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Form 43-101F1

TECHNICAL REPORT

DYNASTY GOLDFIELD PROJECT

CELICA, LOJA PROVINCE

ECUADOR

Author:

Allen J Maynard, BAppSc (Geol), MAIG, MAusIMM


Al Maynard & Associates, Suite 9, 280 Hay St., Subiaco, WA, Australia
Email: al@geological.com.au

Date: October 22, 2014

Prepared for:
Dynasty Metals & Mining Inc.
#270 - 660 Burrard Street
Vancouver B.C. Canada V6C 2X8
Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

TABLE OF CONTENTS

1.0 SUMMARY ...................................................................................................................... 1


1.1 Introduction ....................................................................................................................... 1
1.2 Property Description and Location .................................................................................... 1
1.3 History, Exploration and Drilling ........................................................................................ 1
1.4 Geology and Mineralization ............................................................................................... 2
1.5 Mineral Resource Estimate ................................................................................................ 3
1.6 Critical Risk Factors ............................................................................................................ 4
1.7 Conclusions and Recommendations .................................................................................. 4
2.0 INTRODUCTION ............................................................................................................... 5
2.1 INTRODUCTION .................................................................................................................. 5
2.2 Terms of Reference ............................................................................................................ 5
2.3 Report Purpose .................................................................................................................. 5
2.4 Field Involvement .............................................................................................................. 5
2.5 Qualified Person Responsibilities....................................................................................... 5
2.6 Units, Currency and Rounding ........................................................................................... 6
2.7 Sources of Information and Data ....................................................................................... 6
3.0 Reliance on Other Experts ................................................................................................ 7
4.0 PROPERTY DESCRIPTION AND LOCATION ......................................................................... 8
4.1 Location.............................................................................................................................. 8
4.2 Tenure ................................................................................................................................ 8
4.3 Royalties, Rights and Encumbrances ................................................................................. 9
4.4 Environmental Permitting................................................................................................ 11
5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .... 13
5.1 Access............................................................................................................................... 13
5.2 Proximity to Population ................................................................................................... 13
5.3 Local Resources & Infrastructure..................................................................................... 14
5.4 Topography, Elevation and Vegetation ........................................................................... 14
5.5 Climate ............................................................................................................................. 14
5.6 Local Resources and Infrastructure ................................................................................. 15
6.0 EXPLORATION HISTORY ................................................................................................. 16
6.1 Prior Ownership ............................................................................................................... 16
6.2 Previous Exploration ........................................................................................................ 16
7.0 GEOLOGICAL SETTING AND MINERALIZATION ................................................................ 17
7.1 Regional Geology ............................................................................................................. 17
7.2 Local and Property Geology ............................................................................................. 19
8.0 DEPOSIT TYPES .............................................................................................................. 22
8.1 Deposit Model.................................................................................................................. 22
8.2 Alteration ......................................................................................................................... 22
8.3 Mineralization .................................................................................................................. 23

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9.0 EXPLORATION ............................................................................................................... 27


9.1 Exploration ....................................................................................................................... 27
9.2 Exploration Potential ....................................................................................................... 28
9.3 Adequacy of Exploration .................................................................................................. 28
10.0 DRILLING ....................................................................................................................... 34
10.1 Drilling .............................................................................................................................. 34
10.2 Sampling Method and Approach ..................................................................................... 34
11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY .......................................................... 37
11.1 Sample Methods .............................................................................................................. 37
11.2 Chemical Analysis Method............................................................................................... 37
11.3 Specific Gravity Measurements ....................................................................................... 38
11.4 Sample Security ............................................................................................................... 39
11.5 Sample Locations ............................................................................................................. 39
11.6 Adequacy of Sample Preparation, Security and Analytical Procedures .......................... 40
12.0 DATA VERIFICATION ...................................................................................................... 41
13.0 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................... 45
14.0 MINERAL RESOURCE ESTIMATE ...................................................................................... 46
14.1 Geological and Resource Modelling ................................................................................ 46
14.2 Method ............................................................................................................................ 46
14.3 Mineral Resource Estimate .............................................................................................. 47
15.0 ADJACENT PROPERTIES .................................................................................................. 52
16.0 OTHER RELEVANT DATA AND INFORMATION ................................................................. 53
17.0 INTERPRETATIONS AND CONCLUSIONS .......................................................................... 54
18.0 RECOMMENDATIONS .................................................................................................... 57
19.0 REFERENCES .................................................................................................................. 59
20.0 DATE AND SIGNATURE ................................................................................................... 60

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List of Figures
Figure 1: Dynasty Goldfield Project Location. .................................................................................. 10

Figure 2: Dynasty Project Concessions and Prospects Location Map. ............................................. 12

Figure 3: Access to Concessions. ...................................................................................................... 13

Figure 4: Simplified Geology of Ecuador (Derived from US Geological Survey OFR 97-470D). ....... 18

Figure 5: Simplified Structural Zones of Ecuador. ............................................................................ 19

Figure 6: Geology of Dynasty Concessions. ...................................................................................... 21

Figure 7: Veins at Cerro Verde. ........................................................................................................ 24

Figure 8: Veins at Trapichillo. ........................................................................................................... 25

Figure 9: Veins at Papayal. ............................................................................................................... 26

Figure 10: Drill Hole Locations.......................................................................................................... 30

Figure 11: Trench Sample Locations................................................................................................. 31

Figure 12: Photograph of Sampled Trench....................................................................................... 36

Figure 13: Plot of Standard 284 within +/- 3 SD. .............................................................................. 41

Figure 14: Plot of Standard 256 +/- 3 SD. ......................................................................................... 42

Figure 15: Plot of Standard 306 +/- 3 SD. ......................................................................................... 42

Figure 16: Plot of Duplicate Assays. ................................................................................................. 43

Figure 17: Plot of Blank Assays within +/- 3SD. ................................................................................ 43

Figure 18: Mineralised Zones in the Vicinity of Cerro Verde Project. .............................................. 52

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List of Tables

Table 1: Current Resource Estimate for Dynasty Goldfield Project. .................................................. 3

Table 2: Mining Concessions at Dynasty Goldfield. ........................................................................... 8

Table 3: Meteorological Data over 40 years. ................................................................................... 14

Table 4: Summary of Trenching and Drilling Completed at Dynasty Goldfield. ............................... 29

Table 5: Summary of Representative Drill Hole Intervals. ............................................................... 32

Table 6: Basic Statistics of Drill Hole Data. ....................................................................................... 32

Table 7: Summary of Representative Trench Samples..................................................................... 33

Table 8: Basic Statistics of Trenching Data. ...................................................................................... 33

Table 9: Test of Density in Quartz Veins and Waste Rock................................................................ 39

Table 10: Cut-off Grade Determination Zaruma Project. .............................................................. 46

Table 11: Current Vein Resource Estimates for the Dynasty Goldfield............................................ 51

Table 12: Current Resource Estimate Summary for the Dynasty Goldfield. .................................... 51

Table 13: Current Resource Estimate for Dynasty Goldfield Project. .............................................. 54

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1.0 SUMMARY
1.1 Introduction
This report has been prepared by Consulting Geologist, Mr. A.J. Maynard, BAppSC (Geol), MAIG,
MAusIMM. Mr. Maynard visited the project site in March 2005, February-March 2007 and
September 2007.

This Report was prepared at the request of Dynasty Metals & Mining Inc. (Dynasty or the
Company) and resulted from:

The aforementioned site visits; and


A review of geological and geophysical data, drill logs, technical reports and selected drill
core from exploration programs.

1.2 Property Description and Location


Dynasty, through its indirect wholly owned subsidiary, Elipe S.A. (Elipe), holds a portfolio of
exploration properties in Ecuador. Amongst these, Elipe has acquired the rights to seven mining
concessions in the Celica area which form the Dynasty Goldfield Project located in the Province of
Loja. These concessions have been the focus of a series of exploration programs since 1995.

The Dynasty Goldfield Project is located at the southern end of the Occidental Andean Cordillera,
25km from the Peruvian border to the south with central coordinates of latitude 04 07 south and
longitude 79 52 west. The town of Celica is about half an hours drive from the project.

Three concessions, PILO 9, ZAR and ZAR 1, are subject to a 1% Net Smelter Royalty (NSR) payable
to Minera Australiana, a related party, as part of contractual obligations agreed to when the
concessions were acquired by Dynasty. No royalties have been paid to-date as no extraction has
occurred on the Project. If the Project goes into production in the future, it may also be subject to
further royalties payable to the Ecuador Government in accordance with regulatory requirements
at that time.

1.3 History, Exploration and Drilling


The Spanish-Ecuadorian joint venture company, Enadimsa, claimed 1,350 hectares (ha) in the La
Zanja (Cerro Verde) area for exploration in 1977. During the 1970s and 1980s the United Nations
explored the Curiplaya area, 2 km east of the Dynasty Goldfield Project. Copper and gold were
detected in small quantities. During 199192, BHP Exploration Ltd. covered the general area with
concessions but the tenements eventually lapsed after minimal work. Between 2001 and 2003, a
private prospecting company, Ecuasaxon, undertook investigations in the general area and
discovered anomalous gold and silver in quartz-sulphide veins in what is now the concession area.

Since Dynasty acquired the project in 2003 until 2007, when the Ecuadorian Government
introduced an exploration moratorium, it has carried out geological mapping, sampling,

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geophysical surveys and diamond drilling. These works resulted in the identification of high grade
gold and silver vein systems in the Cerro Verde, Papayal and Trapichillo areas.

To date a total of 201 drill holes totalling 26,733.5 metres (m) have been completed by Dynasty, at
Cerro Verde and Papayal. A further 2,033 rock channel samples were taken from 1,161 surface
trenches at Cerro Verde, Iguana Este, Trapichillo and Papayal by the end of 2007.

The Ecuadorian Government introduced a Mining Mandate that came into effect in 2008 causing
delays in granting environmental licenses, permitting and other matters required before further
exploration can commence.

There has not been any significant mine production from any of the Dynasty concessions.

1.4 Geology and Mineralization


The Dynasty Goldfield Project is part of the larger Dynasty Copper-Gold Belt extending north from
Peru. The Dynasty Copper-Gold Belt lies within the compressional Inter-Andean Graben that is
bounded by regional scale faults. The graben is composed of thick Oligocene to Miocene volcano-
sedimentary sequences that cover the Chaucha, Amotape and Guamote terrains. This structural
zone hosts several significant epithermal, porphyry, mesothermal, S type granitoid, VHMS and
ultramafic/ophiolite precious metal and base metal mineral deposits.

The western side of the Dynasty concessions include volcanic rocks (breccias and andesitic lavas)
belonging to the Cretaceous to Palaeocene Pisayambo Volcanics and Celica Formation which has
been intruded sporadically by diorite dykes and slightly argillic gold bearing quartz veins and
veinlets with occasional calcite-barite veins to the south, southeast and west. As many as 110
mineralised veins of varying thicknesses and without preferred orientation have been identified to
date in the Dynasty Goldfield Project. The vertical extent of these veins has not yet been fully
tested but some veins could exceed 400 m.

The mineralised veins in the volcanics mainly occur along a faulted zone near and sub-parallel to
the contact with the Cretaceous Tangula Batholith outcropping in the east and south of the
concessions that extends north from Peru. Within the batholith, the quartz veins appear to have
little depth extent.

