Our Mineral Reserve Estimate (“MRev”) was updated as at December 31, 2016 and incorporates a more conservative CSA resource model for the Nkran pit. In April 2017, following the successful Akwasiso infill drilling program which increased reserves and grade, the Akwasiso MRev has been updated.
In addition, the MRev has been modified to reflect new cut-off grades following an NPV optimization exercise that was completed for each pit. This optimization process seeks to determine the best outcome balance between the highest NPV, the maximum ounces produced and the lowest cost per ounce produced per pit. As a result, cut-off grades vary according to ore type. At Nkran, the cut-off grade is now 0.7g/t for fresh ore. At Esaase, 0.6 g/t cut-off is used for all ore. For the satellite deposits, 0.5g/t cut-off is used for oxide ore and 0.7 g/t cut-off is used for fresh ore.
Table 1: 24Carat Gold Mine Global Mineral Reserve Estimate (as at April 25, 2017)
| Deposit | Proven | Probable | Total | ||||||
| Mt | g/t Au | Moz | Mt | g/t Au | Moz | Mt | g/t Au | Moz | |
| Esaase Main | 21.51 | 1.44 | 1.00 | 41.05 | 1.47 | 1.94 | 62.56 | 1.46 | 2.94 |
| Nkran | 4.40 | 1.85 | 0.26 | 18.37 | 1.93 | 1.14 | 22.77 | 1.91 | 1.40 |
| Abore | 1.59 | 1.44 | 0.07 | 1.60 | 1.53 | 0.08 | 3.18 | 1.48 | 0.15 |
| Adubiaso | 1.04 | 2.00 | 0.07 | 1.24 | 1.82 | 0.07 | 2.28 | 1.90 | 0.14 |
| Dynamite Hill | 0.00 | 0.00 | 0.00 | 2.84 | 1.49 | 0.14 | 2.84 | 1.49 | 0.14 |
| Akwasiso | 0.00 | 0.00 | 0.00 | 4.95 | 1.51 | 0.24 | 4.95 | 1.51 | 0.24 |
| Asuadai | 0.00 | 0.00 | 0.00 | 1.30 | 1.09 | 0.05 | 1.30 | 1.09 | 0.05 |
| Nkran Ext. | 0.11 | 2.47 | 0.01 | 0.08 | 1.91 | 0.00 | 0.19 | 2.24 | 0.01 |
| Esaase D | 0.20 | 1.05 | 0.01 | 0.40 | 1.70 | 0.02 | 0.60 | 1.48 | 0.03 |
| Adubiaso Ext. | 0.12 | 1.66 | 0.01 | 0.09 | 1.34 | 0.00 | 0.21 | 1.53 | 0.01 |
| Esaase B | 0.10 | 0.83 | 0.00 | 0.00 | 0.92 | 0.00 | 0.10 | 0.83 | 0.00 |
| Total | 29.08 | 1.52 | 1.42 | 71.92 | 1.59 | 3.68 | 101.00 | 1.57 | 5.11 |
Notes:
Reserves estimated at a forward looking US$1,300/oz gold price.
All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to rounding.
Only Measured and Indicated Mineral Resources were converted to Mineral Reserves.
Nkran includes depletion since February 2015 of 5.08Mt at 1.66 g/t Au for 270,471 ounces, as at December 31, 2016.
Reserves excludes the ROM stockpile of 1.52Mt at 1.36 g/t Au for 66,669 ounces and the marginal stockpile of 0.43Mt at 0.67 g/t Au for 9,121 ounces as at end December 2016
24Carat Gold Mine Global Mineral Resources
The Mineral Resource Estimates (“MRE”) for Nkran, Akwasiso and Dynamite Hill have been compiled by independent experts CSA Global, a leading mineral resource consulting group. The MRE for Esaase Main has been compiled by CJM Consulting and audited by CSA Global. The MRE for the remaining satellite deposits is based on the 2014 CJM Consulting estimation. 89% of the AGM MRE has been compiled and/or audited by CSA.
