The Feasibility Study ("FS") was prepared by Lycopodium Minerals Canada Ltd. ("Lycopodium") in accordance with the definitions in Canadian National Instrument 43-101 ("NI 43-101"). Lycopodium is an international engineering and project management consultancy headquartered in Australia, which has completed feasibility studies and provided Engineering, Procurement and Construction Management ("EPCM") services to a large number of successful gold projects globally.

Project Mineral Reserves

The reserves outlined in the Feasibility Study are shown in Table 3 below and use an average cut-off of 2.00 grams gold per tonne and a minimum mining width of 2.5 metres. Proven and Probable reserves include dilution by Measured and Indicated resources below the mining cutoff grade inside of mineable areas with an average grade of 1.60 grams gold per tonne.

The Feasibility Study is based on San Ramon being an underground mining operation using conventional shrinkage stoping mining methods with delayed backfill using dry filtercake process tailings and development waste. Colombian mining contractors will be utilised and mining costs are based on contractor proposals.

The ore will be processed incorporating single-stage crushing, SAG milling and floatation with concentrate re-grinding followed by conventional carbon-in-leach ("CIL") processing the combined float tails and reground concentrate to produce gold doré on site. The leached tailings will be detoxified and filtered for use as mine backfill and dry stacking on surface. Expected metallurgical gold recovery is 96% with a total estimated 388,000 ounces of recoverable gold to be produced.

The total ore mined includes 2.42 million tonnes of Proven and Probable reserves and an additional 334,000 tonnes of internal dilution of material that is included at zero grade. Total volume/tonnage dilution of 23% is included in the mineable material. The plant is designed to operate at a processing rate of 1,000 tonnes per day and a total of 2.75 million tonnes of ore will be mined over eight years at an average run of mine ("ROM") diluted mill feed grade of 4.57 grams gold per tonne.

The estimated capital and operating costs for San Ramon are summarised below. Indirect costs include EPCM and owner’s costs. Sustaining capital for ongoing underground development has been budgeted at $33 million throughout the eight year mine life.

Doré produced will contain silver which has not been included in reserves or the Feasibility Study economic analysis. Based on metallurgical tests and studies, silver grades are approximately 1.85 times gold grades with recoveries of approximately 69%.

High-grade, relatively narrow, veins are known to exist across a number of areas on the Santa Rosa Gold Project outside of the current reserves. Over 1,700 historic adits have been mapped. These veins could potentially be mined as separate small-scale operations to provide high-grade feedstock to supplement mill feed grade and production.

The San Ramon Gold Deposit is open at depth (with the bulk of the current reserves within 200 metres of the surface) and on strike, plunging to the east on to concessions recently acquired from AngloGold Ashanti (news release dated June 3, 2014). Delineation drilling at depth and to the east is planned for 2015.

A number of separate exploration targets have been identified on the 350 km² Santa Rosa Gold Project and are ready for drill testing. These targets have similar characteristics to the San Ramon Gold Deposit with anomalous gold geochemistry, potassic alteration and extensive historic underground and surface workings. In providing for potential exploration success in delineating additional reserves, current major equipment and layout has been designed with built-in capacity to accommodate an expansion to double the throughput rates without disrupting production. Such an expansion would include an additional ball mill, tower mill, filter press and three leach tanks at an estimated total cost of under $15 million.

Comparison to September 2013 Preliminary Economic Assessment

The Feasibility Study results are compared in Table 7, below, with the figures reported in the September 2013 Preliminary Economic Assessment ("PEA"). While there has been a modest $5 million reduction in the Net Present Value (5%), the Internal Rate of Return has escalated from 38% to 52%. This has predominately been driven by a 19% reduction in initial capital costs and a 35% reduction in sustaining capital. As expected, life of mine recoverable ounces has declined reflecting the fact that inferred resources, while included in the PEA, are excluded from the Feasibility Study mine plan. As average annual production is broadly unchanged the exclusion of the inferred ounces has expectedly reduced mine life from ten to eight years. Metallurgical recoveries have improved from 93% to 96%. Cash costs and all-in sustaining costs have decreased by $20/ounce and $60/ounce respectively.