NI 43-101 Technical Report on The Tabuaço Tungsten Project ...

NI 43-101 Technical Report on The Tabuaço Tungsten Project, Portugal

Report Prepared for:

Colt Resources Inc. 2000 McGill College Avenue, Suite 2010,

Montreal, Quebec, H3A 3H3 Canada www.coltresources.com

NI 43-101 Technical Report on The

Tabuaço Tungsten Project, Portugal

Report Prepared for:

Colt Resources Inc. 2000 McGill College Avenue, Suite 2010,

Montreal, Quebec, H3A 3H3 Canada 514-394-0009

SRK ES Project Number ES7366

SRK Exploration Services Ltd. 12 St Andrew’s Crescent,

Cardiff, UK

CF10 3BN

Tel: +44 29 20 233 233 Fax: +44 29 20 233 211

[email protected] www.srkexploration.com

21ST DECEMBER 2011

Report Authors Reviewed by:

G O’Donovan L Roberts

E Olin

J Volk J Gilbertson

SRK Exploration Services Ltd Summary Page ii

Tabuaco_43-101 20111221_FINAL 21 December 2011

1 Summary

The Tabuaço Tungsten Project is located within the São Pedro das Águias block of the Armamar Meda concession which is situated in the North Central region of Portugal, approximately 300 kilometres NNE of Lisbon, 100 km to the ESE of Porto, and comprises two separate blocks, namely the São Pedro das Águias and Meda blocks.

The Tabuaço project is located in a port wine growing area of varying topography, overlooking the banks of the Távora River.

Colt Resources Inc. has 100% mineral rights on the concession covering the Tabuaço project.

An exploration contract was signed on the 10th December of 2007 and has a five year duration, expiring on the 9th December of 2012. Colt is preparing to apply for a mining licence for the project prior to the expiration of the contract.

The geology of Portugal is subdivided into two large domains: the Hesperian Massif and the Epi-Hercynian (Variscan) cover rocks. The Hesperian Massif is itself subdivided into four main tectonic domains which date from the Pre-Cambrian through the Paleozoic:

• Galacia-Tras-os-Montes Zone (GTMZ);

• Ossa Moreno Zone (OMZ);

• Central Iberian Zone (CIZ) and

• South Portuguese Zone (SPZ).

The Armamar Meda Licence area is situated at the border zone of two major geologic units in the CIZ of northern Portugal, namely the Hercynian age Beiras granite batholiths and the Douro Valley Schist‐Greywacke. The area is noted for tungsten and tin occurrences and has seen a number of past artisanal workings.

In the Armamar-Meda Concession, there are a number of significant mineralized zones mapped as skarn outcrop. For the purpose of this report and resource estimation, only the São Pedro das Águias mineralized zones lie within the immediate Tabuaço project area.

At Tabuaço the geological model used for exploration is best described as a contact metamorphosed tungsten skarn model. A granite/skarn interface is present with mineralization proximal to the granite boundary. The tungsten mineral is present as scheelite and occurs as fine to coarse disseminations within the skarn horizons. The Tabuaço model is further complicated by small scale local faulting.

There are two main skarn horizons; the “upper or main skarn” and the “lower skarn” separated by schists. There are also numerous lenses or pods of tungsten bearing skarn material above and below the two main horizons but the present drill density is insufficient to model them at this stage

SRK Exploration Services Ltd Summary Page iii


The Tabuaço Tungsten Project is currently an exploration project with this report representing the first reportable Mineral Resource statement.

There are no active mining operations on or near the project other than granite quarries.

An initial compliant Mineral Resource Estimate has been produced by SRK, as presented below;

Resource Classification Tonnage (kt)

Grade (WO3%)

Contained Metal

(t WO3)

Contained Metal

(lb WO3)

Contained Metal

(MTU WO3)

Indicated Mineral Resources 760 0.58 4,600 9,700,000 440,000 Inferred Mineral Resources 1,330 0.57 8,000 16,700,000 760,000

SRK Mineral Resource Statement for the Tabuaço Project, Portugal, 21 December 2011

1. Mineral Resources are not Mineral Reserves and there is no assurance that any, or all of the Mineral Resources will be converted to Mineral Reserves

2. The tonnage, grade and contained metal values have been rounded to reflect the accuracy of the Mineral Resource Estimate. Numbers may not add due to rounding.

3. The Mineral Resources are stated above a cut-off grade of 0.3%WO3, based on an anticipated underground mining cost of USD30/t, a processing cost of USD22/t, a metallurgical recovery of 80%, and WO3 price of USD300/mtu.

Conclusions

The Tabuaço project comprises two distinct skarn horizons in close proximity to a granitoid intrusion. The Mineral Resource Estimate is the first for the project and SRK ES would anticipate that further exploration will both extend and upgrade this.

There are numerous surface exposures of similar rocks in the region and several of these have already been sampled and shown to carry anomalous tungsten grades.

SRK ES considers the delineation of a Mineral Resource at Tabuaço to be an exciting development not only for Colt Resources but for the region and possibly Portugal. Tungsten and tin occurrences are quite widespread in the northern part of Portugal and until now have been generally considered to be an interesting curiosity.

SRK ES recommends that Colt Resources conduct further drilling at the Tabuaço project, both within the current Mineral Resource area to upgrade the inferred part of the Resource and downdip to the south to add to the overall resource.

SRK ES also recommends that work commences on a Scoping Study or Preliminary Economic Assessment (PEA) to establish the best methodologies for exploiting the Tabuaço deposit.

SRK Exploration Services Ltd Table of Contents Page iv


Table of Contents

1 Summary ii

2 Introduction 1 2.1 Terms of Reference and Purpose of the Report 1 2.2 Qualifications of Consultants (SRK) 1 2.3 QP site visits 3 2.4 Effective Date 4 2.5 Units of Measure 4

3 Reliance on Other Experts 4

4 Property Description and Location 6 4.1 Mineral Titles 7 4.2 Nature and Extent of Issuer’s Interest 8 4.3 Royalties, Agreements and Encumbrances 8 4.4 Environmental Liabilities and Permitting 8 4.5 Required Permits and Status 9 4.6 Other Significant Factors and Risks 9

5 Accessibility, Climate, Local Resources, Infrastructure and Physiography 11 5.1 Topography, Elevation and Vegetation 11 5.2 Accessibility and Transportation to the Property 12 5.3 Climate and Length of Operating Season 12 5.4 Sufficiency of Surface Rights 13

6 History 14 6.1 Prior Ownership and Ownership Changes 14 6.2 Previous Exploration and Development Results 14 6.3 Historic Mineral Resource and Reserve Estimates 16 6.4 Historic Production 16

7 Geological Setting and Mineralization 17 7.1 Regional Geology 17 7.2 Local and Property Geology 19 7.3 Significant Mineralized Zones 23

7.3.1 Sao Pedro das Águias 23

8 Deposit Type 25 8.1 Geological Model 25

9 Exploration 26 9.1 Surveys and Investigations 26 9.2 Sampling Methods and Quality 26

10 Drilling 28 10.1 Type and Extent 30 10.2 Procedures 31 10.3 Interpretation and Relevant Results 32

11 Sample Preparation, Analysis and Security 33 11.1 Sample Preparation 33 11.2 Analyses 33 11.3 Security 34

SRK Exploration Services Ltd Table of Contents Page v


11.4 Laboratories 34 11.5 Results and QC Procedures 35 11.6 Colt QA/QC 35 11.7 Certified Reference Materials - Field Standards - XRF 36 11.8 Field Blanks – XRF 38 11.9 Certified Reference Materials - Field Standards - ICP 38 11.10 Laboratory QA/QC Review 40 11.11 Opinion on Adequacy 42

12 Data Verification 44 12.1 Procedures 44 12.2 Limitations 45 12.3 Data Adequacy 45

13 Mineral Processing and Metallurgical Testing 46 13.1 Metallurgical Programme on Tabuaço Outcrop 46

13.1.1 Heavy Liquid Separation Study 46 13.1.2 Gravity Release Study 47 13.1.3 Gravity Concentration Tests 49 13.1.4 Scheelite Flotation Tests 50

13.2 Metallurgical Programme on Tabuaço Drill Core Reject 51 13.2.1 Scheelite Flotation Studies 52 13.2.2 Bulk Gravity/Flotation Study 54 13.2.3 Gravity Concentration Tests 54

13.3 Recovery 57 13.4 Processing 58

14 Mineral Resource Estimate 59 14.1 Introduction 59 14.2 Database Construction and Validation 59 14.3 Geological Interpretation and Domaining 59 14.4 Density Analysis 60 14.5 Statistical Analyses 61 14.6 Grade Capping 64 14.7 Variographic Analyses 65 14.8 Block Model Construction 66 14.9 Grade Interpolation 66

14.9.1 Introduction 66 14.9.2 Neighbourhood Scenarios 66

14.10 Block Model Validation 67 14.10.1 Mean Block Grade versus Declustered Composite Mean Grade 67 14.10.2 Validation Slices 67

14.11 Mineral Resource Classification 70 14.12 Mineral Resource Statement 71 14.13 Grade Tonnage Curves 72

15 Mineral Reserve Estimate 74

16 Mining Methods 74

17 Recovery Methods 74

18 Project Infrastructure 74 18.1 Power 75 18.2 Water 75 18.3 Mining Personnel 75

SRK Exploration Services Ltd Table of Contents Page vi


19 Market studies and Contracts 75 19.1 Applications: 75 19.2 Production: 76 19.3 Consumption 76 19.4 Prices: 76

20 Environmental Studies, Permitting and Social/Community Impact 77

21 Capital and Operation costs 77

22 Economic Analysis 77

23 Adjacent Properties 77

24 Other Relevant data 77

25 Interpretation and Conclusions 78

26 Recommendations 78

27 References 79

28 Glossary 80 28.1 Mineral Resources 80 28.2 Mineral Reserves 80 28.3 General Mining Terms 81 28.4 Abbreviations 83

SRK Exploration Services Ltd Table of Contents Page vii


List of Figures Figure 4-1 Location of the Armamar-Meda Exploration Licence, North-Central

Portugal. 7Figure 5-1 View of the Tabuaço Tungsten Project, looking from the East, circa 2009. 11Figure 5-2 Tabuaço Project Area Topography and Skarn Outcrop. 12Figure 7-1 Tectonic Domains of Spain and Portugal 18Figure 7-2 Geological map of Portugal 19Figure 7-3 Regional Geological map of the Armamar-Meda Licence area 21Figure 7-4 Geological map of the Tabuaço Tungsten Project area 22Figure 7-5 Mineralised zones of the Armamar-Meda Concession 23Figure 7-6 Typical schematic section though the Tabuaço deposit, looking to the

Northwest 24Figure 10-1 Location map of Diamond Drilling at the Tabuaço Project 30Figure 11-1 Field Standard W104, XRF QAQC 36Figure 11-2 Field Standard W106, XRF QAQC 37Figure 11-3 Field Standard W108, XRF QAQC 37Figure 11-4 Field Blanks - XRF QAQC 38Figure 11-5 Field Standard W104, ICP-AES QAQC 39Figure 11-6 Field Standard W106, ICP-AES QAQC 39Figure 11-7 Field Standard W108, ICP-AES QAQC 40Figure 11-8 Laboratory Standards QA/QC - OMAC XRF 41Figure 11-9 Laboratory Standards QA/QC - ALS XRF 41Figure 11-10 OMAC and ALS Laboratory Duplicates QA/QC – XRF 42Figure 11-11 OMAC and ALS Laboratory Blanks QA/QC – XRF 42Figure 14-1 Typical cross section through the modelled units 60Figure 14-2 Grade histograms for Lower Skarn Unit 63Figure 14-3 Grade histograms for Upper Skarn Unit 64Figure 14-4 Upper and Lower Skarn Combined Data Modelled Variograms 65Figure 14-5 Validation Plots – Lower Skarn Unit 68Figure 14-6 Validation Plots – Upper Skarn Unit 69Figure 14-7 Classification of Tabuaço deposit 71Figure 14-8 Grade - Tonnage Curve for Tabuaço 73

List of Tables Table 2-1 SRK Site Visit Participants 3Table 4-1 UTM and HG coordinates of the boundary of the "Armamar-Meda"

exploration area 8Table 5-1 Köppen Climate Classification for Portugal 12Table 6-1 List of historic diamond drilling conducted by SPE-SEREM. UTM ED50

Datum. 15Table 6-2 Best intercepts from the SPE-SEREM Drilling 15Table 10-1 Drillholes utilised in the current Mineral Resource Estimate . 29Table 10-2 Table of the best drill intersections at Tabuaço 32Table 13-1 Head Analyses for the Tabuaço Outcrop Sample 46Table 13-2 Gravity Study on Individual Size Fractions from the Tabuaço Outcrop

Sample 47Table 13-3 Gravity Concentration Test on -500+150 micron and -150micron Size

Fractions from the Tabuaço Outcrop Sample 50Table 13-4 Summary of Scheelite Rougher Flotation Tests on Tabuaço Outcrop

Composite 50Table 13-5 Head Analyses for Tabuaço Drill Core Reject Test Composite 51

SRK Exploration Services Ltd Table of Contents Page viii


Table 13-6 Tabuaço Scheelite Flotation Versus Collector Dosage 53Table 13-7 Tabuaço Scheelite Flotation Versus Sodium Silicate Dosage 53Table 13-8 Tabuaço Scheelite Flotation Versus Grind Size 54Table 13-9 Bulk Composite Tungsten Grades and Distributions by Size 54Table 13-10 Gravity Concentration Results on -48+65 mesh Size Fraction 55Table 13-11 Summary of Gravity Concentrtion Tests on -65m + 150m Size Fraction 55Table 13-12 Summary of Gravity Tests on -150m + 200m Size Fraction 56Table 13-13 Summary of Scheelite Flotation Test on the Bulk Composite -200m

Fraction 57Table 13-14 Material Balance for Bulk Gravity/Flotation Test and Estimated

Tungsten Recovery 58Table 14-1 Average SG’s by lithology, Tabuaço Project 60Table 14-2: Descriptive Statistics for Lower Skarn Unit 63Table 14-3 Descriptive Statistics for Upper Skarn Unit 64Table 14-4: Variogram Parameters for Upper and Lower Combined Skarn Units 65Table 14-5: Block Model Parameters 66Table 14-6: Final Search Ellipsoid Parameters for Lower Skarn Unit 67Table 14-7: Final Search Ellipsoid Parameters for Upper Skarn Unit 67Table 14-8: Tabuaço Project Block Mean Grade Comparison 67Table 14-9: SRK Mineral Resource Statement for the Tabuaço Project Area,

Portugal, December 2011 72Table 14-10 Tabuaço Grade and Tonnage Tabulation 72

Appendices Appendix I – CRM Certificates 87Appendix II – Author Certificates 90

Tabuaço_43-101 20111221.docx 21 December 2011

21st December 2011

NI 43-101 Technical Report on The Tabuaço Tungsten Project, Portugal.

2 Introduction

Colt Resources Inc. (COLT) is listed on the TSX Venture Exchange (TSX-V: GTP) and through its wholly owned subsidiary Eurocolt Resources LDA (EUROCOLT) is the 100% beneficial owner of the Tabuaço Tungsten Project (Tabuaço or the Project) located in northern Portugal.

This report has been prepared by SRK Exploration Services Ltd (SRK ES) on behalf of COLT for the purposes of complying with COLT’s securities’ obligations as a reporting issuer in the provinces of Ontario, Quebec, British Columbia and Alberta, Canada, as a result of the reporting of the project’s first compliant Mineral Resource Estimate.

2.1 Terms of Reference and Purpose of the Report This report has been prepared in accordance with the Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101) and the Resources have been classified in accordance with standards as defined by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) “CIM Definition Standards - For Mineral Resources and Mineral Reserves”, prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council on December 11, 2005 and as amended on November 27, 2010.

Colt may also use this Technical Report on Exploration for any lawful purpose to which it is suited.

2.2 Qualifications of Consultants (SRK)

SRK ES are part of the wider SRK Group. The SRK Group comprises over 1,300 staff, offering expertise in a wide range of resource engineering disciplines. The SRK Group’s independence is ensured by the fact that it holds no equity in any project and that its ownership rests solely with its staff. This relationship permits SRK to provide its clients with conflict-free and objective recommendations on crucial judgment issues. SRK has a demonstrated record of accomplishment in undertaking independent assessments of Mineral Resources and Mineral Reserves, project evaluations and audits, technical reports and independent feasibility evaluations

SRK Exploration Services Ltd 12 St Andrew’s Crescent, Cardiff, United Kingdom CF10 3DD. e-mail: [email protected] URL: www.srkexploration.com

Tel: + 44 (0)29 20 233 233 Fax: + 44 (0)29 20 233 211

mailto:[email protected]�

SRK Exploration Services Ltd Tabuaço 43-101 Page 2


to bankable standards on behalf of exploration and mining companies and financial institutions worldwide.

The SRK Group has also worked with a large number of major international mining companies and their projects, providing mining industry consultancy service inputs. SRK Exploration Services Ltd (SRK ES) is part of the larger SRK Group and is based in Cardiff, U.K., with a focus on field-based exploration activities. Neither SRK nor SRK ES (collectively referred to as SRK) nor any of its employees and associates employed in the preparation of this report has any beneficial interest in Colt or in the assets of Colt. The results of the technical review by SRK are not dependent on any prior agreements concerning the conclusions to be reached, nor are there any undisclosed understandings concerning any future business dealings. SRK will be paid a fee for this work in accordance with normal professional consulting practice.

The SRK personnel involved with the project have extensive experience in the mining and exploration industry and are members in good standing of appropriate professional institutions.

Listed below are the individuals who have provided input to this technical report:

• Gareth O’Donovan (SRK ES), MSc, C Eng, FIMMM, FGS, • Dr Lucy Roberts (SRK UK) • Eric Olin (SRK NA), MAusIMM; • Jeff Volk (SRK NA), CPG, FAusIMM, MSc • James Gilbertson (SRK ES), MSc, CGeol

The experience of the authors of this document is noted below. Gareth O’Donovan is a Corporate Exploration Consultant with over 25 years experience in mining and exploration projects in Africa, South America, the Russian Federation, Europe and Asia. He specialises in the design, implementation and management of exploration projects from grassroots to pre-feasibility in all terrains and environments, mobilising multi-disciplinary field teams, also technical reviews, Competent Person’s Reports, audits and valuations of exploration and mining properties world-wide and in a variety of commodities. For the past eight years he has been Managing Director of SRK Exploration Services Ltd. (SRK ES).

