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Altamira Gold
(TSXV:ALTA)

Following my article on the progress at Cajueiro with trenching at Baldo and Baldo
East (https://ceo.ca/@newton/major-progress-in-6-months-at-baldo-east-by-
altamira-alta), I had a chance to talk with Michael Bennett, President & CEO of
Altamira Gold (TSXV:ALTA) and Alan Carter, Chairman, about what next at Cajueiro
as at January, 2018. They have produced a lot of good results from trenching and
there’s potential for much more. Will they keep doing what’s working or is it time
to level-up and start drilling? Find out all this and more in this great interview.

Recorded January 23, 2018 with Alan Carter & Michael Bennett.
Michael Bennett & Alan Carter
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Peter Bell: Let me just mention that it was a treat to write that article about your progress
at Cajueiro over a 6-month period because your news releases kept showing
the same map with new trench results. It made it very easy for me to
understand what you were doing and why. Thank you!

One big question remained for me when I started to look at the broader area.
I wondered about the potential to connect several of these areas in a resource
estimate, like Baldo East and Baldo. They seem close, but I wonder if they’re
close enough.

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Michael Bennett & Alan Carter
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Michael Bennett: Peter, I think it will all coalesce at the end of the day. If you look at the zones
that we have right now like Crente, Matrincha, and Baldo, then I'm sure they
will all coalesce. The east-west structures that we're seeing right now will
multiply as the expression goes ahead and these northeast-southwest zones
will connect with all of that.

Peter Bell: What do you think about the geology – why do you see them in parallel? Or
any thoughts on the frequency of them?

Alan Carter: We have now exposed 3 east-west trending structures that are new and
have good grades. We've traced one of them now for 900 meters and we
think it's probably at least 1.3-1.4 kilometers total strike length based on
where we can see the workings further off to the east in the stream.

Peter Bell: Wow. Really?

Alan Carter: Then we put some reconnaissance trenches immediately south of this
structure and hit another one. The first trench, as you know, was 7 meters
at five-and-a-half grams. We then stepped 200 meters to the east on that
structure and the latest trench was 29 meters at 3 grams. Whilst we only
have about 200 meters of strike length on that second structure, we think
that could be a lot wider than the first one. Then there's a third structure in
one of the trenches where we've got 2 meters at eight-and-a-half grams and
we don't know where that one goes. It's going to be quite exciting.

Mike and I were chatting to somebody else earlier today about how many of
these east-west structures exist and there could be 5 or 6 of them based on
the magnetics and the frequency of these high-grade blocks that we're

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Michael Bennett & Alan Carter
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seeing on surface as we walk across those fields. There's so little exposure,

but these blocks are exposed in some places.

Michael Bennett: Peter, although the pits from the garimpeiros tend to look fairly erratic when
you first see them on the satellite image, you can see they were actually
sitting on the intersection of these structures and the streams. That gives us
a really good feeling about the value of interpreting the satellite imagery.

Peter Bell: Really? I was not aware of, let alone the intersection of the streams and the
projection of the structure.

Michael Bennett: You can see clearly the Cajueiro were sitting right on top of the structure.

Peter Bell: Wow, okay. Well, the photos that you guys have released in the past on
social media and the website are really cool. It’s neat to get a sense for what
it actually looks at site. You say there's not a lot of exposed rock?

Alan Carter: Very little. This is ranching country. It's very flat, like Alberta or Texas.

Peter Bell: But you’re able to do trenching so the bedrock is not too far down? Is it just
a couple meters of scraping, or what?

Alan Carter: It’s 3 or 4 meters down in most cases, which is something that we can test
with trenching. The discovery of these east-west structures in the last 3 or 4
months has really changed our perception of how big this project could be.
Look at the first 2 structures, which we've trenched and started to drill
already, to give you some idea of the potential here.

