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Newrange Gold Corp.

@NewrangeNRG, info@newrangegold.com
604-669-0860, www.newrangegold.com
Newrange is an aggressive exploration and development company
focused on near to intermediate term production opportunities in
favorable jurisdictions, including Nevada, Colorado and Colombia.
Focused on developing shareholder value through exploration and
development of key projects, the Company is committed to building
sustainable value for all stakeholders.

FIRST INTERVIEWS -- TABLE OF CONTENTS

First Interview with Robert Carrington at the #SilverGoldSummit.................. 1

50 Minutes on Pamlico Geophysics with Robert Carrington $NRG ................. 13

New Underground Workings to guide Drilling At East Zone ........................... 37

Peter Bell’s
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Newrange Gold Corp. $NRG
Introducing Pamlico
Page 1

First Interview with Robert Carrington at the #SilverGoldSummit


Please find below a transcript of the first ever interview that I published with Mr.
Robert Carrington, President and CEO of Newrange Gold (TSXV:NRG) during the
Cambridge House Silver Gold Summit in November, 2017. Find the original
publication here, complete with full audio recording.

Peter Bell: Hello, this is Peter Bell. I am here with Robert Carrington from Newrange Gold.
Robert's at the San Francisco Silver Gold Summit right now. I got him to step
away from his booth for a couple of minutes to talk to me. Hello Robert.

Bob Carrington: Hello there, Peter. How are you doing today?

Peter Bell: It's always hard to know how to prioritize your time and your energy – what
to focus on in the junior market with so many things going on at once. The
conference here, as well, I've been watching it a bit on Twitter and making
some noise. It's lots of fun, but pretty quiet. Not too many people tweeting
about it, not quite the same as being there.

Bob Carrington: Well, no. It's not. You're pretty busy if you're on the floor, like we are with the
booth. And most everybody else is wrapped up listening to various talks or in
a lot of the meetings. I'm not surprised there's not a lot of Twitter traffic
coming off the floor of the show, but it's been a really good show.

Peter Bell: Lots of foot traffic for you guys? You're in a busy spot, right around Kitco
News.

Bob Carrington: Yes, we're right across from Kitco News and Ellis Martin. We're in a good
location, lots of foot traffic. A lot of interested parties, some existing
shareholders and potentially new shareholders. Quite a few fund managers,
as well.

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Introducing Pamlico
Page 2

Peter Bell: I get the impression that San Francisco's a pretty sophisticated town when it
comes to institutional. Not necessarily resource-focused, or junior mining
institutional investors, but people who understand risk! Research and tech
companies have some analogies to junior mining, right?

Bob Carrington: Very much so, Peter. They're very much in-tune with the venture capital
markets, just not in the resource sector.

Peter Bell: Cool. Well, there were a couple pictures of some rocks that the company
tweeted out here not too long ago. And I just wanted to ask if you could tell
me what are we looking at? There are four different rocks, they're each on
wooden little plinths in a big glass container with some nice black fabric
underneath. Looks like a pretty classy show there.

Bob Carrington: Well, it is. Those are specimens from Pamlico. Those are actually gold
specimens that came out of some of the waste dumps on the property – the
old waste dumps from the 1800s back when Pamlico was first in production.
Those were found fairly recently with a metal detector. It gives you a real
good idea of just how high-grade Pamlico is. Some of the historic production
ran over 200 ounces of gold at the time. Obviously there's an awful lot of high
grade gold. Not very many places throw away chunks of gold like that.

You can see a lot of coarse free gold on those pieces in the photographs. Now,
spectacular gold like that is hosted in a volcanic rock called a rhyolite. The
mineralization that we're actually drilling for is hosted in another volcanic
that is underneath that rhyolite. It's called a latite. It's chemically more
reactive and hosts more total gold than the rhyolites do. The characteristics
of the gold are different than the rhyolites, too. In the latite, the gold is very
fine grained. It is almost microscopic, which means you don't get any big
specimens like the ones in our case at the conference.

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Introducing Pamlico
Page 3

Peter Bell: The Silver Gold Summit in San Francisco!

Bob Carrington: That’s right. For modern mining and milling, the latite is a godsend because
the “very fine gold” is easily recovered in modern milling techniques. We
really have the best of both worlds – there is the spectacular gold you can see
in the specimens we have out at the conference and there are the latites. We
see broad zones of disseminated mineralization in the latites with almost
microscopic gold that are cut by even higher-grade zones, where we see drill
intercepts up to 10 ounces a ton.

Peter Bell: That's exciting. You mentioned that something had 200 ounces historically.
That’s over 5 kilograms.

Bob Carrington: I tell you, Peter, I'm really looking forward to getting some of that in a drill
hole one of these days. I'm confident we will. Actually, that is one of our goals.

About a kilometer and a half south of where we're currently drilling is an


outcrop area where we see surface outcrops with historical outcrop samples
that run up to 620-grams. We know that those exist on the property today
and we'll be moving off into some of those areas with our drilling later this
year.

Peter Bell: Here you are saying this in late November! Good for you, Robert.

Bob Carrington: And, speaking of the drilling, on our website there's a video from our first
phase drilling. It shows the large reverse circulation drill rig moving onto the
first drill hole drilled on the property. You can see as the rig moves up the
ridge it gets onto the drill site, positions itself, lowers the hydraulic stabilizers
– the large legs that are on the front of the drill – and raises the deck so that
the platform of the drill is level and all the engines and equipment work
properly.

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Introducing Pamlico
Page 4

Once they get it leveled and stabilized, you can see the mast starting to raise.
And they raised the mast for that particular drill hole all the way upright. That
was a vertical hole, so the mast is straight up in the air. That same drill rig can
drill anywhere from a 45 degree angle up to a vertical drill hole. As they get
everything situated and organized, the video shows when they first start
drilling. They're right at the surface and you see a lot of dust when they very
first start drilling. As they progress and get deeper in the hole, the dust is
contained within the drill hole.

Peter Bell: Wow. Yeah, definitely saw the dust getting thrown up there at the start of that
hole. I’ve also read in the news releases about how the dust is contained at
depth so that samples are not lost. I had wondered, “why RC drilling?”

Bob Carrington: There are a number of reasons we're drilling reverse circulation rather than
core right now. First and foremost, the mineralization at Pamlico is very soft
and friable. The mineralization in the latite units has no quartz with it, so it's
extremely soft. You can literally crush that high-grade mineralization that
runs anywhere from 3-10 ounces with your hand. And the reverse circulation
drill performs very well with that because it crushes the rock and then blows
compressed air down into a space between two pieces of pipe to flush the
cuttings up through the center of the pipe. There is very little chance for
losing the sample or having contamination of the sample with the method
we're currently using.

A concern with drilling core there is that when you use water to lubricate and
cool the core bit, that soft friable mineralization can get washed out into the
wall rock and you wind up vastly under-reporting the grades that can be in
the rock. I've actually been involved in projects that have had that problem
before.

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Introducing Pamlico
Page 5

Peter Bell: I had been reading in the news releases that the gold is not hosted in quartz
veins. In some of your interviews, you have mentioned that the quartz veins
have a higher work index, are very hard rock, and that can get expensive when
you start grinding it down. It is news to me to hear about the implications of
all that for the exploration stage. Very interesting. Is that why those samples
you have out at the booth are covered in glass?

Bob Carrington: Those are under glass so that they don't walk away.

Peter Bell: Okay. Those aren't instances of rock that you could squish it with your hands.

Bob Carrington: No, those are fragile, but they're not nearly as fragile as the mineralization
that we're drilling in the latite. Those gold specimens are from some of the
veins that came out of the rhyolites.

Peter Bell: Were the old timers getting down into the latite rocks?

Bob Carrington: No, they would basically sink small shafts through the rhyolite and mine the
veins down right to the upper contact of the latite. Almost all of the mine
working stopped at the top of the latite unit because the gold in the latite unit
is so fine. Even where we see 10 ounces a ton, you almost cannot pan any
gold. For the old timers who were dominantly doing their grade control with
a gold pan, as far as they knew the latites had no gold in them. And in reality,
that's where the bulk of the gold is.

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Introducing Pamlico
Page 6

Peter Bell: Wow. And there's this idea floating around out there about an economic
resurgence in the USA. You see it potentially in manufacturing and consumer
tech, but I think it also has the potential to manifest in heavy industry. To have
an old mining site like this in Nevada, and to hear that they got down to this
zone and stopped because they couldn't see it in the pan is very exciting for
the future of Nevada and the US. Technological change -- making new things
possible.

Bob Carrington: You know, that's a lot of the history of Nevada's modern mining. Today,
Nevada is the third largest gold producing region in the world after the
countries of China and Australia.

Peter Bell: Wow.

