TECHNICAL REPORT ON THE NKULUWISI PROPERTY, MBEYA, TANZANIA Prepared for Great Basin Gold Rusaf Gold Ltd. NI 43-101 TECHNICAL REPORT AUTHORS: NATHAN ERIC FIER, C.P.G., P.ENG. NOVEMBER 30, 2009 PAGE 1.0 SUMMARY.......................................................................................................................................... 1 1.1 Executive Summary.................................................................................................................. 1 2.0 INTRODUCTION AND TERMS OF REFERENCE.............................................................................. 4 3.0 RELIANCE ON OTHER EXPERTS .................................................................................................... 5 4.0 PROPERTY SITE DESCRIPTION AND LOCATION.......................................................................... 6 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY 9 6.0 HISTORY ............................................................................................................................................ 9 7.0 GEOLOGICAL SETTING.................................................................................................................. 10 8.0 DEPOSIT TYPES.............................................................................................................................. 13 9.0 MINERALIZATION ........................................................................................................................... 14 10.0 EXPLORATION ................................................................................................................................ 16 11.0 DRILLING ......................................................................................................................................... 18 12.0 SAMPLING METHOD AND APPROACH......................................................................................... 19 13.0 SAMPLE PREPARATION ANALYSIS AND SECURITY ................................................................. 20 14.0 DATA VERIFICATION...................................................................................................................... 21 15.0 ADJACENT PROPERTIES............................................................................................................... 22 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING ........................................................ 22 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES ................................................... 22 17.1 Mineral Resources.................................................................................................................. 22 18.0 OTHER RELEVANT DATA AND INFORMATION............................................................................ 33 19.0 INTERPRETATION AND CONCLUSIONS....................................................................................... 33 20.0 RECOMMENDATIONS..................................................................................................................... 33 TABLES Table 1 Nkuluwisi Mineral Resource Summary – Base Case Table 2 Nkuluwisi Mineral Resource Summary for Various Cutoff Grades Table 3 List of Abbreviations Table 4 Mineral Concessions Table 5 Core Samples Reviewed During Site Visit Table 6 Most Significant Drill Results Table 7 Statistics of Data Provided to EBA Table 8 Non Declustered Composite Statistics Table 9 Measured Resource Estimate for Nkuluwisi – Cumulative Totals Table 10 Indicated Resource Estimate for Nkuluwisi – Cumulative Totals Table 11 Inferred Resource Estimate for Nkuluwisi – Cumulative Totals Table 12 Nkuluwisi Mineral Resource Summary – Base Case Table 13 Nkuluwisi Mineral Resource Summary for Various Cutoff Grades Table 14 Nkuluwisi Mineral Resource Summary – Base Case Table 15 Recommended Phase III Exploration Drilling at Nkuluwisi and Lupa FIGURES Figure 1 Property Location - Lupa Goldfields, Tanzania Figure 2 Nkuluwisi Property and Adjacent Mineral Claims (PLs) Figure 3 Regional Geology Figure 4 Local Geology with Exploration Potential and Recommendations Figure 5 Block Model Isoshells Figure 6 Regional Geophysics Figure 7 Local Geophysics Figure 8 Drill Hole Location Map Figure 9 Block Model Long Section with Trends Figure 10 Block Model Cross-Sections (1) Figure 11 Block Model Cross-Sections (2) Figure 12 Local Exploration Potential 1 1.0 SUMMARY 1.1 EXECUTIVE SUMMARY EBA Engineering Consultants Ltd. (EBA) of