Communicators

Hole ID

Depth (m)

Dip (°)

Azimuth (°)

Grid_ID

mEast

mNorth

mRL

NDDD049

60.36

-60

119

UTM WGS84 Zone 30 North

758,159

1,201,886

220

NDDD050

110.9

-60

122

UTM WGS84 Zone 30 North

758,110

1,201,915

220

NDDD051

50.4

-60

120

UTM WGS84 Zone 30 North

758,229

1,201,975

219

NDDD052

79.46

-60

122

UTM WGS84 Zone 30 North

758,141

1,201,905

220

NDDD053

24.39

-60

118

UTM WGS84 Zone 30 North

758,201

1,201,860

220

NDDD054

81.4

-60

121

UTM WGS84 Zone 30 North

758,187

1,202,003

220

NDDD055

29.24

-60

122

UTM WGS84 Zone 30 North

758,134

1,201,772

219

NDDD056

23.09

-60

119

UTM WGS84 Zone 30 North

758,156

1,201,802

219

NDDD057

72.23

-60

122

UTM WGS84 Zone 30 North

758,092

1,201,800

219

NDDD058

74.55

-60

119

UTM WGS84 Zone 30 North

758,180

1,201,959

219

NDDD059

88.96

-60

122

UTM WGS84 Zone 30 North

758,158

1,201,977

219

NDDD060

68.4

-60

116

UTM WGS84 Zone 30 North

758,171

1,201,935

219

NDDD061

90.08

-59

117

UTM WGS84 Zone 30 North

758,144

1,201,957

219

Hole_ID

mFrom

mTo

mWidth

Au g/t

NDDD049

43

47

4

1.8

NDDD050

98

100

2

1.7

NDDD051

32

34

2

3.9

NDDD052

18.6

20

1.4

1.2

NDDD052

65.3

70.5

5.2

0.9

NDDD054

2

6

4

2

NDDD054

38

39

1

0.5

NDDD054

57

58

1

1

NDDD054

72

75.3

3.3

3.1

NDDD056

7.25

12

4.75

3.2

NDDD057

56.5

57.5

1

1.8

NDDD058

48.2

64.5

16.3

1.6

NDDD058

58.2

64.5

6.3

2.8

NDDD059

69

71

2

0.6

NDDD059

75.7

84

8.3

11.3

NDDD060

60

65.2

5.2

4.5

NDDD061

76.7

83.7

7

1.7

Sampling techniques

Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

Reverse Circulation (RC) drill samples are collected by using downhole sampling hammers with nominal 127 to 140mm diameters. Samples are collected through a cyclone and immediately weighed to determine recoveries; the entire sample is then split by a three‐tier riffle splitter. Two samples (~2.5‐3.0 kg) are collected, one for the laboratory, the other a duplicate stored at the Bolgatanga sample shed.

Diamond sampling is by half‐core samples of HQ core size.

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Sampling is guided by Cardinal Resources protocols and Quality Control procedures as per industry standard.

To ensure representative sampling:

1m RC samples are collected from a cyclone, passing them through a 3‐tier riffle splitter, and taking duplicate samples every 20th sample.

1m length HQ core samples are taken through the various lithological units.

Aspects of the determination of mineralisation that are Material to the Public Report.

In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which  3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

The determination of mineralisation is based on observed alterations and lithological differences.

RC samples are crushed to ‐2mm, then a <1kg split sample is pulverised via LM2 Ring Pulveriser to a nominal 85% passing ‐75µm.

Diamond drill samples are crushed to ‐2mm, and a <1kg split sample is then pulverised via LM2 to a nominal 85% passing

‐75µm.

A 200g sub‐sample is taken from the pulverised material for analysis. A 50g charge weight is fused with litharge‐ based flux, cupelled and the prill dissolved in aqua regia. The gold tenor is then determined by AAS.

Drilling techniques

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

Reverse circulation drilling uses sampling hammer of nominal 127 to 140mm diameter.

Diamond core drilling is completed with core size of HQ with a standard tube. Triple tube is used in saprolite at the tops of the hole. Core is orientated using digital Reflex ACT II RD orientation tool.

Drill holes are inclined at ‐45⁰ to ‐60⁰ angles for optimal zone intersection. All drill collars are surveyed using Trimble R8 RTK GPS with downhole surveying every 30m using Reflex digital surveying instruments.