The mineralised faults have undergone post mineralization reactivation by a northeast fault
system that displaced the earlier veins by up to a few metres. A major north east lineament with
crosscutting features at 90 angle possibly indicates strike slip shears with sinistral stress that
could have generated open spaces for the infilling quartz-sulphide vein systems.

A porphyry intrusion hosting gold, silver and some base metal mineralization has also been
mapped at Trapichillo (Bravo, 2005).

Three mostly steeply dipping vein systems have been identified to date at Papayal (2.2 km x 2.0
km), Cerro Verde (1.4 km x 1.0 km) and Trapichillo - Cola (2 km x 2.5 km). Individual veins have

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been mapped continuously for up to 2,000 m along strike and remain open at depth beyond the
current drilling.

The mineralised veins are principally open space fillings along dilational faults. Banded seams
consisting of quartz and sulphides occur especially at Cerro Verde along with massive quartz veins
containing disseminated sulphides. The mineralised veins have a low carbonate content at
Papayal, Trapichillo and Cola, while quartz veins coexist with quartz - barite - calcite, and barite
being replaced by silica at Cerro Verde and part of Trapiche Labrado.

Gold occurs in its native form along with sulphides, including pyrite, sphalerite, galena,
arsenopyrite, chalcopyrite and bornite.

The gold/base metal mineralization is restricted to the veins and stockworks with associated
argillic alteration. North-south mineralization zoning has been interpreted. The gold and silver
grades vary along strike and across the vein width with "ore shoots" or "high grade pipes"
producing very erratic values up to 600 grams per tonne (g/t) Au and 750 g/t Ag in some veins at
Trapichillo and Papayal. A total of 74 veins have been identified between Cerro Verde - Yaraco-
Trapichillo and Quebrada Trapiche Labrado of which 67 average >2 g/t Au. Seven potentially
economic veins were identified at Papayal and five further veins with grades >6 g/t Au at
Trapichillo.

1.5 Mineral Resource Estimate


Dynasty has utilised the sampling results from 967 trenches and 152 drillholes in the Dynasty
Goldfield Project collected between 2003 and 2008 to estimate the project resource. The QA/QC
protocols followed by Dynasty while sampling the drill core and trenches met industry standards
and indicated that the sampling and assays are accurate and unbiased. In the opinion of the
author, the sampling data is sufficient and adequate for the purposes used in this Report including
resource estimation.

The resource was estimated using GEMCOM software and verified by non-software and other
software (MineMap) based methods. Table 1 contains the current mineral resource estimate for
the Dynasty Goldfield Project.

Tonnes Au Ag Contained Au Contained Ag


Category (Thousands) (g/t) (g/t) (1,000 ozs) (1,000 ozs)
Measured 2,909 4.7 38.1 437 3,567
Indicated 3,958 4.6 38.8 585 4,936
Total Measured + Indicated 6,867 4.6 38.5 1,022 8,504
Inferred 7,825 4.4 39.4 1,118 9,901
Note: Lower cut-off grade of 2.0 g/t Au.

Table 1: Current Resource Estimate for Dynasty Goldfield Project.

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1.6 Critical Risk Factors


The most significant risks associated with the Project are resource risks, risks inherent in
exploration and mining, poor access to mining areas as a result of remoteness and difficult terrain
and sovereign risk bought about through changes in government or major changes in government
policy, laws and regulations, which are common to most mining projects in South America.

1.7 Conclusions and Recommendations


It is the authors opinion that the property merits further exploration and that Dynasty develops a
further exploration program.

No exploration program is planned by Dynasty until uncertainties associated with Ecuador's


proposed new Mining Law have been resolved. The following cost estimate is based upon a drilling
program that would involve:

80 diamond drill holes for approximately 5,150 m at Trapichillo and Iguana Este over a
total area of approximately 4 km2.
20 diamond drill holes for approximately 1,350 m at Papayal Norte over an area of
approximately 1 km2.

This conceptual exploration program would take approximately 3.5 years to complete.

3.5 YEARS EXPLORATION BUDGET - TRAPICHILLO AND PAPAYAL NORTH


DYNASTY PROJECT
Indiv. Cost Unit Cost Time Total
Quantity Unit Description
(USD $) (USD $) (years) (USD $)
6,500 m Drilling (80 drill holes) $180/m 180 3.5 $ 1,170,000.00
950 samples Drill core assays $ 34/sample 34 3.5 $ 32,300.00
1,100 m Trenches $20/m 20 2.0 $ 22,000.00
800 samples Trench samples assays $ 34/sample 34 2.0 $ 27,200.00
Camp and core storage $ 15,000 15,000 0.4 $ 0.00
Environment &
$ 1,000/month 1,000 3.5 $ 0.00
Rehabilitation
Social Programme $ 50,000 50,000 3.5 $ 0.00
Administration and
$ 8,000/month 8,000 3.5 $ 0.00
Contingencies
SUBTOTAL $ 1,251,500.00
Ecuadorian Taxes (12 %) $ 150,180.00
TOTAL $ 1,401,680.00

Depending on results obtained by this exploration program, the Company may be able to proceed
towards conducting a preliminary economic assessment (PEA) to determine the potential
economic viability of the Project.

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2.0 INTRODUCTION
2.1 INTRODUCTION
Dynasty was incorporated under the Business Corporations Act (Yukon) in 2000. Its common
shares are listed and posted for trading on the Toronto Stock Exchange under the symbol DMM.

2.2 Terms of Reference


The author of this Report has been requested by Dynasty to update the technical report entitled
Independent Geological Evaluation Dynasty Goldfield Project, Celica, Loja Province, Ecuador by
A.J. Maynard dated October 30, 2007 (the 2007 Report). The Dynasty Goldfield Project is not
currently a property material to Dynasty and there is no current intention by Dynasty to further
explore and develop the Project.

2.3 Report Purpose


This report is to be submitted to applicable Canadian securities regulatory authorities and is to be
used by the Company for further exploration and to potentially proceed towards a preliminary
economic assessment.

2.4 Field Involvement


The author visited the project site and offices of the Company between 11th and 13th March,
2005, between February 27 and March 3 of 2007 and between 24th and 28th September of 2007.
Discussions were held with responsible personnel and data reviewed pertaining to geology,
mineral resource estimation and environmental issues.

As there has been no further exploration work undertaken by Dynasty since 2008 and the
Company has advised that it has no current exploration or mining plan for this Project, the author
determined that a more recent personal inspection was unnecessary.

2.5 Qualified Person Responsibilities


Mr. Maynard has worked as a geologist in the field of mineral exploration continuously for the last
35 years in Australasia, North and South America, Africa, China and south-east Asia, eastern and
western Europe, Wales, Ireland and Greenland. He is a graduate of Curtin University in the State of
Western Australia and obtained a Bachelor of Applied Science, majoring in Geology, in 1978
(Certificate No. 10534).

The author of this Report has no beneficial interest in Dynasty and is not an insider, associate or
affiliate of Dynasty. The results of this Technical Report are not dependent on any prior
agreements concerning the conclusions to be reached, nor are there any undisclosed
understandings concerning any future business dealings between Dynasty and the author. The
author is being paid a fee for his work in accordance with normal professional consulting practice.

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The author of this report, by virtue of his education, experience and professional association, is
considered an independent qualified person (QP) as defined by NI 43-101, and is a member in
good standing of an appropriate professional institution.

2.6 Units, Currency and Rounding


Unless otherwise specified or noted, the units used in this Technical Report are metric. Ounces
(oz) refer to troy ounces. Every effort has been made to clearly display the appropriate units being
used throughout this Technical Report. Currency is in United States dollars ($) unless otherwise
noted.

This Report includes technical information that required subsequent calculations to derive
subtotals, totals and weighted averages. Such calculations inherently involve a degree of rounding
and consequently introduce a margin of error. Where these occur, the QP does not consider them
to be material.

2.7 Sources of Information and Data


The main sources of information in this report are:

Information provided by Dynasty staff;


Historic reports by prior owners detailed in the section entitled References; and
Previous NI 43-101 documentation, primarily the 2007 Report.

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3.0 RELIANCE ON OTHER EXPERTS


In preparing this Technical Report, the author has relied substantially upon the data supplied to
him by Dynasty with respect to legal, political and environmental information in formulating his
opinion and conclusions, augmented by direct field examination.

The portions of the Technical Report to which such reliance applies include Item 4.0 (in respect of
ownership and permit details, title, royalties and other rights affecting the project and
environmental matters) and Item 6.0 (in respect of prior ownership details). The information is
considered by the author to be accurate.

The agreements under which Dynasty holds title to the concessions for these projects have neither
been investigated nor confirmed by the author. The author has not carried out any independent
exploration work, drilled any holes nor carried out any sampling and assaying.

The author considers the Report to be a true and accurate representation of the exploration
potential of the Dynasty Goldfield Project.

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4.0 PROPERTY DESCRIPTION AND LOCATION


4.1 Location
The Dynasty Goldfield Project is located at the southern end of the Occidental Andean Cordillera,
25km from the Peruvian border with central coordinates of latitude 04 07 south and longitude
79 52 west (Figure 1 and Figure 2). The town of Celica is about half an hours drive from the
project.

4.2 Tenure
The Dynasty Goldfield Project comprises seven un-surveyed concessions covering a total area of
21,909 ha.

The mining concessions were acquired between 2001 and 2004 and are held 100% by Elipe.
Table 2 below gives details of the concessions held by Elipe. The Dynasty Goldfield Project is
comprised of two gold mineralised porphyry-style systems associated with large quartz-sulphide
vein swarms and stockworks, named the Cerro Verde and Papayal systems. The main mineralized
deposit is located at Cerro Verde within the Pilo 9 and Zar 1 concessions.

Area
No Concession ID Code (Ha) Registration Transfer Expiry
1 Pilo 9 600242 2,000 17-Oct-01 10-Apr-03 17-Oct-31
2 Zar 600331 2,800 07-Dec-01 14-Apr-03 07-Dec-31
3 Zar 1 600353 1,900 06-Dec-01 10-Apr-03 06-Dec-31
4 Zar Dos A 600774 4,700 12-Dec-03 na 12-Dec-33
5 Zar Tres A 600775 4,659 12-Dec-03 na 12-Dec-33
6 Cruz 600863 3,300 18-Oct-04 na 18-Oct-34
7 Quiara 2 600897 2,550 09-Dec-04 na 09-Dec-34

Table 2: Mining Concessions at Dynasty Goldfield.

The concession boundaries are based on map grid coordinates and are not surveyed.

All known mineralised zones, mineral resources, mine workings, existing tailing ponds, waste
deposits and important natural features and improvements described in this report are wholly
located within the boundaries of the Companys concessions listed in Table 2.

Mineral rights in Ecuador are held by individuals or corporations as mining concessions upon
application to, in the form mandated by regulation, and approval by the Government.

A mining concession may not exceed 5,000 contiguous mining hectares, a mining hectare having
a dimension of one hectare on the surface and, conceptually, continuing vertically to the center of

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the earth, thus having a wedge-shape in the vertical dimension. A mining concession has a term of
duration of up to 30 years, and will be automatically renewed for equal periods, providing that
before expiration a written notice of intention to renew shall be made by the concession holder.

Only the following are valid reasons for the extinction of a mining concession:

completion of the term of the concession, no notice of intention to renew being given;
reduction or abandonment at the discretion of the concession holder; and
failure to pay the concession fees.

