Categories: Precious Metals
Topics: General Precious Metals

Chairman Amir Adnani Discusses Brazil Resources' Gold Mineral Banking Strategy & Uranium Optionality

July 20, 2016

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is entrepreneur, chairman and founder of Brazil Resources (TSX-V: BRI)(OTC: BRIZF), Amir Adnani. He is the founding chief executive officer and director of Uranium Energy Corp (NYSE: UEC), a New York stock exchange market listed uranium mining and exploration company. Under his leadership UEC moved from concept to initial production in the US in 5 years and has developed a pipeline of low-cost near term production projects. Amir thank you for joining me today.

Amir Adnani: It's great to be with you Gerardo.

Gerardo Del Real: We're thankful that you made some time for us. Amir, I provided a little background there but for those that aren't familiar with you can you please share with us how you got involved in the resource industry and Brazil Resources specifically?

Amir Adnani: Yes. For me really there's some background information here that might be helpful. Being based in Vancouver and having graduated from the University of British Columbia, it's sort of like coming out of universities in Southern California or in the areas where you're close to Silicon Valley and finding it easy to end up in the technology business. What I mean is Vancouver's really become the Mecca, or epicenter, of junior exploration and mining worldwide.

I was always very attracted to this business, in fact my family and my father were in the commodity business so this is something that I felt like I had in my blood. I was very interested in entrepreneurship and starting and building businesses. After a number of years spent in the business, I was fortunate enough to team up with the right people and co-found Uranium Energy Corp in 2005, as you pointed out, and really start with that company and lead it as the CEO from inception to, you touched on this, into production and really grow the business with projects in the US and then down into South America, in Paraguay where we've become quite active.

That's a company that I've spent the last 11 years developing. As we looked around, and in 2010/2011 I was becoming very interested in gold. I was very interested in the opportunity to again team up with the right people to create a new gold company. I was quite fascinated with a relationship that I was developing in Brazil with one of the most prestigious investment groups in that country called Brasilinvest. I was quite intrigued by the fact that over a 30-year history Brasilinvest hadn't backed or gotten involved with a gold company yet, so we thought, "Let's make this the first." They have been great partners and we founded the company together with them and their chairman at that bank, Mario Garnero, who's been on our board ever since founding the company with me.

Here we are 6 years later focusing on the same areas that UEC became really good at understanding how to operate in. We're in the United States, we're in Brazil, we're in South America, and obviously the Americas broadly speaking. But we've really built a base that was initially centered around the right people, the right financial backing, and from there we've gone on a acquisition spree over the last 5 years, putting our projects and our portfolio together.

Gerardo Del Real: Fantastic. Now you mentioned being active Amir, and obviously Brazil resources has been very active. You were very active during this bear market and it appears that we're transitioning into a post-Brexit world that seems to have laid a very solid foundation for a better junior resource and gold market. Investors and speculators are finally waking up, I believe, to the work that your team has been able to do. That work now includes 3.2 million gold ounces in the indicated category and 7 million gold ounces in the inferred category, which of course is over 10 million ounces of gold across all categories and I believe 13 million gold equivalent ounces, which is obviously impressive.

However if you take the enterprise value of Brazil Resources and you divide that by the company's gold in the ground across all categories, you're actually near the bottom valuation-wise at about $26 per ounce. Can you share with us how you were able to achieve the kind of growth that you've achieved in such a tough market?

Amir Adnani: You know, the timing was everything. When you look at the commodity business and the gold market between 2011 and late 2015, it was a brutal market. It was horrible. Gold prices were going down, commodity prices were weak, US dollar was very strong and in the same city that I was talking about, Vancouver, it was impossible for junior resource companies to raise any capital, share prices were under pressure. You have to imagine the environment that we were in between 2011 and 2015.

In that context Brazil Resources was able to really capitalize on the stronger financial backing that we had. The strong support and sponsorship of some of the groups that I mentioned already like Brasilinvest and some of the other notable institutional investors that we can talk about later. But to come back to the strategy, I think the trend was our friend, in the sense that there was a down trend. It was becoming very difficult to do deals out there. We were able to pick up projects and make acquisitions not over night, not over a quick period but really over a good chunk of time where we were able to properly do due diligence, properly find opportunities, not rush into any old deal, and really pick up as the saying goes, and it literally was the case, picking projects for cents on the dollar.