Given the widths and grades that we're seeing at those 2 structures, if you
project them down a couple hundred meters and out 1.3 kilometers along
strike then we could be dealing with one-and-a-half million ounces on those

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Michael Bennett & Alan Carter
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two structures. Those are just the first two structures we’ve identified! We
have several of these things, in addition to the half-a-million ounces that are
already in the ground. If we end up defining 5 or 6 of these structures, then
things could get interesting.

We've got a long way to go with the project. As you're aware, there are some
very compelling gold-in-soil anomalies, which extend five kilometers to the
southeast and the west. We think we've got a tiger by the tail.

Peter Bell: It sounds like it! And the widths of what you're seeing too – these are not
the centimeter-wide veins, these are multiple meters.

Alan Carter: As Mike said, these new structures have a style of mineralization that we
haven't seen previously on the project. They're breccia zones with sulphides
and very little quartz. It’s a very interesting style of mineralization – they're
not little narrow veins.

Peter Bell: Clusters of these veins?

Alan Carter: These seem to be tabular bodies, but they have some widths and the nature
of the breccia suggests that there could be some sort of deep-seated
intrusive source driving this whole mineralizing system. It's clearly a very
large mineralizing system.

Peter Bell: And host rock – what is the sense of rock type there?

Michael Bennett: In the area of the outcrop, there are fine grain granites and rhyolites. There
are things that you could describe as porphyritic, but we don't see that as a
general rule yet.

Peter Bell: Hard rocks, right?

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Michael Bennett & Alan Carter
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Michael Bennett: Hard rocks with sericitic alteration in the area. As Alan says, very little quartz
veining.

Peter Bell: Sericitic alteration without the quartz? Interesting.

Michael Bennett: One of the important factors here is that the whole area has been prepared
for mineralization, which leads us to believe there is something near us at
depth. The structural preparation and mineralization over 6-8 kilometers in
this area is great.

Peter Bell: How about the geological movement causing the brecciation with that hard
rock? Is there any indication to give you a sense for what moved where,
when?

Michael Bennett: We're on the edge of the Cachimbo Graben, which is the sedimentary basin
to the north, and it looks like movement on the southern edge of the Graben
has replicated these east-west zones.

Peter Bell: Neat. Not quite splays off of a larger fault.

Alan Carter: There is clearly a series of parallel structures in the zone and we've been
exploring a very small part of the overall gold-in-soil anomaly over the last 9
months. The anomaly is very large. There is multi-million-ounce potential
there and I think we're well on the road to demonstrating that this is going
to be quite a large gold deposit. As Mike said, we expect it to have pretty
good grades as well.

Peter Bell: The trenches give an indication of width at surface, but you have to drill at
some point. Any sense for when you will work on that?

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Michael Bennett & Alan Carter
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Michael Bennett: We did 3.3 kilometers of trenching last year and we're planning a similar sort
of trenching in the first 6 months of this year. Trenching has been all
important, Peter. It really helped open up these new zones. As Alan says, it
really has changed the model for us.

What are we doing now? We are talking to the group that actually did the
first 43-101 report for us and planning our exploration for the first 6 months
of this year in conjunction with them so that we don't waste either trench
meters or drill meters.

Peter Bell: Good! Alan, thank you for one of the conversations where you told me that
trenches properly done can be used in a 43 101. I was not aware of that but
very pleased to hear that. I definitely pay a lot more attention to that when
I see it.

Michael Bennett: They are horizontal bore holes and they are typically a third of the cost of a
drill hole.

Peter Bell: Isn't that amazing. And do you have a sense for the dip of the structures
you're seeing?

Michael Bennett: Sub-vertical.

Peter Bell: Okay. And what's that based on – just scraping down a bit deeper in the
trench?

Michael Bennett: You can actually see the structure going down in the trench and measure the
angle of the structure.

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Michael Bennett & Alan Carter
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Peter Bell: Cool! Not being a geo, I end up out of my depth pretty quickly but I
appreciate discussing it all with you guys. The last few conversations have
been a treat.

