African Consolidated Resources plc / Ticker: AFCR / Index: AIM / Sector: Mining 4 March 2014 African Consolidated Resources plc ("AFCR" or "the Company") Declaration of a 1.02 million ounce Ore Reserve Estimate and Updated Mineral Resource Estimate and Clarification of previous information and Corporate Update African Consolidated Resources PLC, the AIM listed resources and development company, is pleased to announce the confirmation of an Ore Reserve Estimate in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 Edition ("the 2012 JORC Code") of 16.6Mt grading at 1.9g/t for 1.02Moz of contained metal at its flagship Pickstone Peerless Gold Project in Zimbabwe ("Pickstone-Peerless").

Minxcon was retained as the Competent Person under the 2012 JORC Code to compile an estimate for the Ore Reserve. The Company also announces an updated Mineral Resource Estimate on Pickstone-Peerless in accordance with the 2012 JORC Code supporting the Ore Reserve Estimate.

This is in line with company policy to report the Reserve estimate as a subset of the Mineral Resource.

The declared Resource is 62.0Mt at 1.8g/t containing 3.56 Moz at a cut-off grade of 0.3g/t down to 250 metres below surface (open pit) and at 1.5g/t for the remaining resource below 250 metres below surface.

ExplorMine was retained as the appointed Competent Person under the 2012 JORC code to compile and estimate the Companys resources. These upgraded Reserves and Resources have been developed from the Pre-Feasibility Study ("PFS") carried out by AFCR and as announced on 4 December 2013. In addition, the Company wishes to clarify certain information previously given for the benefit of investors and shareholders and provide a general corporate update. Pickstone-Peerless Ore Reserve Estimate: Key Highlights: � A total Ore Reserve Estimate of 1.02 million ounces @ 1.9 g/t based on a gold price of USD 1,300/oz and a cut-off grade of 0.4g/t � The Ore Reserve Estimate is based on designed open pits down to a depth of approximately 220 metres for the Peerless open pit and 250 metres for the Pickstone open pit � 2012 JORC Ore Reserve Statement compiled by independent consultants Minxcon Pty (Ltd); this follows the PFS developed by AFCR and the provisional Reserve declaration by AFCR of 1 million ounces, both as released on 4 December 2013. PICKSTONE / PEERLESS TOTAL ORE RESERVES @ December 2013 PICKSTONE ORE RESERVES December 2013 Reef Type Cut-off Grade Tonnes Grade Ounces Au g/t Mt g/t Koz Pickstone Oxide
Proved Oxide 0.4 g/t 0.46 1.4 21 Probable Oxide 5.37 1.4 248 Total (Proven & Probable) Oxide 5.84 1.4 269
Pickstone Sulphide
Proved Sulphide 0.4 g/t 0.04 4.0 5 Probable Sulphide 5.96 2.7 526 Total (Proven & Probable) Sulphide 5.99 2.8 531
Pickstone All
Proved All 0.4 g/t 0.50 1.6 26 Probable All 11.33 2.1 774 Total (Proven & Probable) All 11.83 2.1 800
PEERLESS ORE RESERVES December 2013 Reef Type Cut-off Grade Tonnes Grade Ounces Au g/t Mt g/t Koz Peerless Oxide
Proved Oxide 0.4 g/t 0.45 0.9 13 Probable Oxide 1.27 1.0 39 Total (Proven & Probable) Oxide 1.72 1.0 53
Peerless Sulphide
Proved Sulphide 0.4 g/t 0.75 1.5 35 Probable Sulphide 2.34 1.7 131 Total (Proven & Probable) Sulphide 3.09 1.7 166
Peerless All
Proved All 0.4 g/t 1.20 1.2 48 Probable All 3.61 1.5 170 Total (Proven & Probable) All 4.81 1.4 218
TOTAL ORE RESERVES December 2013 Reef Type Cut-off Grade Tonnes Grade Ounces Au g/t Mt g/t Koz Pickstone All
Proved All 0.4 g/t 0.50 1.6 26 Probable All 11.33 2.1 774 Total (Proven & Probable) All 11.83 2.1 800
Peerless All
Proved All 0.4 g/t 1.20 1.2 48 Probable All 3.61 1.5 170 Total (Proven & Probable) All 4.81 1.4 218
Total Mineral Reserve All
Proved All 0.4 g/t 1.70 1.3 74 Probable All 14.94 2.0 944 Total (Proven & Probable) All 16.64 1.9 1,018
Notes: 1.

Tonnages refer to tonnes delivered to the metallurgical plant 2.

All tonnes are metric tonnes 3.

Dilution factors applied: Dilution=7%, Ore Loss=3%, Geological Loss=2%, MCF=100% 4.

Cut-off grade of 0.4g/t applied to pit optimisation 5.

Metal price of USD$1,300 per ounce 6.

Conversion factor 1kg = 32.15076 ounce 7.

Rounding may cause minor computational discrepancies
The Ore Reserves have been estimated and compiled under the direction of Mr.

Daniel van Heerden who is a Fellow of the South African Institute of Mining and Metallurgy ("FSAIMM") and a member of various professional organisations as publicised in a list by the Australian Securities Exchange ("ASX").

Mr.

van Heerden has sufficient experience relevant to the style of mineralisation, type of deposit under consideration and for the activity being undertaken to qualify as a Competent Person as defined by the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.

Mr.

van Heerden consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.
AFCR wishes to clarify that the reserves table previously published on the Companys website erroneously omitted that it was a provisional reserve estimate, pursuant to the announcement of 4 December 2013. The full Ore Reserve Report prepared by Minxcon with an effective date of 1 November 2013 shall today be published on the Companys website.

In addition, the Executive Summary of the report has been extracted into Appendix 1 to this announcement.

It should be noted that the Financial Valuation at paragraph 1.5 of Appendix 1 is the valuation of the base line case as referred to in the PFS Executive Summary announced on 4 December 2013.

AFCRs preferred option (Option 12) in the PFS Executive Summary gives a higher valuation. Updated Pickstone-Peerless JORC Resource estimate: The ExplorMine Competent Persons Report ("CPR") detailing the June 2013 Mineral Resource Estimate for the Pickstone-Peerless Gold Project has been updated by ExplorMine Consultants with an effective date of December 2013 in accordance with the 2012 JORC Code.