Dr Lucy Roberts, is a Senior Consultant (Resource Geology) specialising in all aspects of mineral resource estimation and classification and has eight years experience in the resource sector. Since completing a PhD in Applied Geostatistics and joining SRK in 2006, she has undertaken resource estimates for various precious metals, gemstone and bulk commodity projects and provided key input into the generation of Mineral Expert Reports, Competent Persons’ Reports, and Independent Engineer Reports for various international exchanges and debt funding reviews. Lucy also has extensive experience in auditing Russian and former Soviet Union style resource estimates to international reporting standards. Key skills include extensive knowledge of geological and mine planning software including Gemcom, Vulcan, Datamine, Whittle and Isatis geostatistical software.

Eric Olin has more than 29 years experience in the minerals industry with extensive consulting, plant operations, process development, project management and research & development



experience with base metals, precious metals, ferrous metals and industrial minerals, and has served as the plant superintendent for several gold and base metal mining operations. Additionally, Mr. Olin has been involved with numerous third-party due-diligence audits, and preparation of project conceptual, pre-feasibility and full-feasibility studies.

Jeffrey Volk has more than 25 years of operational and consulting experience in the minerals industry, specifically in mineral resource estimation, production geology, feasibility studies and economic evaluations. Before joining SRK in 2007, he was employed for 19 years by Barrick Gold Corporation in a number of senior operational and development roles. Mr. Volk is a Certified Professional Geologist and a Qualified Person as defined by international reporting codes, and is knowledgeable in all aspects of public reserve/resource disclosure and compliance. He has completed resource modeling, due diligence, acquisition and evaluations assignments for precious and base metals, platinum group metals, and uranium in Russia and the Former Soviet Union, Australia, Africa, Peru, Mexico, Chile and North America.

James Gilbertson - James is a Principal Exploration Geologist with SRK ES with over 12 years of experience in mineral exploration and resource estimation in multiple commodities across Europe, South America, Asia and the Russian Federation. He specialises in target generation, exploration programme design and implementation, exploration logistics, QAQC programmes, data storage and management and has acted as a Competent Person on a number of Mineral Resource Estimations. For the last two years James has been a Director of SRK Exploration Services Ltd.

2.3 QP site visits

SRK has been extensively involved at Tabuaço since February 2011, conducting numerous visits to the project as listed below.

Table 2-1 SRK Site Visit Participants

Personnel Expertise Date(s) of Visit

Jeff Volk Resource Estimation 2/2/2011 – 5/2/2011; 17/7/2011 – 20/7/2011

Gareth O'Donovan Exploration Geology

2/2/2011 – 4/2/2011; 11/5/2011-13/5/2011; 17/7/2011 – 20/7/2011; 22/8/2011 – 29/8/2011

Richard Oseland Exploration/Database

2/2/2011 – 5/2/2011; 17/4/2011 – 21/4/2011; 6/6/2011-9/06/2011; - 4/7/2011 – 6/7/2011 -

William Kellaway Exploration/Drilling 31/5/2011 – 3/6/2011 & 28/6/2011 – 30/6/2011

Steven Bateman Exploration/Drilling 27/6/2011 – 3/7/2011 James Gilbertson Exploration/Modeling 22/8/2011 – 29/8/2011 Max Brown Geotechnical 31/5/2011 – 2/6/2011 Eric Olin Metallurgy/Process 2/2/2011 – 5/2/2011 Peter Critikos Infrastructure 2/2/2011 – 5/2/2011



2.4 Effective Date The effective date of this report is December 21st, 2011.

2.5 Units of Measure All currency amounts are stated in US dollars or European Monetary Units, or Euros (€) unless otherwise specified. The units of measure presented in this report are metric tonne units (MTU’s), which are equal to ten kilogram’s per metric tonne and is the standard weight measure of the tungsten metal market. Tungsten values are reported in percentiles of W and converted from W to WO3 at a factor of 1.2611 as appropriate and necessary.

3 Reliance on Other Experts

Various sources of expertise have been utilised in this report, principally as follows;

Mining

Fernando Real – is an independant consulting Mining Engineer with a long and distinguished history of developing mining projects in Portugal. His background includes serving as a Development Engineer and Production Superintendent at Beralt Tin’s Panasqueira Mine, as Associate Professor of Mining at Lisbon University, as General Manager of Somincor’s Neves-Corvo Mine, as a Director and Board Member of Somincor SA and as a Consultant to Rio Tinto’s Copper Group in Australia, Africa and Southern Europe. Jorge Valente is the President of Eurocolt, wholly-owned subsidary of Colt Resources. Mr Valente has over 40 years of extensive experience in the mining industry. He is a mining engineer (graduated from IST, Lisbon, 1970), specializing in Geomathematics (mineral resources and ore reserves estimation and mine planning). He also teaches post-graduate courses at the School of Mines of UFOP (Ouro Preto Federal University), and is a certified CP (“competent person”, by SME – USA).

GeoLog – Cabinete de Geosciencias, Lda, principally in the form of Filipe Faria, the General Director. GeoLog has been involved with Colt and Tabuaço for many years being the principal providers of field geological and exploration services to the company. Mr. Faria’s expertise in tungsten and the geology of the region is extensive and has proved to be a valuable asset to Colt and the Tabuaço project.

Geology and Drilling

João Carlos Gaspar de Sousa - Mr de Sousa is Colt’s Vice President, Operations (Portugal). He is a Senior Exploration Geologist with 28 years of experience including 5 years as the Country Manager for Iberian Resources Portugal (the former owner of Colt’s Montemor project), more than 2 years with Empresa de Desenvolvimento Mineiro, S.A. and its subsidiary, 13 years with Rio Tinto and 5 years with Lundin Mining Corporation (EuroZinc Mining Corp.) which owns the "Neves-Corvo" copper mine in Portugal.



Economic Studies

Todd Hennis, - Mr. Hennis has 28 years experience in the mining and metals business. He graduated from Harvard College in 1982 with honors in economics, with emphasis on the natural resource industries. Mr. Hennis has extensive experience and background in the metal trading industry, both at the predecessor of Glencore International AG and at Cargill. Corporate and Geology. Mr Hennis is also a President of Salem Minerals Inc., a privately owned resource company based in Colorado.

Corporate and Geology

Declan Costelloe CEng – Mr.Costelloe serves as a director and holds the positions of Executive Vice President and Chief Operating Officer for Colt. Mr. Costelloe serves as President of Celtic Mining, Ltd., an independent mining consulting firm. Mr. Costelloe is a chartered engineer (UK Engineering Council) and a mining geologist with over 20 years experience in the mining and exploration business as well as fund management. Mr. Costelloe holds a B.Sc. in geology from University College, Galway, and a B.Sc. in mining geology from the University of Wales College Cardiff. Mr. Costelloe also currently serves as a director of U.S. Gold Corporation (TSX:UXG), Bravo Gold Corp (TSXV:BVG), and Alexandria Minerals Corporation (TSXV:AZX)

Environmental Consultants

Tterra Engineering and Environment LDA is an independant consulting company based in Lisbon, Portugal. Tterra were engaged by Colt Resources to provide an independant environmental and heritage assesment of the Tabuaço Project, focussing on environmental restrictions, water supply and spatial planning and historic buildings. Tterra were also instructed to provide a baseline of the current state of the project site, taking into account the main environmental factors which could be affected by any future exploration or mining activities.



4 Property Description and Location The Armamar Meda concession is situated in the North Central region of Portugal, approximately 300 kilometres NNE of Lisbon, 100 km to the ESE of Porto and only 25 km to the SE from Peso da Régua, a local regional centre. There are other small towns in the vicinity, including Armamar, Moimenta da Beira, Penedono and S. João da Pesqueira.

The town of Meda is the largest municipality in the immediate area, with Viseu the main population and district administrative centre, with several smaller villages in the vicinity of the property.

The “Armamar-Meda” exploration area comprises two separate blocks which total 110.20 km2, The southern most block is referred to as the Meda block (Latitude: 40°56'51.45"N, Longitude: 7°16'11.16"W ) and the northern most area as the São Pedro das Aguias block (Latitude: 41° 5'5.27"N, Longitude: 7°30'55.69"W), which contains the Tabuaço project.

The Tabuaço project is located approximately three kilometres south of the village of Távora within the district of Viseu, and the Tabuaço municipality. It is located along the western flank of the Távora River, a tributary of the Douro river, the main river in the North of Portugal (Figure 4-1). The project has also historically been referred to as the “S. Pedro das Águias” skarn deposit.



Figure 4-1 Location of the Armamar-Meda Exploration Licence, North-Central Portugal.

4.1 Mineral Titles Colt Resources Inc. has 100% mineral rights on the concession covering the Tabuaço project, which is included in the exploration contract granted by the Portuguese Government, under the terms of the Decree-Law 88/90 and 90/90.

The exploration contract was signed on the 10th December of 2007 and has a five year duration, expiring on the 9th December of 2012. Due to various relinquishments over the duration of the licence, it now comprises two distinct areas referred to as the “Sao Pedro das Águias” Block and the “Meda” Block

The boundaries of the two current exploration areas comprise a total of 110.2km2 (S. Pedro Aguias Block = 4515 hectares; Meda Block = 6507 hectares). SRK notes that the coordinates



have been converted from Hayford-Gauss (Datum 73) to UTM29T(Datum ED50) and are shown below in Table 4-1 in both formats.

Table 4-1 UTM and HG coordinates of the boundary of the "Armamar-Meda" exploration area

S. Pedro Aguias Block Point Eastings (ED 50) Eastings (HG73) Northings (ED 50) Northings (HG73)

1 619014.2114 46 135 4551909.124 160 000 2 627386.7707 54 510 4551992.552 160 000 3 629862.1166 56 958 4549202.725 157 185 4 628875.1941 55 959 4548008.111 156 000 5 624917.321 52 000 4547968.701 156 000 6 622436.9886 49 494 4545438.489 153 494 7 618428.8136 45 530 4549953.682 158 050

Meda Block Point Eastings Northings

1 641357.7666 68 370 4540602.61 148 469 2 644012.362 71 028 4540902.966 148 743 3 646161.4633 73 147 4537842.804 145 661 4 652077.348 79 042 4535654.921 143 414 5 651634.3643 78 565 4532237.001 140 000 6 641441.8997 68 370 4532135.796 140 000

4.2 Nature and Extent of Issuer’s Interest

According to the terms of the exploration contract signed on the 10th of December 2007, 50% of the area was relinquished after the initial period of three years on the 9th December 2010, and a further 50% of the remainder one year later on 10th December 2011.

The expenditure commitment required is 25,000 Euros in the first year, 50,000 Euros during the second year, 75,000 Euros during the third year and 100,000 Euros per each one of the remaining contractual years. All expenditures have thus far been exceeded.

4.3 Royalties, Agreements and Encumbrances Under the terms of the exploration contract, any mine registered under it is subject at the sole discretion of the Portuguese Government, either to pay a royalty of 10% of the net yearly profits or up to a maximum of 4% of a Net Smelter Return on production, depending on the gold market value, or half of these amounts if other commodities are mined (having gold as a reference). The standard corporate tax rate in Portugal is 25% and an additional 2.5% municipality tax is also imposed, for a total corporation tax rate of 27.5%.

4.4 Environmental Liabilities and Permitting SRK has not conducted a detailed review of the environmental liabilities and permitting and is not aware of any existing environmental liabilities on the Tabuaço project.



4.5 Required Permits and Status

The Tabuaço project is at the resource definition stage of development, and at this stage is still an exploration licence. A mining licence can be obtained during the exploration period by the submission of a mining licence application to the relevant authorities.

According to the present mining legislation, the company should submit for approval before the end of the exploration licence, a set of detailed documents, including:

- Mine plan – with a description of the selected mining method and mining sequence, main equipment, flow sheets of the metallurgical process and metallurgical balance, basic design of the main mine infrastructures and installations, water and electrical supplies, tailings disposal and effluents treatment. It should also include a description of the mineral deposit, including reserve calculation.

- Environmental management and rehabilitation plan – covering topics related with mine closure and the rehabilitation of the mine site and surrounding affected landscape. This plan has to be detailed on a yearly basis, and will imply a bond in order to guarantee that the plan will be enforced.

- Land fill plan – includes a set of detailed studies, including geotechnical studies of the permeability of the ground where they will be built, slope stability studies and also studies about the chemical stability of the materials to be stored at these locations.

- Environmental impact assessment (EIA) – this document should be done in parallel with the mine plan as it is conditional on information provided by it. In order to get the mining licence the company needs to have the EIA approved. Technically the government agency responsible for the environment will issue a DIA (Declaration of Impact Assessment) where it will be stated the terms and conditions the mine has to follow during construction and operation.

- Pre-feasibility plan – this document is needed to show that the mine is economically viable.

- Other licenses – some other licences are required, namely those required to build dams and also those required to allow the construction of the industrial facilities and other infrastructure.

Currently the company has an environmental baseline study and is in the process of contracting a PDA (Environmental scope definition) for the EIA.

The company has commenced preparations for making application for a mining permit and will submit the application during 2012.

4.6 Other Significant Factors and Risks The Tabuaço Project is located within an area of extensive port wine vineyards. Port wine making is an important economic activity for the local communities and they are sensitive to the



environmental issues. Colt is currently the land owner over the majority of the Tabuaço project area and thus far all activities have been conducted in an environmentally friendly fashion.

While the local communities have not as yet shown any resistance to the possibility of a mine at Tabuaço, Colt will need to exercise all due care to ensure that this remains the case and that the communities remain engaged.



5 Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Topography, Elevation and Vegetation The Licence area is situated in an area of varying topography, from undulating rolling hills in the SW to steep peaks and corresponding deep v-shaped valleys in the central, eastern and north eastern areas surrounding the project, Figure 5-1 and Figure 5-2.

The Tabuaço project area is situated overlooking the banks of the Távora River. The exploration area is of steep relief on the valley sides, with elevations ranging from +500m down to +225m above mean sea level. The vegetation of the project area is a mix of terraced grape vines and orchards, small farming areas, wooded areas and fallow ground.

Figure 5-1 View of the Tabuaço Tungsten Project, looking from the East, circa 2009.

N



Figure 5-2 Tabuaço Project Area Topography and Skarn Outcrop.

5.2 Accessibility and Transportation to the Property The Armamar-Meda licence area is immediately accessible through a good network of local roads and is bisected north to south by the national highway N323. The E-W highway N222 is also located just to the north of the project area. The project is located at a distance from the modernised major national highway system but it does have good access to the N-S road networks, in particular the IP2/N102 highway to the east and A24/IP3 highway to the west.

5.3 Climate and Length of Operating Season The climate of Portugal is described as typically Mediterranean, consisting of dry hot summers and temperate wet winters. The Portuguese climate is rated as type “Csa” to the south and type “Csb” to the north, according to the Köppen climate classification shown in Table 5-1.

Table 5-1 Köppen Climate Classification for Portugal

C Subtropical & Mild Mid- Latitude Csa Mediterranean Mild with dry hot summer

Csb Mediterranean Mild with dry warm summer



Typical Portuguese climatic conditions:

• The average temperature in Portugal is 16.6 °C (62 °F). • The average temperature range is 11.5 °C. • The highest monthly average high temperature is 28 °C (82 °F) in August. • The lowest monthly average low temperature is 8 °C (46 °F) in January & February. • Portugal experiences an average of 708 mm (27.9 in) of rainfall per year, or 59 mm (2.3

in) per month. • On average there are 113 days per year with more than 0.1 mm (0.004 in) of rainfall

(precipitation) or 9 days with a quantity of rain, sleet, snow etc. per month. • The driest weather is in July when an average of 3 mm (0.1 in) of rainfall (precipitation)

occurs across 2 days. • The wettest weather is in January when an average of 111 mm (4.4 in) of rainfall

(precipitation) occurs across 15 days. • The average annual relative humidity is 70.0% and average monthly relative humidity

ranges from 60% in July to 80% in January & December. • Average sunlight hours in Portugal range between 5.1 hours per day in December and

12.2 hours per day in July. There is on average 3,023 hours of sunlight per year with a daily average of 8.3 hours.

Source: http://www.climatetemp.info/portugal

The climate of the Tabuaço project area is distinct from its immediate surrounds, due to the steep valley setting producing a microclimate effect. It can be described best as temperate-humid with a mean temperature of +15°C and annual rainfall of approximately 20cm; the majority of which usually falls during November through to March. Summer temperatures can reach up to 45°C and are usually above 30°C between June and September, bringing brisk winds to the elevated project areas. Winters in the project area are relatively mild, with infrequent snowfalls on the higher peaks of the region usually dissipated within a few days. The official absolute extreme temperature is recorded as -16 °C at Penhas da Saũde on 4 February 1954. The one and only ski-resort in Portugal is located in the Serra da Estrela, at the boundary of the municipalities of Seia, Manteigas, Gouveia, Guarda and Covilhá.

The lack of any distinct period of high rain or snowfall, together with good site access, means the operating season for exploration can therefore suitably be described as year-round.

5.4 Sufficiency of Surface Rights Colt is the owner of the majority of the surface rights over the Tabuaço project area and is on good terms with the majority of the local landowners. At this stage the surface rights are deemed sufficient for the projects immediate requirements. Colt is currently in negotiations with other land owners regarding acquisition of further surface rights in areas that might be required for development purposes.

http://www.climatetemp.info/portugal�



6 History Mineral discoveries and exploitation in the region dates back to pre-Roman times. Small mining operations are evident in the deep cuts left by artisanal miners following gold veins. Small scale mining of tungsten was also conducted as recently as the 1940’s when WWII led to an upsurge in demand for tungsten and a resulting mini mining-boom in the area led to a multitude of individual small scale pits, excavations and processing sites.

However it was during the 1970’s, that geologists from the Serviço de Fomento Mineiro SFM (mines department) discovered the scheelite bearing skarns along the flanks of the Távora River, through geological mapping and mineral-light exploration (short wave UV lamping). This work was first documented in 1980 by Sousa, Ramos & Viegas. From1980 to 1982, a joint venture between the Portugese Sociedade Portugesa de Empreedimentos (SPE) and the French Société d’Etudes de recherché et d’Exploitations Minières SEREM, the 100% owned exploration arm of the Bureau de Recherché Géologiques et Minières (BRGM),, explored the area which now includes the Tabuaço Tungsten Project.