Literally we're talking about a situation where the same projects that in 2009 or 2010, the companies that previously owned these assets had spent 50 million, 70 million, hundreds of millions of dollars into these things, we were able to pick up for a fraction of that. That to me was the opportunity that we were able to capitalize on. It didn't happen overnight, it didn't happen over 6 or 12 months. This took took place over 4 years. I guess what's really important to appreciate is that it really has taken a considerable amount of time and patience that we exercised and financial strength that we were able to obtain and leverage to make acquisitions during the downturn.

I think that's how you create value in the junior mining business and the resource business. You create a lot of value out of a property or project, really based on what you pay for it. If you come in at the low end of a value curve and you pay very little for something that has been previously explored and developed, you have less downside in terms of valuation risk and you leave a lot of room on the table for your shareholders and your company to realize once the commodity cycle turns, and the commodity cycles inevitably always turn because this is the most cyclical business in the world.

I think that is a very key part to our equation. It was also about being disciplined and going after jurisdictions and projects that we felt comfortable with. We felt comfortable in Brazil due to the fact that we had a substantial local partner, Brasilinvest. Again when you look these guys up, when you look at who they are, it is not only a very prestigious group, it's a group that has been around in Brazil, active, for over 30 years. Has been involved with various industries in Brazil, not just mining. It's a very multi-faceted and well connected group, both financially, politically and in the business community.

This is a very strong local partner to have. This was obviously also one of the largest and most well established mining jurisdictions in the world with very established mining law and also a very diversified economy. It's a big place and a big economy, and a good place to be. When you look at the moves that we've made in other jurisdictions, like Alaska and the United States, we have a lot of history in the US. I've spent, like we talked about with Uranium Energy, the last 11 years building a uranium mining company in the United States. We understand the country and the jurisdiction and the issues you deal with when it comes to advancing projects and permitting, et cetera.

We felt we were going after acquisitions that were in jurisdictions and areas where we had the know-how, the technical wherewithal and understanding of these regions, and we were able to unlock value on top of the fact that we were buying at the bottom of the cycle or during a major down trend.

Gerardo Del Real: Absolutely. Amir, you mentioned the cyclicality of the commodity sector and obviously taking that contrarian approach. For those that are unfamiliar with Brazil Resources, the company has some of the most influential voices in the resource space, some of the top contrarians. Names like Rick Rule and Doug Casey and Marin Katusa, as well as you mentioned a very strategic partner in Brazil, the prestigious Brasilinvest group, one of the top private groups in Brazil.

Insider ownership is also approximately 30% if I'm not mistaken. To what do you credit being able to secure the backing of such prominent players and partners in this space? Especially as you mentioned in such a brutal market, leading up to what now appears to be a friendlier market?

Amir Adnani: It really comes down to a combination of things, really about the entire team that you're able to attract and put in place and your ability to instill confidence in your investors that you're able to execute. You know, track record is everything, execution. It's not really in my mind about just coming to the table and saying, "Look at how great our resumes are as a team and back us." No, I mean I think any investor, especially any sector focused successful investors like the names you mentioned that have backed us, they want to see results.

They want to see execution, they want to see that as a company you're able to execute. It's one thing to have a vision and a strategy but that you can actually execute that. I would say that it was important that obviously at the very beginning we were able to attract and put together a team that technically demonstrated that we would have the right combination of skill sets to identify and acquire the projects that we were interested in, and that we would start to execute and show that we were carrying out the business effectively.

It was really a process, as we demonstrated to our key backers and investors after a year, after a year and a half, after 2 years, of how we were running this business and how we were executing the business. Frankly it really improved our confidence in us, and instead of going out there and putting money down or making more investments into 20 different companies as the sector got worse, I think the companies and groups that were definitely able to attract more capital, attracted more of the capital from the same group of investors. The investors that have backed us have continued to invest and increased their position in the company and stayed with the company, because they've seen that our team has been able to execute on the vision and deliver the goods and get the right deals done.

I think that's very key. When you look at how Uranium Energy Corp has developed over the last 10 or 11 years, it's the same thing. Today despite the fact that we're in a very difficult uranium market environment, we can demonstrate that still some of the top institutional investors in the world, whether it's BlackRock, or JP Morgan Asset Management, or names like Sprott that you mentioned already, are key supporters and backers of the company. Again that's in a difficult uranium market environment, but nonetheless they're there. I think it speaks to the track record and what they've seen us be able to execute and deliver, and the same of course, back to Brazil Resources.

Gerardo Del Real: Absolutely. Now Amir you mentioned being able to execute and deliver, can you share with us a little bit about the gold projects you have in Brazil?

