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Kneiv issat Technical Report – Mauritania

ALGOLD RESOURCES LTD.

Kneivissat Property

- Mauritania -

43-101 Technical Evaluation Report

By

A. Ciesielski, DSc., P. Geo.

F. Auclair, MSc., P. Geo.

October 31st 2013

Kneiv issat Technical Report – Mauritania Page

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Table of Content PAGE

1. Summary 1 2 . Introduct ion 2 3 . Rel iance on Other Experts 3 4 . Property Descr ipt ion & Locat ion 4 .1 Locat ion 4 4 .2 Explorat ion r ights 4 4 .3 Environment Liabi l i ty 5 4 .3 Surface r ights 5 5 . Access ib i l i ty , Cl imate Infrastructure , Phys iography 5 .1 Access ib i l i ty 6 5 .2 Cl imate 6 5 .3 Local Resources & Infrastructures 7 5 .5 Phys iography & Fauna 7 6 . History 8 6 .1 Geochemistry 11 6 .2 Geophysics 11 7 . Geologica l Sett ing 13 7 .1 Property Geology 17 7 .2 Minera l Potent ia l 17 7 .3 Property Minera l izat ion 17 8 . Deposi t Type 17 9 . Explorat ion 18 9 .1 Sate l l i te Imagery 18 9 .2 Aeromagnet ic & Radiometr ic Survey 20 10. Dri l l ing 21 11. Sample Preparat ion, Analyses & Secur i ty 21 12. Data Ver if icat ion 21 13. Minera l Process ing and Meta l lurg ica l Test ing 22 14. Minera l Resource Est imates 22 23. Adjacent Propert ies 22 24. Other Relevant Data & Informat ion 23 25. Conclus ions 24 26. Recommendat ions 25 27. References 26 Date & Signature 27


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List of Tables TABLE PAGE

I - Property coordinates 5 II – Strat igraphy of Ouéouat 16 List of Figures FIGURE PAGE

1 Map of Mauri tania & locat ion of Kneiv issat property 3 2 Geology of West Afr ica 10 3 Magnet ic map of the Kneiv issat property area 12 4 Geology of the Chami map sheet 14 5 Major shear zones in the Kneiv issat area 15 6 Landsat 8 mult i factor sate l l i te image 19 7 Analyt ica l s ignal map of southern Kneiv issat 20 8 Radiometr ic & RTP composite map of Kneiv issat 21 9 Adjacent property map 23


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1 - Summary The Kneiv issat property is located in northern Mauri tania and southwestern Reguibat Archean shie ld and is under la in by north-trending granite greenstone terra in . The property is located on str ike 45 km north of the Tas iast world c lass gold deposit . The area has been prospected s ince the 1960’s mainly by French geologists . In the 1990’s fo l lowing works by BRGM the Tas iast mine was d iscovered and many companies have work on the deposi t before Rio Narcea , Red Back and la te ly Kinross put i t into or increased gold product ion. S ince the Kneiv issat property shows favorable deformed Archean greenstone bel ts and comparable l i thologies as the Tas iast mine context , i t g ives the property a good potent ia l for gold deposi ts that remain to be invest igated. So far Algold Resources has commiss ioned an a irborne magnet ic and radiometr ic survey in the southern part of the property and a remote sens ing compilat ion and analys is s tudy. Recommendat ions for further works are proposed at the end of th is report as wel l as a one year budget .


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2 - Introduction Algold is a Canadian junior company focusing on mining explorat ion in West Afr ica . The company acquired the Kneiv issat mining permit located in western Is lamic Republ ic of Mauri tania and commiss ioned the authors to prepare a technica l report on the property , F igure 1 .

Informat ion for th is Technica l Report has been gathered from a number of internal experts , government reports , independent technica l reports and other mining company reports . The second author Mr F. Aucla ir was country manager for Rio Narcea in Mauri tania and genera l manager for Tas iast Maur i tania from 2004 to 2007. He v is i ted the Kneiv issat property in many occas ions , the last t ime was between June 12 to 15, 2013.

André Cies ie lsk i , P . Geo. and François Aucla ir , P . Geo. CEO of Algold are the qual i f ied persons (QP) for th is report .

The present report is be ing prepared according to Nat ional Instrument 43-101 guidel ines for minera l deposi t d isc losure and descr ibes h istor ic works , minera l izat ion types and minera l potent ia l of the property . Recommendat ions are presented for further explorat ion works .

Algold Resources may use th is Technica l Report to sat isfy d isc losure and f i l ing requirements of Canadian secur i t ies regulators . The Technica l Report has an effect ive date of October 31st , 2013.

Units of measurement used in th is report conform to the SI (metr ic) system. Al l currency in th is report is US dol lars (US$) unless otherwise noted.

LIST OF ABBREVIATIONS mt Metr ic ton

tpd Ton per day

ton Short ton (0.907185 ton)

kg K i lograms

g Grams

oz Troy ounce (31.1035 grams)

g/t Gram/ton same as ppm

ppm, ppb Parts per mi l l ion, parts per b i l l ion

ha Hectares

m Meters

km K i lometres

m2 Square meters

mas l meter above sea leve l

kva K i lovo l t ampere

MAG Magnetometer survey


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F igure 1 : 1 : 5 M Geological map of Mauritania and locat ion of the Kneiv issat property north of Nouakchott.

3 - Reliance on Other Experts The authors d id not re ly on any other experts to carry out the present technica l report .