6.1 Prior Ownership and Ownership Changes The whole Armamar-Meda (current) Licence was once included in the very large "Alto Douro" exploration concession (Sn-W, Au, etc.) held by the SPE-BRGM consortium in period 1979-1984. Part of the Armamar-Meda Licence was once included in Greystar Resources Inc's Penedono exploration concession during the period 1995-1997; Part of the Armamar-Meda Licence was included in Rio Narcea Gold Mines' first Penedono exploration concession during the period 1999-2004.

6.2 Previous Exploration and Development Results Tungsten skarns were first discovered at the Tabuaço project area by Government geologists in the 1970’s during geological fieldwork and UV light prospecting.

Further exploration of the Tabuaço project area was completed in the 1980’s by a consortium of the Portuguese companies (SPE) and the BRGM (through subsidiary SEREM) with work focused on São Pedro das Águias, Quintã and Quinta do Paço.

A copy of the detailed exploration data was obtained directly from SPE’s project geologist.This was compiled into a report by Filipe Faria of GeoLog on behalf of Colt.

The initial phase of the SPE-SEREM exploration work conducted during 1980-1981 focused on regional mapping, ultra violet (UV) lamp prospecting, grab sampling, channel rock sampling and stream sediment and soil sampling programmes.

The bulk of the work was conducted on the São Pedro das Águias prospect where vegetation was removed to allow for the extensive sampling of the exposed skarn outcrop in the northern and



southern boundaries. The northern skarn was sampled through two channels, 16.70m long and 15.50m long, with weighted averages of 0.67% and 0.56% W and 0.086% Sn. The southern skarn samples returned assay results of 0.10% to 0.55% W, with roughly 0.05% Sn.

At Quintã exploration was limited due to a current tin mining concession covering the area at the time (now expired). Exploration results located a number of skarn horizons, with initial results reported at 0.17% to 0.76% tungsten.

Initial drilling of the Tabuaço project comprised a total of six diamond drill holes to determine the geometry, structure and grade of these scheelite rich skarns and were completed on during the 1981-1982 seasons by a local contractor (Teixeira Duarte), Table 6-1and Table 6-2. This contractor was not a mineral exploration driller, and core recoveries were poor, reportedly averaging 76%.

Holes S1 and S2 confirmed the presence of a carbonate/skarn horizon dipping sub-horizontally, with mineralization concentrated within the lower skarn horizon. The northernmost drilled hole, S9, was thought to represent the central area of the deposit, intersecting 19.35m of mineralization reported at 1.18% WO3, although no further drilling was carried out at the time to confirm this theory

Table 6-1 List of historic diamond drilling conducted by SPE-SEREM. UTM ED50 Datum.

Hole ID Easting Northing Elevation EOH_m Collar_Dip Collar_Azi S1 624726 4549382 380.82 101.05 -90 0 S2 624726 4549382 380.82 105.25 -55 250 S3 624835 4549225 392.39 108 -90 0 S4 624835 4549225 392.39 84.8 -40 250 S6 624914 4549241 358.93 81.05 -90 0 S9 624662 4549465 386.63 63.8 -90 0

Table 6-2 Best intercepts from the SPE-SEREM Drilling

DDH From To Interval WO3 % S1 50.00 52.10 2.10 0.93% S1 63.55 68.72 5.17 0.48% S1 76.03 78.14 2.11 0.68% S2 80.93 85.60 4.67 0.73% S2 87.40 95.00 7.60 0.52% S2 96.75 98.40 1.65 0.38% S9 25.00 44.35 19.35 1.18%

Laboratory analysis on the samples from the SPE-SEREM exploration programme were conducted at SFM’s (now INETI) laboratory at S.Mamede de Infesta, near Porto. Analysis was completed using X-ray fluorescence spectrometry (XRF), reporting results in ppm W and ppm Sn with manual conversion of these results to % WO3 and % Sn. Neither of the conversion formulae used to calculate the % WO3 or % Sn is known. The suitability of the laboratory, equipment or



sample preparation methods used in the SPE-SEREM exploration is also unverifiable; however XRF is a currently an accepted analytical method for such mineralisation.

Check analyses were conducted by the BRGM laboratory in Orleans.

6.3 Historic Mineral Resource and Reserve Estimates The reported historical “resource” and “reserve” inventories cannot be considered a mineral resource or a mineral reserve under CIM guidelines as economic parameters used to derive the estimates do not reflect accurately the current economics of exploiting this deposit. Furthermore, procedures and data used have not been reviewed and verified by a Qualified Person and therefore cannot be classified as a Mineral Resource under Canadian Securities Administrators NI 43-101 guidelines. In all cases, insufficient documentation exists that would allow SRK to classify historic reserve and resource estimates into the categories as currently defined by CIM guidelines. These historic estimates should be considered unclassified mineralized material.

Previous work by SPE-SEREM estimated, a non-compliant, geological resource of approximately 1 million tons of scheelite skarn mineralization in stratiform horizons, grading 0.87% WO3 .

6.4 Historic Production Production in the immediate Tabuaço area has not been recorded in modern literature. However during the Second World War there was some minor mining activity along the Távora River, mainly to recover cassiterite, and probably small amounts of wolframite from the sediments and also from a small underground mine on the right flank of the Távora River, north of Ponte do Fumo, but no production figures are available.



7 Geological Setting and Mineralization

7.1 Regional Geology The geology of Portugal is subdivided into two large domains: the Hesperian Massif and the Epi-Hercynian (Variscan) cover rocks. The Hesperian Massif is itself subdivided into four main tectonic domains (Figure 5-1), which date from the Pre-Cambrian through the Paleozoic:

• Galacia-Tras-os-Montes Zone; • Ossa Moreno Zone; • Central Iberian Zone; and • South Portuguese Zone.

The Galacia-Tras-os-Montes Zone (GTMZ) occurs in the north-west corner of the country and is characterised by the mafic and ultramafic Braganga and Morais massifs. The rocks surrounding the massifs are mainly Silurian and represented by acid and basic volcanic rocks, which are thrust against the massifs. Alkali and porphyritic granites also occur. The Central Iberian Zone (CIZ) is characterised by the predominance of schists and greywackes with minor carbonates representing metamorphosed flysch-type rocks dating from the Cambrian and Late Precambrian. There are also large areas of alkali and calcalkali granites and granodiorites.

The Ossa-Moreno Zone (OMZ) is a complex and diverse domain, with a stratigraphic sequence that goes from the Precambrian through Cambrian and Silurian and ends with flysch units in the Devonian. The contact with the CIZ is a regional tectonic feature known as the Tomar Cordoba Shear Zone.

The north-eastern sector of the OMZ has a preponderance of calc-alkali intrusives, which are also found in the north and centre of the zone. Magmatic rocks become more basic towards the south, where gabbros, diorites and anorthosites occur in the Beja ophiolite complex, as well as the granites, granodiorites and tonalities of the Évora massif. The Beja Ophiolite Complex, which represents a piece of oceanic crust thrust up during the Variscan orogeny inter alia lies close to the contact with the South Portuguese Zone.

South Portuguese Zone (SPZ). The South Portuguese Zone (SPZ) is characterised by a Late Devonian - Early Carboniferous volcano-sedimentary complex, which is overlain by the Culm flysch sequence. These rocks are all underlain by the Pulo do Lobo Formation, comprising phyllites, quartzites and occasional acid and basic volcanics. The contact of the South Portuguese Zone (SPZ) with the Ossa Moreno is the Ferreira-Ficalho thrust.

The acid volcanics in the SPZ are associated with the massive polymetallic sulfides of the Iberian Pyrite Belt, which hosts the Aljustrel and Neves Corvo mines.

Finally, the Epi-Hercynian (Variscan) cover rocks include the Mesozoic-Cenozoic sedimentary units (limestones, clays and sandstones) of the south and west of Portugal and the basins of the Tagus (Tejo) and Sado Rivers.



The Tabuaço Tungsten Project is located within a segment of the CIZ in northern Portugal, see Figure 7-1 below.

Source: http://paleopolis.rediris.es/cg/CG2010_A09/

Figure 7-1 Tectonic Domains of Spain and Portugal

N

Scale: 200km

Tabuaço



Figure 7-2 Geological map of Portugal

7.2 Local and Property Geology The Armamar Meda Licence area is situated at the border zone of two major geologic units in the CIZ of northern Portugal, namely the Hercynian age Beiras granite batholiths and the Douro

Tabuaço



Valley Schist‐Greywacke Complex – “SGC” (Faria, 2008). The latter, of lower Cambrian age, comprises several formations that include shale, schist, siltstone, sandstone and greywacke, with subordinate conglomerate and carbonate beds. These rocks were folded and faulted mostly during the Hercynian (Upper Paleozoic) orogeny and subsequently regionally metamorphosed.

Outcropping rocks in the region comprise as follows;

• Schistose Unit: ‐ black and grey schist and phyllite, locally containing minor intercalated calc‐silicate.

• Limestone Facies: ‐ series of banded, grey‐green to bluish crystalline limestones and calc schists consisting of alternating thin layers of crystalline carbonates and meta‐pelites that have undergone greenschist metamorphism. Also includes local calc‐silicate and skarn horizons. Mineralogy consists of plagioclase feldspar, quartz, calcite, garnet and vesuvianite.

• Skarn: a much more developed metamorphic/metasomatic formation than the above unit with amphibolite‐facies metamorphism. Whitish to dark greenish colour and consisting of quartz, garnet, hornblende, epidote‐group minerals, rare calcite and occasional fluorite.

• Granite: ‐ medium‐grained “two‐mica” granite that is often tourmalinized and with feldspars often transformed to damourite, a greenish variety of muscovite.

• Aplite ‐ Pegmatite Sills and rare quartz veins: ‐ alteration of the aplite results in a greenish, finer‐grained muscovite bearing (± damourite) often tourmalinized rock.

The latter, comprises several formations that include shale, schist, siltstone, sandstone and greywacke, with subordinate conglomerate and carbonate beds. These rocks were folded and faulted mostly during the Hercynian (Upper Paleozoic) orogeny and subsequently regionally metamorphosed. This was followed by intrusion of Hercynian age granites that often produced significant contact‐metamorphic haloes in the meta‐sediments (Figure 7-3). The lower part of the SGC, the Bateiras Formation, is characterized by black graphitic schists overlain by carbonate beds intercalated with grey schists. These litholgies normally outcrop only at the core zones of anticlines



Figure 7-3 Regional Geological map of the Armamar-Meda Licence area

The Schist-Greywacke Complex minerals are in contact with the Aramamar-Tabuaço granite batholith within the Tabuaço project area, and this contact is associated with the Távora anticline, which hosts graphitic schists overlain by skarn and carbonate horizons. Metasomatism of the carbonates is thought to have produced the quartz-garnet-amphibole-pyroxene skarns that host the target tungsten-tin mineralization.



Figure 7-4 Geological map of the Tabuaço Tungsten Project area

Tabuaço Project



7.3 Significant Mineralized Zones The Tabuaço area is noted for tungsten and tin occurrences, and has seen a number of past artisanal workings.

In the Armamar-Meda Concession, there are a number of significant mineralized zones mapped as skarn outcrop. For the purpose of this report and resource estimation, only the São Pedro das Águias, mineralized zones lie within the immediate Tabuaço project area, with the Quinta das Herédias, Quinta da Aveleira, Quintá, Quintá-Távora, Quinta do Paço and Azenha Velha Zones lying outside the Tabuaço project area to the North and North East but still within the Armamar- Meda licence area,Figure 7-5.

Source: Colt Resources

Figure 7-5 Mineralised zones of the Armamar-Meda Concession

7.3.1 Sao Pedro das Águias This area contains the most significant known tungsten mineralization of the Tabuaço area and is located proximal to the Armamar-Tabuaço granitic intrusion, and also the Távora anticline.

There are two main skarn horizons, the “upper or main skarn” and the “lower skarn” separated by schists. There are also numerous lenses or pods of tungsten bearing skarn material above and below the two main horizons but drilling density is insufficient to model these zones at this stage see Figure 7-6 below.

N

Scale: 5km



Source: Colt Resources

Figure 7-6 Typical schematic section though the Tabuaço deposit, looking to the Northwest

The mapped upper and lower skarn outcrops at São Pedro das Águias are notably separated from the Quinta das Herédias skarn outcrops to the south by a major strike-slip fault, which has been mapped from surface.

This area has been surface sampled and mapped in detail by Colt, revealing a number of separate outcrops aside to the main outcropping body.

The skarn mineralised zones host virtually no sulphide mineralisation nor any molybdenum, thus providing a favourable assemblage for both mineral processing, and environmental impact.



8 Deposit Type

Mineral deposits within the Armamar Meda licence and surrounding area include; skarn tungsten; tin & tungsten bearing veins and orogenic gold. The Tabuaço project is considered a skarn Tungsten deposit.

Tungsten skarns are one of seven types of skarn deposits that comprise an economically significant class of mineral deposits and which account for the majority of tungsten produced worldwide. As with most skarns, deposits form in “reactive” rocks such as calcareous sediments and/or volcanics. Skarns form by regional or contact metamorphism, the latter being the more traditional geologic model. In these settings intrusive rocks are often nearby and often provide the heat source for the hydrothermal activity that alters the host lithologies and introduces mineralization.

The term skarn is an old Swedish mining term originally used to describe a type of silicate gangue, however in modern usage the term "skarn" has been expanded to refer to calcium-bearing silicates In the USA the term "tactite" is often used synonymously with skarn.

Skarns and tactites are most often formed at the contact zone between intrusions of granitic magma bodies in contact with carbonate sedimentary rocks and hydrothermal fluids derived from the granitic magma are rich in silica, iron, aluminium, and magnesium. These fluids mix in the contact zone, dissolve calcium-rich carbonate rocks, and convert the host carbonate rock to skarn deposits in a metamorphic process known as "metasomatism". The resulting metamorphic rock may consist of a very wide variety of mineral assemblages dependent largely on the original composition of the magmatic fluids and the purity of the carbonate sedimentary rocks.

The actual ore-bearing mineral containing the tungsten at Tabuaço is scheelite, Ca(WO4). Scheelite is a calicium tungstate mineral (CaWO4 ), that fluoresces bright blue under shortwave ultra violet light, occasionaly trace impurities of Molybdenum cause a green glow.

8.1 Geological Model At Tabuaço the geological model used for exploration is best described as a contact metamorphosed tungsten skarn model. A granite/skarn interface is present with mineralization proximal to the granite boundary, with scheelite comprising the tungsten mineral present as fine to coarse disseminations within the skarn horizons. The Tabuaço model is further complicated by small scale local faulting.

http://en.wikipedia.org/wiki/Metasomatism�



9 Exploration After acquisition of the exploration licence and an assessment of the available data, Colt began field exploration on the Tabuaço project in 2008.

Initially these activities focused on prospecting, mapping and collection of rock chip samples, to establish the full surface extent of the mineralised zone. Ultraviolet lamp prospecting has also been conducted on the scheelite during a number of night time field visits. Results of this prospecting continued to be favourable leading to the initiation of diamond drilling in November 2009.

Since starting the exploration drilling programme at São Pedro das Águias in November 2009, Colt has drilled 36 drillholes, completing a total of 4,555 meters of diamond drilling across the Tabuaço project area. This work has resulted in Colt being able to estimate an initial resource for the Tabuaço project as presented in Section 14. A table displaying the best results obtained from the drilling is displayed as Table 10-2.

9.1 Surveys and Investigations All drillholes were surveyed at the collar surface by the responsible geologist, using a differential handheld GPS. Data for Eastings, Northings and RL was recorded in UTM 29T, Datum ED50.

A high resolution topographic survey was conducted in 2010 leading to a 2m resolution digital terrain model. Holes DHT 01 –DHT09 were also accurately surveyed during this work. The topographic survey has enabled the continued use of handheld GPS’ units for collar locations, as data can be draped on to the topographic surface and corrected.

Towards the end of the reporting period, a new coordinate system was chosen by the Portuguese government (Projected National Datum ETRS89, Coordinate System PT-TM06) and has been put into effect during September 2011. This has not yet been applied to the Colt Resources data set used in this report and therefore all survey data is presented in UTM 29T, Datum ED50.

9.2 Sampling Methods and Quality Returned drill core has been sampled on site by Colt staff, splitting the drillcore into ½ core samples for assaying.

SRK ES have recommended the insertion of blanks, certified standards and duplicates into the sample stream on an irregular basis, ensuring inclusion in each batch.

Blanks have been inserted at a rate of 1 per batch into the sample stream.

Certified Standards used by Colt are W104 (0.202% tungsten)/W106 (2.16% tungsten)/W108 (0.72% tungsten) and were inserted at a rate of 1 per batch into the sample stream. All Certified Standards have been prepared and supplied by WCM Minerals, and Certificates of Analysis are shown in Appendix I.



Blanks were prepared on site by the Colt technicians from known barren zones and inserted at a rate of 1 per batch into the sample stream.

SRK ES conducted a full QAQC analysis on the submitted samples, blanks and duplicates. Any samples from the returned assays that varied from the expected/duplicate values by more than 1 standard deviation were investigated further before acceptance into, or rejection from, the final dataset.



10 Drilling Three drilling campaigns have been conducted on the Tabuaço Tungsten project area.

The first was conducted by SPE SEREM in the early 1980’s and comprised nine diamond drill holes labelled S1-S9. This campaign was sufficient to prove the existence of scheelite bearing skarn horizons over the area but recoveries were poor thus none of the data has been utilised in a quantitative manner.

The second campaign was conducted by Colt in 2009-2010, primarily to verify the extent and levels of tungsten mineralisation quoted in the historical literature. A total of 9 holes were drilled totalling 815metres, and labelled DHT01B- DHT09.

The third campaign also conducted by Colt between November 2010 and 11th October 2011 was conducted to establish a Mineral Resource Estimate for Tabuaço and comprised 23 holes for 2661.54 metres and labelled DHT10- DHT 33(but not including DHT-31 and DHT-32),.

This comprises a total of 32 holes and a total of 3,427.5 meters.

The drillholes used in the current mineral Resource are listed and illustrated in Table 11-1 and Figure 11-1 below.



Table 10-1 Drillholes utilised in the current Mineral Resource Estimate .

