Executive Summary

Xstract Mining Consultants (Xstract) was initially requested by Lake Victoria Gold (LVG) to
conduct an independent assessment of an internal, 1.0 to 1.6 million ounce gold resource
estimate of the Bukwimba gold project produced by Reef Gold Limited (RGL). Assessment
of data provided to analyse suggested there was insufficient information for Xstract to
undertake a desktop review of what was estimated by RGL. A change of scope was agreed
between LVG and Xstract to prepare a high-level estimate of the gold mineralisation as
delineated by four phases of drilling by RGL in two to three areas of the project. A revised
work program included constructing a geological model, brief statistical and spatial analysis,
block modelling, gold grade estimation and reporting

Provision of data

The following information was available to Xstract for the Bukwimba project estimation:
Tenement schedule outlining tenement number and area Regional and local
geological/mineralisation information Previous reports outlining Phase 1-4 of the exploration
programmes A Mineral Resource report by SRK (2010) for ‘Block F’ A presentation of
‘Exploration results up to phase 4’ reported to be from RGL but not identified A due
diligence report on the Bukwimba Gold Project by Scarab (2011) on behalf of Tanzoz (parent
company of LVG) Geological data including collar, downhole surveys, assay data and
lithology data

Other data such as geophysical and physiographical data was not greatly utilised in this
assessment. All assay data was taken on ‘face value’, QAQC analysis of drilling was beyond
the scope of this study.

Introduction

The purpose of this technical document is to give details of exploration results and the
complete process of Mineral Resource updates for the Bukwimba project. The update is
based on the drill hole data on two areas of interest which were targeted from soil
geochemistry and geophysics analysis on the southern block A, hosted in Mining Licence
ML504/2015. Those two areas are referred to as Bukwimba South and Bukwimba North in
this report.

Reef Gold Limited holds six Mining Licences (ML) issued under the Mining Act that grants
the right to mine at the Bukwimba project. In total, these Mining Licences has an area of
58.6 square kilometres and are adjacent to each other (Figure 2).

Property description and location

The Bukwimba project covers an area of 58.6 km2 and is located 170 km south of Mwanza.
The project is accessed from the town of Mwanza travelling on the Mwanza Shinyanga
Highway for about 80km. Then it branches off following 75km of gravel road to Mahangu
village. The project area is reached from Mahangu village through a dirty road for 15km.
(Figure 1).
 Figure 1: Location of Bukwimba Project relative to the city of Mwanza.

Figure 2: Bukwimba’s Six Mining Licences referred to as Blocks A to F superimposed on

magnetics image
Geological setting and mineralisation

The Bukwimba deposit, an Archean lode gold deposit, is one of several deposits within
Kahama greenstone belt hosted in a broader Lake Victoria Archean Greenstone belt of
Tanzania (Fig.3). The Kahama belt is proud of hosting world class gold mining operation/
deposits such as Barrick’s Bulyanhulu Gold Mine (16 Moz) which is located just about 30 km
southeast. Also there is Barrick’s Golden Ridge (1.6 Moz) about 7 km to the West. The belt
also hosts Ore Corp’s Nyanzaga gold deposit (3.3 Moz) about 36 km North of the Bukwimba
project.

The project area lies within the Kahama Greenstone Belt which is assigned to the upper
Nyanzian Supergroup. The group, Archean in age, is characterised by felsic lava, tuff,
ferruginous chert and banded iron formation (BIF). The maximum thickness of the BIF is
estimated to approximate 400m and the felsic tuff less than 4,000m in this belt. The project
area is interpretated to be located on the northern leg of a large ENE-trending fold structure.
The associated folds and shears are thought to have controlled the gold mineralisation.

Figure 3: Lake Victoria Goldfields; Archean greenstone belt Locating Bukwimba project with
Blue dot.

Local Geology

Rock exposure is limited to the northern areas and the geology has been interpreted from
geochemical, geophysical and drillhole data. The lithology intersected during drilling is
reported to be typical of the Lake Victoria Gold Field with intermediate volcanic rocks forming
the hanging-wall and felsic tuff the footwall of the cherty BIF. The BIF formation is dipping
SW and is intersected by south trending shear zones dipping at 70° to 80° North East.
Massive mafic and micro-diorite dykes are also present. The completed exploration has
established that gold mineralisation occurs in the proximity to the BIF and tuffs with higher
gold values often associated with pyritic, sheared and brecciated quartz veins. In the
boundary of the BIF-tuff sequence some smaller scale shears that host gold mineralisation
have been interpreted. Weathering profile has been logged down to the maximum depth of
25metres.