One thing I wrote about in my last article on the company was your
exploration process. You have a lot to do with these large gold-in-soils
anomalies. Even around Balbo East, you could have worked on a bunch of
different places but it seemed like you had a good plan and stayed focused
on it. Things went smoothly there, and quickly! Looking back, was there
anything that didn't go smoothly?

Michael Bennett: 2017 was the most successful year we've had on the exploration, without a
doubt.

Alan Carter: I think so, too.

We decided to focus on two areas in that Central part of the Cajueiro area,
which we thought had excellent potential. One of those, Toninho, didn't turn
out as well as we'd anticipated but Baldo East far exceeded our expectations.
It's fantastic that the first zone is consistent in every trench. We step out
150-meters, bang, there it is again and it's running the same sort of grade. It
has a high-grade core and is surrounded by low-grade material. The next
trench is the same, and the following one again.

If anything, this most westerly trench is perhaps one of the best trenches
we've seen in the whole zone. Baldo East 2, which is the parallel structure
about 220 meters to the south of that, is actually looking wider and higher
grade! We've only got two trenches into it, but they are 200 meters apart
and they have similar grades. One hit 7 meters at 5-and-a-half grams and

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Michael Bennett & Alan Carter
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the other is 29 meters at 3 grams – those are really good numbers, Peter.
You can build up ounces quickly on structures like that with those widths and
grades.

Peter Bell: That's the thing for me – having seen the story in July 2017 and then coming
back to it after all this work was done. I was impressed! You did good,
focused work and showed that this has potential to build up a lot of ounces
in what is a small part of the whole land package.

Alan Carter: And it still is a small part of the whole package!

Michael Bennett: We have actually increased the resource, but we haven't upgraded the 43-
101 yet. In the first few months of this year, after the rains have subsided a
bit, we will take those first two zones into the resource. Hopefully, we can
increase the strike length to nearly 1.5 kilometer on both of them and take
the resource estimate down depth. It's a very simple work program for us to
get this information into the 43-101.

Peter Bell: But you’ll need some holes to do that, right? Would something like that take
a dozen more holes?

Michael Bennett: We will use a lot of trenches again. We'll probably use more than 3
kilometers of trenches. Some of that trenching will amplify the 43-101 in the
first two zones of Baldo, but others will try to open up some new zones that
we believe exist both in Baldo and two of the other areas in the project. And
then we will drill a couple thousand meters.

Peter Bell: I can just see Altamira doing some “infill trenching” as you come back in
between some of these earlier trenches to increase confidence there.

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Michael Bennett & Alan Carter
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Alan Carter: It's an exciting project to be part of. I think the numbers we're getting on
surface here are good – there aren’t a lot of other companies that have
similar grades on surface with the upside potential that we do, given the size
of the enormous area. I think it's going to be a significant gold deposit in
Brazil. It's already the largest hard rock gold deposit in the Juruena Belt, but
I think it could be a lot larger.

Peter Bell: It's a bit awe-inspiring or humbling because the company has other assets
too, right?

Alan Carter: Right. We have 11 other areas.

Michael Bennett: In total, the company has about 250,000 hectares. One of the things we've
been reflecting on recently, following the staking rush in the area since
September of last year, is that we're the only junior in the center of the belt.
That's quite a unique position.

Alan Carter: We’ve been there exploring for gold for a while, so we were there prior to
these major companies coming in and staking ground. The main one, of
course, is Anglo American but there are several others that have acquired
large land locks on the edge of the belt.

Peter Bell: Sounds like a rush!

Alan Carter: I think that's a fair comment. It's unprecedented. In all the time that we've
been working in Brazil, which is probably getting to 25-30 years between
Mike and I, we've never seen a major company take such a large land
position. And it's not just the one company either. There are several now
that seemed to have joined in. It's a very interesting situation.

