70 ° 50° 20 ° 30 ° 40 ° 3 COPIAPO NUEVA ESPERANZA Santiago La Serena Antofagasta Chañaral ARGENTINA BOLIVIA PERU www.kingsgate.com.au 28 Projects Report Nueva Esperanza Project Summary Chile The Nueva Esperanza Project is 100% owned by Kingsgate since February 2012. Nueva  Esperanza is located in the Maricunga Gold Belt  near Copiapó, a regional mining centre in  Northern Chile. The silver-rich mineralisation is  hosted by the Esperanza high-sulphidation  epithermal alteration system associated with  the Cerros Bravos volcanic complex. The project consists of three well-defined miner- alised deposits and a number of undeveloped  exploration targets. The main deposits are  Arqueros, Chimberos and Teterita. Arqueros was  previously mined on a limited scale by under- ground methods and Chimberos was exploited  as an open pit mine, delivering about 40 million  ounces of silver in 1998/99. All three deposits  currently have a combined Mineral Resources of  about 93 million ounces of silver equivalent or  1.6 million ounces of gold equivalent (EQ60) 1 . A feasibility study for a decision to mine the  Arqueros portion of Nueva Esperanza was  completed in late 2012, demonstrating that open  pit mining at two million tonnes per year and  processing by milling and agitation leaching in  cyanide was technically feasible. Work remained  to integrate the Teterita and Chimberos deposits  into the project, as well as to test lower cost  options for processing. Continued metallurgical  testwork has shown that mineralisation from all  three deposits by heap leaching is technically and  economically feasible and the preferred alterna- tive for development. Environmental approvals to commence  construction and mining at Nueva Esperanza  were granted in July 2013 for the original  Arqueros project. Work is underway to modify  and update the environmental assessment to  incorporate the heap leach process. 1   Equivalence is based on gold/silver price ratio  of 60. Gold equivalence = gold content plus  (silver content  divided  by 60), whereas Silver  equivalent silver content plus (gold content  multiplied by 60).