"Novotech Exploration Practises – Rev 1"
2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises Philippines Mining Projects Exploration Practises & Mineral Reserves Declaration Report These guidelines have been prepared to assist the Novotech Middle East & Philippine Czech Mining Company Inc.( further Novotech only)and Qualified Person(s) (further QP(s) only ) in the planning and supervision of exploration programs which will be reported from every individual mining claim in a form of a written QP(s) Interim Report after completion of every individual deployment to the particular Philippine projects/claims -sites and/or presented before the QP(s) departure for rotation or holiday to the Novotech Chief Geologist ( further NCHG only) ,Novotech Vice President Geology and Novotech Chairman of the Board ( further Chairman only). Exploration programs` details will be prepared and managed by NCHG, coordinated with local Chief Operating Officer ( further COO only) and approved by Chairman. Individual Exploration programs will be executed by and under the supervision of the QP in charge for particular program. This QP will be subordinated directly to the NCHG who will be responsible and accountable for the planning, execution and interpretation of all exploration activity as well as the implementation of quality assurance programs, health and safety regulations and reporting. NCHG can appoint his deputies in different locations and/or islands where the exploration works are being executed should the conditions require to do so. 1|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises Novotech Exploration team will always respect legitimate requirements and coordinate with local COO and other local partners. This set of broad guidelines or “best practices” has been drawn up to ensure a consistently high quality of all Novotech deployed QP(s) specialists performance and that their and Novotech`s work will maintain public confidence and assist securities regulators , satisfy potential investors and Novotech partners and Philippine Laws/Mines and Geo Science Bureau requirements and regulations. The guidelines are not intended to inhibit the original thinking or application of new approaches, that are fundamental to successful mineral exploration. Exploration Development Plan results should be summarized and reported in a Mineral Reserves Declaration Report of good professional quality in accordance with the stipulations ,for Philippines projects agreed by partners due to their compatibility and similarity Canadian Institute of Mining, Metallurgy and Petroleum - Canadian Standards on Mineral Resources and Reserves and esp. the National Instrument 43-101 and Form 1 contained in that instrument or the JORC Code – Australian exploration and mining corresponding standard ( or alternatively United States Society of Mining Metallurgy ( SME) and Exploration Inc .Securities and Exchange Commission regulations)NCHG will confirm the governing standard before the commencement of every individual Project. As stipulated in the said Standards all exploration work from which public reporting will ensue must be designed and carried out under the supervision of a Qualified Person (“QP”). A QP is defined as an individual who is an engineer or geoscientist with at least five (5) years’ experience in mineral exploration, mine development, mine operation or project assessment, has experience relevant to the subject matter of the project or report and is a member in good standing of a recognized professional association. 2|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises 1. Qualified Person The Qualified Person may base the exploration program on such geological premises and interpretation of existing information as the QP(s) may decide and select such exploration methods and tools as the QP(s) may judge to be appropriate. Due to the fact that there are working currently several exploration crews in different Philippines islands and exploration sites NCHG in cooperation with local COO will issue an instruction unifying the methodological approach to the exploration works, set up required individual Exploration Development Plans, targets, priorities , time schedules budgets and unify the way of the exploration results reporting . NCHG will determine as well the way and form of handing over by QP(s) the collected data in hardcopies and in digital forms including the feedback for GIS maping department and Land survey teams based at Novotech head office in Cebu. All above mentioned data will be handed over by QP(s) to the NCHG properly evidenced with a copy to Vice President Geology and Novotech Chairman. Novotech company when financing solely the exploration works is the exclusive owner of collected data, reports, maps and any distribution, copying and communication of collected data without prior written consent of Novotech Chairman is strictly prohibited and caused damages will be immediately claimed. Unauthorised release or copying , distributing or communicating of the confidential data in any kind and form will be considered as serious infringement of the individual contracts between the QP(s) and the Novotech/GIS Geoindustry and prosecuted by the law and claimed for respective compensations including all consequential damages resulted thereof. Novotech undertook to handle with the same care and diligence the data entrusted to him and acquired from his business partners and undertake to respect and follow up the same strict procedures towards his Clients, Principals , partners and other claims owners data. 3|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises QP(s) will make sure that the confidential and proprietary data collected and created in the course of exploration works will not be copied, stolen , lost or damaged by negligence or mistake or interpreted before the official Mineral Reserves Declaration Report or the Pre or Feasibility Study are