A soft boundary between the higher grade inner zone and the lower grade outer zone at Pickstone has been utilised and has resulted in a 2.2% increase in total Mineral Resources when compared on the same cut-off grades as the June 2013 CPR. In addition, economic findings detailed in the PFS Report and the JORC Ore Reserve Estimate, in which the Ore Reserve Estimate for the open pit has been calculated at a cut-off grade of 0.4g/t, has resulted in the Resource Estimate being updated by ExplorMine to reflect the Mineral Resource Estimate at a cut-off grade 0.3g/t for both the Peerless and Pickstone open pits.

The change of cut-off grade is due to more precise technical and economic conclusions derived from the PFS.

The underground cut-off grade has been maintained at 1.5g/t for both the Peerless and Pickstone Mineral Resources. As a result of this, the Mineral Resources have increased in all resource categories and from a total of 39.96 Mt at 2.5 g/t for 3.21 Moz at a cut-off grade of 0.5g/t (Pickstone) and 0.6g/t (Peerless) as at June 2013, to now 62.0Mt at 1.8 g/t for a content of 3.56 Moz at a cut-off grade of 0.3g/t down to 250 metres below surface (open pit) and at 1.5g/t for the remaining resource below 250 metres below surface. Total Opencast Mineral Resources Pickstone and Peerless Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide
1.22
1.17
1,428
45,911 Indicated Oxide
10.08
1.06
10,725
344,817 Total Meas & Ind Oxide
11.30
1.08
12,153
390,728 Inferred Oxide
0.76
0.89
679
21,830 Total Resources Oxide
12.06
1.06
12,832
412,558
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
1.89
1.55
2,930
94,202 Indicated Fresh
16.92
1.63
27,599
887,328 Total Meas & Ind Fresh
18.81
1.62
30,529
981,530 Inferred Fresh
24.57
1.55
37,982
1,221,150 Total Resources Fresh
43.38
1.58
68,511
2,202,680
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All
3.11
1.40
4,358
140,113 Indicated All
27.00
1.42
38,324
1,232,145 Total Meas & Ind All
30.11
1.42
42,682
1,372,258 Inferred All
25.33
1.53
38,661
1,242,980 Total Resources All
55.44
1.47
81,343
2,615,238
Total Underground Mineral Resources Pickstone and Peerless Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide - - - - Indicated Oxide - - - - Total Meas & Ind Oxide - - - - Inferred Oxide - - - - Total Resources Oxide - - - -
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh - - - - Indicated Fresh
1.72
4.81
8,278
266,146 Total Meas & Ind Fresh
1.72
4.81
8,278
266,146 Inferred Fresh
4.80
4.40
21,105
678,527 Total Resources Fresh
6.52
4.51
29,383
944,673
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All - - - - Indicated All
1.72
4.81
8,278
266,146 Total Meas & Ind All
1.72
4.81
8,278
266,146 Inferred All
4.80
4.40
21,105
678,527 Total Resources All
6.52
4.51
29,383
944,673
Total Mineral Resources Pickstone and Peerless Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide
1.22
1.17
1,428
45,911 Indicated Oxide
10.08
1.06
10,725
344,817 Total Meas & Ind Oxide
11.30
1.08
12,153
390,728 Inferred Oxide
0.76
0.89
679
21,830 Total Resources Oxide
12.06
1.06
12,832
412,558
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
1.89
1.55
2,930
94,202 Indicated Fresh
18.64
1.92
35,877
1,153,474 Total Meas & Ind Fresh
20.53
1.89
38,807
1,247,676 Inferred Fresh
29.37
2.01
59,087
1,899,677 Total Resources Fresh
49.90
1.96
97,894
3,147,353
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All
3.11
1.40
4,358
140,113 Indicated All
28.72
1.62
46,602
1,498,291 Total Meas & Ind All
31.83
1.60
50,960
1,638,404 Inferred All
30.13
1.98
59,766
1,921,507 Total Resources All
61.96
1.79
110,726
3,559,911
Notes: 1.

Mineral Resources are reported as inclusive of Ore Reserves. 2.

Cut-off Grades Pickstone: Open Pit (above 250m below surface) 0.30g/t; Underground (below250m from surface) 1.5 g/t 3.

Cut-off Grades Peerless: Open Pit (above 250m below surface) 0.30g/t; Underground (below 250m from surface) 1.5 g/t 4.

Rounding may cause minor computational discrepancies For comparative purposes, a tabulation for both the surface Resources and underground Resources at Pickstone Peerless are provided below to illustrate the impact of reducing the cut-off grade. PEERLESS SURFACE RESOURCES Cut-Off Grade (g/t) Tonnes (Mt) Grade above cut-off (g/t) Au (Koz) Au (kgs) - 33.70 1.1 1,227 38,161 0.3 * 25.57 1.4 1,173 36,485 0.6 ** 16.08 2.0 1,042 32,406 1.0 10.85 2.6 914 28,419 1.5 7.82 3.2 793 24,677 2.0 5.48 3.8 663 20,621 3.0 2.93 5.0 469 14,597 4.0 1.97 5.7 362 11,265 5.0 1.08 6.8 234 7,281 Notes: * Represents the cut-off grade used for the surface Mineral Resources as currently reported (December 2013) ** Represents the cut-off grade used for the surface Mineral Resources as previously reported (June 2013) Open Pit Mineral Resources are defined as above 250m below surface
PICKSTONE SURFACE RESOURCES Cut-Off Grade (g/t) Tonnes (Mt) Grade above cut-off (g/t) Au (Koz) Au (kgs) - 80.68 0.7 1690 52,565 0.3 * 29.86 1.5 1442 44,859 0.5 ** 17.15 2.2 1,240 38,566 1 9.98 3.5 1118 34,765 1.5 7.14 4.4 1007 31,312 2 5.47 5.2 913 28,396 3 3.7 6.5 776 24,136 4 2.71 7.6 665 20,697 5 2.04 8.7 570 17,721 Notes: * Represents the cut-off grade used for the surface Mineral Resources as currently reported (December 2013) ** Represents the cut-off grade used for the surface Mineral Resources as previously reported (June 2013) Open Pit Mineral Resources are defined as above 250m below surface PEERLESS UNDERGROUND RESOURCES Cut-Off Grade (g/t) Tonnes (Mt) Grade above cut-off (g/t) Au (Koz) Au (kgs) - 3.38 1.7 181 5,620 0.3 2.98 1.9 178 5,539 0.5 1.94 2.6 164 5,113 1.0 1.50 3.2 155 4,808 1.5 * 1.17 3.8 141 4,393 2.0 0.95 4.2 130 4,030 3.0 0.62 5.2 103 3,204 4.0 0.51 5.6 92 2,862 5.0 0.19 7.4 46 1,428 Notes: * Represents the cut-off grade used for the underground Mineral Resources both as currently reported (December 2013) and as previously reported (June 2013 CPR) Underground Mineral Resources are defined as below 250m below surface PICKSTONE UNDERGROUND RESOURCES Cut-Off Grade (g/t) Tonnes (Mt) Grade above cut-off (g/t) Au (Koz) Au (kgs) - 6.29 4.1 825 25,670 0.3 6.13 4.2 824 25,640 0.5 5.97 4.3 822 25,575 1 6.60 4.5 814 25,314 1.5 * 5.35 4.7 803 24,990 2 4.80 5.0 772 24,012 3 3.76 5.7 691 21,478 4 3.00 6.3 606 18,844 5 2.23 6.9 494 15,375 Notes: * Represents the cut-off grade used for the underground Mineral Resources both as currently reported (December 2013) and as previously reported (June 2013 CPR) Underground Mineral Resources are defined as below 250m below surface The full ExplorMine Competent Persons Report, which incorporates the above Mineral Resource Statement shall today be published on the Companys website.