Vancouver, BC, was retained by Great Basin Gold Rusaf Gold Ltd. (GBGR) to prepare an independent Technical Report on the Nkuluwisi gold property in southern Tanzania. The purpose of this report is to support an initial Mineral Resource estimate. This report was prepared in accordance with the National Instrument 43-101 (NI 43-101) standards and is date November 30, 2009. GBGR has completed an exploration program consisting of sampling and drilling sufficient to complete a Mineral Resource estimate. These estimates are stated in Tables 1 and 2 which compile with CIM definitions for Resource and Reserve Estimations. TABLE 1: NKULUWISI MINERAL RESOURCE SUMMARY - BASE CASE * Category Measured Resource Indicated Resource Inferred Resource Resource (tonnes) 553,500 2,147,850 4,582,600 Grade (g/t) 0.93 0.86 0.91 Grams 515,600 1,867,500 4,198,100 Resource (tons) 610,100 2,367,600 5,051,400 Grade (oz/ton) 0.027 0.025 0.026 Total Gold (oz) 16,600 60,000 135,000 * Numbers are rounded. Composites capped at 7.2 g/t gold. Cut-off grade of 0.5 g/t gold based on a gold price of US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources. In EBA’s opinion, the classification of the Mineral Resources as stated is appropriate and conforms to the definitions of NI 43-101 and the CIM Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on December 11, 2005. A summary of the resource at various cutoff grades is presented in Table 2. TABLE 2: NKULUWISI MINERAL RESOURCE SUMMARY FOR VARIOUS CUTOFF GRADES * Category Measured Resource Indicated Resource Inferred Resource Cutoff Grade 1.0 Resource (tonnes) 147,825 491,400 1,459,350 Grade (g/t) 1.63 1.54 1.42 Grams 240,933 754,653 2,081,182 Resource (tons) 162,947 541,670 1,608,642 Grade (oz/ton) 0.047 0.045 0.041 Total Gold (oz) 7,740 24,260 66,910 Cutoff Grade 1.5 2 Resource (tonnes) 71,887 215,325 286,200 Grade (g/t) 2.06 1.88 2.03 Grams 148,437 405,875 582,980 Resource (tons) 79,241 237,353 315,478 Grade (oz/ton) 0.060 0.054 0.059 Total Gold (oz) 4,770 13,050 18,740 Cutoff Grade 3.0 Resource (tonnes) 3,712 - 6,412 Grade (g/t) 3.23 - 3.38 Grams 11,994 - 21,733 Resource (tons) 4,092 - 7,068 Grade (oz/ton) 0.094 - 0.098 Total Gold (oz) 390 - 700 * Numbers are rounded. Composites capped at 7.2 g/t gold. Cut-off grades are variable based on a gold price of US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources. In EBA’s opinion, the classification of the Mineral Resources as stated is appropriate and conforms to the definitions of NI 43-101 and the CIM Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on December 11, 2005. The initial GBGR objectives for exploring the Nkuluwisi property in 2008 were to prove the existence of a minimum of 500,000 ounces of gold at a grade of greater than or equal to 1.5 g/t gold. This target size was not achieved during the 2008 drill program due to a less than expected mineralized grade and numerous holes were placed by GBGR staff with no independent consultation and drilled in areas which were inconsistent with the mineralized trend and surface outcrop of mineralization. The mineralized zone at Nkuluwisi is up to 30 metres wide with a majority of the current resource considered potentially open pittable making it possibly attractive at lower (1 g/t gold) grades. Recommendations include further compilation of all surface geological, geophysical, geochemical and structural data to evaluate areas where further drilling might be warranted at Nkuluwisi and nearby targets. The southeast extension of the Nkuluwisi mineralization is considered to have the highest exploration potential and further drilling would be targeted along trend and to depth. Exploration priorities should focus on additional drilling to target the +1 km long mineralized Nkuluwisi zone at 100 m centers totalling approximately 2000 m drilling. Drilling of other targets in the Lupa district is recommended with approximately 2000 m of drilling. This further exploration drilling at Nkuluwisi and Lupa district is recommended at a minimum cost of approximately US$1.2 million. With exploration success, an additional US$3 million is suggested. With this additional drilling and exploration success, the minimum target of 500,000 ounces of gold at a grade greater than or equal to 1.5 g/t gold is potentially achievable. 