Hole_ID Easting Northing Elevation Assay Result Included in Resource Estimation

DHT-01B 624658 4549476 380 Yes DHT-02 624717 4549394 379 Yes DHT-03 624775 4549320 377 Yes DHT-04 625033 4549408 262 Yes DHT-05 624828 4549382 333 Yes DHT-06 624874 4549350 331 Yes DHT-07 624968 4549271 323 Yes DHT-08 624697 4549440 378 Yes DHT-09 624696 4549438 378 Yes DHT-10 624532 4549506 400 Yes

DHT-10A 624533 4549506 400 Yes DHT-11A 624571 4549467 408.66 Yes DHT-12 624571 4549467 408.66 Yes DHT-13 624586 4549416 415.14 Yes DHT-14 624586 4549416 415.14 Yes DHT-15 624601 4549392 415.96 Yes DHT-16 624623 4549383 416.88 Yes

DHT-17A 624743 4549366 380.77 Yes DHT-18 624665 4549324 419.06 Yes DHT-19 624748 4549355 380.82 Yes DHT-20 624748 4549355 380.82 Yes DHT-21 624757 4549358 378.39 Yes

DHT-22A 624912 4549250 357.31 Yes DHT-23 624533 4549506 399.32 Yes DHT-24 624826 4549298 373 Yes DHT-25 624705 4549440 379 Yes DHT-26 624628 4549501 390 Yes DHT-27 624907 4549329 326.42 Yes DHT-28 624509 4549465 421 Yes DHT-29 624741 4549422 363 Yes DHT-30 624568 4549472 407.79 Yes DHT-33 624655 4549505 386 Yes

Exploration drilling is still ongoing outside the resource definition area, and does not form part of this report or the associated resource calculation.



Figure 10-1 Location map of Diamond Drilling at the Tabuaço Project

10.1 Type and Extent Due to the terrain and the extent of vineyard terracing, low impact access was required and thus diamond drilling services have been provided by a number of drilling contractors throughout the duration of the programme.

Companies contracted for drilling at Tabuaço include LNEG (Laboratório Nacional de Energia e Geologia, I.P.), Drillcon, CGS ingenierá and IGM.Rigs were utilised during the project as follows;

• Drillcon rig#1 (ONRAM 1500): on site from 23rd of November 2010 to the 27th August 2011;

• Drillcon rig #2 (DIAMEC 262): on site from the 27th April 2011 to the 8th August 2011;

• LNEG rig #1 (RIESKA): on site on the 20th June 2011;

• CGS drill rig: on site from the 10th August 2011;

• Geoplano rig #1 (ROLATEC): on site from the 1st August 2011;

• Geoplano rig#2 (MUSTANG): on site from the 5th September 2011.



10.2 Procedures All drilling undertaken on the Tabuaço project since 2009 has been supervised by the GeoLog technical team.

SRK ES provided support with a series of procedures for monitoring the quality and production rates of the drilling, as well as geological and geotechnical logging.

SRK ES also provided direct technical support during a series of meetings to improve the quality, percentage recovery and production rate from the drilling contractor.

All drill core was transported by GeoLog personnel from the drill site to a nearby secure storage facility for logging and sampling. Sampling intervals are defined after core logging and semi-quantitative determination of scheelite content by examination under short‐wave UV‐light. Geotechnical logging is completed by the Geologist at the time of completing the geological logging. The core is photographed under artificial lighting, using a camera cradle ensuring each photo is taken under identical settings.

The core is then cut by diamond saw machine. One half of the core is sent for analysis, while the other half is retained in the core boxes for future reference.

The core samples for analysis are packed into sealed cardboard boxes at the storage facility, from where they are collected by a courier operator (TNT) to the OMAC Laboratory in Ireland, or ALS Laboratory in Spain. Samples are analyzed for W and Sn using a metaborate fusion followed by XRF.

A set of standards, duplicates and blanks is inserted by Colt into the sample stream on a regular basis in addition to the laboratory’s own internal QA/QC standards and duplicates. The standards inserted into the sampling stream are certified standards, produced by WCM Minerals of Canada. The Sample Certificates for standards W104, W106 and W108 are shown in appendix I.

All drillholes were surveyed using a differential handheld GPS, with data for Eastings, Northings and RL recorded in UTM 29T, Datum ED50. These were subsequently compared to the detailed topographical map, and the RL’s corrected accordingly.

All drillholes have been subject to downhole surveying, to record variations from the original inclination. Surveys have been recorded at varying intervals, depending on the operator and original inclination of the drillhole and the depth drilled,



10.3 Interpretation and Relevant Results Table 10-2 Table of the best drill intersections at Tabuaço

Hole Inclination From (m) To (m) Grade % WO3

Interval (m) True Width (m)*

DHT-01B vertical 7.1 11.85 0.52 4.75 4.46 19.15 37.95 0.73 18.8 17.66

Including 24.18 27.18 1.14 3 2.82

And Including 29.18 36 0.96 6.82 6.4

DHT-02 Vertical 52.6 66.2 0.93 13.6 12.78 Including

57.95 62.95 1.44 5 4.7 DHT -04 vertical 12.68 13.25 0.93 0.57 0.54

DHT- 05 vertical 16.95 26.65 0.35 9.7 9.12

Including 16.95 19.45 1.25 2.5 2.35

DHT-06 vertical 12.64 17.82 0.34 5.18 4.87

DHT -08 vertical 42.4 54.4 0.6 12 11.28

Including 42.4 47.75 1.09 5.35 5.03

DHT- 09 -45

93.6 115.2 0.54% 21.6 20.3 Including 93.6 96 1.11% 2.4 2.26

And Including 99 104 0.88% 5 4.7

DHT-11A ~55° to N031° 46.55 52.55 0.77% 6 5.64 70.9 72.25 0.62% 1.35 1.27

DHT-12 Vertical 52.2 67.2 0.89% 15 14.09

Including 59.2 66.2 1.64% 7 6.58 DHT-13 ~50° to N030° 69.35 72 0.49% 2.65

92.8 100.45 1.08% 7.65 DHT-14 Vertical 77.3 85.65 1.29% 8.35 7.84

Including 79.8 83.8 1.90% 4 3.76

116.5 125 0.43% 8.5 7.99 DHT-15 ~60° to N055° 108.35 122.55 0.89% 14.2 13.95

Including 109.35 116.5 1.42% 7.15 7.02

DHT-16 Vertical 116.8 122.4 0.57% 5.6 5.26 DHT-19 ~45 to N30° 78.1 85.1 0.95% 7 6.29

90.8 98.8 0.38% 8 7.18 DHT-20 ~45° to N042° 96.5 103.4 0.78% 6.9 6.25 DHT-23 ~45° to N030° 24.8 28.1 1.33% 3.3 2.96

33.7 44.1 0.51% 10.4 9.34 DHT-25 ~65° to 210° 53.78 64.62 0.95% 10.84 10.75

Including 57.7 61.78 1.38% 4.08 4.04

DHT-26 Vertical 14.1 27.5 0.76% 13.4 12.59 Including

14.1 17.65 1.37% 3.55 3.34 33.1 40.7 0.47% 7.6 7.14

44.45 54.45 0.41% 10 9.4 DHT-29 Vertical 46.05 56.25 0.53% 10.2 9.58 DHT-30 ~55° to N030° 49.8 52.05 0.78% 2.25 2.16 DHT-33 ~50° to 330° 6.5 10.25 0.64% 3.75 2.49

18.2 24.4 0.84% 6.2 4.11 Including

19.2 22.2 1.16% 3 1.99



11 Sample Preparation, Analysis and Security Samples were first split and shipped to one of two assaying laboratories, OMAC Laboratory, Ireland and ALS Laboratory, Spain.

11.1 Sample Preparation At the Stewart Group’s OMAC laboratory in Ireland, samples were prepared using the following process:

• P1 – prepare samples, homogenise • P5 - Dry, jaw crush to <2mm, riffle 1kg and pulverize to 100µ • P6- Dry, jaw crush to <2mm, riffle 500g and pulverize to 100µ

At the ALS Laboratory in Spain, samples were prepared using the following process:

• WEI-21 – Received sample weight • LOG-22 – Sample login, record w/o barcode • CRU-31 – Fine crushing to better than 70% <2mm. Includes CRU-QC crushing

efficiency test • PUL-32 Up to 1kg sample split is pulverised to better than 85% 75 µ. Includes PUL_QC

pulverising test • LOG-24 – Pulp Login, record w/o barcode

11.2 Analyses

Two types of laboratory sample analysis were used for the Tabuaço project samples.

ICP-MS – Inductively Coupled Plasma Mass Spectrometry or ICP-MS is a highly sensitive and capable analytical technique used for elemental determinations. An ICP-MS combines a high-temperature ICP (Inductively Coupled Plasma) source with a mass spectrometer. The ICP source converts the atoms of the elements in the sample to ions. These ions are then separated and detected by the mass spectrometer. This method can determine the value of a range of metals and several non-metals at concentrations below one part per trillion. ICP-MS has many advantages over other elemental analysis techniques, including being a fast, multi-elemental technique, and generally has the productivity of ICP-AES, but much lower detection capabilities.

XRF: X-ray Fluorescence analysis is fast, non destructive analytical technique with high accuracy and reproducibility. The analysis of major and trace elements in geological materials by XRF is made possible by the behaviour of atoms when they interact with X-radiation. An XRF spectrometer works because if a sample is illuminated by an intense X-ray beam, known as the incident beam, some of the energy is scattered, but some is also absorbed within the sample in a manner that depends on its chemistry. The incident X-ray beam is typically produced from a Rh target, although W, Mo, Cr and others can also be used, depending on the application. When this primary X-ray beam illuminates the sample, it is said to be excited. The excited sample in turn emits X-rays along a spectrum of wavelengths characteristic of the types of atoms present in the sample Analysis of trace concentrations can be prone to disruption by trace contaminants in laboratory equipment and reagents used.

Sample methods utilized during Omac analysis were as follows:

http://en.wikipedia.org/wiki/Metals�

http://en.wikipedia.org/wiki/Non-metals�



AR/ES – ICP-AES Aqua Regia MA/ES – ICP-AES Multi Acid Digestion BF ES/MS – Lithium Borate Fusion XRF, Majors and Traces Sample methods utilized during ALS analysis were as follows:

ME-XRF 10 - Fusion XRF – Ore Grade ME-MS61 – 48 element, four acid ICP-MS

11.3 Security GeoLog was responsible for managing the security of the whole sampling process, with the Project Geologists supervising all selection of sampling intervals, the cutting process and packing ready for shipment to OMAC and ALS laboratories in sealed packages.

Colt use TNT couriers to provide a secure logistical train, with sample batches tracked from dispatch from the Colt core sampling facility at Távora to arrival and signed for receipt at OMAC or ALS

Samples are recorded using Colt’s unique ID numbers, and a separate ID number used by the supplied laboratory submission sheet.

Assay certificates are directly issued by the laboratories to Colt Management, and to SRK ES.

11.4 Laboratories

The original laboratory used for this programme was the Stewart Group’s OMAC laboratory in Loughrea, Ireland.

OMAC Laboratories Limited Athenry Road, Loughrea, Ireland Tel: +353 91 841 741

ALS in Seville was utilised as a second laboratory to assist with QA/QC and to accommodate the large number of samples when drilling proceeded more quickly.

ALS Seville Minerals Laboratory Calle Camino Mozarabe 15, 41900 Camas, Sevilla, Spain Tel: +34 955 981 491

Both Laboratories are certified and considered to operate to internationally acceptable standards.



11.5 Results and QC Procedures OMAC Internal Quality Controls are published as:

“Barren material is used between batches to clean sample preparation equipment”

“A barren wash is also carried out for every batch and wash material is retained for subsequent check analysis”.

“A second split of <2mm material is milled and analysed for every 50th sample”.

“High and low-level samples are segregated with preparation and digestion done in separate areas”.

“Stewart Group’s quality control data is always included in the analysis report”.

OMAC are further subject to independent bi-annual and annual proficiency testing programmes by Geostats Australia, PTP-MAL Canada and also Natural Resource’s Canada’s “Canadian Certified Reference Materials Project” (CCRMP) proficiency testing scheme.

ALS Laboratory internal quality controls are based on internationally recognized (EN, ISO, US, EPA, ASTM, CEM, NIOSH, AOAC) standards and all ALS analytical procedures are fully validated and accredited to EN ISO/IEC 17025:2005. Under this accreditation, a systematic process of quality control is established including: regular calibration of instruments and independent verification of calibration; regular measurements of blank, laboratory control and laboratory duplicate samples.

Laboratory results were issued by both OMAC and ALS laboratories to the client in form of pdf certificates, with accompanying excel or .csv files for insertion into the database. Copies of these datasets were forwarded directly onto SRK ES for QAQC analysis and independent verification of the excel files against the laboratory certificates.

Results for tungsten were delivered by OMAC and ALS laboratories from the XRF analysis and provided to the Colt Resources as W% assays.

The W% results have been converted to WO3 % using the conversion factor of 1.2611

11.6 Colt QA/QC Colt Resources have inserted Certified Reference Materials (CRM’s) as Field Standards (W104, W106 and W108), as well as duplicates and blanks into the sampling stream on a regular basis.

Copies of the CRM Certificates are presented in Appendix I.

SRK ES have conducted ongoing QAQC reviews on the returned laboratory assay data. This involves checking the standards, blanks and duplicates inserted by Colt Resources into the



sampling stream, and checking the reported standards, blanks and duplicates inserted into the assaying programme by the laboratory.

The XRF data supplied by OMAC and ALS to SRK ES has passed the QAQC checking process and was therefore used for the resource estimation.

11.7 Certified Reference Materials - Field Standards - XRF

Field standard W104 (0.202% tungsten) was tested 9 times during the Colt drilling programme and 6, or 66.6% returned assays within the acceptable 2 standard deviation limit using XRF analysis. The 3 assays that fall outside of the 2 standard deviation cut-offs are marginal. This may indicate a lesser accuracy in the XRF at lower values in the ALS analysis, although this is marginal.

Figure 11-1 Field Standard W104, XRF QAQC

Field standard W106 (2.16% tungsten) was tested 9 times during the Colt Resources drilling programme and 9, or 100% of the returned assays fell within the acceptable 2 standard deviation limit using XRF analysis.




Field standard W108 (0.72% tungsten) was tested 12 times during the Colt Resources drilling programme and 12, or 100% returned assays within the acceptable 2 standard deviation limit using XRF analysis.




11.8 Field Blanks – XRF

Analysis of the field blanks tested by XRF showed some slight deviations from the expected result in 11 out of 33 blanks assayed (33%). These variations are only slight, and as this occurs in both the OMAC and ALS batches, are either explained by slight contaminations from bordering high grade samples rather than being an analytical machine error, or that some of the field blanks used are not totally barren.

Figure 11-4 Field Blanks - XRF QAQC

11.9 Certified Reference Materials - Field Standards - ICP

The ICP-AES data shown below in Figure 11-5, Figure 11-6 and Figure 11-7, failed the QAQC process, showing consistent assays returns below the expected value of standards above 0.2% W. This pattern did not apply to samples below 0.2% W, which have passed the QAQC process.

This failure is explained by issues with the acid digest process, where only a certain amount of W is actually digested and put into solution for the analysis. This is indicated by the disclaimer in the OMAC Laboratories price list for tungsten assays in ICP-AES/MS Aqua Regia.

Field standard W104 (0.202% tungsten) had only 40% of the returned assays within the acceptable 2 standard deviation limit.

The above QAQC results on the submitted field standards and blanks indicate that the XRF technique is a more suitable method for analysing for higher grades of tungsten, especially those above 0.2%.



Figure 11-5 Field Standard W104, ICP-AES QAQC

Field standard W106 (2.16% tungsten) had none, or 0% of the returned assays within the acceptable 2 standard deviation limit.


Field standard W108 (0.72% tungsten) had only 10% of the returned assays within the acceptable 2 standard deviation limit.




The above QAQC results for ICP-AES indicate that the ICP method is not capable of complete digestion, and therefore detecting tungsten above 0.2%. ICP-AES is therefore deemed not to be suitable for high grade tungsten assays at Tabuaço and the ICP-AES results have not been used in compiling the resource estimate described in the Mineral Resource Estimate section.

11.10 Laboratory QA/QC Review

Both OMAC and ALS laboratories inserted their own quality control standards into the assay stream, in the form of repetition, or repeat, analysis and the use of blanks and standards.

OMAC used a one in ten repeat frequency for repeats, with two in-house standards used in each batch and two blanks inserted into each batch.

ALS used a more random insertion of duplicates, roughly every 20 samples, with blanks and in-house standards also part of the testing.

SRK ES has run QA/QC analysis on the provided laboratory standard assay results. These refer to supplied laboratory inserts provided by OMAC and ALS laboratories.



Figure 11-8 Laboratory Standards QA/QC - OMAC XRF

Figure 11-9 Laboratory Standards QA/QC - ALS XRF



Figure 11-10 OMAC and ALS Laboratory Duplicates QA/QC – XRF

Figure 11-11 OMAC and ALS Laboratory Blanks QA/QC – XRF

11.11 Opinion on Adequacy Colt Resource’s use of Stewart Group’s OMAC laboratory and ALS Seville laboratory for their ICP-MS and XRF assaying meets with accepted industry standards for laboratory certification.



The XRF analysis methods utilized for detecting tungsten (W%) at Tabuaço is deemed to be appropriate for the grade present. The ICP-AES method is appropriate for detecting smaller grades and should be used if a cut off grade of 0.2% or below is used. ICP-AES is not suitable or reliable for tungsten values above 0.2% due to issues with acid digestion of the sample during preparation.

The frequency and use of the laboratory repeats, blanks and standards can be used in their own right, or together with the addition of the Colt introduced repeats, blanks and standards to give an increased population for QAQC review on the laboratory instrumentation, although differing sample preparation techniques and sample states need to be taken into account.

The insertions made by Colt staff of repeats, blanks and standards give an additional check on the laboratory preparation and instrumentation quality. These insertions remain outside the laboratory control, although certain items will remain obvious in the sample stream as QAQC insertions (eg. CRM’s) this is acceptable practice, as the laboratory are not made aware of the actual values of the standard being inserted into the sample stream.

SRK ES found no reason to reject any of the XRF assay results from the returned dataset, based on statistical analysis and QAQC. SRK ES is happy that the frequency of repeats, blanks and standards used is sufficient to give an adequate laboratory quality control check.



12 Data Verification SRK was appointed independent QP for the Tabuaço Project in February of 2011, and since then has been closely involved with the establishment of sampling and QA/QC protocols. In addition numerous visits by a wide range of personnel have been made to the project to supervise the ongoing procedures and to verify the adherence to protocols.

