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Exploration Program

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Satellite image of the Byumba Project showing the various drill phases completed and planned, the outline of the current declared resource and sites of artisinal mining. In addition to the soil sampling and drilling campaigns, stream sediment sampling, IP surveys and trenching were carried out.

During 2008 and 2009, there were 33 diamond holes drilled into the largest gold soil anomalies. A total of 5200m were drilled and a 265,000 oz gold resource was declared. In order to increase the resource, drilling along strike of the resource started during the last quarter of 2011 and drilling is planned with additional 8500m of drilling. Drilling is planned to a maximum depth of 280m. The NQ size drill core is split and sampled at the core yard in Byumba, prepared at the laboratory in Kigali and shipped to ALS Chemex for analysis.

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Man-portable drill rigs are used in order to minimize the environmental impact, strict environmental procedures are followed.

During 2008, some 9,817 soil samples were collected from six different areas within the Byumba Project. This survey yielded positive results in that two large, coherent gold in soil anomalies were discovered. The smaller of these anomalies (red pit anomaly) is some 440m long by 200m wide and trends northwest. The larger runs for 1,600m, attains a maximum width of some 350m, trends northwest and returned a maximum value of 5.4 g/t Au in the soil.

A second soil sampling program over newly generated targets on the different permits started in June 2011 and is continuing.

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Coherent gold soil anomalies on the Byumba Project

An airborne reconnaissance survey conducted confirmed several large artisanal workings on the properties. Two initial targets were selected from the airborne survey for follow up.

While geological data is limited, gold occurrences were documented during regional surveys prior to independence and more recently by Bureau de Recherches Géologique et Minières (BRGM) and the United Nations.

Prior to the exploration programme, no known modern exploration campaigns had targeted the permit areas for commercial gold deposits. What was known of the geology and mineral occurrences in Rwanda came from regional surveys conducted by governmental and non-governmental organisations such as the BRGM and the United Nations. The permit areas remain under-explored for in situ gold deposits.