Khoemacau’s Positive Exploration Drill Results and Inferred Maiden Mineral Resources at Zeta NE and the Newly Discovered Zone 5 North Deposits

During the 2015 and 2016 exploration programs at the Khoemacau sediment hosted Copper-Silver Project in Botswana, drilling continued to produce encouraging results. Drilling completed 36 holes totaling 14,240 meters at Zeta NE and the newly discovered Zone 5 North deposits (Figures 1 thru 4). Following recent success, further drilling was proposed to test continuity of mineralization and confirm copper-silver grade. The exploration drilling programs exceeded expectations, intersecting continuous high-grade copper and silver mineralization over wide intersections.

Deep drilling at Zeta NE included 8 diamond core holes totaling 5,561 meters. Drilling focused on confirming high-grade mineralization at depth and expanding and upgrading the Mineral Resource estimate. These new results have confirmed high-grade copper and silver mineralization over thick intervals to a depth of 900 meters below surface. The Zeta NE deposit remains open at depth and along strike.

Highlights of Zeta NE deep drilling exploration results include: Copper intercepts:

o 3.01% CuEq(1) (2.51% Cu and 50.9 g/t Ag) over 23.6 meters (16.6 meters true width) in hole HA-1080-D

o 2.46% CuEq(1) (2.03% Cu and 43.5 g/t Ag) over 8.3 meters (5.8 meters true width) within a wider mineralized

interval of 1.47% CuEq(1) (1.22% Cu and 25.5 g/t Ag) over 23.3 meters (16.3 meters true width) in hole HA-

1100-D

o 2.93% CuEq(1) (2.57% Cu and 36.0 g/t Ag) over 7.6 meters (5.3 meters true width) in hole HA-1073-D

o 2.05% CuEq(1) 1.71% Cu and 34.0 g/t Ag) over 14.8 meters (10.4 meters true width) in hole HA-1090-D

Discovery of the Zone 5 North deposit in late 2015 continued to return outstanding drilling results in 2016.

Eighteen diamond core holes totaling 7,085 meters and 10 RC holes totaling 1,594 meters intersected

mineralization over a strike length of 5 kilometers and to a depth of 700 meters below surface. The drilling

was able to provide high-grade copper and silver results as well as prove high-grade mineral continuity along

strike and at depth. This deposit is still open at depth and along strike.

Highlights of Zone 5 North exploration drilling results include: Copper intercepts:

o 2.79% CuEq(1)(2.30% Cu and 49.0 g/t Ag) over 8.0 meters (7.3 meters true width) in hole HA-1076-D

o 2.72% CuEq(1)(2.30% Cu and 42.0 g/t Ag) over 9.0 meters (8.3 meters true width) in hole HA-1077-D

o 2.38% CuEq(1)(2.03% Cu and 35.0 g/t Ag) over 8.1 meters (7.5 meters true width) in hole HA-1087-D

o 2.47% CuEq(1)(2.20% Cu and 27.0 g/t Ag) over 8.0 meters (7.4 meters true width) in hole HA-1097-D

o 2.87% CuEq(1)(2.40% Cu and 47.0 g/t Ag) over 7.3 meters (6.7 meters true width) in hole HA-1099b-D

(1) Copper equivalent calculated using US$2.50/lb Cu, US$17/oz Ag and is not adjusted for metallurgical recoveries.

Mineral Resource Estimates These positive drill results lead to two maiden Mineral Resource estimates at Zeta NE and Zone 5 North. The models were built using classification definitions established by JORC and complies with the recommended guidelines of the JORC Code (2012). The estimates were prepared by independent consultants RungePincockMinarco (RPM) of Denver, Colorado. The drilling and assay result cutoff date for the Zone 5 North deposit was June 9, 2016. The drilling and assay database cutoff date for the Zeta NE deposit was August 4, 2016. The Mineral Resource for Zone 5 North was supported by 18 diamond core holes (7,085 meters) and 10 RC holes (1,594 meters) all drilled by Khoemacau. Zeta NE was supported by 76 diamond core holes (14,358 meters) and 110 shallow RC holes (4,527 meters). Eight of the diamond core holes (5,561 meters) were drilled by Khoemacau. All other holes were drilled by predecessors on the property. The drill hole and assay databases have been reviewed and audited by RPM. Two separate block models were completed for each deposit using MineSight 11.0 software. The block models were constrained by interpreted 3D wireframes of the mineralized horizons using a 1.0% Cu cutoff for high-grade mineralization and 0.1% Cu cutoff for lower grade hanging wall and footwall mineralization. Inverse Distance Squared Weighted (IDW) was used for resource estimation. The model was validated using Nearest Neighbor (NN). Both block models were rotated 40 degrees counter-clockwise to align with the 50 degree strike of each deposit. A block size of 10 x 5 x 5 meters was used. Copper and silver assays were variably capped by mineralized horizons prior to compositing, restriction and block grade estimation. Search distances ranged from 600 x 600 x 120 meters to 400 x 400 x 80 meters, depending upon the estimation pass and drill hole spacing for each deposit. Inferred classification was assigned to blocks that used at least two drill holes and the average distance to the closest three drill holes was less than 300m. The Zeta NE Mineral Resource, using a 1% Cu cutoff and constrained within the high-grade wireframe and includes sulphide only material, is presented in the following table:

Classification Tonnes (Mt) Cu (%) Ag (g/t)

Inferred ¹ ² 24.8 2.19 44.6

The Zone 5 North Mineral Resource, using a 1% Cu cutoff and constrained within the high-grade wireframe and includes sulphide only material, is presented in the following table:

Classification Tonnes (Mt) Cu (%) Ag (g/t)

Inferred ¹ ² 17.0 2.27 43.4

Notes:

1. Inferred Mineral Resources are not Mineral Reserves and do not demonstrate economic viability. 2. It cannot be assumed that all of the Inferred Mineral Resources will be upgraded to and Indicated or Measured Resource.

Additional Drill Results In the second half of 2016, four additional diamond core holes were drilled at depth at Zone 5 North totaling 4,063 meters of deep drilling and two additional diamond core holes were drilled deep at Zeta NE totaling 1,669 meters. These holes intersected mineralization at depths below the current Inferred Mineral Resource (Figure 5 and 6). These drill results confirm continuous high-grade copper mineralization to depths greater than 1,000 meters below surface at both Zeta NE and Zone 5 North. The results from these holes are in addition to, and were not included in the recent Resource estimates tabulated and reported above. These results have the potential to increase both the tonnage and grade of the Mineral Resource estimate at both Zeta NE and Zone 5 North.

An updated Mineral Resource estimate for both Zeta NE and Zone 5 North is planned to begin in Q1 2017 to be released by Q2 2017.

Figure 1: Location of Khoemacau Copper Project and Expansion Deposits

Figure 2: Deposit Location of Zeta NE and Zone 5 North Showing General Geology

Figure 3: Location of Zeta NE Drilling Results

Figure 4: Location of Zone 5 North Drilling Results

Figure 5: Zeta NE Long Section Colored by Copper Equivalent x Thickness Contours

Figure 6: Zone 5 North Long Section Colored by Copper Equivalent x Thickness Contours

Table 1: Drill Results from Zeta NE

Estimated Cu (%)

Ag (g/t)

Moly (ppm)

Hole # From To Interval TRUE Section

(m) (m) (m) (m)

Zeta NE

HA-1071-D 600.00 605.87 5.87 4.11 1.60 35.2 1009 ZNE

N4400

inc. 601.17 605.50 4.33 3.03 2.11 46.9 1352

HA-1073-D 770.00 778.46 8.46 5.92 2.40 34.4 10 ZNE

N3600

inc. 770.00 777.63 7.63 5.34 2.57 36.2 10

HA-1075-D 553.62 565.85 12.23 8.56 0.22 2.7 10 ZNE

N3200

HA-1079-D 606.00 621.32 15.32 10.72 0.63 11.9 154 ZNE

N5200

inc. 606.45 609.00 2.55 1.78 1.61 27.1 729

and 616.16 618.72 2.56 1.79 1.33 27.9 32

HA-1080-D 530.74 554.36 23.62 16.53 2.51 50.9 124 ZNE

N4800

inc. 530.74 544.26 13.52 9.46 3.20 63.3 194

and 551.54 554.36 2.82 1.97 5.61 119.9 88

HA-1090-D 620.13 639.56 19.43 13.60 1.44 26.6 28 ZNE

N2700

inc. 624.75 639.56 14.81 10.37 1.71 33.7 33

HA-1096-D 740.00 745.30 5.30 3.71 1.38 28.5 802 ZNE

N4200

HA-1100-D 883.30 906.58 23.28 16.30 1.22 25.5 395 ZNE

N4800

inc. 898.00 906.30 8.30 5.81 2.03 43.5 771

HA-1104b-D 743.63 746.01 2.38 1.67 1.54 4.3 711 ZNE

N4360

HA-1106-D 860.31 879.00 18.69 13.08 0.92 18.8 48 ZNE

N2500

inc. 870.32 877.34 7.02 4.91 1.53 40.3 40

Table 2: Drill Results from Zone 5 North

Estimated Cu (%)

Ag (g/t)

Moly (ppm)