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Diamond core recovery is logged and captured into the database. The Method of recording chip and core sample recoveries was to enter the relevant data on a hand‐held Motion F5te Tablet PC using a set of standard templates supplied by Maxwell Geoservices, Perth (Maxwell).

Reverse circulation sampling is good. RC chips are logged, weighed and captured to the database. RC sample recoveries are assessed by weighing 1m samples from the cyclone on a scale in the field and comparing with the theoretical volume contained in a 1m x 140mm diameter hole to calculate an estimated percentage sample recovery.

Core recovered from each drill run is measured and compared with the drill run length drilled to calculate an estimated percentage core recovery. For core drilling overall recoveries are excellent, weighted average recovery greater than 98%.

Measures taken to maximise sample recovery and ensure representative nature of the samples.

Measures taken include the use of bigger HQ core size diamond drilling to maximise recovery, having a geologist onsite to examine core and core metres marked and orientated to check against the driller’s blocks and ensuring that all core loss is taken into account.

At the reverse circulation rig, sampling systems are routinely cleaned to minimise the opportunity for contamination and drilling methods are focused on sample quality. The measures taken to maximize RC sample recovery are through a cyclone and a 3‐tier riffle splitter. Each 1m sample is passed twice through the splitter before sampling to ensure maximum homogenisation of each sample and to collect an unbiased representative sample to be assayed.

The reverse circulation rigs have auxiliary compressors and boosters to help maintain dry samples. Where wet samples are encountered, the reverse circulation drilling is discontinued.

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

No relationship is seen to exist between sample recovery and grade, and no sample bias has occurred due to preferential loss/gain of any fine/coarse material due to the acceptable sample recoveries obtained by the drilling methods employed.

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

All drill holes are fully logged. The lithology, alteration and geotechnical characteristics of core are logged directly to a digital format on a Field Toughbook laptop logging system following procedures and using Cardinal geologic codes. Data is imported into Cardinal’s central database after validation in LogChief™.

All geological logging is to a level of detail to support future Mineral Resource estimation.

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.

Logging is both quantitative and qualitative.

Both RC chips in trays and HQ core are photographed both in dry and wet form.

The total length and percentage of the relevant intersections logged.

All drill holes are logged in full and to the total length of each drill hole.

Sub‐sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

Orientation of core is completed for all diamond holes and all are marked prior to sampling. Longitudinally cut half core samples are produced using a Core Saw with diamond impregnated blades. Samples are weighed and recorded.

If non‐core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.

RC samples are split using a three‐tier riffle splitter. The majority of RC samples are dry. On occasions that wet samples are encountered, they are dried prior to splitting with a riffle splitter.

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

RC drill samples are sorted and dried in an oven for 8 hours and weighed. They are then crushed to ‐2mm using a RSD Boyd crusher and a <1.0kg split is taken. The reject sample is retained in the original bag and stored. The split is pulverised in a LM2 to a nominal 85% passing 75µm and a 200g sub‐sample is used for analysis.

Drill core samples are sorted, dried at 105°C for 4 hours and weighed. Samples are crushed to a nominal ‐2mm and then split to <1.0kg. The reject sample is retained in the original bag and stored. The split is pulverised in a LM2 to a nominal 85% passing 75%µm and approximately 200g sub‐sample of the pulverised material is used for assay.

All preparation equipment is flushed with barren material prior to commencement of the job.

Quality control procedures adopted for all sub‐sampling stages to maximise representivity of samples.

Cardinal Resources has protocols that cover the sample preparation at the laboratories and the collection and assessment of data to ensure that accurate steps are used in producing representative samples for the analytical process. Key performance indices include:

• Contamination index of 95% (that is at least 95% of blanks pass); failures can only be attributed to probable minor laboratory contamination.

• Crushed Size index of 95% passing 2 mm (1:50 sample screened).

• Grind Size index of 85% passing 75 microns (minimum 1:50 sample screened).

• Check Samples returning at worst 20% precision at 90th percentile and bias of 5% or better.

Crusher and pulveriser are flushed with barren material at the start of every batch.

Measures taken to ensure that the sampling is representative of the in‐ situ material collected, including for instance results for field duplicate/second‐half sampling.

Measures taken to ensure that the RC sampling is representative of the in‐situ material collected are to take field duplicate samples every 20th sample. Approximately 3kg samples from the splitter are retained from each sample and stored at the company’s secured premises for possible re‐assay.