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4 - Property Description and Location 4.1 Location The Kneiv issat Property is located in northwestern Mauri tania , 310 km north of the capital Nouakchott and 140 km east of the major c i ty of Nouâdhibou. The Property cove r s 830 squa re km and l ies with in the administrat ive purview of the Inchiri and Dakhlet Nouâdhibou Distr ic ts , F igure 2 .

4.2 Exploration Rights The Kneiv issat explorat ion r ights were f i rs t granted to a Mauri tanian Nat ional Company “Wafa Mining and Petro leum” (“Wafa”) under statutory order no. 2010-181 for Group 2 e lements (Au) . Wafa transferred on January 28, 2013 the explorat ion r ight to the ir 100% subsid iary Société Mauri tanienne d 'Explorat ion (“SME”).

At the end of January 2013, Wafa and Algold Resources ( then Kanosak Corp) entered into a b inding agreement in which Wafa so ld 90% of SME to Algold for US 500 000$ (Five hundred thousand US dol lars) and 500 000 shares of Algold . The contractua l

arrangement was publ ished on January 29 th 2013 as a Press re lease and a lso deposi ted on SEDAR.

The Kneiv issat permit 1077B2 was renewed for a three year per iod on September 2013 at the advantage of SME, a 90% own subsid iary of Algold . The Kneiv issat permit is in good standing and a l l re la ted obl igat ions fu lf i l led . There are no roya l t ies , surface r ights or other permit or obl igat ion re lated to the property and no other s ignif icant factor and r isk that may affect access , t i t le or the abi l i ty to perform explorat ion on the Kneiv issat property .


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The property is l imited by the fo l lowing coordinates , Table I . Table I: Kneiv issat property coordinates

Corners East North

1 437000 2354000

2 437000 2352000

3 432000 2352000

4 432000 2343000

5 434000 2343000

6 434000 2319000

7 438000 2319000

8 438000 2330000

9 446000 2330000

10 446000 2311000

11 435000 2311000

12 435000 2299000

13 420000 2299000

14 420000 2322000

15 429000 2322000

16 429000 2358000

17 470000 2358000

18 470000 2354000

WGS 84 : zone 28 4.3 Environmental Liability To the knowledge of the authors the property is only subjected to the environmenta l guidel ines of the mining code of Mauri tania . 4.4 Surface Rights To the knowledge of the authors , the Kneiv issat property is not subjected to any surface r ights .


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5 - Accessibility, Climate, Local Resources, Infrastructures and Physiography

5.1 Accessibility The Kneiv issat property is accessed from Nouakchott on a paved highway for 400 km to Nouâdhibou and v ia a d ir t t rack over the sand cover .

An a irs tr ip has been bui l t a t the Tas iast mine s i te and is used for l ight a ircraft pr imar i ly trave l ing to and from Nouakchott .

The main ports of entry for goods and consumables are e i ther Nouakchott or Nouâdhibou. Mater ia ls are transported by road to the mine s i te .

Rout ine access with in the country is provided by an 11,000 km long road network, compris ing approximate ly 3 ,000 km of paved highways and approximate ly 8 ,000 km of unpaved highways as wel l as numerous desert t racks . A paved 470 km long, two-lane h ighway runs between Nouakchott and Nouâdhibou.

A 717 km long ra i lway located a long the border between Mauri tania and Western Sahara is owned and operated by Société Nat ionale Industr ie l le et Minière de Mauri tanie (SNIM). i t i s pr imar i ly used to haul i ron ore from SNIM’s i ron ore mines in Zouérate to the port of Nouâdhibou.

Access to the major urban centers of Mauri tania is a lso poss ib le v ia a ir . Nouakchott is access ib le v ia internat ional f l ights operated by numerous West and North Afr ican carr iers ; Air France a lso provides a d irect connect ion to Par is.

5.2 Climate The Mauri tania ’s c l imate is c lass ified as ar id desert (under the Köppen c l imate sca le) , with average annual h igh temperature above 45°C between May and August . Minimum temperatures may go below 10°C in December and January .

Sandstorms frequent ly occur from January to March caus ing sand bui ld up and dune format ion. Sandstorms do vary in intens i ty and v is ib i l i ty can be reduced to severa l meters .

A ra iny season, usual ly between Ju ly and September , does ex ist ; however , the amount of ra infa l l and length of season var ies spat ial ly and temporal ly in the var ious reg ions of the country . Annual ra infa l l var ies from a few mil l imeters in the desert reg ions to h ighs of 450 mm in the south a long the Senegal River . During the last 30 years , the country has recorded two per iods of drought , namely 1984-85 and 1991-92.

Mauri tania is located a long the northwestern coast of Afr ica and is bordered by the At lant ic Ocean to the west . The country ’s land mass covers the western port ion of the Sahara Desert . Mauri tania ’s land mass consists mainly of f la t and barren desert landscape surfaces that are cross cut by three large NE-SW trending longitudina l dune


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f ie lds . In the centra l part of the country , near Adrar and Tagant , severa l h i l l s and mounta ins r ise up to 915 meters above sea level (masl ) . In the desert reg ions , vegetat ion is sparse , consis t ing of var ious species of thorny trees (acac ia , e tc . ) and grasses .

5.3 Local Resources & Infrastructures The Kneiv issat property is located in a remote area depr ived of resource and infrastructure . Nearest center is located in Nouhâdhibou 425 km to the west . Al l suppl ies to the explorat ion works has to be transported on s i te .