officially released to the final Client/business partner. Novotech reserves hereby also the rights to claim any and all damages including consequentional ones resulted from the data loss and or data misuse or disclosure on the person who will cause the data to be lost, misused or disclosed to the unauthorised third party . It is to be understood that such misuse or diclosure or even partial disclosure may directly or indirectly lead to the fact that the exploration works and efforts of the whole exploration team financed by Novotech will not be properly valued and compensated, data might be preliminary misinterpreted or other way misused and the Novotech Exploration team by this fact might suffer unexpected losses and damages. All members of Novotech Exploration team regardless their position and place of deployment will safeguard Novotech and the Exploration team members interests as well as legitimate interests of Novotech`s Clients, Principals, partners and other claims owners. In case of Partnership Agreement concluded between Novotech and his Clients ,Principals, partners and claims owners the QP(s) will be allowed to share the interim exploration results at any stage of exploration works with Novotech`s partners duly nominated representatives. Such fact will be always clearly confirmed to QP(S) by Novotech`s Chairman before the respective exploration works will commence in writing form in order to prevent any misunderstanding. QPs will report their activities daily to the NCHG, Local COO and Novotech`s Chairman office in the form of Crew Daily Work Record form see enclosure. In case of internet or telecomunication temporary difficulties , QP(s) will prepare their daily report as scheduled in agreed electronic form and 4|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises Novotech`s determined employee will secure that this daily report will be delivered to NCHG, COO and the Chairman`s office. NCHG will also supervise that all works are done in a professional safety and environmentally friendly level while securing the best possible working conditions for Novotech`s QPs and other nominated staff and by this to enable them to work out the timely, comprehensive , valuable reports ,MRDR and Pre and Feasibility Studies for Novotech and his Clients, Principals and/or partners NCHG in close cooperation with local COO will make sure that all Novotech QP(s) are equipped with all required and necessary equipment ,having all needed support of any kind they might be reasonably required by them and that their valuable experience and time are professionally and cost effectively utilised. Novotech`s Supplies and Services department will be subordinated to this effect to the NCHG and will be fulfilling his orders and instructions in this respect. No QP(s) will be deployed to Philippines without prior Chairman`s or NCHG approval and setting up and clear determination of their detailed working programme , priorities, Projects definition on which they will be engaged and start (continue) working on and before they will be properly prepared for the deployment in the Czech republic. As soon as all necessary conditions will be well prepared for the deployment ( including local accommodation, internet connection, security measures, local transport, coordination with local Novotech partners, local COO and Land Survey team etc ) the clear Call for Deployment from the NCHG will confirm the exact date of QP(s) requested arrival. In planning, implementing and supervising any exploration work, the Qualified Person should ensure that the practices followed are based on criteria that are generally accepted in the industry or that can reasonably be justified on scientific or technical grounds ( see sample of U.S.A. - SME guidelines in the Enclosure). 5|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises 2.Geological Concept The geological premise on which the exploration work is conducted including the deposit type, geological setting and style of mineralization sought, should be supported by relevant field data and a reasoned scientific approach. 3. Quality Assurance and Control Throughout the process of mineral exploration, the QP(s) should ensure that a quality assurance program is in place and that any required quality control measures are implemented. Quality assurance programs should be systematic and apply to all types of data acquisition, across the full range of values measured and not only high or unusual results. 4. Exploration Methods & Data Collection Field work is to be planned and implemented under the direct supervision NCHG and respective QP(s). Data should be daily properly recorded and documented at appropriate scales. All data points should be accurately GPS located with respect to known reference points and transferred in line with NCHG instructions to Novotech`s GIS department and documented in the Field Primary Log Book which will be given to the Exploration Crews by Novotech head office staff and will be numbered as well as its pages. The QP(s) supervising this work should ensure that any work by employees, contractors or consultants is done by competent personnel and that appropriate quality assurance programs and safety/security procedures are practised and strictly kept. Whenever several persons carry out similar duties or when the data has been collected over a period of time, care should be taken to ensure the quality and consistency of the data being used. QP(s) will send their daily and weekly reports ( Crew Daily Work Records, Weekly Work Forecast Reports) as per prescribed brief form to the NCHG , local COO and Novotech Chairman and will make all precautions to safeguard the collected detailed data from their Field Primary Log Books. All intermediate drafts, reports and notes can be done in the Czech language. 