3 Technical Summary The Nkuluwisi gold prospect is located approximately 15 km northwest of the village of Saza, within the Lupa Goldfield in south-western Tanzania. The Lupa Goldfield occupies a triangular area of about 2,600 km2, approximately 850 km from Dar es Salaam and 80 km northwest of the commercial centre Mbeya. Under Tanzanian Mineral Law, a Prospecting Licence (PL) can be retained for 7 years after the date of paper filing with the Tanzanian government. No government work commitments apply to the PL’s. A 3% gross royalty applies to production. Nkuluwisi gold mineralization is hosted within a felsic and mafic intrusive complex and occurs in one of two structural corridors (the second termed “Rukwa”), which are defined by elongate magnetic susceptibility lows. The Nkuluwisi zone is a zone of major displacement 20 km long and up to 1.8 km wide. It is known to contain about a thousand auriferous quartz veins. Historical production from the Lupa Goldfields is estimated to be over 23 tons of gold produced from about 80 sites in placers, rubble zones and lodes. Lode mining began in 1934 at Ntumbi and in 1939 at New Saza. The New Saza mine (1939-65) produced 8.4 tons of gold grading 7.5 g/t, and the Ntumbi mine (1937-65) produced 1.7 tons of gold grading 12.1 g/t (unverified from Taiga Consultants Ltd). A total of 18.6 tons of gold have been reported (unverified) from the Lupa area, but it is estimated that production has actually exceeded 30 tons. A total of 111 drill holes totalling 13,440 m and 49 surface samples were drilled and sampled along an approximately 1 km long strike length through an approximate 50 m wide corridor and to a depth of 100 m. Of these drill holes and surface samples 41 drill holes and 18 surface samples are within the block model area which was used to evaluate the resource. Section-line spacing along the identified mineralized zone is approximately 125 m. There are also several drill holes outside of the main target zone, approximately along strike of the shear structure, for an additional 500m east and west of the main target area. The resource estimate was carried out using a block model constructed in GEMS (Gemcom). The block model consisted of blocks measuring 5 m by 5 m by 5 m. No rotation was applied to the model. Grade for gold was interpolated into blocks using Inverse Distance to the 5th power (ID5). 4 2.0 INTRODUCTION AND TERMS OF REFERENCE At the request of GBG Rusaf Gold Ltd., a subsidiary of Great Basin Gold Ltd., EBA Engineering Consultants Ltd.(EBA) of Vancouver, BC, carried out a resource estimation for the Nkuluwisi gold property. The Nkuluwisi site is controlled by Shield Resources Ltd. (Shield)., which is 100% owned by Rusaf Gold Ltd., with 40% owned by Great Basin Gold Ltd. EBA has relied upon Great Basin Gold and its subsidiaries for supplying the geological information, background data and drill data base that are used in this report. This report was prepared in accordance with the National Instrument 43-101 (NI 43-101) standards of reporting. Resource estimation conforms to the CIM mineral Resource and Mineral Reserve definitions referred to in NI 43-101, Standards of Disclosure of Mineral Projects. The effective date of this report is November 30, 2009. Shield’s assets at Nkuluwisi include a tent camp, fenced core cutting and storage area, and miscellaneous vehicles. Sources of Information A site visit was carried out by N. Eric Fier, CPG, P.Eng. of EBA during the period of August 8 to 15, 2008. During the site visit, discussions were held with personnel from GBGR on exploration activities. Documentation reviewed is listed at the end of this report in Section 21. Units of measurement used in this report conform to the SI (metric) system as shown in Table 3, unless otherwise noted. Total contained gold is present in imperial measurements (Troy ounces; 31.1035 grams), as is the custom in the exploration industry. TABLE 3: LIST OF ABBREVIATIONS µ Micron kPa Kilopascal °C degree Celsius kVA kilovolt-amperes °F degree Fahrenheit kW Kilowatt µg Microgram kWh kilowatt-hour A Ampere l Litre A Annum l/s litres per second bbl Barrels m Metre Btu British thermal units M mega (million) C$ Canadian dollars m2 square metre Cal Calorie m3 cubic metre Cfm cubic feet per minute min Minute Cm Centimeter masl metres above sea level cm2 square centimeter mm Millimeter D Day mph miles per hour 5 TABLE 3: LIST OF ABBREVIATIONS dia. Diameter MVA megavolt-amperes dmt dry metric tonne MW Megawatt dwt dead-weight ton MWh megawatt-hour Ft Toot m3/h cubic metres per hour ft/s foot per second opt, oz/st ounce per short ton ft2 Square foot oz Troy ounce (31.1035g) ft3 cubic foot oz/dmt ounce per dry metric tonne g Gram ppm part per million G giga (billion) psia pound per square inch absolute gal Imperial gallon psig pound per square inch gauge g/l gram per litre RL relative elevation g/t gram per tonne s Second gpm Imperial gallons per minute st Short ton gr/ft3 grain per cubic foot Stpa Short ton per year gr/m3 grain per cubic metre Stpd Short ton per day hr Hour t metric tonne ha Hectare tpa metric tonne per year hp Horsepower tpd metric tonne per day in Inch US$ United States dollar in2 Square inch USg United States gallon J Joule USgpm US gallon per minute k kilo (thousand) V Volt kcal Kilocalorie W Watt kg Kilogram wmt wet metric tonne km Kilometre yd3 cubic yard km/h kilometre per hour yr Year km2 square kilometre 3.0 RELIANCE ON OTHER EXPERTS This report has been prepared by EBA of Vancouver, BC Canada. EBA has relied on others for information contained within this report. EBA makes no guarantees nor does EBA warrant the reliability of information. EBA used information from provided reports under the assumption that they were prepared by Qualified Persons. The information, conclusions, opinions, and estimates contained herein are based on: • Information available at the time of preparation of this report; • Assumptions, conditions and qualifications as set forth in this report; and • Data, reports and other information supplied by Great Basin Gold and its subsidiaries. The following reports and data were provided to EBA by Great Basin Gold and its subsidiaries: 6 • Shield Resources Quarterly Report, July 2008 top September 2008. • A PowerPoint presentation titled “Shield Resources, Lupa Goldfields” by Protocol Exploration and Mining Services Ltd. • Multiple Microsoft Excel spreadsheets which included assay results for gold, primary, secondary and tertiary geology classifications, and survey data from each borehole. • Excel worksheet containing Shield Gold Properties in the Lupa Goldfields with prospecting licences list updated March 23, 2007. • Other miscellaneous documents, spreadsheets, figures and presentations. 4.0 PROPERTY SITE DESCRIPTION AND LOCATION The Nkuluwisi gold prospect is located approximately 15 km northwest of the village of Saza, within the Lupa Goldfield in south-western Tanzania. The Lupa Goldfield occupies a triangular area of about 2,600 km2, approximately 850 km from Dar es Salaam and 80 km northwest of the commercial centre Mbeya. The property is located along trend with Helio Resources targets within the Saza and Kenge Shear Zones. The property consists of 38 contiguous concessions (PL’s) of which 2 include the Nkuluwisi property. The Nkuluwisi concessions are approximately 458 square kilometres. 7 8 Ownership and concession history of the Nkuluwisi property were reviewed by EBA. Figure 2 presents the current Nkuluwisi Property and adjacent mineral claims (PLs). Table 4 presents a list of mineral claims and ownership for the Nkuluwisi property. TABLE 4: MINERAL CONCESSIONS Initial Expiry Name Lease No. Status Area (SQ KM) Issue Date Date Nkuluwisi PLR 1941/2002 Active, 305.8 June 5, 2002 June 4 2004 Renewed Nkuluwisi PL 3593/2005 Active, 152.9 Sept 21, 2005 Sept 20, 2008 Renewed 9 Under Tanzanian Mineral Law, a Prospecting Licence (PL) can be retained for 7 years after the date of paper filing with the Tanzanian government. No government work commitments apply to the PL’s. A 3% gross royalty applies to production. 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY Physiography The Lupa Goldfield forms a highland, reaching elevations of well over 2,500 m, and is bounded to the southeast and southwest by low lying alluvial plains separated from the highlands by Cenzoic Rift Valley faults. The Lupa Goldfield is capped by a mature erosion surface typical of the Central Plateau. Tilting has caused rejuvenation of the drainage with incision of streams and consequent exposure of mineralized zones, which would otherwise be covered by surface debris. Accessibility Access to the Lupa Goldfield is by gravel road from Mbeya, a town situated on the TAZARA railway line. Mbeya is also served by the paved highway from Dar es Salaam to Zambia. An airport is currently under construction. Local Resources The village of Saza, located approximately 15 km from the property has a population of approximately 5,500. Main road access (improved dirt) is from the city of Mbeya which is located 200 kilometres south of the property or approximately a 4 hour