marquee to acquire high grade cobalt projects - … · 2017-12-07 · 1 5 december 2017 asx release...

WWW.MARQUEERESOURCES.COM.AU 1

5December2017ASXRELEASE

MARQUEETOACQUIREHIGHGRADECOBALTPROJECTS-CANADAMarquee Resources Limited (“MQR”) is to acquire three highly prospective Canadian exploration projects:WernerLake,WarnerLakeEast/WestandSkeletonLake.

PROJECTHIGHLIGHTS

WernerLakeProject(a)• Tier1LocationforminingofcobaltinOntario,Canada• IndicatedMineralResourceof79,400Tonnesat0.43%Co(b)• 40,000+mofdiamonddrillingpreviouslycompleted• Mineralisedzonesremainopeninalldirections• Totalmineproductionwasreportedat143,386lbsofcobaltgradingapproximately2.2%cobaltand

0.75%copper(Hughes2010a).• [email protected]%Co(from25.4m)[email protected]%Co

WernerLakeEast/WestProject• Unification of Werner Lake Area undertaken to explore additional high-grade cobalt mineralised

zonesthroughouttheWernerLakeGeologicalBelt.• AdjoinsPastProducingCu-NI-PGE+CobaltMine• Approx.18.4sqKm(WestBlock7.8sqKm+EastBlock10.6sqKm)• ExplorationtobeundertakentoconfirmextensionofMineTrendtoEastandWest

SkeletonLakeProject(MulliganArea)(c)• Toacquire1,408hectares(14.08km2)prospectiveforcobaltandsituated55kmnorthofthetownof

Cobalt,Ontario.• TheclaimssurroundandabutMeteoricResourcesNL (MEI:ASX),MulliganandMulliganEastCobalt

Property• Historical assays at the neighbouring Foster Marshall Ag-Co project returned high-grade up to

4.5%Cobaltand87oz/tSilver(www.suprememetalscorp.com)

(a)HistoricalinformationsourcedfromGlobalEnergyMetalsandSuperiorExplorationLtdexplorationreports(b) Thisworkwas based on a technical report AGPMining Consultants, Sept 6, 2017 titled “NI 43-101 Resource Estimate for theWernerLakeProject,WernerLakeOntario”forGlobalEnergyMetalsCorp(“GEMC”),conformingtoCIMtechnicalstandardsandNI43-101reportingstandardsforresourcesestimates.MQRdeemsthisresourcestillrelevantbecauseeconomicparametershavenotnegativelychangedsignificantly sincepublicationdateandMQRhasconfidence in theestimatebasedon reviewof technicaldata.Therearenomorerecentestimatesordataavailable.Toupgradethisworkfromahistoricalorforeignestimatetoacurrentmineralresource,MRQwillreviewthedatasetandcompleteadditionaldrillingandmodelingworktoverifythehistoricorforeignestimateasacurrentmineral resource. Aqualifiedpersonhasnotdonesufficientworktoclassify thehistoricalor foreignestimateascurrentmineral resources or reserves under JORC (2012) standards, and the issuer is not treating the historical or foreign estimate as acurrentmineralresourcesorreserves.Seefrompage6forfurtherinformation.(c)TheMulligancobaltoccurrenceiscontiguoustotheSkeletonLakeprojectandisanextremelyimportantindicatorwithrespecttothesurroundinggeology.

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Figure0-1:LocationMap

Figure0-2:WernerLakeArea

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Figure0-3:SkeletonLake(MulliganArea)LocationMap

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EXECUTIVESUMMARYMarqueeResourcesLimited(CompanyorMarquee)(ASX:MQR)ispleasedtoannouncethatithasenteredintoabindingSharePurchaseAgreement(SPA)withtheshareholders(Sellers)ofCanadianCO27PtyLtd(CO27)underwhichitintendstoacquire100%oftheissuedcapitalofCO27(Acquisition).CO27 is party to the following agreements (Project Agreements) to acquire interests in the following cobaltprojects(Projects):

• AnagreementwithGlobalEnergyMetalsCorp.(GEMC)toearnuptoa70%interestintheWernerLakeProject;

• AnagreementwithCaamoCapitalCorp.,GinoChitaroni andBlackstoneDevelopment Inc. to acquirea100%interestintheSkeletonLakeProject;and

• AnagreementwithPerryVernEnglishtoacquirea100%interestintheWernerLakeEast/WestProject.ThepurchasepricepayabletotheSellersfortheacquisitionofCO27is11,000,000shares intheCompany,andAUD$200,000plusUS$150,000incash,ofwhichAUD$25,000plusUS$20,000incashcomprisesanon-refundabledepositenablingtheCompanytocarryoutanexclusive,60-dayperiodofduediligenceintotheProjects.ThecashcomponentissubjecttoASXgranting‘passthrough’relieffromListingRule10.7,ortheCompanyprovidingASXwithappropriateevidenceofpastexpenditureontheProjects.CompletionoftheAcquisitionissubjecttocertainconditionsincludingMarqueeobtainingshareholderapprovalsand completing due diligence to its absolute satisfaction. The Sellers of CO27 have given representations,warrantiesandindemnitiesinfavourofMarqueewhichareconsideredcustomaryforatransactionofthisnature.The aggregate purchase price payable by the Sellers to the vendors under the Project Agreements isAUD$100,000plusUS$80,000worthof shares (basedon the5dayVWAPpost completion),andAUD$200,000plus US$150,000 in cash. These shares and cash will effectively come out of the consideration paid by theCompanytotheSellersundertheSPA.Subject tocompletion,under theProjectAgreement for theWernerLakeProject, theCompanywillbeable toinitially acquire a 30% interest in theWerner Lake Project by incurring expenditure of AUD$1,000,000 on theWernerLakeProjectoveraperiodof12months.TheCompanycan thenacquirea further40% interest in theWernerLakeProject fora totalof70%by incurringadditionalexpenditureofAUD$1,500,000overa24-monthperiod.Thepartieswill thenforma jointventuretoconduct furtherexplorationanddevelopmentactivitiesonthe Project. If the parties obtain an encouraging pre-feasibility study according to commercially reasonablestandards(anindependentexpertwillbeappointedifthepartiescannotagree)withrespecttoanypartoftheProjectthentheCompanymustpayAUD$150,000incashtoGlobalEnergyMetalsCorp.Theagreementcontainsotherprovisionsconsideredcustomaryforsuchdocuments.Subjecttocompletion,thecompanywillacquirea100%interestintheSkeletonLakeProjectanda100%interestintheWernerLakeEast/WestProject.Subjecttocompletion,theCompanywillalsopayvariousnetsmelterroyaltiesrangingfrom2%to3.5%overtheProjects.TheSellerscompriseSyracuseCapitalPtyLtd(Syracuse),JetCapitalPtyLtd,VonrossNomineesPtyLtdandNinetyThreePtyLtd,noneofwhomarerelatedpartiesoftheCompany.However,ASXhasdeterminedthatSyracuseisaparty of the type contemplated in Listing Rule 10.1.5 and, therefore, the Acquisition requires shareholder

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approval for the purposes of Listing Rule 10.1. Syracuse is a substantial shareholder in the Company, and iscontrolledbyRoccoTassonewhowaspreviouslyadirectoroftheCompany.ASXhasdeterminedthattheAcquisitionwillnotrequiretheCompanytore-complywithChapters1and2oftheListingRules.However, theCompanywillberequiredtoobtainshareholderapprovalof theAcquisition for thepurposesofListingRule11.1.2due to thechangeof scale.TheCompanyanticipates thatexistingshareholderswillbedilutedbyapproximately54%asaresultofthesharesissuedundertheSPA.AlthoughtheCompanyhasnocurrentintentionofraisingcapital inconnectionwiththeAcquisition, if itultimatelydoesthenshareholdersmaybedilutedfurther.Inaddition,theCompanywillberequiredtoobtainshareholderapproval forthepurposesof item7ofsection611oftheCorporationsActduetotheSellersacquiringanaggregateinterest inexcessof20%intheCompanyundertheAcquisition.TheCompanyunderstands,however,thattheSellerswillceasetoaggregatetheirinterestsimmediatelyfollowingcompletionastheydonotconsiderthemselvestobeassociatesofoneanother,otherthanbyvirtueoftheSPA.Therefore, if the Company is satisfiedwith its due diligence investigations into the Projects, the CompanywillconveneageneralmeetingofshareholderstoapprovetheAcquisitionbyissuinganoticeofmeetingcontainingan independent expert’s report on the fairness and reasonableness of the Acquisition, and an independentgeologist’sreportonthevaluationoftheProjects.Marquee’sManagingDirectorCharlesThomascommented:“Weareextremelypleasedtohavebeenable tosecure thisagreementwhichallowsus toacquire interests inthesethreeexcitingcobaltprojects”“By acquiring these three abutting propertieswe have consolidated theWerner Lake areawhich contains thepreviouslyoperatingWernerLakecobaltmine”“WernerLakeisoneofthekeycobaltresourcesinCanadaandthistransactionenablesMarqueeshareholderstogain exposure to the booming cobalt market which is a critical material to the growing rechargeable batterymarket”“WewillnowmoveextremelyquicklytocompleteDueDiligenceandactivatetheexplorationanddevelopmentprogram”.MitchellSmithCEOofGlobalEnergyMetalssaid:“Weare verypleased tobe advancing this importantCanadian cobalt projectwithMarqueeResources. Theirstrongfundingsupportandexperiencedoperatingteamwereimportantconsiderationsinpartneringwiththemto ensure that theWerner Lake project advances and builds value for shareholders under the current cobaltmarketconditions.” F

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AnindicativetimetablefortheAcquisitionissetoutbelow.Event Date

AnnouncementoftheAcquisition 5December2017

DuediligenceinvestigationsintotheProjects Ongoing

Noticeofmeetingsenttoshareholders 19December2017

GeneralmeetingtoapprovetheAcquisition 18January2018

CompletionoftheAcquisition 25January2018

WERNERLAKEPROJECT

Overview/Disclaimers“Canmine”information(pre1990) isbasedprimarilyongovernmentdatabaseand isbelievedtobeanaccuratepresentationof information, but key assumptions,mining andprocessingparameters andmethods toprepareanyresourceestimatesareunknown.CanmineResourcescarriedoutextensiveexplorationanddevelopmentworkfrom1995to2002.Thisworkpre-datesJORCCode2012reportingstandardsbutwascompletedto industrystandardsoftheday. DetailsofthisworkhasbeenreportedintheJORCtable1locatedattheendofthisannouncement.Canminecompletedover25,071metresofdiamonddrilling todelineate thehistorical resourceestimate thatprompted theCanmine tomove to development stage studies on the project. Development work by Canmine included close spacedefinitiondiamonddrilling(12.5to50metrespacing).Alldrillcorewasloggedandsampledatsitebycompanygeologists and sent to a recognized laboratory for analysis. Historic reserves and resources were initiallycompletedbyCanminegeologicalstaffandnoindependentevaluationwasundertakenuntilStonerengineeringwascontractedtocompleteapre-feasibilitystudy in1997. Canmineundertookengineeringstudies includinga25tonnebulksamplethatwassenttoLakefieldResearchandWesternMineralisTechnologyPtyLtdforanalysis.ResultsofthosestudiesindicatedthataCoconcentratecouldbederivedwithrecoverablecobaltandcopperwithonlytracedeleteriouselements.AspartoftheworkprogramCanmineinitiatedundergrounddevelopmentandcompletedapproximately258metresofundergroundramping,driftingandraisingintotheWestCobaltDeposit.In2001,SNCLavalinwascontracted tocompletean independent resourceestimate for theproject. Theworkreviewed, assessed andmade recommendations on all previouswork andused industry leading techniques tofinalise a resource estimate published in 2002. The SNC resource estimate used more than 2,000 drill coresamplesassayedforcobalt,copper,goldandarsenic.In2009-2010PugetVenturescompleteda33hole,7,565metrediamonddrillprogramatWernerLake.Diamonddrill corewas loggedbycompanygeological staff, sampledandshipped to industry-recognized laboratories foranalysis.Thisdrillprogramwascarriedoutatorexceedingindustrystandardsatthetime.NofurtherworkwasundertakenbyPugetVentures.In2017GlobalEnergyMetalsCorp (“GEMC”)undertookamajor reassessmentof the technicaldataatWernerLakeandcontractedtoAGPMiningConsultants,arecognizedengineeringgroupthathadoversightinvolvementduring the Puget program, to complete a resource assessment. AGP compiled both the Canmine and Puget

