El Valle-Boinás/Carlés History

The El Valle-Boinás/Carlés Project is located in the Rio Narcea Gold Belt in Northern Spain, near the port city of Avilés. This area was mined by the Romans about 2,000 years ago. Modern gold exploration commenced at the EVBC Mines area during the 1970s and over the next 20 years companies like Anglo American and Goldfields evaluated the gold potential with drilling and underground exploration drifts. Rio Narcea Gold Mines (“RNGM”) mined gold by open- pit methods from 1997 until 2004, at which time underground mining began. The mine closed in 2006 after producing approximately 950,000 ounces of gold and over 20,000 tonnes of copper. In 2007, RNGM sold the EVBC Mines to Kinbauri Gold. The Company acquired the EVBC Mines and infrastructure in 2009, excluding certain environmental liabilities, as a result of its acquisition of Kinbauri Gold.