Announcement PDF ASX ANNOUNCEMENT 23 MAY 2022 ASX: TSO | ACN 106 854 175 Ternera Mineral Resource increased by +66% to 1.1Moz @ 1.12g/t Au Highlights ▪ Ternera Mineral Resource Estimate (MRE) increases to 1.1Moz at 1.12g/t Au at a 0.30g/t Au cut-off contained within a USD1,800/oz gold price optimised pit shell. ▪ Successful infill and extensional drilling programs completed since July 2021 have: • Increased total ounces by +66% to 1.1Moz; • Increased Mineral Resource gold grade by +36% to 1.12g/t Au; • Increased Indicated Resources by +570% to 503koz at 1.18 g/t Au; and • 46% of the MRE classified as Indicated ▪ Multiple, continuous, higher-grade gold zones have been defined, resulting in a Mineral Resource of 715koz’s at 2.31g/t using a 1g/t Au cut-off, demonstrating the potential of Ternera being suited to high-grade open pit mining scenarios. ▪ Gold mineralisation remains open in all directions and further drilling is planned to continue Resource expansion and test potential Ternera repeats. ▪ ▪ Highly effective drilling campaign resulting in low discovery cost of <AUD21/oz. Emerging Gold District – Potential Ternera repeats currently being delineated for drilling. Tesoro Gold Limited (Tesoro or the Company) (ASX:TSO, OTCQB:TSORF) is pleased to report a significant Mineral Resource Estimate (MRE) update for the Ternera Gold Deposit (Ternera) at the Company’s El Zorro Gold Project (El Zorro), in Chile. The updated MRE for the Ternera Gold deposit now stands at 1.1 million ounces at a grade of 1.12g/t Au using a 0.3g/t Au cut-off grade with 46% of the MRE is classified as Indicated, refer Table 1. The updated MRE highlights the continuous, higher-grade portions of the deposit, at a 1g/t Au cutoff the MRE contains 715koz’s at 2.31g/t Au. The drilling completed since July 2021 has resulted in a +570% increase in Indicated Resources which now stands at 503koz’s. 1 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Indicated Cutoff Au g/t Mt 2.00 1.00 0.50 0.30 Au g/t 1.8 4.4 9.3 13.3 Inferred koz 3.93 2.41 1.51 1.18 Mt 223 341 453 503 Total Au g/t 2.0 5.2 12.0 17.2 koz 3.63 2.23 1.36 1.07 Mt 230 373 527 593 3.7 9.6 21.4 30.5 Au g/t koz 3.77 2.31 1.43 1.12 453 715 980 1,096 Table 1 – El Zorro Gold Project, Ternera Gold Deposit updated Mineral Resource Estimate reported at various cut-offs within a USD1,800 per ounce optimised pit shell. The reported resource has been constrained to a USD1,800/oz optimised open pit shell, however, the total unconstrained classified resource stands at 38.6Mt at 1.06g/t Au for 1.3Moz, which demonstrates potential for continued expansion of the Ternera Gold Deposit (Table 2). Indicated Cutoff Au g/t 2.00 1.00 0.50 0.30 Mt 1.9 5.0 10.6 15.5 Au g/t 3.90 2.36 1.48 1.14 Inferred koz 243 377 505 566 Mt 2.3 6.5 15.5 23.1 Au g/t 3.55 2.14 1.31 1.01 Total koz 264 451 651 747 Mt 4.2 11.5 26.1 38.6 Au g/t 3.71 2.24 1.38 1.06 koz 507 828 1,156 1,313 Table 2 – El Zorro Gold Project, Ternera Gold Deposit updated Mineral Resource Estimate reported at various cut offs unconstrained classified resource to the 200mRL. Tesoro Managing Director, Zeff Reeves commented: “This is a significant milestone for Tesoro and the El Zorro Gold Project. This MRE confirms the quality of the Ternera Gold Deposit, and the exceptional work completed by our team in delivering such a significant update in a short period of time. This MRE highlights the higher-grade portions of the Deposit that we have consistently intersected during recent drilling, with the high-grade zones now being reflected in the significant grade increase we see in the updated MRE.” “Tesoro is in an enviable position with a now plus 1Moz and growing, robust, open pittable gold deposit within what we believe to be a significant new gold district in Chile, providing exceptional potential to find Ternera repeats on the property.” Ternera MRE Update A total of ≈55,000m of additional drill information (155 drillholes) from the previous reported MRE (see ASX Announcement on 28 July 2021) were utilised in this MRE update for the Ternera Gold Deposit. This drilling was completed between July 2021 and April 2022 with results consistently returning wide, high-grade gold intercepts. Drilling focussed on expanding the Ternera gold MRE as well as increasing the classification of the MRE. A detailed geological reinterpretation and 3D modelling program of the Ternera Gold Deposit was undertaken, resulting in a substantial improvement in gold grade and continuity throughout the deposit. The new geological modelling was greatly enhanced by additional data acquired from infill diamond drilling which has resulted in a substantial increase in the Indicated gold Resource at Ternera (Table 1). The Ternera MRE now contains 503koz classified as Indicated, representing 46% of the total resource. Delineation of the updated MRE has been completed in a capital efficient manner with a low discovery cost of <A$21/oz, well below the global average of U$45/oz for greenfields discoveries. 