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databases which included all diamond drilling, all assay results that could be verified, surface and trenchsampling,undergroundsampling,metallurgicalworkandanyotherdatathatcouldbeutilisedwithconfidence.After a lengthy process, AGP has commented on and made suggestions for further database work andimprovements.AGPvalidatedthedatasetandwassatisfiedthatthedatasetmethighsstandardsoftechnicalduediligence and undertook a NI 43-101 resource estimate thatmet the reporting requirements of the CanadianMiningandMetallurgical Institute(CIM2014). Thedatabaseconsistedof260diamonddrillholestotalingover32,702m, of which 254 holes were included in the model. As part of the resource estimate AGP created acomputerwireframegeologicalandgrademodelforthedepositandoncesatisfiedwiththetechnicalparametersassumedanundergroundminingsituation. Basicparametersfortheresourceestimateincluded;0.25%Cocut-off,assumedcopriceof$US15.60/lb,minimumminingwidthof1.5m,bulkdensitybasedonmineralisationthatrangedfrom2.97g/cm3to3.12g/cm3,metallurgicalrecoveriesof85%forcobalt,undergroundoperatingcostsof$US40,processingcostsof$US13.50,G&Aof$US8.00(allpertonneprocessed)andeffectiveminingdilutionof20%.AGPalsoemployedcappinglevelsoncobalt,copperandgoldandarsenicvaluesinthedatabase.Historicproduction from theearlyminingand theCanminedevelopmentwas calculated soas tonotoverestimate theresource.MorecomprehensivedetailscanbefoundintheJORCTableincludedaspartofthisreleases.Althoughnotfinallydetermined,andsubjecttoMarqueebeingsatisfiedwithitsduediligenceinvestigationsandcompleting to Acquisition, Marquee contemplates undertaking a minimum 13 hole, 3,500 m diamond drillprogram to test the extents of the project at depth and along strike, additional data compilation, survey ofhistoric collars, dewatering and underground sampling and finally additional metallurgical test work. This isexpectedtocostapproximatelyC$760,000andwouldlikelytakeplaceduringthefirsthalfof2018.TheCompanywilllikelyfundthisworkusingeither,oracombination,ofexistingcashreservesandfundsraisedunderacapitalraising.It is the opinion of the Competent Person, Paul Sarjeant, P.Geo., that the material included in this marketannouncementrelatingtotheWernerLakeCobaltProjectisanaccuraterepresentationoftheavailabledataandstudiesforthematerialminingproject.NoadditionalworkhasbeencompletedontheWernerLakeProjectsincethe release of the AGP Resource Estimate (September 2017). The historical or foreign Mineral Resourcestatements included in the release are not reported in accordance with the JORC Code 2012. A CompetentpersonhasnotdonesufficientworktoclassifytheestimatesofMineralResourcesorOreReservesinaccordancewiththeJORC2012Codeanditispossiblethatfollowingevaluationand/orfurtherexplorationworkthecurrentlyreportedestimatesmaymateriallychangeandhencewillneed tobe reportedafreshunderand inaccordancewiththeJORCCode2012.NothinghascometotheattentionofMarqueethatcausesittoquestiontheaccuracyorreliabilityoftheformerowner’sestimates;butMarqueehasnotindependentlyvalidatedtheformerowner’sestimatesandthereforeisnottoberegardedasreporting,adoptingorendorsingthoseestimates.AllhistoricalorforeignresourceestimatesinthisreleasehavebeenpreviouslyreportedbyformeroperatorsoftheWernerLakeProjectandarenottheresultsofMarqueeworkprograms. There isasignificantdatabaseofprojectreportsfortheWernerLakeProjectandthereader isdirectedtothemostrecentandrelevantreports:AGP Mining Consultants, 2017; NI 43-101 Resource Estimate for Werner Lake Cobalt Project, Werner Lake,Ontario Canada; Wahl, G.H. (SNC), 2002. Werner Lake Project, Canmine Resources Corporation, Geology &Resource Estimation. SNC-Lavalin Engineers and Constructors; Harper, G., 2011, Werner Lake Mineral BeltProperties,KenoraMiningDivision,Ontario,Report forPuget, July2008. Furtherreferencesare locatedwithintheReferencesectionofthisrelease.

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WERNERLAKEPROJECT

LocationTheWernerLakeproperty is locatedinnorth-westernOntario,withintheKenoraMiningDistrictapproximately85kmnorth-northwestofKenora,Ontarioandapproximately170kmeast-northeastofWinnipeg,Manitoba.TheWerner Lakemine site area is centered on latitude 50° 28’ 11” N and longitude 94° 56’ 50”W. TheNationalTopographicSystem(NTS)mapreferencetothesheetcoveringtheareaistheUmfrevilleLakesheet,NTS52L/07(1:50,000scale).Figure1-1showsthelocationoftheProperty.ThePropertyismosteasilyaccessedfromManitoba,followingManitobaprovincialroads313and315fromLacduBonnettotheOntarioborder.EastoftheOntario/Manitobaborderaccesscontinuesalonganunmaintaineddirt road (the “Werner Lake Road”) for approximately 20 km to the old mine site. The Werner Lake RoadcontinuestotheoldGordonLakeMine,another3.5kmtotheeast.

Figure1-1:PropertyLocationMap

CurrentlytheWernerLakepropertyconsistsof102PatentedMiningclaimsconveyingmineralrights,6PatentedMiningclaimsconveyingmineralandsurfacerightsand2Leaseholds.ThisgroupofPatentedMiningclaimsandLeaseholdscoversapproximately1,746.4ha(Figure1-2).Inaddition,GEMCalsocontrolsLicensesofOccupationtotalingapproximately356.5hathatoverlapthePatentedMiningclaimsandLeaseholds(Figure1-3).AsummaryofthePatentedMiningclaims,LeaseholdsandLicencesofOccupationcanbefoundinTable1-1.Detailsofthepatented Mining claims can be found in Table 1-2, details of the Leaseholds in Table 1-3, and Licences ofOccupationinTable1-4.

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WERNERLAKEPROJECTcontinuedFigure1-2:WernerLakeMinesiteAreaPropertyOutline

Table1-1:SummaryofMineralsRightsfortheWernerLakeProperty-ReferAppendixA.

MineralRights No.ofClaims/Leases Area(ha) CommentsPatentedClaims 102 1,631.30 MiningRightsOnly

PatentedClaims 6 86.5 Surface&MiningRights

Leaseholds 2 28.57 MiningRightsOnly

Total 110 1,746.37

LicensesofOccupation 10 356.567 MiningRightsOnly

Total 356.567

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WERNERLAKEPROJECTcontinuedFigure1-3:WernerLakeProject–LicenseofOccupation

HistoryWernerLakehasalongandextensiveexplorationanddevelopmenthistoryandcanbestbegroupedintothreephases:

1. Earlydiscovery,exploration,andproduction�2. DevelopmentandoperationfromCanmineResourcesCorporation�3. ExplorationactivitiesfromPugetVenturesLtd.�

ThefollowingsectionhasreliedheavilyapreviousreportbyHughes,T.N.J2010andHarper,G.2011whichwassummarisedandeditedbyP.SarjeantandAGPMiningConsultantsInc(AGP)EarlyDiscovery,Exploration,andProduction(1920–1944)The earliest claim staking in the Werner Lake area was undertaken in 1920-1921 when copper- cobaltmineralisationwas discovered by prospectorMr. Carleson. Subsequently, a series of test pits, trenches, and ashallow shaft was sunk near the currentWerner Lake Cobalt deposit by Kenora Prospectors andMiners Ltd.Governmentrecordsindicateapproximately70tonsofcopper-cobaltorewasshippedtoNorwood,Ohio.ThepropertywasthenleasedtoN.B.Daviswhooperatedthemineuntil itclosedin1944.Duringthisperiod,atwo-compartmentshaftwassunk,a42ftaditwascompletedanda25tonperdaymillwasinstalled.Atotalof123,386lbsofcobaltwasshippedbetween1940and1944.Totalmineproductionwasreportedat143,386lbsofcobaltgradingapproximately2.2%cobaltand0.75%copper(Hughes2010a).Furtherprospecting in theareawas rewardedbyadditionaldiscoveries including sulphidemineraloccurrencescarrying nickel and copper near the southeast shores of Gordon Lake which subsequently, was developed tobecometheGordonLakeNickelDeposit.DuringthisperiodNorandaMinesLtdtrenchedanddrilledtheGordonLakepropertybutdroppedtheground.

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WERNERLAKEPROJECTcontinuedTheclaimswerethenacquiredbyRexoraMiningCorporationandoptionedtoFalconbridgeNickelMinesLtd.in1948.ThebeltwasfurtherexploredbymanycompaniesincludingDomeExploration(Canada)Ltd,InternationalNickel Company of Canada Ltd, Frederick Mining and Development Ltd., Rexora Mining Corporation Ltd. andTorburnGoldMinesLtd.In 1952, Quebec Nickel Corporation Ltd. acquired all the ground and began underground exploration anddevelopment (Rose, E.R., 1956). In 1955, Quebec Nickel Corporation Ltd merged with Eastern Smelting andMining Corporation to form EasternMining and Smelting Corporation Ltd. In 1958, the namewas changed toNickel Mining and Smelting Corporation Ltd. The company was reorganized twice more to finally formConsolidatedCanadianFaradayLtdin1967.In1962,theGordonLakeMinebeganproductionandproduced1,370,285tonsgrading0.92%nickeland0.47%copper,0.004ouncespertonplatinumand0.023ouncespertonpalladium.Themineshutdowninlate1969.Themineralresourceestimatesandreservesdescribedinthissectionarehistoricalinnature.Theyareprovidedhereforhistoricalcontextonly.TheQPisnottreatingthesehistoricalestimatesascurrentmineralresourcesorreserves and has not undertaken any independent investigation of the resource estimates; therefore, theresourceestimatesstatedaboveshouldnotbereliedupon.Numerous other companies undertook exploration activities throughout the Werner Lake Belt includinggeophysicalsurveys,mapping,sampling,diamonddrilling,andinsomecasesundergrounddevelopmentwork.CanmineResourcesCorporation(1994–2001)TheWernerLakeCobaltDepositlayrelativelydormantfromthetimeofthemineclosurein1944untilCanmineconductedregionalexplorationworkatWerner,Rex,andBuglakesbeginningin1994.Despitethelackofworkatthe Werner Lake Cobalt deposit, significant work continued throughout the Werner Lake Belt until the late1980’s.Canmine’sinitialeffortsincludeda1,923line-kilometre(line-km)helicopter-bornegeophysicalsurveyconductedby Aerodat Inc. Thiswork led tomore detailed ground geophysical surveyingwhich ultimately resulted in thediscoveryoftheBigZoneDepositandtheEasternShallowsDeposit.Between1995and1997,Canminecompletedover75,000ft(roughly22,860m)ofdiamonddrillingattheWernerLakeproject.DrillingofpreviousidentifiedzonesofmineralisationresultedinthedelineationofLenses1and2oftheWernerLakeMinesiteDepositandthediscoveryofLens3oftheWernerLakeMinesiteDepositandtheWestCobaltDeposit.Lenses 1 and2have sincebeen combinedandarenow labeledOldMineUpper Zone and Lens 3 isOldMineLowerZone.In1998,QuantecConsultingInc.(Quantec)wascontractedtoundertakeatimedomainelectromagnetic(TEM)3-D borehole. Quantec tested two drill holes and located three deep conductors, the sources of which are notknown.All drill core was logged in detail in the field with lithological, structural, mineralogical, and alterationobservationsrecordedonstandardizedloggingsheets.Drillholecollarlocationsweresurveyedandacidtests