The e lectr ica l power is suppl ied by a 85kva generator set on the s i te . The source of fresh water supply is located 60 km west of the camp and is comprised a fresh water underground aquifer , which is explo i ted by one wel l . Potable water for human consumption is bought from the Boulanouar pumping f ie lds . SME hired Mauritanian work force and few expatr ia te employees, for its project. A smal l camp has been constructed us ing pre-fabr icated and conta iner ized bedrooms and dormitor ies . A mess hal l , fu lly equipped k i tchen, food storage and laundry fac i l i t ies serve a l l employees . Rel ig ious fac i l i t ies are a lso provided. The camp is provided with a Thuraya sate l l i te phone. The ce l lu lar phone s ignal can be reached 30 km from the main camp. Waste from equipment maintenance, construct ion, off ices , k i tchens and accommodat ion is recycled or handled in an on-s i te landf i l l . Sewage is d isposed of through sept ic tanks .

5.4 Physiography & Fauna The topography of the area consists mainly of f la t , barren p la ins which are pr imar i ly covered by regol i th and loca l ly by sand dunes , or eroded paleo- la ter i t ic prof i les .

The area has no permanent watercourse but is crossed by numerous, intermittent watercourses , known as “wadis” , which f low for only a few days per year dur ing h igh ra in fa l ls .

The average e levat ion is approximate ly 130 masl to 150 masl .

The Property is located in the ar id Saharan zone, the predominant ecologica l area in Mauri tania , where f lora is very scarce and is main ly colonized by Zygophyl lum a lbum, together with Maerua crass ifo l ia (a t i l ) and Asist ida pungens (sbot) . Acacias are a lso present a long many of the wadis . The wel l f ie ld , inc luding the p ipel ine and road, are a lmost exclus ive ly colonized by Zygophyl lum a lbum. There are no forests in the area .

Smal l rodents (such as hares , hamsters and gerbi ls ) are the most common mammals in the area , whi le jacka ls , fennec fox and zor i l le fox have been observed in the area .

Current th ird party land use in the area consists of occas ional nomadic l ivestock farmers . There are no v i l lages , agr icu l tura l farms, nor art isanal mining act iv i ty with in or around the project area .


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6 - History The Kneiv issat property is located in the southwestern part of the Reguibat sh ie ld , a large north-trending Archean and Proterozoic r idge that occupy most of northern Mauri tania , F igure 2 . In the second half of the 20th century , a number of scholars and inst i tut ion geologist carr ied out var ious studies and mapping result ing in the publ icat ion of sc ient i f ic papers and maps of northern Mauri tania (BRGM, 1968 and Choubert et Faure-Muret , 1971) . Later doctora l d issertat ions on the metamorphic evolut ion of the southern Reguibat craton were produced and geologica l synthes is publ ished (Potre l , 1994; Fabre , 2005) .

Between 1962 and 1993, BRGM and later SNIM (Société Nat ionale Industr ie l le et Minière) carr ied out var ious explorat ion programs in northwestern Mauri tania .

• Miss ion Pegmati te : 1960-1962 - The miss ion targeted Be and Li located in the Kneiv issat pegmati te intrus ive rocks , located north of the Tas iast mine.

• Miss ion nickel su lfuré : 1972 - The miss ion focused on ultramafic units located in the Tas iast and Ti j i r i t areas .

• Miss ion Fer : 1973-1975 - SNIM targeted the Lebzénia Hi l ls and Ouaéouat greenstone bel t .

Based on geologica l mapping and previous resul ts , explorat ion programs funded by Fonds de Développement Européen (EDF Project) took place between 1993 and 1996 and was contracted by BRGM and Off ice Mauri tanien de Recherches Géologiques (OMRG). The program focused on the Chami 1 : 200 000 sca le sheet and consis ted in reconnaissance geologica l mapping and sampl ing. I t ident if ied s ignif icant gold anomal ies in the Tas iast area .

Although the Tas iast deposi t i s located about 50 km south of the center of the Kneiv issat property , much knowledge can be granted by studying the research history that lead to the d iscovery and subsequent ly the explo itat ion of the Tas iast gold mine. A summary of that work is provided below.

In the mid 1990’s , La Source Développement SAS, a French Mining and Explorat ion company was granted the r ight to the Tas iast l icense (License type M, #45) with a per imeter of 1962 sq km, by decree No 96 066 dated October 09, 1996 for a 2 years per iod, and renewed in 1998 for a further 2 years . This l icense covered part of the Kneiv issat property .

Furthermore, La Source was a lso granted the Tas iast Sud l icense , which extended the Tas iast l icense to the south for a further 333 sq km.

Thus, form 1996 to ear ly 2000, La Source (and la ter on Normandy-La Source , NLSD) completed at reg ional and target sca le so i l geochemistry , geologica l mapping, a irborne and ground geophysics , t renching and mapping, a t a number of locat ions with in the l icenses , but focusing on the Tas iast deposi t which was d iscovered in la te 1997.

NLSD completed a major explorat ion program with in the Tas iast Permit Area , inc luding some 32,000m of RC dr i l l ing and 3 ,300 m of d iamond dr i l l ing . The program was managed and operated on a contractua l bas is by the BRGM who provided the


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supervis ing chief geologist and other technica l expert ise as required. An extens ive amount of work (summarized in table 6 .2 .3) was completed dur ing the program.