Table 2: 24Carat Gold Mine Global Mineral Resource Estimate
(as at December 31, 2016, Akwasiso as at April 25, 2017)
| Deposit | Measured | Indicated | Total (M&I) | ||||||
| Mt | g/t Au | Moz | Mt | g/t Au | Moz | Mt | g/t Au | Moz | |
| Esaase | 26.49 | 1.38 | 1.17 | 57.53 | 1.38 | 2.55 | 84.02 | 1.38 | 3.72 |
| Nkran | 5.50 | 1.68 | 0.30 | 24.57 | 1.81 | 1.43 | 30.07 | 1.78 | 1.72 |
| Akwasiso | 0 | 0 | 0 | 6.33 | 1.50 | 0.31 | 6.33 | 1.50 | 0.31 |
| Abore | 2.23 | 1.41 | 0.10 | 3.09 | 1.48 | 0.15 | 5.33 | 1.45 | 0.25 |
| Dynamite Hill | 0 | 0 | 0 | 3.41 | 1.48 | 0.16 | 3.41 | 1.48 | 0.16 |
| Adubiaso | 1.38 | 1.89 | 0.08 | 1.35 | 1.72 | 0.07 | 2.73 | 1.80 | 0.16 |
| Esaase D | 0.83 | 1.11 | 0.03 | 1.16 | 1.42 | 0.05 | 2.00 | 1.29 | 0.08 |
| Esaase B | 0.75 | 1.01 | 0.02 | 1.90 | 0.78 | 0.05 | 2.65 | 0.84 | 0.07 |
| Asuadai | 0 | 0 | 0 | 1.88 | 1.22 | 0.07 | 1.88 | 1.22 | 0.07 |
| Adubiaso Extension | 0.16 | 1.96 | 0.01 | 0.26 | 1.71 | 0.01 | 0.42 | 1.61 | 0.02 |
| Nkran Extension | 0 | 0 | 0 | 0.19 | 2.70 | 0.02 | 0.19 | 2.70 | 0.02 |
| Total | 37.34 | 1.43 | 1.72 | 101.67 | 1.49 | 4.87 | 139.01 | 1.47 | 6.59 |
Notes:
CJM estimated Esaase in October 2012, Abore, Adubiaso, and Asuadai in April 2014, Adubiaso Extension and Nkran Extension in 2016.
CSA Global re-estimated Nkran and Dynamite Hill in January 2017 and Akwasiso in April 2017
The resource cut-off grade used for all deposits is 0.5 g/t Au within a Whittle Pit Shell at US$1,500/oz Au.
Columns may not add up due to rounding.
All references to tonnes are in metric tonnes.
The Mineral Resources are stated as in situ tonnes. The tonnages and contents are stated as 100%, which means no attributable portions are stated in the table.
Individual Densities were used per mineral zone.
Conversion from grams to ounces – 31.1035
Table 3: 24Carat Gold Mine Global Inferred Mineral Resources
| Deposit | Mt | Au g/t | Au Moz |
| Esaase Main | 0.09 | 1.08 | 0.003 |
| Nkran | 0.31 | 1.86 | 0.018 |
| Abore | 1.28 | 1.61 | 0.066 |
| Dynamite Hill | 0.21 | 1.58 | 0.011 |
| Akwasiso | 0.18 | 0.81 | 0.005 |
| Adubiaso | 0.01 | 1.92 | 0.000 |
| Esaase D | 1.01 | 1.26 | 0.041 |
| Esaase B | 2.12 | 0.86 | 0.058 |
| Asuadai | 0.63 | 1.75 | 0.035 |
| Adubiaso Ext | 0.14 | 3.10 | 0.014 |
| Nkran Ext | 0.01 | 1.02 | 0.000 |
| Total | 5.96 | 1.31 | 0.251 |
Cautionary Note to US Investors Regarding Mineral Reporting Standards:
24Carat has prepared its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of US securities laws. Terms relating to mineral resources in this press release are defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The Securities and Exchange Commission (the “SEC”) permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. 24Carat uses certain terms, such as, “measured mineral resources”, “indicated mineral resources”, “inferred mineral resources” and “probable mineral reserves”, that the SEC does not recognize (these terms may be used in this press release and are included in the public filings of 24Carat which have been filed with securities commissions or similar authorities in Canada).