From ground magnetic survey done previously a prominent linear structure trending NW-SE
was depicted. Drilling on block A confirmed that the structure, which is a shear zone host
strong gold mineralisation.

Exploration Work.

The exploration program carried out on the project involved mainly geophysics survey
(ground magnetic and IP survey) and geochemistry survey which including soil sampling,
pitting and drilling.

Geophysical survey

Regional data from the Geological Survey of Tanzania was used to delineate a prospective
Bukwimba Project as the right destination for detailed exploration. The regional data and
interpretation on the area indicates the potential of the northwest – southeast structures
(NW-SE) which are thought to be related to Banded Iron Formation (BIF). Processed
Magnetics generated Reduced to Pole images which emphasise the NW-SE trending linear
structures (Figure 4). These formed drilling target for Bukwimba project.

Induced Polarization (IP) survey was done in very details on Block A and slightly beyond at
25 metres lines. The survey was able to depict highly chargeable isolated bodies within the
lineaments; the results further refined the drilling programme which were categorized based
on the sizes of the anomalies (Figure 5).

Figure 4: Processed Magnetics Reduced to Pole Image with mining Licences blocks.
Figure 5: Highly chargeable bodies depicted by IP survey in Block A, superimposed on
landsat image.

Geochemical Survey

Geochemical survey programs were carried out on targets generated from geophysical
works, these include soil sampling and pitting. Different phases of soil sampling programs
were carried out to cover all the potential sampling targets. However priority was in favour of
block A. (Figure 6). From the soil assays, anomaly can be interpreted to strike NE-SW and
validate the trend of the shear zone. Deep pitting was conducted in other blocks to the
Northern side of the Bukwimba property. Figure 7.
 Figure 6: Soil Sampling Grid on Bukwimba properties, Red Rectangle is Block A.

Figure 7: Deep pits Sampling Grid on Bukwimba properties red dots indicating anomolous
values.
Drilling

Bukwimba project has been investigated in four drilling campaigns, totalling 162 drillholes.
The main area covering most of the drilling campaigns is in Block A, ML504/2015. Table 2.

Table 2: Drilling campaigns in Block A

DRILL HOLE ID DOWNHOLE

PHASE HOLES ASSAYS
TYPE PREFIX SURVEY
1 9 RC BK1-9 9 888
1 3 RC BK13-15 3 256
1 2 RC BK19-21 2 96
2 2 RC BK10-11 2 233
2 5 DD BKD31-35 5 675
3 6 AC BKAC001-6 6 174
3 68 RC BKRC07-74 153 3184
4 67 RC BKRC075-141 330 4676
Total 162   510 10182

Targeted drill area were derived from soil geochemistry and geophysics analysis. The block
A, being the largest, was drilled in two separate areas, one to the Northern corner and the
other to the southern corner of the block. In this technical report the drilling areas are
referred to as Bukwimba South and Bukwimba North and are some 1.5 km apart. Both of
these blocks are considered to have adequate drilling density for Resources modelling.

Drilling in the southern block is generally on 80 m or 100 m section lines (Figure 8) and
drilled at a high angle to the mineralisation, testing it at around a 40 m spacing down dip.
Some infill drilling has been used to better define the main zone and splays at the southern
end where mineralisation is generally widest.

Two phases of drilling is obvious in the northern block, the first is a shallow, 30m vertical
depth aim to sample weathering profile (Regolith). The campaign drilled obliquely to the
general mineralisation strike (approximately 0200) on a 80 m grid spacing (Figure 9). A
second campaign tests mineralisation to approximately 120 m deep at a high angle to strike
but in both across-dip and down-dip directions. The down-dip drilling was carried to ascertain
the actual dipping of the orebody, although the orientation poses a risk of introducing bias to
grade estimation.
Figure 8: Bukwimba South drillholes traces in plan view

Figure 9: Bukwimba North drillholes traces in plan view

RC drilling at Bukwimba Project was performed under dry conditions using contract single
and multipurpose rigs using a standard 5.5” face sampling hammer leading a 4.5” 6m rod
string. The project geologist’s responsibilities included but were not limited to: general
supervision of all activities at the drill site, including safety, positioning of the drill holes,
quality control of sample collection, insuring the hole is sealed so no air or water is leaking
out of the collar, splitting, mixing, bagging, tagging, drill chip logging at the drill site, chip tray
sample collection, and field data validation.