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WERNERLAKEPROJECTcontinuedwere taken at regular intervals down-hole. Drill hole Azimuth deviations were not recorded. Drill holes dipsrangedfrom-45oto-75o.DrillcorediameterwasBQ.Harper (2011)has concisely summarised theworkofCanmineand the following sectionshavebeenextractedfromhisreportandwereslightlyeditedbyAGP.Canmine assayedmore than2,000drill core rock samples for cobalt, copper, gold, and arsenic from theWestCobaltandWernerLakeOldMineDeposit.Additionally,atotalof646drillcoresampleswereassayedforcobalt,copper,gold,andarsenicfromtheEasternShallowsDepositdrillprogram.Standardproceduresforhandlingcoreinthefieldwereusedbythediamonddrillcontractorsandthefieldgeologists.Canminereportedthedrillcorerecoverywastypicallyhigh,withvirtually100%recovery.Theinfrequentintervalsoflostcorewerenotedinthedrilllogs.By theendof1997,a totalof847 ft (approximately258m)ofunderground ramping,drifting, and raisingwascompletedintotheWestCobaltDepositand10,000tonnesofmineralizedmaterialwasextracted.In 1997, Canmine contracted LakefieldResearch Limited (Lakefield) to conductmetallurgical bench testmillingandchemicalanalysisontheWernerLakemineralizedmaterial.A25-tonnebulksamplewasextractedfromtheWerner Lake Minesite area and shipped to Lakefield for the preparation of two concentrate samples forhydrometallurgical work. The metallurgical and hydrometallurgical test work proved positive and it wasrecommended that Canmine proceed to pre-feasibility work. Concurrent with this work, Canmine contractedWesternMineralsTechnologyPtyLtdfromAustraliatobeginpreliminarydesignworkonaproprietary“Activox”processplanttotreatthepyriticcobaltconcentrates.Resultsofthisworkindicated76%cobaltrecoveryaftertwohoursof“Activox”leaching.Thereportsuggestedthatwithfurtherworkandmodification,itwouldbepossibletoachieveinexcessof90%extractionofthecobaltfromtheconcentrate(Johnson1997andEvansetal.1998).Withhigh-temperaturepressureleaching,Lakefieldextractedgreaterthan99%ofthecobaltwhichwasthentreatedtoprecipitatecobaltcarbonateassaying35%cobaltwithlittlearsenic(0.03%)andotherdeleteriouselements.In1999,aPre-Feasibility Studywas contracted toStoner. The study concluded that full feasibilityworkon theprojectwaswarranted.Canminebeganfeasibilitywork,butranoutoffundspriortothestudiesbeingcompleted.InApril2003,Canmineofficiallyannouncedreceivershipproceedings(NorthernMiner,April7-13,2003).PugetVenturesLtd.(2009-2010)In September2008,Puget acquireda large landpackage including theWerner LakeDeposit andWestWernerLakeDepositandotherclaimsandpatentswithintheWernerLakeBeltprimarilythroughabusinessarrangementwith Commerce Capital. A number of unpatented mining claims were acquired through property deals withBentonResourcesandothers,butthoseclaimswereallowedtolapseinrecentyears.OtherunpatentedmineralclaimsacquiredthroughthearrangementwithCommerceCapitalwerealsoallowedtolapse.From December 2009 to May 2010 Puget initiated a 7,565.3m drill program with a primary goal to increaseknown mineralisation and produce a revised resource estimate for the Werner Lake and West Werner Lakecobalt-copper-golddeposits. Thedrill programcomprisedNQdiameterholes surveyedat 50m intervals downhole, typically with readings taken at the bottom of holes and just below the casing. Collars were located byreferencingthehistoricdrillholesandthehistoricminegrid.Alldrillcorewas loggedbycompanypersonnelattheMustangMinerals core facilitywestof thePropertyorat thewarehouse facilityat site.Drill corewashalfsawn,onehalfstoredatthePugetwarehouseontheWernerLakepropertyandtheotherhalfsentforassayat

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WERNERLAKEPROJECTcontinuedAccurassay Laboratories Ltd in Thunder Bay Ontario. A total of 1,862 samples, including blanks and standardreferencematerial,wereanalysedforthirtyelementsincluding,ICP,Au,Cu-Ni-Co,andPGMelements.In July 2011, Puget, through a reverse takeover, became Global Cobalt Corporation.�No further work wasconductedonthePropertybyGlobalCobaltCorporationsince2010.GlobalEnergyMetalsCorporation(2016–present)In January2016,GEMCacquired theWerner LakeProject aspart of a spin-out transaction fromGlobal CobaltCorporation.As of thedateof this report,GEMChas not completed anyon-site physicalwork on theproject.WorkeffortstothispointhavefocusedonreviewinghistoricdataprimarilyfromtheCanmineandPugetactivitiesandcompletingthemostrecentNI43-101TechnicalReport.�HistoricProductionReports of the historical production from theWerner Lakemine are limited. Carlson (1957), reported that in1932, some 70 tons of cobalt ore contained approximately 20,000 lbs Co. Carlson also reported that duringoperationbetween1940and1944,atotalof123,386lbsCowasshippedfromtheminesite.Thetotaltonnagewasnotreported.Carlsonalsonotedthatupuntil1942,theorewashand-cobbedwhenamillwaserectedonsite.Thismethodofselectingoremakesanaccurateaccountofactualtonnagesextractedandmilleddifficulttodetermine.In1995-1996,Canminereported intheir1998Annual InformationCircular (AIF),3,382tonnesweretakenfromthe formerWerner Lake mine site (OldMine). In 1997, Canmine stated the underground exploration was toincludeexcavatingupto20,000tonnesofpotentialorefortesting(AIF,1998).Canminereportedthatbytheendof 1997, approximately 10,000 tonnes of cobalt bearing material had been excavated from the West Cobaltdepositvia846ft (~257.9m)of rampdevelopmentanddrifting (AIF,1998).Canminedoesnotreferenceotherwork completed atWerner Lake, however, onemine plan fromNovember 1988 shows a planned, or possiblydeveloped,secondlevelandastope.Table1-5summarisestheavailableinformationofhistoricalproductionattheWernerLakeDeposit.

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• WERNERLAKEPROJECTTable1-5:SummaryofHistoricProductionattheWernerLakeDeposit

Location Year Tonsandtonnesproduced

Colbsproduced Comments

OldMine 1932 70tons(Carlson,1957)

20,000(Carlson,1957)

70shorttons=64.6metrictonnesShaftsunktoabout35ft(10.7m)(Carlson,1957)

OldMine 1940-44 n/a 123,386(Carlson,1957)

Orewashand-cobbeduntil1942.(Carlson,1957)Shaftis100ft.(30.5m).(Thomson,1950)2compartmentshaftdevelopedanddeepenedanda42ft.(12.8m)aditwascompleted.(ODM,1945;Parker,1998)

OldMine 1940-44 2,955tonnes(AIF,1988)

n/a referencetotonnesinAIF1998isofunknownorigin;noreferencecited

Removedfrom“formerCobaltminesite”OldMine

1995-96 3,382tonnes(AIF,1998)(Harper,2011)

n/a referencetotonnesinAIF1998isofunknownorigin;noreferencecitedtonnesarereiteratedinHarper(2011);noreferencecited

WestCobalt 1997 ~10,000tonnes n/a UGDevelopmentrampdevelopmentanddriftingCanminestatedtheyexpectedundergroundexplorationtoincludeupto20,000tonnesofpotentialoretobetested(AIF,1998).

HistoricResourceEstimatesMarqueecautionsthereaderthatthehistoricalresourcespresentedinthissectionareforhistoricalcontextonly.Marquee is not treating the historical estimate as current mineral resources or mineral reserves since keyassumptions,parameters,andmethodsusedtopreparethehistoricalestimatesare largelyunknown.AQPhasnot done sufficientwork to classify thehistorical estimate as amineral resourceormineral reserve andmoreimportantly,themineralresourcesestimatepresentedinthissectionhavenowbeensupersededbythecurrentmineralresourcesestimate.Anumberof resourceestimateswerecompletedbyCanmineResourceduringtheperiod1996-1998which ledthe company to carry out detailed engineering studies and resulted in the development of an undergroundexplorationprogramthatfocusedontheWernerLakeWestdeposit.Themineralisedzonesarewelldefinedandsupportedbydiamonddrillingandundergrounddevelopmentbut the resourceestimateswerenot to industrystandardsatthetimethusMarqueeischoosingtonotreleasethisinformation.Theunderlyingtechnicaldataisdeemedreliableandformsthebasisformorerecentresourceestimates.

InApril2002,SNCreportedaresourceestimatefortheWernerLakeproject(Wahl2002)ata0.1%,0.15%,and0.2%Cocut-off.The0.15%Cocut-offisasfollow:�

• Measuredresourcestotal147,700tonnesof0.32%cobalt,0.26%Copperand0.007Oz/tgold�• Indicatedresourcestotal31,500tonnesof0.23%cobalt,0.28%Copperand0.006Oz/tgold�• Inferredresourcestotal100tonnesof0.29%cobalt,0.14%Copperand0.003Oz/tgold

Theresourceswereestimatedusinggeostatisticalmethods (Inversedistancesquared)withinasuitewireframeoutliningthemineralisation.ThemethodologyiswelldescribedintheSNCreportdated2002andauthoredby

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• WERNERLAKEPROJECTG.Wahl, independent consulting geologist under sub-contract to SNC, however it is not clear if themined-outareas were removed from the estimate. This report was never published by Canmine as they went intobankruptcyasthereportwasbeingcompleted.ThehistoricestimatebySNC2002hasnotbeenreportedinaccordancetoJORCCode2012reportingstandardsandacompetentpersonhasnotdonesufficientwork toclassify theMineralResourceorReserveasacurrentJORCCode2012MineralReserveorResource. Marqueehasnot independentlyvalidatedthehistoric resourceestimateandcautionsreadersthatthisinformationshouldnotberelieduponandisonlypresentingthematerialtogiveafullhistoryoftheproject.Marqueehasnotindependentlyvalidatedtheformerowner’sestimatesandthereforeisnottoberegardedasreporting,adoptingorendorsingthoseestimates.PropertyAreaGeologyTheProjectareaisunderlainbyacomplexsequenceofeast-weststriking,steeplydippingsequencescomprisedof metasedimentary gneiss, granitic gneiss, mafic to ultramafic rocks, alteration rocks, and massive Co-Cu-Aumineralisationplusgranitoidintrusiverocks(Figure1-4).

Figure1-4:SimplifiedGeologyoftheWernerLakeMineAreas(GEMC2017–ModifiedfromParker1998)

DrillingTable1-6:SummaryofDrillHolesinDatabase,WernerLakeDeposit

DrillProgram NumberofDrillHoles Length(m)

1995-1997 219 21,312.85

2001 13 3,759.76

2009-2010 22 7,565

TOTALS: 266 32,702.91

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WERNERLAKEPROJECTcontinuedCanmineDrilling(1995–2001)Between1995and1997,Canminecompletedatotalof27,984mofBQsizediamonddrilling(217drillholes).ThedrillingwascarriedoutbyWynneDrillingbasedinBissett,Manitoba.Manyofthedrillholeswerecompletedon12.5mand25mspacingatbothWestCobaltandOldMineZones.Drillholeswerespottedontheexplorationgrid(Wahl,2002).Figure1-5showsthecollarlocationswhichincludetheCanmine1995-1998drilling.Canminecollectedcorerecoverydataonthreeholes (Juan118,199and120).Theaveragecorerecovery fromtheseholeswasreportedly98.17%.Puget(2009–2010)FromDecember2009toMay2010Pugetcompleted33,NQsizeddiamonddrillholes fora totalof7,565mofcoreattheWernerLakeandWestWernerLakedeposits.Theobjectiveofthedrillprogramwastobetterdefineandconfirmknownmineralized zones,expand those zones ifpossible,discovernewmineralized zones,and toprovideadditionalgeological informationtocompleteaNI43-101compliantmineral resourceestimate for theWernerLakeandWestWernerLakeCo-Cu-Audeposits

Figure1-5:DrillholesLocationMap

MineralResourcesEstimateIntroductionThis section discloses the mineral resources for the Werner Lake Cobalt Project, prepared and disclosed inaccordancewiththeCIMStandardsandDefinitionsforMineralResourcesandMineralReserves(2014).TheQPresponsibleforallresourceestimatesisMr.PaulDaigle,P.Geo.,AssociateSeniorGeologistforAGP.Theeffectivedate of this mineral resource is August 18, 2017. The foreign estimate for resources by AGP 2017 are notreportedinaccordancewithJORCCode2014asacompetentpersonhasnotdonesufficientworktoclassifytheresourceassuch.MarqueehoweverbelievesthedataandworkbyAGP2017aretimelyandmaterialduetotheindustrystandardspracticescarriedoutbyAGPinproducingthereport. TheAGP2017resourceclassificationsmeet Canadian Institute of Mining (”CIM”) reporting standards and were reported in accordance to the CIMMineralResourcesdefinitions referred to in theCanadianNational Instrument43-101 (NI43-101)StandardsofDisclosureformineralProperties.MarqueebelievestheforeignestimatetobetimelyandrelevantandliststheparticularsofthestudyinJORCCodeTable1appendedhereto.

