GLOSSARY DECLINE: An inclined tunnel that provides access for development of deeper levels and haulage of ore back to the surface in an underground mine. DIRECT SHIPPING ORE: Mineralized material that is so rich in valuable metals, and so lacking in otherwise deleterious substances, that it is amenable to smelting or refining without the need of any intermediate processing, separation of materials, or other beneficiation. FEASIBILITY STUDY: An engineering study designed to define the technical, economic and legal viability of a mining project with a high degree of reliability. FIXED-RATE GROSS ROYALTY: A royalty rate that stays constant for the life of the mine. GOLD DEPOSIT/MINERALIZATION: That part of a mineral deposit that is not included in the proven and probable ore reserve estimates until further drilling and metallurgical work is completed, and until other economic and technical feasibility factors based upon such work have been resolved. GRADE: The metal content of ore.With precious metals, grade is expressed as troy ounces per ton of ore or as grams per tonne of ore. A “troy” ounce is one-twelfth of a pound. GROSS SMELTER RETURNS ROYALTY: A defined percentage of the gross revenue from a resource extraction opera- tion, with no deduction for any costs paid by or charged to the operator. HEAP LEACH: A method of recovering gold or other precious metals from a heap of ore placed on an impervious pad, whereby a dilute leaching solution is allowed to percolate through the heap, dissolving the precious metal, which is subsequently captured and recovered. MINERALIZED MATERIAL: Rock formations containing minerals or metals of potential economic significance. NET PROFITS INTEREST ROYALTY: A passive interest in a resource extraction operation that is determined on the basis of a defined portion of the operation’s net profits. NET SMELTER RETURNS ROYALTY INTEREST: A defined percentage of the gross revenue from a resource extraction operation, less a proportionate share of incidental transportation, insurance and processing costs. NET VALUE ROYALTY: A passive interest in a resource extraction operation that is determined on the basis of deducting processing-related and associated capital costs, but not mining costs. OVERBURDEN ALLUVIUM: Loose soil, sand and gravel that lies above the bedrock. OXIDE MINERALIZATION: Mineralization subject to the weathering environment or comparable process, whereby the primary mineralogy is oxidized resulting in new mineral formation. In gold deposits, this process typically breaks down sulfide min- erals to iron oxides, and liberates gold, enabling simple processing. PEDIMENT GRAVELS: Coarse-grained alluvium deposited on sub-planar bedrock terrain sloping gently away from a moun- tain front. PROBABLE RESERVE: Ore reserves for which quantity and grade and/or quality are computed from information similar to that used for proven (measured) reserves, but the sites for inspection, sampling and measurement are farther apart or are other- wise less adequately spaced.The degree of assurance, although lower than that for proven (measured) reserves, is adequate to assume continuity between points of observation. PROVEN RESERVE: Ore reserves for which: (a) quantity is computed from dimensions revealed in outcrops, trenches, work- ings or drill holes, and grade is computed from the results of detailed sampling; and (b) the sites for inspection, sampling and mea- surement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well established. REFRACTORY: Gold mineralization requiring more sophisticated processing technology for extraction, such as roasting, or use of autoclaves. RESOURCE: A concentration of metals in such amount that economic extraction is currently or potentially feasible.The term “resource” is recognized by the Society of Mining, Metallurgy and Exploration’s “A Guide for Reporting Exploration Information, Resources and Reserves,” but is not recognized by the U.S. Securities and Exchange Commission. RESERVE: That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination. Reserves are categorized as proven or probable reserves (see separate definitions). SILVER EQUIVALENT: Gold or other precious metals expressed in equivalent ounces of silver using a conversion ratio dependent on the prevailing prices of the respective commodities. TON: A unit of weight equal to 2,000 pounds or 907.2 kilograms. TONNE: A unit of weight equal to 2,204.6 pounds or 1,000 kilograms. VALLEY-FILL SEDIMENT: Loose soil, sand and gravel that lies above the bedrock in a valley or basin environment between areas of higher elevation. 12