During a number of these visits SRK ES personnel witnessed the sampling procedures employed as well as the sealing and despatch of these samples.

All assay certificates were issued directly by the laboratories to SRK ES in Cardiff for verification and assimilation into an independent database.

Thus SRK ES is confident that the values returned from the laboratories are an accurate reflection of those in the deposit and that there has been no opportunity for these results to be tampered with. As such SRK ES did not consider it worthwhile to collect further verification samples from the Tabuaço Project.

12.1 Procedures A procedure for data logging and management was put in place by SRK ES for this project.

SRK ES has then taken the data files and placed them into a single database, which is hosted as a read-only controlled database and contains all Colt geological, geotechnical, specific gravity, sampling intervals, and assay return data.

This database has gone through multiple phases of data validation and verification checks using a number of mining software packages, including Gemcon, Micromine and LeapFrog, as well as manual checks following SRK ES QAQC.

All drilling and sampling data was digitally uploaded onto the SRK ES Sharepoint FTP site by Colt project geologists upon completion of each drillhole as individual excel files. The files were split into categories for drillhole surveying; core boxes; core photography; daily drill monitoring; drillers' logs; geology data; geotechnical data; sampling data and specific gravity data.

In addition, copies of the sampling certificate PDFs held by SRK ES were placed on the FTP site as a record.

These data files were then collated and combined by SRK ES into a single, independently verified database. This database was held in a read-only format, with write access limited to SRK ES.

The finalized database was uploaded into mining software and validation checks were run against the data to check accuracy of the data ranges, correct height and depths.



12.2 Limitations SRK ES is not aware of any limitations to the data collected and is happy for this data to be utilised in the estimation of a Mineral Resource.

12.3 Data Adequacy SRK ES is confident that the data utilised in this report, specifically in the Mineral Resource estimation, is of a professionally acceptable standard and quality and that it is adequate for the purposes used herein.

Geological Data was collected from a series of 32 vertical and inclined drillholes across the mapped and predicted skarn horizon in the Tabuaço project exploration licence area. Drilling was completed on a hole spacing of approximately 50m.

Collars were surveyed using the Project Geologist’s handheld differential GPS devices however the availability of detailed topography adds confidence to the collar elevation data.

All collar positions were surveyed in UTM 29T, Datum ED50.

Core logging was completed in sufficient detail to be able to separate and determine significant changes in alteration, lithology, structure, mineralization, alteration and geotechnical features when entered into a modelling package.

Total core recovery within the skarn zones at the Tabuaço project averaged nearly 91%.

SRK ES is comfortable that the methods and processes used to sample the core and the processes used to record the geological logs meet the required quality and quantity parameters to complete a geological model of Tabuaço.

The assay data supplied is from reputable, certified laboratories and has been subject to QAQC analysis and review.



13 Mineral Processing and Metallurgical Testing Two scoping-level metallurgical programmes have been conducted on test composites from the Tabuaço tungsten deposit. The first study was conducted by Inspectorate Exploration and Mining Services Ltd (Inspectorate), under the direction of Bolu Consulting Engineering on an outcrop sample from Tabuaço. The second scoping-level study has also been conducted by Inspectorate under the direction of SRK on drill core reject material from the Tabuaço property. The results of these metallurgical test programmes are presented in this section.

13.1 Metallurgical Programme on Tabuaço Outcrop The results of the scoping-level metallurgical programme conducted on Tabuaço outcrop material is presented in the report, “Scoping Metallurgical Testing for the Recovery of Scheelite on Samples From the Tabuaço Property of Colt Resources”, Inspectorate, February 22, 2011. Head analyses on the test composite averaged 0.64% WO3 with total sulphur less that 0.1%. Main elements of interest are presented in Table 13-1

Table 13-1 Head Analyses for the Tabuaço Outcrop Sample

Mineralogical investigations indicated a predominant presence of silicate gangue minerals with fluorite present as a subordinate constituent. This observation was confirmed by the fluorine assay presented in Table 13-1, which corresponds to 3.4% fluorite (CaF2). The microanalytical scan showed no fluorine minerals other than fluorite. Accessory minerals included apatite, scheelite and calcite, with traces of sulphides and cassiterite.

The scope of metallurgical testing conducted on the outcrop composited included:

• Heavy liquid separation studies on individual size fractions • Gravity release study with a laboratory Wilfley shaking table on separate size fractions • Gravity concentration tests • Scheelite flotation tests

13.1.1 Heavy Liquid Separation Study The heavy liquid separation (HLS) studies were conducted on size fractions over the range from -12.7mm + 0.84 mm and subjected to separation with heavy liquid specific gravities (SG) of 2.96, 2.8 and 2.6 g/cm3. This work was conducted to gain a preliminary understanding of the gravity concentration potential of the material, and demonstrated that at the size range tested 92.3% of the scheelite is present in 65% of the HLS feed mass in the + 2.96 SG sink product.



13.1.2 Gravity Release Study In order to assess liberation and potential upgrading characteristics of scheelite in various size ranges, release analysis was conducted on 23kg of Outcrop composite sample using a Wilfley shaking table. The test sample was stage-crushed to -595 microns and screened at 420; 297; 210; 150; 105 and 75 microns to produce seven fractions for laboratory table tests. The results of these tests are presented in Table 13-2, and demonstrate that very high grade concentrates were achieved in the -105 micron size ranges, while the -120 + 105 micron size range should be upgradable to marketable concentrate grades with further stages of upgrading. The coarser size ranges would most likely require regrinding to improve concentrate grade and recovery. This work indicated that future gravity testing should target 20-25% rougher mass pulls followed by multiple upgrading stages. Low grade intermediate products should be subjected to mineralogical investigations to determine liberation and the necessary regrind requirements for optimum gravity recoveries.

Table 13-2 Gravity Study on Individual Size Fractions from the Tabuaço Outcrop Sample



13.1.3 Gravity Concentration Tests Gravity table tests were performed using two size ranges of the Outcrop composite sample: -500 +150 micron and -150 micron. Each fraction was separately dry fed to the laboratory Wilfley shaking table, and metallurgical results are provided in Table 13-3. These results indicate that approximately 75% of the tungsten can be recovered at ~25% mass pull into a gravity concentrate assaying ~2.5% WO3 . The tungsten recoveries and concentrate assays were ~87% and 2.2% WO3, respectively, for the -500 +150 micron size range, and ~67% and 2.9% WO3, respectively, for the -150 micron size range. These are encouraging results, and upgrading to marketable concentrates is likely, as demonstrated in the gravity release study presented in Table 13-2.



Table 13-3 Gravity Concentration Test on -500+150 micron and -150micron Size Fractions from the Tabuaço Outcrop Sample

13.1.4 Scheelite Flotation Tests Scoping-level flotation tests were conducted on the Outcrop sample ground to a target grind of P80 150 microns. A total of three tests were conducted under a variety of flotation conditions using soda ash, sodium hydroxide and sodium silicate for slurry conditioning and fatty acids as the scheelite collector and methyl isobutyl carbonal (MIBC) as the frother. The results of these tests are summarized in Table 13-4. The best test (F2) resulted in 65.8% tungsten recovery into a rougher flotation concentrate containing 7.17 % WO3.

Table 13-4 Summary of Scheelite Rougher Flotation Tests on Tabuaço Outcrop Composite

Test Wt% WO3 % WO3 Dist. %

F1 4.7 6.47 43.7 F2 6.6 7.17 65.8 F3 17.5 2.47 58.9

Source: Inspectorate Report - February, 2011



13.2 Metallurgical Programme on Tabuaço Drill Core Reject A subsequent metallurgical program was conducted at Inspectorate on a test composite formulated from drill core reject material from selected intervals from fourteen drill holes. Head analyses on the test composite averaged 0.71% WO3, 2.5% F and 1.84% P2O5. Total sulfur was 0.1%. Main elements of interest are presented in Table 13-5

Table 13-5 Head Analyses for Tabuaço Drill Core Reject Test Composite

Elements Units Head 2011 Dril Core Comp Method

WO3 % 0.713 W-3A-LL-ICP

WO3 % 0.710 NA-XFW-CON

Sn ppm 588.3 Sn-4A-LL-ICP

F- µg/g 25713 E329S

S % 0.1 Leco

Al2O3 % 15.22 WR

BaO % 0.03 WR

CaO % 25.65 WR

Cr2O3 % 0.04 WR

LOI % 3.66 WR

Fe2O3 % 3.98 WR

K2O % 1.14 WR

MgO % 2.25 WR

MnO % 0.1 WR

Na2O % 1.48 WR

P2O5 % 1.84 WR

SiO2 % 43.57 WR

TiO2 % 0.41 WR

Total % 99.36 WR

The test program was designed to more extensively evaluate scheelite flotation and parameters required to achieve acceptable flotation recoveries and concentrate grades. This was followed by a bulk gravity/flotation test in which three separate sized fractions over the range from 300 micons to 74 microns were subjected to gravity concentration and the minus 74 micron fraction was subjected to scheelite flotation.



13.2.1 Scheelite Flotation Studies The most likely process flowsheet to recover scheelite from the Tabuaço ore will include a combination of gravity concentration and flotation, in which the coarsely liberated scheelite will be recovered by gravity concentration and the finer grained scheelite will be recovered by flotation. Scheelite flotation is typically conducted at an alkaline pH, using soda ash, sodium hydroxide and sodium silicate as flotation modifiers and fatty acids (oleic acid and linoleic acid) as collectors. The extent to which scheelite can be concentrated by flotation is highly dependent on the mineralogy of the ore, and more specifically the extent to which fluorite, calcite and apatite occur in the ore, as these minerals have a strong tendency to float with scheelite.

A series of flotation tests were conducted by Inspectorate, under SRK’s supervision, to define the flotation process parameters required to effectively recover scheelite into a flotation concentrate. This work included an initial evaluation of process parameters previously used by Inspectorate during the earlier studies on the Outcrop composite, followed by a systematic evaluation of key flotation parameters, such:

• Collector dosage • Sodium silicate dosage • Grind size

Flotation tests on 1,000 gram test charges were run to evaluate the effect of fatty acid collector (blend of 50% oleic acid and 44% linoleic acid) levels over the range of 100 – 600 g/t. Test conditions held constant included:

Scheelite Flotation Versus Collector Dosage

• Grind: P80 150 microns • Soda Ash: 1.5 kg/t • Sodium Silicate: 2.5 kg/t • pH: 10.5

The results of the collector dosage test series are summarized in Table 13-6 Tabuaço Scheelite Flotation Versus Collector Dosage. As the collector addition was increased from 100 g/t to 600 g/t, the grade of the first cleaner concentrate decreased from 12.3% WO3 to 4.86% WO3, while overall tungsten recovery into the first cleaner concentrate remained fairly constant at about 60%. On this basis, a collector dosage of 100 g/t was used for subsequent flotation studies.



Table 13-6 Tabuaço Scheelite Flotation Versus Collector Dosage

Collector Calc Head Rougher Conc Cleaner -1 Conc

Test g/t WO3 % WO3

% WO3 Dist WO3

% WO3 Dist

FLT-5 100 0.71 8.2 64.7 12.30 59.9 FLT-6 200 0.73 7.46 76.3 10.00 59.2 FLT-7 400 0.68 4.83 75.9 6.48 52.6 FLT-8 600 0.68 3.45 92.6 4.86 59.9

Conditions: Grind P80 150 micron

Na-silicate 2.5 kg/t

In an effort to achieve a higher level of scheelite flotation selectivity, a series of tests were run with sodium silicate addition rates over the range from 2.5 to 4.5 kg/t. The results of these tests are summarized in

Scheelite Flotation Versus Sodium Silicate Dosage

Table 13-7 and showed that as sodium silicate levels increased, the grade of the first cleaner concentrate increased from 12.3% WO3 to 24.4% WO3, but tungsten recoveries declined dramatically from 59.9% to 3.4%.

Table 13-7 Tabuaço Scheelite Flotation Versus Sodium Silicate Dosage

Na-Silicate Calc Head Rougher Conc Cleaner -1 Conc

Test g/t WO3 % WO3

% WO3 Dist WO3

% WO3 Dist

FLT-5 2500 0.71 8.2 64.7 12.30 59.9 FLT-9 3500 0.73 10.16 51.6 16.28 47.9 FLT-10 4500 0.68 3.68 5.4 24.36 3.4

Conditions: Grind P80 150 micron

Collector 100 g/t

A series of flotation tests were run to evaluate the effect of grind over the range from P80 150 to P80 75 microns. The results of these tests are summarized in

Scheelite Flotation Versus Grind Size

Table 13-8 and show that tungsten recovery increased from 47.9% at a P80 150 micron grind to 71.1% at a P80 75 micron grind. First cleaner concentrate grades were fairly constant at about 16-18% WO3



Table 13-8 Tabuaço Scheelite Flotation Versus Grind Size

Grind Calc Head Rougher Conc Cleaner -1 Conc

Test P80,

Micron WO3 % WO3 % WO3 Dist WO3 % WO3 Dist FLT-9 150 0.75 10.16 51.6 16.28 47.9 FLT-11 100 0.75 12.19 57.8 17.80 52.7 FLT-12 75 0.78 11.49 75.4 15.81 71.1

13.2.2 Bulk Gravity/Flotation Study

A bulk gravity/flotation test was conducted on a 20kg ore sample, stage-crushed to -48 mesh. The test composite was then screened into four size fractions: -48m+65m, -65m+150m, -150m+200m. Table 13-9provides a summary of tungsten grade and distribution in each of the size fractions. As can be seen, the tungsten values are highly concentrated in the -200m fraction, which represents 54% of the mass and accounts for 69% of the tungsten in the test composite. It should be pointed out that the tungsten distribution into to the fine fractions in this drill core reject test composite may be significantly higher that may be experience in an actual milling operation. The first three size fractions were subjected to gravity concentration on a laboratory Wilfley shaking table followed by upgrading of the table concentrate on a Mozley concentrating table.

Table 13-9 Bulk Composite Tungsten Grades and Distributions by Size

Size Fraction Weight Assay, % Distribution Mesh Microns (g) (%) WO3 WO3 -48+65m -297+210 3474.9 17.4 0.42 10.4

-65+150m -210+105 4188.8 20.9 0.49 14.6 -150+200m -105+75 1508.4 7.5 0.56 6.0

-200m -75 10827.9 54.1 0.90 69.0 Total 20000.0 100.0 0.71 100.0

Measured 0.71

13.2.3 Gravity Concentration Tests

The results of the gravity concentration tests on the -48m+65m, -65m+150m and -150m+200m size fractions are summarized in Table 13-10Through Table 13-12.



Table 13-10 Gravity Concentration Results on -48+65 mesh Size Fraction

Product Weight Assay,% Distribution,% (g) (%) WO3 WO3

Mozley Conc 40.5 10.6 5.23 37.7 Mozley Middlings 184.6 48.5 1.43 47.0 Mozley Tailings 155.8 40.9 0.55 15.3 Wilfley Conc 380.91 100.0 1.47 100.0

Wilfley Table Performance

Conc 380.9 11.0 1.47 38.2 Middling 1 84.6 2.4 2.22 12.8 Middling 2 818.3 23.6 0.25 13.9 Middling 3 1426.4 41.0 0.26 25.2 Tailings 764.6 22.0 0.19 9.8

Total -48+65mesh fraction 3474.89 100.0 0.42 100.0

Table 13-11 Summary of Gravity Concentrtion Tests on -65m + 150m Size Fraction

Product Weight Assay,% Distribution,% (g) (%) WO3 WO3

Mozley Conc 20.2 14.2 17.40 73.6 Mozley Middlings 80.9 56.7 1.34 22.7 Mozley Tailings 41.6 29.1 0.43 3.7 Table Conc 142.70 100.0 3.35 100.0


Conc 142.7 3.4 3.35 23.2 Middling 1 341.5 8.2 2.98 49.5 Middling 2 1128.1 26.9 0.19 10.4 Middling 3 358.6 8.6 0.09 1.6 Tailings 2217.9 52.9 0.14 15.3

Total-65+150mesh fraction 4188.76 100.0 0.49 100.0



Table 13-12 Summary of Gravity Tests on -150m + 200m Size Fraction

Product Weight Assay,% Distribution,% Id (g) (%) WO3 WO3

Mozley Cl Conc 8.1 3.6 48.95 83.7 Mozley Cl Middlings 1 6.5 2.9 6.86 9.4 Mozley Cl Middlings 2 27.4 12.1 0.33 1.9 Mozley Cl Tailings 34.0 15.0 0.22 1.6 Mozley Tailings 150.9 66.5 0.11 3.5 Wilfley Conc 226.87 100.0 2.09 100.0


Conc 226.9 15.0 2.09 55.7 Middling 1 115.4 7.6 1.87 25.4 Middling 2 376.6 25.0 0.20 8.9 Middling 3 38.2 2.5 0.13 0.6 Tailings 751.4 49.8 0.11 9.5 Total -150+200mesh fraction 1508.42 100.0 0.56 100.0

These gravity concentration tests demonstrated that scheelite could be effectively recovered into a gravity concentrate. In the -48m+65m fraction, the upgraded Mozley concentrate graded 5.23% WO3, in the -65m+150m fraction the Mozely concentrate graded 17.4% WO3 and in the -150m+200m fraction the Mozely concentrate graded 48.9% WO3. These tests indicate that scheelite can be effectively recovered in the coarse size fractions but that multiple stages of upgrading and regrinding will likely be required to produce a marketable grade gravity concentracte (>65% WO3).