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WERNERLAKEPROJECTcontinuedThe resource estimate has been prepared using interpreted mineralized veins (domains). A cut-off grade of0.25%Cowasselectedforreportingthemineralresourcesbasedonacobaltpriceof$14.90andmetalrecoveryof85%.AGPconsidersa0.25%Cocut-offgradetobereasonableforthisdeposit.Theminingmethodpresumedforthisdepositisanundergroundscenario,thereforeaconstrainingshellwasnotappliedtomineralresources.Table1-7presentsthemineralresourcesfortheWernerLakedeposit.

Table1-7:MineralResourceSummaryfortheWernerLakeDepositata0.25%Cocut-off

Classification CoCut-off(%)

Tonnage('000t) Co(%) Cu(%) ContainedCo

('000lbs)

Indicated 0.25 57.9 0.51 0.25 653

Indicated 0.25 6.3 0.48 0.14 67

Notes:BlockmodelwasestimatedbyIDcubedinterpolationmethodAveragedensityofmineralizedrockiscalculatedbasedon%Co+%CurelationMinedoutareasareexcludedfromtheMineralResourcesTonnageandaveragegradenumbersarerounded;summationerrorsmayoccur

Cut-offGradeSensitivityTable1-8below shows thedeposit sensitivity to a rangeof%Co cut-off grades for allmineralized veins in theWernerLakeDeposit.

Table1-8:IndicatedMineralResourcesfortheWernerLakeDeposit

CoCut-off(%)

Tonnage('000lbs) Co(%) Cu(%) As(%) Au(%) ContainedCo

('000lbs)0.35 29.1 0.72 0.24 0.41 0.26 461

0.3 45.0 0.58 0.24 0.32 0.22 574

0.25 57.9 0.51 0.25 0.27 0.22 653

0.20 79.4 0.43 0.25 0.21 0.21 759Note:TonnageandaveragegradenumbersareroundedMined-outareasareexcludedfromtheMineralResources

AdjacentPropertiesHistorically,theWernerLakeBelthasseensignificantexplorationanddevelopmentworkovertheyearsfromtheinitial discovery of copper, nickel, cobalt, and PGM’s. It can be constructive to research adjacent projects asgeologyandmineralisationmaybeindicativeofthatofthesubjectproperty.Itshouldbenoted,thatnoneofthefollowingpropertiesformpartoftheGEMCholdings.In reading the text below,Marquee cautions the reader that AGP has not been able to confirm the historicalestimates stated below can be relied on and the QPs have not done sufficient work to classify the historicalestimateascurrentmineralresourcesorreserves.

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WERNERLAKEPROJECTcontinuedAGP is not treating the historical estimate as currentmineral resources ormineral reserves. Key assumptions,parameters, and methods used to prepare the historical estimates are not known. The QPs have not donesufficientworktoclassifythehistoricalestimateasamineralresourceormineralreserve.Additionaldrillingandtesting is required to determine a current classification as a mineral resource or mineral reserve. AGP is nottreatingthehistoricalinformationasacurrentmineralresourceormineralreserveandthereaderiscautionedtonotrelyuponthisdata.AGPwouldalso like toaddthat theproduction figures inadjacentpropertiesarenot indicativeof thepossiblefutureproductionattheWernerLakeprojectsincethedepositsarenotgeologicallycomparable.GordonLakeMineThe Gordon Lake Mine property is completely surrounded by theWerner Lake Property (Figure 1-6). Nickel-coppermineralisationinultramaficrockswasfirstdiscoveredin1942andwasexploredforanumberofyearsbyvarious groups. In 1954, the Quebec Nickel Corporation Ltd acquired the project and began undergrounddevelopment of the deposit.Over the following eight years, the companywas reorganized a number of timesunderthenameConsolidatedCanadianFaradayLtd.TheGordonLakeMinecommencedproductionin1962andoverthelifeofthemineproduced1,370,285tonsoforeaveraging0.92%Ni,0.47%Co,0.004ouncespertonPtand0.023ouncespertonPd.Themineshutdownin1969,thoughthemillcontinuedtoprocessoreuntil1972whenalloperationsceased.Twotypesofsulphidemineralisationweremined:

• disseminatedcopper-nickelsulphidesinultramaficbodies�• brecciasulphidesin“amphibolite”(Scoates1972)�

Thesitewasreactivated inthe1970’swhenMakwaNickelChromeMines(Falconbridgesubsidiary)utilisedthemilltoprocessnickel-copperorefromtheirDumbartonandMakwadepositsfurtherwestwithintheWernerLakeBelt,justinsidetheManitobaborder.

Figure1-6:AdjacentPropertieswithinorneartheWernerLakeGeologicalBelt

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WERNERLAKEPROJECTcontinuedMakwaDepositTheMakwadepositinManitoba(Figure1-6),nowunderownershipofMustangMineralsCorporation(nowcalledthe Makwa Nickel Property), was mined by Falconbridge in the mid- 1970’s. Mustang completed additionaldiamonddrillingandoutlineda largeropenpitdeposit. Thedeposit is locatedwithin serpentenizedultramaficrockswhichgradeupwards intogabbro inaverticallydipping limbofadifferentiatedsill.According toapressreleasedatedApril82014,Mustangreportedthefollowingresourceestimate(Table1-9)updatedbyRPAInc.:

Table1-9:MineralResourcesfortheMakwaDepositatanNSRCut-offValueofC$20.64/t(RPA,2014)

Classification Tonnage(‘000t) Ni(%) Cu(%) Pt(gpt) Pd(gpt) Po(%)

Indicated 7.2 0.61 0.13 0.1 0.36 0.01

Indicated 0.7 0.27 0.08 0.05 0.14 0.02NorpaxDepositNearer to theWerner LakeProperty, thereareanumberof smaller showings thathave seenvarious levelsofexploration and/or development work. The most significant of these is the Norpax Deposit which is locatedimmediatelywestof thewestendof theProperty (Figure1-6).Norpaxwasdiscovered in1953andtheprojectsaw extensive diamond drilling and underground exploration and development. In 1958, a four hundred foot,three-compartmentverticalshaftwascompleted.Drifting intomineralisationwascarriedoutonthe250ftand375 ft levels.According toCanadianMinesHandbook (1963),NorpaxNickelMines reported1,010,000 tonsofprobableresourcegrading1.2%Niand0.5%Cu.

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WERNERLAKEEAST/WESTPROJECT

TheProject TheWernerLakeproperty is locatedinnorth-westernOntario,withintheKenoraMiningDistrictapproximately85kmnorth-northwestofKenora,Ontarioandapproximately170kmeast-northeastofWinnipeg,ManitobaThisprojectabutstheWernerLakeGEMCproject.Theprojectisapproximately18.4sqKmconsistingofthe7.8sqKmWestblockandthe10.6sqKmEastBlockTheacquisitionoftheWernerLakeEast/WestProjectallowsMarqueetounifytheWernerLakeareaandfurtherexploreforhighgradeCobaltoccurrences.

Figure2-1:AdjionspastproducingCu-Ni-PGE+CobaltMine

Note:ThehistoricreserveestimatefortheNorpaxDepositisdrawnfromdatapublishedintheCanadianMineshandbook (1963). Marquee is not aware of the assumptions underlying this estimate and, therefore, cannotcommentontheirreliabilityorrelevance.ThisestimatedoesnotmeetJORCreportingstandards.Marqueeisnotawareofanyupdatestotheestimate,andisnotawareofanyfurtherworkundertakenonthedepositsincetheestimatewasreported.

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SKELETONLAKEPROJECT

LocationTheSkeletonLakepropertyislocatedinNorthernOntario,Canada,approximately470kmnorthwestofOttawa,55kmnorthofthetownofCobalt.

Figure3-1:SkeletonLake(MulliganArea)LocationMap

RegionalGeologyRegional geology consists of Nipissing Diabase covering most of the occurrence. Outcrops of conglomerate,greywackeandargillitesoftheCobaltGroupoutcropNorthandSouthoftheoccurrence.Thegeneralgeologyofthe Mulligan cobalt occurrence and surrounding area is shown. The area of the map showing the Au-Ag-CosoutheastofSkeletonLakeistheMulliganCobaltoccurrence.

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SKELETONLAKEPROJECTcontinuedFigure3-2:GeologicalSetting

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SKELETONLAKEPROJECTcontinuedTable3-1:StakedClaims

ClaimNumber

ClaimIDNumber

No.of16HaUnitsinClaim

StakingDescription StakingDate

1 4284407 6 MulliganTwp. 04/15/172 4284408 2 BaylyTwp. 04/23/173 4284409 3 MulliganTwp. 04/23/174 4284410 2 BaylyTwp. 04/14/175 4284411 6 BaylyTwp. 04/14/176 4284412 8 BaylyTwp. 04/14/177 4284414 2 MulliganTwp. 04/15/178 4284415 8 MulliganTwp. 04/22/179 4284416 8 MulliganTwp. 04/27/1710 4284417 9 MulliganTwp. 04/25/1711 4284418 8 PenseTwp. 04/26/1712 4284419 8 PenseTwp. 04/26/1713 4284420 12 PenseTwp. 04/27/17

MineralisationPreviousfieldworkontheMulligancobaltoccurrenceislimited.Forfurtherinformationpleasecontact:CharlesThomasManagingDirectorMarqueeResourcesLimitedinfo@marqueeresources.com.auThe information in this announcement that relates to the historical exploration results on the Werner LakeProjectisbasedoninformationcompiledandfairlyrepresentedbyMr.PaulSarjeant,P.Geo.,whoisamemberingood standingof theAssociationofProfessionalGeoscientistsofOntario. Mr. Sarjeant, P.Geo., is a consultinggeologist forDoublewoodConsulting Inc.withover30yearsofexperience. Mr.Sarjeant,P.Geo.,hassufficientexperience relevant to the style ofmineralisation and typeof deposit under consideration, and to the activitywhichhasbeenundertaken, toqualify as a Competent Person as defined in the2012Editionof the JointOreReservesCommittee (JORC)AustralasianCode forReportingof exploration results,MineralResources andOreReserves. Mr.Sarjeant,P.Geo.,provideshisconsent to the inclusion in this reportof thematterbasedonthisinformationintheformandcontext inwhichitappears.M.SarjeantconsidersthattheinformationincludedinthismarketannouncementrelatingtotheWernerLakeProjectisanaccuraterepresentationoftheavailabledataandstudies for theWernerLakeProject. Noadditionalworkhasbeencompletedon theWernerLakeProjectsincethereleaseoftheAGPResourceEstimate(September2017).