Bob Carrington: Just think about the size of China and Australia – Australia is the size of the
United States and China is much bigger, but Nevada is the third-largest gold
producing region in the world today. Most of that gold is coming from
deposits that have microscopic gold. The dominant style of mineralization in
Nevada are the Carlin type deposits, which are big sediment-hosted systems.
These very fine-grain gold deposits are the dominant gold deposit in Nevada.
We have a number of other large volcanic hosted systems in Nevada and
along the Walker Lane. The Walker Lane is a massive structural lineament in
the Western US that straddles the border between Nevada and California.

Other big mines along the Walker Lane include the Comstock Lode, which has
produced roughly 8.4 million ounces of gold and between 300-400 million
ounces of silver. Another big operating mine that's still in production is the
Round Mountain Mine, which sits at about 30,000,000 ounces with past
production and current reserves. Kinross Mining is operating that today. And
that has some characteristics that are very similar to Pamlico. Round
Mountain is a large open-pit, heap-leach operation, where there's this great

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Introducing Pamlico
Page 7

big halo of stock, low grade stock with mineralization and volcanic rocks. Very
much like Pamlico, there are extremely high-grade zones that cut through the
low-grade ore body. They recover those high-grade zones through a mill,
whereas they send the lower grade material to the heap-leach.

That's very much the mining scenario that I think we'll see at Pamlico down
the road when we get to the point of actually going into production. The
mineralization at Pamlico outcrops. If you look at our most recent press
release, we had a drill hole that was collared in 12-gram gold mineralization.
The very first sample from the surface assayed over a half-ounce of gold,
which is very significant. Most of the mineralization is within 200 feet of the
surface, which could almost certainly be an open pit. Then, years down the
road, as the district begins to mature like many of the large Nevada districts,
you would start developing underground access.

Peter Bell: Which you already have some of at site. Interesting that a decline was put in
by the former owner before any open-pit mining. All the sampling it allowed
you to do there was great. The Newrange story is very good – I'm fairly new
to it, but I've been really impressed by everything I've seen so far.

Bob Carrington: Yeah, it is an exciting story. The access that you refer to is the Merritt decline.
Ironically, the Merritt family did most of their grade control with a gold pan,
much like the miners of the 1800s. They didn't see the gold in the latite units
and when we acquired the property they had never sampled the decline. We
went in and conducted a saw-cut channel sampling program in the decline
and, to our utter amazement, came up with 75 meters of three-grams gold in
the end of the decline. They had drifted through two veins that assayed over
three ounces a ton – two separate veins that they had never sampled. It's just
mind-boggling.

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Introducing Pamlico
Page 8

Peter Bell: With the recent announcement of acceleration of warrants, you will be
getting some cash into treasury to keep going.

Bob Carrington: We've got the cash to keep going now and if markets improve then we'll
probably raise some additional funds to accelerate the work program. Work
this year is going to consist largely of expanded drilling throughout the
Pamlico ridge zone and some of the other major targets. One of the real
interesting target zones outside of the Merritt zone, which is where we'll be
doing most of our work, is what we call the East Zone. And the East Zone is a
very exciting zone that's a six-kilometer long trend along the Eastern margin
of the property that we were able to stake after we acquired the original
Pamlico claims from the Merritt family.

We realized that there was a lot of mineralization in the sediments and we


found altered mineralized structures cutting the limestone sediments that
ran up to five-grams gold. It looks like there may be potential for
disseminated, sediment-hosted system there. Even if the sediment-hosted
target doesn't pan out, those limestones overlie the same volcanics that
we're currently exploring in the area of the Merritt decline so we're potentially
looking at a duplicate target that's over twice as large as what we're currently
exploring. That is what we call the East Zone.

Peter Bell: Wow. Funny to hear you say, "If it pans out or not" and to think about where
that phrase came from. And to discuss the old timers doing grade-control
with a pan – it makes me think, " even if it doesn’t pan out, there might still be
some microscopic gold in there – send it to the lab!"

Bob Carrington: And that is exactly where that statement came from, Peter. If you can see
gold in the gold pan, then it's a good property.

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Introducing Pamlico
Page 9

Peter Bell: All the experience you have in the company is impressive. And it is tightly
held, too.

Bob Carrington: Yeah, we do have a very good management team. The fellow who's running
the project, Nathan Tewalt, co-founded the company with me in 2006 back
when we originally called it Columbia Mines Corporation. Nathan is a geologist
and he actually discovered the Hollister Mine. He recognized the target
potential, designed the drill program, and executed the program that led to
the discovery of the Hollister Mine. He's a very good geologist and very
experienced with these high grade systems like Pamlico.

I also have a lot of exploration success and a number of discoveries to my


credit. I was Chief Geologist on the Comstock Lode for many years. Discovered
a couple of nice ore bodies that have since been mined up there. I also was
involved in the discovery of the Twin Creeks Mine that Newmont now
operates, which Santa Fe Pacific Minerals originally had. As it sits today, Twin
Creeks is a 4.9 million ounces in reserves. Some big discoveries there.

Peter Bell: That's impressive.

Bob Carrington: We also have a mining engineer by the name of David Russell on our Advisory
Board. David is very accomplished mining engineer. He's managed several
mines for Newmont. He also took over Getchell Gold and built it from a 50
cent stock to a $35 stock. He successfully merged it with Placer Dome for a
$1.1 billion payday to the shareholders.

Peter Bell: Wow. And I guess that management with that kind of track record helps
explain how you've been able to keep this company so tightly held.

Bob Carrington: Yes. When you consider that we incorporated the company in 2006, our share
structure is still very tight. We have 65.2 million shares issued and

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Introducing Pamlico
Page 10

outstanding today. We are accelerating the conversion of 9.6 million warrants


so that by the middle of December, when all the conversion is finished, the
company will have roughly 75 million shares issued and outstanding. We're in
really good shape, both from a share structure and a capital standpoint. I
think another very important aspect is that we have very large, loyal
shareholders. Our 20 largest shareholders control about 70% of the issued
and outstanding stock. I personally own about 4% of the stock and Nathan
Tewalt owns roughly the same amount.

Peter Bell: The experience of the team and skin in the game really line up well for me.
Sounds like you have people around who really understand what you're trying
to achieve here and are willing to support the company on an ongoing basis,
assuming that you are able to keep things on track. That's a really powerful
combination in the junior mining business.

Bob Carrington: It is and most of our big shareholders tend to take the opportunity to top-up.
They are very loyal, very supportive, and I don't think we'll see that stock
coming out into the market any time soon.

Peter Bell: But somebody else who participated in the placement may sell. There's been
some movement downwards in the share price recently, specifically since I
first met you at the Metals Investor Forum there in Vancouver recently. To be
honest, I was excited to see it go down – I was thinking, "Okay, pay attention
here, this might not last that long."

Bob Carrington: Well, I don't think it will. One thing to keep in mind is we're in the middle of tax
selling season in Canada. To sell for tax loss purposes in Canada, you have to
get that all wrapped up by the middle of December, I believe. That always
results in a bit of softness in the Canadian junior markets. The price of gold
has been in a range lately, too.

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Introducing Pamlico
Page 11

Peter Bell: But we're spitting distance from $1,300! It's not back down at $1,100 or
something.

Bob Carrington: That's right, Peter. With a bit of catalyst, gold is starting to look like it really
wants to move here. After the first of the year, I wouldn't be surprised to see
it move up substantially and all the junior stocks along with it.

One of the good things about a project like Pamlico that is really critical, going
forward, is that high-grade projects like Pamlico have the ability to stay in
business and be the last man standing no matter what the price of gold goes
to. If gold goes down to $1,000, Pamlico could still be a viable project. The
large, low-grade systems can't say that.

Peter Bell: I'm with you. Is that just by virtue of being in the lowest quartile of the cost
curve, or even the lowest decile?

Bob Carrington: Yes. A good example is the Midas Mine that Newmont operated during the big
downturn in 2000 when gold got down to $200 an ounce. When gold was
$200 an ounce, Newmont was producing gold at Midas for $90 an ounce. Most
weren’t making money but that mine was still making a very handsome profit.

Peter Bell: Makes me think about the question of high-grading a mine – that’s not always
a bad thing. If there is variation in grades, then you focus on the parts with
higher grades to get your costs down when things are tough. Always lots of
strategic planning issues to discuss. I have been impressed by your grasp of
the concepts and the mining side of things, as well. It’s not just about the
exploration geology for you – I get the sense that you are familiar with the
strategic issues around actual production.

Bob Carrington: Yes, thank you Peter. I have a long history in production. Early in my career I
worked as a mine geologist in a 1,200 tonne a day underground mine. Later,

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Introducing Pamlico
Page 12

through my consulting company, I took a 10,000 ton a day open pit mine from
the first discovery hole. I actually drilled the discovery hole, provided all of
the drilling, designed the pit, and supervised mining in the pit. It was an open-
pit, heap-leach mine. We were mining 10,000 tons a day at the time.