The -200m fraction was subjected to scheelite flotation using the optimized flotation conditions developed earlier in the study. The results of this test are summarized in

Scheelite Flotation

Table 13-13, which shows that 78% of the contained tungsten was recovered into a first cleaner flotation concentrate containing 13.5% WO3. At 19.9% fluorine, the major contaminant in the flotation concentrate is fluorite. Even though 67% of the fluorite was rejected into the combined flotation tailings, due to the high concentration of fluorine in the ore (~ 3%), in order to produce higher grade scheelite flotation concentrates, further work will need to done to develop a flotation protocol that can be more selective against fluorite



Table 13-13 Summary of Scheelite Flotation Test on the Bulk Composite -200m Fraction

Product Weight Assay Distribution WO3 F P2O5 WO3 F P2O5 (g) (%) (%) (%) (%) (%) (%) (%)

2nd Cleaner Concentrate 41.9 4.1

15.14

21.01

0.73

72.76

29.49 1.26

2nd Cleaner Tailings 8.3 0.8 5.52

14.24

3.86 5.27 3.97 1.32

1st Cleaner Tailings 42.2 4.2 1.04 6.04

3.66 5.04 8.54 6.36

Flotation Tailings 921.5 90.9 0.16 1.88

2.40

16.93

58.00

91.06

1013.8 100.0

Combined Product Weight Assay Distribution

WO3 F P2O5 WO3 F P2O5 (g) (%) (%) (%) (%) (%) (%) (%)

2nd Cleaner Concentrate 41.9 4.1 15.14 21.01 0.73 72.76 29.49 1.26 1st Cleaner concentrate 50.2 4.9 13.54 19.89 1.25 78.03 33.46 2.58 Total Ro Concentrate 92.3 9.1 7.83 13.56 2.35 83.07 42.00 8.94 Flotation Tailings 921.5 90.9 0.16 1.88 2.40 16.93 58.00 91.06

Calculated Feed 1013.8

100.0 0.86 2.94 2.40

100.00

100.00

100.00 Measured Feed 0.90 3.24 2.67

13.3 Recovery As shown in Table 13-14, an overall tungsten recovery of about 75% is estimated based on the results of this work. This recovery projection assumes the following:

• 90% recovery of the rougher gravity concentrates during subsequent upgrading and regrinding to marketable gravity concentrate grade.

• 95% recovery of tungsten in the first cleaner concentrate during subsequent upgrading to market grade concentrates.

• 50% recovery of tungsten values in the gravity middling and tailing products advanced to flotation.

• 50% recovery of tungsten values contained in recycled cleaner tailings

Additional work will be required to develop to further develop the flotation process required to more selectively float the contained scheelite from the major contaminant minerals fluorite, apatite and calcite.



Table 13-14 Material Balance for Bulk Gravity/Flotation Test and Estimated Tungsten Recovery

Distribution Adjustment Adjusted Distribution

Grams Wt% WO3 % WO3 Factor (1) WO3

Table Concentrate 48 x 65 466 2.33 1.64 5.5

65 x 150 484 2.42 3.09 10.8 150 x 200 342 1.71 2.02 5.0 Total Table

Concentrate

6.46 2.28 21.4 0.90 19.2

Table Mids and Tails 48 x 65 3009 15.05 0.296 6.5

65 x 150 3705 18.52 0.150 4.0 150 x 200 1166 5.83 0.140 1.2 Total Mids and Tails

39.40 0.204 11.7 0.50 5.8

Flotation (-200m)

Cleaner-2 Conc 444 2.22 15.14 48.7 0.95 46.2 Cleaner-2 Tailing 87 0.43 5.52 3.5 0.50 1.7 Cleaner-1 tTailing 455 2.27 1.04 3.4 0.50 1.7 Rougher Tailing 9843 49.21 0.16 11.4

Flotation Feed

54.14 0.854

Total 20,000 100.00 0.690 81.7

74.7

1. Adjustment Factor Assumptions: -90% table concentrate recovery during gravity upgrading

-95% flotation concentrate recovery during upgrading -50% recovery of gravity midds and tails advanced to flotation

-50% recovery from recycled cleaner tailings

13.4 Processing

Although considerable work remains to define the process flowsheet and process parameters for the Tabuaço scheelite ore, based on the results of studies to-date, it is likely that the process flowsheet will include a combination of gravity concentration and flotation technologies to produce a high grade tungsten gravity concentrate and a lower grade flotation concentrate that would be feed stock to an ammonium paratungstate (APT) plant. A likely process flowsheet would include primary and secondary crushing followed by grinding in a rod mill/ball mill circuit operated in closed circuit with both cyclones and multi-deck screens. Screen oversize products would be advanced to gravity concentration to recover tungsten from closely sized size fractions followed by regrinding and multiple stages of gravity upgrading. The fine size fraction (-200 mesh), along with the reground gravity tailings would be advanced to scheelite flotation circuit for recovery of a lower grade flotation concentration that would be feed-stock to an APT plant.



14 Mineral Resource Estimate

14.1 Introduction

The Mineral Resource model presented here represents a resource estimate for the Tabuaço project area (the Project). The resource estimate was completed by Dr Lucy Roberts, a Senior Consultant (Resource Geology), with SRK (UK) Limited (SRK), with input provided by Tracey Laight, Senior Consultant (Resource Geology). Both Dr Roberts and Ms Laight are considered Qualified Persons as defined in National Instrument 43-101. The effective date of this resource estimate is 21 December 2011.

This section describes the work undertaken by SRK and summarizes the key assumptions and parameters used to prepare the revised mineral resource models.

The Mineral Resources presented here are reported in accordance with Canadian Securities Administrators’ National Instrument 43-101 and have been estimated in conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines. Mineral Resources are not Mineral Reserves and have not demonstrated economic viability. There is no certainty that all or any part of the Mineral Resource will be converted into Mineral Reserves. Mineral Reserves can only be estimated as a result of a technical-economic evaluation as part of a preliminary feasibility study or a feasibility study of a mineral project. Accordingly, at the present level of development there are no Mineral Reserves at the Tabuaço project.

14.2 Database Construction and Validation

Raw data have been compiled by SRK ES personnel and provided to SRK as Microsoft Excel tables. Separate tables were compiled for collar, downhole survey, assay, lithological logging, structural geology, and alteration and mineralisation occurrence. In addition, density data was also compiled in an Excel table. Colt supplied 3D wireframes which SRK used as a guide to their own interpretation and 3D model. SRK received data collected until October 2011 and imported it into the GEMS mining software package. The construction of a relational database allows for rapid checking and validation of interval data. The database also allows checks for sample duplication and sample overlaps to be carried out.

14.3 Geological Interpretation and Domaining

Two zones of tungsten bearing skarn mineralisation were modelled, using WO3 grades as a basis for wireframing. SRK also used the 3D wireframes and strings provided by Colt to guide the wireframing process. Prior to geological modelling, a series of cross sections were defined perpendicular to the strike direction of the mineralised zones within the Project. Modelling was carried out on these cross sections at varying intervals dependant on drill spacing.

An approximate grade cut off of 0.1 % WO3 was used to define the mineralisation wireframes, in conjunction with lithological logging and Colt’s interpretation. After completion of the cross sectional modelling, the interpretations were tied together to create a 3D wireframe to be used for constraining the final resource estimate.



A 3D view of the modelled skarn units are shown in Figure 14-7 which shows, the deposit modelled as two separate units, namely the Upper Skarn (light blue) and Lower Skarn (green) units, based on the WO3 grade and Colt’s initial interpretation. A fault which cuts across the modelled unit has also been modelled (dark blue). A typical cross section through the modelled units is given in Figure 14-1

Figure 14-1 Typical cross section through the modelled units

14.4 Density Analysis

A total of 284 Specific gravity (SG), or density, measurements were taken during the course of the Colt Resources 2011 drilling campaign. The table below illustrates the relationship between lithology and SG

Table 14-1 Average SG’s by lithology, Tabuaço Project

Lithology Average SG APL- Aplite 2.64

BIX-Biotite Schist 2.83 BLS-Black/Dark grey schists, fine grained 2.80

CRB- Carbonates, calcschists 2.76 CSR- Calcsilicate, poorly developed skarn 2.87

GRN- Granitic 2.60 SKL- Skarn L-type 3.06 SKM- Skarn M-type 3.15

KM (no sch) 3.07 SKN- Skarn indifferentiated 2.97



14.5 Statistical Analyses

The basic population statistics of the sample assays for each of the mineralized areas within the project area are summarised below. The statistics are based on composited assay values within the wireframes described previously; the data were composited to 1 m in length. The short composites were checked to ensure no bias was introduced during the compositing methodology, and to see whether short composites could be included. As no bias was present, the short composites were retained for estimation.



Table 14-2The descriptive statistics for the two modelled zones are presented in Table 14-1 and Table 14-2 and the grade histograms in Figure 14-1 and Figure 14-2. The raw data histograms are positively skewed, and do not display a normal histogram. When the natural logs of the data are taken, the distributions move towards log-normality, but they are not strictly log-normal. The distribution of the log data is negatively skewed. The raw data histogram displays a bi-modal population, which may be due to low grade or waste zones being incorporated into the wireframe. At the current time, the data density is not sufficient to be able to model these areas independently



Table 14-2: Descriptive Statistics for Lower Skarn Unit Statistic Value – WO3 Value – LN WO3

Mean 0.51 -1.47 Minimum 0.0001 -9.21

Maximum 2.60 0.95

Standard Deviation 0.49 1.90

Variance 0.24 3.62

Count 260 260

WO3 Histogram WO3 QQ Plot

LN WO3 Histogram LN WO3 QQ Plot

Figure 14-2 Grade histograms for Lower Skarn Unit

0

0

1

1

2

2

3

3

WO3_SRK

WO3_SRK

0.00 0.00

0.05 0.05

0.10 0.10

0.15 0.15

0.20 0.20

Frequencies

Frequencies

Nb Samples: Minimum: Maximum: Mean: Std. Dev.:

0

0

1

1

2

2

Gauss(m=0.51;s=0.49)

Gauss(m=0.51;s=0.49)

0 0

1 1

2 2

WO3_SRK

WO3_SRK

-10

-10

-5

-5

0

0

WO3_LN

WO3_LN

0.000 0.000

0.025 0.025

0.050 0.050

0.075 0.075

0.100 0.100

0.125 0.125

Frequencies

Frequencies


-10

-10

-5

-5

0

0

Gauss(m=-1.47;s=1.90)

Gauss(m=-1.47;s=1.90)

-10 -10

-5 -5

0 0

WO3_LN

WO3_LN



Table 14-3 Descriptive Statistics for Upper Skarn Unit

Statistic Value – WO3 Value – LN WO3

Mean 0.75 -0.95 Minimum 0.0038 -5.58

Maximum 2.40 0.87

Standard Deviation 0.60 1.53

Variance 0.36 2.34

Count 76 76

WO3 Histogram WO3 QQ Plot

LN WO3 Histogram LN WO3 QQ Plot

Figure 14-3 Grade histograms for Upper Skarn Unit

14.6 Grade Capping

Statistical analysis of the 1 m composite data indicated that grade capping was not required. Any isolated higher grade samples would also be accounted for in the kriging process, which requires a minimum number of composites to estimate a block value. This dependence reduces the impact of individual high grades on the block values.

0

0

1

1

2

2

3

3

WO3_SRK

WO3_SRK

0.00 0.00

0.05 0.05

0.10 0.10

0.15 0.15

0.20 0.20

Frequencies

Frequencies


0

0

1

1

2

2

Gauss(m=0.75;s=0.60)

Gauss(m=0.75;s=0.60)

0 0

1 1

2 2

WO3_SRK

WO3_SRK

-6

-6

-5

-5

-4

-4

-3

-3

-2

-2

-1

-1

0

0

1

1

WO3_LN

WO3_LN

0.00 0.00

0.05 0.05

0.10 0.10

0.15 0.15

Frequencies

Frequencies


-6

-6

-5

-5

-4

-4

-3

-3

-2

-2

-1

-1

0

0

1

1

2

2

3

3

Gauss(m=-0.95;s=1.53)

Gauss(m=-0.95;s=1.53)

-6 -6

-5 -5

-4 -4

-3 -3

-2 -2

-1 -1

0 0

1 1

2 2

3 3

WO3_LN

WO3_LN



14.7 Variographic Analyses

Variography was undertaken for both the Upper and Lower Skarn units. The first stage was to define the nugget effect from down-hole omnidirectional variograms, followed by attempting directional variography. Unfortunately, the experimental directional variograms were insufficiently clear to be modelled. Variograms for the Upper Skarn units was equally poor, and so the data from both units was combined for variography. For the combined dataset, the nugget effect was defined by a down-hole variogram, with a longer lag omnidirectional variogram used to model an appropriate range. The downhole and omnidirectional variograms are given in figure Figure 14-4, and the variogram parameters in Table 14 4.

Downhole Variogram Omnidirectional Variogram

Figure 14-4 Upper and Lower Skarn Combined Data Modelled Variograms

Table 14-4: Variogram Parameters for Upper and Lower Combined Skarn Units Parameter Combined Data

Co 0.024 C1 0.122

C2 0.130

Nugget Effect (%) 8.70

Range: a1(strike) 20

a1(dip) 20

a1(cross-dip) 3

Range: a2(strike) 60

a2(dip) 40

a2(cross-dip) 8

306

273

244

215188 177 186

147

122

0

0

1

1

2

2

3

3

4

4

5

5

6

6

7

7

8

8

9

9

Distance (m)

Distance (m)

0.0 0.0

0.1 0.1

0.2 0.2

0.3 0.3

Variogram : WO3_SRK

Variogram : WO3_SRK

999

16762 1684512343 5555

1544

230

2

0

0

100

100

200

200

300

300

Distance (m)

Distance (m)

0.0 0.0

0.1 0.1

0.2 0.2

0.3 0.3

0.4 0.4

Variogram : WO3_SRK

Variogram : WO3_SRK



14.8 Block Model Construction

A block model was defined around the modelled solids. Block sizes were chosen to reflect the average drillhole spacing along strike and on section. The block model parameters are included in Table 14-5.

Table 14-5: Block Model Parameters Dimension Origin Block Size (m) No. of Blocks

X 624,000 50 40 Y 4,548,800 50 30 Z 600 10 50

14.9 Grade Interpolation

14.9.1 Introduction

Grade data for each of the domains were interpolated within the modelled wireframe only. Grade estimates for each of the units were calculated using Ordinary Kriging (OK). The search parameters used in the OK were optimised through the use of Quantitative Kriging Neighbourhood Analysis (QKNA).

QKNA, as presented by Vann et al (2003), is used to refine the search parameters in the interpolation process to help ensure ‘conditional unbiasedness’ in the resulting estimates. The criteria considered when evaluating a search area through QKNA, in order of priority, are:

• the slope of regression of the ‘true’ block grade on the ‘estimated’ block grade; • the weight of the mean for a simple kriging; • the distribution of kriging weights, and proportion of negative weights; and • the kriging variance.

Under the assumption that the variogram is valid, and the regression is linear, the regression between the ‘true’ and ‘estimated’ blocks can be calculated. The actual scatter plot can never be demonstrated, as the ‘true’ grades are never known, but the covariance between ‘true’ and ‘estimated’ blocks can be calculated. The slope of regression should be as close to one as possible, implying conditional unbiasedness.

QKNA provides a useful technique that uses mathematically sound tools to optimise a search area. It is an invaluable step in determining the correct search area for any estimation or simulation exercise. The most important statistic calculated during QKNA analyses is the slope of regression, which is presented here.

14.9.2 Neighbourhood Scenarios

A range of neighbourhood scenarios were run on both the Upper and Lower Skarn units (search distances, number of samples, etc) with the scenarios being tested by running the estimation in ISATIS software on the specific domains modelled.



The number of blocks filled in each neighbourhood run was checked to ensure that an adequate number of blocks were filled ensuring that meaningful results were generated. The final search ellipsoid parameters chosen for the block model are given in Table 14-6 and Table 14-7.

Table 14-6: Final Search Ellipsoid Parameters for Lower Skarn Unit Neighbourhood

Radius (m)

Search Ellipsoid

Pass

Rotation (strike, dip)

Strike Dip Cross Dip

Minimum number of Samples

Maximum number of Samples

Angular Sectors

Pass 1 (300,30SW) 240 240 40 10 40 8 Pass 2 (300,30SW) 240 240 40 10 20 1

Table 14-7: Final Search Ellipsoid Parameters for Upper Skarn Unit

Neighbourhood Radius (m)

Search Ellipsoid

Pass

Rotation (strike, dip)

Strike Dip Cross Dip

Minimum number of Samples

Maximum number of Samples

Angular Sectors

Pass 1 (300,30SW) 240 240 40 10 40 8 Pass 2 (300,30SW) 240 240 40 10 20 1

14.10 Block Model Validation

14.10.1 Mean Block Grade versus Declustered Composite Mean Grade

The block models were validated in three ways; through comparing the block model mean grades with the declustered composite mean grades, through validation slices through the block models, and by visually comparing the block model to the drillhole composite grades.

The mean grades for each of the estimated block models were compared to the declustered mean grade for the composite input data. Each of the modelled zones was compared separately; as given in Table 14-8. The differences between the declustered mean composite grades and the block grades are relatively small, indicating that the model is similar to the input data on a global scale.

Table 14-8: Tabuaço Project Block Mean Grade Comparison Domain Mean

Block Grade

(WO3%)

Declustered Mean composite Grade (WO3%)

Actual difference (WO3%)

Percentage Difference (WO3%)

Lower Skarn 0.52 0.51 0.00 0.36 Upper Skarn 0.73 0.75 0.01 -1.92

14.10.2 Validation Slices

As part of the validation process, the block model was compared with the composite grades within defined sectional criteria. The results were displayed on graphs to check for visual



discrepancies between grades along the defined coordinate. The expected outcome of the estimation process is to observe a relative smoothing of block model grades around the composite values. Validation slices were constructed for each of the modelled domains, and were calculated for sections cut in the X, Y and Z directions. The validation plots for the Tabuaço deposit are given in Table 14-6 and Table 14-7.

Figure 14-5 Validation Plots – Lower Skarn Unit



Figure 14-6 Validation Plots – Upper Skarn Unit

Overall, SRK considers the estimation of the modelled domains to be robust and the results have been verified to a reasonable degree of confidence. Globally, the block model average grade is relatively similar to that of the declustered input data, indicating that no biases have been introduced.

The sectional validation slices show a reasonable correlation between the composite grades and the block model grades, and it appears that a reasonable degree of smoothing has taken place.



14.11 Mineral Resource Classification

The Tabuaço project area Mineral Resources were estimated in conformity with generally accepted CIM “Estimation of Mineral Resource and Mineral Reserve Best Practices” Guidelines. SRK is not aware of any known environmental, permitting, legal, title, taxation, socio-economic, marketing or other relevant issues that could potentially affect this estimate of Mineral Resources. The Mineral Resources may be affected by further infill and exploration drilling which may result in increases or decreases in subsequent Mineral Resource estimates. The Mineral Resources may also be affected by subsequent assessments of mining, environmental, processing, permitting, taxation, socio-economic and other factors. There is insufficient information in this early stage of study to assess the extent to which the resources will be affected by these factors which are more appropriately assessed in a conceptual study.