All of the RC drill holes were sampled at one metre intervals for the entire length of the hole,
where possible. Each sample was collected into a plastic bucket large enough to hold
approximately 40kg of cuttings, which was held below the cyclone spigot by a drill helper. To
avoid sample contamination after a drill run was completed, blow-backs were carried out at
the end of each of the 6.0 m runs by the driller whereby the percussion bit was lifted off the
bottom of the hole and the hole blown clean. If water was encountered in the hole, the driller
was directed to dry out the hole by increasing air pressure into the hole and lifting and
lowering the rods prior to continuing the drilling. The sample cuttings for each metre were
weighed using a fish scale and recorded.

After being weighed, the sample contents from the bucket are disgorged into a multi-tier riffle
splitter. A sample is collected on one side of the splitter as a reject. The material collected in
the residue buckets on the other side of the splitter are poured back into the splitter and a 4
to 5kg sample is collected from the second split in a small pre-labelled and tagged plastic
bag for dispatch to the assay laboratory. The splitter and sample collection boxes were
cleaned by tapping the box/splitter with rubber mallet or stick after every metre drilled. A
record is made at the drill site of the sample identity numbers and corresponding intervals,
and cross checked against the pre-drilling sample sheet.

Remaining drill cuttings for each metre were placed on the ground, in drill order as piles in
rows of 10 samples for logging. Representative sieved/washed samples were also taken
from each metre drilled. These samples and chips were then put in numerical order into a
chip box. Drill cuttings of the representative rock types and geological interest intersected in
the hole were also archived in chip trays. The samples were taken back to the camp by RGL
personnel and put in a secure area until picked up and transported to the SGS laboratory in
Mwanza for preparation and assaying.

Sample Preparation, Analysis and Security.

Resource Estimation

Data verification

The drill data were provided in individual spread sheet files from each drilling phase. The
survey and collar data from different files were validated to assure conformity between the
various sources of information and run through a standard mining software validation routine
to identify significant errors for correction; drilling collar, survey, assay and lithology data
were the primary data sources for modelling.

Geological modelling
The geological interpretation centred on defining mineralisation boundaries in continuous
blocks likely to be exploitable by mining methods. Interpretation of mineralisation boundaries
was based on 3D visualisation of both gold assay and lithology data. They were generally
defined at the occurrence of anomalous gold grades (>0.3g/t Au at a minimum of 2metre
width) and in some cases included sections of lower-grade material to maintain shapes
consistency. Interpretations were generated along each of the irregularly spaced and
variously oriented drilling sections that has resulted from the four drilling campaigns and
integrated in three dimensions by wireframing and the assistance of visualisation software.

The southern block extends along a northwest strike (320 0) for 1.5km, dips at 600 to 700 to
the southwest and comprises 5 distinct zones (Figure 2, Appendix B). It is modelled to a
depth of approximately 150 m and widths vary from 2 m to 15 m. (Figure 4)

Similarly, the northern block extends for about 300metres along Northwest strike (330 0),
dipping between 650 to 800 to the southwest. The block consists of two subparallel zones.
(Figure 10).

Figure 10: Mineralisation solids for Bukwimba North (Left) and Bukwimba South Right.

Resources Estimation.

Statistical Analysis

The assay data selected from within the mineralisation wireframes was coded and
composited to the predominant sampling interval of 1m within each interpreted
mineralisation ‘lode’. Brief statistical analysis indicated gold distributions were positively
skewed and highly variable (Figure 11). Data from some zones had a top-cut applied to
reduce the possibility of high grade outliers introducing a bias to grade estimation (Table 3).