drive. Mbeya, the capital of the region has a population of est. 120,000 and more services are available to support an exploration and mining operation. Climate Tanzania is located immediately south of the equator, and thus seasonal temperature variations are not extreme. The hottest months are from October to May, while cooler weather prevails from May to September. The rainy season is from November to May, and the dry season from June to October. Year-round temperatures near Mbeya range from - 6ºC in the highlands to 29ºC in the lowlands. Average annual rainfall is around 900 mm, with the rainy season being from November to May. 6.0 HISTORY Historical production from the Lupa Goldfields is estimated to be over 23 tons of gold produced from about 80 sites in placers, rubble zones and lodes (various company websites and presentations, e.g. Seab Gems Inc, Helio Resource Corp., Obtala Resources PLC.). Lode mining began in 1934 at Ntumbi and in 1939 at New Saza. The New Saza mine (1939- 65) produced 8.4 tons of gold grading 7.5 g/t, and the Ntumbi mine (1937-65) produced 1.7 tons of gold grading 12.1 g/t (unverified from Taiga Consultants Ltd). A total of 18.6 10 tons of gold have been reported (unverified) from the Lupa area, but it is estimated that production has actually exceeded 30 tons. In the late 1990s, exploration companies such as Ormonde Mining, Princes Resources and Anmercosa Exploration (AngloGold) conducted systematic exploration work at various localities within the Lupa Goldfield. The work included geochemical, geophysical and geological surveys. Discovered mineralization has been confined to quartz veins and narrow shear zones. Systematic studies of the area include regional mapping by the Geological Survey of Tanzania. A 1970-74 study (not available to EBA) included geophysics, drilling and alluvial testing by TECHNOEXPORT, a Soviet exploration group. 7.0 GEOLOGICAL SETTING Regional Geology Most of Tanzania is underlain by the Tanzanian Craton, which consists predominantly of Archean granites and greenstones, ranging from greenschist to lower amphibolite facies, and subdivided into mafic volcanic rocks with immature basin sedimentary rocks of the Kavirondian Supergroup. Higher-grade metamorphic units (gneisses, schists, amphibolites, migmatites and quartzites) of the Dodoman Supergroup predate the granite-greenstones within the southern and south-western parts of the craton. Archean (post granite- greenstone) granodiorites and tonalites make up the rest of the craton, particularly in the northern part. The Tanzanian Craton is flanked by three major belts on its south-western, southern and eastern sides. The Paleo-Proterozoic Usagaran mobile belt flanks the eastern and southern margins and consists mainly of granulites and biotite gneiss with quartzites. The Paleo- Proterozoic Ubendian mobile belt flanks the southern and south-western margins and consists of mainly gneiss with mafic and ultramafic intrusions, late granites and minor marbles. The Karagwe-Ankolean mobile belt flanks the north-western margins and consists of granites, argillites, phyllites, low-grade sericite schists and quartzites. Post-orogenic granites, gabbros, anorthosites, peridotites, pyroxenites and serpentinites intrude the craton and marginal mobile belts. The southern and eastern parts of the craton are overlain by Karoo, Jurassic, Cretaceous and Recent (Holocene) sedimentary sequences. The NW-SE trending Ubendian mobile belt hosts the Lupa Goldfield (and Nkuluwisi property) and is composed entirely of the Ubendian Supergroup. This Paleo-Proterozoic belt includes a variety of high-grade metamorphic rocks of both sedimentary and igneous origin and possibly contains a large component of reworked Archean rocks. The predominant rock type is gneiss with minor mafic and ultramafic intrusions, late granites and rare marbles. Daly (1988) and Daly et al. (1985) classified crustal blocks of the Ubendian belt into eight terranes as follows (from Shlüter, 1997): Katuma: gneisses with layers of amphibolite and schist 11 Upangwa: meta-anorthosite Mbozi: metabasites and intermediate granulites with quartzite Lupa: metavolcanics Ufipa: gneissic granite Nyika: cordierite granulites Ubende: metabasites Wakole: alumino-silicate schists At least three episodes of metamorphism are recognized in the Ubendian belt (Nanyaro et al., 1983) and are summarized here from Shlüter (1997). The first episode reached amphibolite facies and in places up to