Extensive Gold Mineralization Confirmed In Kebigada Diamond Drilling

TABLE 1 - DRILLHOLE SUMMARY

Hole ID

Easting

Northing

Elevation

(m)

End-of-Hole

(m)

Azimuth

Dip

Line

GRDD039

749093

344042

867

454.50

043°

-55°

450N

GRDD040

748919

344714

862

400.80

043°

-55°

1050N

GRDD041

748899

344628

863

468.00

043°

-55°

1000N

TABLE 2 - SIGNIFICANT INTERCEPTS¹

Hole ID

From
(m)

To
(m)

Interval
(m)

Gold Grade
(g/t)

GRDD039

378.68

379.86

1.18

1.22

GRDD040

0

400.80

400.80

0.57

Including

0

15

15

0.72

220.01

315.90

95.88

1.24

330.30

363.12

32.82

0.69

GRDD041

0

468

468

0.43

Including

0

24

24

0.77

148.97

179.08

30.11

0.53

279.92

352.04

72.12

0.74

TABLE 3 - GIRO GOLD PROJECT GLOBAL MRE AT 0.5 G/T AU CUT-OFF GRADE (H&SC)¹

Kebigada Deposit

Douze Match Deposit

Combined

Tonnes (Mt)

Au

(g/t)

Au

(Moz)

Tonnes (Mt)

Au

(g/t)

Au

(Moz)

Tonnes (Mt)

Au

(g/t)

Au

(Moz)

Indicated

69

1.09

2.4

2.2

1.2

0.09

71

1.10

2.5

Inferred

54

0.95

1.7

5.8

1.2

0.23

60

0.98

1.9

Total

124

1.03

4.1

8.1

1.2

0.32

132

1.04

4.4

TABLE 4 - GRADE TONNAGE DATA FOR KEBIGADA MRE (H&SC)¹

Cut-off

(Au g/t)

Tonnes

(Mt)

Au

(g/t)

Au

(Moz)

0.0

429.6

0.45

6.19

0.3

205.8

0.78

5.13

0.4

158.8

0.90

4.61

0.5

123.7

1.03

4.10

0.6

98.2

1.16

3.65

0.7

78.4

1.29

3.24

0.8

62.8

1.42

2.86

0.9

50.5

1.56

2.53

1.0

41.0

1.70

2.24

1.2

27.9

1.98

1.78

1.3

23.4

2.12

1.60

1.5

17.0

2.40

1.31

2.0

8.7

3.04

0.85

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the Public Report.
• In cases where ‘industry standard' work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Diamond Core Drilling - Kebigada

Sampling of diamond core was carried out under strict QAQC procedures as per industry standards where certified reference materials (CRMs) of varying grades, blank samples and field duplicates are each inserted at a rate of 1 in 30 so that every 10th sample is a quality control sample. Sampling was carried out according to lithological/structural boundaries having a minimum sample width of 40cm and a maximum sample width of 2m. HQ and NQ samples were split with the same half consistently submitted for assay. The samples which had an average weight of approximately 2-3kg were then crushed and split in an accredited laboratory to produce a 50g charge for fire assay with AA finish.

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

Diamond Core Drilling - Kebigada

HQ core drilling down to fresh rock after which the hole was cased off before changing to NQ. Standard core barrels were used throughout the drilling campaign. The holes were orientated with a compass, and surveyed at 30 m intervals using a Reflex EZ-Trac instrument. Solid drill core was orientated using a Reflex Act III core orientation tool.

• Method of recording and assessing core and chip sample recoveries and results assessed.
• Measures taken to maximise sample recovery and ensure representative nature of the samples.
• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Diamond Core Drilling - Kebigada

All core is fitted and measured at the drill site and core gains or recoveries recorded against the driller's depths. Sample recovery was recorded in the drill logs, as well as sample loss. Core recoveries were generally better than 80% in the weathered zone and greater than 95% in the intermediate and fresh profile. Where losses were noted in the saprolitic interval, sample widths were limited to the width of the run with a maximum of 1.5m which was the length of the core barrel. As poor recovery affected a minority of the samples, it was not taken into account while calculating mineralised intervals.

• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.
• The total length and percentage of the relevant intersections logged.

Diamond Core Drilling - Kebigada

All core was logged geologically, geotechnically and structurally at industry standard levels. Core is marked with metre marks every metre and orientation and cut lines marked on every hole according to a fixed procedure. Logging is both qualitative and quantitative with core photographed for both wet and dry sample before being split. The total length of all drill holes was logged recording lithology, alteration, weathering, colour, grain size, strength, mineralisation and quartz veining.

• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.
• Whether sample sizes are appropriate to the grain size of the material being sampled.

Diamond Core Drilling - Kebigada

The highly weathered saprolitic zone was split using a bladed instrument. As soon as core had sufficient strength to withstand cutting using a diamond saw the cutting method was changed to the latter. All core was halved with the same half selected for sampling according to procedure. Sampling was then conducted according to geology or structure generally having a maximum sample width of 1m for HQ core and 2m for NQ. Half core samples were then bagged in clear plastic bags with pre-printed sample tickets. Sampling was carried out under strict QAQC procedures as per industry standards where certified reference materials (CRMs) of varying grades, blank samples and field duplicates are each inserted at a rate of 1 in 30 so that every 10th sample is a quality control sample. The sample bags containing approximately 2-3kg of diamond core sample were sent to the SGS (African Assay Laboratories) in Tanzania.

The final sample was crushed to >75% of the sample passing as less than 2mm. 1.5kg of sample was split from the crushed sample and pulverized until 85% of the material could pass a 75um sieve. From this, a 50g sample was selected for fire assay at the SGS Laboratory.

Crushing and pulverising were subject to regular quality control practices of the laboratory.

Sample sizes are appropriate considering the grain size of the samples. However, in the case of lateritic lithology, a nugget effect is likely to occur. Intervals in laterites will therefore be treated separately in any resource estimations.

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

Diamond Core Drilling - Kebigada

The laboratory used 50g of sample and analysed samples using Fire Assay with an AA finish. This technique is considered an appropriate method to evaluate total gold content of the samples. In addition to the laboratory's internal QC procedure, every 10^th field sample comprised a blank sample or standard sample.

The interval of core samples of hole GRDD039 (151 samples) contained 6 blanks and 5 standards whose results showed excellent accuracy. Furthermore, 6 duplicates were analysed and showed good precision.

The interval of core samples of hole GRDD040 (408 samples) contained 15 blanks and 15 standards whose results showed excellent accuracy. Furthermore, 15 duplicates were analysed and showed good precision.

The interval of core samples of hole GRDD041 (480 samples) contained 18 blanks and 18 standards whose results showed excellent accuracy. Furthermore, 17 duplicates were analysed and showed good precision.

• The verification of significant intersections by either independent or alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.

Diamond Core Drilling - Kebigada

Logging and sampling data was entered into spreadsheets, then checked by the Exploration Manager for inconsistencies and stored in an Access database.

No holes were twinned.

Holes are logged by hand on printed log sheets. Logging is done according to standardised header, lithological and structural information. Data is then input into EXCEL spread sheets which are then emailed to the database manager for input into Access. Data is then interrogated and all discrepancies are communicated and resolved with field teams to ensure only properly verified data is stored in the Access database.

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic control.

Drill hole collars were recorded using a Garmin handheld GPS with an error margin of less than 5m. Hole positions are marked using tape and compass reducing relative error to less than 1metre along each drill line. The holes are surveyed using a DGPS with centimetre accuracy. Coordinates are reported in the WGS84-UTM35N Grid system.

• Data spacing for reporting of Exploration Results.
• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
• Whether sample compositing has been applied.

Diamond Core Drilling - Kebigada

The diamond drilling program is designed to delineate the down-dip extensions of the mineralised zones.