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Michael Bennett & Alan Carter
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Peter Bell: It’s mining exploration week here in Vancouver with Roundup, VRIC, Metals
Investor Forum, the NAI500, and all kinds of things going on. There seems to
be a lot of buzz around the phrase “strategic investment”. Do you guys have
relationships with any of the majors that have come into the area?

Alan Carter: We're now at stages in our career where we know all the guys who are
managing these exploration efforts for the major companies, particularly in
Latin America where Mike and I spent our whole career. I think there's a lot
of interest in the copper space right now and I think it's going to continue to
grow as the transition to electric vehicles accelerates. Your average car
contains about 25 pounds of copper now, but the average electric car is
going to contain about 250 pounds of copper. That's going to have huge
consequences for the copper market going forward. This new copper
discovery that has reportedly been made in our region means that could be
the worlds’ next major copper belt and we’re right in the middle of it!

Peter Bell: I heard mention of this porphyry but don’t have the full story. What’s going
on there?

Michael Bennett: Anglo American has a block of ground they call Jacka on the east side of the
belt. The word on the street is that they have cut a fairly large intersection
there in a porphyry copper. As Alan says, it's a brand-new region. If you have
packages with 15-20 kilometers strike length of gold, then there has to be
something sourcing all of this. We believe that we're sitting on top of a root
source in several of our areas.

Peter Bell: How about ages here?

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Michael Bennett & Alan Carter
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Alan Carter: These rocks are pretty ancient. They are Proterozoic and are probably a bit
younger than the stuff in Ontario and Quebec, but not much. As we said this
is cow country, it looks like Alberta or Texas or something.

Peter Bell: Okay. Sounds like there’s been a lot of erosion in the area. How about level
of oxidation?

Michael Bennett: The surface material is oxidized, depending on where you are in the
topographic profile. If you're on higher ground, then the oxidized material
probably goes down to 15-20 meters. If you're in the lower valleys it could
go down to 30-60 meters.

Peter Bell: It's amazing how shallow that is. At first, I was thinking with all the water in
the area that it would cause more oxidation but the water table is closer to
surface and that gives less space for the sulfuric acid to do it’s thing. Again,
how about that root source – how will you start to work on that?

Michael Bennett: We're looking at several aspects here, Peter. What we've done so far in 2017
is taken our airborne geophysical data on the Cajueiro project, had it
reinterpreted by a geophysicist who has experience in the area, and that's
generated some interesting areas of attack for us for the next few months.

Peter Bell: You have a long list already, this is another big thing to add to the company!

Michael Bennett: We're in the process of re-assaying some of the core in some of our southern
properties where we have indications of copper and we will be doing soil
surveys in other areas where we believe there is copper as well.

Peter Bell: Great. That's a great set of work programs to start on a potential porphyry –
reinterpreting the geophysics, re-assaying the core, and new soil sampling.

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Michael Bennett & Alan Carter
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No trenching for the porphyry yet? It’s probably too deep anyways, but
anything’s possible.

Michael Bennett: We're going to concentrate Cajueiro for the time being. If we dilute our focus
too much, then we're not going to have such an impact on our program.

Peter Bell: How is access in the porphyry area – is it kind of similar flat cow country?

Michael Bennett: Yes, it’s a similar area. We haven't done any work on those areas yet, on the
ground. It’s an easy sort of area to get into.

Peter Bell: Wonderful. Gentlemen, thank you very much.

Michael Bennett: Thank you very much, Peter

Alan Carter: Thank you.

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Michael Bennett & Alan Carter
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Disclaimers

This document contains statements that are forward looking statements and are subject to
various risks and uncertainties concerning the specific factors disclosed under the heading “Risk
Factors” and elsewhere in the Company’s periodic filings with Canadian securities regulators. Such
information contained herein represents management’s best judgment as of the date hereof
based on information currently available. The Company does not assume the obligation to update
any forward-looking statement.

Peter Bell has not been compensated to prepare and distribute this material.

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