• Geologica l mapping and regol i th mapping • Sate l l i te imagery interpretat ion; • Airborne and ground magnet ic surveys ; • Geochemica l auger dr i l l ing carr ied out a long str ike of Tas iast ; • Dril l ing : dr i l led in i t ia l ly on 200m spaced E-W sect ions with a 50 m hole

spacing a long each sect ion, to depths of 50-100m in three dr i l l campaigns from 1996 to 1999. Dri l l ing methods were predominant ly reverse c irculat ion (RC) with lesser d iamond dr i l l ing (HQ diameter core) and inc luding d iamond ta i ls to some RC holes (NQ diameter core) ;

• The strongly minera l ized centra l area was renamed the Colonne Piment Zone (or Piment Zone) . Dri l l spacing was reduced to 50m E-W sect ions a long str ike and ~ 30m down dip ;

• During la ter s tages , se lected RC holes were twinned v ia d iamond dr i l l ing and addit ional t renching and inf i l l dr i l l ing completed in order to better understand the geometry and structura l controls affect ing h igh-grade gold minera l izat ion;

• Hydrologica l dr i l l ing for ground water ; • Sampling and analys is of samples for gold and associated meta ls ; • Petrographic , minera logica l , and specia l is t geologica l s tudies ; and • Prel iminary meta l lurg ica l test work.

In the ear ly 2000 's an important geologica l mapping and compilat ion program was carr ied out in the western Mauri tania and funded by the World Bank and Projet de Renforcement Inst i tut ionel du Secteur Minier (PRISM). The work was contracted by the Br i t ish Geologica l Survey (BGS) and lead to the product ion of twelve 1 : 200 000 map sheet and re lated geologica l and meta l logenic s tudies (BGS 2004) . In 2007 fo l lowing PRIM II program, the USGS produced a var iety of geologica l , geophysica l and remote sens ing short s tudies . Late ly in 2010, Jébrak (2010) carr ied out a short s tudy on the Kneiv issat property area and recognized potent ia l zones showing intense deformat ion and sub vert ica l quartz tens ion gashes and carbonat ized and deformed mafic volcanic rocks . The author concluded that Kneiv issat (or i ts southern equiva lent) s i ts in a very favorable locat ion in a context of h igh potent ia l for low pressure f lu id migrat ion and recommended works or iented d irect ly on sheared structures .


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Figure 2: Geology of West Afr ica showing both Reguibat and Man shie lds separated by the Taoudeni basin.


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6.1 Geochemistry A reg ional regol i th , outcrop and soi l sampl ing was conducted dur ing the 1993-1996 BRGM-OMRG program and by the PISM compilat ion program in the 2000’s . The samples were taken every k i lometer a long E-W l ines separated by 4 or 5 km. Local ly the l ines show one km spacing. A tota l of 1187 samples were taken on the Chami map sheet and only a smal l amount fe l l on the Kneiv issat property . At the t ime of th is report and for undisc losed reasons, the results of the analys is are not ava i lab le .

6.1 Geophysics A reg ional 1 : 500 000 sca le aeromagnet ic survey do ex ist for most of the Precambrian of Mauri tania on top of the 1 : 200 000 sca le aeromagnet ic and radiometr ic survey carr ied out in the 2000’s and funded by PRISM. Figure 3 shows a compilat ion of the Kneiv issat property area , the magnet ic s ignal reduced to pole and the major geologica l units . North-trending volcanic bel ts are shown in green. The Tas iast mine magnet ic anomaly is t rending to the NNW and show as th inner north-trending anomal ies corresponding to the var ious volcanic units on the property .


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Figure 3: Reduced to pole magnet ic map of the Kneiv issat property area compi led with the geology. North-trending volcanic belt are shown in green. The Tasiast mine is located on a major NNW-trending magnet ic anomaly.


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7 - Geological Setting The Kneiv issat property area l ies in the southwestern port ion of the Reguibat craton most ly under la in by Precambrian crysta l l ine rocks , F igure 2 . The craton forms a northeast- trending r idge l imited to the NW by the Tindouf bas in and to the SE by the Taoudeni bas in . The southwestern ha lf of Reguibat is under la in by rocks of Mesoarchaean age (~3.1 to ~2.9 Ga) , whereas the northeastern ha lf are Palaeoproterozoic (~2.5 Ga) . The basement is most ly composed of large granit ic intrus ions and moderate to h igh-grade metamorphic rocks inc luding gneisses , amphibol i tes , volcanogenic schists and metasediments . Metamorphic grade in the Reguibat genera l ly increases from mid-greenschist in the southwest through to granul i te grade in the northeast . Numerous north-trending e longate greenstone bel ts occur over a broad area of the southwestern Reguibat , each marking major shear and crusta l d iscont inuit ies . These bel ts are composed of metavolcanic , meta-plutonic and metasedimentary rocks ranging from ultramafic to fe ls ic composit ion and l ike ly represent the roots of volcanic arcs and inverted e longated sedimentary bas ins , F igure 4 .

Most of the greenstone bel ts are trending north and in contact with granit ic to gabbroic intrus ive rocks and gneiss ic suites . In the east , some belts show arcuate shapes poss ib ly re la ted to regional fo ld ing or smal l sca le doming tectonic . The greenstone bel ts consist of u l tramafic to fe ls ic volcanic and volcano-sedimentary sequences with var iably preserved i r o n f o r m a t i o n s a n d i r o n a n d q u a r t z - r i c h m e t a s e d i m e n t s , Table II. With in the bel ts , rock success ion have undergone mid greenschist to lower amphibol i te grade metamorphism and mult ip le deformat ion events . Swarms of non-fol ia ted maf ic (basal t ic ) d ikes dominant ly s tr ik ing NNE-SSW and E-W crosscut a ll other rocks in the dis tr ic t inc luding undeformed pegmati te units , and are interpreted to be Proterozoic , poss ib ly younger in age .

