GR016 MLC 3, MLC 6 to 14 (inclusive), MLC 19, MLC 43-44, MLC 125-126, MLC 128, MLC 156-157, MLC 507, MLC 509-510, MLC 519, and MLC 664-667 (inclusive) Peko Tailings Project Group Annual Report for the period 1 January 2018 to 31 December 2018

Abstract

Peko Bull's focus during 2018 has been on securing the funds required to complete a Definitive Feasibility Study (DFS) on the proposed tailings reprocessing plant. The Peko Tailings Reprocessing DFS is scheduled to take 18 months to complete, and would include the following scope: Additional optimization of the proposed flowsheet, including recovery and production rates. Additional drilling/sampling, to update the tailings resource to an indicated JORC resource. Detailed metallurgical testing, including thickening, grinding, floatation, flotation tail leaching, magnetic separation and flotation concentrate leaching tests, using samples from the above-mentioned drilling program. Detailed design, costing and EPC of the processing facility, to produce a capital and operating cost to a +/-15% level of accuracy. Marketing studies, including securing off-take MOUs. EIA studies. Market research into tolling opportunities with neighbouring mines/tailing dams. Page 5 of 5. Once the DFS has been completed, Peko Bull intends to utilize debt financing options to fund the construction of the processing facility, and bring the Tailings Reprocessing Plant into production.