The Mineral Resource model presented here represents a resource estimate for the Tabuaço project area. The resource estimate was completed by Dr Lucy Roberts, a Senior Consultant (Resource Geology), with SRK, with input provided by Tracey Laight, Senior Consultant (Resource Geology). Both Dr Roberts and Ms Laight are considered Qualified Persons as defined in National Instrument 43-101. The effective date of this resource estimate is December12th 2011.

The Mineral Resource statement for Tabuaço project area includes all estimated blocks within the geological wireframes above an appropriate cut off grade. Blocks have been classified as Indicated and Inferred Mineral Resources. Classification of the Mineral Resource is based on quality control data, drillhole spacing, and geological and wireframe confidence. The classification was modelled visually by digitizing a wireframe, which was then used to classify the block model. The Indicated wireframe was modelled in the areas with the highest drillhole spacing, and was extended to surface to reflect the outcrop of mineralisation and channel sampling which has occurred at surface.

Indicated Mineral Resources were only defined in the Lower Skarn Unit, where drilling is sufficient to demonstrate geometrical and grade continuity to a reasonable level. The digitised wireframe has been defined in an area where the drilling is sufficiently close spaced to allow the geological and grade continuity to be estimated with a reasonable level of confidence. The digitised wireframe was also limited by the modelled fault which cuts across the deposit.

Inferred Mineral Resources have been defined in part of the Lower Skarn Unit, and the whole of the Upper Skarn Unit. The Upper Skarn Unit has been classified as the drillhole spacing is insufficient to adequately define the continuity of the unit. Inferred Mineral Resources in the Lower Skarn Unit were defined outside of the digitised wireframe, with all material to the south of the fault being classified as a Inferred Mineral Resource.

SRK has taken into account the relatively simplistic domain geometry, the drillhole spacing, and the distribution of sample grades. The model is well drilled for demonstrating the continuity of zones above cut off grade, which is reflected by the classification of Indicated Mineral Resources in part of the Lower Skarn Unit. The Indicated classification wireframe applied to the deposit is shown in Figure 14-7 (pink), with the modelled skarn units being light blue and green. The fault is dark blue.



Figure 14-7 Classification of Tabuaço deposit

14.12 Mineral Resource Statement

CIM Definition Standards for Mineral Resources and Mineral Reserves (December 2005) defines a mineral resource as:

“a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge”.

Discussion with Colt indicated that the mining at the Tabuaço deposit is anticipated to be through underground methods. Accordingly, SRK have calculated a underground cut-off grade to define what proportion of the modelled mineralisation can be reported as a Mineral Resource.

An underground cut-off grade was calculated using a WO3 price of USD300/mtu APT (Ammonium Paratungstate), a mining cost of USD30/t, a processing cost of USD22/t, and an estimated collective metallurgical recovery of 80%. This gives an underground cut-off grade of 0.31%, which has been rounded to 0.3% for reporting.



The Mineral Resource Statement for the Tabuaço project, as of the date of this report, is given in Table 14-9.

Table 14-9: SRK Mineral Resource Statement for the Tabuaço Project Area, Portugal, December 2011

Resource Classification Tonnage (kt)

Grade (WO3%)

Contained Metal

(t WO3)

Contained Metal

(lb WO3)

Contained Metal (MTU)

Indicated Mineral Resources 760 0.58 4,600 9,700,000 440,000 Inferred Mineral Resources 1,330 0.57 8,000 16,700,000 760,000

1. Mineral Resources are not Mineral Reserves, and there is no assurance that any, or all of the Mineral Resources will be converted to Mineral Reserves

2. The tonnage, grade and contained metal values have been rounded to reflect the accuracy of the Mineral Resource estimate. Numbers may not add due to rounding.

3. The Mineral Resources are stated above a cut-off grade of 0.3%WO3, based on an anticipated underground mining method, with a mining cost of USD30/t, a processing cost of USD22/t, a metallurgical recovery of 80%, and WO3 price of USD300/mtu.

14.13 Grade Tonnage Curves

The Mineral Resource presented in Table 14-9 is sensitive to the selection of the cut-off grade. A breakdown of the tonnage and grade of the two units is presented below (Table 14-10), and then combined and represented graphically as a grade-tonnage curve (Figure 14-8).

Figures have been rounded; any apparent errors are not considered material to the information. The grade tonnage curves are based on the combined Indicated and Inferred Mineral Resources

Table 14-10 Tabuaço Grade and Tonnage Tabulation Domain Cut-off Grade

(WO3%) Volume

(‘000 m3) Density (t/m3)

Tonnage (‘000 t)

Grade (WO3%)

Lower 0.5 306 3.1 947 0.64 0.4 394 3.1 1,220 0.60

0.3 538 3.1 1,666 0.53

0.2 543 3.1 1,682 0.53

0.1 561 3.1 1,739 0.52

0.0 561 3.1 1,739 0.52

Upper 0.5 127 3.1 393 0.76

0.4 136 3.1 422 0.73

0.3 136 3.1 422 0.73

0.2 136 3.1 422 0.73

0.1 136 3.1 422 0.73

0.0 136 3.1 422 0.73



Figure 14-8 Grade - Tonnage Curve for Tabuaço



15 Mineral Reserve Estimate There is no Mineral Reserve Estimate for the Tabuaço property.

16 Mining Methods

Although still at the initial resource stage Colt has commissioned a preliminary draft Conceptual Mine Plan for the Tabuaço project (“mine plan”). The primary author of the study, produced in December 2010 was Fernando Real, a mining engineer with more than 40 years of experience in planning underground mines in Portugal and other countries.

The mine plan calls for two portals to be constructed at São Pedro das Águias. The main operational portal will be located at 370 meters in elevation and will be situated near the current winery buildings. The second portal will be located at 250 meters in altitude, and will serve primarily for ventilation outcast and escape way. The mine plan calls for the main haulage ways to be 5 meters by 5 meters in size, which will allow for construction type haulage and transfer equipment to be used underground, thereby reducing overall capital costs. Three operations levels are currently planned: at 310 meters in altitude, 285 meters, and 260 meters, with ramps connecting all levels and the portals. Most of the permanent mine workings are to be located in the granite rock, thereby allowing much better ground control conditions over time and a better ROM ore recovery. The mining method will be a modified room and pillar mining method. Bench and fill mining will be the primary method, with drift and fill mining planned in certain circumstances. By employing these methods, management will be able to more efficiently alter the heights of the mining areas to conform to the variability in the height of the ore body. This in turn will allow more of the ore body(ies) to be ultimately recovered and processed.

The mine plan examined four potential sites for processing the ore and depositing both waste rock and mill tailings. Several locations in close proximity to the proposed mine have been reviewed and a short list of suitable sites have been identified. In July, 2011 senior company personnel evaluated the shortlisted sites for potential operations.

The Current Conceptual Mine Plan is only a draft document at the present time (but it includes a first preliminary estimation of the mine CAPEX and OPEX) and the mine plan will be altered as more exploration results become known.

17 Recovery Methods

Refer to Section 13.3 above.

18 Project Infrastructure

The Tabuaço project is not sufficiently advanced to have warranted detailed Infrastructure studies however preliminary observations are as follows.



18.1 Power

The project area is well serviced by the national grid, with a high-voltage power line passing immediately adjacent to the project along the N323 highway. The maintainer of the power infrastructure and main supplier of both base load and renewable power in Portugal is Energias de Portugal (EDP), formally known as Electricidade de Portugal.

EDP has a published ordinary regime generation capacity of 9,619MW, of which 4,578MW are generated from hydroelectric sources and 5,040MW are generated from thermal Power Stations.

18.2 Water

Supply and regulation of the drinking water and sewerage industry is controlled by the Water and Sanitation Regulation Agency Entidade Reguladora de Águas e Resíduos (ERSAR). Service provision is shared between the local municipalities and the national water company, Águas de Portugal (AdP).

Potable water is available from the local municipal system and the Távora river passes through the project licence area, making it an option for sourcing larger volumes of drilling water subject to permitting. A further option is porting water from a number of existing reservoirs which are close to the project area.

18.3 Mining Personnel

The area of northern Portugal has a long and varied mining past, with a significant number of stone quarries used for building or road building still evident in operation in the area. The metalliferous mining industry in northern Portugal is relatively small scale compared to global standards, however the area is host to the Panasqueria Tin-Tungsten mine, located in Covilha, Costelo Branco, which is one of the world’s main producers of Tungsten. The nearest concentration of modern metalliferous mines in Portugal are found largely concentrated in the Iberian Pyrite Belt to the south.

Further skilled workers are potentially available from Spain and other EU countries with areas of existing or historic Tungsten or other metalliferous underground mines.

19 Market studies and Contracts

Tungsten is exploited for its unique properties of hardness, high melting point and high tensile strength. These properties mean tungsten lends itself well to applications within the commercial, industrial and military sectors

19.1 Applications:

• Tungsten Carbide is favoured for wear resistant properties in the construction, metal working, mining and the oil and gas industries.

• Tungsten alloy and pure Tungsten is used most for metal contacts, wires, electricals, electronic heating, lighting and welding applications.



• Tungsten is also used for heavy -metal armaments, heat sinks, radiation shielding, weight and counter weights; and super alloys for turbine engine parts. Tungsten alloys and composites are used as a substitute for lead in bullets, shot and other products.

• Tungsten in chemical form is used to make catalysts, corrosion-resistant coatings, dyes, pigments, fire-resistant compounds, lubricants, phosphors and semiconductors.

(USGS,2009)

19.2 Production:

China currently accounts for over 75% of the world's mining production whilst the western world's production is comparatively very low. During the 1990's tungsten prices were characterised by China's over production and low prices, causing the West to cease production. The stockpiles of tungsten over shadowed the market putting a roof on prices through to 2005/2006. Into 2006 the surplus material in stockpiles sold, allowing the market to become dominated again by supply and demand fundamentals. (Roskill 2011). Jiangxi Tungsten Group Ltd which was formed in December 2003 has become the largest tungsten group in China.

In 2009 the top 3 producers of tungsten worldwide were China (51,000 mt), Russia (2,500 mt) and Canada (1,964 mt) the figures provided are from a total of 61,300 mt produced worldwide. The years previously produced: 2005 (59,500 mt), 2006 (56,400 mt), 2007 (54,100 mt ), 2008 (62,200 mt) (USGS, 2009)

19.3 Consumption

The USA, Europe and Japan consume over 55% of world tungsten and produce only 5%. China has moved from being a net exporter to a net importer as the Chinese domestic demand increases by a current and forecasted 8% between 2010-2013 (Ormonde Mining PLC, 2011).

19.4 Prices:

Throughout 2010 and 2011 there has been a recovery and increase in tungsten prices by 81% from $185 MTU ATP (Ammonium Paratungstate) to $335 MTU ATP (Ormonde Mining PLC 2011). Roskill (2011) has predicted a 6% increase per year of Tungsten driven by strong growth in China into 2013 and potentially to 2016. China's restriction on exports and production quotas of tungsten to the rest of the world, means analysts are projecting demand outstripping supply boosting prices further. The price today is approximately $445 MTU.

Wolframite concentrates, China 65% $380 per MTU W03 Scheelite concentrates, China 65% $363 per MTU W03 Ammonium paratungstate, China 88.5% W03 $445MTU W03 Ferrotungsten, China (75% tungsten content) $55 per kg Not on an MTU basis

Source: http://en.cmmri.com/Prices.aspx?t=5 (December 19, 2011) & Platt’s Metal Prices (December 8, 2011)Note: Prices current as of December 19 2011. USD Prices are calculated using conversion rate of 6.347 Yuan (CNY) to US$ dollar (USD) and adding a 17% export tax.

http://en.cmmri.com/Prices.aspx?t=5�



20 Environmental Studies, Permitting and Social/Community Impact

SRK ES understands that independent environmental consultants have conducted a baseline environmental study. However SRK ES has not reviewed this.

SRK ES understands that Colt holds regular meetings with the local community, however SRK ES has not been involved with these meetings.

SRK ES understands that all the environmental permitting issues are being handled by Colt. SRK ES has not been reviewed this process.

21 Capital and Operation costs

The Tabuaço Tungsten project is not at a stage where detailed calculations of capital or operational costs are warranted. Preliminary studies would indicate that there are no major factors that would have a negative impact on these calculations when they are made

22 Economic Analysis

The Tabuaço Tungsten project is not at a stage where detailed economic analysis is warranted. Preliminary studies have been conducted and these indicate that there are no major factors that would have a negative impact on these calculations when they are made

23 Adjacent Properties

Whilst there are no active mining operations in the proximity of the Amar Meda licence or the Tabuaço Tungsten Project there are several other companies exploring in the region, notably;

• To the NW: Iberian's Régua exploration concession - also skarn tungsten/scheelite advanced project;

• To the South and east: COLT also holds Penedono (Au), Cedovim (Au, Sn-W) and Moimenta-Almendra (Au, Sn-W)exploration concessions;

• To the NE: Minaport's holds the Numão exploration concession (Au).

•

24 Other Relevant data

There is no other relevant data or information which would materially impact the conclusions of this report.



25 Interpretation and Conclusions

The Tabuaço project comprises two distinct skarn horizons in close proximity to a granitoid intrusion. The current Mineral Resource is a preliminary one and SRK ES would anticipate that further exploration will extend and upgrade this.

There are numerous surface exposures of similar rocks in the region and several of these have already been sampled and shown to carry anomalous tungsten grades. The prospects of further economic mineralisation are therefore good, though in all probability these will be small in size.

Given the natural beauty of the area, the concept of a number of small low impact deposits feeding in to a centralised processing facility may be appealing.

SRK ES considers the delineation of a Mineral Resource at Tabuaço to be an exciting development not only for Colt but for the region and Portugal. Tungsten and tin occurrences are quite widespread in northern part of Portugal.

The Panasqueira deposit is located 120 km to the south, is also a tin and tungsten deposit, though slightly different in origin. The addition of the project at Tabuaço could mean the beginnings of a larger “tungsten district”.

26 Recommendations

SRK ES recommends that Colt conduct further drilling at the Tabuaço project, both within the current Resource area to upgrade the inferred part of the Mineral Resource and downdip to the south to add to the overall resource.

In addition SRK ES have suggested that Colt continues prospecting outside the Tabuaço project area to locate other mineralised zones that might be exploitable as part of the same project.

SRK also recommends that work commences on a scoping or pre feasibility study to establish the best methodologies for exploiting the Tabuaço deposit.

For and on behalf of SRK Exploration Services

Anthony Gareth O’Donovan Corporate Exploration Consultant and Managing Director

Tabuaço_43-101 20111221.docx 21 December 2011

27 References

Geoquest Consulting LTD (2006). Armamar Meda 43-101 Report Sep 6 2010-Scanned Signature.pdf, P:drive.

SRK (2011). Montemor_NI43-101TRE_220700060_20110306.pdf, P:drive

SRK (2011). BROW_Colt_01062011_a1.pdf, P:drive

SRK (2011). Colt Resources Resource Estimate Memo 20111107_v1.0.pdf, P:drive

Websources:

Hinde, C and Peters, T, (2008), Tungsten Mining Journal Special Publication, Mining Journal, , London.. [ONLINE] Available at: http://www.mining-journal.com/__data/assets/supplement_file_attachment/0014/123314/Tungsten-scr.pdf. [Accessed 09 December 2011].

Wernerm B.T., Sinclair, D, and Amey, E.B, (1998), International Strategic Mineral Issues Summary Report – Tungsten, US Geological Survey Circular 930-0, 1998, .[ONLINE] Available at: http://pubs.usgs.gov/pdf/circular/c930-o.pdf. [Accessed 09 December 2011]

British Columbia Ministry of Energy and Mines, Appendix VII. Conversion Factors. 2011.[ONLINE] Available at:http://www.em.gov.bc.ca/Mining/Geoscience/MINFILE/ProductsDownloads/MINFILEDocumentation/CodingManual/Appendices/Pages/VII.aspx. [Accessed 09 December 2011].

Kimmel, JR, (2000), GRG301K – Weather and climate, Köppen Climate classification flow chart University of Texas at Austin, Department of Geography, 2000, http://www.utexas.edu/depts/grg/kimmel/GRG301K/grg301kkoppen.html. [Accessed 09 December 2011].

[ONLINE] http://www.coltresources.com/en/management-team [Accessed 19 December 2011].

[ONLINE] http://www.coltresources.com/en/board-directors-advisory-board [Accessed 19 December 2011].

[ONLINE] http://en.cmmri.com/Prices.aspx?t=5 [Accessed 20 December 2011].

Gourvennec, R, et al, Lower Devonian faunas and palynomorphs from the Dornes Syncline (Central Iberian Zone, Portugal):stratigraphical and paleogeographical implications, (2010), Carnets de Géologie / Notebooks on Geology: Article 2010/09 (CG2010_A09), [ONLINE] http://paleopolis.rediris.es/cg/CG2010_A09/



28 Glossary

28.1 Mineral Resources The mineral resources and mineral reserves have been classified according to the “CIM Standards on Mineral Resources and Reserves: Definitions and Guidelines” (November 27, 2010). Accordingly, the Resources have been classified as Measured, Indicated or Inferred, the Reserves have been classified as Proven, and Probable based on the Measured and Indicated Resources as defined below.

A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes.

An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drillholes that are spaced closely enough to confirm both geological and grade continuity.

28.2 Mineral Reserves A Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.



A ‘Probable Mineral Reserve’ is the economically mineable part of an Indicated, and in some circumstances a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

A ‘Proven Mineral Reserve’ is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

28.3 General Mining Terms The following general mining terms may be used in this report.



Table 26.3.1: General Mining Terms

Table 1. Term Table 2. Definition Assay: The chemical analysis of mineral samples to determine the metal

content.

Capital Expenditure: All other expenditures not classified as operating costs.

Composite: Combining more than one sample result to give an average result over a larger distance.

Concentrate: A metal-rich product resulting from a mineral enrichment process such as gravity concentration or flotation, in which most of the desired mineral has been separated from the waste material in the ore.

Crushing: Initial process of reducing ore particle size to render it more amenable for further processing.

Cut-off Grade (CoG): The grade of mineralized rock, which determines as to whether or not it is economic to recover its gold content by further concentration.

Dilution: Waste, which is unavoidably mined with ore.

Dip: Angle of inclination of a geological feature/rock from the horizontal.

Fault: The surface of a fracture along which movement has occurred.

Footwall: The underlying side of an orebody or stope.

Gangue: Non-valuable components of the ore.

Grade: The measure of concentration of gold within mineralized rock.

Hangingwall: The overlying side of an orebody or slope.

Haulage: A horizontal underground excavation which is used to transport mined ore.