The major north-south structura l fabr ic in the bel ts is c lear ly ev ident in both reg ional sate l l i te images and geologica l maps for long str ike d is tances . Steep fo l ia t ions and loca lized isocl inals folds with north-south ax ial surface or ientat ions are ubiquitous across the d is tr ic t and formed through a combinat ion of s trong ear ly E-W shortening accompanied by s in is tral shear , Figure 5 (BGS, 2004) . Structura l invest igat ions by Key et a l . (2008) recognized t ightening of fo lds , sheared fo lds , s tr ike-s l ip and low- angle reverse faults that overpr inted the north-south fo l ia tion. This event is interpreted to have occurred dur ing la ter NW-SE compress ion.

More recent sub-tropical condit ions in the Tertiary formed la ter i te over the eroded basement with th in eros ional remnants . Elsewhere , the dur icrust has been eroded and re-deposi ted as reg and gravel . Depth of oxidat ion ranges from 10 to 60 m, with an average of 40 m.


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Figure 4 : Geology of the 1 : 200 000 Chami map sheet showing the locat ion of the Kneiv issat property, the distr ibut ion of the north-trending greenstones belts, gold occurrences (yel low symbols) and the Tasiast mine.


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Figure 5 : Major shear zones and deformation affect ing the Tasiast-Ti j i r i t area, showing major north-trending deformation in the Tasiast mine area. Yel low symbols : h istor ica l gold occurrences. From Not ice Expl icat ive by BGS (2004).


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Table II : Hypothet ical strat igraphy of the Ouaéouat greenstone belt (Maurin et a l . 1996)

Recent Cenozoic Phanerozoic

Fluvia l gravel, sand, c lay, s i l t , latosols, dur icrust, sand dunes etc.

Formation of later i t ic so i ls and saprol i te (o lder??)

Gabbro – doler i te dyke swarms (120-65 Ma?)

Unconformity ∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼

Middle to Lower Proterozoic (?)

Unmetamorphosed quartz i tes and mica-schists (with intercalated amphibol i tes and orthogneiss)

Unconformity ∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼∼

Archean

Late intrusive rocks Calc-alkal ine granite-granodior i te, pegmatites, granito ids (~2,7 ga) Gabbro – Dior i te, doler i te d ikes (age?)

Intrusive contact - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - -

Volcano-Sedimentary p i le (2,9 Ga) Greywackes (epic last ics), maf ic volcanics (basalts?)

Banded iron/magnet ite formations inter-layered with a lternat ing garnet i ferous schists, micaschists and thole i i tes u ltramafic, maf ic and intermediate or fe ls ic rocks

Basement (>2,9 Ga) Granite gneiss, orthogneiss, migmatite complexes


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7.1 Property Geology The Kneiv issat property is located in the southwestern Reguibat sh ie ld in granite greenstone terra in . The dominat ing unit is composed of undifferenciated orthogneisses conta in ing most ly vert ica l north-trending th in maf ic metavolcanic rocks and amphibol i tes . A volcanic bel t para l le l to the reg ional t rend is most ly composed of “duct i le mix” of maf ic to u l tramaf ic schists and is on str ike with the north-trending Imkebdene trend located 4km west of the Tas iast mine. The gneisses are crosscut by la te-Archean granite and granodior i te , loca l ly showing interpreted shear zone contact . The granites a lso conta in north-trending mafic volcanic be l ts . In the northern part of the property , the bel ts are jo in ing the northern extension of the main Tas iast l i tho-strat igraphic units a t the Biss ine ïn bel t showing much higher volcanic and metasedimentary content and trending to the north-northeast . The volcanic and sedimentary success ions have been var iably fo lded, sheared and segregated a long severa l sub paral le l deformat ion zones . Abundant northeast- trending Phanerozoic d iabase dykes are crosscutt ing a l l Archean units .

7.2 Mineral Potential Although no major minera l izat ion was descr ibed on the Kneiv issat property , i ts proximity in the northern extens ion of the Tas iast minera l ized zones makes i t a h igh potent ia l property . At the Tas iast mine gold was concentrated in north-trending and east-d ipping sheared metasediments and fe ls ic volcanic sequences (see Figure 4) . In Kneiv issat s imi lar set t ings occur and i t remain to see i f gold concentrat ion occurred. 7.3 Property Mineralization No minera l izat ion was descr ibed on the Kneiv issat property .

8 - Deposit Types Kneiv issat property is ad jacent to the northwest to the Tas iast gold deposi t . I t i s assumed that Kneiv issat as a potent ia l to carry s imi lar or associated minera l izat ion. The Tas iast deposit is s imi lar to most Archean or Proterozoic greenstone gold deposits c lass i f ied as mesothermal where minera l ized quartz ve in and stockworks are hosted in low to medium metamorphic grade terra ins in h ighly deformed supracrusta l rocks . Deposits are character ized by h igh Au/Ag rat ios and a carbonate host rock a l terat ion. Low grade minera l izat ion can be extended but h igh grade lode are much more reduced in d imension. The Tas iast gold minera l izat ion are hosted in Archean iron-r ich sedimentary sequences and loca l fe ls ic volcanic rocks that have been deformed and metamorphosed from greenschist to lower amphibol i te grade. Minera l izat ion is both structura l ly and l i thologica l ly control led , and epigenet ic in s ty le .


