El Compas Project Monthly Photo Update

January 2018

Crushing

Fine Ore Bins

LaboratoryAdministration

Ball Mill Housing

Flotation Housing

Thickener

WarehouseConcentrate Storage & Filtering

January Project Highlights

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No lost time accidents

Mine portal infrastructure to main access ramp complete

Old Mine dewatering (rainwater) underway

Plant refurbishment 90% complete

Mine access road 75% complete

Mine access ramp advanced 63m to 233m total

Explosives permit still delayed

Initial production rescheduled for April

El Compas Timeline

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EL Compas

29 5 12 19 26 3 10 17 24 31 7 14 21 28 4 11 18 25 4 11 18 25 1 8 15 22 29 6 13 20 27 3

4 11 18 25 2 9 16 23 30 6 13 20 27 3 10 17 24 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9

22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52

Mine Explosives Magazine Permitting

Mine Access Road

Mine Powerline, Offices, Fencing

Mine development using Pyroblast

Mine development using Explosives

Mine Ore Supply

Plant powerline

Plant procurement

Plant Construction

Plant Commissioning/Operation Sales Commence

Tailings Design

Tailings Construction

March April MayNovember December January February

ACTIVITY

% Complete (beyond plan)Actual (beyond plan)

Mine Safety

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Safety signage installation in the mine

underway.

Safety procedures and training.

Environmental Program

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Environmental programs continue with replanting activities, rescue of species and

water monitoring.

Ramp Advance

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Main ramp advance including loading bays was 63 meters, totaling 233 meters at the

end of the month

Portal Services and the Haulage Road

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Construction of the ore haulage road

is 75% completeMain mine portal is complete for

services

Mine Service Entry

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Classic vuggy banded epithermal

quartz vein texture typical of bonanza

orebodies like El Compas

The old mine is being dewatered from a barge

presently and a dewatering borehole will be

completed to dewater the mine further

Crushing Circuit

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Conveyor #6 complete - awaiting arrival of the mobile crushing units.

Ball Mill

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Ring gear grease unit and oil warning

system are both completed, no-load tests

finalized. Guards and service entry added.

Cyclones and service platform installed.

Regrind Ball Mill & Flotation Air Supply

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The regrind mill was mounted on bearings. The blower and compressor were mounted

and electrically connected.

Flotation Cells & MCC

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Mill MCC complete and fully tested. Flotation

MCC to the right continuing to completion.All three main rougher flotation cells are

complete, calibration in process.

Flotation Cleaner Cells & Underdeck

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Sump concrete divisions installed. Piping

installation continues.Cleaner flotation cells complete, motor and

cell controls installed.

Concentrate Filtering and Storage Area

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Concentrate drum filter is ready to be

mounted.Filter and concentrate thickener MCC

connected to mains power.

Tailings & Concentrate Thickeners

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Tailings thickener ready for water testing.Motor Transmission installation complete on

concentrate thickener tanks, ready for water

testing.

Key Deliverables for February

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• No lost time injury accidents

• Obtain explosives license and commence use

• Complete wet plant trials

• Complete tailings construction

• Complete mine access road at 95%

• Complete all plant construction except for mobile

crushing circuit.

• Mobile Crushing unit is expected to be on site in March