Yellowhead - Reserves & Resources

Mineral Reserve Estimate

Ron Simpson of Geosim Services Inc., a Qualified Person as defined in NI 43-101, prepared the following mineral resource estimate for the Project, effective as of March 30, 2014.

Measured and Indicated Mineral Reserves Contained Metal
tonnes (000’s) % Cu g/t Au g/t Ag Cu lbs
(M’s)
Au ounces
(000’s)
Ag ounces
(000’s)
Measured (M) 564,361 0.27 0.029 1.2 3,359 526 21,769
Indicated (I) 735,877 0.24 0.027 1.2 3,894 639 28,385
Total M + I 1,300,238 0.25 0.028 1.2 7,253 1,165 50,154
Inferred Mineral Resources
tonnes (000’s) % Cu g/t Au g/t Ag
Inferred 119,743 0.25 0.025 1.2 660 96 4,619

Notes:

  1. CIM definitions were followed for mineral resources and are inclusive of mineral reserves.
  2. Mineral resources are estimated at a cut-off grade of 0.15% Cu, which is considered consistent with other mineral deposits of similar characteristics, scale and location.
  3. Mineral resources are amenable to open pit mining methods and have been constrained using a Lerchs-Grossman optimized pit.
  4. Mineral resources were estimated using a copper price of US$3.50/lb Cu.
  5. Totals may not add due to rounding.

The mineral resources and mineral reserves included drill and assay information up to March 2014. A total of 90,778 metres of drilling in 353 drill holes, comprise the data base for the mineral resource and mineral reserve estimates.

Mineral Reserve Estimate

John Nilsson of Nilsson Mine Services Ltd., a Qualified Person as defined in NI 43-101, prepared the following mineral reserve estimate for the Project, effective as of March 30, 2014.

Proven and Probable Mineral Reserves Contained Metal
tonnes (000’s) % Cu g/t Au g/t Ag Cu lbs
(M’s)
Au ounces
(000’s)
Ag ounces
(000’s)
Proven 457,227 0.27 0.030 1.2 2,706 439 17,465
Probable 258,948 0.24 0.026 1.2 1,371 220 9,636
Proven + Probable 716,175 0.26 0.029 1.2 4,077 659 27,101

Notes:

  1. CIM definitions were followed for mineral reserves.
  2. Mineral reserves were estimated at a cut-off grade of 0.14% Cu.
  3. Mineral reserves were estimated using a copper price of US$2.25/lb., a gold price of US$1,250.00/oz and a silver price of US$20.00/oz.
  4. Totals may not add due to rounding.
  5. The mineral reserve estimate may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical and other relevant issues.
.