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ReferencesAnonymous(1963).CanadianMinesHandbook.NorpaxNickelMinesLtd.,pp.215Carlson,H.D. (1957);Sixty-SixthAnnualReportof theOntarioDepartmentofMinesbeingVolumeLXVI,Part4,1957;GeologyoftheWernerLake-RexLakeArea,pp.1-30.Evans, H., Johnson, G., 1998; Preliminary Design for an Activox® Process Plant for treating Canmine CobaltConcentrates,WesternMineralsTechnologyPty.Ltd.,internalreporttoCanmineResources.Ferreira,W.S.,Ferreira,K.,Xiong,J.,Murphy,K.,CobaltSkarnProjectandPotentialforLong-TermCobaltMiningOperationsinCanada,CanmineInternalReport,1997.Harper,G., 2011,Werner LakeMineralBeltProperties,KenoraMiningDivision,Ontario,Report forPuget, July2008.HarperG.,2011;WernerLakeMineralBeltProperties,KenoraMiningDivision,Ontario,Report forPuget,DateMarch22,2011andrevisedJune23,2011.Hughes,T.N.J.,2010a;ReportontheDrillingProgramme,December2009–May2010,WernerLakeProject,NWOntario.PugetInc.Hughes, T.N.J.; 2010(b); Report of Prospecting Programme, July – September 2010,Werner Lake Project, NWOntarioforPugetInc.Johnson,G.,1997;ReporttoCanmineResources,PreliminaryActivox®TestingofCobaltConcentrate.ODM,1945.Fifty-FourthAnnualReportoftheOntarioDepartmentofMinesbeingVol.LIV,PartII,1945;ARV54;p.115(NormanB.Davis).Parker, J.R. 1998. Geology of nickel-copper-chromite deposits and cobalt-copper deposits atWerner–Rex–BugLakes,EnglishRiverSubprovince,NorthwesternOntario;OntarioGeologicalSurvey,OpenFileReport5975,178p.RPA,2014.TechnicalReportonthePreliminaryEconomicAssessmentoftheCombinedMayvill-MakwaProject,Manitoba,Canada.ForMustangMineralsCorp.281pages.April30,2014.Rose, E.R.; 1956, Gordon Lake Nickel Deposit, Ontario, Canada Department of Mines and Technical Surveys,GeologicalSurveyofCanada.Scoates, J.R.F. (1972); Ultramafic rocks and associated copper-nickel sulphide ores, Gordon Lake, Ontario.UnpublishedPh.D.thesis,UniversityofManitoba,Winnipeg,206p.Wahl,G.H. (SNC),2002.WernerLakeProject,CanmineResourcesCorporation,Geology&ResourceEstimation.SNC-LavalinEngineersandConstructors.246pages.15April,2002

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JORCCode,2012Edition-Table1

Section1SamplingTechniquesandData(Criteriainthissectionapplytoallsucceedingsections.)

Criteria JORCCodeexplanation Commentary

Samplingtechniques

• Natureandqualityofsampling(egcutchannels,randomchips,orspecific specialised industry standard measurement toolsappropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc). Theseexamples should not be taken as limiting the broadmeaning ofsampling.

• Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurementtoolsorsystemsused.

• Aspects of thedeterminationofmineralisation that areMaterialtothePublicReport.

• Incaseswhere‘industrystandard’workhasbeendonethiswouldbe relatively simple (eg ‘reverse circulation drilling was used toobtain1msamplesfromwhich3kgwaspulverisedtoproducea30gchargeforfireassay’). Inothercasesmoreexplanationmayberequired,suchaswherethereiscoarsegoldthathasinherentsamplingproblems.Unusualcommoditiesormineralisationtypes(eg submarine nodules) may warrant disclosure of detailedinformation.

• Mineralised zones at the Werner Lake project were sampled usingdiamonddrilltechniquesandholeshadanominalspacingof12.5to50metres along strike and 25 to 150 m down dip within the historicresourcearea.

• CanmineResourcessubmittedmorethat2,000drillcorerocksamplesforcobalt,copper,goldandarsenic toTSLLabs foranalysis. TSLLabswas a certified laboratory (ISO Standard 17025 at the time the workwasperformed).Individualcheckassaysorre-assaysweredoneonanasneededbasistoverifyresultsbetweenvisualestimatesmadeduringdrillcoreloggingandassayresultsfromsamplesplits.

• Puget Ventures submitted a total of 1,862 for analysis to AccurassayLaboratories in Thunder Bay Ontario. Standards and blanks wereinsertedevery20samplesforqualitycontrolandduplicateswerealsoanalysedforqualitycontrol.SampleswereanalysedforthirtyelementICP analysis plus Au, Cu-, Cu-Co and platinum group elements. Drillholeswerespacedfrom25mto+100mdependingonthetargetofthedrillholeduringthePugetprogram.

• AGP reviewedandvettedall analytical relateddata andapproved forinclusionintheNI43-101ResourceReporttitledGlobalEnergyMetalsCorp., NI 43-101 Resource Estimate for Werner Lake Cobalt Project,AGPMiningConsultants,September6,2017.

Drilling • Drilltype(egcore,reversecirculation,open-holehammer,rotaryairblast,auger,Bangka,sonic,etc)anddetails(egcorediameter,

• CanmineResourcesdrilled a total of 217diamonddrill holes totalling27,895metres of BQ sized core at theWerner Lake project between

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techniques tripleorstandardtube,depthofdiamondtails, face-samplingbitorothertype,whethercoreisorientedandifso,bywhatmethod,etc).

1995 and 1997. They utilised a hexagonal core barrel to minimisedeviations in the hole. As most holes were shallow, multi-shotdownhole surveysweredeemedunwarranted. Acid testswere takenat regular intervals downhole tomeasure changes indip;whichweresmall and predictable. Drill logs indicate near 100% recovery fromthesedrillholes.

• Puget Ventures Inc. completed 33 holes, 7,565 metres diamond drillprogramfromDecember2009toMay2010usingNQdiameterholes.Holes were surveyed at 50m intervals downhole using a single shotreflex surveying tool. Readings were taken at the hole collar andbottomofthedrillholes.Holedepthsrangedfrom69mto499m.

• AGP reviewed and vetted all drill and analytical related data andapproved for inclusion in theNI43-101ResourceReport titledGlobalEnergy Metals Corp., NI 43-101 Resource Estimate for Werner LakeCobaltProject,AGPMiningConsultants,September6,2017.

Drillsamplerecovery

• Method of recording and assessing core and chip samplerecoveriesandresultsassessed.

• Measures taken to maximise sample recovery and ensurerepresentativenatureofthesamples.

• Whetherarelationshipexistsbetweensamplerecoveryandgradeandwhether samplebiasmayhaveoccurreddue topreferentialloss/gainoffine/coarsematerial.

• All drill corewas recovered, placed intowooden core tray boxes andthen logged by geologists at a core facility with all necessaryequipment.

• Recoverywasgenerally inexcessof95%andtypicallywas in the99%rangeduetothenatureofthehostrockandmineralisedmaterial.NogeotechnicaldatawasrecordedduringtheCanminedrillprogramme.

• Norelationshipwasqualitativelynotedbetweensample recoveryandgrade. The consistency of the mineralised intervals suggests samplebiasduetomaterialgainorlossinnotanissue.

Logging • Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to support appropriateMineral Resource estimation, mining studies and metallurgicalstudies.

• Whether logging isqualitativeorquantitative innature.Core (orcostean,channel,etc)photography.

• All drill holes were logged in detail by the operator at the time ofdrillingincludinglithology,alteration,structure,mineralisationandanyothercharacteristicsdeemed importantbygeological staff. Detailsofgeology are recorded in detail on paper logs and assay results havebeencorrelatedtothedownholegeologyindigitalformattofacilitatedigitalprocessingandstorage.

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• The total length and percentage of the relevant intersectionslogged.

• Coreboxeswere labelledwith aluminium tags topermanently recordtheholenumber,coreboxnumberanddownholedepth.

• Core from the Puget Ventures drill program is currently stored in awarehouseneartheprojectsite.

Sub-samplingtechniquesandsamplepreparation

• Ifcore,whethercutorsawnandwhetherquarter,halforallcoretaken.

• If non-core, whether riffled, tube sampled, rotary split, etc andwhethersampledwetordry.

• For all sample types, the nature, quality and appropriateness ofthesamplepreparationtechnique.

• Qualitycontrolproceduresadoptedforallsub-samplingstagestomaximiserepresentivityofsamples.

• Measures taken toensure that the sampling is representativeofthe in situ material collected, including for instance results forfieldduplicate/second-halfsampling.

• Whether sample sizes are appropriate to the grain size of thematerialbeingsampled.

• Alldiamonddrillsampleswerebasedongeological interpretationandatthediscretionofthelogginggeologist.Canminesamplelengthvariedfrom0.04to3.73mwith2,615sampleswithalengthof1.0m.

• PugetVenturessamplesgenerallywerenolessthanaminimumof0.25mwithinmineralisedzonestoamaximumof2.5mlength.

• Canminedrill corewas split usingeither amechanical core splitterordiamondsaw.Corewashalvedwithonesectionbeingbagged,labelledandshiptoalocalqualifiedlaboratoryforanalysis.

• Core processed by Puget Ventures was half sawn using an electricaldiamond blade core cutter, bagged, labelled and shipped to theAccurassayLaboratories.

• Sample sizes are considered appropriate and correctly represent themineralisation based on the style of mineralisation, width andconsistencyof intersections, the samplingmethodologyand theassayrangesforthevariouselementsofinterest.

Qualityofassaydataandlaboratorytests

• The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique isconsideredpartialortotal.

• For geophysical tools, spectrometers, handheldXRF instruments,etc, the parameters used in determining the analysis includinginstrument make and model, reading times, calibrations factorsappliedandtheirderivation,etc.

• Nature of quality control procedures adopted (eg standards,blanks, duplicates, external laboratory checks) and whetheracceptable levelsof accuracy (ie lackofbias) andprecisionhavebeenestablished.

• TSL conducted all sample preparation for Canmine. Samplepreparationmethods variedover the three-yearexplorationprogram.Sample preparation consisted of crushing the entire sample to 70%passing -10 Mesh during August 1995 to October 1997 drillprogrammes. From1995to1996,TSLriffledandsplita250gsamplethatwaspulverisedto90%passing100Mesh.From1997onward,TSLriffled and split approximately 250 g which was pulverised to 90%passing150Mesh.Cobalt,copper,andarsenicsampleproceduresusedby TSL included a 0.5 g sample being digestedwith 20ml HCl/HNO3acidsandthenre-dissolvedwith20%3:1HCl/HNO3acid.Ifassayswereover 5,000 ppm, then 0.5 g were digesting in 100 ml flask and the

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solutionwas then analysed byAtomic Absorption Spectrophotometry(AAS).�Two fireassayprocedureswereused toassay forgold.Theseconsisted of a fire assay/atomic absorption analysis and a fireassay/gravimetricanalysisforassaysgreaterthan1,000ppbAu.�

• Puget Ventures assay work was also performed by a registeredlaboratoryand is considered inaccordancewith industry standardsatthetimetheworkwascompleted.

• Samplepreparationconsistedofcrushingthesamplestoaminimumof85%passing10mesh,a500-gsplitwaspulverizedto90%passing200mesh (procedure APL1). Platinum metals (Pt and Pd) and gold wereanalyzed using procedure code APLPG1, which is a fire assay withatomicabsorptionspectrophotometry(AAS)finishon30gsub-sample.Sampleswere also analyzed for a suite of 30 elements using amulti-aciddigestion(HNO3,HCl,HF,HClO4)withinductivelycoupledplasmaatomicemissionspectroscopy(ICP-OES)finish,procedurecodeALMA1.

Verificationofsamplingandassaying

• Theverificationofsignificant intersectionsbyeither independentoralternativecompanypersonnel.

• Theuseoftwinnedholes.• Documentation of primary data, data entry procedures, data

verification,datastorage(physicalandelectronic)protocols.• Discussanyadjustmenttoassaydata.

• Due to the lack ofQA/QC samples during the Canmine drill program,SNC proposed a series of drill core pulps and rejects were to beselected from mineralized intervals with the deposit to confirm thevalidityofthereportedassayvaluesforcobalt,copper,andarsenic.

• AtALSChemex,thesampleswerecrushedto65%passing10mesh.A250 g sub-sample was pulverized to 90% passing 100 mesh using achromesteel ringmill.Goldassaywasperformedusinga30-galiquotand analysed by fire assay and atomic absorption finish (FA-AA).Copper, cobalt, and arsenic was tested using a 4-acid digestion (HF-HNO3-HCLO4-HCL)andAAS.