6|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises The Interim Reports, Daily Records and Weekly Forecasts, Mineral Reserves Declaration Reports and Pre or Feasibility Studies will be drafted in English. Field Primary Log Books mentioned above will be handed over to the NCHG before the QP(s) will start their return trip for rotation( holidays). 5. Records and Data Verification The exploration process including planning, mapping, sampling, sample preparation ,sample security and analysis or testing should be accompanied by QP (s) detailed record keeping setting out the procedures followed, the results obtained and the abbreviations used. In addition to paper records, digital storage of all data is required and for this purpose every crew consisting of two QP(s) will be equipped with the laptop computer and will keep the data in electronic form in the standard format on and always regularly backed up on reliable back up medium. A program of data verification will be in place to confirm the validity of exploration data that are entered into the Novotech`s database. Data will be collected, processed and inserted in the GIS Novotech`s database. A summary of daily records should be included by QP(S) in a brief periodic Monthly Interim Report produced and signed by the QP(s)and the NCHG with a copy to Novotech Vice President Geology and Chairman. All practices used should be carefully and well documented and justified. 6. Sampling The practices and procedures used in each sampling program should be appropriate for the objectives of the individual Project target and program. All sampling programs should be carried out in a careful and diligent manner using scientifically established sampling practices designed and tested to ensure that the results are representative and reliable. 7|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises Samples should be always collected under the supervision of a QP(s). Quality control programs appropriate to the type of sample and the mineralization should be prepared and planned by NCHG and implemented by QP(s). These programs should include such measures as external blanks, standards and duplicate samples. For selected operations it might be required to collect up to 4 samples in order to be able to secure the deposit of one sample at independent location ,second sample to send for analysis in the independent laboratory, third sample to retain and analyse in Novotech in house laboratory and fourth sample to hand over to Novotech Philippine Client , Principal and /or partner and claim owner. Detailed procedure will be determined by the NCHG case by case as per individual claims and agreements. Where the volume of individual samples is reduced prior to shipping to a laboratory for analysis, appropriate reduction procedures to obtain representative sub samples should be applied and verified. 7. Drilling The drilling method will be selected by a QP(s),coordinated with local COO and approved for execution by the NCHG and should be appropriate to the material being investigated, the objective of the drilling program and local drilling conditions. The drill hole size selected should provide sufficient representative sample material for analysis and reference. Surface and down hole locational surveys should be undertaken using techniques appropriate for the hole size, angle and length of holes. A representative fraction of the drill sample material should be always retained for further analysis and detailed description and core logs drafted, however if material is not retained, the QP(s) should report and explain the reason for this decision. In such a case always prior approval for such a decision must be requested by QP(s) from the NCHG stating valid reasons for such proposal/decision. 8|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises Drill logs, forms or software specifically suited to the type of drilling, the particular geological situation, and the minerals being sought, should be used for detailed geological logging of core or cuttings. Logs should be appropriately detailed for the type of drilling being conducted, the geological setting, type of mineralization, and geotechnical conditions. Core or sample recoveries should be carefully noted on the logs and properly stored in a secure location. Cross sections depicting basic geology and hole data, including correlation with surface geology and any nearby holes should be developed and updated as drilling proceeds. Any down hole geophysical information or other such surveys should also be kept with the drill log. A photographic record of the core will form a part of the QP(s) exploration Interim Report as well as Mineral Reserves Declaration Report and/or Pre or Feasibility Studies. 8. Sample Security The security of samples from sample acquisition to analysis is a vital component of the sampling process. Procedures should include the use of secure core logging , sampling, storage and preparation facilities, as appropriate, and the prompt, secure and direct shipping of samples to the laboratories. The QP(s) should endeavour to put in place the best security procedures practical, given the geographic and topographic conditions and the logistics created by the site location. 