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The reg ional geologica l set t ing and deposi t features at Tas iast are s imi lar to other wel l -known Archean cratons and greenstone bel ts that host major Au camps. Examples of analogue terra ins inc lude the Laverton Belt in the Yi lgarn Craton of Western Austra l ia and the Abit ib i Belt in the Super ior Province of the Canadian Shie ld .

9 - Exploration Start ing March 2013, Algold commiss ioned a contractor to carr ied out an aeromagnet ic and radiometr ic survey in the southwestern part of the Kneiv issat property and a sate l l i te image compilat ion and interpretat ive study.

9.1 Satellite Imagery The sate l l i te image were col lected , analyzed and interpreted by Eff ig is in Montrea l (Rheault , in prep.) . A number of images were produced and the report should be ready by November 2013. Images were used to produce tectonic l ineament maps, spectra l ana lys is and explorat ion target maps. As an example , F igure 6 uses the Landsat 8 mult i factor analys is image to show the major tectonic l ineaments and d ifferent spectra l responses from the var ious north-trending gneiss ic , volcanic and sedimentary assemblages found on the Kneiv issat property .


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Figure 6 : Landsat 8 mult i factor analys is image showing major tectonic l ineaments and var iat ion of spectra l response to var ious granite greenstone l i thologies. Yel low symbols : h istor ica l gold occurrences.


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9.2 Aeromagnetic & Radiometric Survey An a irborne magnet ic and radiometr ic survey was carr ied out in the southern Kneiv issat property on June 2013 by Terrascan Airborne GmbH. The survey was f lown with 100 m l ine spacing or iented E-W and 1000m t ie l ine spacing, or iented N-S. Var ious maps where produced by GeoIntrepid Geophysics – Namibia , main ly dea l ing with the vert ica l der ivat ive VD, reduct ion to pole RTP, analyt ica l s ignal AS and us ing a lso the tota l magnet ic intens i ty t i l t as a var iable . Maps of K, Th and U radiometr ic s ignal were a lso produced as wel l as composite maps mix ing radiometry and RTP magnet ic s ignal .

F igure 7 shows the southern Kneiv issat property with the geology and the analyt ica l s ignal of the tota l f ie ld . The map in semi transparency shows the tectonic l ineaments and anomalous areas located between the north-trending basa l t ic be l ts . This suggests poss ib le var ia t ions in composit ion of the var ious l i thologies that should be further s tudied in the f ie ld in deta i l .

Figure 7 : Analyt ica l s ignal map with the geology and tectonic l ineaments.


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F igure 8 shows a composite map of radiometr ic K s ignal and the ca lculated RTP magnet ic f ie ld t i l t in semi transparency with geology and the var ious tectonic l ineaments . The map shows var ia t ions in the composite s ignal that may revea l a more complicated geology and deformat ion that should a lso be further s tudied in the f ie ld in deta i l .

F igure 8 : Composite radiometr ic and RTP magnet ic map with the geology and tectonic l ineaments.

10 - Drilling No dr i l l ing was carr ied out on the Kneiv issat property .

11 - Sample Preparation, Analyses and Security No samples were prepared or analyzed on the Kneiv issat property .

12 – Data Verification


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No data was ver if ied on the Kneiv issat property .

13 - Mineral Processing and Metallurgical Testing No minera l process ing and meta l lurg ica l test ing was carr ied out in th is report . .

14 - Mineral Resource Estimate No minera l resource est imate was carr ied out in th is report .

23 – Adjacent Properties - S ix propert ies are adjacent to the Kneiv issat property , F igure 9 .

385B2 Legouess i , located in contact to the east covers 993,4 square km and belongs to Caraca l Gold . The property has been explored mainly for gold by the previous owner from 2008 to 2012 us ing surface geology, a irborne geophysics , so i l , regol i th or rock samples , t renches and RC dr i l l ing . Minera l ized gold samples and intersect ions are mainly located northwest of the property in NE-trending deformed Archean volcanic and sedimentary success ions and to the southeast in two north and northeast- trending smal l basa l t ic and andes i t ic sequence.

Soi ls : of 17442 soi l or regol i th samples , 216 are above 20 ppb Au and distr ibuted mainly in the volcanic and sedimentary sequences .

Trenches : of 218 samples on 10 trenches , 8 results vary between 315 and 4300 ppb Au.

RC dr i l l ing : of 41 RC dr i l l holes and 2229 m, 57 samples ranged from 0,1 to 4 ,7 ppm Au

Explorat ions Licenses 237B2 and 238B2 are owned by Kinross , through their Tas iast Mauri tania Limited subsid iary . These two propert ies have seen var ious level of explorat ion act iv i t ies through t ime. In the 1990’s , La Source Development and subsequent ly , Normandy La Source and Red Back Mining held a number of reg ional sca le explorat ion program, which inc luded (but not l imited to) so i l geochemistry , a i rborne geophysics and geologica l mapping (see 43-101 reports by Leroux et a l . , 2007 and Stuart , 2008) . S ince 2010, a renewed interest in these propert ies has led Kinross to pursue reg ional explorat ion, but no informat ion has been made ava i lab le to the publ ic .

Explorat ions Licenses 525B2, 1086B2, 1108B2, 1109B2 are owned by Mauri tanian Nat ional Company and, to the best of the authors knowledge, has not been the subject of any explorat ion program s ince the l icenses were granted.