4.3 Royalties, Rights and Encumbrances


Three concessions, PILO 9, ZAR and ZAR 1, are subject to a 1% Net Smelter Royalty (NSR) payable
to Minera Australiana, a related party, as part of contractual obligations agreed to when the
concessions were acquired by Dynasty. No royalties have been paid to-date as no extraction has
occurred on the Project. If the Project goes into production in the future, it may also be subject to
further royalties payable to the Ecuador Government in accordance with regulatory requirements
at that time.

Under Ecuador mining law the holders of mining concessions may install such infrastructure as
they require, including but not limited to processing plants, smelters and refineries, providing that
those plants are on the concession and only process minerals from the concession on which they
are situated.

Ecuadorian Mining Law states that concession holders have an implied right to use water and the
right to benefit from any easements. Holders of mining rights may alter the course of rivers, as
long as it does not affect third parties and as long as it is done with authorisation from the
National Council of Water Resources.

The Dynasty Goldfield concessions give the Company the right to mine the subsurface but not the
surface minerals which belong to local residents. The Company may purchase this land at a fair
price agreed with the owners or may negotiate access.

To retain the property under the Ecuadorian Mining Law requires:

payment of an annual conservation fee per hectare;


an annual environmental update report for the concessions including details of the
environmental protection works program to be followed for the following year. These
works do not need approval;
an annual report on the previous years exploration activity.

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Figure 1: Dynasty Goldfield Project Location.

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4.4 Environmental Permitting


Before exploration work can commence on mining concessions in Ecuador, the Ministry of Energy
and Mines must approve an Environmental Management Plan covering the coming years
exploration program. Dynasty currently has no proposed exploration and drilling programs
planned for the Dynasty Goldfield Project and will have to obtain all necessary permits if it seeks to
re-commence such activity at the project in the future. The concessions have also been registered
with the Property Registry.

An Environmental Management Plan aims to mitigate any impacts that may affect the
environment by conserving the natural environment and remaining in harmony with the socio-
economic development of villages influenced by the operation of a plant.

A Management Plan for a mining operation would include the following management details:

1. Description of the project and the environmental means to be applied, including:

(a) Protection of natural elements and native communities;


(b) Prevention and control of contamination, deforestation, erosion and sedimentation;
(c) Follow-up and monitoring;
(d) Rehabilitation and restoration of natural elements;
(e) Maintenance of infrastructure;
(f) Emergency and contingency plans;
(g) Mitigation of any negative impacts; and
(h) Compensation to persons or communities negatively affected by the project.

2. Chronology of planned activities.

3. Maps showing locations of planned activities and infrastructure.

4. Waste treatment strategies.

5. Evaluation that the stated program from exploration through to mining and eventual mine
closure complies with all the relevant laws and regulations.

6. Environmental Impact Studies for the stages of exploitation, design, construction, operation
and dismantling.

7. Environmental training and education programs for employees.

The implementation of these programs will be carried out through the Companys technical,
administrative staff and field workers.

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Figure 2: Dynasty Project Concessions and Prospects Location Map.

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5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES,


INFRASTRUCTURE AND PHYSIOGRAPHY
5.1 Access
The most important access roads in the area are:

The Pan-American Highway which links Loja with Catacocha to the north and Macar to
the south;
The Machala-Pias-Loja road which connects the Provinces of Loja and El Oro; and
The Loja-Zamora-Gualaquiza road which connects Loja with the Province of Zamora
Chinchipe.

The paved Pan American Highway traverses the length of the concessions and thence access is
gained via gravel roads and footpaths on steep hills in certain areas. The steep topography with
deeply incised river valleys means that transport can be difficult in areas not serviced by pre-
existing tracks and roads. The steep topography however makes future portal access to the
underground mineralization relatively simple.

Figure 3: Access to Concessions.

5.2 Proximity to Population


The area covered by the concessions is generally lightly populated with only a few widely scattered
small villages. The nearest town is Celica, approximately 6 km away by road (Figure 2). The closest
city is Loja, about 120km to the east by road. The local village, La Zanja, has a small general store
but few other amenities. Each of these areas could provide a labour pool, as necessary.

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There are no informal miners on the concessions.

5.3 Local Resources & Infrastructure


Small local airports are located at Loja (La Toma), Machala, Macar and Gualaquiza connecting
with the larger airports at Quito, Guayaquil and Cuenca.

Electricity for any future mining operations would need to be generated on site and water would
need to be sourced from the local rivers.

The concessions provide sufficient surface and access rights for mining operations and suitable
areas for any potential tailings storage areas, potential waste disposal areas, heap leach pad areas
and potential processing plant sites should mining commence, however formal studies on these
items has not been undertaken given that the project is still in the initial exploration phase.

5.4 Topography, Elevation and Vegetation


The terrain is moderately steep and sparsely vegetated with low acacia scrub incised by shallow
ephemeral river beds that are typically dry. The elevation ranges from 1,830m in the northeast of
the project area down to 1,100m on the south-eastern edge of the concessions. Slopes are mainly
moderately steep, with an average grade of 20% while some intervening slopes are locally as steep
as 30%.

5.5 Climate
The climate is described as dry equatorial with medium temperatures and low rainfall with little
seasonal variation in temperature and rainfall. Table 3 below summarises meteorological
information obtained over a forty year span at two meteorological stations located 5 km and
15 km from the project.

Temperatures Mean Maxima 16.9 C


Mean Minima 14.2 C
Daily Mean 15.3 C
Rainfall 1,180 mm/year (at Celica, 5km distant)
1,369 mm/year (at Alamor,15km distant)
Average Humidity 90%
Cloudiness 3.2 eighths
Average Wind Velocity 0.8 km/h
Table 3: Meteorological Data over 40 years.

The climate is amenable for year round exploration and mining activities.

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5.6 Local Resources and Infrastructure


The location of Loja with population of approximately 170,000 approximately 100km by road from
the Project area and numerous small villages and towns could provide both the labour force and
all other facilities a mining operation needs, e.g. hotels, food supply, material supplies,
communication resources, public security and government institution representatives. A strong
mining background for the district guarantees skilled workers for underground mining and the
availability of basic mining-related material in the Project area. Several rivers could be dammed to
supply adequate fresh water for mining operations throughout the year.

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6.0 EXPLORATION HISTORY


6.1 Prior Ownership
In 1977 a Spanish-Ecuadorian joint venture company, Enadimsa, claimed 1,350 ha in the La Zanja
(Cerro Verde) area for exploration. During 199192, BHP Exploration Ltd. covered the general area
with concessions but the tenements eventually lapsed. Minimal work was carried out in the
Dynasty area by BHP, having focused their efforts on other areas in Ecuador.

6.2 Previous Exploration


During the 1970s and 1980s the United Nations explored the Curiplaya area, 2 km east of the
Dynasty Goldfield Project. The group drilled a total of 13 holes. Copper and gold were detected in
small quantities. Between 2001 and 2003, a private prospecting company, Ecuasaxon, undertook
investigations in the general area and discovered anomalous gold and silver in quartz-sulphide
veins in what is now the concession area.

Results from historical exploration were not used in calculating the mineral resource estimates
contained herein.

There has not been any significant mine production from the Dynasty concessions.

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7.0 GEOLOGICAL SETTING AND MINERALIZATION


7.1 Regional Geology
The Dynasty Goldfield Project is part of the larger Dynasty Copper-Gold Belt extending north from
Peru.

Subduction of the Pacific Ocean Nazca Tectonic Plate beneath the South American continent has
produced crustal deformation forming the Andes mountain range over the last 25 million years
(Figure 4). The resultant compressional forces have produced several Tertiary and Quaternary
tectonic basins along major regional faults that cut both the Pacific and Amazonian piedmonts and
the Andean range itself (Figure 5).

The Dynasty Copper-Gold Belt lies within the compressional Inter-Andean Graben that is bounded
by regional scale faults. The graben is composed of thick Oligocene to Miocene volcano-
sedimentary sequences that cover the Chaucha, Amotape and Guamote terrains. This structural
zone hosts several significant epithermal, porphyry, mesothermal, S type granitoid, VHMS and
ultramafic/ophiolite precious metal and base metal mineral deposits.

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Figure 4: Simplified Geology of Ecuador (Derived from US Geological Survey OFR 97-470D).

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Figure 5: Simplified Structural Zones of Ecuador.

7.2 Local and Property Geology


The western side of the Dynasty concessions include volcanic rocks (breccias and andesitic lavas)
belonging to the Cretaceous to Palaeocene Pisayambo Volcanics and Celica Formation (Figure 6).
The Celica Formation volcanics are highly fractured and composed of monolithic volcanic breccia,
green andesite and some sub-volcanic andesite. This unit is intruded sporadically by diorite dykes
and slightly argillic gold bearing quartz veins and veinlets with occasional calcite-barite veins to the
south, southeast and west. As many as 110 mineralised veins of varying thicknesses and without

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preferred orientation have been identified to date in the Dynasty Goldfield Project. The vertical
extent of these veins has not yet been fully tested but some veins could exceed 400 m.

The mineralised veins in the volcanics mainly occur along a faulted zone near and sub-parallel to
the contact with the Cretaceous Tangula Batholith outcropping in the east and south of the
concessions. The Tangula Batholith is believed to be a northern extension of the large batholith
forming coastal Peru. Within the batholith, the quartz veins appear to have little depth extent.

The mineralised faults have undergone post mineralization reactivation by a NE fault system that
displaced the earlier veins by up to a few metres. A clear example of this shift is recorded in a
dominant vein in the NE sector of Cerro Verde called La Foto.

A wide circular structure is located north and west of the neighbouring Casas Quemadas which
forms the Yaraco and Cola valleys.

The Catamayo River, in the west of the Dynasty concessions, follows a north east lineament with
tributaries converging at a 90 angle possibly defining a structural strike slip with sinistral stress.
This dilational stress shearing could have generated open spaces for the infilling quartz-sulphide
vein systems.

In the Lucarqui area, at the beginning of the Papayal and Trapichillo track, a microdiorite with
numerous magnetite and epidote filled fractures is exposed that is interpreted to be a possible
late igneous event unrelated to the Tangula Batholith.

A porphyry intrusion hosting gold, silver and some base metal mineralization has also been
mapped at Trapichillo (Bravo, 2005).

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Figure 6: Geology of Dynasty Concessions.

See Item 8.3 for mineralization information.

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8.0 DEPOSIT TYPES


8.1 Deposit Model
The Dynasty Goldfield mineral deposits are typical of plate boundary tectonic zones.

Extensive epithermal gold/silver vein systems were formed by late stage hot acidic sulphur rich
hydrothermal solutions, under intense pressure from the nearby batholith, being forced along
dilational faults and fractures. The mineralized solutions reacted with the volcanics resulting in
the precipitation of quartz with variable barite and sulphide minerals along with gold and silver.
These veins range in thickness from 15 cm to 1.6 m, are easily identifiable in surface outcrops, and
have multiple strike orientations and variable dips. To date 110 quartz veins hosting gold
mineralization have been identified. These epithermal veins make up all the reported resources at
the Dynasty Goldfield.

A younger low grade Cu-Au mineralised porphyry has been identified at La Zanja, Trapiche Labrado
and west of Trapichillo. Drilling by Dynasty at Trapiche Labrado produced intersections up to 103
m @ 0.2% Cu and 0.5 g/t Au. Mapping and sampling at La Zanja has identified significant rock-chip
Cu anomalies and widespread sericitic alteration.

