Don Mario Reserves/Resources

Cautionary Notes to Investors - Reserve and Resource Estimates

In accordance with applicable Canadian securities regulatory requirements, all mineral reserve and mineral resource estimates of the Company disclosed in this news release have been prepared as at September 30, 2014 in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"), classified in accordance with Canadian Institute of Mining Metallurgy and Petroleum's "CIM Standards on Mineral Resources and Reserves Definitions and Guidelines" (the "CIM Guidelines").

Pursuant to the CIM Guidelines, mineral resources have a higher degree of uncertainty than mineral Reserves as to their existence as well as their economic and legal feasibility. Inferred mineral resources, when compared with measured or indicated mineral resources, have the least certainty as to their existence, and it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Pursuant to NI 43-101, inferred mineral resources may not form the basis of any economic analysis, including any feasibility study. Accordingly, readers are cautioned not to assume that all or any part of a mineral resource exists, will ever be converted into a mineral Reserve, or is or will ever be economically or legally mineable or recovered.

In fiscal 2015 the Company engaged Mercator Geological Services Limited (“Mercator”) and DCGS Exploration and Mining Consulting (“DCGS”), each an independent mining consulting firm, to complete mineral reserves and resources estimates, which were published in the “Don Mario Mine Operation 2015 Technical Report” by Mr. Michael Cullen of Mercator and Mr. Gino Zandonai of DCGS, each of whom is a qualified person independent of the Company for the purposes of NI 43-101 and filed on Sedar on November 16, 2015, (the “Don Mario 43-101 Report”). The updated mineral resource and reserve estimates for Don Mario as at September 30, 2017 were prepared by Mr. Zandonai, an independent Qualified Person under NI 43-101. In respect of Cerro Felix, the tonnage reported as indicated resources as at September 30, 2016 was upgraded to probable reserves as at September 30, 2017 and production depletion during fiscal 2017 was accounted for.

The following tables summarize the in-situ mineral resources estimates for UMZ, LMZ and Cerro Felix and the mineral reserves estimates for UMZ, LMZ and Cerro Felix:

Notes applicable to LMZ and Cerro Felix mineral resource:

1. CIM definitions were followed for Mineral Reserves and were prepared by G. Zandonai, a qualified person for the purposes of NI43-101, who is an employee of DGCS SA and is independent of the Company.
2. Mineral Reserves are estimated using a gold equivalent cut-off grade of 0.4 Au g/t. Gold equivalent cut-offs were calculated using recent operating results for recoveries and on-site operating costs.
3. Mineral Reserves are estimated using average long-term prices of US$1,250 per ounce gold, US$2.50 per lb copper, and US$17.00per ounce silver.
4. Numbers may not add due to rounding.
5. The mineral reserves at the LMZ have been based on processing by the CIL and flotation methods.
6. The mineral reserves at Cerro Felix have been based on processing by the CIL only.

Notes:

1. CIM definitions were followed for Mineral Resources and were prepared by G. Zandonai, a qualified person for the purposes of NI43-101, who is an employee of DGCS SA and is independent of the Company.
2. Mineral resources contained in stockpiles are estimated at a Cu equivalent cut-off grade of 0.85% CuEq.
3. Mineral resources are estimated using a long-term gold price of US$1,300 per ounce, copper price of US$3.00 per pound and a silver price of US$18 per ounce.
4. Mineral resources contained in stockpiles are exclusive of In-situ Mineral Resources. Mineral Resources that are not mineral reserves do not have demonstrated economic viability. The UMZ Oxide Stockpile resources are currently not economically viable to process through the gravity flotation plant.
5. Numbers may not add due to rounding.

Notes:

1. CIM definitions were followed for Mineral Resources and were prepared by G. Zandonai, a qualified person for the purposes of NI43-101, who is an employee of DGCS SA and is independent of the Company.
2. Mineral Reserves are estimated using a gold equivalent cut-off grade of 0.4 Au g/t. Gold equivalent cut-offs were calculated using recent operating results for recoveries and on-site operating costs.
3. Mineral Reserves are estimated using average long-term prices of US$1,250 per ounce gold, US$2.50 per lb copper, and US$17.00 per ounce silver.
4. Numbers may not add due to rounding.
5. * UMZ stock for processing Flotation
6. ** LMZ Stock for processing by CIL