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Figure 9 : Kneiv issat (1077B2) adjacent propert ies. 1086B2 : Lusitania; 1108B2 : Tayssir Ressources S.A.; 1109B2 : ID Géoservices S.A.; 237B2-238B2 : Tasiast Mauritanie (Kinross); 358B2 : Caracal Gold; 525B2 : At lant ic.

24 – Other Relevant Data and Information The author is not aware of any other data or informat ion necessary to make th is technica l report understandable and not mis leading.


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25 – Conclusions The Kneiv issat property is located in northern Mauri tania , in the southwestern Precambrian Reguibat sh ie ld and shows most ly north-trending granite greenstone terra ins . The property conta ins north-trending intermediate , maf ic and ul tramafic s tretched greenstone bel ts in contact with gneiss and granit ic complexes . The geology is only known by 1 : 200 000 sca le compilat ion by BGS and l imited works by Algold .

Only l imited geologica l and geochemica l data are ava i lab le on the Kneiv issat property but some deta i l mapping, t renching, so i l and reg sampl ing and dr i l l ing on the adjacent Legouess i property revea l that the area shows complex geology and widespread weak gold anomal ies and higher grade intersect ions that is worth invest igat ing .

Given that the world c lass Tas iast gold deposit is located 45 km to the south southeast of Kneiv issat most ly in east-d ipping Archean iron-r ich sedimentary and fe ls ic h ighly deformed success ion and that some of the favorable l i thologies seems to be cont inuous to the north on Kneiv issat , i t i s concluded that the property shows meta l logenic gold potent ia l and fert i le geologica l and structura l context that should be invest igated through deta i l prospect ing works .

Given i ts geologica l context , locat ion and potent ia l , i t would be wel l advised to invest igate i f the mining r ights of the adjacent Legouess i property are ava i lab le and i f a JV with the owner is poss ib le .


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26 – Recommendations The fo l lowing recommendat ions may be used as guidel ines for the next explorat ion program on Kneiv issat with a re lated deta i l budget .

- Gather and compile a l l poss ib le informat ion on the property and the immediate areas ;

- Carry out a s tandard explorat ion program :

surface mapping and GIS compilat ion;

commiss ion a contractor to f ina l ize the a irborne magnet ic and radiometr ic survey a lready done in the southern part of the property ;

carry out so i l , reg and outcrop sampl ing with a l ternat ing 250 x 500 m gr id and analyze for Au and mult i -e lements ;

commiss ion a contractor to execute IP prof i les in su i table zones on the var ious southern and northern volcanic bel ts , once the geology is better understood;

fo l lowing results determine target areas and carry out trenching in the pr ior i ty zones ;

fo l lowing results determine target areas and carry out RC dr i l l ing in the pr ior i ty zones ;

Kneivissat 2014 Budget Phase 1 Description Unitary costs Cdn$ Sample/m Costs Cdn$ Geology & compilation 50000 Airborne Geophysics 50000 IP Geophysics 50000 Soil & reg sampling 20 2000 40000 Pit & trenches 10/cub m 2000 20000 Auger drilling 15 3000 45000 Logistics 25000 Supervision/report 20000 Contingencies (10%) 30000 ---------- Sub-total 330000 Phase 2 RC drilling 50 7500 375000 Assays 10 3750 37500 Logging 4000/month 3 12000 Supervision/report 15000 Contingencies (10%) 43950 --------- Sub-total 483450 Total 783450


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27 – References

BRGM, 1968 : Carte Géologique de Mauri tanie au 1 : 1 000 000.

BGS, 2004 : Notice Expl icat ive des Cartes Géologiques et Méta l logéniques à 1/200 000 et 1/500 000 au Sud de la Maur i tanie ; Rapport f ina l du PRISM, Br i t ish Geologica l Survey , 580 p .

Choubert , G. and Faure-Muret , A. , 1971 : Dorsa le Reguibate (Sahara Occidenta l ) ; in Tectonique de l ’Afr ique, UNESCO, p . 177-184.

Fabre , J . , 2005 : Géologie du Sahara occidenta l et centra l ; Musée Royal de l ’Afr ique Centra le – Belg ique; Tervuren Geoscience Col lect ion vol . 108, 572 p .

Jébrak , M. , 2010 : Compte rendu sommaire de miss ion en Mauri tanie – Permis Akjoujt NE et Knef issat ; unpubl ished report for Semafo, 5p.

Leroux, D.C. , Roy, W.D. and Orava, D. , 2007 : Technica l report on the Tas iast Gold project , Is lamic Republ ic of Mauri tania ; unpubl ished 43-101 report for Red Back Mining Inc . , 97 p .

Maurin , G. , Bronner , G. , Le Goff , E. , and Chardon, D. , 1996 : Châmi – Notice expl icat ive de la carte géologique à 1 : 200,000; Républ ique Is lamique de Mauri tanie , Projet FED no. 7 ACP MAU 009 (MAU 7002) , Prospect ion aur ifère dans le Tas iast – Ti j i r i t , N2459.

Potre l , A. , 1994 : Évolut ion tectono-métamorphique d ’un segment de croûte cont inenta le archéenne. Exemple de l ’Amsaga (R.I . de Mauri tanie) , Dorsa le de Réguibat ; Thèse de Doctorat de l ’Univers i té de Rennes I , Mémoires de Géoscience – Rennes no. 56 , 359 p . et annexes .