Hole # From To Interval TRUE Section

(m) (m) (m) (m) Zone 5 North

HA-633-R 78.00 85.00 7.00 6.40 3.52 85.3 176 N126600

HA-634c-R 137.00 143.00 6.00 5.10 2.72 44.9 95 N126600

HA-635-R 120.00 145.00 25.00 12.50 2.73 54.6 59 N127650

inc. 121.00 141.00 20.00 10.00 3.37 67.7 72

HA-636-R 215.00 227.00 12.00 7.20 0.43 3.9 18 N125500

inc. 224.00 226.00 2.00 1.20 0.91 6.7 10

HA-637-R 40.00 65.00 25.00 23.00 0.96 15.0 74 N124600

inc. 46.00 62.00 16.00 14.72 1.31 22.8 110

inc. 46.00 50.00 4.00 3.68 2.49 55.0 216

and 60.00 62.00 2.00 1.84 4.96 66.2 385

HA-638-R 176.00 193.00 17.00 15.64 1.16 14.9 57 N124600

inc. 177.00 186.00 9.00 8.28 1.83 24.3 97

HA-639-R 169.00 195.00 26.00 23.92 0.35 5.6 37 N124050

inc. 172.00 178.00 6.00 5.52 0.94 17.4 103

HA-640-R 55.00 81.00 26.00 23.92 1.09 27.0 171 N128650

inc. 74.00 81.00 7.00 6.44 3.28 97.0 605

HA-641-R 78.00 87.00 9.00 8.28 0.33 8.8 16 N129150

inc. 82.00 85.00 3.00 2.76 0.73 20.1 17

HA-642-R 218.00 232.00 14.00 12.88 0.40 8.9 17 N129150

inc. 226.00 228.00 2.00 1.84 0.96 21.7 56

HA-1076-D 227.80 238.00 10.20 9.38 1.93 41.0 175 N126650

inc. 228.15 236.45 8.30 7.32 2.32 49.2 213

HA-1077-D 242.25 253.43 11.18 10.29 2.00 34.5 33 N127650

inc. 244.00 253.00 9.00 8.28 2.34 42.1 38

HA-1078-D 219.07 222.60 3.53 3.25 1.68 30.0 160 N127150

HA-1081-D 227.00 243.80 16.80 15.46 0.31 4.4 10 N126000

inc. 235.66 238.00 2.34 2.15 1.02 12.5 10

Estimated Cu (%)

Ag (g/t)

Moly (ppm)

Hole # From To Interval TRUE Section

(m) (m) (m) (m)

HA-1082-D 295.88 297.00 1.12 1.03 0.17 2.5 63 N125050

HA-1083-D 165.48 166.51 1.03 0.95 0.14 6.2 10 N128150

HA-1084-D 216.00 233.73 17.73 16.31 0.23 3.9 16 N128650

HA-1085-D 396.94 404.43 7.49 6.89 2.00 31.7 210 N126850

inc. 396.94 401.55 4.61 4.24 3.15 46.7 334

HA1086-D 377.00 392.35 15.35 14.12 0.84 15.1 36 N126300

inc. 379.26 385.00 5.74 5.28 1.68 28.5 78

HA-1087-D 405.00 417.48 12.48 11.48 1.48 26.6 36 N127200

inc. 407.00 415.04 8.04 7.47 2.03 35.5 49

HA-1088-D 691.00 699.00 8.00 7.36 0.12 1.5 10 N126200

HA-1091-D 630.46 640.33 9.87 9.08 1.41 31.5 184 N127200

inc. 631.08 636.72 5.64 5.19 2.31 53.9 315

HA-1094-D 322.00 331.72 9.72 8.94 0.99 22.6 55 N128200

inc. 323.95 330.05 6.10 5.61 1.38 33.8 78

HA-1095-D 383.85 399.94 16.09 14.80 0.60 7.6 35 N124250

inc. 386.26 391.53 5.27 4.85 0.91 13.3 49

HA-1097-D 480.88 490.59 9.71 8.93 1.89 23.6 93 N124850

inc. 480.88 488.94 8.06 7.42 2.19 26.8 109

HA-1098b-D 421.16 428.63 7.47 6.87 0.92 11.2 79 N128850

inc. 421.16 427.06 5.90 5.43 1.12 13.3 65

HA-1099b-D 1079.60 1096.75 17.15 15.78 1.16 21.2 20 N126350

Inc. 1083.50 1090.83 7.33 6.74 2.40 46.6 34

HA-1101-D 973.46 976.26 2.80 2.58 0.36 8.5 12 N126850

HA-1103b-D 916.62 929.84 13.22 12.16 1.08 15.6 77 N127850

Inc. 917.37 929.23 11.86 10.91 1.17 16.9 84

HA-1105-D 1011.72 1025.06 13.34 12.27 0.84 22.5 27 N127350

Inc. 1013.00 1019.60 6.60 6.07 1.31 39.5 16