8.2 Alteration
The dominant argillic alteration associated with the mineralization occurs along the vein margins
as haloes, from a few centimetres to about 4 m thick, with feldspars altered to ilite, kaolinite and
epidote. Only a few veins show abrupt transition from the quartz vein to the propylitic zone.
Sericitic alteration fringes are hardly determinable. Most of the quartz veins are banded comb
type, crustiform, and porous. The gold and base metal mineralization is located on the edges of
the comb textures and within the outer bands in the banded quartz having formed during the
latter phases. Some pale weathered adularia is found along the edge of the Esperanza, La Foto
and Venado veins.

The andesite and green breccia host rocks are almost unaltered with only a weak chlorite
alteration, typical of deuteric regional alteration. Brecciated and tectonic shear zones in the
andesites, near the Catamayo River and along the paved road, exhibit minor epidote and
hydrothermal alteration.

At Cerro Verde and Trapiche Labrado Creek a widespread prophyllitic halo is distinguishable,
apparently associated with a diorite intrusion located to the south of the mineralised zones.

Between Trapiche Labrado and La Zanja there is widespread sericitic and argillic alteration
associated with quartz veinlets and stockworks with abundant silicified boulders along La Zanja
Creek.

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8.3 Mineralization
Three mostly steeply dipping vein systems have been identified to date: Papayal (2.2 km x 2.0 km),
Cerro Verde (1.4 km x 1.0 km) and Trapichillo - Cola (2 km x 2.5 km). Individual veins have been
mapped continuously for up to 2,000 m along strike and remain open at depth beyond the current
drilling (Figure 7 to Figure 9).

The mineralised veins are principally open space fillings along dilational faults. Banded seams
consisting of quartz and sulphides occur especially at Cerro Verde along with massive quartz veins
containing disseminated sulphides. The mineralised veins have a low carbonate content at
Papayal, Trapichillo and Cola, while quartz veins coexist with quartz - barite - calcite, and barite
being replaced by silica at Cerro Verde and part of Trapiche Labrado.

Gold occurs in its native form. Sulphides, in roughly decreasing order of abundance, are as
follows:

iron as pyrite
zinc with variable iron as sphalerite
lead as galena
arsenic as arsenopyrite
copper as chalcopyrite
copper as bornite

The gold/base metal mineralization is restricted to the veins and stockworks with associated
argillic alteration. A black silver mineral occurs sporadically in the more northern areas of the
Papayal 5 vein. Traces of malachite and neotocite have been identified within the argillic alteration
zones along Trapiche Creek and in some peripheral veins south of Papayal 1. Sphalerite is very
scarce except in the distal Papayal 3 and 5 veins.

North-south mineralization zoning has been interpreted with a more epi-mesothermal system in
the south becoming more epithermal and low sulphur towards the north at Trapiche Labrado. The
galena and sphalerite content increases towards the NE towards Papayal. Chalcopyrite and
covellite are rare but found throughout the entire district however copper does not represent an
economic target.

The gold and silver grades vary along strike and across the vein width with "ore shoots" or "high
grade pipes" producing very erratic values up to 600 g/t Au and 750 g/t Ag in some veins at
Trapichillo and Papayal. The distribution of values at Cerro Verde is more even, averaging between
5 g/t Au and 35 g/t Ag in almost all the veins, however the "mineralised pipes" have a greater
length and depth than at Trapichillo and Papayal.

A total of 74 veins have been identified between Cerro Verde - Yaraco-Trapichillo and Quebrada
Trapiche Labrado of which 67 average >2 g/t Au. Seven potentially economic veins were identified
at Papayal and five further veins with grades >6 g/t Au at Trapichillo.

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Figure 7: Veins at Cerro Verde.

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Figure 8: Veins at Trapichillo.

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Figure 9: Veins at Papayal.

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9.0 EXPLORATION
9.1 Exploration
Dynasty commenced exploration within the project area after it acquired the rights to the
concessions in 2003 using staff employed by the Company. This work consisted of geological
mapping, trenching, channel sampling of trenches, geochemical soil and geophysical surveys and
diamond drilling with the aim of identifying mineralised vein systems. Dynasty was successful in its
preliminary exploration efforts having discovered twelve mineralised vein systems at Papayal,
Cerro Verde and Trapichillo-Cola (Figure 7 to Figure 9).

Drilling commenced in 2005 and by the end of 2006 a total of 58 drill holes for 2,602m had been
completed in the Papayal and Cerro Verde project areas. The most important veins recognized
were Papayal 1, Papayal 3, Papayal 5, La Esperanza, Los Encuentros, La Gorda and La Foto. These
veins are within a NE SW trending zone approximately 11 km long by 3 km wide that includes
swarms of massive quartz, quartz-calcite and quartz-calcite-barite-siderite veins with varying
amounts of sulfide. These veins are typical epithermal veins, commonly crustiform with combs and
sporadic banding.

Between 2006 and 2008 a further 143 drill holes were completed for 24,131m at Cerro Verde and
north Papayal. At least 45 veins were identified in this drilling program with the most important
veins being the Iguana, Flaca, Encuentros 2, Picos, Clavo, Foto Sur, Kaliman, Venado, Barita and
Larga.

The best gold and silver intersections were obtained at Cerro Verde and Yaraco along with
significantly improving grades towards the north of Papayal.

There has been no further drilling or exploration at Dynasty Goldfield since February 2008.

A total of 2,033 rock channel samples were taken from 1,161 surface trenches at Cerro Verde,
Iguana Este, Trapichillo and Papayal by the end of 2007 (Table 4). Significant drilling and trenching
results are summarized in Table 5 to Table 8.

Dynasty's exploration field work began with recognizing surface outcrops of altered rocks,
structures, veins and mineralization. Once a vein outcrop/target has been selected, detailed
geological mapping was carried out together with structural and positioning observations.

In terms of Dynasty's trenching protocol, after a surface vein outcrop was mapped and technically
recorded, several photographs were taken from different angles. The trench is carefully planned
always perpendicular to the vein strike. Trenches can be made manually or using an excavator
depending on the access facility. Manual trenches (pick and shovel) have been the more
appropriate and easy exploration surface works being developed in the concession areas. They
have been extremely useful and providing accurate, solid and abundant data.

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A trench is planned after general geological and geochemical sampling has been carried out, and
after having obtained the corresponding surface land permits and fulfilling all environmental
requirements. The trench is designed in a manner such that there will be minimum impact to soil
and agriculture.

After starting a trench program in a specific location (vein), a differential GPS landmark is set to
have a topographical control to tie all exploration works/sampling using tape and compass or total
station. In places where no differential GPS land marks where located, a normal GPS location UTM
PSAD56) was used.

A trench is an elongated pit of about 1.2 m wide and 1.5 m to 3 m deep, dug until finding fresh
rock of the target of interest or vein/structure. Trenches along structures such as veins are
designed with 25 m (majority) to 50 m spacing along vein strike. They are dug by hand using picks
and shovels and manpower. The organic surface layer is segregated, as well as each single soil
horizon (A, B, C), in order to conduct appropriate reclamation afterwards.

Once the structure/vein is clearly exposed in the trench, all technical measurements and
recordings are executed. UTM coordinates (usually PSAD 56 for Ecuador) at the beginning of the
trench plus direction and sampling distances; elevation, vein bearing and dipping, geological,
mineralogical and petrographical observations, photographs, etc.

The trench depth depends on the soil cover and also the topographical location of the exploration
point. Normally flat or valley sectors have a thicker soil layer (up to 3 m) than those located in
higher elevations. Watershed lines normally show outcropping solid rock.

Once the trench is completely clean and the structure/vein exposed clearly, a perpendicular
channel of about 5 cm wide x 5 cm deep is constructed with a portable saw or using chisel and
hammer. One or several samples of about 1 m length or less are collected from the structure/vein
taking care to avoid contamination. The vein foot and hanging walls are also sampled if they show
evidence of mineralization such as quartz veinlets. Each sample normally weighs about 5 to 6 kg.
The aim is to sample the totality of the mineralized rock, but when sample is bigger that the
specified weight then an in situ riffling is executed to obtain a representative sample. The
remaining sample material is normally used to replicate samples (duplicates).

9.2 Exploration Potential


Good exploration potential exists at the Dynasty Goldfield Project for new vein discoveries,
extending known veins and exploring for porphyry Style mineralization and mineralized breccias.
There are reasonable prospects that further exploration and drilling programs could add to the
known mineralization, and potentially add to the mineral resource inventory.

9.3 Adequacy of Exploration


In the opinion of the author, the exploration programs completed to-date by Dynasty were
appropriate for the known deposit types and mineralization styles and have delineated significant

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goldsilver mineralization and, if continued, will continue to develop the exploration potential of
the Project.

TRENCHES
Sector Trenches Metres Samples
Cerro Verde, Iguana East and Trapichillo 1,119 4,078 1,366
Papayal 42 2,973 667
TOTAL 1,161 7,051 2,033

DRILL HOLES
Sector Holes Metres Samples
Cerro Verde 175 23,734 1,392
Papayal 26 2,999 257
TOTAL 201 26,733 1,649

Table 4: Summary of Trenching and Drilling Completed at Dynasty Goldfield.

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Figure 10: Drill Hole Locations.

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Figure 11: Trench Sample Locations.

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HOLE From To Length* Approximate SAMPLE Au Ag Cu Pb Zn


ID (m) (m) (m) Depth (m) ID g/t g/t ppm ppm ppm
DDH103 99.80 101.00 1.20 89 D1606273 35.33 160.0 1,136 183 2,637
DDH05 7.25 8.25 1.00 7 0806192 40.50 1,835.0 412 4,990 780
DDH153 58.00 58.89 0.89 50 D1406416 45.40 7.2 135 108 143
05DDH53 193.91 194.57 0.66 168 D0806647 57.90 21.7 59 101 86
DDH059 60.75 61.70 0.95 53 D0206386 27.80 11.4 95 348 392
DDH084 35.20 35.74 0.54 31 D0206542 48.80 51.2 90 678 294
DDH103 101.00 102.20 1.20 88 D1606274 21.53 84.8 803 161 1,105
DDH084 27.00 27.80 0.80 23 D0206537 30.00 29.0 67 149 68
DDH144 27.30 29.65 2.35 24 D1606427 9.62 45.5 311 852 353
DDH121 84.35 85.60 1.25 73 D1406281 18.07 29.9 57 475 232

*Intersection width which may be significantly longer than true width.

Table 5: Summary of Representative Drill Hole Intervals.

Length*
HOLE (m) Au g/t Ag g/t Cu ppm Pb ppm Zn ppm
Maximum 8.55 57.90 1,986 15,400 30,100 34,100
Minimum BD BD BD BD BD BD
Average 1.29 1.163 11.5 215 274 323
Median 1.00 0.263 1.7 71 33 91
Mode 1.00 0.003 0.1 35 3 40
Standard Deviation 0.81 2.840 60.2 591 1,224 1,271
*Intersection width which may be significantly longer than true width
BD = Below detection

Table 6: Basic Statistics of Drill Hole Data.