Rheault , M. , in prep. : Kneiv issat Project – Litho-structura l ana lys is of Sate l l i te and Geophysica l data of Mauri tania ; unpubl ished report by Eff ig is Geosolut ions for Algold Resources .

Stuart , H. , 2008 : Technica l Report on the Tas iast Gold Mine, Is lamic Republ ic of Mauri tania ; unpubl ished 43-101 report for Red Back Mining, 100 p .

Kneivissat Technical Report – Mauritania Page 27

Date and Signature Algold Resources Ltd. – Kneivissat Property – Mauritania – 43-101 Technical Evaluat ion Report This report has been prepared by André Ciesie lski , DSc. , P.Geo, and François Auclair , MSc. , P. Geo. Signed in Montreal October 31st , 2013

AC Certificate of Author and Consent

I Andre Cies ie lsk i , P . Geo. hereby cert i fy that : 1 . I am a Canadian c i t izen, l iv ing at 1777 Du Manoir Av. , Montrea l , H2V 1B7, Qc,

Canada ; 2 . I have a Doctorate from "Pierre & Marie Cur ie Univers i ty" , France. 3 . I am a member of "Ordre des Géologues du Québec" , l icence # 514. 4 . I have worked as a profess ional geologist s ince my graduat ion, the f i rs t 17 years as

a research geoscient is t a t the GSC. I have performed f ie ld works , made f ie ld tr ips and publ ished documents and reports on var ious propert ies in West Afr ica .

5 . I have read the def in i t ion of "qual i f ied person" set out in Nat ional Instrument 43-101 (NI 43-101) and cert i fy that g iven my educat ion, aff i l ia t ion with a profess ional associat ion and past re levant work exper ience, I fu lf i l l the requirements to be a "qual i f ied person" for the purposes of NI 43-101.

6 . I am responsib le for the preparat ion of the Technica l Report ent i t led "Algold Resources Ltd .– Kneiv issat Property – Mauri tania – 43-101 Technica l Evaluat ion Report " dated October 31st , 2013.

7 . I d id not v is i t the property , I co-s ign the present report with F. Aucla ir who vis i ted the property the last t ime between June 12 and 15, 2013.

8 . I am not aware of any mater ia l fact or mater ia l change with respect to the subject matter of th is Technica l Report that would make i t mis leading.

9 . I am independent of the issuer (Algold Resources Inc . ) , apply ing a l l of the tests in Sect ion 1 .5 of Nat ional Instrument 43-101.

10 . I have read Nat ional Instrument 43-101 and Form 43-101F1 and the technica l Report has been prepared in compliance with that instrument and form.

11 . I consent to the f i l ing of the Technica l Report with any stock exchange and regulatory author i ty and any publ icat ion by them for regulatory purposes , inc luding e lectronic publ icat ion in the publ ic company f i les on websites access ib le by the publ ic .

Montrea l , October 31st , 2013 André Cies ie lsk i , P . Geo.

FA Certificate of Author

a ) François Aucla i r , M.Sc . , P . Geo. 52 St Paul , Knowlton (Québec) J0E1V0 Emai l : auc la i r_francois@hotmai l .com I work for : GéoExpl ’Au Ltd , 52 St Paul , Knowlton, Québec , Canada , J0E 1V0.

b) This cer t i f ica te appl ies to the report t i t led “Technica l report Kneiv issat property , Maur i tan ia , prepared for Algold Resources L imited” and dated October 30 t h , 2013.

c ) I have graduated from Univers i té de Montréa l in 1983 with a Bachelor (honours) degree in Geology and a M.Sc . f rom Univers i té de Montréa l in 1987 in Geochemistry .

d ) I am a member in good s tanding of the Ordre des Géologues du Québec , Member # 239

e) I am a Fe l low of the Geologica l Assoc ia t ion of Canada , Member #5343

f ) I have worked as a geolog is t s ince graduat ion and have over 25 years ’ exper ience in the explorat ion , eva luat ion and deve lopment of minera l propert ies in Canada , Afr ica , Cyprus , Mexico , Colombia and other countr ies , and am fami l iar with and have v is i ted a var ie ty of s ty les of minera l depos i ts wor ldwide , with part icu lar emphas is on prec ious and base meta ls .

g ) I have read the def in i t ion of “qua l i f ied person” set out in Nat iona l Instrument 43-101 (”NI 43-101”) and cer t i fy that by reason of my educat ion , aff i l ia t ion with a profess iona l assoc ia t ion , as def ined in NI 43-101 and past re levant work exper ience , I fu l f i l l the requirements to be a “qua l i f ied person” for the purpose of NI 43 -101 .

h) I v is i ted the Kneiv issat property in June 2013 gather ing documents and v is i t ing outcrops .

i ) I am respons ib le for the preparat ion of sect ions 4 , 5 and 6 of th is report .

j ) I cer t i fy that there i s no c i rcumstance that could interfere with my judgment regard ing the preparat ion of th is technica l report .

k ) I am not independent as to the meaning of N43-101, be ing the CEO of Algold Resources Ltd

l ) I have read Nat iona l Instrument 43-101 and Form 43-101F1, and the Technica l Report has been prepared in compl iance with that instrument and form.

m) To my best knowledge , informat ion and be l ief , the technica l report conta ins a l l sc ient i f ic and technica l informat ion that i s required to be d isc losed to make the technica l report not mis lead ing .

Dated th is Day of October 30 t h , 2013

Signed

_____________________________________ Franço i s Auc la i r , M.Sc . , P .Geo .

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