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Uranium: $39.00 US$/lb

Ownership, Earn-In and Licensing

The Ondundu Exclusive Prospecting Licence (“EPL 3195”) for base, rare and precious metal exploration is held 100% by Razorback Gold Mining Company (Pty) Limited (“Razorback”). Razorback is a 51% owned subsidiary of Westport Resources Namibia (Pty) Ltd.(“Westport”), which is a wholly-owned subsidiary of the Company. EPL 3195 expired on February 3, 2019 and was renewed until February 3, 2021.

On August 31, 2015 Omajete Mining Company (Proprietary) Limited, a 70% owned subsidiary of Westport executed a Heads of Agreement Earn-in on EPL3195 with B2Gold Mining Investments Limited and B2Gold Namibia (Proprietary) Limited (together “B2Gold”). On January 11, 2016, an Amended and Restated Heads of Agreement Earn-In was executed replacing the original agreement and the deadlines for the 75% earn-in and call option for the balance of the shares in Razorback were both extended by letter agreement dated October 2, 2018. The Company was paid an Earn-in extension fee of US$150,000 in 2018 and a further payment of US$100,000 in 2019 (‘Extension Fees”).

The Earn-In gives B2Gold the option to earn up to a 100% interest in EPL 3195. On January 1, 2018, B2Gold earned a 49% interest in Razorback (refer to note 10) by making cumulative expenditures of US$2,000,000. B2Gold has the option to increase its interest to 75% by making expenditures of US$1,300,000 by November 30, 2020 and by making a subsequent election to so increase its shareholding.

B2Gold has a call option exercisable to January 2, 2022 to increase its existing shareholding in Razorback to a 100%. The consideration for exercise of this call option is US$8,500,000 less the Extension Fees and other payments made by B2Gold to buy-out interests in EPL 3195 amounting to US$ 434,000. The consideration can be a 100% cash payment or, at B2Gold’s option, 50% cash payment with the balance paid by the issue of B2Gold common shares based on a 5-day VWAP prior to the exercise date.

If B2Gold elects to increase its shareholding in Razorback to a 75% interest, the Company has an option for a period of one year from such increase to put its remaining 25% interest to B2Gold for the consideration outlined above.

If B2Gold withdraws from the agreement, B2Gold will transfer to Westport Resources Namibia (Pty) Ltd.(“Westport”), which is a wholly-owned subsidiary of the Company, all ordinary shares held by B2Gold in Razorback for nil consideration. Westport would then hold 100% of the shares in Razorback.

Historical Drilling Results

Discovered in 1917, it is located in the Northern Zone of the Neoproterozoic Damara Orogen in north-central Namibia. Ondundu is a sediment-hosted, structurally controlled, mesothermal gold deposit belonging to a family of deposits that includes some of the world’s most significant gold resources including Muruntau (+100m oz), Telfer (+26 m oz), and Kumtor (+4m oz) and locally the Navachab Mine (+4m oz) and the Otjikoto Deposit (+1m oz).

Project Highlights:

  • Historical resource of approximately 500 K ounces of gold (4.5 MMt at 3.387 g/t); Goldfields 1989
  • 2,868 surface samples analyzed yield average of 7.7 g/t (historical trenching by Goldfields (Tsumeb Exploration) on the veins and parallel to the veins)
  • 5,583 m of drill samples analyzed yield mean of 8.5 g/t (Goldfields drilling from 1980’s)
  • Gold mineralization identified along a 2.5 km by 0.5 km ridge protruding approximately 60 m above grade surroundings (due to silicification of host rocks)
  • Open pitable shallow dipping stratiform deposit

Additional information on the Ondundu Project can be found in the NI 43-101 compliant Technical Report on the Ondundu Gold Project (EPL 3195).

Technical Report Ondundu Gold Project

This technical review was undertaken by Donald Boyack, who is independent from the Company and summarizes work undertaken at EPL 3195 to date and sets out the next steps recommended for the exploration of the Ondundu Gold EPL.