In addition, an extract from the CPR of the full summary estimation of the Mineral Resources (section 1.4) and the summary Conclusions and Recommendations (sections 1.5 and 1.6) is detailed in Appendix 2 to this announcement. Clarification of previous information: Due to the number of different reports that have been issued since November 2012 as the understanding of the Pickstone Peerless ore body has grown, the Company believes it appropriate and helpful to make clear where the Company has taken responsibility itself, through its team of employed Competent Persons (in accordance with the JORC Code) and other qualified employees, and where the Company has retained and relied on third party experts. The table below shows the various responsibilities, the announcement date and location of relevant reports for the Preliminary Economic Assessment (14.11.12); JORC CPR (15.07.13); DFS (15.07.13); JORC Ore Reserve (15.07.13); audit by SRK/Camisani of Resources (30.09.13); outcome of PFS and Executive Summary (04.12.13); and Ore Reserve (today). Information Available for Pickstone Peerless Reserves/Resources and Mining Studies Report/announcement date/location Purpose Author PEA: Preliminary Economic Assessment Announced 14 November 2012 and 4 December 2012 AFCR Website Scoping study to assess viability of Phase 1 and 2 open pits on Pickstone trend, prior to commissioning DFS on Phase 1 oxide pit Minxcon, AFCR JORC CPR Announced: 15 July 2013 Location: AFCR Website Upgraded Resource estimate to support DFS.

Hard Boundary at Pickstone. ExplorMine Definitive Feasibility Study Announced: 15 July 2013, Supported by: DFS Executive Summary June 2013 Location: AFCR Website DFS for development of a Stage 1, 20,000 tonne- per- month plant, mining shallow oxide ore. Facilitates fast development of a relatively low-capex, high-recovery gold plant. AFCR: overall responsibility of study, including compilation, finalisation and conclusions Assisted by Independent Experts: Minxcon: Mine design, Financial valuation, JORC Ore Reserves ExplorMine: CPR JORC Resources Others covering metallurgy, tailings, environmental impact assessment, geotechnical design, plant design and layout and geohydrology JORC Ore Reserves Estimate to support DFS Announced: 15 July 2013 Location: To be made available on AFCR Website on 4 March 2014 Maiden Ore Reserve Statement of 136,000 Oz as a result of the DFS study Minxcon
Audit of July 2013 Resources, Announced: 30 September 2013 Location: To be made available on AFCR Website on 4 March 2014 Confirmation of the July 2013 Resource estimate
Dr Ferdi Camisani SRK Consulting
PFS: Outcome of Prefeasibility Study statement Announced 4 December 2013: AFCR Website
Supported by: PFS Executive summary Location: AFCR Website Study for Phase 2 pit, mining oxide and sulphide ore to 250m depth.

Provisional declaration of a 1Moz Ore Reserve as a consequence - JORC report to follow. This study enabled a term sheet for $70m debt funding from a major African bank. AFCR: overall responsibility and drafting of study Minxcon: supporting financial valuation Senet; metallurgical review, plant design & layout, Capex and Opex estimate
JORC Ore Reserve and Resource Declaration Announced 4 March 2014 Location: To be made available on AFCR Website on 4 March 2014 Confirmation of Ore Reserve of 1.02Moz as foreshadowed in PFS, plus upgrade of JORC Resources which were re-calculated at new cut-off grades according to the financial conclusions of the PFS. Reserves: Minxcon Resources: ExplorMine Reviewed by AFCR JORC CPR - Resource Estimate December 2013 Announced 4 March 2014 Location: To be made available on AFCR Website on 4 March 2014 Details the Resource statements in the PFS and is in line with company policy to report Reserves as subsets of Resources.

Soft Boundary at Pickstone. ExplorMine
JORC Ore Reserve Estimate December 2013 Announced 4 March 2014 Location: To be made available on AFCR Website on 4 March 2014 JORC estimate of 1.02Moz Reserve as subset of JORC Resource above Minxcon
Pursuant to the announcement of the DFS of 15 July 2013 (the "DFS Announcement"), Basil Read Matomo ("BRM") had been appointed lead contractor for the DFS and had been intended to remain as such for the PFS.

However, following a dispute between the Company and BRM, which was not connected in any way with the results of the DFS, the relationship with BRM was terminated in August 2013.

The Company wishes to clarify that whilst BRM contributed to plant design and construction pursuant to its contract, the Company is responsible for the authoring of the DFS and also sought third party assurances on work undertaken by BRM from Minxcon and others; that Minxcon was the Competent Person for the Ore Reserve; and that ExplorMine was the Competent Person for the Ore Resource.

In authoring the DFS, the Companys team of employed Competent Persons (in accordance with the JORC Code) and other qualified employees worked closely and directly with Minxcon.

