Anumso Gold Project

Highlights:

- Located in Ghana, the Anumso Gold project is a 29 sq km mining lease that covers 10km of conglomerate strike length in the Ashanti Gold Belt.

- 75% earn-in option with Goldplat PLC, an AIM listed company.

- Project is located 15 km to the west of Newmont’s Akyem Mine and occurs within the same Birimian volcano-sedimentary units.

- Easy access to the property with established nearby infrastructure.

- The Ashanti Gold Belt is one of the most prolific gold bearing belts in the world, hosting, among others, Tarkwa (Goldfields), Obuasi (AnglogoldAshanti) and Akyem (Newmont). Surprisingly, the eastern edge of the Ashanti belt remains largely unexplored.

- Ashanti is digging and sampling several trenches to assess the results of the soil sampling, which action will be followed by drill testing, anticipated to occur in Q3 2018.

Overview:

The Anumso License is underlain by Tarkwaian and Birimian series metasediments, volcanics and volcaniclastics, dipping approximately 60° to the east. Several bands of Tarkwaian conglomerate, separated by greywackes and arenites, are present on the property and exhibit impressive strike continuity. The detailed geology shows that the conglomerates outcrop on surface and can be traced continually over 4km.

Newmont's Akyem deposit, which is located 15km to the east and has circa 8 million oz of resource, occurs at the sheared margin of the Birimian volcanic and sedimentary units and the massive gold deposits of Tarkwa occur in Banket conglomerate horizons similar to those seen on the Banka concession.

Recent Work:

Important New Gold Zones Identified at Anumso

Results from 1,797 soil geochemical samples designed to test for gold mineralization along gold-bearing Banket conglomerate stratigraphy have identified two zones, each in excess of 1 km strike length and up to 240m wide, of significant gold anomalism. These zones are completely untested by drilling. In addition, both the East and West Banket reefs display multiple lines of mineralization rather than a single line of conglomerate as previously understood.

To view the figures from the January 18, 2018 news release and for more details, please click here.

Further, results from 486 new soil geochemical samples collected from extensions of previous sample lines significantly broaden the target area for gold mineralization. Previous sampling identified multiple lines of anomalism parallel to the drill tested Banket conglomerate with anomalous samples up to the ends of these lines.

Extensions of these sample lines, along with further testing of a newly discovered additional stratigraphic horizon of Banket conglomerate, reveals a new broadened anomaly area that is approximately 1500m by 500m. Click here for further details from the March 21st news release.

Local Geology:

The primary target for gold exploration is the eastern conglomerate horizon with its seven distinct zones. However, other prospective zones are: the 3.7km western conglomerate horizon which lies approximately 1.3km to the west of the eastern conglomerate; and the Tarkwaian/Birimian contact and Birimian volcano-sedimentary units to the east of Banka, which provide a similar geological setting to the Akyem deposit so may host a similar style of gold mineralisation.

The relationship between the eastern and western conglomerate is not clear. Previous interpretations have assumed they are two limbs of a synformal structure and therefore the same horizon. However, it is possible that the eastern conglomerate is part of a much larger regional synform which would mean the western conglomerate is a separate, younger conglomerate horizon. Such an interpretation would greatly increase the depth potential of mineralisation associated with the eastern conglomerate. A 32 hole, 6,125m diamond drilling programme at Anumso has been completed over a 4km strike which had been identified on the eastern Tarkwaian conglomerate between the villages of Banka and Tokwae.

The database used for the resource calculation also incorporated data from three historical drilling campaigns over the eastern conglomerate zone: Stanley Mining completed 29 reverse circulation ('RC') holes for 1,450m in 1995; Mwana Africa plc completed 25 diamond core holes in 2006 for 2,409 m and 21 diamond core holes in 2007 for 2,999m.

The current owners of the Anumso Mining Lease, Goldplat PLC, announced a mineral resource estimate for a 2km long portion of the eastern conglomerate in December 2012. This estimate was 6,250,000 tonnes at an average grade of 1.25 g/t giving 250,000 oz Au at a 0.5 g/t cut-off (this resource estimate is not considered as NI 43-101 compliant). All samples were submitted to ALS Chemex Laboratories in Kumasi and SGS in Tarkwa.

Anumso Gold Map:

Earn-in option:

Goldplat PLC, the underlying vendor of the Anumso license, has agreed to modify the terms of the option agreement with Ashanti Gold regarding the earn-in period for the initial 51% stake in Anumso (see press release September 15, 2016). Ashanti now has until October 31, 2018 to earn an initial 51% interest in the Anumso Project upon the expenditure of US$1.5M. An additional 24% interest can be earned through expenditure of an additional US$1.5M in the following 12 months. The government of Ghana has a carried 10% interest in all minerals and mining concessions in Ghana, thus the full potential 75% interest in Goldplat's 90% interest will reflect a 67.5% net interest for Ashanti Gold.

Ashanti Gold will be the operator of the exploration and development program during the option period. Upon completion of its earn in rights, Ashanti Gold and Goldplat will form a joint venture whereby each party will contribute proportionally to the Project's development, or have its interest diluted. If either party's interest is reduced to 10%, that interest is then converted into a 1.5% net smelter return royalty which the other party has the right for one year to purchase by paying US$100,000 for each 0.1% of the NSR.

Anumso NI 43-101 report 2016