Peter Bell: Wow.

Bob Carrington: It was pretty neat. Some of the techniques we developed were quite
interesting. We wound up producing 10% more ore at a 12% higher grade
than the original mine model called for. There were some fairly innovative
things that we did at that time. I believe we can bring that to bear here at
Pamlico. At the appropriate time, we'll go ahead with this project.

Peter Bell: These issues don't get a lot of play in the junior mining promotional area – to
everyone's detriment, I think. There are important technical questions that
affect profitability of a mine, ultimately. To hear that you've taken something
from the discovery hole through production is just great, thank you. And to
hear that you optimized things is interesting, too – I can’t wait to get the full
story from you there. I don’t know much about your experience, but I’d like to
learn more. So far, it confirms for me that things are on the right track and
things are in good hands.

Bob Carrington: Well, thank you.

Peter Bell: You’re welcome. Great to talk with you, Robert. I will let you get back to your
booth at the Silver Gold Summit, thanks for taking over 30 minutes to with
me.

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Introducing Pamlico
Page 13

50 Minutes on Pamlico Geophysics with Robert Carrington $NRG


Please find below a transcript of an extensive interview that I recorded with Mr.
Robert Carrington, President and CEO of Newrange Gold (TSXV:NRG) the same day
the company released their property-wide geophysical survey at Pamlico in
November 2017. Listen to the full audio in the original publication here.

Bob Carrington: There are places that get up to a meter of rainfall a year. In Reno, you typically
get about 17 to 20 inches of rainfall a year. By the time you get over to
Hawthorne, where Pamlico is, you're down to about two inches of rainfall a
year.

Peter Bell: Does the climate interact at all with the geophysics?

Bob Carrington: Not the types of geophysics that we ran. There are some geophysical
techniques, such as certain electrical techniques, where you have to be very
careful about. For example, lightning strikes can affect some of the electrical
responses. For the most part, there's not a lot of effect from climate on the
magnetometry, gravity or the radiometrics.

The minor exception is that the radiometric signature we're looking for is
really a very faint signature. The drier it is, the better results you get. If we
had just had a real heavy rainstorm move through Pamlico, then the moisture
in the soil could actually mask the radioactive signature that we're looking for
– it's that weak. It's a very subtle signature we're looking for with the
radiometric survey and being in a dry climate makes helps with that.

Peter Bell: Do we have a sense for the relationship between the radiation from the
potassium and the gold mineralization here?

Bob Carrington: It's a little bit early to tell, but it appears as though there is definitely a
positive association. Throughout the western US, the North American

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Introducing Pamlico
Page 14

Cordillera, there is definitely a very strong association of the radioactive


signature from potassium with gold occurrences. We see it on the Comstock
Lode, the Sleeper Mine, and pretty much throughout western Nevada. The
gold occurrences typically have a very weak radioactive signature associated
with the alteration in and around the gold system.

Peter Bell: It is not something I’m immediately familiar with, although I have heard of
this “potassic alteration” before. Is it subject to some controversy amongst
geologists?

Bob Carrington: There's some discussion, but it's widely known and accepted with this style of
alteration. I've never talked to a geophysicist that is not familiar with this
alteration style and event. That's one reason that you almost always fly a
radiometric survey at the same time as you fly a magnetometry survey.

Peter Bell: Any comment on the mechanism for the potassium to be present there now?
What’s the chemistry behind the scenes there?

Bob Carrington: It is a potassium isotope that has a very weak radioactive signature and it is
generally put in place along with other elements that are carried in the same
solutions that can carry the gold and the silver. It's relatively easy to find a
radioactive element because you can measure it remotely with a
radiotometer. The potassium isotope deposits in the clays and the altered
wall rock around the gold system, so you typically see a positive correlation
between gold and the signature from the radioactive potassium minerals. We
see the same elevated levels of potassium isotope in the porphyry copper
systems and the porphyry gold systems throughout South America and the
big epithermal systems throughout Nevada. It's very typically a component
of the epithermal and porphyry systems.

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Introducing Pamlico
Page 15

Peter Bell: Looking specifically at that map of the radiometrics, it would seem that
there's a pretty intense high around the Merritt Decline. It is in line with this
northwest-trending structure that you have talked about in news releases,
too.

Bob Carrington: Yes, that is a very strong signature. As you observed, it parallels the zone
we're drilling up around the Merritt area for the most part. Interestingly, as
we proceed across the east-west zone and start getting close to the
projection of the Pancake Range lineament, that strong potassium signature
turns almost due east west all of a sudden. It may be that we're seeing
structural influence from the cross-cutting of the Pancake Range Lineament
in there.

One real interesting thing that I should point out is Area 5 on the southeast
corner of the property. At this area, we think there may be potential for

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Page 16

sediment-hosted gold mineralization. There are outcrops there that run as


high as five-grams in altered mineralized structures in the limestone
sediments. If you look at it on all the geophysical maps, especially the
radiometric map, then you can see plainly that the high-potassium zone
swings and goes right into the Area 5 and the projection of the Pamlico Ridge
zone actually cuts over towards it, too. We may be seeing that some of the
structures and the mineralizing events related to the Pamlico Ridge zone are
intersecting, altering, and mineralizing the limestone rocks in and around
Area 5.

Peter Bell: Is there any sense from the geophysics that you released today here the
source for some of that mineralizing fluids overall?

Bob Carrington: More than likely, but this is just a very general survey. The fluids are coming
off of a deep, intrusive body and that body may be directly under Pamlico or
it could be miles off to one side or the other. It may be a porphyry system, or
it could be what a lot of people term a “Failed Porphyry”, where the enclosing
wall rock didn't have enough confining force to keep the mineralizing
solutions in the porphyry system. In that case, the volatile component of the
porphyry that carried the gasses, precious metals, and everything that come
up with the porphyry could have been forced off into the surrounding wall
rock – those solutions can travel for miles along these major structures. A
porphyry coming up in a major crustal lineament like the Walker Lane could
literally be miles from where we see the mineralization at the surface.

Peter Bell: Wow. I guess the issue then becomes having the right trap for it at the
endpoint, right? That's something that you've talked about in past news
releases and interviews at Pamlico – how the volcanics at higher levels of
stratigraphy cause the gold to be more finely disseminated below that.

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Page 17

Bob Carrington: The difference in the gold deposition is largely a function of the rocks it's
depositing in. The coarse gold that we've seen at Pamlico is depositing in the
rhyolite flows, which are silica-rich rocks. As these altering-fluids move
through the rhyolite, they will scavenge the silica from the rock and then
redeposit that silica as quartz veins. Of course, the gold tends to deposit in
and around those quartz veins.

Down in the latite units that we're exploring with our drilling, we see almost
no quartz veins at all and the gold is all contained in very soft iron oxides. We
discussed before how these rocks are easily crushed with your hand. These
rocks once had sulphides, which have oxidized over millions of years and now
all you have left is iron oxide with very fine gold disseminated through it.

Peter Bell: Very interesting to hear you say that what may be sediment-hosted, Carlin
style gold over in Area 5 may actually have structural connection to what
you're seeing in Pamlico Ridge. That would seem to add another domain for
gold mineralization! A district, indeed.

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Bob Carrington: Yes, it is. The structural regime is very, very important to the control of all of
these things. It really doesn't matter what kind of mineral deposit you're
looking at, other than something with a big salt dome or some other minor
deposits, metal deposits almost always have to have some kind of a fracture
or crack in the rock for the fluids to migrate through. If your rock has no
structure, then you almost never have a deposit. Typically, the more complex
the structure is, the better your chances of having a good deposit because a
lot of structural perforation allows for very fast chemical changes. Those
changes force the mineral load in the geothermal solutions to drop out of
solution very fast, which tends to form a more concentrated and larger
deposit.

Peter Bell: And does any of the geophysics today tell you anything really about
structure?

Bob Carrington: It tells us a lot about structure. If you look at any of the maps that we put out,
especially the airborne magnetometry map, then you can very easily see the
northwest trending structure of Pamlico Ridge. For example, Area 2 is what
we term our East-West Zone and you can see it clearly in the underlying
magnetometry. You can actually see the trace of that large East-West Zone
trending right across the property, almost exactly where we had it plotted
before we flew these geophysics. It's very nice to see things like that
supporting the modeling that we had already done. As we go forward and
incorporate the geophysics with the surface mapping and the detailed
topographic map that we recently had made, we'll be able to much more
effectively target our drilling.

Peter Bell: I was pleased to read about sampling programs in the recent release, too.

Bob Carrington: Yes, they're being done as we speak.

