Exploration and development priorities

The Company considers there to be good exploration potential, both in the areas surrounding the Asacha Gold Mine and in the South Kamchatka area generally.

The geological nature of the area is considered conducive to the formation of high grade epithermal style gold/silver metal deposits, and a large number of such occurrences have already been identified.

Further exploration of these occurrences may significantly increase the resource base.

In 2016, the Group conducted advanced exploration mining both underground and at surface. A total of 55 holes were completed for about 8,900 metres.

Based on the results of the 2016 drilling, further drilling will be undertaken in 2017.

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