9. Sample Preparation The selection of sample preparation procedures and the places should be approved by the QP and NCHG and should be appropriate to the material being tested, the elements being analysed and should be subject to the security measures as stated above. All samples that are reduced or split should be processed in a manner such that the fraction analysed or tested is as representative of the whole sample as possible. Representative fractions of the material to be analysed or tested should be retained for an appropriate period of time, as decided by the QP and 9|Page CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises confirmed by NCHG . Quality control checks should be undertaken as determined by the QP and confirmed by the NCHG. 10. Analysis and Testing Analysis and testing of samples should be done by a reputable and accredited laboratory qualified for the particular material to be analysed or tested as per instruction of the NCHG. In house reputable and accredited Gematest laboratory in the Czech republic or Canadian ACME Laboratories or similar can be used for the standard samples as well as the reputable Philippine laboratories ( University SC Cebu etc) and to be newly established Gematest laboratory in Philippines. The selection of a laboratory, testing or mineral processing facility and the analytical methods used will be the responsibility of the QP and always confirmed by the NCHG. NCHG will make sure that all relevant and proper records about the analysis executed will be kept and the results properly stored, digitalised and inserted in Novotech GIS data/mapping system. The analytical methods chosen must be documented and justified. All analytical or test results should be supported by duly signed certificates or technical reports issued by the laboratory or testing facility and should be accompanied by a statement of the methods used. The reliability of the analytical and testing results should be measured using the results of the quality control samples inserted in the process by the QP. Duplicate analyses at other laboratories should be undertaken if justified 11. Interpretation A comprehensive and ongoing interpretation of all the exploration data is an essential activity at all stages of the project and should be undertaken to assess the results of Novotech Exploration Team`s work. This interpretation should be based on all of the information collected to date, be systematic and thorough, describe and document the interpretation and discuss any information that appears at variance with the selected interpretation. 10 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises The density of the exploration data should be critically assessed as to its ability to support the qualitative and quantitative conclusions. 12. Mineral Resource and Reserve Estimation Estimation of a mineral resource and a mineral reserve are both fundamental steps in creating the comprehensive and accurate Pre or Feasibility Studies , Mineral Reserves Declaration Reports and decisions which will determine future Projects and alternative Mines development. The classification and categorization of these estimates must be done in accordance with CIM ( Canadian Standard) and its National Instrument 43-101 or the JORC Code regulations/SME Guide and be prepared by a QP(s) and verified /approved for release by the NCHG. The methods and parameters used in making these estimates should be in accordance with the principles generally accepted in Canada, Australia, U.S.A and international best professional mineral resources/reserves estimation quality practises and should be presented and justified with the estimate. A mineral resource can be estimated for material where the geological characteristics and the continuity are known or reasonably assumed and where there is the potential for production at a profit. Reserves can be estimated when a positive Pre Feasibility or Feasibility study as defined by CIM NI 43-101 or JORC/SME has established the technical, economic and other relevant factors that indicate that these resources can be produced at a profit. Reserve estimates should be based on input and information from a multidisciplinary team under the direction of QP(s) and the NCHG. Probable Mineral Reserves estimate which is the economically mineable part of Indicated and in some circumstances Measured Mineral Resource include diluting materials and allowances for losses which may occur when the material is mined. Appropriate assessments and studies should have been carried out and include consideration of and modification by realistically assumed mining, 11 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises metallurgical, economic, marketing, legal, environmental, social and governmental factors. These assessments should clearly demonstrate at the time of reporting that extraction of the selected minerals could be reasonably justified. Public disclosure of Mineral Reserves is allowed strictly and only after completion of a technical and economic study whose results and supporting documentation form a Mineral Reserves Declaration Report as per valid industry regulations and standards. Mineral Reserves Declaration Report is the result of a properly defined, adequately scoped and professionally executed study of the viability of a mineral project. The Pre or Feasibility Study must have advanced to the stage where mining and mineral processing methods are defined and permitting is determined to be feasible. Realistic production and/or sales schedules must have been developed for the life of the project, including estimates of capital and operating costs. For projects with very long life the study must be sufficient to justify investments needed for current and planned production as well as ongoing investments which will be needed to maintain long-term operations. The Pre and Feasibility Study must include a financial analysis based on realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors that is sufficient for a QP(s) acting reasonably to determine if all or part of the Measured and Indicated Mineral Resource may be converted to Mineral Reserve. 13. Environment, Safety and Community Relations All field work should be conducted in a safe, professional manner with due regard for the environment, the concerns of local communities and local Indigenous people their traditions and customs and with regulatory requirements. 