Spatial Continuity Analysis

Spatial continuity analysis was limited to the predominant zones of the southern block,
Bukwimba south. Lack of sufficient data to produce reasonable variograms within the lodes
prevented detailed analysis. In general, variogram results were poor and insufficient to
determine if there is a plunge component to mineralisation controls. For this reason the
inverse squre distance technique is used foe interpolation of grades into blocks. Reducing
the drill grid to approximately 40m sections is likely to be required to produce reasonable
variograms to generate a higher confidence resource estimate.
Fig 11: Grade distribution curves for Bukwimba drillhole samples

Table 3: Descriptive Statistics for drillhole samples

Variable Bukw South Bukw North

Mean 2.60 1.69
Standard Error 0.24 0.24
Median 1.27 0.40
Mode 0.01 0.01
Standard Deviation 4.78 5.10
Sample Variance 22.80 25.97
Kurtosis 41.86 59.25
Skewness 5.63 6.94
Range 49.19 60.00
Minimum 0.01 0.01
Maximum 49.20 60.00
Sum 1042.48 740.71
Count 401 437

Block Modelling

Block model for Bukwimba South is rotated to align the general strike of the models with a
northwest-southeast direction. This improves representation of zones volumes by a block
model because the strike is approximately aligned with a block axis. Sub-cells were
employed in the model creation to further increase the resolution of volume modelling at
mineralisation boundaries, Table 4. The origin, size and extent for Bukwimba North Block
model is shown in table 5.

Table 4: Bukwimba South rotated Block model parameters

 X Y Z
Origin 474713 9632370 948
Size 2 40 10
No of Cells 337 37 23

Datamine Rotation -50 degrees around Z axis

Table 5: Bukwimba North Block model parameters

X Y Z
Origin 473330 9635350 950
Size 25 25 5
No of Cells 260 360 170

Estimation

Inverse squared distance grade interpolation is used to estimate gold into block model
parent cells. The directions and maximum ranges of grade continuity modelled from the
variograms for the main zone of the southern block were used to determine a search
neighbourhood ellipse for selecting data (110 m strike, 80 m down-dip, 30 m across-dip).
The orientation of the search ellipse and parameters was in line with the general strike and
dip of the mineralised zones. A minimum of 5 and maximum of 20 samples was used for
estimating a block to ensure sufficient data for estimation. Estimates were validated spatially
and statistically to ensure grade bias has not been introduced into the model. Figures 13 and
14.

Figure 13: Bukwimba South - Section Looking NW – Block Model on drillhole traces
 Figure 14: Bukwimba North Plan view Bench 1100mRl – Block model depicting two
subparallel lodes

A dry bulk density of 3.05 t/m3 was applied to all mineralised zones which is observed to be
highly magnetic and/ or silicified. Away from these zones rock types are considered less
dense and a value of 2.6 t/m 3 is used. These are derived from internal report on specific
gravity determination table 18.1 (Technical Report on the Bukwimba Gold project
ML504/2015, August 2015).

Reporting And Classification

Bukwimba Resources are classified as iinferred according to JORC 2012 reporting codes.
The sparse drilling density, limited geological structural database and estimation confidence
level are the basis for classification. Table 6, categorises Resources for the Bukwimba
project. Materials reported are that which is within interpreted mineralised zones only. Figure
14.

Table 6: Bukwimba Mineral Resources Statement at 0.5g/t Au cutoff.

Area Mt Au (g/t) Metal Au (Oz)

Bukwimba South 5.27 2.77 470,150.0

Bukwimba North 1.92 2.62 161,427.0
Total Inferred Resources 7.19 2.73 631,577.0
Conclusions and Recommendations.

In conclusion, the mineralisation tested by drilling at the Bukwimba Gold Project and
estimated by MIM consultants through a reasonably rigorous modelling approach appears to
represent a small fraction of potential the Bukwimba project have. A well-defined shear zone
for about 15km has been locally tested for about 2 km on the southern part and confirmed
significant gold mineralisation. So, Potential upside revolves around the exploration the
shear zone along strike.

Mineral Resources numbers are of inferred category, which means that additional infill
drilling will improve confidence of the estimates.

More SG data would be required to cover more extensively the deposit to further ascertain
the mineralised zone average density value.

The deposit is covered by Mbuga soil or lateritic hard pan, and no obvious mineralisation
outcrops the surface; for this reason, the Bukwimba high grades zones has not been
invaded by small scale miners as would be expected elsewhere in the region. All insitu
Resources remains intact.