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We're focusing very much on the area to the south from our current drill area,
which goes down toward that Area 2 on these maps. Where you have major
structural intersections, like where Area 2 crosses Area 1, there is
tremendous potential for very nice mineral development. Again, it's a
function of structural perforation: Where the rock is very broken, you have
increased fluid flow and, statistically, a greater chance of having a mineral
deposit.

Peter Bell: A question about these maps – there are outlines drawn in white and black.
Are those showing target areas before and after the geophysics in some way?

Bob Carrington: If you look at the lower-left hand corner of the maps, then you will see a
description of the white areas. They are a very faint lavender that was
selected so it would show up against the background of the geophysical
surveys and they show areas with concentrations of historic mine workings.

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Bob Carrington: If you were to look on a satellite image of these areas, there are literally
hundreds of mine workings within those areas. There are over 300 historic
mine workings on the Pamlico property and the vast majority of those are
located within those areas that are outlined in that very light lavender color
on the geophysical maps. The old-timers may not have known it, but they

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were mining on these geophysical anomalies that we've recently identified.


It's helps support the notion that these geophysical anomalies are very
important – historic evidence of gold mineralization sitting right on top of
your targets.

Peter Bell: Wonderful. And I noticed that there's some of them in Area 8, which is one of
the skarn target areas.

Bob Carrington: Yes, Area 8 is a very impressive skarn area. The geophysics consultant that
modeled all of this is very excited about the possibility of developing a skarn
up there and we will be doing a lot more work on that part of the property. It's
a little hard to see, but just above the Area 7 is another skarn area that is
actually quite impressive.

If you look at the airborne radiometric survey, then you can see that there's a
very strong radiometric anomaly coincident with that magnetic anomaly at
Area 7. There is is also a very strong coincident gravity anomaly. Skarns are
generally associated with very dense rock and gravity measures the density
of the rock so it is encouraging to see a high in the gravity survey there.

There are also generally a lot of sulphides in skarns, so they have a magnetic
signature as well. The mineral magnetite is often deposited in skarns and the
magnetic signature indicates that there may be a skarn there. There are a lot
of things that point to a potential skarn at Area 7. The Battle Mountain district
of Nevada is a huge skarn system. Newmont currently operates the Phoenix
Mine up there, which I believe has a minable reserve of 14 million ounces of
gold. The Battle Mountain district is dominantly a skarn district and the
mineralization that they're mining right now is actually skarn-hosted
mineralization, but there have been some nice sediment-hosted gold
systems distal to the skarn mineralization historically. Notice that Area 6 is
another area of possible sediment-hosted mineralization nearby Area 7.

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The whole picture we're seeing at Pamlico is starting to fit together in the
same general context as some of the other big mining districts that I'm
familiar with in Nevada. Particularly where you see skarn systems developing
with distal mineral deposits, which typically have zonation that results in
gold-copper mineralization in the core of the system where it's very hot.
Then, you may have sediment-hosted gold systems further out. Further out
on the fringes, you may get base metal and silver systems – things like silver-
lead-zinc systems. Again, we're seeing a very similar pattern here. We are well
within the gold part of the system, if that's what we're dealing with because
we see very little in the way of base metals. Keep in mind that there is almost
no silver here, which is a good thing. The gold at Pamlico is very high-purity
gold. Just looking at it, I would estimate that the native gold at Pamlico is
running over 900

Peter Bell: And that's 90% purity.

Bob Carrington: Exactly.

Peter Bell: Wow. Is that the coarse stuff or the fine-grain gold?

Bob Carrington: That's the coarse stuff. The fine-grain stuff is so fine that I have not been able
to get a piece big enough to even tell what color it is, really. I can barely tell
with a binocular microscope that it's even gold. And that's in samples that are
running over 3 ounces of gold per tonne! Between 3-10 ounces of gold. Just
incredibly high grades with no coarse gold that we've been able to find.

Peter Bell: Continuing with regional comparables – is there anything similar in terms of
what you are seeing with the high-grade, fine gold?

Bob Carrington: Yes, there is. Round Mountain Mine to the east of us has some extremely high-
grades that are also very fine. They also have some veins with spectacular

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Page 23

pieces of coarse gold at Round Mountain. For gold collectors Round Mountain
is one of the most popular places there is. Some of the gold that comes from
Round Mountain is spectacular – almost sheets of gold – but the bulk of the
gold at Round Mountain is very fine. Still, they can get it out with heap-
leaching.

There are a number of other systems, also. The old Hycroft-Lewis Mine up by
Lovelock had very fine gold disseminated through the volcanics. Hycroft-
Lewis had a problem, though, because it had a lot of silica in it. That negatively
impacted their recovery.

Other mines that have had a lot of very fine-grain gold include some of the
big open pit mines down near Beatty and Rhyolite, Nevada. Barrick operated
an open pit mine there where they heap leached everything and they got
excellent recovery because the gold was very fine and was all deposited on
fractures in the volcanic rocks there.

Peter Bell: Interesting to hear you say about the potential for the sediment-hosted,
Carlin style deposits at Areas 5 and 6. Almost opposite ends of the property!

Bob Carrington: They are. There may be something in between, but right now those are the
most prospective areas we're seeing. Area 5 has a much stronger radiometric
signature than Area 6 does. We think we know what may be going on there: it
only takes a couple of centimeters of soil to mask the radiometric signature
that we're looking at. Area 6 is in a part of the property where's there's a lot
of alluvial cover. It is not necessarily very deep, but there could be 10-15 feet
of alluvial cover there and that could be enough to disrupt the radiometric
signature.

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Bob Carrington: What really highlights Area 6 is the gravity. If you look at the gravity map,
then you can see that Area 6 sits in the middle of a very intense gravity low.
It's a very striking – almost a donut-shaped low in there.

Peter Bell: That was not clear to me before. Is that because the sedimentary units tend
to be lighter or something to do with the limestones?

Bob Carrington: Actually, the limestone can be extremely dense. There are some very high
magnetic responses on the gravity map – maximum responses between
Areas 5 and 6. Geologically, that area is a large limestone ridge. That big
limestone ridge is doing exactly what altered limestones generally do –
forming a very dense, high-gravity rock area.

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There are more unaltered limestones that extend from Area 7 off to the
northwest there, just about up to the end of Section A. The high gravity there
could be caused by limestones in that area. Combined with the radiometric
and magnetic signatures, all that suggests there could be a skarn there.

That illustrates an important aspect of geophysics, Peter. The more layers of


information you have, the better your understanding is. If we had only gravity
data or the magnetometry, then it would be like trying to figure out what was
going on in a room by looking through a keyhole. You don't have enough
information to model things properly without multiple layers of information.

It's important that we use the gravity, the magnetometry, and the
radiometrics together with all the surface geology we can get! Geochemistry
and everything just provides another little piece of a large and complex
puzzle that we're putting together.

Peter Bell: Certainly. Thank you for mentioning that the limestones can be responsible
for that gravity low smack in the middle of the property there. I'd wondered if
that might have indicated some kind of a granitoid intrusion, but I see it on
the geology map that you have there as well. That helps put a few pieces
together, myself.

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Bob Carrington: You are correct, Peter, a big intrusive body can generate a gravity high.
Gravity is an interesting thing because it's measuring the density of the rock
at and near the surface of the earth. One of the big uses for gravity is
determining where you have areas of deep alluvial cover.

If you look at the lower left-hand edge of the gravity map – southwest of the
Pamlico Ridge Zone – then you will see a large area of very low gravity. In fact,
that is a large canyon called Never Sweat Canyon. It has very deep alluvial
gravels. Knowing that you have gravel there and seeing extremely low-
density material in there allows you to infer, clearly, that the gravels there
are very deep.

Peter Bell: And if you want to talk about structure again, then a big canyon would seem
to be indicative of some historical lines of weakness that have been eroded
away over time! That opens up a can of worms, I think.

Bob Carrington: It really does. Again, you touched on an important thing with the structure.
It's not totally evident just from the gravity map, but it is clear at surface, that
Never Sweat Canyon parallels the northwest structure of the Walker Lane.

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When you step back and look at a larger picture, that's exactly what's going
on. Some of the faulting of the Walker Lane actually controls this segment,
which is called Never Sweat Canyon. And these large, deep-seated structures
are typically the structures where you see fluid circulating and moving up
towards the surface.

Peter Bell: I'll point out that that limestone unit we were just talking about to the north
of the Pamlico Ridge area is also trending in that northwest direction, as well.
Interesting.

Bob Carrington: The Walker Lane is so large and has so much structural displacement that
everything is just kind of smeared out in that northwest orientation, Peter.

Peter Bell: And let me ask about these structural intersections, as well. I've heard that
mentioned here at Pamlico with a northeasterly trending structure that
intersects the northwest structure around this area of interest. Is there any
new insight into that from this geophysics?

