body amenable to caving (Laubscher RMR of 45 to 60). The chosen mining method was selected by excluding other potential mining methods based on technical and/or economical risk. Caving was identified as the only potential mining method allowing for maximum extraction of the defined Resource. The competent footwall has an UCS of 133 MPa, while the ore body is typically 75 to 100 MPa. The hanging wall is in the order of 100 MPa. The competency contrast is favorable to the mining method. The ore body outline is designed using a cut-off grade of 1.8g/t Au based on current overhead and treatment costs and recovery from the open pit, combined with PFS level estimates for the underground component of the mine. Assumptions for mining and dilution factors: Development ore – 100% tonnes at block model grade. No over break is included for development ore as this would require a corresponding reduction in production ore to avoid double-accounting. This does not have a material impact on the overall result. Production rings attributed by level and drawpoint – determined by outcome of PCSLC cave modelling. Rings were mined to an economic shut offgrade of 1.8g/t Au,not exceedingthe

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	selected mining methods.	maximum draw percentages listed below: first level below pit – 60% tonnes second level below pit – 80% tonnes third and consecutive levels – 100% tonnes bottom two overdraw levels – 125% tonnes Overdraw was modeled in PCSLC and was derived from material higher in the column and from external dilution. The mine design was based on the following design criteria: Draw point spacing of 14m and level spacing of 25m In zones where the deposit narrows, a minimum width equivalent to two parallel ore drives (28 m) was designed in a longitudinal (along strike) layout. A transverse layout was designed in the wider northern section of the deposit. Hydraulic radius of 12 (ore) to 17 (hanging wall) was calculated to initiate caving. The mine will be accessed via a haulage decline that is located to the east of the ore body in the competent footwall conglomerate, approximately central to the mass of ore along strike. Each level requires infrastructure for ventilation, second means of egress, and drainage. A small component (2%) of Inferred Resources is included in the last years of the life of mine plan or Ore Reserves. This does not materially impact the outcome of the study.
Metallurgical factors or assumptions	 The metallurgical process proposed and the appropriateness of that process to the style of mineralization.  Whether the metallurgical process is well- tested technology or novel in nature.  The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.  Any assumptions or allowances made for deleterious elements.  The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the _ore body as a whole. _	Experience from the current open pit shows that the ore from the Syama deposit can be highly refractory due to locking of gold within the sulphide and/or variable amounts of reactive natural carbon, which robs cyanide leach solutions of dissolved gold. Processing of the ore will be via the following stages:  crushing and grinding.  flotation to produce a sulphide rich concentrate.  concentrate thickening.  roasting, followed by calcine quench and wash.  CIL.  tailings disposal dam..

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	 For minerals that are defined by a specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?	The crushing, grinding and flotation circuit has a designed capacity of 2.4 Mtpa and the roaster will process 196,000 t of concentrate per annum. The CIL circuit has a designed capacity of 2.0 Mtpa.
Environmental	 The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterization and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.	The Syama Gold Mine operates in accordance with the Environmental & Social Impact Study – “Société des Mines de Syama, Syama Gold Mine, Mali, dated 2007. Waste rock characterisation has been the subject of prior studies for this Environmental & Social Impact Study Work is ongoing to optimise the mining operation and environmental management by way of:  drilling,  mineralogical assay of drill core  routine testing of rock for acid properties  sequence, rate and design optimization of the open‐pit mine walls ramps and waste rock dump landform. The outcomes of this work are a part of a continual improvement programme and contribute to the waste rock dump management plan, annual reporting and consultation- committee meetings with government and community representatives. Tailings storage for the life of mine is forecast to be impounded over the existing footprint area approved in the Environmental & Social Impact Study. Progressive raising of the tailings impoundments will occur to contain life-of-mine storage capacity and routine progress of the monitoring is reported to government and to the stakeholder, meetings in concert with routine inspections by the Government. The Syama open cut pit mine is in a mature phase of its operating life. Its environmental management is permitted by an Environmental Authority and supported by an Environmental Management Plan. It is expected that relevant approvals will be obtained for the underground mine.
Infrastructure	 The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided, or accessed.	The site is located near two major towns in Mali, Kadiola and Sikasso. Kadiola, 55km southeast, is the regional capital while Sikasso, approximately 85 km to the northeast, is the second largest city in Mali and is located close to the border with Burkina Faso. Access is via formed gravel road off the sealed Sikasso to Côte d’Ivoire highway through Kadiola and then from Fourou to site. Most consumables and supplies use this route as it can be approached either from Côte d’Ivoire through the border post at Zegoua or alternatively from Burkina Faso and Togo through Sikasso. The road north through Bananso to Farakala, on the main highwayfrom Bamako to Sikasso, provides analternate and shorter route toBamako. This