Amir Adnani: You know, we were quite interested at the very beginning to lay the foundation in Brazil and focus in areas where we can have concentration. Brazil is a big country, we didn't want to be all over the place in Brazil. It's important, just like in the United States where you want to pick a state, it's a big country and you don't want to be spread between, from New Mexico to California to Nevada. It's a big place and each state could be a country. We had the same attitude towards Brazil. We wanted to go after an area that we thought was lightly explored for gold but had a proven background or gold endowment based on historic activity, and that there was some element that would have an economic incentive.

Long story short we focused on Para state. Para state is in northern Brazil, and this is an area that within Para state there's a specific gold region near a town called Nuevo Progreso that is the largest alluvial gold mining region in all of Brazil, third largest in the world. You're talking about having a history of artisanal gold mining, and artisanal gold mining being really a fantastic exploration tool where you can see that gold has been mined from surface by mom and pop type of operators, but no modern exploration or drilling or deeper look at the geology has taken place.

This is definitely a perfect recipe for success in other parts of the world where major gold deposits have been discovered. We felt this was a great criteria for this area. Now this part of Brazil, Para state, this state is the poorest state in all of Brazil, so as a result the government has incentivized economic activity here by lowering the tax rate. It has the lowest tax rate in all of Brazil compared to other states. There is some infrastructure that has now been developed, paved road, power line, that passes through this region, in particular just about a couple of kilometers away from our main flagship project Sao Jorge, which adds, of all a sudden another major needed ingredient to a successful mining play which is infrastructure.

You add it all up and we felt that this was where we wanted to concentrate. We wanted to concentrate in one state, that way we would have all of our focus and emphasis in one region, we would understand it well, we would focus on the the permitting which is handled at the state level in Brazil. We would learn and become efficient in that process. What we are and have been focused on acquiring are near surface gold mineralization projects so they would be amenable in the future to open pit mining, so the style of geology, the style of future operation would be similar and would have synergies. All of this goes behind what our thought process has been, to acquire the portfolio that we have today, which basically are 4 different projects at a resource stage with a handful of other projects at an exploration stage.

Again the 4 resource projects are in Para state, the flagship being Sao Jorge. The Sao Jorge project has a history where just in exploration drilling alone there's been over 40 million US dollars spent, about 145 diamond drill holes. The work that has been done outlines a near surface mineralization. The indicated ounces are grading about 1.54 grams per ton. This is with only 10% of the projects explored. There's a great deal of room for exploration upside.

[See Table 1, Brazil Resources Inc. Mineral Resource Statement as of July 2016]

Already we feel this initial resource -- based on historic work that has been done, including engineering, including a historic preliminary economic assessment -- could have very competitive and robust set of economics around future operations. We currently have applied for the project to be converted from an exploration concession into a mining concession. The proximity to infrastructure, it's fantastic to be just a couple of kilometers away from a paved highway, power line coming onto the property and towards where the first initial pit would be, where the initial resources are, and seeing a lot of great development around us.

Within Para state you have a number of other companies that are involved that are raising money right now, that really shows market interest for this area in my opinion. You have mid-tier producers, majors that are either directly or indirectly getting involved in this state, in Para state. It's also important to be not the only company in this neighborhood. We really feel that this is an emerging area right now. Capital is definitely coming into the area.

Gerardo, the other thing is that this is an incredible time to be in Brazil. The gold price in Brazilian Real, the local currency, is at an all-time high. It's devalued to the US dollar, such that just 2 and a half years ago, 3 years ago, 1 US dollar was equal to about 2 Brazilian Reals. Today 1 US dollar is almost equal to 3 or 3 and a half Brazilian Reals. There's been a really serious devaluation of the currency. It's a great time to be buying assets in Brazil, it's a great time to be doing business, you get so much more mileage for your dollar.

That currency advantage is also a huge reason in addition to the geological and technical reasons that I think we're seeing this interest in gold exploration and mining really coming back into Brazil in a strong way year to date. We're well positioned because we've been there now for the last 5 years. We established ourselves, we established a great team, great partners locally, Brasilinvest that we talked about. We're very well positioned to take advantage of this emerging gold opportunity in Brazil right now.

Gerardo Del Real: Fantastic. That sounds like an exciting time in Brazil. Now you also own a district-scale play in Alaska, the Whistler project, that you were able to purchase on pretty favorable terms. Can you tell us a little bit about Whistler and the potential there?