Bob Carrington: That structure is not apparent on a large scale. If you look at the airborne
radiometric maps, then you can see a very strong northeast trending
structural lineament in there. You can see it around Area 7, down past Area 6,
and down to Area 4. That almost certainly indicates some kind of structural
event. In fact, it is actually Pamlico Canyon that runs through there. At this
point, we're not sure exactly what the structures are doing in there but it is
almost certain that we are going to have one kind of rocks to the southeast
side of that and another kind of rocks to the northwest side.

In the field, we clearly see that there are limestones to the southeast side but
the majority of the volcanics that host the high-grade mineralization we've
been drilling at Pamlico are in the high radiometric response area to the south
and east of that northeast trending structure. We do see northeast trending

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structures with the geophysics, but we don't necessarily see a lot of


mineralization associated with them. However, it does seem to control the
location of the favorable host rocks, so it is an important structure.

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Peter Bell: And there seems to be a clear contact running northeast in the magnetometry
map from the Area 3 out to the northeast there.

Bob Carrington: Yes. As you stare at these maps, you start to see trend. It can be quite
surprising. And a lot of those trends are very real.

One of the things we're going to do is detailed geologic surface mapping for
this entire property. Based on my experience, I expect that as we develop a
better understanding of the actual structures we will start to see that we have
major, mappable structures that line up with some of the trends that you can
see with your naked eye on these geophysical maps.

Peter Bell: And how about this cross-section? It was good to see the anticline structure
illustrated. That was the first time I had heard mention of that at Pamlico. A
lot of geology to talk about there, I'm sure. Any comment on why you picked
the line to go down where you did – any particular insight from it?

Bob Carrington: Actually, if I'd have picked it then it would have gone right through our drill
area! The geophysics guy picked the line and we weren't able to generate
another section in time for our press release. Regardless, is a fairly typical
cross-section for the project. For a section that goes directly through the drill
area we've been working on, the location of the anticline will probably move
a bit to the north toward A, away from A-prime, but will otherwise look very
similar to this. This is as good as a section right through our drilling.

The real interesting thing is we're seeing in this section is a very distinct
magnetic signature. You can see the magnetic susceptibility signature has an
intermediate and yellow color in the interpreted host horizon and that is a
very distinctive signature, which suggests that there's a lot of room to grow
the system at Pamlico – a lot of potential to develop high-grade
mineralization going down.

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Bob Carrington: It is encouraging to see that as we move to the south toward A-prime, the
interpreted host horizon dips underneath some very young volcanics but
geophysics indicates the host keeps going. All of this is within depths that we
can readily drill. I believe we're looking at a depth of about 2,000 feet below
the surface, which is not terribly deep for modern mining.

Up in Idaho, the Lucky Friday shaft is developed down to over 7,000 feet. In
the Red Lake district of Ontario, the Red Lake mines are down to almost 9,000
feet now, I believe. Of course, some of the giant mines in South Africa are
down over 10,000 feet. At 2,000 feet, we're scratching the surface.

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Peter Bell: Interesting that the host dips below younger volcanics to the south at A-
prime as you say there. That opens up some potential for underground mining
off some kind of a starter pit.

Bob Carrington: Long term, I believe that the geophysics bodes very well for exploration.
Going forward, there may be potential for a long mine life.

Peter Bell: There were a couple photos from the field. They give a sense for Pamlico as a
lunar landscape, really.

Bob Carrington: Both those photos were taken in the Pediment area. Just like a lunar
landscape, it demonstrates the total lack of outcropping rocks. In one photo,
you can see a man in a blue shirt and blue jeans standing next to the one and
only outcrop in the Pediment area. He's actually standing just in front of the
outcrop that yielded one and a quarter-grams over a meter and a half
channel.

The other photo is a panorama that I took standing right on top of the outcrop. Unfortunately,
it doesn’t show the outcrop that ran over four-grams but the photos show
that there's absolutely no outcropping rocks anywhere in that Pediment area.
Still, we're probably only looking at 3 to maybe 10 feet of alluvial gravel that
covers the majority of that area.

From that one quartz vein, we know that we have mineralized structures in
the Pediment area. The geophysics supports the idea that there are

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northwest trending structures that project out into that area from several of
our other targets and I'm looking forward to doing the groundwork, the
geochemistry, and getting the geology all worked out to develop some good
drill targets out in that area.

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Peter Bell: Good to hear that you will take your time to do it right, too. The Pediment area
is off to the northwest of the Meritt Area.

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Bob Carrington: Yes, there is a major structure that projects out into the Pediment from the
Meritt Area, Pamlico Ridge, and the Gold Box zone.

Peter Bell: Was it the same type of mineralization that you have seen before in the
rhyolites at the Pediment?

Bob Carrington: We're not sure yet. We really don't know, but I think that it's very likely that
we'll see that we have the favorable latites relatively close to the surface
there. It is more than likely that we will be dealing with the very fine-grain
gold there as we have seen in the immediate area of the Meritt Decline.

Peter Bell: Was there any indication of anything to that effect in the two samples that
you did find outcropping at the Pediment?

Bob Carrington: We couldn't see any visible gold. Most geologists will agree that if you have
coarse gold in a system with more than three-grams per tonne, typically, then
you will be able to find visible gold with a hand lens. We certainly have not
been able to do that.

Once we got the assays back from the Pediment, we went back and crawled
over those outcrops pretty carefully to figure out what was going on.

One of the things we're going to do is go back and take very detailed samples.
We want to sample just the iron and just the quartz, because I'm fairly
confident that the iron is carrying the gold there.

Peter Bell: If you can really get a handle on the mineralogy there, then that will be
encouraging for people who may be waiting on the sidelines trying to figure
out what's going on with this apparent district.

Bob Carrington: There's lots and lots of work like that and we will be doing it. We're putting
together a list of samples for whole rock analysis from the two deep

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stratigraphic test holes and once we get that all together, we will announce
that information. We're also compiling a list of samples to go into a composite
metallurgical sample and we'll be doing early-stage metallurgical tests to
confirm that we have easily recoverable fine grain gold at Pamlico. Some of
that work is going to include scanning electron microscopy, where we will be
able to look at the size of the gold and the shape of the gold grains.

The shape of the gold grain is very important. If it's a very compact gold grain,
then it doesn't have a lot of surface area. If your gold grain is very ornate and
has a lot of little appendages, then it has a lot of surface area that the cyanide
can work on. You may find that it is a larger gold grain can still be treated with
heap leaching because of the tremendous surface area. There's a lot of little
things that go into having a good operation. Yes, there may be coarse grains
of gold but if it's very ornate then you may be able to process it with heap
leach, contrary to what some might expect.

Peter Bell: The word “ornate” would seem to be a good descriptor for the samples that
you have up on the website and the conference booth.

Bob Carrington: Yes, it is quite ornate. The very coarse gold that we show in the display case
at the shows would probably not respond well in a heap leach, but if you look
closely at it then you will see that it's actually composed of minute crystals
and wires of gold. They have grown together into a mass of gold, but those
clumps of gold on the specimens are actually quite porous.

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Peter Bell: Indicative of a lot of gold in the system!

Bob Carrington: Yes, it certainly is. There is clearly a lot of gold in this system.

It's going to be interesting, going forward, to work out the providence of the
gold and why it's depositing where it's depositing. I am convinced that we're
only just now scratching the surface on this. As we move on to more drilling,
start stepping out further along strike, maybe drilling some deeper drill holes
into some of these other targets, and start drilling other targets I think it’s
going to be very exciting. Certainly not all of the targets will pan out – they
never do – but I am confident that enough are going to pan out that I think
Pamlico has a bright future.

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New Underground Workings to guide Drilling At East Zone


Newrange Gold (TSXV:NRG) is embarking on their first drill program away from the
Merritt Decline and it is exciting. Read on to hear how a timely discovery of
historical underground workings nearby led the team to better understand the rock
types they are seeing at surface in the East Zone. Make sure to read closely when
Robert and I discuss the controversy around the apparently low-grades in drill core
from the Merritt Area when high-grade intercepts are removed, and why the
company is using RC drilling. This interview was recorded on February 13 2018 and
first published on CEO.CA here.

Bob Carrington: In a nutshell, Peter, we got into one of the mines that nobody has been into
for probably 50-80 years and have crews mapping and sampling in there.
That could yield some really important geological information. We also have
an excavator arriving on-site just about now and they are going to start
building drill roads and drill pads. The drill rig will show up either this Friday
or Monday.

Peter Bell: Wow. Those underground sampling programs, those seem like some low-
hanging fruit for you.

Bob Carrington: They really are. Somebody else paid to make the hole and if you have a good
survey of the underground mine workings, then a mine tunnel is a walk-
through drill hole.

