The results from the PFS demonstrate the economic viability of the Zgounder Mine based on the mineral reserves derived from resources that were outlined by GoldMinds Geoservices Inc.

The PFS highlighted that a significant amount of inferred resources are present which have the potential to be converted to reserves with additional drilling, and there remains an excellent exploration potential to further expand the size of the existing mineral inventory.

The PFS also provided a more conservative estimate of profitability than the Preliminary Economic Assessment (PEA) due to the exclusion of the inferred resources; conversely, thereby the PFS provides estimates that have a lower geological risk, which is key element for financing purposes.

Highlights of the Zgounder Silver Mine PFS Study include:

An anticipated mine life of 6 years with the current reserves with Internal rate of return of 128 per cent;

First year silver production of 582,600 ounces, followed by two years at 885,400 ounces, and the final three years at 914,000 ounces per year;

Mill feed grade estimated at 317 g/t Ag;

Total operating cost of USD109.50 per tonne (averaged over the expected mine’s life);

Additional capex requirements total USD3.8 million, which include the proposed concentrator expansion;

Net present value of USD27.9 million (discounted at 6.5 per cent) at silver price of USD20.50 per ounce;

The Zgounder PFS was prepared as a strictly underground mine based solely on the measured and indicated mineral resources reported on February 19, 2014.