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		road is generally impassable during the wet season when the low level “bridge” at Bananso is covered with water. Supporting infrastructure for the current open pit includes the upgrading of the 70km section of road from Kadiola to the site, and refurbishment of administration building, plant site buildings and accommodation for housing expatriate and senior national staff. This will also be used by the underground operations, with additional allowance made in the study for underground specific infrastructure on surface, such as primary ventilation fan installations, additional work shops and offices and change rooms for underground workers. The open pit has a peak continuous power demand of approximately 17.7MW with an installed power capacity of 24MW. Power is currently supplied from a diesel fired power station. Supply of power from the national grid is likely in the near future and was assumed for the underground.
Costs	 The derivation of, or assumptions made, regarding projected capital costs in the study.  The methodology used to estimate operating costs.   Allowances made for the content of deleterious elements.   The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products.   The source of exchange rates used in the study.   Derivation of transportation charges.   The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.   The allowances made for royalties payable, both Government and private.	Mining costs were estimated to +/-25% accuracy, typical of a PFS cost model. The study assumes key capital items such as ventilation fans, power supply and offices and workshops will be purchased by Resolute and mobile equipment and mining plant will be purchased by the mining contractor and amortized over the operational lifespan of the items. Mine operating costs are calculated from first-principles using fixed and variable components and assume contractor mining. Allowances were made for regional efficiencies, supervision and training. Current processing and administration costs were applied. The average mining cost (including decline development, raises and contractor margin) is $45/t. Owner’s infrastructure capital costs are estimated to be $22M. Assumed gold prices have been derived by reference to recent USD spot gold prices. All revenue and cost estimates have been made in USD, thus no exchange rates were required. Treatment and refining charges have been derived from current open cut pit costs. Royalties equal to 7% of sales proceeds are included in the cost model and is based on current royalties paid. No other royalties or Joint Venture agreements are expected.

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Revenue factors	 The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns, etc.  he derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co-products.	It has been assumed that gold will be sold at the prevailing spot gold price. All revenue and cost estimates have been made in USD, so exchange rate assumptions have not been necessary. Assumed gold price of US$1,300 per ounce has been derived by reference to recent USD spot gold prices
Market assessment	 The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.  A customer and competitor analysis along with the identification of likely market windows for the product.  Price and volume forecasts and the basis for these forecasts.  For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.	There is a transparent quoted market for the sale of gold
Economic	 The inputs to the economic analysis to produce the net present value (NPV) in the study, the source and confidence of these economic inputs including estimated inflation, discount rate, etc.  NPV ranges and sensitivity to variations in the significant assumptions and inputs.	A variety of gold price points and discount rates were used to assess the robustness of the project, likely payback periods, the breakeven point and the projected internal rate of return. The project generates pre-tax revenue of $1,147 M and with a positive pre-tax IRR of 28%. In the estimate, a gold price of US$1,300 per ounce was assumed.
Social	 The status of agreements with key stakeholders and matters leading to social license to operate.	Resolute assumed management of Société des Mines de Syama in May 2004. The current open pit continues to operate under the 1993 Permit Syama (No.PE-93/003). It is anticipated that transferrable skills from the current operation will be utilized for the underground operation and that existing employees will be up skilled where possible. Initially selected posts requiring specific skills or experience will most likely be filled by expatriates. In addition to performing their job function, expatriate personnel will be expected to transfer knowledge and expertise in order to develop the capabilities of their Malian staff. In the longer term it is anticipated that Malian nationals will fill most operating and management positions within the company.

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		It is the intention to encourage economic development within the local community. Local contracts therefore, are let wherever possible and the company works actively with existing and emerging companies to achieve this aim.
Other	 To the extent relevant, the impact of the following on the project and/or on the estimation and classification of the Ore Reserves:  Any identified material naturally occurring risks.  The status of material legal agreements and marketing arrangements.  The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary Government approvals will be received within the timeframes anticipated in the Pre-Feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.	High seasonal rain fall events present a risk for the underground operations. Further drilling and logging of drill holes are planned to confirm PFS assumptions for the underground. Risk mitigants were proposed as part of the ongoing feasibility study. All current government agreements and approvals are in good standing and no anticipated changes are expected.
Classification	 The basis for the classification of the Ore Reserves into varying confidence categories.  Whether the result appropriately reflects the Competent Person’s view of the deposit.  The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).	All Measured and Indicated Resources were converted to Probable Reserves. About 50% of the Ore Reserve metal is derived from a Measured Resource and classified as a Probable Ore Reserve because important modifying factors are only at a PFS (+/-25%) level of confidence. A small component (2%) of Inferred Resources is included in the Ore Reserves, but does not materially affect the outcome.
Audits or reviews	 The results of any audits or reviews of Ore Reserve estimates.	No external audits of resources / reserves were undertaken.
Discussion of _relative accuracy/ _	 Where appropriate a statement of the relative accuracy and confidence level inthe Ore	Treatment costs and recoveries are based on actual performance in the open pit operations and

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	confidence	Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.  The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.  Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.  It is recognized that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	provide a high level of confidence. Resolute has extensive experience with similar underground operations at their Mt Wright operation in Australia. This experience was combined with industry average assumptions, where required, to provide a level of accuracy and confidence that falls well within in the +/- 25% required for a Pre-Feasibility Study. All the parameters assumed and adopted along with financial modelling and analysis have been subject to internal peer review.

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