As you will see when you come down to visit the property, we can go in and
put our hand on the rock, channel sample it, and know exactly what it is
assaying. We get 100% recovery of the sample. There are no ifs, ands, or buts
about what's there. No second guessing it. We can see exactly which structure

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Page 38

is running and which is not. And somebody else has paid for it – all we have to
do is map it and sample it.

Peter Bell: And it's not just the Merritt decline, right? That gave you guys some joy right
off the bat – I don't know how much there is out there.

Bob Carrington: When we acquired the property, the reports we had indicated there were
about 2 miles of underground workings accessible. I would guess that we've
identified closer to 5 miles of accessible underground workings with the work
we've done.

Peter Bell: That would seem to be a material piece of information, Robert.

Bob Carrington: I don't know that it's really material, Peter. Until we get it mapped and
sampled, it's just a bunch of holes in the ground. What will, potentially,
become material in the future is the information from all the mapping and
sampling that we're doing right now.

Peter Bell: Thanks for clarifying. I've heard that you can actually use some of the saw-
cut channel samples for resource estimates!

Bob Carrington: Yes, you can use that for resource and reserve estimates. From a technical
standpoint, a well-taken channel sample is actually better than a drill sample
because you have absolute control over the volume of the sample and other
things. You know that you're not grinding any rock up and washing it away –
you're not losing it into a fracture like you can with a drill hole.

Well-done channel sampling, like the saw-cut channel sampling we did in the
Merritt decline, is absolutely usable for resource and reserve definition. And
where you have multiple levels in a mine, you can actually calculate mineable
reserves with nothing but underground channel samples. You require

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Page 39

adequate work on things like metallurgy, economics, and proper spacing on


the underground mine workings, of course.

Peter Bell: Wow. And to clarify – you sample both ribs at the Merritt decline, but you can
only really get one sample from each side, right?

Bob Carrington: The Merritt decline is 3, almost 4 meters wide. We took samples so they were
directly opposite each other and we can treat those as two drill holes that are
about four meters a part. If you look back at our press release, the average
grade all the way up the decline over 75 meters agreed extremely well on
both sides. It's almost like having 2 twin drill holes, although we've combined
those samples and figured the average grade all the way up the decline. You
have the equivalent of a drill hole on one side and a twin on the opposite side
and the average grade that we used for the decline is, in fact, the average of
those 2 sets of samples.

Peter Bell: You wouldn't be able to take another sample down one of the sides and say
that is a third drill hole, though. That's going a bit too far, I would think.

Bob Carrington: Right. It's not a large enough offset to do that, but it's an excellent twin.

When you twin a drill hole, oftentimes you'll have one hole and want to see if
you get the same values in another hole very close by. You may drill a hole
from, say, a meter to a meter-and-a-half away from the other hole and that
is essentially what we have with the two sets of samples going down the
decline. It's like having a drill hole and a twin of that drill hole, and the two
sets of numbers agreed very well.

Peter Bell: Encouraging to hear that for both the high grade and the disseminated
mineralization.

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Bob Carrington: It was striking how good the correlation was. Of course, the high-grade
samples weren't running absolutely perpendicular to the decline, so we saw
some displacement. On the right-hand rib, we saw high-grade samples in one
sample that was approximately 30 feet back from the face of the decline. On
the left-hand rib, the high grade sample was maybe 25 feet back from the
face because the structure that carried the high-grade gold wasn't running
perpendicular to the decline – it was cutting it at an angle to the decline.

Peter Bell: I’ve seen that in the 3D model from the Angry Geologist floating around out
there. Looking at other images and things, I wondered if the decline itself was
going down a fault in some way there?

Bob Carrington: The structural geology at Pamlico is so complex that no matter what direction
you drive a tunnel, you're going to be following one fault or another. They did
drive along a structural zone that's related to the greater Walker Lane, more
or less. It’s not a single fault, but it is a structural feature. There are several
structures that trend northwest semi-parallel to the decline, but the highest
grade mineralization is actually cutting the decline at anywhere from 75 to
almost 90 degrees, so most of those high grade samples that we see in the
decline are effectively true width.

Peter Bell: That would make sense with the way they built the decline in the first place.
And when you start drifting out into them for the bulk sample that you've
been talking about later this year, you’re really going to start to prove that
out.

Bob Carrington: Yes, that's one of the key things those cross cuts I've proposed will allow us
to do – to give us an excellent, hands-on look at what this high grade
mineralization is really doing.

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Peter Bell: With so much going on at the property, it's amazing that we keep talking
about the Merritt Decline!

Bob Carrington: That just happens to be where we've done most of our exploration to date.
We've really been focused on the area around that decline so that we could
build a good, predictive geologic model we can then use at other parts of the
property.

In fact, you'll see more of that coming out of this with the drilling that is going
to start on Monday. We're moving over into some of the sediment-hosted
mineralization where we are probably going to see carbonate replacement
style mineralization.

We see some of the same north-northeast trending structures out there as


seem to be carrying a lot of the high-grade in the Merritt Decline area, too. We
see that same structural family, if you will, over in the carbonate sediments.
In fact, we see visual evidence of strong mineralization along those
intersections and within the carbonates. There are interbedded rhyolite flows
and volcanic tuffs and, just like we see at Pamlico, the rhyolite is very
competent, structurally. As geologic forces build up, those hard rhyolites
focus the stress into the more friable limestones and other rocks.

We're seeing excellent ground preparation in the carbonate rocks. These


rocks have a lot of permeability and, of course, finely ground limestone is very
chemically reactive. When mineralizing fluid gets in there, there are a lot of
chemical reactions going on. We see evidence of what's called “chemical
stoping”, where the mineral-bearing fluids actually start to dissolve the
broken limestone. The more of that that goes on, the more fluid you get in
there. It becomes an engine that kind of feeds on itself and you can develop
some very large, high-grade ore bodies this way. Although I don’t want to

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make a size correlation at this time, that chemical stoping is one of the main
ore controls for some of the very high-grade deposits on the Carlin Trend.

In some cases, this early fracturing is associated with the development of


natural caverns and collapsed breccias in those caverns. When mineralizing
fluids get into those spaces, there are very dramatic and rapid chemical,
pressure, and temperature changes. You get extremely fast deposition of a
lot of mineral species, whether it's pyrite or the other sulfides that are
traveling around in solution. As that happens, you start dissolving the broken
limestone and sedimentary rocks around it and you get chemical stoping.

That's really one of the main controls for the high-grade gold deposits on the
Carlin Trend and we're seeing strong evidence of similar chaotic breccias in
these natural caverns that formed in the sediments there at Pamlico. As the
fluids got in there, these things start to react, and they can get bigger and
bigger. It's pretty exciting.

Peter Bell: “Chaotic breccias” – neat! My understanding was that the carbonates out
there in the East Zone North were just underlain by the rhyolites. I didn’t think
the softer rocks were sandwiched between the harder ones, as you saw with
the latites at the Merritt area.

Bob Carrington: That's what we thought was going on, originally, but that’s changing as we
get out there Peter. Some of the rhyolites have been so altered that they are
bleached almost to a snow-white color. At first glance, you might mistake
them for a silicified sediment. With detailed mapping, we're now starting to
see that there are, in fact sandwiched rhyolite flows and volcanic tuffs
interbedded with the carbonates.

Peter Bell: Wow. That sounds like a major development there in your understanding of
the geology there.

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Bob Carrington: It really is. It's very important and, ironically, it comes back to this
underground sampling. We didn't realize this at first from our surface
mapping – it only really came out when we started doing detailed
underground mapping. All of a sudden, we realized that we had mis-mapped
some of the silicified limestones on the surface – they are actually bleached-
white rhyolite.

That implies two things. One, there's a whole lot more rhyolite than we
realized all over the property. That tends to focus and vector the
mineralization. And, two, some of the alteration over in the carbonate
sequence is intense enough that it has bleached the otherwise tan rhyolite to
a snow-white, hard mass of silica.

In the rhyolite, the ground mass has been bleached almost snow-white but
you can still see that some of the flow banding and quartz phenocrysts have
survived. Once in a while, you'll even see the ghost of a biotite phenocryst in
there but, other than that, it's just a hard, silicious, white mass rock. With the
weathering and everything you see on the surface, it’s very easy to mistake it
for silicified limestone.

Peter Bell: I had wondered how would you get an understanding of the stratigraphy up
there in that East Zone because you don't have the holes in there yet. It’s great
to hear that the underground workings have already proved helpful to you
with that.

Bob Carrington: Yes, those walk-through drill holes have sure come in handy. You can get in
there, put your hands on it, and see what's really going on away from the
surface effects of the millions of years of weathering and erosion.

Peter Bell: And how about the weathering – are there any indications of oxidation that
you're seeing in the underground workings in the East Zone area?

