Zara Project Resource & Reserves

AMC Consultants Pty Ltd ("AMC") has completed a Mineral Resource and Ore Reserve estimate for the Koka Gold Deposit in Eritrea in accordance with the JORC Code.  The Indicated Resource and Ore Reserve categories referred to in the JORC Code are directly comparable to the Indicated Resource and Mineral Reserve categories defined in the CIM Definition Standards respectively.

The Mineral Resource estimate at 1 June 2010 using a 1.2 g/t gold cut-off is:  

Figure 1: Outline of the Koka Gold Deposit

Technical Information

This information is contained in the Technical Report on the Koka Gold Deposit, Eritrea dated 27 July 2010 and released on 8 October 2010 (the "Technical Report"). The Technical Report was prepared by Dean Carville, Bsc (Geology) (Hons), MAusIMM, MGSA, Principal Geologist at AMC Consultants Pty Ltd; David Lee, BEng (Mining) (Hons), Graduate Diploma of Business, MAusImm, Principal Mining Engineer at AMC Consultants Pty Ltd; and David Gordon, BAppSc, MAusIMM, Principal Process Engineer at Lycopodium Minerals Pty ltd (the "Authors"). Each of the Authors is an independent "Qualified Person" in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

Competent Person/Qualified Person Statements

The information contained on this website that relates to Exploration Results is based on information compiled by Dr Doug Jones, a full-time employee and Director of Chalice Gold Mines Limited, who is a Member of the Australasian Institute of Mining and Metallurgy and is a Chartered Professional Geologist. Dr Jones has sufficient experience in the field of activity being reported to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves (the JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects‘. Dr Jones consents to the release of information in the form and context in which it appears here.

The Mineral Resource estimate was prepared by Mr. John Tyrrell who is a Member of the Australasian Institute of Mining and Metallurgy. Mr. Tyrrell is a full time employee of AMC and has sufficient experience in gold resource estimation to act as Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. Mr. Tyrrell consents to the inclusion of this information in the form and context in which it appears.

The information in this statement of Ore Reserves is based on information compiled by Mr David Lee who is a Member of the Australasian Institute of Mining and Metallurgy and a full time employee of AMC. Mr Lee has sufficient relevant experience to be a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code) and is a "Qualified Person" under National Instrument 43-101 - 'Standards of Disclosure for Mineral Projects'. Mr Lee consents to the inclusion of this information in the form and context in which it appears.