12 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises An environmental program, including baseline studies, appropriate to the stage of the every individual Project will be carried out. 14. Recommendations The interpretation and assessment of the Exploration works results at the end of each phase should determine if the Exploration objectives have been met and if further work is justified. Any plan for further work should identify and precise exploration targets, recommend an Exploration Development Plan and present a budget and respective time schedule of this Plan. Any changes in working hypotheses and objectives should be recorded and without any delay raised for further decision to the NCHG COO and the Novotech Vice President Geology and Chairman. 15. Technical Reporting A comprehensive Interim Report signed by the QP(s) should be prepared on completion of a particular phase or stage of work following the format presented in Form 1 of the National Instrument 43-101 or respective JORC Code/SME instrument or the format prescribed by the NCHG based on above mentioned standards before every departure of the QP(s) to the rotation or holiday. 16.Geological Exploration Crew A Crew consists of 2 QP(s), local technician and/or driver and other necessary person (security coordinator) associated to the local conditions. Every Crew has a Crew manager responsible for a Crew operation, fulfilment of work targets, schedules, daily reporting, discipline and operations budget. A Crew manager subordinates to NCHG and Chairman. A Crew work is continuously supervised and coordinated by the NCHG and strictly coordinated with local partners managed by the COO. A Crew can be extended by local geologists or other specialists upon a Crew manager request submitted to the NCHG. As soon as the local geologists will be properly trained the Crew may consist of only one QP , 13 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises technician, local geologist and other necessary person ( security coordinator ) A Crew manager receives from the head office advanced financial facilities for operational purposes and agreed payment titles. In case of emergency or extraordinary cases Crew manager is entitled to take decision himself to act in order to protect himself, his staff, Novotech interests as well as legitimate interests of the Client, Principal and or partners or claims owners. Such money shall always be cleared against correct invoices. 17.Equipment Equipment provided by the head office for a Crew shall be used for the agreed and determined purposes only, registered at the QP (s)Personal Inventory Card and maintained properly by the QP who receives it from the head office. Such equipment shall be returned (and return will be confirmed by Novotech in writing in a form of a short protocol) back to the head office inventory staff before leaving the Philippines. 18.Accommodation and Food A crew staff is accommodated in selected accommodation facilities by Novotech Operational Coordinator and confirmed by the decision of NCHG at a convenient local and close to the work facility. An accommodation bill is paid or redeemed by the QP(s) or Novotech Operational Coordinator against a correct invoice as per enclosed form. It is not allowed (unless it is agreed in advance) to use bars, restaurants, leisure, other services and telephones provided for an extra charge in a hotel for Novotech account. 14 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises International telephone calls with exception of emergency calls are not allowed without prior notification and consent of NCHG or Chairman. Such bills cannot be redeemed and shall be paid by the individual persons ordering the respective services or goods. Food and drinks are not the responsibility to provide by Novotech as per valid contracts with Novotech employees and/or QP(s)and is a matter of every individual employee or QP. In order to facilitate and support the smooth operations and good quality of care, food and drinking regime every recognized member of the Crew regardless Czech , Philippine or other origin working in the field may be provided with the additional bonus - in dependence upon the Crew exploration results and work conditions. Novotech Operational Coordinator will always close the accommodation bill and confirm its correctness by his signature No further food or beverages invoices will be accepted by Novotech Operational Coordinator for payments. Crew Manager will have accountable cash advance financial facilities from the head office for covering of unforeseen expenses, contingencies and or hosting VIP Clients and partners. 15 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises It is highly recommended to use checked food and water only. Use of unknown street food vendors is not recommended. 20.Travel Every travel is a subject of the Travel plan registered in advance before the travel will commence and will be stated in the Daily Crew Work Record and Weekly Work Forecast Reports and approved by the Crew Manager if it will be in the limit of the agreed claim to be explored by the Crew. In case that the travel will be for another claim than planned in the same island the NCHG advance approval will be required before the travel will commence. In case that the travel planned is to be effected crossing the different islands the NCHG /Chairman`s advance approval is required. If a Crew travels by 2 cars, both cars must always travel together. The Crew utilizes a company cars for its purpose if possible. All Crew members obliged to use and maintain the car and company equipment in a best possible manner and conditions. The car must be in good technical order, fuelled, tyres checked before every trip and as well as car safety devices . Car accessories has to be completed with all necessary tools, spares, water, the work equipment and first aid package. The head office issues for a Crew manager advance money for fuel and emergency maintenance and service. Regular car`s and equipment maintenance and services will be provided by the Novotech Technical Services and Supplies Department. Daily maintenance care will be provided to the car by the Crew using it. 16 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises Crew Manager is to organize job in a way that night car travel is not necessary. Night driving is extremely dangerous and requests considerably low speed and the highest attention for not lighted objects and events/obstacles on the road. 21.Communication Every Crew is equipped by one local mobile phone with prepaid card and sophisticated GPS. It is allowed for local calls and international SMS only. A phone is loaded by connection numbers for a Crew usage. Technical Services and Supplies Department will arrange and/or recommend Internet connection place for regular use. For a field operational purpose 2 public mobile radios (PMR) will be available for every Crew. It will work in the vicinity up to 3 km depending on terrain conditions. Every Crew member will be provided for easy internet telecommunication with SKYPE address for using the VOIP technology 22.Work The first eight weeks of QP(s) Crew work are executed in Philippines followed by two weeks of work / leave in the Czech Republic ( rotation) however this timing can change upon an agreed arrangement. This time schedule forms a one work rotation shift of a Crew that will repeat successively. QP(s) Working week in Philippines consists of 7 working days and should the Crew manager decide to shorten it related costs will be compensated to the Novotech or the leave in the Czech Republic will be shortened accordingly. 17 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises The work is adjusted according the individual Claim Exploration Development Plan and Schedule and daily confirmed by the Daily Crew Work Record which is to be daily elaborated and daily sent or communicated to the NCHG. If there is Internet not available Daily Crew Work Record can be Temporarily communicated by phone and Daily Work Crew Records will be handed over to the head office by Novotech Operational Coordinator for the later delivery to NCHG ,COO Vice President Geology and Chairman A Crew manager pre-plan and prepare work in advance with the NCHG and the local partners/COO. The plan shall define a target(s), way of reporting, necessary support provided by head office, progress stages timing, claim`s exploration works milestones. Till the end of the QP(s) mission and deployment on Site any and all work procedures are internal only and must be kept strictly confidential. It is strictly requested not to release information about temporary results to any not authorized person(s) in order to avoid data misinterpretation and in order to protect Clients ,Principals or partners and claims owners interests. The NCHG will issue detailed rules for a sampling procedures, GPS marks, GIS mapping and way of work and interim communication for every particular mining claim. 18 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises The Crew work will result in the Interim Reports and finally in the Mineral Reserves Declaration Report and/or Pre or Feasibility Study(ies) of the respective Claim - Mining Project It is the QP(s) work result and obligation of the entire Crew, NCHG and the head office to facilitate and create the best and most accurate Mineral Reserves Declaration Report and Pre and/or Feasibility Study.. 23.Safety Novotech will be operating in a friendly but within a foreign territory. All expatriates as well as other Crew nominated members are obliged to know and follow/obey local laws, rules and procedures and follow up and strictly adhere to the recommendations given by the Novotech`s head office and Philippine Authorities. In a case of unexpected situation always the Novotech head office must be consulted and informed in the soonest possible time. Basic work safety tool is the Daily Crew Work Record. It will not only give a work feedback but tracks a Crew for the next day. For local reasons in some territories the Crew shall operate with local security coordinators. It is necessary to follow and strictly obey their instructions. Communication to local citizens in remote areas and unknown places should be minimized unless it is necessary. Any extraordinary event must be reported at the soonest possible time to the NCHG , local COO, Vice President Geology and Chairman/ head office. 19 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises 24.Health Work in a tropic environment is specific. Any newcomer must be vaccinated upon official recommendation. In the field corresponding to the local conditions it is advisable to wear boots and long sleeves and trousers. Use regularly insect repellent to avoid bits. It is forbidden to enjoy swimming in fresh water. It is forbidden to drink water from not secured water resources. Be always aware of local natural alive and nature generally. Be careful while working on unknown territories and report to Novotech head office and NCHG any unexpected not ordinary staff health circumstances . In case of any accident inform immediately the NCHG , COO and Chairman/head office. Every Crew must keep fresh and full its first aid kit,and every Crew member is responsible to wear protective device(s) and safety helmets. 25.Environment Protect environment by our best European practice. Our Exploration works should not harm environment and our works` impact to virgin lands must be minimized. 26.Office The particular islands` operation bases and head office in Cebu serve as a leading and backing up entities for the entire Novotech operations. 20 | P a g e CEO Rev 1 June 2 n d 2008 2008 Novotech Middle East W.L.L. Philippine Czech Mining Company Best Exploration Practises It organizes work agenda, budget, reports, sales policy and corporate policy. These offices take care about all affaires allowing Crews operation within the selected locality. The offices organize work plan, rotations, air tickets, visa and further requirements and needs for our successful operation in Philippines and Asia Pacific Region. Cebu June 2nd ,2008 21 | P a g e CEO Rev 1 June 2 n d 2008