Minxcon reviewed the DFS and has confirmed that the study is of adequate quality and level of detail to be used to conduct a 2012 JORC-compliant Ore Reserve estimation. Similarly, in authoring the subsequent PFS, the Companys team of employed Competent Persons (in accordance with the JORC Code) and other qualified employees worked closely with Minxcon.

Minxcon also reviewed the PFS and has confirmed that the study is of adequate quality and level of detail to be used to conduct a 2012 JORC-compliant Ore Reserve estimation. The DFS and PFS used the terms "Mineral Inventory", "Mining Inventory" and "Diluted ounces" which are not defined by the JORC Code but are deemed by the Company to be industry accepted terms.

However, the announcements of the DFS and PFS did not incorporate the following definitions for such terms, which are detailed below: Mineral Inventory The total mineral Resources (Measured, Indicated and Inferred) contained within a defined mining unit on an in-situ (undiluted) basis Mining Inventory The total mineral Resources (Measured, Indicated and Inferred) contained within a defined mining unit on a diluted basis based on modifying factors as per the JORC code Diluted ounces Gold ounces contained within in-situ ore the quantum of which have been diluted by application of the modifying factors as per the JORC reporting code
Corporate Update: Nkombwa Hill (Zambia) Galileo Resources Plc ("Galileo"), which is financing AFCRs Joint Venture ("JV") on the Nkombwa Hills Rare-Earth ("REE") and Phosphate project in NE Zambia, has advised AFCR that it will be relinquishing its interest in all greenfield projects, including Nkombwa Hill.
Galileo was earning an interest by funding exploration expenditure on the JV between AFCR and Australian-based Rare Earth International ("REI").

The REI/Galileo group is committed to spend US$1.35 million by Q4 2014 in order to define a JORC-Indicated REE Resource.

Communication concerning termination of the JV is ongoing.
AFCR is highly encouraged by the extent and grades of the REE surface sampling in 2013, and the JV has already established a water bore and a track to the mountain summit, in order to commence drilling in the onset of the Zambian dry season.
With the departure of Galileo, AFCR is actively seeking new partners to progress the REE and Phosphate exploration on this major mineralised carbonatite complex. Kalengwa (Zambia) There was a hearing in the Supreme Court of Zambia on 26 February 2014 against the occupier of the site and officials for Contempt of the Supreme Court judgement of 2011 and the Company awaits the judgement.

As announced in the Interim Results on 19 December 2013, this was originally set down for hearing on 14 January 2014 but the defendants succeeded in gaining an adjournment.

Further detail on the legal issues surrounding this key project was provided in the Chairmans Report in the 2012 Annual Report. Pickstone Peerless The Company is pleased to inform shareholders that it is currently undertaking a due diligence exercise with a major African bank with which a term sheet was signed in 2013.

The term sheet provides for a debt facility to fully finance the expansion of the mine to 50,000 tonnes per month, subject to customary due diligence, credit committee approval and also to AFCR securing equity for the initial plant construction. The Company is now engaging with a number of interested parties to raise USD 30 million for Phase 1 construction as required by the term sheet as a pre-condition to debt-financing the project.

The Company is therefore also facilitating due diligence exercises with parties who have expressed bona fide interest in this respect. A detailed indigenization plan has been drafted and its submission to the relevant Zimbabwean authority is imminent.

By regulation, the indigenization authority has 45 days to approve or reject the submission from the date of submission. Funding The cash balance at 31 January 2014 was $1.85 million (unaudited) and as reported in the Interim Results further funding will be required in Q2 2014 in order for AFCR to both continue operating as a going concern and develop its Pickstone-Peerless Gold Project together with its portfolio of high impact assets.

Discussions are in progress in relation to additional equity funding. **ENDS** For further information visit www.afcrplc.com or please contact: Roy Tucker African Consolidated Resources plc +44 (0) 1622 816918 +44 (0) 7920 189012 Craig Hutton African Consolidated Resources plc +27 11 51 333 42 Andrew Godber Panmure Gordon (UK) Limited +44 (0) 20 7886 2500 Adam James Panmure Gordon (UK) Limited +44 (0) 20 7886 2500 Susie Geliher St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Minxcon has read and approved the disclosure of the technical information relating to the Ore Reserve Estimate contained in this announcement. ExplorMine has read and approved the disclosure of the technical information relating to the Mineral Resource Estimate and the Competent Persons Report contained in this announcement. This announcement has been reviewed by Mike Kellow BSc, a member of the Australian Institute of Geologists and Technical Director of AFCR.

Mr Kellow meets the definition of a "qualified person" as defined in the AIM Note for Mining, Oil and Gas Companies. Glossary of key technical terms Term Explanation Au chemical symbol for gold Core
Cylindrical sample of rock as cut by a diamond drill CPR
Competent Persons Report Cut-off grade
The minimum grade at which a unit of ore will be mined to achieve the desired economic outcome. DFS
Definitive Feasibility Study diamond drilling
Drilling method using a diamond-impregnated cutting bit to obtain a core sample of rock diluted
in-situ material which has been diluted by application of the modifying factors as per the JORC reporting code greenstone belt belts of metamorphosed sedimentary and igneous rocks of Archean age Indicated mineral resource An indicated mineral resource is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence.

It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed. Inferred mineral resource An inferred mineral resource is that part of a mineral resource for which tonnage, grade resource and mineral content can be estimated with a low level of confidence.

It is inferred from geological evidence and assumed but not verified geological and/or grade continuity.

It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability. in-situ material in the ground which has not been diluted or had losses applied to it JORC Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy Lodes
Higher grade portion of mineralised zones, usually with specific orientation MCF
Mine Call Factor Measured mineral resource
A measured mineral resource is that part of a mineral resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence.

It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

The locations are spaced closely enough to confirm geological and grade continuity. Metallurgical plant
A processing plant erected to treat ore and extract gold. Mine call factor
The ratio, expressed as a percentage, of the total quantity of recovered and unrecovered mineral product after processing with the amount estimated in the ore based on sampling.

It is expressed as the Gold Called For ("GCF") versus the Gold Accounted For ("GAF") mineralised zones
hydrothermally altered structural features containing potentially valuable minerals Modifying factors (JORC code)
Mining factors applied to in-situ, undiluted Resources that then become diluted material for a plant feed and represent a Reserve as defined by the JORC code.

Modifying factors include waste dilution, ore losses, geological losses and mine call factor. orebody
economically viable portion of a mineralised zone oxide
mineral compounds containing oxygen with minimal or no sulphur compounds PFS
Pre-Feasibility Study Probable mineral reserve
A probable mineral reserve is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource.