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

Diamond Core Drilling - Kebigada

Drillholes were oriented perpendicularly to the interpreted strike of the mineralised zone already drill delineated by the previous drilling.

• The measures taken to ensure sample security.

Samples were collected under strict supervision of the Senior Exploration Geologist. Bagged samples were then labelled and sealed and stored on site in a locked dwelling for transport to the laboratory. Samples were transported to the laboratory in a sealed vehicle under supervision of a contracted logistics company.

• The results of any audits or reviews of sampling techniques and data.

The Competent Person for the Exploration Results has not visited the site due to Covid-19 travel restrictions. However, the Competent Person has reviewed all of the historical QAQC data and checked assays with the original laboratory reports and is satisfied that the exploration work has been carried out in a satisfactory manner.

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The project comprises two Exploitation Permits (Permisd'Exploitation), PE5046 and PE5049.These are owned by a joint venture company, Giro Goldfields Sarl, formed between Amani Consulting Sarl (65%) and Société Minière de Kilo-Moto SA (SOKIMO) (35%), both DRC registered entities. Amani Gold holds 85% of Amani Consulting. Tenure is in good standing.

• Acknowledgment and appraisal of exploration by other parties.

The licensed area has not been systematically explored since the end of Belgian colonial rule in 1960. Two field visits were conducted in the area, the first in 2010 by the "Office des Mines d'Or de Kilo-Moto" (OKIMO), and the second in December 2011 by Universal Consulting SPRL, working for Amani Consulting.

Following a review of historical and previous exploration data, Panex Resources Inc. conducted a first RC drilling campaign at the Giro prospect between December 2013 and February 2014, completing 57 holes for 2,888m.

• Deposit type, geological setting and style of mineralisation.

The geological setting is comprised mostly of volcano-sedimentary rocks from the Kibalian complex, with multiple granites and granitoid intrusions. A network of faults seems to have been reactivated at different intervals.

Kebigada

At the Giro Gold Project, the main lithologies hosting the mineralisation are saprolite, quartz veins and stringers and silicified volcano-sediments. Mineralisation is associated with quartz veining and silicification of host rocks along a major NW trending shear zone. Generally, higher gold grades are associated with greater percentages of sulphide (pyrite) and silicification.

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
  • easting and northing of the drill hole collar
  • elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
  • dip and azimuth of the hole
  • down hole length and interception depth
  • hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Drill hole collar data and main intervals are shown in Table 1.

Elevation data was recorded using a Garmin handheld GPS. Once the programme is completed all drill hole collars will be surveyed with a DGPS to accurately establish position and elevation.

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.

Diamond Core Drilling - Kebigada

Each sample generally represented 1m of diamond drilling however lithological and structural contacts are taken in consideration and intervals adjusted accordingly.

The intersections reported were weighted by length to calculate the mean grades over sample intervals.

• These relationships are particularly important in the reporting of Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known').

Diamond Core Drilling - Kebigada

The drill holes were drilled with dips of -55°.

Drilling has indicated that the drill holes were drilled normal to the foliation but structural logging suggests mineralisation is associated with multiple structural orientations which makes it difficult to ascertain the true structural orientation controlling mineralisation.

True widths could not be determined as dip of mineralisation is still not clear with limited overlap in drill holes but is estimated to be 50-60% when using the dip of the regional foliation.

• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Table 1 shows the drill collar positions, Figure 2 shows a cross section with reported results. All mineralised intervals are reported in Table 6.

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

Drill holes drilled in the completed program are shown in Table 1 and all the results received for Kebigada which are reported in Table 6, according to the data aggregation method described previously. All high grade intercepts are reported as included intervals in Table 2.

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Kebigada results are being assessed on an ongoing basis and additional holes planned and drilled when deemed necessary. A number of significant soil anomalies in the immediate vicinity of the main Kebigada ore body will be tested with shallow RC drilling.