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TRENCH FROM TO Length* SAMPLE Au Ag Cu Pb Au


ID (m) (m) (m) ID g/t g/t ppm ppm ppm
TLB0044 0.00 2.00 2.00 D1603064 137.60 136.7 114 494 42
TLB0022 0.00 1.50 1.50 D1603056 45.73 38.3 49 901 62
TLB0063 0.00 0.52 0.52 D1003188 37.60 98.8 251 1,031 119
TLB0429 0.00 1.00 1.00 D1603122 35.80 15.9 58 1,244 95
TLB0329 0.00 1.00 1.00 D-RV-025 27.50 624.0 519 6,920 199
TCV0005 4.50 9.00 4.50 D1603062 27.23 14.7 33 383 41
TLB0224 0.00 1.50 1.50 M-131 21.90 20.6
T0503 1.70 2.80 1.10 D1203453 21.67 216.0 516 2,835 824
TLB0082 0.00 0.70 0.70 D-RV-117 18.55 113.0 414 2,320 417
TAA0005 0.00 1.57 1.57 D-RV-168 18.10 56.8 196 1,040 1,070

*Intersection width which may be significantly longer than true width.

Table 7: Summary of Representative Trench Samples.

Length* Au Ag Cu Pb Zn
TRENCH (m) g/t g/t ppm ppm ppm
Maximum 20.00 137.60 624.0 8,477 28,800 3,129
Minimum BD BD BD BD BD BD
Average 1.44 3.55 29.7 136 620 167
Median 1.10 2.25 11.7 77 230 94
Mode 1.00 2.97 0.2 57 0 70
Standard Deviation 1.19 5.91 55.7 323 1,599 210
*Intersection width which may be significantly longer than true width.
BD = Below detection.

Table 8: Basic Statistics of Trenching Data.

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10.0 DRILLING
10.1 Drilling
To date a total of 201 drill holes totalling 26,733.5 m have been completed by Dynasty, at Cerro
Verde and Papayal.

Two Hydracore 2000 wire-line diamond drills owned by Elipe were used for this drilling. All drilling
was carried out using triple tube gear to maximize core recovery. The upper 10 m of each hole was
drilled with HW (76 mm core diameter) rods and cased off, then HQ (63 mm core diameter) rods
were used to 100 m followed by NQ (48 mm core diameter) for the remainder of the hole. The
holes diameters are usually between 15 mm and 22 mm larger than the core diameters.

Downhole surveying was carried out on all drill holes with dip and azimuths measured regularly
down the length of the hole, generally at 50 m intervals.

At the completion of each drill run the core was carefully transferred from the core barrel to the
core trays. At the end of each shift the core trays were sealed with lids and transported to the
core storage facility near the mine office where the core recovery, lithology and structural features
of core was logged by the field geologist. After the core was logged by the geologist the core was
marked up and sampled.

Since the drilling was all collared at the surface and the locations of drill sites were determined by
accessibility in steep topography, and the orientation of the mineralised veins varied considerably
along strike and down dip, the holes intersect the veins at various oblique angles. Most holes
intersect the veins nearly perpendicular to strike but at penetration angles well less than
perpendicular to the dip. As a result the drill intersection widths are significantly longer than the
vein true width, however the resource modelling considers the drilling in 3D and adjusts the drill
intersections accordingly.

Drilling targets were determined by detailed geological mapping and the channel sample assay
results from trenches. Assay results in the drilling showed that higher grade gold and silver
mineralization extends from the surface to depths of up to 250m. Dynastys drilling program
confirmed the existence of widespread gold and silver mineralization over the area drilled and
extended the continuous strike length of the mineralized corridor to approximately 3.5km of
surface mineralization.

See Item 9.3 for further information on results of Dynastys drilling at the Dynasty Goldfield
Project.

10.2 Sampling Method and Approach


The core recoveries were recorded for every hole and in all cases recoveries exceeded 95% over
the mineralised intervals.

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After the field geologist logged the core, the sampling limits determined by logged veins and
alteration zones were marked with a pen, and then another line was marked along the long axis of
the core along which the core would be split by diamond saw. This line is marked as close as
possible perpendicular to the edges of the quartz veins and designed to make an unbiased and
representative sample of the mineralization in the veins and altered zones.

The core was then cut by diamond saw along the marked lines by trained technicians with one half
of the core retained in the core tray for future reference and the other half bagged in a uniquely
labelled calico bag to be dispatched to the laboratory for chemical analysis. The calico bags were
stored in sealed plastic drums until they were dispatched to the laboratory under continual
supervision by a Company representative to ensure the security of the sample.

A total of 3,555 samples from drill core were collected by trained company staff for chemical
analysis at BSI Inspectorate Sample Preparation Laboratory, an internationally accredited
laboratory located at Quito and certified as complying with ISO 9001:2008 (Certificate FS 34143).
In most holes only veins and mineralised structures, as logged by the geologists, were analyzed for
Au along with 32 other elements including Ag, Cu, Pb and Zn. In a few holes where wide zones of
Cu mineralization were logged by the geologist, continuous one metre samples were collected
through the mineralised zone. The split core is presently stored at Dynastys facility at Divino Nio
outside Celica.

The author reviewed drill core from several holes and confirmed the presence of the quartz veins
and sulphide mineralization as previously logged in the core. Observed core recovery was good
ranging from 95% to 100% and the sampling orientation is representative for the core inspected.
The core boxes are in good condition.

Trenches were cut at all three prospects to enable geological mapping below any overburden and
to take samples below the surficial weathering zone of the veins and altered zones exposed in the
trenches, generally at between 1.5m and 3.0m depth. The sampled channels 5cm wide and 5cm
deep were cut by either chisels or portable diamond saw along the cleaned trench floor producing
samples each weighing an average 5-6kg. The trenches were cut as close as possible perpendicular
to the veins to a maximum depth of 3.0m. Samples were collected between geological boundaries
by trained personnel, covering the mapped mineralization as well as additional 1.0m samples in
the mapped footwall and hangingwall waste. The geological boundaries, generally quartz veins
and highly altered zones, between which the samples are collected were identified by field
geologists. Care was taken that these samples represented the intervals being sampled and there
was no bias due to selectively sampling any particular type of rock or mineral such as soft or
sheared zones. The sample limits were accurately surveyed by Differential GPS (DGPS).

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Figure 12: Photograph of Sampled Trench.

The drilling, trenching and sampling methods employed at Dynasty are considered by the author
as appropriate and meet all the necessary mining industry standards for the type and style of
mineralization tested and has resulted in unbiased representative samples suitable for resource
modelling and estimation.

The samples collected from the trenches were from below the surficial weathering zone in fresh
rock.

It is the authors opinion that the sampling methods are appropriate for the gold/silver
mineralization.

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11.0 SAMPLE PREPARATION, ANALYSIS AND SECURITY


11.1 Sample Methods
Trench samples were stored in plastic bags of 30 x 60 cm and sealed with plastic locks. A sampling
record was kept by geologists with the corresponding sample ID and description (geology,
structural, location UTM, mineralogy, lithology, etc.) for each sample. Trench sampling locations
were charted using aluminum tags.

A standard, blank and duplicates were inserted each batch of 50 samples comprising
approximately 6% of QA/QC sampling.

Once trench sampling was completed, the trench is immediately reclaimed according to the
Environmental Managing Plan approved by local authorities.

Before submitting samples to BSI Inspectorate, each sample bag was fully re-checked and
weighted to ensure it has been properly identified. Sacks able to contain no more than eight
samples each were utilized to facilitate transportation. A chain of custody was set for the
transportation process and confirmation as received once samples reached the lab.

Requested sample assay results were reported in ppm.

All the sample preparation, i.e. drying, crushing and pulverising, was done at the BSI Inspectorate
Sample Preparation Laboratory in Quito, Ecuador by the laboratory staff. The following
procedures were employed at the laboratory:

dried for at least 12 hours at 60 C;


crushed in a jaw crusher to 95% -10 mesh (95% of the sample will pass through a wire
sieve with 2.0 mm openings);
pulverised in a ring pulveriser to 95% -40 mesh (0.4 mm openings) then split in a Jones
riffle splitter;
300 g of material retained for further processing with the remainder stored in the BSI
warehouse;
pulverised in a Labtech ring pulveriser to > 95% -150 mesh then split in a Jones riffle
splitter; and
100 g pulp splits sent to the laboratorys facilities in Lima, Peru for analysis with the
remaining 200 g stored in the BSI warehouse.

11.2 Chemical Analysis Method


Gold was analyzed using the fire assay (FA) method on 30 g charges followed by either Atomic
Absorption Spectroscopy (AAS) detection or gravimetric measurement of gold, depending on the
weight of the gold button produced by the fire assay method. Silver assays were determined using

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aqua regia digestion with an AAS assay finish. A further 31 other elements including copper, lead
and zinc were analysed by the Inductive Coupled Plasma (ICP) method.

The laboratory followed industry standard QA/QC procedures when preparing and analysing the
samples including the use of blanks, standards and repeats. Where anomalies were found in the
QA/QC results appropriate action was taken, usually the sample batch was completely re-assayed.

11.3 Specific Gravity Measurements


A total of 19 samples, mostly drill core, were submitted to the National Metallurgical Laboratories
of the Escuela Politecnica Nacional Departamento de Metalurgia Extractiva (the Institute) for
Specific Gravity (SG) tests using the waxed sample - water displacement method. The average
measured SG for the mineralization was 2.7, which is typical for a massive quartz vein. The
Institute is located in Ecuador, and although its laboratory does not have an international
accreditation it is the highest ranking university in Ecuador and as such is competent to conduct SG
testing.

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DENSITY
SAMPLE DESCRIPTION CODE (t/m3)
Esperanza vein, county rock, Hole 36 EV001 2.34
Esperanza vein, waste rock in core, Hole 38 EV003 2.37
Esperanza vein, quartz vein D0203064 2.64
Foto Vein, quartz vein + sulphides D0203078 2.91
Foto South vein, Quartz vein D0803043 2.75
Venado Vein, Quatz oxidized vein D0203097 2.68
Venado Place, Andesitic rock in surface Venado 07 2.28
Papayal vein, Hole 3, Quartz vein D0803004 2.72
Papayal vein, Hole 3,Waste, 117 m depth PPY03 2.31
Papayal 5, Hole 4, Waste. 61.6 m depth PPY05 2.36
Papayal 5. Hole 8. Waste. 74 m depth PPY05-74 2.37
Papayal 5. Hole 8. Quartz vein. 71.5 m depth D0803021 2.73
Encuentros vein, Qtz vein. 28 m depth.Hole 16 D0203029 2.69
Encuentros vein, Qtz vein. 23-24 m depth.Hole 21 D0203035 2.70
Encuentros vein. Waste. Hole 21. Depth:32 m WH021 2.38
Esperanza vein .Qtz vein. 188 m depth-hole 33 D0203142 2.69
Esperanza vein. Waste. Hole 33. Depth 215m WEV032 2.41
Foto vein. Qtz +sulphides vein. Hole 39 D0203179 2.78
Foto vein. Waste fragment. Hole 39. 80m depth WFV023 2.33

Average SG in quartz veins-Papayal 2.72


Average SG in quartz veins-Cerro Verde 2.70
Average SG in andesitic rocks. Waste 2.32
Table 9: Test of Density in Quartz Veins and Waste Rock.