It includes diluting materials and allowances for losses which may occur when the material is mined.

Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors.

These assessments demonstrate at the time of reporting that extraction could reasonably be justified Proved reserve
A proved mineral reserve is the economically mineable part of a measured mineral resource.

It includes diluting materials and allowances for losses which may occur when the material is mined.

Appropriate assessments and studies have been carried out, and include consideration of and modification by realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors.

These assessments demonstrate at the time of reporting that extraction could reasonably be justified Reserve
Ore Reserve as defined by the JORC Code 2012 Resource
mineral resource as defined by the JORC Code 2012
reverse circulation drilling
rotary percussion drilling whereby the sample is returned from the cutting head inside the rod string to surface thereby avoiding contamination from the walls of the hole
sulphide
sulphur bearing metallic mineral
tenement
an area encompassing a number of blocks of claims
undiluted
in-situ material which has not been diluted by application of the modifying factors as per the JORC reporting code.
UNITS
cm.g/t
centimetre grams per tonne - metal content expressed as grade times thickness
g
gramme
g/t
grammes per metric tonne - metal concentration
Ha
hectare
Kg
kilogramme, a thousand grammes
Km
kilometre
Koz
thousand ounces
Kt
thousand metric tonnes
Kv
thousand volt
Kva
thousand volt amperes
M
metre
mm
millimetre
�m
micron, or millionth of a metre
Mt
million metric tonnes
Moz
million ounces
oz
fine troy ounce equaling 31.1048 grammes - normal unit used in selling gold
ppb
parts per billion
ppm
parts per million, equivalent to g/t
t
metric tonne
t/m3
density measured as metric tonnes per cubic metre
Appendix 1 - Ore Reserve Report Minxcon Summary extract 1 EXECUTIVE SUMMARY Minxcon (Pty) Ltd ("Minxcon") was commissioned by African Consolidated Resources ("AFCR" or "the Client") to complete an Ore Reserve report on the Pickstone-Peerless Gold Project ("the Project") in Zimbabwe, in compliance with the requirements of the 2012 edition of the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves ("the JORC Code"). 1.1 MINERAL RESOURCES The Mineral Resource estimation and Resource block model that was used for the Mineral Resource to Ore Reserve conversion was conducted by ExplorMine Consultants in June 2013, Bill Northrop, Andre Deiss and Garth Mitchell signed off the Mineral Resource estimation and block model as the Qualified Person ("QP"). Mineral Resource Estimation for the Pickstone-Peerless Project - Effective June 2013, ExplorMine Consultants Reef Type Mineral Resource Category Tonnes (million) Grade g/t Au Oz Oxides Measured 0.70 1.48 33,166 Indicated 5.23 1.58 265,739 Total Meas & Ind 5.93 1.57 298,905 Inferred 0.53 1.41 24,010 Total Resource 6.45 1.56 322,925 Sulphides Measured 1.21 2.15 83,919 Indicated 11.97 2.69 1,034,118 Total Meas & Ind 13.18 2.64 1,118,037 Inferred 20.33 2.71 1,771,649 Total Resource 33.51 2.68 2,889,686 All Measured 1.91 1.91 117,086 Indicated 17.20 2.35 1,299,857 Total Meas & Ind 19.11 2.31 1,416,942 Inferred 20.86 2.68 1,795,669 Total Resource 39.96 2.50 3,212,611
1.2 LIFE OF MINE PLAN The diluted LoM plan is illustrated in the following figure.

It must be noted that the production profile represented in this document is the Base Case option of the Pre-Feasibility Study (PFS). [Diluted LoM Profile graph - see full document on AFCR website] The LoM production summary is detailed in the following table. Description Unit Peerless Pickstone Project Total Total tonnes mined t 57,107,361 177,493,455 234,600,817 Total Oxides - tonnes Mined t 1,675,561 5,938,739 7,614,300 Total Sulphides - Tonnes Mined t 4,244,062 7,275,739 11,519,801 Total Waste - Tonnes Mined t 51,187,739 164,278.977 215,466,716 In Situ Grade (Oxides) g/t 1.04 1.55 1.44 In Situ Grade (Sulphides) g/t 2.01 3.15 2.73 In Situ Grade (Oxides and Sulphides) g/t 1.73 2.43 2.22 Content Au (Oxides) kg 1,736 9,226 10,962 Content Au (Sulphides) kg 8,531 22,948 31,480 Content Au (Oxides and Sulphides) kg 10,267 32,174 42,441 Content Au (Oxides) ounces 55,800 296,606 352,406 Content Au (Sulphides) ounces 274,278 737,776 1,012,054 Content Au (Oxides and Sulphides) ounces 330,078 1,034,382 1,364,460 Stripping Ratio
8.65 12.43 11.26
1.3 PROVED AND PROBABLE ORE RESERVES The Ore Reserve estimation conducted by Minxcon is detailed in the following table.

These reserves stated are based on an option from the PFS completed by Minxcon. Ore Reserves as at 6 December 2013 Pickstone Ore Reserve Category Tonnes Au Content Koz Grade g/t Proved Oxides 464,534 20.6 1.38 Probable Oxides 5,373,059 248.3 1.44 Total Proved & Probable Oxides 5,837,594 268.9 1.43 Proved Sulphides 38,361 4.9 3.94 Probable Sulphides 5,956,614 525.8 2.75 Total Proved & Probable Sulphides 5,994,975 530.6 2.75 Total Pickstone (Oxides and Sulphides) 11,832,569 799.6 2.10
Peerless Ore Reserve Category Tonnes Au Content Koz Grade g/t Proved Oxides 450,886 13.1 0.90 Probable Oxides 1,265,997 39.4 0.97 Total Proved & Probable Oxides 1,716,882 52.5 0.95 Proved Sulphides 746,603 35.0 1.46 Probable Sulphides 2,341,859 130.5 1.73 Total Proved & Probable Sulphides 3,088,462 165.5 1.67 Total Peerless (Oxides and Sulphides) 4,805,344 218.0 1.41
Total Ore Reserve Category Tonnes Au Content Koz Grade g/t Proved Oxides 915,420 33.8 1.15 Probable Oxides 6,639,056 287.7 1.35 Total Proved & Probable Oxides 7,554,476 321.5 1.32 Proved Sulphides 784,964 39.9 1.58 Probable Sulphides 8,298,473 656.3 2.46 Total Proved & Probable Sulphides 9,083,438 696.2 2.38 Total All (Oxides and Sulphides) 16,637,914 1,017.6 1.90 Notes: 1.