• TheresultsofthestudysuggestthattheaquaregiaassaymethodfromTSL under reported the by an average of 5% throughout the variousgraderanges.Asimilarbiasincopperisalsoreported.

• DuringthePugetVenturesdrillprogramAccurassayalsoinsertedtheirownblanksintothesamplestringasasecondarycheck.

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• DuringthePugetVentures2009-2010drillprogram,drillholesWL-10-18 (sample 834721) andWL-10-26 (sample 835202) blanks indicatedanomalous copperandnickelwerepresent. Back checking suggestedthatStandardCDN-ME-10wasinsertedinsteadoftheprescribedblank.

• AGP reviewedandvettedall analytical relateddata andapproved forinclusionintheNI43-101ResourceReporttitledGlobalEnergyMetalsCorp., NI 43-101 Resource Estimate for Werner Lake Cobalt Project,AGPMiningConsultants,September6,2017.

Locationofdatapoints

• Accuracy and quality of surveys used to locate drill holes (collarand down-hole surveys), trenches, mine workings and otherlocationsusedinMineralResourceestimation.

• Specificationofthegridsystemused.• Qualityandadequacyoftopographiccontrol.

• Canmine diamond drill holes were surveyed using total stations andcontrolpointsarewellmarkedthroughouttheprojectareawithrebarimplanted in outcrops featuring a welded steel plate with stationnumber.

• A local mine grid was established by Canmine with a point of originbeing 10,000 E and 7,700 N with corresponds to 357,533.3 mE and5,592,526.5mNintheUTMNAD83coordinatesystem.

• Puget Ventures drill holes were chained from existing referencemarkerssuchashistoricalholesorcontrolstations.

Dataspacinganddistribution

• DataspacingforreportingofExplorationResults.• Whetherthedataspacinganddistributionissufficienttoestablish

thedegreeofgeologicalandgradecontinuityappropriatefortheMineral Resource and Ore Reserve estimation procedure(s) andclassificationsapplied.

• Whethersamplecompositinghasbeenapplied.

• Within thehistoric resourceareasatWernerLakediamonddrillholesandhadanominalspacingof12.5to50mmetresalongstrikeand25to50mdowndip.

• Drilling by Puget Ventures was more widely spaced, nominally 50 to100 m along strike with larger gaps down dip when drilling forprojectedtargetsatdepth.

• AGP(2017)determinedthedataspacingissufficienttoallowthegradeintersectionstobemodelledintocoherentwireframesforeachdefineddomains.

• Based on the work by AGP (2017), mineralised domains havedemonstrated sufficient continuity in both geological and grade tosupport the definition of Indicated and Inferred Mineral ResourcesundertheCIMdefinitions.

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• AGP (2017)Wireframesmeasuring less than1.5mhorizontally at thedrill hole intercepts were expanded to approach 1.5 m minimumminingwidth.SeventeendistinctwireframesweremodelledbyAGPtocomplete the NI 43-101 Resource Report for Global Energy MetalsCorp.

Orientationofdatainrelationtogeologicalstructure

• Whethertheorientationofsamplingachievesunbiasedsamplingof possible structures and the extent to which this is known,consideringthedeposittype.

• If the relationship between the drilling orientation and theorientation of key mineralised structures is considered to haveintroducedasamplingbias,thisshouldbeassessedandreportedifmaterial.

• Drillholesbyalloperatorsweredrilledbetween-45oto-75oandwerelocated so as to cut the sub-vertical mineralised zones as close toperpendicularaspossiblebasedonknowledgeofthezonesatthetimeofdrilling.Duetothenatureofthehostrocksandmineralisedzones,there is no sample bias recorded in the sampling procedure orsubsequentanalysis.

Samplesecurity

• Themeasurestakentoensuresamplesecurity. • No information regarding security of samples from the Canmine drillcampaignsisavailable.

• PugetVenturessampleswerelogged,sampled,baggedandshippedbycompany personnel under the supervision of the project geologist.Samples were transported but the company to the assay laboratoryusingacommercial,bondedshipmentcompany.

• AGP(2017)hasreviewedtheanalyticalresultsandhavedeemedthemappropriateforuseintheNI43-101ResourceReport.

Auditsorreviews

• The results of any audits or reviews of sampling techniques anddata.

• SNCLavelincarriedoutextensivedatabasevalidationin2002aspartofthe resource calculations completed for Canmine Resources that areviewed as historical and have been superseded by the AGP (2017)ResourceReport.

• AGPMiningConsultants Inc.completedadditionaldatabasevalidationwork during their efforts to produce an updated Ni 43-101 MineralResourceEstimatethatmeetsCanadianCIMreportingstandards.

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Section2ReportingofExplorationResults(Criterialistedintheprecedingsectionalsoapplytothissection.)


Mineraltenementandlandtenurestatus

• Type, referencename/number, locationandownership includingagreements or material issues with third parties such as jointventures, partnerships, overriding royalties, native title interests,historical sites, wilderness or national park and environmentalsettings.

• Thesecurityofthetenureheldatthetimeofreportingalongwithanyknown impediments toobtaininga licence tooperate in thearea.

• GlobalEnergyMetalscontrols100%interestintheWernerLakeprojectwhichconsistsof102patentedminingclaimswithminingrightsonly,6patented claims with surface and mining rights, 2 Leaseholds withminingrightsthatcoverapproximately1,746hectares. Therearealso10LicensesofOccupationthatcoverapproximately356hectaresoverwater.

• There are no annualwork requirements and the ground is subject toapproximately$8,500intaxesdueeachyear.

• Pursuant to an agreement between Puget Venures and CommerceCapital, Commerce Capital was granted a 2% NSR on the subjectproperty. Puget (now Global Energy Metals) retains the right topurchase50%oftheNSRforone-timepaymentof$2million.

• The Ministry on Mines completed several inspections andrecommended actions to meet the requirements of the MineRehabilitationCodeofOntario.Theseactionsarecurrentlyinprocess.

• Therearenootherimpedimentstoongoingworkattheproject.

Explorationdonebyotherparties

• Acknowledgmentandappraisalofexplorationbyotherparties. • The project area has seen considerable exploration since its initialdiscoveryinthe1920’s.Thesitewasoriginallyminedinthe1940’sanda total of 143,386 lbs of cobalt were reportedly shipped for theMinesiteDeposit.

• Canmine Resources carried out the most extensiveexploration/developmenteffortsontheprojectcompleting1,923line-kilometres of helicopter-borne geophysical surveying and extensivegroundgeophysics.Between1995and1997Canminecompletedover75,000ftofdiamonddrillingdelineatingtheMinesiteDepositandtheWest Cobalt Deposit. Several companies completed resource

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estimations for Canmine and work resulted in undergrounddevelopment of approximately 847 ft of ramping, drifting and raisingintotheWestCobaltDeposit.A25-tonnebulksamplewasextractedin1997andsenttoLakefieldResearchforbenchtestmillingandchemicalanalysis. Test work proved positive and it was recommended thatCanmine move to pre-feasibility work. Pre-feasibility work wascontracted to Stoner Consulting. SNC Lavelin completed anunpublished resource estimate in 2001 prior to Canmine declaringbankruptcy.

• Puget Ventures completed an additional 7,565 metres of diamonddrillingin2009-2010inadditiontosurfacemappingandotherwork.

• Global EnergyMetals completed aNI 43-101 resource report in 2017that meets CIM reporting standards for resource estimates. Allpreviousworkhasbeen included inthisworkanddocumentsorgivesreferencetoallpreviousworkcompletedattheproject.

Geology • Deposittype,geologicalsettingandstyleofmineralisation. • TheWernerLakeGeologicBeltispartoftheArcheanEnglishRiverSubprovince of the Superior Geological Province in Ontario. The area isunderlain by metasedimentary migmatites intruded by syn- to late-tectonicfelsicintrusiverocks.

• OntheWernerLakeproperty,high-gradecobaltmineralisationoccursin stacked lenses that occupy tensional areas intruded by gabbroicpegmatites to produce skarnoid assemblages. These tensional areasoccuras sigmoidal folds in largerdrag foldsand in tensional fracturesontheeastsideofmajorblockfaults.Theyoccurinrareswarmsoveradistance of approximately 10 kilometres, extending from the EasternShallowsCobaltDepositon theeast sideofGordonLake to theWestCobalt Deposit 500 metres west of the Werner Lake Minesite.Individual pegmatite dykelets are tens of centimetres wide andunusually up to five metres wide. They are discontinuous, rootless,pinch-and-swell features, with individual boudins approximately 25

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metres in length. Chalcopyrite, pyrite, pyrrhotite and cobaltite arehostedbybiotite-amphibole-garnetgneiss.

DrillholeInformation

• Asummaryofallinformationmaterialtotheunderstandingoftheexploration results including a tabulation of the followinginformationforallMaterialdrillholes:o eastingandnorthingofthedrillholecollaro elevationorRL (Reduced Level – elevation above sea level in

metres)ofthedrillholecollaro dipandazimuthoftheholeo downholelengthandinterceptiondeptho holelength.

• Iftheexclusionofthisinformationisjustifiedonthebasisthattheinformation is not Material and this exclusion does not detractfrom the understanding of the report, the Competent Personshouldclearlyexplainwhythisisthecase.

• SignificantworkhasbeencompletedontheWernerLakeprojectoverthepast90years. Thereader isdirectedtotheGlobalEnergyMetalspressreleasedatedSeptember6,2017forasummaryand link tothelatest NI 43-101 Resource Report. This report compilesmuch of thepreviousworkandusesCIMreportingstandardstofilethefirstNI43-101 report for the project. There is significant data available in thepublicdomainforinterestedreaders.

• NI 43-101 Resource Estimate forWerner lake Cobalt Project,WernerLake, Ontario Canada. AGP Mining Consultants Inc. September 6,2017.

• Table of Selected Drill Intercepts from Puget Venture 2009-2010 drillprogram-seeAppendixA.

Dataaggregationmethods

• In reportingExplorationResults,weightingaveraging techniques,maximumand/orminimumgrade truncations (egcuttingofhighgrades) and cut-off grades are usually Material and should bestated.

• Where aggregate intercepts incorporate short lengths of highgrade results and longer lengths of low grade results, theprocedureused for suchaggregation shouldbe statedandsometypicalexamplesofsuchaggregationsshouldbeshownindetail.

• The assumptions used for any reporting of metal equivalentvaluesshouldbeclearlystated.

• AGP 2017 analysed capping effects in the NI 43-101 Resource reportandsubmittedthefollowing:

• Acappinganalysisintheformofdecileanalysis,degradation/disintegrationanalysis,histogram,andlog-probabilityplotswasusedtoassessthesamplepopulationswithintheOldMineandWestCobaltmineralizedzonesforhighgradeoutliersforallmetalgrades.Table14-5showsthecappinglevelsforallmetalsbyzone.�

•

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Relationshipbetweenmineralisationwidthsandinterceptlengths

• These relationshipsareparticularly important in the reportingofExplorationResults.

• Ifthegeometryofthemineralisationwithrespecttothedrillholeangleisknown,itsnatureshouldbereported.

• If it is not known and only the down hole lengths are reported,there should be a clear statement to this effect (eg ‘down holelength,truewidthnotknown’).

• Explorationresultsarenotbeingreportedinthisrelease.• Historical diamond drilling was oriented in such a manner as to

intersectthemineralisedhorizonascloseaspossibletoperpendicularalong strike. Mineralisation dips sub-vertically and so drill interceptshave been adjusted to true widths when completing the resourceestimate.Aminimumminingwidthof1.5mhorizontalhasbeentakenforallresourceblocks.

Diagrams • Appropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discovery beingreportedTheseshould include,butnotbe limitedtoaplanviewofdrillholecollarlocationsandappropriatesectionalviews.

• TypicaldrillsectionasreportedintheAGP2017ResourceReport–seeAppendixA.

• WireframemodeldiagramfortheAGP2017ResourceReportisincludedinAppendixA.