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Bob Carrington: We've just recently found our way down through some of the old stopes into
the lowest level of the mine, which is a little over 300 feet below surface as
near as we can tell. We have yet to finish a survey of the workings, but there's
no indication of sulfides in any of the mineralized zones that we see – it’s just
100% oxidized. I would anticipate the oxidation over in the carbonates to
probably extend to at least around to 200 meters depth, like they do in the
volcanics at the Merritt Area. Some of the carbonates are so intensely
fractured that there's a good possibility we could be dealing with an even
deeper zone of oxidation there but I'm not sure yet.

Peter Bell: And I guess it will be some time before we hear about the nature of any gold
that's present in the area – whether is very fine grained as you're seeing at
the Merritt Area.

Bob Carrington: Yes, it's going to take a while. The assay labs are typically anywhere from 20-
30 days out. We are going to start drilling Monday and do everything humanly
possible to get those samples into the lab so that we have new assays for
PDAC. PDAC is coming faster than the laboratories want work, so we'll see if
that works out.

Peter Bell: I'm sure there are a lot of others out there that are thinking the same thing.

Bob Carrington: Yes, it would be nice to have everything going sooner but there are some
things you just can't rush. One of the things you don't want to do is start
drilling half-cocked. There is also a big winter storm that has moved in to the
Western US here, which has slowed down some of the transportation of
equipment.

Peter Bell: There's a big high-pressure up here in the Pacific Northwest and I hope it rolls
down your way. Big blue skies up here right now.

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Bob Carrington: That's nice for you – I think you probably got the high pressure that was
protecting us for so long. We desperately need the snow because this is the
first snow I've had on the ground so far this year. If we continue to have a nice
sunny, warm, dry winter, then we are going to pay for it dearly come August.

Peter Bell: It's been pretty tough in the South-Western USA for the last few years.

Bob Carrington: Yes, it's been terrible here.

Peter Bell: And you mentioned delays on the logistical sides of things, nothing
catastrophic I hope?

Bob Carrington: No. The delays actually gave us a chance to go back and double check some
of the mapping, refine some of the structural modeling, and do a better job of
targeting the first drill holes in the sediments.

Peter Bell: Good. I would think you really want to be careful when you're going
underground, safety-wise. It's potentially very dangerous.

Bob Carrington: It's extremely dangerous. For the most part I make sure I'm usually the first
one in because I have a lot of underground experience in old mines like that. I
was Chief Geologist on at Comstock for many years and I've virtually grown
up around underground mining. I helped my father sink a shaft when I was
nine years old. I've been doing this for a while. I like to make sure everything's
safe before I let a field crew go into a mine heading that nobody's been in for
many years.

There are so many things that can be dangerous. Over time, rocks actually
start to sag and you can have big slabs that come loose. If somebody is not
paying attention and hammers on a rock, then you can have a two tonne piece
of rock come down all of a sudden and hit you on the head.

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Dry rot is a major problem, especially in old mines. For the most part, the
mines at Pamlico are so dry that there is no evidence of dry rot. If you have
dry rot, then you can put weight onto a timber that looks as good as the day
it was put and it can just crumble. I've literally seen situations where you could
crumble an eight inch square timber with your bare hands. The weight of the
rock above that can kill somebody.

Safety is always the first issue.

Peter Bell: And are you seeing evidence of square set timbering attributed to Philip
Deidesheimer at the Comstock?

Bob Carrington: No. Square set timbering is extremely expensive, almost prohibitively so in
modern mining. If we were going to mine underground at Pamlico, then we
would use some modern underground mining technique like vertical crater
retreat or end slicing. I don't really think block caving would be an appropriate
mining technique there, but that's a long way down the road.

Peter Bell: Have you seen any evidence that block caving was used in the underground
workings you've been into at Pamlico?

Bob Carrington: No, not at Pamlico. In the future, end slicing or vertical crater retreat would
be a potential mining method. Most gold deposits in the world are not large
enough to effectively operate a block caving scenario – block caving really
relies on being able to open up immense areas and then use the weight of the
rock to cause it to break and collapse into the stope. Then, you draw the
broken rock out through big draw points. At Pamlico, the stoping is generally
either shrink stoping or open stopes, which are then backfilled with
development waste. That is very common for some of the old-time mining.
They did a lot of backfilling to try and support the ground because the ground

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around Pamlico is quite broken. That's one of the reasons we see the very
deep zone of oxidation.

In fact, that high degree of fracturing and brecciation is extremely favorable for heap leaching
because the rock can be crushed more easily. There may even be the
possibility that you could operate a heap leach with just break of mine. You
can use a break of mine when proper blasting procedures allow you to get
enough fragmentation that you can stack directly on a heap leach without
even using a crushing plant, which would save a lot of money. Right now, I
have no hard physical proof that we will be able to do that at Pamlico.

Peter Bell: Wow! No crushing plant, no agglomeration unit – that's a stunning thing to
hear.

Bob Carrington: Again, I have no proof that we'll be able to do that at Pamlico, but the rock
appears to be broken enough to do it. With most of the gold seeming to form
on open fracture surfaces of that highly fractured rock, it will certainly be
something that will look at as we go into metallurgical work later this year.

Peter Bell: And it is later this year, right? This isn't something that you might investigate
in 5 or 10 years, this is immediate.

Bob Carrington: Yes, we're in the process right now of selecting drill samples for initial
metallurgical work. Going forward, we will be taking bulk samples of leach-
grade material for large diameter column tests and some of those samples
will be taken so we can evaluate what would be a break of mine leach.

Peter Bell: Wild! It is important to have an experienced hand at the helm here!

Bob Carrington: I'm dying to get to the point where we have the answers on the metallurgy,
Peter, because metallurgy is what really determines the cutoff for your
deposit. If everything works out as well as it possibly could, then you could be

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looking at amazingly low cutoffs at Pamlico. We already have several mines


in the state of Nevada that are operating open-pit heap leaches with 100 ppb
cutoff.

Peter Bell: That's 0.1-grams per tonne?

Bob Carrington: 0.1-grams per tonne. That’s the cutoff. When I started my career, most assay
labs couldn't assay to 0.1-grams.

Peter Bell: Amazing. Your experience in the industry is quite impressive. I love how it was
actually something about your father that allowed Newrange Gold to scoop
the Pamlico project.

Bob Carrington: Yes, my father was friends with the patriarch of the Merritt family that owned
the property and that we acquired it from.

Peter Bell: That's going back decades – these long-term relationships that are very
important in the exploration business.

A question for you about cutoff grades. There was some noise on the internet
following the recent results you released around the residual grades in the
holes. Going back to July 2017, it was something that people have talked
about. What is the residual grade when you take out the high-grade hits in
any one particular hole. I think I’ve seen residual grades around 0.6- or 0.7-
grams per tonne in recent holes, which sounds okay to me!

Bob Carrington: Yes, we saw all that Peter. Some of the people tried to make it sound as
though that was negative, but I look at most drill results that people are all in
awe of today and I see “good grades” at half-a-gram and lower! After you take
all the high-grade out of our holes and calculate the average grade, you still
have a good, respectable grade for an open-pit heap leach at Pamlico.

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It's kind of funny that people tried to paint it as so negative because they
really did us a favour by pointing it out! I've pointed it out myself – if you take
all the high grade out, then it's still good leach-grade ore. Here's somebody
trying to slam us and the best they could do is to essentially confirm that yes,
it is good leach-grade ore.

Peter Bell: Well, that's the question: Is 0.7 a good grade or not?

Bob Carrington: It totally depends on a lot of things – all the aspects of the ore body itself and
everything else. If your ore body is at the surface and it's all oxidized, like we
see at Pamlico, and it works in a heap leach, then 0.7 is an excellent grade.
There are multi-million-ounce mines in Nevada operating at grades in the
0.4-gram range and they're running with a 0.1-gram cutoff. At least one of
those mines is looking at reducing their cutoff grades! Having a 0.7-gram
grade on it’s own is a pretty fair start.

Peter Bell: I wondered if that 0.7-gram grade is pretty consistent across the length of the
holes, or if it you see lower grades further away from the high-grade
intercepts?

Bob Carrington: Yes, there is definitely some of that – every mineral deposit tends to trail off
like that, especially when you get into the lower grade bulk-mineable
scenarios where it becomes all about how much rock can you move
economically. There may still be a whole lot of metal out there below that
assay point that you can no longer afford to mine and recover economically.

If you have good metallurgy and the deposit has good aspects with shape and
depth of the ore body, then a half-a-gram is an outstanding grade. If you have
a deep ore body that is refractory, then it’s a different story. You know, there
are huge ore bodies on the Carlin Trend that run over 5-grams that are not
being mined because the ore is refractory, or it's deep, or they have water

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problems up there. In fact, it’s a mistake to call them ore bodies – they are
large mineralized deposits. Ore is something you can make a profit out of!