11.4 Sample Security


Dynasty employed rigorous sample security procedures when transporting samples between the
sampling sites and at the laboratory. The samples were recorded and logged before being sealed
in plastic drums on site and were continuously monitored by Company personnel until they were
delivered to the laboratory where all the samples were checked against the Companys inventory
by the laboratory staff and a receipt was issued for every delivery.

11.5 Sample Locations


All drill hole collars and sample trenches have been surveyed by qualified surveyors using
differential GPS (DGPS) instruments with accuracies within 10cm in all 3 dimensions.

All drill holes had their dip and azimuths measured regularly down the length of the hole, generally
at 50 m intervals, to measure any down-the-hole deviations.

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11.6 Adequacy of Sample Preparation, Security and Analytical


Procedures
It is the authors opinion that the sampling methods, preparation, security and analytical
procedures have been adequate and in keeping with requirements for this stage of exploration
work and to define the resources in the categories as stated. There is no evidence that the sample
techniques used have resulted in any sample bias and they are therefore representative of the
mineralization being tested by the sampling.

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12.0 DATA VERIFICATION


Dynasty used a variety of QA/QC techniques to measure the accuracy and precision of the assays
in the database including the use of standards, blanks and duplicates.

Recognised gold standards from Gannet Industries of Australia were used to determine the
accuracy of the gold assays. Standards were inserted at a rate of one every 40 (2.5%) in each batch
of samples, collected from drill core and trenching, sent to the laboratory for chemical analysis.

Blanks inserted in sample batches measure any contamination between samples during the
preparation stage at the analytical laboratory. Blanks were prepared by Dynasty from unaltered,
dark green, massive, fine grained andesite sourced on site. These blanks were included in each
sample batch, collected from drill core and trenching, and if a blank returned an elevated gold or
silver value the samples were re-assayed.

Duplicates inserted in sample batches measure the accuracy and repeatability of sampling and
laboratory assays. Duplicates of pulps were regularly assayed at sample intervals of 1 per 40 to 60
samples.

Figure 13 to Figure 17 show plots of the QA/QC data. The graphs show that the QA/QC results are
within acceptable limits of +/- 3 Standard Deviations.

STD 284

4.500

4.000

3.500

3.000
Samples
Au ppm

2.500
+ 3 S.D.
2.000
- 3 S.D.
1.500

1.000

0.500

0.000
0 2 4 6 8 10
SAMPLES

Figure 13: Plot of Standard 284 within +/- 3 SD.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

STD 256

0.250

0.200

0.150 Samples
Au ppm

+ 3 S.D.
0.100 - 3 S.D.

0.050

0.000
0 5 10 15 20
SAMPLES

Figure 14: Plot of Standard 256 +/- 3 SD.

STD 306

2.000
1.800
1.600
1.400
1.200 Samples
Au ppm

1.000 + 3 S.D.
0.800 - 3 S.D.
0.600
0.400
0.200
0.000
0 2 4 6 8 10
Sam ples

Figure 15: Plot of Standard 306 +/- 3 SD.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

DUPLICATES

1.4
1.2
1
Au ppm

0.8 Samples Duplicated


0.6 Samples
0.4
0.2
0
02 40
02 00
02 81
14 01
15 91
16 41
16 60
16 60

1
28
D 64
D 66
D 67
D 69
D 61
D 60
D 60
D 61
06
0
0
0
0
0
0
0
0
02
D

Samples

Figure 16: Plot of Duplicate Assays.

Blanks

0.040

0.030

0.020
Result samples
Au ppm

+ 3 S.D.
0.010
- 3 S.D.
Average
0.000
0 5 10 15 20 25
-0.010

-0.020
Samples

Note that assays of -0.005 represent below detection limit.

Figure 17: Plot of Blank Assays within +/- 3SD.

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No independent samples were collected by the author to verify the quality of the assays in the
database since the QA/QC procedures followed by Dynasty are sufficiently rigorous to ensure the
assays used in the resource modelling are reliable.

The author verified the integrity of the database by comparing several assay certificates as
received from the laboratory with their transcription into the Companys database and records.
The transcribed assays were found to be accurate.

In the opinion of the author, the data is sufficient and adequate for the purposes used in this
Report including resource estimation, and that the sample preparation security and analytical
procedures followed relating to the Project are adequate for ensuring that the data is suitable for
the resource model, as described in this Report.

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13.0 MINERAL PROCESSING AND METALLURGICAL


TESTING
No metallurgical or mineral processing tests have been carried out by Dynasty on this project
other than bulk density measurements.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

14.0 MINERAL RESOURCE ESTIMATE


The Mineral Resource Estimates described in this section have been prepared for the Dynasty
Goldfield property to conform with the guidelines set forth by National Instrument 43-101 and
incorporates terms as defined by the Canadian Institute of Mining, Metallurgy and Petroleum
Standards on Mineral Resources and Reserves: Definitions and Guidelines (adopted in 2010). The
interpretation, assumptions and parameters used in preparing this estimate are described in the
following sections.

The Dynasty Goldfield deposits are considered to be a gold/silver deposit. Other minor mineral
concentrations have not been considered as part of these estimates.

14.1 Geological and Resource Modelling


Further feasibility work will be required to determine the extent to which the estimate of Mineral
Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-
economic, marketing, political and other relevant issues.

The Companys mining operation at Zaruma, where similar style mineralization is mined, uses an
economic cut-off grade based on the cut-off grade estimate calculation in Table 10. Since the
mineralization at Dynasty Goldfield is similar to Zaruma, this calculation is considered to be a
reasonable conceptual basis on which to decide whether mined underground material should
report to the processing plant or be sent to the waste stockpile at Dynasty Goldfield.

Royalties 5%
Recovery plant 94 %
Purity Au-Ag bullion 97.8 %
Gold Price 1260 $/oz
Opex 73 $/t
Factor 0.87 %
price Au opex cut-off
$/oz $/t g/t Au
1260 73 2.06
Table 10: Cut-off Grade Determination Zaruma Project.

A reasonable economic cut-off grade for underground mining of mineralised quartz veins at
Dynasty Goldfield, based on the calculations in Table 10, has been rounded down to 2.0 g/t Au.

14.2 Method
Resources for all the veins were calculated using the polygonal method. This method was
considered appropriate by the Company and the author for vein mineral deposits exhibiting no
major variations and tectonically controlled.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

Long sections were created along each vein separately with the topography as the upper limit.

Polygons were then created around the drilling and trench samples with squares with sides as
follows: 25 m for Measured Resources, 25 m 50 m for Indicated Resources and 50 m 100 m for
Inferred Resources. See Appendix 1 for resource cross-sections for selected veins incorporated in
the resource estimate. The author determined that trench sampling was appropriate in the
context of surface exploration for the types of deposits at the Dynasty Goldfield Project. Trench
sampling followed a continuous channel sample in the mineralized rock at the bottom of each
trench. The samples were larger than those obtained by drill core and the assays were similar to
those from drilling, and enabled the Company to derive accurate and direct vein structural data.
Both trench and drill samples could be replicated and re-assayed.

The polygonal estimates are based on a total of 201 drill holes totalling 26,733.5 m at Cerro Verde
and Papayal along with a further 2,033 rock channel samples taken from 1,161 surface trenches at
Cerro Verde, Iguana Este, Trapichillo and Papayal.

The area of each polygon was multiplied by the vein width to get a volume of the vein, then
multiplied by the specific gravity (2.7) to calculate the tonnes. Veins < 0.20m were not considered
in the resources calculation. Measured resources were only derived from drilling samples while
veins sampled by trenching, without diamond drilling, were only categorized as indicated or
inferred. Vein thickness, density and precious metal grades were assumed constant in the polygon
area surrounding a drill intersection. The search ranges (radii) used based on experience at similar
deposit resources.

All resource modelling was carried out by qualified local geologists supervised by either a geologist
or mining engineer who are members of the AusIMM.

The QP has considered the methods used to estimate the resources and the parameters used
including the minimum vein widths, lower cut-off grades and upper grade cutting and believe that
they are reasonable for the style of mineralization being modelled and the mining methods that
would be used.

14.3 Mineral Resource Estimate


The mineral resource estimates are summarised in Table 11 below.

MEASURED INDICATED INFERRED


Tonnes Au Ag Tonnes Au Ag Tonnes Au Ag
VEIN (1,000) (g/t) (g/t) (1,000) (g/t) (g/t) (1,000) (g/t) (g/t)
CERRO VERDE SECTOR
Armijos 8 2.7 5.8 15 3.0 7.4 29 2.5 6.0
Atun 13 2.6 7.3 87 2.4 7.6
Barita 5 6.1 180.8 9 6.1 180.8 45 6.1 180.8
Bonanza 95 3.9 10.7 70 4.9 11.8 152 5.7 10.5
Bonanza 2 43 3.2 7.2 69 3.0 6.4 94 2.6 4.5

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

MEASURED INDICATED INFERRED


Tonnes Au Ag Tonnes Au Ag Tonnes Au Ag
VEIN (1,000) (g/t) (g/t) (1,000) (g/t) (g/t) (1,000) (g/t) (g/t)
Brecha 34 4.8 51.7 40 3.4 37.7 71 3.0 36.0
Bryan 17 4.9 26.1 59 4.0 19.8
Buele 49 3.8 9.2 42 3.6 6.4 24 2.6 2.9
Chula 0 0.0 0.0 14 5.6 27.4 43 7.3 27.2
Clavo 19 23.3 34.0 26 6.1 18.9 77 3.2 16.0
Colorada 14 5.1 27.4 49 5.3 23.0
Comanche 59 5.0 31.7 82 4.5 24.1 116 4.1 23.1
David Jair 11 2.9 55.2 40 2.7 64.7
Esperanza 396 3.3 32.8 225 3.1 28.9 35 2.9 21.4
Esperanza 2 84 4.3 18.0 130 4.7 20.5
Esperanza Norte 23 2.6 15.3 66 2.6 15.7 230 2.6 15.8
Esperanza Sur 32 4.4 11.6 26 4.3 19.8 4 4.2 61.6
Extrin 3 3.7 118.8 0 0.0 0.0 0 0.0 0.0
Flaca 147 4.4 12.0 163 3.7 13.0 285 3.1 13.0
Flaca 2 64 4.5 12.7 84 3.9 8.1 241 3.4 7.2
Foto 111 4.2 59.7 108 3.7 44.6 274 3.4 36.8
Foto Sur 36 5.6 64.2 73 5.6 64.2 157 5.8 67.1
Fred 19 7.0 79.3 30 6.5 69.2 49 4.6 40.2
Herradura 7 5.2 36.2 6 5.8 29.9 8 6.3 12.9
Herradura 3 53 2.9 19.5 100 2.8 20.1 294 2.9 22.8
Jose A. West 35 3.7 6.7 25 2.5 5.5 49 2.4 5.4
Jt 9 5.0 50.4 7 4.3 49.7 8 2.1 46.9
Jt 2 16 6.2 7.7 59 6.1 7.7
Jt West 8 2.8 18.4 6 2.9 5.7 12 2.8 5.6
La Ensillada 25 9.0 157.3 24 9.5 169.0 32 9.6 172.8
La Gorda 74 4.3 48.1 72 3.6 52.8 117 3.2 44.7
La Tranca 73 3.1 12.3 99 3.3 12.2 305 3.3 11.5
La Tranca Norte 5 4.6 23.2 2 5.4 47.6 31 4.3 12.6
Linderos 13 2.3 53.5 26 2.2 60.1 75 2.2 62.9
Linderos 1 42 3.9 30.0 66 3.8 30.9 117 4.1 30.5
Linderos 2 13 2.7 12.1 20 2.5 9.2 66 2.4 6.7
Los Encuentros 1 102 3.7 74.1 85 3.3 83.2 201 3.1 91.3
Los Encuentros 2 20 3.0 3.5 77 3.0 3.5 154 3.0 3.5
Main S 42 2.6 23.2 66 2.1 18.7
Mula 31 3.9 18.3 123 4.2 21.2
Nine 18 4.3 59.2 13 3.7 21.5 57 3.3 22.7
Overal 50 3.8 30.9 69 3.5 24.0 185 3.5 23.8