Tonnages refer to tonnes delivered to the metallurgical plant. 2.

Dilution factors applied: Dilution = 7%, Ore Loss = 3%, Geo loss = 2% and MCF = 100%. 3.

Cut-off was 0.4 g/t, a pit optimization was also done.

The subsequent ultimate pit was used as a cut-off parameter. 4.

Metal prices used were: Gold = USD1300/oz. 5.

Conversion: 1 kg = 32.15076 oz. 1.4 OPERATING COST The operating cost breakdown for all the different mining phases is detailed in the following table. Operating Cost Breakdown Production Variable Cost
Unit Phase 1 Phase 2 Ore tonnes produced USD/Ore Tonne 3.34 2.00 Waste Tonnes produced USD/Waste tonne 2.95 1.57 Production Fixed Cost
Fixed Cost USD/month 166,562.68 166,562.68
The 20 ktpm oxides and 50 ktpm sulphides plant operating cost is detailed in the following tables. Operating Cost - 20 ktpm Oxides Plant 20 ktpm Oxides Plant Units Value Fixed Cost Per Month Power USD/t ore milled 0.14 Water USD/t ore milled 0.003 Labour USD/t ore milled 6.35 Sewerage Works USD/t ore milled 0.001 Security- Final product handling and dispatch USD/t ore milled 1.03 Maintenance USD/t ore milled 0.72 Total Fixed Costs USD/t ore milled 8.25 Variable Costs Consumables USD/t ore milled 5.31 Reagents USD/t ore milled 4.50 Water USD/t ore milled 0.03 Power USD/t ore milled 4.49 TSF USD/t ore milled 0.03 Diesel USD/t ore milled 0.49 Laboratory- reagents and consumables USD/t ore milled 0.75 Transport USD/t ore milled 0.71 Total Variable Costs USD/t ore milled 16.32 OPEX Contingency USD/t ore milled 0.00 Total OPEX Cost USD/t ore milled 24.56 Source: Senet Operating Cost - 50 ktpm Sulphides Plant 50 ktpm Sulphide Plant Units Value Fixed Cost Per Month Power USD/t ore milled 0.06 Water USD/t ore milled 0.00 Labour USD/t ore milled 3.83 Sewerage Works USD/t ore milled 0.00 Security- Final product handling and dispatch USD/t ore milled 0.41 Maintenance USD/t ore milled 0.53 Flotation USD/t ore milled 1.00 Total Fixed Costs USD/t ore milled 5.83
Consumables USD/t ore milled 3.99 Reagents USD/t ore milled 6.72 Water USD/t ore milled 0.03 Power USD/t ore milled 4.10 TSF USD/t ore milled 0.03 Diesel USD/t ore milled 0.20 Laboratory- reagents and consumables USD/t ore milled 0.79 Transport USD/t ore milled 0.71 Total Variable Costs USD/t ore milled 16.56 OPEX Contingency USD/t ore milled 0.00 Total OPEX Cost USD/t ore milled 22.39 Float, UFG + Intensive Leach-Reduction
5.14 Total OPEX Cost
27.53 Source: Senet 1.5 FINANCIAL VALUATION Minxcons in-house Discounted Cash Flow ("DCF") model was used to illustrate the net present value ("NPV") for the operation in real terms.

The NPV is derived from post royalties and tax, pre-debt real cash flows, using the techno-economic parameters, commodity price and macro-economic projections.

The project valuation summary is described in the following table. Project Valuation Real Discount Rate Unit Project NPV @ 0.00% USDm 279 NPV @ 5.00% USDm 176 NPV @ 10.00% USDm 112 NPV @ 15.00% USDm 71 NPV @ 20.00% USDm 45 IRR USDm 41%
For the purpose of the DCF, the company has taken into consideration the full mineable resource life.

The Project has a mining LoM of 12 years and a plant treatment life of 26 years.

The first financial year is from January 2014 to December 2014. In order to maximise the grade feed to the plant, the Company decided to decouple the pit from the plant.

In order to do so, stockpiles with different grades were modelled which will be fed into the plant to achieve a desirable grade.

This was done to generate positive profit:cash margins as soon as possible and to reduce the payback period of the initial capital.

As a result of the strategy explained above the cash flows from 2031 are displayed as marginal and is a function of the grade of the stockpiles left behind that will be fed into the plant. Average payback was calculated from start of first capital expenditure in January 2014 and was calculated at 5.4 years (concluding in May 2019).

Peak cash flow is seen during 2026. [Annual and cumulative Cash Flow graph - see full document on AFCR website] Based on the real cash flow calculated in the financial model, Minxcon performed single-parameter sensitivity analyses to ascertain the impact on the NPV.

For the DCF the gold prices, grade and recoveries have the biggest impact on the sensitivity of the project.

Although a large amount of capital is required upfront, the impact on the NPV over the LoM is minimal. [Sensitivity Analysis graph - see full document on AFCR website]
Appendix 2 - Mineral Resource Estimation - ExplorMine CPR extract 1.4 Mineral Resources A complete estimation of the Mineral Resources has been performed based on a database that has been completely checked and corrected for entry errors.

It is intended to perform an evaluation that will give a spatial expression of value distribution, so that the extraction of the primary gold Mineral Resources can be planned efficiently.

Hangingwall and footwall mineralisation was also estimated so as to aid Feasibility Study options.

