Age Dating:

The Company has confirmed that the age of the intrusives within the Sombrero district are equivalent to those of several major deposits to the east, in the Andahuaylas-Yauri belt. Based on results from five uranium-lead samples obtained from diorite sills at the Ccascabamba and Nioc targets, ages range from 38.85 to 40.47 million years. This places the mineralization within the same Eocene-aged metallogenic event that produced world-class deposits such as Las Bambas. It also establishes that the belt extends over 100 kilometres to the west, where the Sombrero project is located.

Regional Stream Sediment Survey:

Since 2017, the Company has been conducting geochemical surveys over 7000 square kilometres of land by collecting stream sediment samples from drainage basins to target potential mineralization. The results of these surveys can be seen in the maps to the right, which display copper, gold and silver values over the Sombrero project area. The highest copper values in stream sediments observed were at Macha Machay, which the Company staked in 2019. The highest copper values at Macha Machay were found in consecutive drainage basins over an area of approximately 12 kilometres by 6 kilometres. Both leachable (CN44) and ICP results demonstrate copper levels 1.5-3.5 times greater than those observed at the Sombrero Main, Nioc and Good Lucky intrusive clusters, which are all characterized by high-grade copper-gold surface mineralization.

Channel Sampling:

The first channel sample of the Company's 2019 program was Channel Sample 20, in the Fierrazo concession, with 184 metres of 0.57% copper-gold equivalent, including three higher grade internal intervals of 20 metres of 1.53% copper equivalent (1.50% copper and 0.04 g/t gold), 24 metres of 0.76% copper equivalent (0.70% copper and 0.09 g/t gold) and 20 metres of 0.95% copper equivalent (0.32% copper and 0.99 g/t gold). This mineralization was then extended through continuous channel sampling by 48 metres of 0.51% copper equivalent (0.49% copper and 0.04 g/t gold), creating a combined width of 232 metres of 0.55% copper equivalent (0.47% copper and 0.13 g/t gold). This extension included a higher grade internal interval of 40 metres of 1.26% copper equivalent (1.23% copper and 0.05 g/t gold).

Channel Sample 20 is characterized by a continuous broad interval of both endoskarn and exoskarn mineralization, and extends the known copper-gold skarn mineralization to over a 3.5-kilometre strike length along the margins of the contact zone between the Ferrobamba limestone and the mineralizing intrusive.

In 2018, the Company's technical team identified Channel Sample 18, with 30 metres of 1.93% copper equivalent, 24 metres of 0.73% CuEq and 54 metres of 0.34% CuEq.

Broad zones of oxide copper and gold mineralization (endoskarn) have been encountered within a diorite-monzondiorite intrusive complex. This is peripheral to the main exoskarn target areas between the intrusive body and the Ferrobamba limestone sequence. Importantly, the endoskarn mineralization has been encountered over an approximate width of one kilometre, demonstrating the potential size of the mineralized system at Sombrero.

The encountered mineralized intervals in Channel Sample 18 are separated by an interval where the trench was unable to reach bedrock. If the intervals of copper-gold mineralization are composited together with the area where no bedrock was encountered, using values of zero for both the copper and gold grades in the unsampled part of the trench, Channel Sample 18 has a result of 109 metres at 0.7% CuEq.

Channel Sample highlights are presented in the table below.

Sombrero Channel Sampling 2018 – Copper & Gold Significant Intercepts*

Sombrero Fierrazo Concession – Copper & Gold Significant Intercepts*

Historical Drill Core:

In April 2019, the Company obtained access to core from eight historical drill holes that were drilled in 2013 by a steel company targeting iron skarn mineralization. It assayed the core and results encountered copper-gold mineralization in each hole. Highlights include 116 metres of 0.58% copper equivalent (0.42% Cu and 0.24 g/t Au), 90.4 metres of 0.51% copper equivalent (0.48% Cu and 0.05 g/t Au) and 51 metres of 0.53% copper equivalent (0.43% Cu and 0.16 g/t Au). Collectively, the historical drill holes define a mineralized body totaling 300 metres of strike length with an average width of approximately 150 – 200 metres that is open both to the north and to the south (see June 13, 2019 release).

Significant Intercepts – Historical Drill Holes*

The results from the historical drill core demonstrate that copper-gold sulphide mineralization extends to depth underneath the previously reported surface channel sample of 232 metres of 0.55% Cu equivalent (see April 3, 2019 release). In addition, the mineralization provides a clear analogue to discover additional large-scale mineralized exoskarn bodies within the Sombrero property, based on similar geophysical and geochemical signatures. Finally, the mineralization encountered in the historical drill holes confirms the Company’s belief that Sombrero has analogous geological and mineralization characteristics of the deposits of the Las Bambas district.

Good Lucky Prospect:

The Mollecruz concessions are approximately 1,000 hectares and represent another cluster of mineralizing intrusive bodies in the Sombrero district that are characterized by copper-gold skarn mineralization. The Mollecruz concessions were acquired in June 2018 and include the Good Lucky prospect. The principal skarn body at the Good Lucky prospect demonstrates high-grade copper-gold mineralization sampled over a 600-metre length and over 250 vertical metres. Rock samples graded up to 5.12 g/t gold and 4.29% copper in sulphide mineralization.

Ccello Prospect (High-Grade Silver):

A first-pass reconnaissance consisting of mapping and sampling was conducted at Ccello to follow up on anomalous stream sediment samples from a survey conducted in 2017. This yielded a previously unrecognized high sulphidation alteration system characterized by a large-scale clay alteration, quartz-alunite alteration, massive silica and zones of stockwork veining. Within the broader alteration system, silver mineralization is hosted within massive silica structures that are associated with quartz-alunite alteration along a 500-metre zone. Rock grab sample highlights include the following silver values: 981 g/t, 72.1 g/t, 64.4 g/t, 40.6 g/t, 26.6 g/t and 20.5 g/t.

In addition, stockwork veining shows highly elevated arsenic and antimony values across the broader clay and clay silica alteration zones, with values up to 5,770 g/t arsenic and 7,700 g/t antimony. These elevated values of arsenic and antimony, in conjunction with structurally controlled silver mineralization within massive silica structures, is interpreted by the Company’s technical team to represent the upper levels of a high sulphidation system with a precious metal target at shallow depths beneath the surface. For more information, see Sept. 30, 2019 news release.

Additional Prospects:

In addition, two new prospects, Totora and Uchuy, have also been discovered through sampling. At Totora, the Company's geologists have sampled gold values up to 5.07 g/t and copper values up to 3.14%. At Uchuy, strong arsenic and antimony values have been sampled which indicate the potential for proximal base and precious metal mineralization.

Historical surface samples from Sombrero indicate significant copper and gold values. Geological mapping and geochemical sampling were completed over the project in 2007, and high-resolution ground magnetic and induced polarization surveys were completed during 2008. Importantly there has been no drilling that has occurred on the project to date.