Revival Gold (TSX-V: RVG) CEO Hugh Agro on Upcoming Drilling, Metallurgical, Geophysical, & Regional Soil Sampling Work at the Beartrack-Arnett Creek Gold Project

April 9, 2019

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Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the President and CEO of one of the best speculations in the gold space, Mr. Hugh Agro of Revival Gold (TSX-V: RVG)(OTC: RVLGF). Hugh, thank you for joining me this morning.

Hugh Agro: Good to be back, Gerardo.

Gerardo Del Real: Exciting times for Revival and shareholders and frankly potential shareholders. You just closed a $5 million private placement in what is still a tough market for most juniors. Congratulations on that front, because $5 million in this market is an accomplishment and a milestone. Congrats there, Hugh.

Hugh Agro: Thank you. It's testament to the quality of the team and the quality of the work that the team has been doing. It is a tough market, but we had all of our institutional shareholders stand behind us on this financing. We brought in actually a couple of new ones out of Europe, so very smart money and a very good indication of the quality of the investment opportunity.

Gerardo Del Real: Well, listen, we're seeing more and more, it seems like every week, the importance of being in a stable jurisdiction. Both your assets, the past-producing producing Beartrack property and the Arnett Gold Project are in Idaho, which ranks as one of the best jurisdictions in the world. I joke that you have a 2 million ounce of gold head start. You're headed to 3 million.

I believe this exploration season will get you there. I want to talk about that. You have some important metallurgical work that I know you're undertaking right now, so if we could just touch on each of those points and what Revival shareholders can expect in the next several quarters. I mean you have a tiny market cap of approximately $25.5 million Canadian. Again, you're cashed up. You got drills ready to turn. Can we talk about what's next?

Hugh Agro: You bet, Gerardo. Just a quick correction though on your market cap figure, I think we're closer to $30 to $35 million Canadian market cap. We have 50 million shares outstanding pro forma. The financing and share price is between $0.65 and $0.75 a share. In terms of the programs going forward, as you noted, it's a tough market right now, so the emphasis is on high-return, quick-payback exploration opportunities, development opportunities.

That's why we're focused on a former producing brownfield site. By former producing in brownfields, what we mean about that is that we've got existing infrastructure on site. We've got an ADR plant. That's the plant that processes gold from leach operations. We've got power to site. We've got roads. We've got water accessibility. We've got a large core logging and storage facility. All of these things reduce the risk and heighten the return prospects for investors today, which as I say is key.

The emphasis of our work this year in 2019 is on the close to surface oxide leachable material at Beartrack-Arnett that we can leverage with this existing infrastructure. I can explain some of the details of that, but in a nutshell that's what we're focused on, high payback from the dollars we've raised over the course of the next 15 months.

Gerardo Del Real: Thank you for the correction on the market cap, Hugh. You, of course, are correct on that front. That is the post-financing market cap. I do want to touch on the infrastructure point that you made. I've been to the property. Most people, of course, have not. I know the value of the infrastructure that's there. Can you talk about why that's so important and why targeting that near-surface oxide mineralization is key moving forward, especially if we get the kind of robust gold market in the second half and moving forward that I think a lot of people are anticipating?

Hugh Agro: Two reasons, Gerardo. One is time. It takes less time to re-permit and construct an operation that already has existing infrastructure on it. The second is money. It cost less money to do that. We haven't gone down the road yet of fine-tuning on the details there, but we do know that it will take us much less time and cost us much less money to use that existing infrastructure. We want to focus on the mineralization at Beartrack that can be processed with that infrastructure. That is the oxide and leachable material at Beartrack. We have both oxide-leachable material and mill material. We have a very large structure at Beartrack, over 3 miles long, that carries mineralization.

What we've got to do with our work is focus on the high-payback, quick-return opportunity in which we can leverage that existing infrastructure. Of course, down the road, we want to be continuing to build the scope and the scale of the mineralization and look towards the mill opportunity, but that's a longer-term objective. That's the sort of thing that really attracts the big institutions and larger corporates because that's where we get the scale that warrants their attention.

