Anumso Gold Project

Highlights:

- The Anumso Gold project is a 29 sq km mining lease that covers 5 km of 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.

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.

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.

Prospective zones within the Anumso Property, which may host gold mineralisation:

The western conglomerate horizon which lies approximately 1.3km to the west of the eastern conglomerate. This zone stretches for 3.7km in a north easterly direction and has been rock chip sampled at regular intervals. To date results have not been encouraging but if this horizon is the western limb of the same conglomerate unit mined by the Adansi Syndicate then it should be tested by drilling at depth. It should be noted that the northernmost 500 metre portion of the western conglomerate is coincident with anomalous soil geochemistry values. This has not previously been investigated.

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 – as suggested in the point above. 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.

The Tarkwaian / Birimian contact and Birimian volcanosedimentary units to the east of the BGP provide a similar geological setting to the Akyem deposit so may host a similar style of gold mineralization. Soil geochemistry has not identified any significant anomaly in this area but subsurface testing of structural targets may be justified in the future.

Earn-in option:

Ashanti Gold (at the time Gulf Shores Resources Ltd. (GUL.V)) signed a Letter of Intent (LOI) with Goldplat PLC ("Goldplat"), an AIM-listed public company, to earn an interest in the Anumso Gold Project (the "Project").

The LOI provides Ashanti Gold with the right to earn 75% of Goldplat's interest in the Project by expending US$3.0M on exploration over 2.5 years. An initial 51% interest will be earned through expenditure of US$1.5M in the first 18 months, and the remaining 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 75% interest in Goldplat's 90% interest will reflect a 67.5% net interest for Ashanti Gold.

Ashanti Gold will enter into a formal option agreement with Goldplat within 30 days following a normal due diligence period, and will be subject to approval by the Boards of Directors of both companies and the TSX Venture Exchange. 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