Peter Bell: The Economic Definition of Ore!

Bob Carrington: If you can't make a profit at it, then it's not ore. It doesn't matter how much
gold or silver or anything else is in it.

Peter Bell: Hearing you say this also reminds me that there's a trade-off between the
lengths of those disseminated intervals and the average grade in the
intercept.

Bob Carrington: If you go with a zero-cutoff grade, then we almost don't have any drill
samples at Pamlico that are barren. Out of the roughly 10,000 feet of drilling
we've done there, I don't think we have 100 feet that was actually barren.
Almost everything has a small amount of gold in it, which shows us that
Pamlico has tremendous potential to be a very large system where we have
adequate ground preparation and good feeder zones along some of these
high angle structures we've identified. I think we have great potential to see
a very large bulk minable system that is cut periodically by these extremely
high grade feeders.

Peter Bell: And looking at the plan map showing where the holes were drilled at Pamlico,
it seems like they were put in some pretty careful spots with a lot of really
tight spacing. A cluster here, another cluster there –mostly associated with
the end of the decline. It seemed clear to me that there was a lot of thought
put into locating those holes and it sets you up nicely for a resource estimate.

Bob Carrington: Yes, Peter. That was part of the goal. There was a lot of thought put into those
holes. We wanted to test the ideas that various geologists on our team had

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about what was controlling the gold – what was an important structural
direction and what wasn't.

Peter Bell: There was a fence of holes off of to the northwest in the midsection of the
decline with lower grades that didn't hit as broad intervals of gold and that
seemed not particularly surprising to me. Maybe even good thing if it leaves
the southeast direction open but settles the question about moving to the
Northwest for now.

Bob Carrington: It’s an interesting idea, Peter, but it’s up for debate. There is a less receptive
volcano sedimentary unit that covers the rhyolite and latite up where some
of those holes were drilled and those holes were drilled to test purely
structural projections into the volcano sedimentary package.

One of the things we see clearly is that the structures we were looking for are
there in the volcano sedimentary sequence, but that particular area is not
good host rock – it doesn't sustain good, open fractures. You may have a
structure that goes through there, but you don't really get any dissemination
or even any good vein development.

Peter Bell: Is that a localized phenomenon there, maybe from a lack of movement in that
particular area?

Bob Carrington: I guess the best way you could describe that particular rock formation is as
kind of gooey. It would have about the consistency of toothpaste compared
to the rhyolite or even the latite.

Even when you get movement in that area, it just accommodates the
movement by slipping very easily. Nothing stays open and it doesn't develop
any big breccia zones or any fractures that the mineralizing fluids can really
penetrate and start to develop a deposit.

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Moving off further to the Northwest beyond where we see the volcano-
sedimentary package, we have reason to believe that there are carbonate
sediments and latites out in the area that we call the Pediment. That
Pediment Area will almost certainly see some drilling this year. Everybody
here thinks that that pediment area is an excellent target.

We see outcrop around the margins of that Pediment that shows incredibly
strong alteration in all the rock types, whether they are volcanic, carbonate
sediments, or whatever else all the way around the margins of the Pediment.
There is one outcrop that we announced early in 2016 – a saw-cut channel
sample from one piece of outcrop with a quartz vein that ran a meter and a
half of almost 4-grams gold. That is a very exciting area for us.

We know from that one sample that there is gold out there. Also, we see what
we believe is sub-crop in some of the washes that indicates the latite is
probably faulted back up to the surface.

Peter Bell: Oh, interesting.

Bob Carrington: We may have some outstanding targets in that Pediment Area that nobody
has ever looked at before.

Peter Bell: And by drilling the Pediment after the East Zone and the Merritt Area, you will
have a sense for gold in both the latite and the carbonate replacements
systems. I’m not sure which you'll see at Pediment, but I imagine it will help
to have seen both before you go there.

Bob Carrington: One thing to keep in mind is we're not drilling core, we're drilling Reverse
Circulation. One of the key issues is that core sample provides very good
structural information but it tends to be a very small sample. The reverse
circulation gives a bigger in terms of the volume of rock. We sample a column

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of rock that is 5.5 inches in diameter and the entire length of the sample,
which is many orders of magnitude larger than the core samples. It's typically
more representative and gives much better information as far as the average
grade of the interval that you drill through.

Peter Bell: I believe you mentioned that water used with the core drilling can sometimes
displace the gold from some of the latite units as well.

Bob Carrington: When you visit the property, you'll see some of the samples in the Merritt
Decline where we have 180-gram samples. It's almost not rock – it’s almost a
powder. If you drilled into that with core with water, then it's just going to turn
into a slurry and either wash off into the fractures in the rock or just get
ground up and land in your mud bed.

Peter Bell: Yes, thank you. That's been another thing people have been debating. I've
tried to explain it, but the best I can do is try and repeat what you said at this
point!

Bob Carrington: The argument as to core versus RC is as old as the two drilling techniques.
Each one has its purposes and uses. We will eventually drill some core, but it's
going to be extremely large-diameter core – PQ core instead of the N or H core
that most people drill. PQ diameter core is very expensive to drill, but it's the
smallest core that I think stands a reasonable chance of getting good
recovery through some of the mineralized zones we are drilling.

Peter Bell: And the drilling to start Monday is going to be RC again, right?

Bob Carrington: Yes, that will be RC.

In addition to a much larger sample volume, I can drill RC with a direct drilling
cost of about $30 per meter. Most of the time, you have a hard time drilling

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core for less than $100 per meter! This helps make the exploration budget go
much farther.

Also, the penetration rate for RC is typically three- to four-times faster than
with core. I can drill a hundred meters in 8 hours with RC easily. Nobody's
going to drill 100 meters with core in Nevada in 8 hours.

Peter Bell: And the rig you are using is track-mounted, which helps you move quickly. It
can adjust the drilling angle, too. It’s pretty serious machinery.

Bob Carrington: Yes, it is. Those are heavy-duty, expensive machines. They're specifically built
for a particular purpose.

It's like any tool – the RC drills do some things very well and core drills do
other things well. When you're building a house, you need saw and a hammer.
If you only have a saw, then you're not going to drive very many nails.

Peter Bell: Were the stratigraphic sections based on core holes?

Bob Carrington: No, those were RC.

Peter Bell: Really?

Bob Carrington: Yes. When you go through a lithologic contact as you're drilling, from rhyolite
to andesite say, you may get a five-foot sample that has mixing. If the sample
above was one rock type and the sample below was another rock type, then
you know that somewhere within that five-foot interval was the place where
the rock type changed. If your geologist is really on top of it, then they can
notice when one sample is 75% rhyolite and 25% andesite to infer that the
top 3 feet was probably rhyolite and the bottom 2 feet was andesite. Now,
you're getting your geological context down pretty tight.

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Peter Bell: I guess it helps to have some broad units to deal with all.

Bob Carrington: Right. We're not looking for little two inch fractures and veins – we're looking
for much bigger things. We've also made great use of the downhole
televiewer, which essentially takes oriented photographs of the hole and
digitally wraps them into a photograph of what the core would look like. You
can go through with the software and pick the core angles and pick all the
structures to actually see the change in the rock types. With the logs and the
chip trays that we take from the RC combined with the televiewer data, we
get extremely accurate structural information – as good as any core drilling.

Peter Bell: Thank you – I wondered if you were using downhole imaging. RC and
downhole imaging together is a really strong one-two punch. They go
together really well.

Bob Carrington: We definitely have been using it. It is expensive, but is still a lot cheaper than
drilling core.

Peter Bell: And quicker, I would think.

You mentioned excavators for drill pads – do you need pads or do you just
need some kind of soft spot for the machine to set up?

Bob Carrington: We are going to have to build some access roads in and drill pads. Some of
our drilling is going to be in steeper terrain than before. That is one of the nice
things about starting at the Merritt Decline – the topography was so flat you
just drove up there and started drilling.

Peter Bell: Well, you're in Nevada so you can get access to all the things you will need to
do a good job. We're just about to reach the hour mark here, so I should bring
this to a close. Thank you very much, Robert, it’s always a pleasure to talk to
you.

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Disclaimers

This document contains statements that are forward looking statements and are subject to
various risks and uncertainties concerning the specific factors disclosed under the heading “Risk
Factors” and elsewhere in the Company’s periodic filings with Canadian securities regulators.
Such information contained herein represents management’s best judgment as of the date
hereof based on information currently available. The Company does not assume the obligation
to update any forward-looking statement.

Mr. Robert G. Carrington, P. Geo, a Qualified Person as defined by National Instrument 43-101,
the President and CEO of the Company, has reviewed, verified and approved for disclosure the
technical information contained in this document.

Peter Bell has been compensated to prepare and distribute this promotional material.

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