Ordinary kriging, for all Mineral Resource categories, was carried out into three-dimensional geological block models for each modelled mineralised zone, which produced a three-dimensional spatial distribution of gold grade in inclined reef structural blocks. Total Opencast Mineral Resources Peerless Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide 0.73 0.89 648 20,834 Indicated Oxide 1.40 0.95 1,334 42,889 Total Meas & Ind Oxide 21.3 0.93 1,982 63,723 Inferred Oxide 0.12 0.74 89 2,861 Total Resources Oxide 0.25 0.92 2,071 66,584
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh 1.76 1.17 2,060 66,231 Indicated Fresh 5.04 1.36 6,860 220,554 Total Meas & Ind Fresh 6.80 1.31 8.920 286,785 Inferred Fresh 16.53 1.54 25,493 819,619 Total Resources Fresh 23.33 1.43 36,484 1,172.988
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All 2.49 1.09 2,708 87,064 Indicated All 6.44 1.27 8,194 263,443 Total Meas & Ind All 8.93 1.22 10,902 350,507 Inferred All 16.65 1.54 25,582 822,480 Total Resources All 25.58 1.43 36,484 1,172,988
Total Underground Mineral Resources Peerless Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide - - - - Indicated Oxide - - - - Total Meas & Ind Oxide - - - - Inferred Oxide - - - - Total Resources Oxide - - - -
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
Indicated Fresh 0.02 1.68 35 1.127 Total Meas & Ind Fresh 0.02 1.68 35 1,127 Inferred Fresh 1.15 3.80 4,358 140,099 Total Resources Fresh 1.17 3,77 4,393 141,226
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All
Indicated All 0.02 0.89 648 20,834 Total Meas & Ind All 0.02 0.95 1,334 42,889 Inferred All 1.15 0.93 1,982 63,723 Total Resources All 1.17 3.77 4,393 141,226
Total Mineral Resources Peerless Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide 0.73 0.89 648 20,834 Indicated Oxide 1.40 0.95 1,334 42,889 Total Meas & Ind Oxide 2.13 0.93 1.982 63,723 Inferred Oxide 0.12 0.74 89 2,861 Total Resources Oxide 2.25 0.92 2,071 66,584
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh 1.75 1.17 2.060 66,231 Indicated Fresh 5.06 1.36 6,895 221,681 Total Meas & Ind Fresh 6.82 1.31 8,955 287,912 Inferred Fresh 17.68 1.69 29,851 959,718 Total Resources Fresh 24.50 1.58 38,806 1,247,630
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All 2.49 1.09 2,708 87,064 Indicated All 6.46 1.27 8,229 264,570 Total Meas & Ind All 8.95 1.22 10,937 351,635 Inferred All 17.80 1.68 29,940 962,579 Total Resources All 26.75 1.53 40,877 1,314,214
Table II: Mineral Resource estimate for the Peerless mineralised trend.

A 0.3 Au g/t cut-off has been applied for near surface less than 250 m below surface) material and a 1.5 g/t cut-off has been applied for material deeper than 250 m below surface (tonnes and element kgs have been rounded-off to the appropriate level of accuracy). Total Opencast Mineral Resources Pickstone Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide
0.49
1.59
780
25,078 Indicated Oxide
8.68
1.08
9,391
301,928 Total Meas & Ind Oxide
9.17
1.11
10,171
327,005 Inferred Oxide
0.64
0.92
590
18,969 Total Resources Oxide
9.81
1.10
10,761
345,974
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
0.13
6.69
870
27,971 Indicated Fresh
11.88
1.75
20,739
666,774 Total Meas & Ind Fresh
12.01
1.80
21,609
694,745 Inferred Fresh
8.04
1.55
12,489
401,531 Total Resources Fresh
20.05
1.70
34,098
1,096,276
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All
0.62
2.66
1,650
53,049 Indicated All
20.56
1.47
30,130
968,702 Total Meas & Ind All
21.18
1.50
31,780
1,021,751 Inferred All
8.68
1.51
13,079
420,500 Total Resources All
29.86
1.50
44,859
1,442,250
Total Underground Mineral Resources Pickstone Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide - - - - Indicated Oxide - - - - Total Meas & Ind Oxide - - - - Inferred Oxide - - - - Total Resources Oxide - - - -
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
-
-
-
- Indicated Fresh
1.70
4.85
8,243
265,019 Total Meas & Ind Fresh
1.70
4.85
8,243
265,019 Inferred Fresh
3.65
4.59
16,747
538,429 Total Resources Fresh
5.35
4.67
24,990
803,447
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All - - - - Indicated All
1.70
4.85
8,243
265,019 Total Meas & Ind All
1.70
4.85
8,243
265,019 Inferred All
3.65
4.59
16,747
538,429 Total Resources All
5.35
4.67
24,990
803,447
Total Mineral Resources Pickstone Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide
0.49
1.59
780
25,078 Indicated Oxide
8.68
1.08
9,391
301,928 Total Meas & Ind Oxide
9.17
1.11
10,171
327,005 Inferred Oxide
0.64
0.92
590
18,969 Total Resources Oxide
9.81
1.10
10,761
345,974
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
0.13
6.69
870
27,971 Indicated Fresh
13.58
2.13
28,982
931,793 Total Meas & Ind Fresh
13.71
2.18
29,852
959,764 Inferred Fresh
11.69
2.50
29,236
939,959 Total Resources Fresh
25.40
2.33
59,088
1,899,723
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All
0.62
2.66
1,650
53,049 Indicated All
22.26
1.72
38,373
1,233,721 Total Meas & Ind All
22.88
1.75
40,023
1,286,769 Inferred All
12.33
2.42
29,826
958,928 Total Resources All
35.21
1.98
69,849
2,245,698
Table III: Mineral Resource estimate for the Pickstone mineralised trend.

