The Grata Permit is 100% owned by Sama Nickel Côte d’Ivoire SARL, a fully owned subsidiary of the Company. The Grata Permit is located adjacent to the north-eastern boundary of the Samapleu exploration permit (PR 123).

Sama believes that ultramafic sequences of the recently outlined large Yacouba Layered Complex which hosts the Samapleu Nickel-Copper-Palladium deposits, are extending within the Grata Permit and as such represent a prime target for nickel-copper-palladium mineralization. Surface exploration is ongoing and will be followed shortly with exploration holes.

The first of 4 boreholes (YE40-438348, 614m deep) was drilled at the Yepleu sector aimed at testing the geophysical anomaly interpreted from 2013 HTEM (helicopter time domain electromagnetic survey). The borehole is the first of a program of 3 to 4 holes which will test the large anomaly.

The borehole intercepted a sub-horizontal sequence of 366m thick of alternating diorite/anorthosite and mafic units, part of the Yacouba layered complex, intruding the Archean gneissic host rock and named the Upper Sequence.

A mineralized horizon of 6mof nickel-copper mineralization, ranging from disseminated to semi-massive sulfides material located between 360.65m and 367.30m marking the bottom contact of the Upper Sequence. Below 366m, another layered sequence is present showing a package of diorite/anorthosite together with pyroxenite also intruding the gneissic host rock, named as the Lower Sequence. The borehole was terminated at 614m for technical reasons, without reaching the targeted depth for the HTEM anomaly.

The disseminated and semi-massive sulphide mineralization of boreholes YE40-436348 is characterised by aggregates of nickel, copper and iron sulphides, named pentlandite, chalcopyrite and pyrrhotite, respectively.

Pentlandite occurs together with pyrrhotite, while the chalcopyrite, being the third mineral of global abundance appears either mixed with the pentlandite or as late sulfide centimetric veins crosscutting the pentlandite-pyrrhotite material. Contacts between the semi-massive sulphide material and the surrounding quartzo-diorite with disseminated sulphides are irregular and sharp indicating that the semi-massive sulphide material has intruded the pyroxenite host originating from a source that is yet to be discovered.

Preliminary results using a hand held Niton portable XRF analyser ("Niton XRF") returned an interval of 6.65m grading 0.30% nickel and 0.26% copper, including 0.55m at 0.90% nickel and 0.80% copper (Table 1). This mineralisation is identical in nature to the mineralisation observed near surface in all the other boreholes drilled in 2014 at the Yepleu prospect.

The Niton XRF provides assay readings for a wide range of metallic elements including nickel and copper. Readings are made through a few square millimeter window at the sample surface. Several readings are used to generate an averaged value. Reported values obtained using the Niton XRF analyzer are being used only for exploration planning.

A subset of the 2013 HTEM survey was re-interpreted by the Danish geophysical group, Aarhus Geophysics ("Aarhus"), using the Electromagnetic inversion methodology in order to validate Sama’s interpretation. The Aarhus inversion model confirmed the presence of a conductor and also that the area in the vicinity of the borehole YE40-438348 is the most conductive in the Yepleu area. Details maps and interpretations are presented on Sama Corporate presentation.

Sama is planning to perform a downhole electromagnetic survey (DHTEM) in YE40-436348 in order to acquire more precision on the target at depth prior to the drilling of the second borehole. It is expected the DTHEM survey will take place in the first quarter of 2016.

Renewal of PR 123, PR 300 and PR 301

The Samapleu Exploration permit (PR123) has been extended for an additional 18 months by the mine department.

Renewal processes for Exploration permits PR 300 and PR 301 are ongoing. As stipulated in the Ivorian mining code, the surface areas for both exploration permits will be reduced by 25%.