Measures taken to ensure that the core sampling is representative is to sample half core at 1m intervals irrespective of lithologies due to the similarities in grade of the main lithologies.

Results of field duplicates for RC samples and Check Samples for both RC and DD samples are all evaluated to ensure that the results of each assay batch are acceptable.

Whether sample sizes are appropriate to the grain size of the material being sampled.

Sample sizes are considered appropriate to the grain size.

Quality of Assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

All samples are analysed for gold by lead collection fire assay of a 50g charge with AAS finish; the assay charge is fused with the litharge‐based flux, cupelled and prill dissolved in aqua regia and gold tenor determined by flame AAS.

The analytical method is considered appropriate for the mineralisation style and is of industry standards. The quality of the Fire Assaying and laboratory procedures are considered to be entirely appropriate for the rock samples submitted.

For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

No hand‐held geophysical tools are used.

Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Sample preparation checks for pulp fineness are carried out by the laboratory as part of their internal procedures to ensure the grind size of 85% passing 75µm is being attained. Laboratories’ QAQC involves the use of internal lab standards using certified reference material (CRM) and blanks.

Cardinal’s QAQC protocol is considered industry standard with CRMs submitted on a regular basis with routine samples. The CRMs having a range of values and blanks are inserted in the ratio of 1:20. Duplicates are taken at the riffle splitter every 20th sample. No duplicate samples are taken from core samples.

Pulps are submitted to a secondary laboratory for checks on accuracy and precision of the primary laboratory. Coarse rejects are submitted back to the primary laboratory to assess the adequacy of the sub‐sampling process.

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

Significant intersections have been verified by alternative company personnel.

The use of twinned holes.

None of the drill holes in this report are twinned.

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Primary data are captured on field tough book laptops using LogChief™ Software. The software has validation routines and data is then imported onto a secure central database.

Discuss any adjustment to assay data.

The primary data is always kept and is never replaced by adjusted or interpreted data.

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down‐ hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

RC   drill   hole   collar   coordinates   are   surveyed   using handheld Garmin GPSmap 64s GPS within ±3m accuracy.

All drill collars are accurately surveyed using Trimble R8 RTK GPS system within ±10mm of accuracy (X, Y, Z).

Coordinates are based on three control stations established at Namdini by Sahara Mining Services.

Downhole survey on RC drill holes is completed by using Reflex Ez‐Shot survey instrument at regular 30 m intervals.

Specification of the grid system used.

Coordinate and azimuth are reported in UTM WGS84 Zone 30 North.

Quality and adequacy of topographic control.

Topographic control at Ndongo was supplied by Southern Geoscience Consultants (Perth) using satellite imagery.

Data spacing and distribution

Data spacing for reporting of exploration results.

The RC drilling was carried out on variably spaced fence lines (30m to 775m apart) with hole spacing of 50m along lines testing mineralisation to a vertical depth of approximately 200m and covering a strike length of 1.25km

The DD drilling was carried out on a spacing of 50m to 100m along fence lines testing mineralisation to a vertical depth of approximately 100m and to confirm the mineralisation intersected by the previous RC drilling.

Some step out diamond drilling at 12.5m spacing from the initial high-grade section lines was carried out to ensure that the mineralised structures plunges are understood before embarking on a wider spaced drill campaign along strike

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

Exploration is at the early stage, and as such drill data spacing and distribution are insufficient to establish geological and grade continuity that are appropriate for reporting Mineral Resources and Ore Reserves.

Orientation of data in relation to geological structure

Whether   sample   compositing   has been applied.

No sample compositing has been applied.

Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

Drillholes are orientated to achieve intersection angles as close to perpendicular to the mineralisation as practicable based on ground magnetic modelling data and previous RC drilling. Some sampling bias may occur.

Systematic geological mapping and structural information from the current diamond drilling are required to determine the true orientation of dips and structures of the mineralisation.

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

No significant orientation‐based sampling bias is known at this time.

Sample security

he measures taken to ensure sample security.

An independent Ghanaian security contractor is used to ensure sample security.

The drilling contractor is accountable for drill core and RC chip production at the drill site. Final delivery from the drill site to the laydown area within the core yard is managed by Cardinal. The core yard technicians, field technicians and Geologists ensure the core and chips are logged, prepared and stored under security until collected for delivery to the laboratory.