Hydrocyclone: A process whereby material is graded according to size by exploiting centrifugal forces of particulate materials.

Igneous: Primary crystalline rock formed by the solidification of magma.

Köppen Climate Classification A vegetation-based, empirical climate classification system developed by German botanist-climatologist Wladimir Köppen

Kriging: An interpolation method of assigning values from samples to blocks that minimizes the estimation error.

Level: Horizontal tunnel the primary purpose is the transportation of personnel and materials.

Lithological: Geological description pertaining to different rock types.

LoM Plans: Life-of-Mine plans.

LRP: Long Range Plan.

Material Properties: Mine properties.

Milling: A general term used to describe the process in which the ore is crushed and ground and subjected to physical or chemical treatment to extract the valuable metals to a concentrate or finished product.

Mineral/Mining Lease: A lease area for which mineral rights are held.

Mining Assets: The Material Properties and Significant Exploration Properties.

Ongoing Capital: Capital estimates of a routine nature, which is necessary for sustaining operations.

Ore Reserve: See Mineral Reserve.

Pillar: Rock left behind to help support the excavations in an underground mine.

RoM: Run-of-Mine.

Sedimentary: Pertaining to rocks formed by the accumulation of sediments, formed by the erosion of other rocks.

Shaft: An opening cut downwards from the surface for transporting personnel, equipment, supplies, ore and waste.

Sill: A thin, tabular, horizontal to sub-horizontal body of igneous rock formed by the injection of magma into planar zones of weakness.

Smelting: A high temperature pyrometallurgical operation conducted in a furnace, in which the valuable metal is collected to a molten matte or

doré phase and separated from the gangue components that accumulate in a less dense molten slag phase.

Stope: Underground void created by mining.



Table 1. Term Table 2. Definition Stratigraphy: The study of stratified rocks in terms of time and space.

Strike: Direction of line formed by the intersection of strata surfaces with the horizontal plane, always perpendicular to the dip direction.

Sulfide: A sulfur bearing mineral.

Tailings: Finely ground waste rock from which valuable minerals or metals have been extracted.

Thickening: The process of concentrating solid particles in suspension.

Total Expenditure: All expenditures including those of an operating and capital nature.

Variogram: A statistical representation of the characteristics (usually grade).

28.4 Abbreviations The following abbreviations may be used in this report.



Table 26.4.1

Abbreviation Unit or Term A ampere

AA atomic absorption

ALS Australian Laboratory Services Pty Ltd

BF ES/MS Lithium Borate Fusion XRF, Majors and Traces BRGM Bureau de recherches géologiques et minières

°C degrees Centigrade

Ca(WO4). Scheelite

CCD counter-current decantation

CCRMP Canadian Certified Reference Materials Project

CIL carbon-in-leach

CoG cut-off grade

cm centimeter

cm2 square centimeter

cm3 cubic centimeter

cfm cubic feet per minute

ConfC confidence code

CRec core recovery

CRM Certified Reference Material

CSS closed-side setting

CTW calculated true width

° degree (degrees)

dia. diameter

EIS Environmental Impact Statement

EMP Environmental Management Plan

FA fire assay

ft foot (feet)

ft2 square foot (feet)

ft3 cubic foot (feet)

g gram

gal gallon

g/L gram per liter

g-mol gram-mole

gpm gallons per minute

g/t grams per tonne

ha hectares

HDPE Height Density Polyethylene

hp horsepower

HTW horizontal true width

ICP-AES induced couple plasma – AES Aqua Regia

ICP-MS induced couple plasma – Multi Acid Digestion

IFC International Finance Corporation

ILS Intermediate Leach Solution

INETI Instituto Nacional de Engenharia, Tecnologia e Inovação

kA kiloamperes

kg kilograms

km kilometer

km2 square kilometer

koz thousand troy ounce

Kt thousand tonnes



Abbreviation Unit or Term kt/d thousand tonnes per day

kt/y thousand tonnes per year

kV kilovolt

kW kilowatt

kWh kilowatt-hour

kWh/t kilowatt-hour per metric tonne

L liter

L/sec liters per second

L/sec/m liters per second per meter

lb pound

LHD Long-Haul Dump truck

LLDDP Linear Low Density Polyethylene Plastic

LOI Loss On Ignition

LoM Life-of-Mine

m meter

m2 square meter

m3 cubic meter

masl meters above sea level

MARN Ministry of the Environment and Natural Resources

MDA Mine Development Associates

ME-MS61 48 element, four acid ICP-MS

ME-XRF 10 Fusion XRF, Ore grade

mg/L milligrams/liter

mm millimeter

mm2 square millimeter

mm3 cubic millimeter

MME Mine & Mill Engineering

Moz million troy ounces

Mt million tonnes

MTW measured true width

MW million watts

m.y. million years

NGO non-governmental organization

NI 43-101 Canadian National Instrument 43-101

OMAC O’Neill McHugh Laboratories (formerly Stewart Group, ALS Group as of July 2011)

OSC Ontario Securities Commission

oz troy ounce

% percent

PLC Programmable Logic Controller

PLS Pregnant Leach Solution

PMF probable maximum flood

ppb parts per billion

ppm parts per million

QA/QC Quality Assurance/Quality Control

RC rotary circulation drilling

RoM Run-of-Mine

RQD Rock Quality Description

SEC U.S. Securities & Exchange Commission

sec second

SFM Servico de Fomento Mineiro



Abbreviation Unit or Term SG specific gravity

SPT standard penetration testing

SRK ES SRK Exploration Services

St short ton (2,000 pounds)

T tonne (metric ton) (2,204.6 pounds)

t/h tonnes per hour

t/d tonnes per day

t/y tonnes per year

TSF tailings storage facility

TSP total suspended particulates

µm micron or microns

V volts

VFD variable frequency drive

W Tungsten

WO3 Tungsten Trioxide / Tungsten (III) Oxide

XRD x-ray diffraction

XRF x-ray flourescence spectrometry

y year



Appendix I CRM Certificates

Legal Notice: WCM Sales Ltd. (WCM Minerals) has prepared and analyzed the reference materials using qualified analytical laboratories and generally accepted assay procedures. WCM Sales Ltd. accepts liability only for the cost of the standards purchased. The purchaser, with the receipt of the product, releases WCM Sales Ltd. from all liabilities related to the use of the reference materials and information.

Lloyd Twaites Glen Armanini Registered Assayers, Province of British Columbia

WCM Sales Ltd. 7729 Patterson Avenue Burnaby, BC, Canada, V5J 3P4

Phone: 604-437-0280 E-mail: [email protected] Web-site: www.wcmminerals.ca

CERTIFICATE OF ANALYSIS WCM MINERALS

W 104

Tungsten Reference Material

LAB Lab 1 Lab 1 Lab 2 Lab 2 Lab 3 Lab 3 Lab 4 Lab 4 Lab 5 Lab 5 Replicate W % WO3 % W % WO3 % W % WO3 % W % WO3 % W % WO3 % Method Fus/XRF Fus/XRF P.Dig/ICP P.Dig/ICP Fus/XRF Fus/XRF Fus/XRF Fus/XRF Fus/XRF Fus/XRF

1 0.20 0.25 0.206 0.260 0.20 0.25 0.19 0.24 0.2040 0.2573 2 0.21 0.26 0.208 0.262 0.20 0.25 0.19 0.24 0.2030 0.2560 3 0.22 0.28 0.204 0.257 0.20 0.25 0.19 0.24 0.2038 0.2570 4 0.21 0.26 0.200 0.252 0.21 0.26 0.19 0.24 0.2019 0.2546 5 0.21 0.26 0.202 0.255 0.20 0.25 0.19 0.24 0.2006 0.2530 6 0.20 0.25 0.209 0.264 0.2125 0.2680

Average 0.2083 0.2627 0.2048 0.2583 0.2020 0.2547 0.1900 0.2396 0.2043 0.2576 Std Dev. 0.0075 0.0095 0.0035 0.0044 0.0045 0.0056 0.0000 0.0000 0.0042 0.0053 Average T 0.2023 0.2551 Std Dev. 0.0076 0.0096 Recommended W % WO3 %

Value 0.20 0.26

Country of Origin - Canada








W 106

Tungsten Reference Material

LAB Lab 1 Lab 1 Lab 2 Lab 2 Lab 3 Lab 3 Lab 4 Lab 4 Lab 5 Lab 5 Replicate W % WO3 % W % WO3 % W % WO3 % W % WO3 % W % WO3 % Method Fus/XRF Fus/XRF P.Dig/ICP P.Dig/ICP Fus/XRF Fus/XRF Fus/XRF Fus/XRF Fus/XRF Fus/XRF

1 2.16 2.72 2.179 2.748 2.21 2.79 2.06 2.60 2.1357 2.69 2 2.16 2.72 2.185 2.755 2.20 2.77 2.04 2.57 2.1580 2.72 3 2.17 2.74 2.259 2.849 2.21 2.79 2.09 2.64 2.1497 2.71 4 2.17 2.74 2.207 2.783 2.20 2.77 2.05 2.59 2.1654 2.73 5 2.18 2.75 2.260 2.850 2.21 2.79 2.09 2.64 2.1438 2.70

Average 2.1680 2.7340 2.2180 2.7971 2.2060 2.7819 2.0660 2.6054 2.1505 2.7120 Std Dev. 0.0084 0.0106 0.0393 0.0496 0.0055 0.0069 0.0230 0.0290 0.0116 0.0147 Average T 2.1617 2.7261 Std Dev. 0.0583 0.0735 Recommended W % WO3 %

Value 2.16 2.73

Country of Origin - Canada








W 108 Tungsten and Molybdenum Reference Material

LAB Lab 1 Lab 1 Lab 2 Lab 2 Lab 3 Lab 3 Lab 4 Lab 4 Lab 5 Lab 5 Lab 5 Lab 5 Lab 1 Lab 2 Lab 5 Lab 5 Lab 6 Lab 7 No. W % WO3 % W % WO3 % W % WO3 % W % WO3 % W % WO3 % W % WO3 % Mo % Mo % Mo % Mo % Mo % Mo %

1 0.73 0.92 0.717 0.904 0.730 0.921 0.69 0.87 0.6993 0.8819 0.7354 0.9274 0.056 0.052 0.0573 0.0563 0.052 0.0556 2 0.73 0.92 0.745 0.940 0.730 0.921 0.69 0.87 0.6980 0.8802 0.7281 0.9182 0.056 0.053 0.0582 0.0554 0.053 0.0552 3 0.72 0.91 0.724 0.913 0.730 0.921 0.74 0.93 0.6999 0.8826 0.7258 0.9153 0.059 0.053 0.0570 0.0568 0.052 0.0556 4 0.72 0.91 0.741 0.934 0.730 0.921 0.70 0.88 0.6993 0.8819 0.7332 0.9246 0.060 0.053 0.0558 0.0549 0.052 0.0554 5 0.73 0.92 0.762 0.961 0.730 0.921 0.68 0.86 0.6964 0.8782 0.7223 0.9109 0.060 0.053 0.0597 0.0560 0.051 0.0565 6 0.73 0.92 0.7048 0.8888 0.7213 0.9096 0.059 0.051 0.0576 0.0564 7 0.060

Average 0.7267 0.9164 0.7378 0.9304 0.7300 0.9206 0.7000 0.8828 0.6996 0.8823 0.7277 0.9177 0.0586 0.0525 0.0576 0.0559 0.0520 0.0558 Std Dev 0.0052 0.0065 0.0178 0.0225 0.0000 0.0000 0.0235 0.0296 0.0028 0.0036 0.0057 0.0072 0.0018 0.0008 0.0013 0.0007 0.0007 0.0005 Av Tot. 0.7201 0.9081 0.0556 StdDevT 0.0185 0.0234 0.0027

Report W % WO3 % Mo %

0.72 0.91 0.056 Country of Origin - Canada

http://www.wcmminerals.ca/�



Appendix II

Author Certificates

CERTIFICATE OF QUALIFIED PERSON

To Accompany the report entitled: NI 43-101 Technical Report on the Tabuaço Tungsten Project, Portugal, dated December 21 2011.

I, Anthony Gareth O’Donovan residing at The Old Vicarage, Vicarage Terrace, Maesteg CF34 9PF, UK. do hereby certify that:

1) I am a Corporate Exploration Consultant with the firm of SRK Exploration Services Ltd (“SRK ES”) with an office at 12 St. Andrews Crescent, Cardiff, CF10 3DD, UK;

2) I am a graduate of the University of Keele, UK in 1983and Rhodes University, South Africa in 1992, I obtained bachelors and Masters degrees respectively. I have practiced my profession continuously since 1986, as a mine geologist, exploration geologist and 12 years as a consultant with the SRK Group;

3) I am a Professional Exploration Consultant registered with the Engineering Council and the FIMMM 533068; 4) I have personally inspected the subject project on several occasions during 2011; 5) I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by virtue of

my education, affiliation to a professional association and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of National Instrument 43-101 and this technical report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1;

6) I, as a qualified person, I am independent of the issuer as defined in Section 1.5 of National Instrument 43-101; 7) I am the co-author of this report and responsible for sections 1-12 and 23-28 of the report] and accept professional

responsibility for those sections of this technical report. In addition I was responsible for the overall compilation of the report;

8) Prior to my appointment as independent QP to the Tabuaço project in February 2011 I have had no prior involvement with the subject property;

9) I have read National Instrument 43-101 and confirm that this technical report has been prepared in compliance therewith;

10) SRK was retained by Colt Resources Inc. to prepare a technical audit of the Tabuaço Tungsten project. In conducting our audit a gap analysis of project technical data was completed using CIM “Best practices” and Canadian Securities Administrators National Instrument 43-101 guidelines. The preceding report is based on a site visit, a review of project files and discussions with Colt Resources personnel;

11) I have not received, nor do I expect to receive, any interest, directly or indirectly, in the Tabuaço Tungsten Project or securities of Colt Resources Inc; and

12) That, as of the date of this certificate, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Cardiff December 21st 2011

A.G O’Donovan, MSc, CEng, FIMM, FGS [“signed and sealed”]

Corporate Exploration Consultant and Managing Director SRK Exploration Services Ltd.



CERTIFICATE OF QUALIFIED PERSON

To Accompany the report entitled: NI 43-101 Technical Report on the Tabuaço Tungsten Project, Portugal, dated December 21 2011.

I, Lucy Sarah Roberts residing at Chadwick, Trellech, Monmouth, NP25 4PA, UK do hereby certify that:

1) I am a Senior Consultant (Resource Geology) with the firm of SRK Consulting UK Ltd (“SRK”) with an office at 5th Floor , Churchill House, 17 Churchill Way, Cardiff, CF10 2HH, UK;

2) I am a graduate of the University of Cardiff, UK in 2000 and 2001 and James Cook University, Australia in 2006, I obtained Bachelors (BSc), Masters (MSc) and PhD degrees respectively. I have practiced my profession continuously since 2001, as a research geologist and 6 years as a consultant with the SRK Group;

3) I am a Chartered Professional Resource Geology consultant registered with the Australasian Institute of Mining and Metallurgy (AusIMM) with membership number 211381;

4) I have read the definition of “qualified person” set out in National Instrument 43-101 and certify that by virtue of my education, affiliation to a professional association and past relevant work experience, I fulfil the requirements to be a “qualified person” for the purposes of National Instrument 43-101 and this technical report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1;

5) I, as a qualified person, I am independent of the issuer as defined in Section 1.5 of National Instrument 43-101; 7) I am the co-author of this report and responsible for section 14 only and accept professional responsibility for that

sections of this technical report; 8) Prior to my appointment as independent QP to the Tabuaço. project in February 2011 I have had no prior

involvement with the subject property; 9) I have read National Instrument 43-101 and confirm that this technical report has been prepared in compliance

therewith; 10) SRK was retained by Colt Resources Inc. to prepare a technical audit of the Tabuaço. Tungsten project. In

conducting our audit a gap analysis of project technical data was completed using CIM “Best practices” and Canadian Securities Administrators National Instrument 43-101 guidelines. The preceding report is based on a site visit, a review of project files and discussions with Colt Resources personnel;

11) I have not received, nor do I expect to receive, any interest, directly or indirectly, in the Tabuaço. Tungsten Project or securities of Colt Resources Inc; and

12) That, as of the date of this certificate, to the best of my knowledge, information and belief, this technical report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Cardiff December 21st 2011

Lucy Roberts BSc MSc PhD AusIMM(CP) [“signed and sealed”]

Senior consultant (Resource Geology) SRK Consulting (UK) Ltd.



CERTIFICATE OF QUALIFIED PERSON To accompany the report entitled: NI 43-101 Technical Report on the Tabuaço Tungsten Project, Portugal, dated December 21, 2011.

I, Eric J. Olin, MSc, MBA, RM-SME do hereby certify that:

1. I am a Principal Process Metallurgist of: SRK Consulting (U.S.), Inc., 7175 W. Jefferson Ave, Suite 3000, Denver, CO, USA, 80235 2. I graduated with a Master of Science degree in Metallurgical Engineering from the Colorado School of Mines in 1976. 3. I am a Registered Member of the Society for Mining Metallurgy & Exploration. 4. I have worked as a Metallurgist for a total of 34 years since my graduation from the Colorado School of Mines. My relevant experience in the minerals industry includes extensive consulting, plant operations, process development, project management and research & development experience with base metals, precious metals, ferrous metals and industrial minerals. I also have extensive experience in process development for a variety of tungsten ores. 5. I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101. 6. I am responsible for the preparation of Sections 13 of the technical report titled NI 43-101 Technical Report on the Tabuaço, Tungsten Project, Portugal, and dated December 20, 2011 (the “Technical Report”) relating to the Tabuaço property. I visited the Tabuaço property on February 2, 2011 for two days. 7. I have not had prior involvement with the property that is the subject of the Technical Report. 8. I am independent of the issuer applying all of the tests in section 1.5 of National Instrument 43-101. 9. I have read NI 43-101 and Form 43-101F1, and the Technical Report has been prepared in compliance with that instrument and form. 10. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report. 11. That, as of the date of this certificate, to the best of my knowledge, information and belief, this Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Denver December 21st 2011

Eric J. Olin, MSc, MBA, RM-SME [“signed and sealed”]

Principal Process Metallurgist SRK Consulting (UK) Ltd. SRK Consulting (US), Inc.

NI 43-101 Technical Report on The Tabuaço Tungsten Project ...

Documents

Transcript of NI 43-101 Technical Report on The Tabuaço Tungsten Project ...