Balancedreporting

• Where comprehensive reporting of all Exploration Results is notpracticable,representativereportingofbothlowandhighgradesand/orwidths shouldbepracticed to avoidmisleading reportingofExplorationResults.

• Explorationresultsarenotbeingreportedinthisrelease.

Othersubstantiveexplorationdata

• Other exploration data, if meaningful and material, should bereported including (but not limited to): geological observations;geophysical survey results; geochemical survey results; bulksamples – size and method of treatment; metallurgical testresults; bulk density, groundwater, geotechnical and rockcharacteristics;potentialdeleteriousorcontaminatingsubstances.

• SignificantworkhasbeencompletedontheWernerLakeprojectoverthepast90years. Thereader isdirectedtotheGlobalEnergyMetalspressreleasedatedSeptember6,2017forasummaryand link tothelatest NI 43-101 Resource Report. This report compilesmuch of thepreviousworkandusesCIMreportingstandardstofilethefirstNI43-101 report for the project. There is significant data available in thepublicdomainforinterestedreaders.

• NI 43-101 Resource Estimate forWerner lake Cobalt Project,WernerLake,OntarioCanada.AGPMiningConsultantsInc.September6,2017.

• Results from the Lakefield Research tests were used as a basis ofpotentialrecoveryofmetalsfortheResourceReportpublishedbyAGP(2017

• Metallurgical test work on a flotation concentrate sample from theWerner Lake deposit was carried out in 1997 at Lakefield Research(now SGS Canada Inc.) in Lakefield Ontario. The sample as received,

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graded7.21%Co,3.19%Cu,2.01%As,27.5%Fe,and38.6%S;andwassubjected to a program of leach testing to determine if upgrading oftheconcentratecouldbeachieved.

• Highpressure leachtests, inacidandalkalinemedia,usinga2Lbatchautoclave were carried out. The optimal results of greater than 99%cobaltandcopperextractionwereachievedunderacidicconditionsat223°Cwith100psioxygenoverpressure,andtwohoursresidencetime.Atthesametime,90%oftheironand85%ofthearsenicremainedintheresidue.

• Neutralization and precipitation tests were carried on the pregnantsolution from the autoclave tests. A straightforward flowsheet wasdevelopedconsistingof limeprecipitationtoremove ironandarsenic,followedbysolventextractiontorecovercopperasaseparatestream,andthensodiumcarbonateprecipitationtoproduceacobaltcarbonateproduct. Stage recovery of cobalt was calculated at 99.8% to aprecipitate grading 34.8 %Co, 0.01 %Cu, and 0.006 %As. Both thepressure leaching and lime precipitation waste residues were testedusing the USEPA TCLP procedure and were determined to be non-hazardous.

Furtherwork • Thenatureandscaleofplannedfurtherwork(egtestsforlateralextensionsordepthextensionsorlarge-scalestep-outdrilling).

• Diagrams clearly highlighting the areas of possible extensions,including the main geological interpretations and future drillingareas,providedthisinformationisnotcommerciallysensitive.

• Additional diamond drilling work has been recommended and adefinitive plan of action will be accessed after the completion of acomprehensivecompilationprocesshasbeencompleted.

• AGP has also recommended additional metallurgical work andundergroundsamplingifthehistoricworkingscanbeopened.

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Section3EstimationandReportingofMineralResources(Criterialistedinsection1,andwhererelevantinsection2,alsoapplytothissection.)


Databaseintegrity

• Measures taken to ensure that data has not been corrupted by,for example, transcription or keying errors, between its initialcollectionanditsuseforMineralResourceestimationpurposes.

• Datavalidationproceduresused.

• AGPMiningConsultantsundertookdetailedeffortstocombinehistoricdatabasesandhavecrosscheckedtotheextentpossibleforduplicates,errors and omissions prior to reporting the resource estimate for theWernerLakeProject.

• Datawascompiledfromdataanalysesandassaycertificatesandthoseassay results without assay certificates have been documented. Thedatabaseconsistsof266diamonddrillholesforatotalof32,702mofcore. Of this dataset, 254 drill holes were used in the resourceestimate.

Sitevisits • CommentonanysitevisitsundertakenbytheCompetentPersonandtheoutcomeofthosevisits.

• Ifnositevisitshavebeenundertakenindicatewhythisisthecase.

• AGP Mining Consultant Pierre Desautels, P. Geo. visited the site onApril20&21,2010accompaniedbyPugetVenturemanagementandgeological staff. Noworkhasbeen carriedout at the site since2010and sono additional site visitwas required to complete the resourceestimate.

Geologicalinterpretation

• Confidence in (or conversely, the uncertainty of) the geologicalinterpretationofthemineraldeposit.

• Natureofthedatausedandofanyassumptionsmade.• The effect, if any, of alternative interpretations on Mineral

Resourceestimation.• The use of geology in guiding and controlling Mineral Resource

estimation.• Thefactorsaffectingcontinuitybothofgradeandgeology.

• Geological interpretation of the mineralisation is through directobservation by geological logging of core and assay grade cutoff.ClassificationofresourcecategoriesmeetsCanadianInstituteofMining(CIM)StandardsDefinitions.

• Drillholesinformation,andanysurfacewhereavailablewasusedintheresourcemodeldevelopmentandresourceclassification.

• Geological is well constrained based on both geological observationand assay grade cutoff. Structural complexity of the mineralisationcouldleadtovaryinginterpretation.

Dimensions • The extent and variability of theMineral Resource expressed aslength (along strike or otherwise), plan width, and depth below

• Old Mine Site mineralisation is identified over a strike length ofapproximately200mandhasbeendrilledtoanapproximatemaximum

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surfacetotheupperandlowerlimitsoftheMineralResource. depthof400m.AtWestCobaltmineralisationhasbeendrilledoverastrike length of 800 m and various domains have been drilled toapproximately300mdepth.Zone

Estimationandmodellingtechniques

• The nature and appropriateness of the estimation technique(s)applied and key assumptions, including treatment of extremegradevalues,domaining,interpolationparametersandmaximumdistanceofextrapolationfromdatapoints.Ifacomputerassistedestimationmethodwaschosenincludeadescriptionofcomputersoftwareandparametersused.

• The availability of check estimates, previous estimates and/ormine production records and whether the Mineral Resourceestimatetakesappropriateaccountofsuchdata.

• Theassumptionsmaderegardingrecoveryofby-products.• Estimation of deleterious elements or other non-grade variables

of economic significance (eg sulphur for acid mine drainagecharacterisation).

• Inthecaseofblockmodelinterpolation,theblocksizeinrelationtotheaveragesamplespacingandthesearchemployed.

• Anyassumptionsbehindmodellingofselectiveminingunits.• Anyassumptionsaboutcorrelationbetweenvariables.• Description of how the geological interpretation was used to

controltheresourceestimates.• Discussionofbasisforusingornotusinggradecuttingorcapping.• The process of validation, the checking process used, the

comparison of model data to drill hole data, and use ofreconciliationdataifavailable.

• Blockgradesforallmetalswereinterpolatedfrompointcompositesbyinverse distance cubed (ID3). Ordinary Kriging (OK) and NearestNeighbour (NN) methods were also interpolated for validationpurposes.

• Wireframes were constructed targeting cobalt mineralisation grading0.05%orabovepreferablywithintheloggedWCBZcode(WestCobalt)andMINEZcode(OldMineZone).Atotalof17discretewireframesforthe interpreted mineralised veins were modelled. A total of 1.083assayslocatedinthewireframeswereusedforresourceestimation.

• Statisticalanalysisoftheassaydataresultedincappingofmetalsinallzones.OldMineSitecappingwas:Co6.76%,Cu1.1%,As5.6%andAu4.423.AtWestCobaltZonecappingwassetat:Co4.9%,Cu4.48%,As3.90%andAu4.937.

• Theblockmodelwas setupwithablock5x1x5high;no rotationwasapplied. Variables includedgrademodels forCo,Cu,As,andAu,rocktype,density,percent,andresourceclassmodels,aswellasdistancetonearestpoint,numberofpointsused in theestimate,numberofdrillholesusedintheestimate,andpassnumber.

• Thesearchellipsesforblockmodelinterpolationsusedthesamesearchforallmetals, forallpasses. Since theveinsvary slightly in strikeanddip directions, theOldMinedomains andWest CobaltWC1100weregrouped into sub-domains for interpolation purposes. The smallersatelliteveinsinWestCobaltwereinterpolatedbyRockType.

• Previousminingrecordsarenotsufficientlydetailedtoutilise,howevervolumes from both the 1940’s mining and the Canmine ramp anddevelopmentworkwasbackcalculatedandremovedfromtheresourcemodel togivea fair representationof theremainingresource. Blocks

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mineminedoutweretaggedasClass=9).Furtherworkisrequiredtodefinetheextentsofthemineoutmaterialandwhethertheassumedvolumeofmaterialcorrespondstoactuals.

Moisture • Whether the tonnages are estimated on a dry basis or withnatural moisture, and the method of determination of themoisturecontent.

• Nomoisturevalueswerereviewed.

Cut-offparameters

• The basis of the adopted cut-off grade(s) or quality parametersapplied.

• AcobaltpriceofUS$15.60/lbCowasusedforthecut-offcalculation.Cut-off calculations also included 85% metallurgical recoveries basedonSNC(2002)estimates.

• An in-situ cut-off grade of 0.25% Co has been applied for potentialmaterialamendabletoundergroundextraction.

• RefineryDeductionof1%andRefiningChargeofUS$0.50/ lbCowasassumed.

• Processing and G&A chargeswere US$13.50 andUS$ 8.00 per tonneprocessed.

Miningfactorsorassumptions

• Assumptionsmaderegardingpossibleminingmethods,minimumminingdimensionsandinternal(or,ifapplicable,external)miningdilution. It is always necessary as part of the process ofdetermining reasonable prospects for eventual economicextraction to consider potential mining methods, but theassumptions made regarding mining methods and parameterswhenestimatingMineralResourcesmaynotalwaysbe rigorous.Where this is the case, this should be reported with anexplanationofthebasisoftheminingassumptionsmade.

• NarrowstopeundergroundminingispresumedforWernerLakewithaminimumwidthof1.5mhorizontalassumed.Effectiveminingdilutionwassetat20%fortheresourcemodel.

• UndergroundminingoperatingcostsofUS$40/tonnewereassumed.

Metallurgicalfactorsorassumptions

• The basis for assumptions or predictions regardingmetallurgicalamenability. It is always necessary as part of the process ofdetermining reasonable prospects for eventual economicextraction to consider potential metallurgical methods, but theassumptions regarding metallurgical treatment processes andparameters made when reporting Mineral Resources may not

• Work by Lakefield Research in 1997 formed the basis of themetallurgicalassumptionsintheresourcemodel.TestsamplereceivedbyLakefieldgraded7,21%Co,3.19%Cu,2.01%As,27,5%Fead38.6%Sand was subjected to a program of leach testing to determine ifupgrading of the concentrate could be achieved. Optimal results ofgreaterthan99%CoandCuextractionwereachieved.

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alwaysberigorous.Wherethisisthecase,thisshouldbereportedwithanexplanationofthebasisofthemetallurgicalassumptionsmade.

• StagedrecoveryofCowascalculatedat99.8%toaprecipitategrading34.8%Coand0.01%Cuand0.006%As. Bothpressureleachandlimeprecipitationwaste residueswere tested andwere determined to benon-hazardous.

• Additional metallurgical work is recommended at the project to fullyunderstandanddevelopappropriateflowsheetandoptimization.

Environmen-talfactorsorassumptions

• Assumptionsmaderegardingpossiblewasteandprocess residuedisposal options. It is alwaysnecessary as part of theprocess ofdetermining reasonable prospects for eventual economicextractiontoconsiderthepotentialenvironmentalimpactsofthemining and processing operation. While at this stage thedeterminationofpotentialenvironmentalimpacts,particularlyforagreenfieldsproject,maynotalwaysbewelladvanced,thestatusof early consideration of these potential environmental impactsshould be reported. Where these aspects have not beenconsidered this should be reported with an explanation of theenvironmentalassumptionsmade.