Amir Adnani: Yes. That was a different strategy, in the sense that last summer we were looking for more acquisitions. We really felt we wanted to cast a wider net outside of just Brazil, because to some extent we felt last summer was an ideal time to look for large porphyry type projects because they were carrying the biggest discount last summer. Last summer, you have to just imagine what was going on. If you'd look back to last summer, we had gold hovering at around $1050 an ounce. People were convinced that it was going lower. Big banks like Goldman Sachs were talking about gold going to $900. That's the environment we were in last summer.

The US dollar was very strong, so of course if you had a project as a company that required big capital expenditures and it was situated in the US, you were not getting any credit in the market. These things were being valued at nothing because people basically said, "Look, you've got the currency discount, you've got the large CAPEX discount," and these things, they didn't work in the kind of market environment we had last summer.

We thought, "Hey, this is the perfect time to buy. Those are exactly the types of projects we want to buy." Of course again as I mentioned, the US is a jurisdiction we've got a great deal of experience in, and Alaska is a incredibly mining friendly state, there are a number of handful of mines already in production there, major companies, juniors, are in a number of advanced stage projects there, that are going through permitting, especially in the gold space. We felt very comfortable with this as a jurisdiction.

The Whistler project really isn't a project, it's a district. As you mentioned, it's 170 square kilometer district that was being explored and looked at by Kennecott Rio Tinto, it came out of that and a number of juniors were working on it. Over $50 million of work has been done. What they've discovered is basically, over this 170 square kilometer area you have a gold porphyry district, a number of different targets, and by now since our acquisition we now have shown that 3 separate 43-101 resources have been established here. Quite a bit of detail about these resources, I encourage your readers or your listeners to really refer them back to our material, to look at the breakdown of all the resources we have on this project.

[See Table 1, Brazil Resources Inc. Mineral Resource Statement as of July 2016] 

 Gerardo by any definition, this is a big project, big resources. Maybe it could be discounted when the markets were terrible, but I can tell you at $1,350 gold, and this post-Brexit world that we're in where there's great deal of conviction by market participants and by myself and people interested in gold, that gold is really in a new multi-year bull market. Projects like this are hard to find. Big deposits, things that can be greater than 5 million ounces of gold. These are harder and harder to find, especially in geo-politically stable jurisdictions.

These are all the facts that we've become quite excited about this project, our timing to acquire it was in retrospect and in hindsight, looks like it was ideally timed to pick up the project again for cents on the dollar, again relative to what even the historic spent was on the project, which was over $50 million. We acquired it for less than 3% dilution. Again it was about timing, and in the mining business as I mentioned how you create value is based on what you buy, and the price that you pay and where in the cycle you are when you're buying an asset.

In retrospect you can say that last summer perhaps was the bottom of the cycle. Time will tell but I think really that was an optimum time to have purchased an asset like this. Again today after 6 months of ownership, I guess it's actually closer to 9 months of ownership of that project, we've managed to produce 3 separate 43-101 reports and 2 of them were only released in the last 3 months. Part of where I think we're coming up the value curve and we're behind many of the peer group examples that you alluded to at the beginning of your interview, has to do with the fact that our story's really evolving and gaining quite a bit of traction and momentum in the last few months because of these additional resources that we've produced and reported on the Whistler project. It is new and we're getting the word out about what these assets are and what this projects mean, but as you can appreciate it takes time to also get the story out.

Gerardo Del Real: Absolutely. Amir, we talked about the gold projects and those sound exciting and the upside potential there is obvious, but you also have a very unique asset in the Western Athabasca Basin, a uranium asset near large and high grade discoveries by both Fission and NextGen. Can you tell us a bit about that project?

Amir Adnani: Yes. Through a great deal of serendipity in 2013 when we acquired a company called Brazilian Gold Corp, our main interest in acquiring that company was as the name suggests they're Brazilian Gold projects. But that company from back in 2005 had a uranium property in Western Athabasca Basin. Even in 2013 no one thought much of Western Athabasca Basin because the only company in 2013 that was really generating good results in that part of the world in Canada would have been Fission. To this day, Fission obviously has delivered some spectacular results and a great looking deposit in Western Athabasca. But 2013 was still early days.

