In March 1993 and in October 1995 Bre-X announced

significant amounts of gold had been

discovered, sending its stock price soaring.

However, in 1997, Bre-X collapsed and its shares

became worthless in one of the biggest stock

scandals in Canadian history, and the biggest mining

scandal of all time.

The NI43-101 was created after the Bre-X scandal to

protect investors from unsubstantiated mineral project

disclosures1

The NI is a strict guideline for how public

companies can disclose scientific and

technical information about mineral projects

on bourses supervised by the Canadian

Securities Administrators (CSA).

Most Stock Exchange require NI43-101

report to list on.

2

The instrument requires that a “Qualified Person" (QP) be attributed to

the information

The NI43-101 is broadly comparable to the JORC Code (Australia) and

SAMREC ( South Africa)

It enhance the accuracy and integrity of disclosure in the mining sector

Provides a level of investor protection by ensuring the right information

3

Consist of:

National Instrument 43-101 -

Mineral project disclosure and filing rules that must be followed

Companion Policy 43-101CP -

Our views on how certain provisions of NI 43-101 are to be

interpreted and applied

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1. Involvement of qualified person (QP)

2. Standard terminology and definitions

3. Prohibits misleading disclosure

4. Facilitate disclosure with context and caution

5. Technical report supporting disclosure

4

1. Summary 10. Drilling 19. Market Study and Contracts

2. Introduction11. Sample Preparation, Analyses

and Security

20. Environmental Study, Permitting,

and Social or Community Impact

3. Reliance on other Experts 12. Data Verification 21. Capital and Operating Cost

4. Property Description and

Location

13. Mineral Processing and

Metallurgical Testing22. Economic Analysis

5. Accessibility, Climate, Local

Resources, Infrastructure, and

Physiography

14. Mineral Resource Estimate 23. Adjacent Property

6. History 15. Mineral Reserve Estimate24. Other Relevant Data and

Information

7. Geological Setting and

Mineralisation16. Mining Method 25. Interpretation and Conclusion

8. Deposit Type 17. Recovery Method 26. Recommendations

9. Exploration 18. Project Infrastructure 27. References

NI 43-101 report must include following 27 subjects:

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