Gerardo Del Real: How will you allocate the drilling? I know you said you're in the planning stages of that and I'm sure we'll know more details soon, but do you have a general idea of which project will see what amount of drilling?

Hugh Agro: A lot of fine-tuning around that is happening right now. Again, we want to get maximum bang for our buck. The emphasis will be around the Haidee target area where we tagged into oxide mineralization, all within 125 meters of drilled surface. That's in the Arnett property position. We've got over about 1,300 feet of strike length there already outlined. We want to continue to build on strike and then downdip. We'll focus our drilling attention there.

The other place we'll be drilling and will probably start the season here is in the southern end of Beartrack. Recall last year we extended the strike length of the Beartrack mineralized system by almost half a mile south of the existing resource at Beartrack. After publishing the resource in May, we got back in drilling and we continue drilling south. As I was saying earlier, we've got a very big mineralized system here, so we want to continue to progress that system south, where it's open and where it's open at depth. We want to continue to show more scale to that deposit and really get our hands around just how the big potential is there for the mill opportunity at Beartrack-Arnett.

Gerardo Del Real: Excellent. Can we touch a bit on the metallurgical test work that's going on? I know you anticipate to have an updated resource estimate for Beartrack and Arnett here within the next 15 months, give or take. Can you talk about the met work, which of course is important, right?

Hugh Agro: Yes. We did a first phase of met work of the mill material, sulfide material at Beartrack last year. The follow-up work this year will be on refining the flotation recoveries and developing variability testing across the different lithological units. That's all to complement our exercise through the course of this year to initiate an updated resource estimate. We want to try and do better with the metallurgical recoveries, and we want to extend the quality of the information we have across a broader scope of the deposit area.

At Arnett, we'll also be doing some met work. We need to work out with our consultants exactly what that should involve, whether that's bottle roll and column testing or whether we just do some bottle roll testing. But again, we've got different lithologies we're into in different mineralized areas, so we want to make sure we've got a good handle on the metallurgical response and we can reflect that in our resource update plans. A lot of people forget that a big part of a resource update is the drilling, but metallurgic is also important. We're working in tandem on those so that we can move quickly towards the resource update. We'll initiate that before the end of this year and we'll be out with the resource update in 2020.

Gerardo Del Real: Fantastic. Hugh, do you have a ballpark on when we can expect the drills to start turning?

Hugh Agro: We'll get the first rig out to site in the middle of May. We'll probably have it on its pad and drilling by the end of the month, and then we'll have a second rig move out in June. Lots of news flow to follow from the drilling.

But the other thing that's going on this year is geophysics and regional soil sample work. As I've tried to stress, we've got a big geological system here. There's been over 3.5 million ounces of gold that have been produced or discovered from the combined Beartrack-Arnett land position. There's something big going on there.

We certainly understand the mineralized structure at Beartrack. We don't have quite a clear handle on why we've got so much mineralization across such a broad area at Arnett and we want to understand better what's going on there. Hence, the regional survey work and we'll be out with results from that as they become available to us.

Gerardo Del Real: Hugh, as always, thank you for your time. Looking forward to having you back on to report on those results, that drilling program and the met work. Thanks again. Anything else that you like to add?

Hugh Agro: Just a comment around the market if I can generally. It's certainly tough out there for juniors and it's tough out there for junior investors, but we remain very confident in the theme overall. This is a good time to invest. It's a good time to be putting good projects together and, as you point out, in good geography. The key really is to back teams that can get financed, teams that have access to institutional money and deliver the results that investors are looking for. I think very strongly that Revival Gold is one of those.

Gerardo Del Real: You clearly have one of the better teams in the space. I think 2019 is going to be a lot of fun for us that have suffered through the last couple of years. Hugh, thank you for the commentary and thank you for the time and the update today.

Hugh Agro: You bet, Gerardo.

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