2 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 About the Mineral Resource Estimate The revised MRE as at the 23 May 2022 is summarised in Table 1 above. The Resource has been independently estimated by Mr Lynn Widenbar, a consultant to the Company (see Competent Person Statement) who is a highly credentialled and experienced resource consultant having completed MRE’s for companies including Saracen Mineral Holdings Limited (ASX:NST), Calidus Resources Ltd (ASX:CAI) and Aurelia Metals Ltd (ASX:AMI) The estimate has been produced by 3D modelling of the host lithology and mineralised fault systems, interpreted to control gold deposition within the Ternera Gold Deposit. The 3D geological framework was utilised to produce a block model grade estimation using Ordinary Kriging (OK). A full summary of the resource methodology and validation is included below and in Appendix 1. Ternera MRE resources have been classified as Indicated and Inferred based on current drill spacing, and drilling has been verified using the Company’s QAQC program which is to normal industry standards. 3 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Figure 1 – Ternera Gold Deposit Block Model Section 7036175N (looking north) showing MRE block model and USD1800/oz optimised open pit shell. Red = indicated classification, green= inferred classification Figure 2 – Ternera Gold Deposit Block Model Section 7036175N (looking north) showing MRE block model and USD1800/oz optimised open pit shell. Block model coloured to gold grade. 4 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Figure 3- Flitch plan (looking down) of the 375mRL showing the Ternera Gold Deposit block model and USD1800/oz optimised open pit shell outline. Dashed blue line shows section location of Figure 1. 5 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Growth Plan The updated Ternera MRE is the result of a highly successful exploration and drilling campaign following the announcement of the Ternera maiden MRE in July 2021. The drilling campaign added an additional 155 drill holes and ≈55,000m with results having been previously released to the ASX (Appendix 3). Data from the drilling has highlighted multiple areas within the Ternera Gold Deposit which remain unclassified, and the Company expects additional drilling has the potential to convert these areas to classified Mineral Resources. Tesoro has also identified significant extensions to the Ternera Deposit, both along strike (north and south) and high-grade zones at depth (Figure 4). These areas represent immediate targets for further resource expansion at Ternera and the Company intends to complete further drilling to continue to increase Mineral Resources. Furthermore, the Company has recently discovered multiple new targets analogous to Ternera to the north-northwest (Figure 5 - ASX announcement, 19 April 2022). Work is currently being completed to define drill targets at these highly prospective targets, with drilling aiming to commence in the next two months. The Company is well advanced is assessing the production potential of the El Zorro Gold Project, including the evaluation of open pit mining at Ternera and will provide an update of progress in due course. Figure 4 – 3D view looking northwest of the Ternera updated MRE block model, USD1800pit shell and drilling with selected drill highlights (downhole width/Au g/t) showing extensions requiring further drilling for resource classification. Orange, red and pink blocks below the optimised pit shell are >1.50g/t and currently are not reported in this MRE. These areas highlight high grade extensions with future underground mining potential below the optimised pit shell. 100m grid. 6 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Figure 5 - El Zorro Gold Project geology and surface sampling. PSAD56/19S datum. Gold results shown as width/Au(ppm). Prospective El Zorro Tonalite Dyke swarms in pink. Prospective gold targets shown by dashed red lines. Buzzard Channel sampling results refer ASX Announcement 25 June 2020, Toro Gordo Channel sampling results refer ASX Announcement 10 December 2020, Ternera East drill results refer ASX Announcements 11 August and 6 December 2021, Drone Hill drill results refer ASX Announcement 23 March 2021. 7 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Ternera Mineral Resource Estimate Summary The following is a summary of material information used to estimate the Mineral Resource, as required by Listing Rule 5.8.1 and JORC 2012 Reporting Guidelines. Details of historic drill results and Tesoro’s exploration drilling at Ternera including all collar tables and all significant intersections that have been previously released to the market are listed in the announcements presented in the attached Appendices. Mineral Tenement and Land Tenure Status The Ternera Gold Deposit occurs within Tesoro’s El Zorro Gold Project (El Zorro or The Project) which covers a total concession holding area of approximately 570km2, located approximately 130km north of Copiapo City, in Region III (Atacama) in northern Chile. The Ternera Deposit is 13km inland from the Pacific Ocean, 57 km by road from the port of Caldera and is well supported by existing road, power, and water infrastructure. A full list of the El Zorro Concessions is presented in Appendix 2. Tesoro’s 95% owned Chilean subsidiary, Tesoro Mining Chile Ltda, currently owns 85% of the El Zorro Gold Project