• NoassumptionshavebeenmadebyAGPMiningConsultantsregardingpossiblewasteandprocessresiduedisposaloptions.

Bulkdensity • Whether assumed or determined. If assumed, the basis for theassumptions. If determined, the method used, whether wet ordry, the frequency of the measurements, the nature, size andrepresentativenessofthesamples.

• Thebulk density for bulkmaterialmust havebeenmeasuredbymethodsthatadequatelyaccountforvoidspaces(vugs,porosity,etc),moistureanddifferencesbetweenrockandalterationzoneswithinthedeposit.

• Discuss assumptions for bulk density estimates used in theevaluationprocessofthedifferentmaterials.

• Bulkdensitywasderivedfromasuiteof56coresamplescarriedoutbyALS Chemex using the pycnometer method on pulps. A calculatedspecific gravitywas determined based on Co% ad Cu%. Blockmodelspecificgravityaveraged3.05g/cm3andrangedfrom2.97g/cm3to3.12g/cm3.

Classification • The basis for the classification of the Mineral Resources intovaryingconfidencecategories.

• Whether appropriate account has been taken of all relevant

• Mineral Resources were classified in accordance with the CanadianInstitute of Mining (CIM) Standards and Definition for MineralResourcesandMineralReserves(2014)andhavebeenreportedunder

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factors (ie relative confidence in tonnage/grade estimations,reliability of input data, confidence in continuity of geology andmetalvalues,quality,quantityanddistributionofthedata).

• WhethertheresultappropriatelyreflectstheCompetentPerson’sviewofthedeposit.

theNationalInstrument(NI)43-101reportingguidelines.

Auditsorreviews

• The results of any audits or reviews of Mineral Resourceestimates.

• Internalauditshavebeencompletedwhichverifythetechnicalinputs,methodology, parameters and results of the estimate. Additionally,comparison with SNC historic resource modelling should positivecorrelations.

Discussionofrelativeaccuracy/confidence

• Where appropriate a statement of the relative accuracy andconfidence level in the Mineral Resource estimate using anapproach or procedure deemed appropriate by the CompetentPerson.Forexample,theapplicationofstatisticalorgeostatisticalprocedures to quantify the relative accuracy of the resourcewithin stated confidence limits, or, if such an approach is notdeemed appropriate, a qualitative discussion of the factors thatcouldaffecttherelativeaccuracyandconfidenceoftheestimate.

• Thestatementshouldspecifywhetheritrelatestoglobalorlocalestimates,and,iflocal,statetherelevanttonnages,whichshouldberelevanttotechnicalandeconomicevaluation.Documentationshouldincludeassumptionsmadeandtheproceduresused.

• These statements of relative accuracy and confidence of theestimate should be compared with production data, whereavailable.

• TheWernerLakeResourceestimatehavebeenreportedwithdegreeofconfidence commensurate with Indicated and Inferred MineralResources.

• Thedataqualityisgoodandthedrillholeshavedetailedlogsproducedby qualified geologists for all recent drilling. Recognised laboratorieshavebeenusedforallanalyses.�

• TheMineral Resource statement relates to global estimates of tonnesandgrade.�

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APPENDIXATable1-2:DetailsofthePatentedMiningClaimsontheWernerLakeProperty

ClaimNo. Rights Comments

PatentedClaims KRL9381 Surfaceandminingrights WernerLakeWestKRL9382 Surfaceandminingrights WernerLakeWestKRL9383 Surfaceandminingrights WernerLakeOldMinesiteKRL9385 Surfaceandminingrights WernerLakeOldMinesiteKRL9386 Surfaceandminingrights WernerLakeEastZoneKRL9387 Surfaceandminingrights WernerLakeEastZoneKRL19096 Miningrightsonly KRL19097 Miningrightsonly KRL19107 Miningrightsonly KRL19108 Miningrightsonly KRL19109 Miningrightsonly KRL19110 Miningrightsonly KRL19111 Miningrightsonly KRL19112 Miningrightsonly KRL29054 Miningrightsonly KRL29055 Miningrightsonly KRL29058 Miningrightsonly KRL29059 Miningrightsonly KRL29060 Miningrightsonly KRL29061 Miningrightsonly KRL29062 Miningrightsonly KRL29063 Miningrightsonly KRL29064 Miningrightsonly KRL29065 Miningrightsonly KRL29066 Miningrightsonly KRL29067 Miningrightsonly KRL29068 Miningrightsonly KRL29069 Miningrightsonly KRL29070 Miningrightsonly KRL29071 Miningrightsonly KRL29072 Miningrightsonly KRL29073 Miningrightsonly KRL29074 Miningrightsonly KRL29075 Miningrightsonly KRL29076 Miningrightsonly

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4242

KRL30055 Miningrightsonly CentralOccurrenceKRL30056 Miningrightsonly Rexora#3OccurrenceKRL30057 Miningrightsonly Rexora#4OccurrenceKRL30058 Miningrightsonly KRL31229 Miningrightsonly KRL31373 Miningrightsonly KRL31374 Miningrightsonly KRL31823 Miningrightsonly KRL31824 Miningrightsonly KRL31825 Miningrightsonly KRL31826 Miningrightsonly KRL31827 Miningrightsonly KRL31828 Miningrightsonly WernerLakeWestArmOccurrenceKRL33170 Miningrightsonly KRL33171 Miningrightsonly KRL33172 Miningrightsonly KRL33175 Miningrightsonly KRL33176 Miningrightsonly KRL33177 Miningrightsonly KRL33178 Miningrightsonly KRL33179 Miningrightsonly KRL33180 Miningrightsonly KRL33181 Miningrightsonly WernerLakeOldMinesiteKRL33182 Miningrightsonly KRL33183 Miningrightsonly KRL33184 Miningrightsonly KRL33185 Miningrightsonly KRL33186 Miningrightsonly KRL33187 Miningrightsonly KRL33188 Miningrightsonly KRL33189 Miningrightsonly KRL33190 Miningrightsonly KRL33191 Miningrightsonly KRL33192 Miningrightsonly KRL33193 Miningrightsonly KRL33194 Miningrightsonly KRL33195 Miningrightsonly KRL33196 Miningrightsonly KRL33198 Miningrightsonly KRL33199 Miningrightsonly KRL33200 Miningrightsonly KRL33201 Miningrightsonly

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4343

KRL33202 Miningrightsonly KRL33203 Miningrightsonly KRL33204 Miningrightsonly KRL33205 Miningrightsonly KRL33206 Miningrightsonly KRL33207 Miningrightsonly KRL33208 Miningrightsonly KRL33209 Miningrightsonly KRL33210 Miningrightsonly KRL33211 Miningrightsonly KRL33212 Miningrightsonly KRL33240 Miningrightsonly KRL33270 Miningrightsonly KRL33271 Miningrightsonly KRL33280 Miningrightsonly KRL33281 Miningrightsonly KRL33282 Miningrightsonly KRL33283 Miningrightsonly KRL33284 Miningrightsonly KRL33328 Miningrightsonly KRL33329 Miningrightsonly KRL33330 Miningrightsonly KRL33331 Miningrightsonly KRL33332 Miningrightsonly KRL33333 Miningrightsonly KRL33416 Miningrightsonly KRL33419 Miningrightsonly KRL33421 Miningrightsonly KRL33422 Miningrightsonly KRL33423 Miningrightsonly KRL36272 Miningrightsonly

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4444

APPENDIXAcontinuedTable1-3:DetailsoftheLeaseholdsontheWernerLakeProperty

Leaseholds Rights Comments Size(ha) ExpiryDate

KRL33173 Miningrightsonly 21-yearlease 17.203 March30,2030KRL33174 Miningrightsonly 21-yearlease 15.297 March30,2030 Total 32.5 32.5

Table1-4:DetailsoftheLicencesofOccupationontheWernerLakeProperty

LicenseNo. Comments Size(ha) Comments:IncludesKRL’s

LicensesofOccupation

10661 Miningrightsonly 7.365 KRL9387

12128 Miningrightsonly 63.054 PartMiningClaims:KRL19096,KRL29055,KRL19107,KRL19108,KRL19109,KRL19110,KRL19111

12246 Miningrightsonly 56.292 PartMiningClaims:KRL29059,KRL29060,KRL29061,KRL29062,KRL29063,KRL29064,KRL29065,KRL29066,KRL29067WernerLakeOldMinesite

12247 Miningrightsonly 68.076 PartMiningClaims:KRL29068,KRL29069,KRL29070,KRL29071,RKL29071,KRL29073,KRL29074,KRL29075,KRL29076

12501 Miningrightsonly 52.103 PartMiningClaims:KRL31823,KRL31825,KRL31828,KRL31829

13150 Miningrightsonly 60.974 PartMiningClaims:KRL33178,KRL33196,KRL33197,KRL33198,KRL33199,KRL33200,KRL33208,KRL33210,KRL33212

13151 Miningrightsonly 7.891 PartMiningClaims:KRL33174,KRL33175,KRL33176

13283 Miningrightsonly 25.617 PartMiningClaims:KRL36272,KRL36273,KRL33416,KRL33420,KRL33421

13284 Miningrightsonly 1.998 PartMiningClaims:KRL33328,KRL33333

13292 Miningrightsonly 13.197 PartMiningClaims:KRL33270,KRL33271,KRL33281,KRL33282,KRL33283,KRL33284

Total 356.567

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APPENDIXAcontinuedTable1-5:Tableofselecteddrillinterceptsfromthe2009-2010PugetVenturesdiamonddrillprogram.

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APPENDIXAcontinuedTable1-6:ScreenGrabfromAGP2017ResourceReportshowingmineralisedwireframes.

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APPENDIXAcontinuedTable1-7:ScreenGrabfromAGP2017ResourceReportshowingtypicalcross-sectionofthedeposit.

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APPENDIXBTable2-1:WernerLakeEast/WestScheduleofProjectClaims

ClaimNumber

ClaimIDNumber

Numberof16HaUnitsinClaim ClaimTownship ClaimArea Expiry

1 4281107 14 KenoraMiningDivision WernerLakeArea 11-Apr-192 4281108 8 KenoraMiningDivision WernerLakeArea 11-Apr-193 4281109 15 KenoraMiningDivision WernerLakeArea 11-Apr-194 4281484 15 KenoraMiningDivision WernerLakeArea 11-Apr-195 4281332 7 KenoraMiningDivision WernerLakeArea 11-Apr-196 4281331 8 KenoraMiningDivision WernerLakeArea 11-Apr-197 4281483 6 KenoraMiningDivision WernerLakeArea 11-Apr-198 4281333 8 KenoraMiningDivision ReynarLakeArea 11-Apr-199 4281110 8 KenoraMiningDivision ReynarLakeArea 11-Apr-1910 4280791 8 KenoraMiningDivision ReynarLakeArea 11-Apr-19

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APPENDIXCTable3-2:SkeletonLakeScheduleofProjectClaims

ClaimNumber

ClaimIDNumber

Numberof16HaUnitsinClaim ClaimTownship DateStaked

1 4284407 6 MulliganTwp. 15-Apr-172 4284408 2 BaylyTwp. 23-Apr-17

3 4284409 3 MulliganTwp. 23-Apr-174 4284410 2 BaylyTwp. 14-Apr-175 4284411 6 BaylyTwp. 14-Apr-176 4284412 8 BaylyTwp. 14-Apr-178 4284414 2 MulliganTwp. 15-Apr-179 4284415 8 MulliganTwp. 22-Apr-1710 4284416 8 MulliganTwp. 27-Apr-1711 4284417 9 MulliganTwp. 25-Apr-1712 4284418 8 PenseTwp. 26-Apr-1713 4284419 8 PenseTwp. 26-Apr-1714 4284420 12 PenseTwp. 27-Apr-1715 4284460 10 MulliganTwp. 03-May-1716 4284424 8 IngramTwp. 04-May-1717 4284421 6 MulliganTwp. 04-May-1718 4284446 2 MulliganTwp. 22-Jun-1719 4284422 4 PenseTwp. 04-May-1720 4284423 4 BaylyTwp. 04-May-17

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marquee to acquire high grade cobalt projects - … · 2017-12-07 · 1 5 december 2017 asx release...

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