Kalana

In 2016, the Kalana Gold Mine is scheduled to produce approximately 4,400 tonnes of material per month from a mix of underground production and surface stockpiles at an average grade of 6.4 g/t until the end of 2016. Following the cessation of underground mining, the Company plans to process surface stockpiles, which are estimated to contain 2,500 tonnes of material at an average grade of 6.7 g/t Au. As a result, Avnel is forecasting gold production of 8,600 ounces in 2016 from a total of 53,000 tonnes of material at an average grade of 6.4 g/t Au with a budgeted metallurgical recovery rate of 78%.