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

MEASURED INDICATED INFERRED


Tonnes Au Ag Tonnes Au Ag Tonnes Au Ag
VEIN (1,000) (g/t) (g/t) (1,000) (g/t) (g/t) (1,000) (g/t) (g/t)
Perdida Norte 75 3.9 43.0 98 4.1 52.6 255 4.3 59.3
Piojo 0 0.0 0.0 3 9.2 106.5 13 12.6 129.1
Playo 1 19 4.2 47.7 18 4.8 50.3 30 6.4 59.2
Playo 2 11 4.4 81.0 9 5.8 70.8 14 5.3 109.5
Rebelde 23 3.0 11.4 19 3.0 11.6
Resbalosa 60 4.9 43.2 49 3.9 17.3 88 4.3 11.0
Santi 62 7.6 8.4 67 5.9 8.4 89 4.9 8.2
Santi 2 35 6.8 15.5 32 6.0 15.6 46 3.6 11.6
Seven 13 4.3 23.9 23 4.1 21.6 31 4.0 20.1
Una 7 2.1 24.6 28 2.1 24.6
Venado 75 4.1 30.3 75 4.3 26.1 152 3.8 55.2

TRAPICHILLO SECTOR
Andres 2 39 3.8 42.6 107 3.7 39.1
Andrey 15 11.8 46.5 49 10.9 60.2
Cris Este 5 7.4 76.8 20 6.8 89.9
Cris 4 12.2 88.1 8 12.6 87.9
Cross Sur 16 4.5 35.2 61 3.7 24.2
Fernand 15 2.7 39.7 58 2.5 40.3
Gold 5 113.1 192.5 20 72.5 209.1
Jaramillo 5 3.9 10.3 29 3.9 10.3
Juan 40 5.0 67.2 151 4.7 67.4
Panay 5 2.6 16.1 13 2.9 12.5
Parcemon 8 8.5 57.1 23 9.2 51.3
Rio 5 4.8 13.3 13 6.5 18.0
Sol 13 21.2 191.5 38 33.3 182.2

IGUANA ESTE SECTOR 0 0.0 0.0


Cisne 145 2.8 17.9 192 2.5 16.5 354 2.4 14.2
Chiva 11 4.4 23.6 47 4.5 32.0
Eleven 7 9.3 62.1 30 9.9 61.9
Fortuna 4 4.5 35.0 18 5.7 38.6
Iguana 367 6.0 36.8 463 5.9 33.8 470 5.5 35.4
Iguana Este 29 4.7 62.8 110 4.7 31.9
Ingrid 9 3.7 39.9 48 3.4 42.7
Isabel 2 11 3.0 52.3 38 3.1 40.7
Isabel 3 12 3.2 29.5 56 3.1 27.6

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

MEASURED INDICATED INFERRED


Tonnes Au Ag Tonnes Au Ag Tonnes Au Ag
VEIN (1,000) (g/t) (g/t) (1,000) (g/t) (g/t) (1,000) (g/t) (g/t)
Sola 9 9.5 9.1 37 10.3 9.9

PAPAYAL SECTOR
Papayal 1
Veta 1 22 6.2 57.9 27 5.7 63.6 43 3.9 83.2
Veta 2 7 1.8 160.0 13 1.8 160.0 58 1.8 135.7
Veta 3 2 1.0 754.9 17 3.4 612.5 27 2.4 638.5
Veta 5 4 2.2 20.2 19 2.8 74.4 28 2.3 45.2
Veta 8 2 1.9 45.0 4 1.9 45.0 16 1.9 45.0

Papayal 2
Veta 2 5 7.4 31.3
Veta 3 6 9.3 224.5
Veta 4 15 15.5 130.9
Veta 5 1 9.1 12.0
Veta 6 6 2.8 28.8

Papayal 3
Veta 1 138 6.5 84.4 152 5.3 86.3 237 4.7 75.7
Veta 2 4 5.0 47.0 7 5.0 47.0 30 5.8 53.3
Veta 4 2 4.9 134.0 4 4.9 134.0 7 4.9 134.0
Veta 5 10 5.7 16.2 5 5.6 16.7 8 5.9 14.9
Veta 6 10 5.4 145.0
Veta 8 17 2.6 44.1
Veta 10 6 2.3 29.0
Veta 15 8 5.1 68.1

Papayal 5
Veta 1 48 6.1 68.5 69 6.6 53.2 88 6.4 45.9
Veta 2 38 7.1 85.3 48 7.9 65.1 125 8.0 65.9
Veta 3 8 2.8 116.3 13 2.8 116.0 20 2.8 116.0
Veta 4 1 4.3 41.0 16 2.4 47.9 32 2.4 47.8
Veta 5 28 6.3 33.1 40 6.3 35.7 58 6.6 58.7
Veta 6 17 4.1 60.0 49 4.1 60.0 37 4.1 60.0
Veta 7 2 2.2 146.0 3 2.2 100.0 7 2.2 100.0
Veta 8 26 2.8 22.4

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MEASURED INDICATED INFERRED


Tonnes Au Ag Tonnes Au Ag Tonnes Au Ag
VEIN (1,000) (g/t) (g/t) (1,000) (g/t) (g/t) (1,000) (g/t) (g/t)
RODRIGO SECTOR
Extremo 1 1 6.0 23.5 2 6.0 23.3
Extremo 2 15 13.3 35.8 16 12.7 35.6
Main 1n 13 4.0 106.4 16 4.8 100.9
Mango 21 8.2 18.3 47 6.1 46.0 59 6.2 42.7

Note: Lower cut-off grade of 2.0 g/t Au.

Table 11: Current Vein Resource Estimates for the Dynasty Goldfield.

Tonnes Au Ag Contained Au Contained Ag


Category (Thousands) (g/t) (g/t) (1,000 ozs) (1,000 ozs)
Measured 2,909 4.7 38.1 437 3,567
Indicated 3,958 4.6 38.8 585 4,936
Total Measured + Indicated 6,867 4.6 38.5 1,022 8,504
Inferred 7,825 4.4 39.4 1,118 9,901
Note: Lower cut-off grade of 2.0 g/t Au.

Table 12: Current Resource Estimate Summary for the Dynasty Goldfield.

Since the Mining Mandate came into effect in 2008, Dynasty and the Ecuadorian Government have
continued to work to resolve the conflict that is causing a delay in granting environmental licenses,
permitting and other matters and seeking socio-economic solutions. There is no assurance that
these will be resolved and accordingly, the main risk to the project is political in nature if Dynasty
were to proceed with development activities.

Any mining at the Dynasty Goldfield Project will have to comply with all the laws of Ecuador.
Other than as disclosed above, there are no unusual environmental, permitting, legal, title and
taxation features at the Dynasty Goldfield Project that will materially affect any future mining
operations. The country has a long history of mining and there are several successful mining
operations nearby on similar mineral deposits.

Critical risk factors applicable to the project are as follows:

- Mining cost risk: mining costs are rising in the current world market, the effect of which
could be offset by lower labour costs in Ecuador.
- Metallurgical risk: test work needs to be completed to assess recoverability of both
precious and base metals.
- Sovereign, country, geographical and topographical risks.
- Market price of precious metals: a significant decrease in the market price of precious
metals could affect the viability of any future development project on this project.

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15.0 ADJACENT PROPERTIES


There are several other mineral deposits within 100 km on the project area. Dynasty has an 80%
interest in the Copper Duke porphyry copper project area approximately 15 km east of the Cerro
Verde project (Figure 18).

Figure 18: Mineralised Zones in the Vicinity of Cerro Verde Project.

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16.0 OTHER RELEVANT DATA AND INFORMATION


No further explanation is necessary to make this Technical Report understandable and not
misleading.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

17.0 INTERPRETATIONS AND CONCLUSIONS


The Dynasty Goldfield Project comprises of seven mining concessions in southern Ecuador. These
concessions have been the focus of a series of exploration programs since 1995. The project area
has undergone mapping, sampling, geophysical surveys and diamond drilling. These works
resulted in the identification of high grade gold and silver vein systems in the Cerro Verde,
Trapichillo, Iguana Esta and Papayal areas.

A total of 967 trenches and 201 drill holes have been sampled in the Dynasty Goldfield from 2003,
when Dynasty acquired the concession rights, to February 2008. Dynasty has not engaged in any
further exploration activity since that time and has no current plan to recommence activities until
uncertainties associated with Ecuador's proposed new Mining Law have been resolved.

A resource estimate has been calculated using polygonal methods. Table 13 summarises the
current mineral resource estimate for the Dynasty Goldfield Project:

Tonnes Au Ag Contained Au Contained Ag


Category
(Thousands) (g/t) (g/t) (1,000 ozs) (1,000 ozs)
Measured 2,909 4.7 38.1 437 3,567
Indicated 3,958 4.6 38.8 585 4,936
Total Measured + Indicated 6,867 4.6 38.5 1,022 8,504
Inferred 7,825 4.4 39.4 1,118 9,901
Note: Lower cut-off grade of 2.0 g/t Au.

Table 13: Current Resource Estimate for Dynasty Goldfield Project.

It is the authors opinion that there is good potential for outlining further gold and silver resources
along strike of the same geological structures that Dynasty has already successfully explored.

The author makes the following observations regarding sample collection:

Drilling

Dynasty have employed drilling methods and associated procedures to ensure the highest
core recovery possible.

Drill collar and downhole surveying follows industry best practice so the potential for
significant impact on results is minimal.

The sampling methods and QA/QC protocols followed by Dynasty when sampling the drill
core meet industry standards and would provide reliable assays suitable for resource
estimation.

The geological logging of the core is considered to be in line with industry best practice
and consistent with other systems employed at narrow-vein deposits.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

Trenching

The sampling methods and QA/QC protocols followed by Dynasty when sampling surface
trenches meet industry standards and would provide reliable assays suitable for resource
estimation.

Weathering effects at the surface could produce biased results, depending on the nature
of the weathering either high or low, so assay results of samples collected at the surface
should not be projected deeper than the weathered zone for resource estimation.

Sample preparation and assaying

Sampling of diamond drill core and trenches is of a consistent and of a repeatable nature,
with appropriate QA/QC methodologies employed.

The assay method used is considered to be appropriate for this style of mineralization.

The laboratories used for chemical analysis are internationally accredited.

The level of compliance and lack of bias displayed by the standard reference samples,
duplicates and blanks is good and demonstrates the reliability of the gold and silver grades
used for the Mineral Resource estimate.

Security of samples being transported to the laboratory is adequate.

Mineral resource estimates

The data density from sampling trenches and diamond drilling is sufficient for the reported
resources in the assigned categories however further surface mapping, trenching and
diamond drilling is required on most of the veins explored to date before there is sufficient
reliable data for a definitive feasibility study.