within a fully diluting joint venture structure. Figure 6 - El Zorro Gold Project Location Map, showing operating mines in the region and supporting infrastructure. Geology The Project is located within the Coastal Cordillera of Chile. At Ternera, gold mineralisation is predominately hosted within numerous intermediate intrusions and associated quartz and sulphide veins, veinlets, and alteration within faulted and strongly altered tonalitic intrusions (El Zorro Tonalite or EZT). The EZT intrusions have intruded Permian aged basement sedimentary sequences. Gold mineralisation at Ternera has been classified as an Intrusive Related Gold System (IRGS) and Tesoro has discovered additional gold targets in the El Zorro District which exhibit similar styles of gold mineralisation. Gold mineralisation is interpreted to be related to regional scale north-south striking fault zones and associated local north-west striking strike slip faults. Mineralisation is interpreted to occur as discontinuous shoots, controlled by a combination of the intersection of the structures with the 8 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 preferred host rock tonalite, and locally developed intersections of fracture populations that developed during strike-slip deformation. Drilling Techniques and Hole Spacing Drilling completed at the El Zorro Project and results used to support the MRE includes 300 diamond core (DDH) holes for a total of 100,235m (Figure 7). All diamond holes are drilled from surface with most holes drilled towards the south-west with a dip of 60 degrees. Earlier holes were drilled in various orientations to define the main mineralised trends. Drilling used a HQ (~63.5 mm diameter) drill size. Drill core was collected from a core barrel and placed in appropriately marked core trays. Down hole core run depths were measured and marked with core blocks, and orientation marks were routinely placed onto the core. Core was measured for core loss and core photography and geological and geotechnical logging completed. Figure 7 – Ternera Gold Deposit drill collar plan showing USD1800/oz optimised pit shell outline and outline of updated MRE. Datum PSAD56 19S 9 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Sampling Sample lengths were determined by geological and significant mineralisation boundaries with a maximum sample length of 1 metre. Core was cut in half longitudinally with an electric core saw. Core was cut such that the orientation line remained in the core tray, and the same half of the core was collected for sampling. Quarter core was submitted to ALS Santiago for chemical analysis using industry standard sample preparation and analytical techniques. Certified Reference Materials (CRM) at a rate of 1 in 20, and analytical blanks (1:50) were used as part of the QAQC procedures. Field duplicates were generated from coarse reject material from the laboratory and targeted mineralised zones at a rate of 1 in 20. Sample Analysis All DDH samples were dispatched to ALS Copiapo Chile for sample preparation. Sample preparation included whole sample crushing to 70% less than 2mm, Boyd rotary slitting to generate a 1 kg sub-sample, and pulverising to achieve better than 85% passing 75 microns (ALS code PREP31B). Sample pulps were dispatched to ALS Santiago Chile for analysis using 50 g fire assay with atomic adsorption finish (ALS code Au-AA26). This method is considered a total analysis. Estimation Methodology 3-dimensional (3D) modelling of the geology was carried out to generate domains for further analysis and resource estimation. Statistical analysis was based on these 3D tonalite and fault domains, to determine the capping (top cuts) to be applied to the gold assay data prior to resource estimation. The top cuts varied by domain from 10 to 30 g/t Au. Analysis of density data was also carried out to determine parameters for density estimation. Variography was carried out on gold and density to generate the parameters required for estimation. Estimation of gold grade and density used an Ordinary Kriging (OK) estimation methodology, with an initial estimation generating mineralised and unmineralised envelopes. A second pass of kriging then used these sub-domains within the major tonalite and fault domains to produce final estimates of gold grade and density. A dynamic search technique was used in the estimation of the tonalites, which allows the search strategy to follow the local variations in dip and strike of the mineralisation. In the fault domains between the tonalite intrusions a vertical, north-search was used. A three-pass search strategy was used, with search radii of 20m, 35m and 50m respectively. Resource Classification Resource classification is based on drill spacing and the average distance to, and the number of samples and drill holes used in the estimation of each block. Indicated material is generally assigned to blocks within areas of ~20m to 25m drill spacing, while Inferred material has up to ~40m to 50m drill spacing. Blocks with more widely spaced drill spacing are estimated but are not classified as part of the Mineral Resource. Mining and Metallurgy Development of this Mineral Resource adopts mining standard equipment and methods using a conventional truck and hydraulic excavator and open pit mining at an appropriate bench height. Mineral Resource Statement The mineralised material that has been interpreted to have “reasonable prospects of eventual economic extraction” by open pit mining methods was defined as mineralised material that has a cut-off grade above 0.30 g/t within an optimised pit shell. The assumptions used in to model the optimised open pit shell are presented in the table below. 