Now where we got lucky is the fact that this uranium project came as part of our acquisition and within months and within a year of our acquisition closing we've gone from sitting next to basically maybe a combined $150 million market cap, that being the market cap of other companies in this area, and today with the success of Fission and NextGen and a number of other companies that are basically our next door neighbors and in the same trends were sitting on next to over $1 billion of combined market caps. This area has garnered a lot of positive attention in the last few years, and we've managed to really benefit and end up in a position of having a quality uranium property in the right address at the right time with the right partner, 25% of the property that we own is owned by AREVA, 75% is owned by us.

AREVA's basically an extension of the French government and it's really a nuclear company, not just a uranium company. They build nuclear reactors, they mine uranium. 80% of French electricity generation is nuclear so this is a very important company to the French economy. They're our 25% partner in Canada. We have observed, and obviously they are very familiar with the uranium market. The uranium prices are now at a 10 year low, so I don't think right now is the ideal environment for us to monetize this property but soon I do believe it will be the perfect opportunity to spin this out into a new company and that will be a way for our shareholders and BRI to participate in this project on a standalone basis.

Once we see the uranium price recover, perhaps recover to a point closer to $40 a pound, currently the uranium price is at $26 a pound. Look, this area is interesting. This area in Canada, the Western Athabasca Basin, could become one day what the Persian Gulf is to the oil business. It's incredible to think if you could have a large land package or a concession in the Persian Gulf if you're an oil and gas company. Inside our gold company we have this kind of position.

$10 million of work has already been done on our property, including drilling. We have a drill ready property with a drill permit in hand, a 43-101 technical report, a great partner in AREVA, and one of the largest land packages actually in that area, 88,000 hectares. Great situation, we're obviously not a uranium company but because of my background with Uranium Energy we definitely know the uranium business, we're in the uranium business, so the BRI shareholders benefit from getting that expertise basically for free, and the uranium project inside a gold company is not obviously not being valued. But once we monetize it at the right time it becomes a great leverage to basically 2 yellow metals, and that's not a bad thing either.

Gerardo Del Real: That's not a bad thing at all Amir. It's looking like you're going to have a very busy second half of the year. You obviously have a great track record for adding value through accretive deals. Is there anything else you'd like to add Amir?

Amir Adnani: No. I think when you look at a good story in the resource space, it really is about checking a number of boxes. I think if we go through that box, what I feel very confident in is that you see BRI today check all the key boxes that you want to see in a solid story in a resource business. Just to go through that with you quickly, you look at how aligned and how well aligned insiders are with the shareholders. Despite the fact that our company is 6 years old, because of our ongoing participation by insiders and various financing rounds that we've done.

Insiders in our company today own 30% of the company. After 6 years that still is very meaningful insider participation and ownership. Speaking of financing rounds, because of the various rounds and our ability to keep very low cost structures, again because insiders are very aligned with equity holders, we have a good cash position. Today we have over $7 million of cash, that cash is enough to carry our business and our activities for the next couple of years. There's no immediate need for us to raise any capital. It checks the working capital and funding side of things, and that coupled with strong insider ownership.

But it's also about who owns the stock, besides management, to have some of the funds that we talked about. This broad group of companies, this is a fund that has probably become a household name to mining investors that are managing $10 billion today in assets at Sprott. You've had the chairman of that group, Rick Rule, who's been on television recently talking about their positive views of Brazil Resources and their involvement with our company. You have the KCR Fund which almost owns 17% of our company, the largest shareholders at the KCR funding Marin Katusa and legendary speculator Doug Casey. They've been on record talking about why they're backing our company.

You look at people like Brasilinvest for example, again this would be very noteworthy because BrasilInvest has done over $16 billion of investments in their 35-year history, Gerardo, and we're the first and only gold company they've ever invested in. That's quite compelling when you look at it. The chairman and founder of the bank being Mario Garnero, sits on our board of directors as one of the founding directors of the company. I don't think you would typically see this mix of people involved in a junior gold deal, but also involved with such strong vested interest. Of course all of this is very well matched with the technical capabilities that our team have.

Garnet Dawson and Paulo Pereira, the CEO and President of our company, both are geologists, combine 60 years of experience between the 2 of them in Brazil, the US and Canada. Paulo is a Brazilian, he is based in Brazil so we've got a senior member of our team on the ground in that country. Even the political experience we have at the board level, the former minister of natural resources in Canada sits on our board of directors, that's Herb Dhaliwal. The former exploration head for Kinross, the major gold company in Brazil, Enzio Garayp, is one of our advisors.

Again you look at the combination of political experience, technical experience, entrepreneurial experience, experience in Brazil, experience in the US, Canada, the jurisdictions that we're involved in, you can connect a lot of dots and having that all be backed with the balance sheet and the capabilities we've demonstrated on being able to attract the right capital from the right investors.

