A. C. A. Howe International Limited

is a concentration or occurrence of natural, solid, inorganic or fossilized

organic material in or on the Earth’s crust in such form and quantity and of such grade or

quality that it has reasonable prospects of economic extraction. The location, quantity, grade,

geological characteristics and continuity of a Mineral Resource are known, estimated or

interpreted from specific geological evidence and knowledge.

The term Mineral Resource cover mineralization and natural material of intrinsic economic

interest which has been identified and estimated through exploration and sampling and within

which Mineral Reserves may subsequently defined by the consideration and application of

technical, economic, legal, environmental, socio-economic, and governmental factors. The

phrase “reasonable prospect of economic extraction” implies a judgement by the Qualified

Person in respect of the technical and economic factors likely to influence the prospect of

economic extraction. A Mineral Resource is an inventory of mineralization that under

realistically assumed and justifiable technical and economic conditions might become

economically extractable. These assumptions must be presented explicitly in both public and

technical reports.

An

is that part of a Mineral Resource for which quantity and

grade or quality can be estimated on the basis of geological evidence and reasonably assumed,

but not verified, geological and grade continuity. The estimate is based on limited

information and sampling gathered through appropriate techniques from locations such as

outcrops, trenches, pits, workings, and drill holes.

An

is that part of a Mineral Resource for which quantity, grade

or quality, densities, shapes and physical characteristics, can be estimated with a level of

confidence sufficient to allow the appropriate application of technical and economic

parameters, to support mine planning and evaluation of economic viability of the deposit.

The estimate is based on detailed and reliable exploration and test information gathered

through appropriate techniques from locations such as outcrops, trenches, pits, workings, and

drill holes that are spaced closely enough for geological and grade continuity to be reasonably

assumed.

A

is that part if a Mineral Resource for which quantity, grade

or quality, densities, shape, and physical characteristics are so well-established that they can

be estimated with confidence sufficient to allow the appropriate application of technical and

economic parameters to support production planning and evaluation of the economic viability

of the deposit. The estimate is based on detailed and reliable exploration, sampling and

testing information gathered through appropriate techniques from locations such as outcrops,

is the economically mineable part of a Measured or Indicated Mineral

Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include

adequate information on mining, processing, metallurgical, economic and other relevant

factors that demonstrate, at the time of reporting, that economic mineral extraction can be

justified. A Mineral Reserve includes diluting materials and allowances for losses that may

occur when material is mined.

Mineral Reserves are those parts of Mineral Resources which, after the application of all

mining factors, result in an estimated tonnage and grade which, in the opinion of the Qualified

Person(s) making the estimates, is the basis of an economically viable project after taking

account of all relevant processing, metallurgical, economic, marketing, legal, environmental,

socio-economic, and government factors. Mineral reserves are inclusive of diluting material

that will be mined in conjunction with the Mineral Reserves and delivered to the treatment

plant or equivalent facility. The term “Mineral Reserve” need not necessarily signify that

extraction facilities are in place or operative or that all governmental approvals have been

received. It does signify that there are reasonable expectations of such approvals.

A

is the economically mineable part of an Indicated Mineral

Resource, and in some cases a Measured Mineral Resource, demonstrated by at least a

Preliminary Feasibility Study. This Study must include adequate information on mining,

processing, metallurgical, economic, and other relevant factors that demonstrate, at the time

of reporting, that economic extraction can be justified.

A

is the economically mineable part of a Measured Mineral

Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include

adequate information on mining, processing, metallurgical, economic, and other relevant

factors that demonstrate, at the time of reporting, that economic extraction is justified.

Application of the term Proven Mineral Reserve category implies that the Qualified Person

has the highest degree of confidence in the estimate with the consequent expectation in the

minds of the reader of the report. The term should be restricted to that part of the deposit

where production planning is taking place and for which any variation of the estimate would

not significantly affect the economic viability.