The polygonal estimation method is valid for the narrow veins modelled however the
author recommends that the resource estimates are progressively updated using more
modern computer modelling methods with mining industry standard software.

Geostatistical variography should be used on the vein assays to statistically determine


valid search distances for grade interpolations and resource categorisation.

The main risks pertaining to this project are as follows:

Resource risk due to changes in geological interpretation, assumed mining and processing
parameters and new geological information and/or sampling data;

Commodity prices and exchange rates are constantly changing;

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

Risks inherent in exploration and mining include, among other things, successful
exploration and identification of ore reserves, satisfactory performance of mining
operations if a mineable deposit is discovered and competent management;

Risks associated with obtaining renewal of tenements upon expiry of their current term,
including the grant of subsequent titles where applied for over the same ground. The
grant or refusal of tenements is subject to ministerial discretion and there is no certainty
that the renewal of tenements will be granted;

The risk of material adverse changes in the government policies or legislation of Ecuador
that may affect the level and practicality of mining activities;

Environmental management issues with which the Company may be required to comply
from time to time;

Poor access to mining areas as a result of remoteness and difficult terrain; and

The availability and high cost of quality management, contractors and equipment for
exploration, mining, and the corporate and administration functions and the cost of
identifying, negotiating with and engaging the same.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

18.0 RECOMMENDATIONS
It is recommended that the Company continues with surface mapping, trenching and diamond
drilling, to fully delineate the extent of the mineralization along strike and at depth in all the
known veins.

Further infill drilling on the higher grade veins is required to improve the reliability of the resource
estimates prior to commissioning a preliminary economic assessment (PEA).

Large diameter core holes should be drilled in the better defined, most likely to be mined, veins to
provide representative samples for metallurgical testing to determine optimal processing plant
design to maximise gold and silver recoveries.

It is recommended that the Company continues with its existing Social Program to maintain
good relations with the local populace.

No exploration program is planned by Dynasty until uncertainties associated with Ecuador's


proposed new Mining Law have been resolved. The following cost estimate is based upon a drilling
program that would involve:

60 diamond drill holes for approximately 5,150 m at Trapichillo and Iguana Este over a
total area of approximately 4 km2.

20 diamond drill holes for approximately 1,350 m at Papayal Norte over an area of
approximately 1 km2.

This conceptual exploration program would take approximately 3.5 years to complete.

Dynasty Metals & Mining Inc. - Dynasty Goldfield Report Page 57


Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

3.5 YEARS EXPLORATION BUDGET - TRAPICHILLO AND PAPAYAL NORTH


DYNASTY PROJECT
Indiv. Cost Unit Cost Time Total (USD
Quantity Unit Description
(USD $) (USD $) (years) $)
$
6,500 m Drilling (80 drill holes) $180/m 180 3.5
1,170,000.00
950 samples Drill core assays $ 34/ sample 34 3.5 $ 32,300.00
1,100 m Trenches $20/m 20 2.0 $ 22,000.00
800 samples Trench samples assays $ 34/sample 34 2.0 $ 27,200.00
Camp and core storage $ 15,000 15,000 0.4 $ 0.00
$
Environment & Rehabilitation 1,000 3.5 $ 0.00
1,000/month
Social Programme $ 50,000 50,000 3.5 $ 0.00
Administration and $
8,000 3.5 $ 0.00
Contingencies 8,000/month
$
SUBTOTAL
1,251,500.00
Ecuadorian Taxes (12 %) $ 150,180.00
$
TOTAL
1,401,680.00

Depending on results yielded, the Company may be able to proceed towards conducting a PEA.

Dynasty Metals & Mining Inc. - Dynasty Goldfield Report Page 58


Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

19.0 REFERENCES
Baldock, J (Coordinator), 1982: Mapa Nacional Ecuador. Instituto Geografio Militar.

Bravo, L., 2005: Dynasty Property, Papayal-Cerro Verde-Q. Trapiche Labrado, Celica. Internal
Company Report. Unpublished.

Enadimsa, 1977: Estudio Geologio Minero del Area La Zanja. Mision Geologico-Minera de
Espana en Ecuador.

Litherland and Zamora, 1991: A Terrane Configuration for the Northern Andes. Comunicaciones
Departamento de Geologia Universidad de Chile No. 42.

Maynard, A.J., October 30, 2007: Independent Geological Evaluation, Dynasty Goldfield Project,
Celica, Loja Province, Ecuador. Company Technical Report.

Pilatasig, L and Gordon, D, 2004: Mapa Geologico Region Sur del Ecuador. Ministerio de Energia
y Minas. Edicion Provisional.

Schenk, Viger, and Anderson, 1997: Maps Showing Geology, Oil and Gas Fields, and Geologic
Provinces of the South America Region. United States Geological Survey OFR 97-470D.

United Nations, 1972: Exploration for Metallic Minerals in Southern Ecuador. Technical Report
No. 14, UN Development Programme.

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

20.0 DATE AND SIGNATURE


The effective date of this Technical Report is October 22, 2014

Allen J. Maynard, BAppSc(Geol), MAIG, MAusIMM

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

Appendices

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Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

Appendix 1

Ten Largest Resources Long Sections Showing Polygons (not to scale)

MEASURED INDICATED INFERRED


Tonnes Tonnes Tonnes
VEIN (Thousands) Au (g/t) Ag (g/t) (Thousands) Au (g/t) Ag (g/t) (Thousands) Au (g/t) Ag (g/t)
IGUANA 367 6.0 37 463 5.9 34 470 5.5 35
PAPAYAL 5 143 5.9 68 239 5.7 58 393 5.9 59
CISNE 691 2.5 16
ESPERANZA 396 3.3 33 225 3.1 29 35 2.9 21
PAPAYAL 3 154 6.4 80 168 5.3 83 322 4.7 73
FLACA 147 4.4 12 163 3.7 13 285 3.1 13
FOTO 111 4.2 60 108 3.7 45 274 3.4 37
LA TRANCA 73 3.1 12 99 3.3 12 305 3.3 12
HERRADURA 3 53 2.9 19 100 2.8 20 294 2.9 23
PERDIDA NORTE 75 3.9 43 98 4.1 53 255 4.3 59

Dynasty Metals & Mining Inc. - Dynasty Goldfield Report Page 1


SW NE
IGUANA VEIN

LEGEND
RESOURCES

MEASURED

INDICATED

INFERRED

TRENCH SAMPLE
LOCATION

DRILL HOLE

0 50 100 200
metros
SW NE
CISNE VEIN

LEGEND
RESOURCES

MEASURED

INDICATED

INFERRED

TRENCH SAMPLE
LOCATION

DRILL HOLE

BLOCK NUMBER

0 25 50 100
metros
DYNASTY PROJECT
PAPAYAL 3 - VEIN 1 AND DRILL RESOURCES

6
7
3
5
8
4

9 10

4 BLOCK NUMBER
FLACA VEIN

SW NE

LEGEND
RESOURCES

MEASURED

INDICATED

INFERRED

TRENCH SAMPLE
LOCATION

DRILL HOLE

BLOCK NUMBER

Width/Au/Ag (g/t)

0 25 50 100
metros
WEST FOTO VEIN EAST

LEGEND
RESOURCES

MEASURED

INDICATED

INFERRED

TRENCH SAMPLE
LOCATION

DRILL HOLE

BLOCK NUMBER

0 25 50 100
metros
SW NE
LA TRANCA VEIN

LEGEND
RESOURCES

MEASURED

INDICATED

INFERRED

TRENCH SAMPLE
LOCATION

DRILL HOLE

BLOCK NUMBER

0 25 50 100
metros
NW SE
HERRADURA 3 VEIN

LEGEND
RESOURCES

MEASURED TRENCH SAMPLE


LOCATION

INDICATED DRILL HOLE

BLOCK NUMBER
INFERRED 0 25 50 100
metros
Form 43-101F1 Dynasty Goldfield Project Dynasty Metals & Mining Inc.

Qualified Person Certificate

Dynasty Metals & Mining Inc. - Dynasty Goldfield Report Page 1


AL MAYNARD & ASSOCIATES
Consulting Geologists
www.geological.com.au (ABN 95 336 331 535)
9/280 Hay Street, Tel: (+618) 9388 1000 Mob: 04 0304 9449
SUBIACO, WA, 6008 Fax: (+618) 9388 1768 al@geological.com.au
Australia

Australian & International Exploration & Evaluation of Mineral Properties

CERTIFICATE OF QUALIFIED PERSON

As a qualified person responsible for the report titled Technical Report Dynasty Goldfield
Project, Celica, Loja Province - Ecuador dated October 22, 2014 (the Technical Report) to which
this certificate applies, I, Allen J. Maynard, do hereby certify that:

1. I am a consulting geologist, conducting business under the registered name of Al Maynard


& Associates Pty Ltd (ABN 95 336 331 535). My address is Suite 9, 280 Hay Street, Subiaco,
WA, 6008 Australia.

2. I graduated with a Bachelor of Applied Science degree in Geology from WA Institute of


Technology (Curtin University) in Western Australia in 1978.

3. I am a registered member in good standing of the AIG and a Corporate Member of the
AusIMM, and I became a member of AIG in 1990 and AusIMM in 1978.

4. I have worked as a geologist in the field of mineral exploration and development


continuously for the last 35 years, with experience in mineral exploration/resource
modelling and underground mining for a range of commodities including precious metals
(Au, PGM); precious and semi-precious gemstones (diamond, ruby, emerald) and base
metals (Cu, Ag, Pb, Zn, Fe, Mo, Mn, Sb, Sn, W, U, V); industrial minerals (coal, phosphate,
potash, mineral sands) and REE minerals. I have also had experience with project
generation and evaluation as well as independent technical valuation of mineral
properties in Australia in eight African countries, five South American countries, central
USA, Central and southeastern Asia, China, Armenia, Greenland, Portugal, Serbia, Turkey,
UK, Wales and Ireland.

5. I have read the definition of "qualified person" set out in National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and confirm that by reason of
my education, affiliation with a professional association (as defined in NI 43-101) and past
relevant work experience, I fulfil the requirements to be a "qualified person" for the
purposes of NI 43-101. My work experience includes the management and performance
of numerous technical studies relating to mineral exploration and surface and
underground mining, audit, evaluation and valuation of projects and operating mines in
many parts of the world.
2

6. I inspected the Dynasty Goldfield Project from March 11-13, 2005, February 27 to
March 3, 2007 and September 24-28, 2007.

7. I am the author of, and responsible for, all sections of the Technical Report.

8. I am independent of Dynasty applying all of the tests as described in section 1.5 of NI 43-
101.

9. I have had a prior involvement with the Dynasty Goldfield Project by earlier site visits as
described at Item 6 above, as well as being the co-author of the 2007 Report, as defined in
the Technical Report.

10. I have read NI 43-101 and the Technical Report has been prepared in compliance with NI
43-101.

11. As of the date of the Technical Report, to the best of my knowledge, information and
belief, the Technical Report contains all scientific and technical information that is
required to be disclosed to make the Technical Report not misleading.

12. I consent to the filing of the Technical Report with any stock exchange and other
regulatory authority and any publication by them for regulatory purposes, including
electronic publication in the public company files as accessible on their websites.

Dated this 22nd day of October, 2014.

Allen J. Maynard