A 0.3 Au g/t cut-off has been applied for near surface (less than 250 m below surface) material and a 1.5 g/t cut-off has been applied for material deeper than 250 m below surface (tonnes and element kgs have been rounded-off to the appropriate level of accuracy). Total Opencast Mineral Resources Pickstone and Peerless Opencast Mineral Resource Tabulation at a cut-off of 0.3 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide
1.22
1.17
1,428
45,911 Indicated Oxide
10.08
1.06
10,725
344,817 Total Meas & Ind Oxide
11.30
1.08
12,153
390,728 Inferred Oxide
0.76
0.89
679
21,830 Total Resources Oxide
12.06
1.06
12,832
412,558
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
1.89
1.55
2 930
94,202 Indicated Fresh
16.92
1.63
27 599
887,328 Total Meas & Ind Fresh
18.81
1.62
30 529
981,530 Inferred Fresh
24.57
1.55
37 982
1,221,150 Total Resources Fresh
43.38
1.58
68 511
2,202,680
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All
3.11
1.40
4,358
140,113 Indicated All
27.00
1.42
38,324
1,232,145 Total Meas & Ind All
30.11
1.42
42,682
1,372,258 Inferred All
25.33
1.53
38,661
1,242,980 Total Resources All
55.44
1.47
81,343
2,615,238
Total Underground Mineral Resources Pickstone and Peerless Underground Mineral Resource Tabulation at a cut-off of 1.5 g/t
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide - - - - Indicated Oxide - - - - Total Meas & Ind Oxide - - - - Inferred Oxide - - - - Total Resources Oxide - - - -
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh - - - - Indicated Fresh
1.72
4.81
8,278
266,146 Total Meas & Ind Fresh
1.72
4.81
8,278
266,146 Inferred Fresh
4.80
4.40
21,105
678,527 Total Resources Fresh
6.52
4.51
29,383
944,673
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All - - - - Indicated All
1.72
4.81
8,278
266,146 Total Meas & Ind All
1.72
4.81
8,278
266,146 Inferred All
4.80
4.40
21,105
678,527 Total Resources All
6.52
4.51
29,383
944,673
Total Mineral Resources Pickstone and Peerless Mineral Resource Tabulation at a cut-off of 1.5 g/t for UG and 0.3 g/t for opencast
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Oxide
1.22
1.17
1,428
45,911 Indicated Oxide
10.08
1.06
10,725
344,817 Total Meas & Ind Oxide
11.30
1.08
12,153
390,728 Inferred Oxide
0.76
0.89
679
21,830 Total Resources Oxide
12.06
1.06
12,832
412,558
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured Fresh
1.89
1.55
2,930
94,202 Indicated Fresh
18.64
1.92
35,877
1,153,474 Total Meas & Ind Fresh
20.53
1.89
38,807
1,247,676 Inferred Fresh
29.37
2.01
59,087
1,899,677 Total Resources Fresh
49.90
1.96
97,894
3,147,353
Mineral Resource Category Reef Type Tonnes (million) Grade Au (g/t) Au (kg) Au (oz) Measured All
3.11
1.40
4,358
140,113 Indicated All
28.72
1.62
46,602
1,498,291 Total Meas & Ind All
31.83
1.60
50,960
1,638,404 Inferred All
30.13
1.98
59,766
1,921,507 Total Resources All
61.96
1.79
110,726
3,559,911
Table IV: Combined Mineral Resource estimate for the Pickstone-Peerless mineralised trends.

A 0.3 Au g/t cut-off has been applied for near surface (less than 250 m below surface) material respectively and a 1.5 g/t cut-off has been applied for material deeper than 250 m below surface respectively (tonnes and element kgs have been rounded-off to the appropriate level of accuracy). Delineation of Mineral Resource category was carried out in the first instance by recording the search volume number utilised in each block on a special run done for the purposes of categorising Mineral Resources.

The first search volume demarcated a potential Measured Mineral Resource model.

A search volume of 1.5 demarcated a potential Indicated Mineral Resource model and search volume greater than 1.5 demarcated potential Inferred Mineral Resources.

The search volumes are based on the relevant Au (g/t) variogram model for the relevant mineralised zone or corresponding "waste" zone.

The number of samples for each search volume was determined through kriging neighbourhood studies.

Final classification of Mineral Resources was based on a matrix of number of samples, search volume and kriging efficiency.

The cut-offs selected to declare the Mineral Resource estimates are 0.3 g/t for the Pickstone and Peerless open pitable Mineral Resources (to a depth of 250 m) and 1.5 g/t for underground Mineral resources at both the Pickstone and Peerless prospects.

The cut-offs are based on a combination of economic and technical assumptions from AFCR and values that are well within accepted industry norms for narrow tabular strata-bound or shear hosted gold deposits.

Tonnage has been estimated on a dry basis and been adjusted for mining voiding and geological losses.

Relative density calculated from drilling and dump sampling tests has been applied in the calculation of tonnage.

The Mineral Resource estimates reported in this section are based on validated data sets supplied by AFCR.

The Competent Persons have verified the final composite data accepted for the estimate.

All of the geological data used in the estimation process including data which determines the extent, continuity and disturbance of the mineralised horizons has been collected and collated by qualified and suitably experienced geologists, surveyors and other mineral resource practitioners employed currently and historically at the Pickstone-Peerless Project. ExplorMine Consultants is of the opinion that the Pickstone-Peerless Project are a Mineral Resource estimate meets the requirement of "reasonable prospects for eventual economic extraction" and in ExplorMine Consultants opinion is representative of the gold mineralisation.
1.5 Conclusions and Recommendations
This CPR is intended to fulfil two basic objectives: � To compile a JORC compliant Mineral Resource estimate for the Pickstone-Peerless Project area. � To guide management in the identification of potential mining and exploration target areas by providing an estimated three dimensional spatial expression to the estimated mineral resource.
This CPR and the technical work on which it is based provide a compliant Mineral Resource estimate.

An estimated three-dimensional block model has been constructed and can be used as a tool to guide future exploration and mine planning and decision making.

The status of Pickstone-Peerless Project is currently an advanced exploration property and AFCR completed a Mineral Reserve estimate in December 2013 based on the ExplorMine 30 June 2013 Mineral Resource estimate.

ExplorMine Consultants and AFCR geologists collectively have extensive experience in the geology of the Pickstone-Peerless Project area and Greenstone gold style of mineralisation and the estimation thereof.

The estimation was based on all available exploration and mining data.

A combination of recent and historic desurveyed surface drillhole intercepts, historic underground drilling and channel sampling, digitised mine development and stoping, geological mapping, trenching and detailed topography, were used in a complete first principles structural interpretation.

The Mineral Resource estimate presented in this Report for the various mineralised zones for the Pickstone and Peerless trends is based on the first principles structural model and surface drillholes, underground drilling and sampling represented by electronic databases.

The data was collected over a period of an extended period of time from the 1960s to present.

ExplorMine Consultants has performed its own assessment and validations on primary data, and considers the validity and quality of the data to be reasonable.

The data complies with acceptable standards and norms and is considered of sufficient quality for use in Mineral Resource estimates.

ExplorMine Consultants has in preparation of this Report on the Mineral Resource estimate collated and compiled a single comprehensive composite database comprising all relevant data.

Composite data has not been corrected for dip and therefore represents true intercept lengths.

Geological modelling recognises distinct geological zones in the both the Pickstone and Peerless mineralised trends.

These zones have been used as a basis for geostatistical modelling.

A block