granulite facies, affecting all the Ubendian sedimentary and volcanic rocks. Evidence of this event is preserved in xenoliths within metabasites. The second episode similarly affected the entire belt reaching amphibolite facies, and metamorphosing mafic intrusions into garnet-bearing metabasites. A retrograde metamorphic event represents the third episode and is recognised in shear zones which are characterized by typical minerals of the greenschist facies. This retrogression produced chlorite-epidote-sericite-bearing rocks (Nanyaro, 1989). Three generations of deformation are recognized as foliations, lineations, shearing and faulting, and elongated granitic and mafic-ultramafic intrusives (Nanyaro, 1989). These structures are preserved as a (D1) WNW striking foliation and recumbent folds overprinted by (D2) NW-SE trending foliation and dextral shear zones, reactivated to develop (D3) sinistral, brittle-ductile shear zones and foliation (Lenoir et al., 1994). The eight crustal blocks described briefly above were created during D2, and the three episodes of metamorphism are correlated to the above three generations of deformation. The Lupa Goldfield occurs within the Ubendian mobile belt, on the south-western flanks of the Tanzanian craton. It is bound on the north by a set of crustal-scale structures, separating the Lupa plateau from the Tanzanian craton. It is bound on the east by the Usagaran rift and by the Rukwa trough on the southwest. Both these structures are defined by normal fault systems related to the East African rift valley. Metabasites, felsites, diorites and gabbros are the predominant rock types within the Lupa Goldfield, with intermediate to basic (granodiorite to gabbro) intrusions. These intrusion show strong structural control suggesting syntectonic emplacement and are referred to as the Ilunga granites. First order structures within the Lupa Goldfield appear to be E-W with second order conjugates trending from ENE-WSW to WNW-ESE. Third order structures consist of a variety of small-scale tensional veins and local ore “blows”. 12 13 Local Geology Nkuluwisi gold mineralization is hosted within a felsic and mafic intrusive complex and occurs in one of two structural corridors (the second termed “Rukwa”), which are defined by elongate magnetic susceptibility lows (Figure 4). The Nkuluwisi zone is a zone of major displacement 20 km long and up to 1.8 km wide. It is known to contain about a thousand auriferous quartz veins. 8.0 DEPOSIT TYPES Deposit types in the Lupa Goldfield fall into the “orogenic” gold deposit category and include replacement/sulphidation of banded iron formation, quartz veining within or along granite-greenstone (metabasite) contacts, within granitic gneisses, and in cases as shear zones and stockworks associated with silicification in granitic rocks. Orogenic gold deposits are commonly hosted in greenschist to amphibolite facies Archean “greenstone” belts, such as the Ubendian mobile belt. Gold deposition typically post-dates peak metamorphism and accompanies retrograde metamorphism in the greenschist facies host rocks, while in amphibolite facies rocks mineralization is commonly syn-peak metamorphism. Favourable structural settings include areas of competency contrast between adjacent rock units where faults and shears are likely to occur. 14 Archean greenstone belts are predominantly volcano-plutonic terrains of oceanic back-arc felsic to mafic rocks. Although gold deposits occur in all lithologies of greenstone belts, three types are common: (1) iron-rich mafic igneous rocks, i.e. tholeiitic basalt and differentiated dolerite sills; (2) iron-rich clastic metasedimentary rocks and banded iron formation (BIF); and (3) dioritic to felsic porphyritic stocks and dykes. Nkuluwisi gold mineralization is similar to the third type. Six styles of gold mineralization are typical in orogenic gold deposits: (1) Quartz-carbonate veins are the most common style of mineralization, consisting of quartz veins with <25% carbonate, <10% sulphide, ± albite, tourmaline and scheelite. Sulphides are mainly pyrite with arsenopyrite and pyrrhotite. Veins types include laminated fault-fill and extensional veins forming complex, vertically extensive networks. (2) Sulphide replacement in BIF consists of strata-bound replacements of Fe-rich layers by mainly pyrite, arsenopyrite, or pyhrrotite. (3) Disseminated stockwork zones consist of 5-20% sulphides occurring as uniform dissemination or along foliation-parallel bands in highly strained rocks. This mineralization style is characterized by an absence of through-going quartz-carbonate veins. (4) Sulphide replacement and crustiform veins consist of lodes of crustiform-colloform carbonate veins and breccias with varying proportions of sulphide replacements of the wall rocks or vein carbonates themselves. (5) Sulphide-rich veins and veinlet zones contain 25- 100% sulphide bearing quartz-carbonate veins. (6) Semi-massive to massive sulphide lenses are comprised of pyrite, chalcopyrite, sphalerite, and galena, and uncommonly pyhrrotite and magnetite. 