KIBARA

Introduction

Kibara Gold sarl (“the Company” or “Kibara”) has entered into a binding agreement with the Cooperative Minière Katoto (“the Cooperative”) over ZEA 698 (5 carees; ~4.5 km) in the Lualaba Province, DRC. The property area covers the Tshimbumbu gold workings which are currently exploited by artisanal miners under the direction and control of the Cooperative. CSA Global Pty Ltd (CSA Global) was commissioned by Kibara to conduct a site visit and comment on the geological setting of the gold mineralisation and provide and evaluation of prospectivity and exploration strategy.

Infrastructure and Access

The 360 km or so to Kolwezi consist of sealed bitumen roads. The following 250 km of the route is gravel roads and tracks. Travelling time from Lubumbashi airport to site varies between 9 to 12 hrs depending on weather conditions. Lubumbashi, and Kolwezi geographically closer, are the largest cities in former Katanga province, and the commercial hubs for mining operations activity in Katanga.

Geology and Structural Setting of the Property Area

Exposure and access to the bedrock geology in the project area is limited to the artisanal mining sites and a small number of subcrop that were located. The area is heavily forested and mostly covered with a layer of soil or laterite which can be several meters thick in places.

The workings expose lower saprolite after CSA_KMX_Thibumbu AU_Nov-17 Page 7 of 13 weathered meta-sedimentary and probably felsic intrusive rock. The bedrock is deeply oxidised, and leached and have a low rock strength that allows non-mechanised mining. Within the northern pit east-west-striking and steeply north, to sub-vertical dipping meta sedimentary rocks occur throughout. Internal diagnostic rock texture could not be determined confidently. However, the layering in the rock and the uniform grain size within the layers suggest a sedimentary origin.

Property Location

The name-giving Tshimbumbu village is located off the access route from Mutshatsha to the Zambian border and about 35 kms in a direct line from Mutshatsha the nearest bigger town (Figure 1). The town has a population of about 3,000 with the larger part of the population comprised of sub-subsistence farmers.