JOKISIVU

Jokisivu Gold Mine

The Jokisivu Gold Mine is located 40 kilometres southwest of the Vammala Production Centre, within the Vammala Migmatite Belt. Gold mineralisation is hosted within a diorite unit, in 1 to 5 metre wide shear zones, with Measured, Indicated and Inferred Mineral resources totalling 338,500 ounces at 5.8 g/t gold.

Drilling has shown that mineralisation extends to at least 525 metres in depth, though resource drilling currently extends only down to 440 metres in the Kujankallio area. In the Arpola area mineralisation has only been drilled down to 200m. The deposit remains open with depth and partially along strike.

A reverse circulation (RC) drilling program designed to target the area between Kujankallio and Arpola returned a number of encouraging intercepts including 5m @ 5.20 g/t gold, 3m @ 5.42 g/t gold, 5m @ 3.43 g/t gold and 3m @ 18.57 g/t gold.

This area had previously been subjected to only limited exploration and the new intercepts provide strong indication that mineralised zones, which could be amenable to underground mining occur in close proximity to the decline development.

Results from RC drilling of the area between Kujankallio and Arpola

Follow-up diamond core drilling of this area has yielded further promising results, including 7.70m @ 4.09 g/t gold, 5.25m @ 8.61 g/t gold and 8.90m @ 4.52 g/t gold. Prior to mining this area, additional drilling to better define the extent and geometry of mineralisation will be required.

Results from diamond core drilling of the decline area between Kujankallio and Arpola

Drilling of an 18 hole, 3,170 metre in-fill program targeting the planned underground mining area at the eastern most end of the Kujankallio area has been completed. Results have been received from all holes, returning better intercepts of 7.05m @ 5.82 g/t gold, and 3.60m @ 8.44 g/t gold, 3.25m @ 7.69 g/t gold, 3.9m @ 13.35 g/t gold and 2.75m @ 7.99 g/t gold, confirming the width and grade of the Main Zone in this area.

An underground drilling program designed to test for repetitions of the horsetail structure at Kujankallio has also been completed. This program was undertaken from the 85m level and comprised of 7 holes, drilled in two fans, partly along strike. Results have been received from one hole to date, returning a best intercept of 1.75m @ 5.44 g/t gold.