10 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Item Av erage Mining Cost Units US$/t mined Mining Dilution Mining Recov ery Gold Price Metallurgical Recov ery - Au % % US$/oz % Processing Cost US$/t milled General & Administration Costs Tailings Disposal US$/t milled Value Justification 2.70 Based on mining cycle time modeling. I ncludes closure cost prov isions. 10 I ndustry standards assumption for open pit mining 95 I ndustry standards assumption for open pit mining 1,800 Discount to current spot gold price 94.5 Based on Phase 2 metallurgical testw ork results as announced to the ASX on 10 December 2021. 11.50 Based on cost modelling from metallurgical testw ork and database costs 3.40 Based on cost estimate database US$/t milled 0.10 Based on cost estimate database Ov erall pit slope angles Degrees 42 Based on Scoping Study Geotechnical Assessment The Company also confirms that a total of 50,060,000 Class B Performance Rights held by Tesoro Directors Zeffron Reeves and Geoff McNamara have vested and become capable of exercise into fully paid ordinary shares in the Company as a result of the updated Mineral Resource Estimate. These Performance Rights were subject to a performance milestone linked to the establishment of a Mineral Resource of equal to or greater than 1 million oz at a gold grade of 1 g/t or greater, as defined in accordance with the JORC Code (2012). The Performance Rights must be exercised on or before 29 January 2023. This ASX Announcement has been approved for release by the Board of Tesoro Gold Ltd. For more information, please contact: Zeff Reeves Managing Director info@tesorogold.com.au 11 Peter Taylor Investor Relations Peter@nwrcommunications.com.au 0412 036 231 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 About Tesoro Gold Tesoro Gold Limited was established with a strategy of acquiring, exploring, and developing mining projects in the Coastal Cordillera region of Chile. The Coastal Cordillera region is host to multiple world class copper and gold mines, has well established infrastructure, service providers and an experienced mining workforce. Large areas of the Coastal Cordillera remain unexplored due to the unconsolidated nature of mining concession ownership, but Tesoro, via its in-country network and experience has been able secure rights to a district scale gold project in-line with the Company’s strategy. Tesoro’s 95% owned Chilean subsidiary owns 85% of the El Zorro Gold Project. Competent Persons Statement The information in this report that relates to Exploration Results is based on information compiled by Mr Zeffron Reeves (B App Sc (Hons) Applied Geology) MBA, MAIG). Mr Reeves is a member of the Australian Institute of Geoscientists and a Director and shareholder of the Company. Mr Reeves has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Reeves consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. The information in this report that relates to Mineral Resources is based on information compiled by Mr Lynn Widenbar, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Widenbar is acting as an independent consultant to Tesoro Gold Limited. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Widenbar consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Future Performance This announcement may contain certain forward-looking statements and opinion. Forward-looking statements, including projections, forecasts and estimates, are provided as a general guide only and should not be relied on as an indication or guarantee of future performance and involve known and unknown risks, uncertainties, assumptions, contingencies and other important factors, many of which are outside the control of the Company and which are subject to change without notice and could cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by such statements. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. Nothing contained in this announcement, nor any information made available to you is, or and shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Tesoro. 12 +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 APPENDIX 1 – JORC TABLES JORC Code, 2012 Edition - Table 1 Section 1: Sampling Techniques and Data Criteria JORC Code explanation Commentary Sampling techniques • Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Tesoro has completed 300 diamond drill holes for 100,235m in 2017, 2018, 2020, 2021 and 2022 (ZDDH0001 to ZDDH00296) in the area of the MRE. Diamond drill holes were drilled with HQ. Sampling was half core at geologically defined and significant mineralisation boundaries. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Tesoro Diamond drill holes were drilled with HQ. Sampling was half core at geological and significant mineralisation boundaries. The CP consider this appropriate for the style of mineralisation. • Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done, this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Diamond drilling was used to obtain ½ core samples of various lengths (minimum 0.25m), from which 1kg of material was pulverised passing 200 mesh to produce a 50g charge for fire assay fusion with a gravimetric finish. Multielement assays were completed by 4-acid digest with a 2.5g charge. The CP consider these appropriate assay techniques. Drilling techniques • Drill type (e.g. core, reverse circulation, openhole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). Tesoro has completed 300 diamond drill holes for 100,235m in the MRE area. Diamond drill holes were drilled with HQ. Sampling was half core at geological and significant mineralisation boundaries. Standard tube was used. Drill sample recovery • Method of recording and assessing core and chip sample recoveries and results assessed. Core recovery was estimated using the drillers recorded depth marks against the length of the core recovered. Reviewing the core photos, there are occasional shears/faults where core is broken. There is however no significant core loss. • Measures taken to maximise sample recovery and ensure representative nature of the samples. A single tube system was employed and in general core recovery good. • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. There appears to be no potential sample bias as there was no regular loss of core. • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Geological core logging to a resolution of 25 cm was undertaken with a record kept of, inter alia, colour, lithology, weathering, grain size, mineralisation, alteration, geotechnical characteristics etc. Diamond core is stored at the Company’s warehouse. Logging The CP considers the sampling methodologies to be appropriate for this style of mineralisation. Tesoro consider the data to be of an appropriate level of detail to support a future resource estimation. • Whether logging is qualitative or quantitative in Logging of diamond core was qualitative and diamond core was photographed. nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant All drilled intervals are logged and recorded. intersections logged. Subsampling techniques and sample preparation 13 • If core, whether cut or sawn and whether quarter, half or all core taken. Drill core was cut, and half core was collected for analysis • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. Tesoro has not completed any percussion drilling. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. Collection of half core ensured the nature, quality and appropriateness of the collected sample. +61 8 9322 1587 | info@tesororesources.com.au | Suite 5, 62 Ord Street, West Perth WA 6005 | www.tesororesources.com.au ASX Announcement 23 May 2022 Criteria JORC Code explanation Commentary The sample preparation of crushing half core at the lab to mm size prior to splitting off a 50g charge (either by cone/quarter or riffle) for pulverisation provides an appropriate and representative sample for analysis. Half core was collected for the entirety of the Tesoro drilling, as • Quality control procedures adopted for all subsampling stages to maximise representivity such there was consistency throughout the drilling. Core was logged by a qualified geoscientist. Each subsample is of samples. considered to be representative of the interval. Quality of assay data and laboratory tests • Measures taken to ensure that the sampling is representative of the in-situ material collected, including for instance results for field duplicate/second-half sampling. Sampling of half core is representative of the in-situ material. There are field duplicate samples collected from the diamond core with irregular results. Field drill core duplicates are irregular by nature and it has been recommended by Tesoro’s consultants to use coarse reject material to monitor the sample preparation. • Whether sample sizes are appropriate to the grain size of the material being sampled. Sample sizes collected were considered appropriate to reasonably represent the material being tested. • The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Assays reported in this report were undertaken at the accredited laboratory of ALS Santiago, which is fully certified. Core samples of various lengths were assayed (minimum 0.25m) from which 1kg of material was pulverized passing 200 mesh to produce a 50 g charge for fire assay fusion with gravimetric finish. Multielement assays were completed by 4acid digest with a 2.5 g charge. All techniques are appropriate for the element being determined. • For geophysical tools, spectrometers, handheld Standard chemical analyses were used for grade XRF instruments, etc., the parameters used in determination. There was no reliance on determination of determining the analysis including instrument analysis by geophysical tools. make and model, reading times, calibrations factors applied and their derivation, etc. QAQC procedures included the insertion of Certified Reference • Nature of quality contro