9.0 MINERALIZATION Nkuluwisi gold mineralization occurs within a sheared “mesothermal” gold system. It is a structurally controlled felsic intrusive style of gold mineralization where gold and other chalcophile elements were scavenged from the mafic crust. The model suggests complex vein/shear systems due to local competency variations. There is an increase in complexity to the south and east, and a decrease to the northwest of the Lupa Goldfield. Through detailed chip and core logging, three generations of quartz veins have been identified on the Nkuluwisi property. The first generation quartz veins (Q1) are associated with the granitic units and are related to deformation and alteration within these units. The majority of the sulphide mineralization is associated with Q1 veins along fringes of high alteration. The second generation of quartz veins (Q2) is distinguished from the other two by its prominent purple colour resulting from hematite alteration. Sulphide mineralization within these veins is less common than in Q1, and occurs as disseminations throughout the vein rather than along the fringes. The youngest generation of quartz veins (Q3) cross-cuts all units and is believed to be associated with dolerite (diabase) intrusions after Au mineralization took place. They are white, calcite-bearing veins with no associated mineralization. Drill section interpretations indicate that the vein system is bound by distinct, dark, very fine-grained dolerite units on both the hanging wall and foot wall. The mineralized zone 15 appears to be subvertical, pinching and swelling both with depth and along strike. Towards the west (Figure 5) the mineralized zone becomes very narrow and seems to disappear completely along strike. The zone is structurally controlled, defined by prominent, dextral- normal faults and usually associated with dolerite intrusions. Gold mineralization is strongly associated with a brittle-ductile shear zone with distinct foliation patterns (bands), pseudotachylites, fractures and faulting. Sulphides mainly occur within the ductile component of the shear zone within a 10-20 m chill margin from the hanging wall / foot wall dolerite contact. Where dolerite dykes are thought to cross-cut the granitic unit, mineralization is sometimes directly associated with the dyke margin. 16 10.0 EXPLORATION Modern exploration of the Nkuluwisi property began in 2006 with the discovery of mineralized outcrop. Exploration has consisted of drilling, geochemical soil sampling and geophysical surveys. Geological and geotechnical logging of drill core from diamond drill core has been carried out along with chip logging and sampling from reverse circulation (RC) drilling. Surface sampling has included grab samples and soil samples and has included 1:20,000 scale mapping of the Nkuluwisi Shear. The exploration program has targeted the contact between the dolerite and granite units as well as through the Nkuluwisi shear zone. Surface Sampling Surface sampling included sampling of areas identified by geophysical anomalies as well as historical soil anomalies and completing grid soil surveys. Soil sample grids were done on 200 m x 50 m spacing with an average sample depth of 50 cm. A total of 500 samples were taken in 2008. For each soil sample the following information was collected: location; depth, slope angle, and soil type. Soil sample pits with dimensions 50cm x 50cm to a depth of 35 to 75 cm were excavated and a representative 2-3 kg sample was taken across the bottom of each pit. The sample was sieved to 2 mm fraction. All sampling equipment was cleaned between each sample. A total of 43 grab/rock samples were taken from the Ilunga (Nkuluwisi) area in the third quarter of 2008, 14 of which were submitted for geochemical analysis. The remaining 29 were to be submitted. A total of 23 trenches were excavated based on geophysical