Gerardo Del Real: Absolutely. Amir thank you again for your time. I'm expecting a lot of news flow from Brazil Resources, and obviously I'm looking forward to having the team back on to share the progress. Thank you so much for your time Amir.

Amir Adnani: Thank you Gerardo. I look forward to coming back as we deliver news.

Gerardo Del Real: Thank you.

Table 1: Brazil Resources Inc. Mineral Resource Statement (July 2016).

Project	Cut-off	Tonnes	Gold	Silver	Copper	Gold Eq	Gold	Silver	Copper	Gold Eq
	(g/t)	(Mt)	(g/t)	(g/t)	(%)	(g/t)	(Moz)	(Moz)	(Mlbs)	(Moz)
Sao Jorge	0.3	14.420	1.54	-	-	1.54	0.715	-	-	0.715
Cachoeira	0.35	17.470	1.23	-	-	1.23	0.692	-	-	0.692
Whistler	0.3	79.200	0.51	1.97	0.17	0.88	1.280	5.03	302.00	2.250
IM	0.3	31.080	0.49	1.10	0.06	0.55	0.485	1.10	41.12	0.547
Total		142.170	0.70	1.34	0.11	0.92	3.172	6.13	343.12	4.204
Sao Jorge	0.3	28.190	1.14	-	-	1.14	1.035	-	-	1.035
Cachoeira	0.35	15.667	1.07	-	-	1.07	0.538	-	-	0.538
Boa Vista	0.5	8.470	1.23	-	-	1.23	0.336	-	-	0.336
Surubim	0.3	19.440	0.81	-	-	0.81	0.503	-	-	0.503
Whistler	0.3	145.800	0.40	1.75	0.15	0.73	1.850	8.21	467.00	3.350
IM	0.3	82.020	0.47	1.02	0.05	0.53	1.237	2.69	90.43	1.390
RW (shallow)	0.3	31.680	0.40	5.39	0.06	0.55	0.409	5.49	41.91	0.563
RW (deep)	0.6	51.760	0.68	3.74	0.10	0.86	1.130	6.22	114.13	1.428
Total		383.027	0.57	1.84	0.09	0.75	7.038	22.61	713.47	9.143

 

Table Notes:

1. Gold cut-off for all projects except for Whistler, Raintree West and Island Mountain, which is gold equivalent cut-off.

2. Gold equivalent grade for the Whistler resource assumes metal prices of US$990/oz gold, US$15.40/oz silver and US$2.91/lb copper and recoveries of 75% for gold and silver and 85% for copper.

3. Gold equivalent grade for the Island Mountain resource assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 90% for gold (cyanide), 80% for copper (flotation) and 25% silver (recovery in copper concentrate).

4. Gold equivalent for the Raintree West resource assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold, 85% for copper and 75% for silver.

5. "Technical Report and Resource Estimate on the São Jorge Gold Project, Pará State, Brazil" prepared by Porfirio Rodriguez and Leonardo de Moraes, with an effective date of November 22, 2013.

6. "Technical Report and Resource Estimate on the Cachoeira Property, Pará State, Brazil" prepared by Gregory Z. Mosher, P.Geo., with an effective date of April 17, 2013 and amended and re-stated October 2, 2013.

7. "Technical Report and Resource Estimate for the Whistler Project" prepared by Robert J. Morris, M.Sc., P.Geo., Susan C. Bird, P.Eng., and Alan Riles, B.Met., M.AIG, with an effective date of August 15, 2015 and amended and re-stated November 12, 2015.

8. "Technical Report on the Rio Novo Gold Project and Resource Estimate on the Jau Prospect, Tapajos Area, Para State, Northern Brazil" (Surubim Project) prepared by Jim Cuttle and Gary Giroux, with an effective date of November 22, 2013.

9. "Technical Report on the Boa Vista Project and Resource Estimate on the VG1 Prospect, Tapajos Area, Para State, Northern Brazil" prepared by Jim Cuttle, Gary Giroux and Michael Schmulian, with an effective date of November 22, 2013.

10. An updated technical report on the Whistler Project including the Whistler, Raintree West and Island Mountain resource estimate will be file on SEDAR in due course.

For further information regarding the Company's projects, please refer to each of the technical reports set forth above, copies of which are filed under the Company’s profile on SEDAR.

Click here to see more from GoldMining Inc.