At the time of sample collection, a sign‐off process between Cardinal and the laboratory delivery truck driver ensures that samples and paperwork correspond. The samples are then transported to the laboratory where they are receipted against the dispatch documents. The assay laboratories are responsible for the samples from the time of collection from Cardinal until final results are returned and checked by Cardinal Geologists.

Sample pulps and coarse rejects are retained by the laboratories and are shipped back to Cardinal after final results are returned where they are stored under security.

Audits or reviews

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

Sampling techniques are of industry standards. Data is audited by Maxwell Geoservices (Perth), who have not made any other recommendations.

Mineral Tenement and Land Status

Type, name/reference number, location and ownership including agreements or material issues with third parties including joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The Ndongo Exploration Permit is on PL9/22, PL9/13 and PL9/19 licenses over an area of 295 sq. km located in the North‐East region of Ghana.

The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.

All tenements are current and in good standing.

Exploration Done by Other Parties

Acknowledgment   and   appraisal   of exploration by other parties.

Exploration in the region has been undertaken by a number of groups including:

• 1933 ‐ Colonial discovery of Gold at Nangodi.

• 1934 to 1942 ‐ Nangodi Mine production and other small development projects in the area (e.g. Zug, Pelungu, Money Palava).

• 1992 to 1994 ‐ BHP conducted regional exploration programmes including regional stream sediment and broad soil sampling to follow‐up on stream sediment anomalies. Project was abandoned when BHP withdrew from activity in West Africa.

• 1996 to 1997 – Africwest granted regional Reconnaissance License and undertook extensive soil sampling at Nangodi.

• 2006 ‐ Etruscan (JV with Red Back): Conducted data review and compilation, soil and rock sampling and RAB drilling. Identified blind mineralisation at Zupeliga.

• 2011 ‐ Abzu (JV with Red Back): Completed data compilation, RC/diamond drilling at Nangodi and Zoog.

• 2012 ‐ Abzu (JV with Red Back): Conducted trenching, rock sampling, ground geophysics survey (magnetic and EM) and geologic mapping.

Geology

Deposit type, geological setting and style of mineralisation

Drill samples were collected within sheared and folded rocks containing sulphides; mainly pyrite with minor arsenopyrite.

The geological setting is a Paleoproterozoic Greenstone Belt comprising Birimian metavolcanics, volcaniclastics and metasediments located along portion of the regional Bole‐Bolgatanga Shear Zone and a splay off this Shear Zone (the Nangodi Shear Zone).

The style of mineralisation is yet to be determined.

Drill hole information

A summary of all information material to the understanding of the exploration results including tabulation of the following information for all Material drill holes:

• Easting and northing of the drill hole collar

• Elevation or RL (Reduced Level

– elevation above sea level in meters) of the drill hole collar

• Dip and azimuth of the hole

• Down hole length and interception depth

• Hole length

A summary of drill hole information is provided in this document.

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

There has been no exclusion of information.

Data aggregation methods

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut‐off grades are usually Material and should be stated.

No weighting averaging techniques nor cutting of high grades have yet been undertaken.

Where aggregated intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Aggregated intercepts incorporating short lengths of high‐grade results within the lithological units are calculated to include no more than intervals of 3m below grades of <0.5 g/t Au when assay results are reported.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalents are used in the intersection calculation.

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of exploration results.

The   relationship   between   mineralisation   widths   and intercept length from RC drilling are not yet known.

If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

The geometry of the mineralisation with respect to the drill hole angles is not yet known.

If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).

The geometry of the mineralisation is unknown; only downhole length is reported (no true width of mineralisation is reported).

Diagrams

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

Appropriate locality map is included within the body of the accompanying document.

Balanced Reporting

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

The accompanying document is considered to represent a balanced report.

Other substantive exploration data

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

Other exploration data collected is not considered material to this document at this stage.

The interpretation of the geological observations shown in the cross section are subject to possible change as new information is gathered.

Further data collection will be reviewed and reported when considered material.

Further Work

The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large – scale step – out drilling).

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

Geological mapping, surface rock sampling, trenching, geochemical surveys, geophysical surveys and DD/RC drilling are continuing.

Once all results have been received, further RC/DD drilling will be considered along strike and at depth to further delineate this gold mineralised zone and to determine whether more sub‐parallel mineralised horizons can be located.