targets. Due to the thickness of overburden, bedrock was seldom reached, thus limiting the success of the trenching program. Data obtained from the soil sampling program was used to make soil maps and delineate geochemical anomalies. Soil anomalies were determined to follow magnetic anomalies including that along the Nkuluwisi Shear Zone. No underground work has taken place at Nkuluwisi. Geophysics A high resolution fixed wing airborne magnetic and radiometric survey was flown over an area of 540 km2 in 2006 (8,250 line km with 100 m line spacing). Induced polarization (IP) and direct current (DC) resistivity surveys totalling 100 line km were carried out in 2006/2007 over Nkuluwisi. 17 Geophysical work has helped delineate the mineralized zones at Nkuluwisi by defining contacts and interpretation of structural controls (Figures 6 and 7). 18 11.0 DRILLING Drilling in 2007 to test geophysical targets consisted of 58 core holes totalling 8,045 meters of both reverse circulation (RC) and diamond drill (DD). This program was unsuccessful in defining a resource target based on the IP anomalies which were being tested by Rusaf. Further review found that IP anomalies being drilled were related to footwall and hangingwall alteration associated with disseminated pyrite, therefore, most drill holes did not intersect mineralization but were adjacent to it. Also, during the 2007 exploration program, mineralized outcrop and mineralization in trenches was discounted over the use of IP geophysical data to select targets. The use of surface data was not respected until the 2008 program was proposed by N. Eric Fier, C.P.G, P.Eng. A drill program in 2008 consisting of 53 holes totalling 5,395 meters of both reverse circulation (RC) and diamond drill (DD) was designed based on surface mapping, trenching and limited success of the 2007 drill program. Drilling included 3,527 meters in 34 RC holes and 1,868 meters in 19 DD holes. Primary objectives of the drilling program were to determine/confirm (1) the potential of selected drill areas within the Lupa Goldfield to host 19 potentially economic gold mineralization and (2) test downhole depth and strike continuity of ground geophysics profiles, geological mapping (grab samples), trend of artisinal workings and the airborne data. Drill holes were logged to record major and secondary lithologies as well as discrete features such as inclusions, veins and fracture fillings. Up to three mineralization types and style were recorded along with alteration and intensity. Geotechnical parameters including RQD, recovery and gain/loss of core were recorded as well as structural data. A photographic record was retained of all core. The database provided to EBA contains 111 holes totalling 13,440 m. A drill hole location plan view of the main area of interest is shown in Figure 8. 12.0 SAMPLING METHOD AND APPROACH Limited information is available for the 2007 sampling programs. It is believed by EBA that these were completed in a professional manner. As of September 2008, 3,263 RC chip samples and 2,258 DD core samples were submitted to ALS for assay analysis. RC samples consisted of 1 m samples split 3 ways. A field archive sample of approximately 35 kg was retained and a sample of 0.5 kg to 1 kg weight was submitted for analysis. 20 For diamond drill core major lithological units were sampled, with sample size ranging from 50 cm to 100 cm in length. Core was split in half with the bottom half being sent for analysis and top half saved as an archive. For all core samples each hole was bagged as a separate batch and transported to the qualified ALS-Chemex lab in Mwanza, Tanzania. EBA believes that sample methods and approach have been completed in a professional manner and within acceptable limits. 13.0 SAMPLE PREPARATION ANALYSIS AND SECURITY Limited information is available on the 2007 exploration program. Laboratory analysis was completed by ALS laboratories in Mwanza, Tanzania and North Vancouver, Canada during the 2008 program. Work orders were sent via e-mail for each batch and progress was tracked online via web retrieve. Sample tracking was completed by recording the following data in an electronic spreadsheet: • Date of dispatch from site • Date of arrival at prep lab • Date of arrival at analytical lab • Date of receipt of final results. Samples were prepared in the lab by drying and crushing of entire sample to greater than 70% passing a 2 mm sieve. The samples were then split with 1 kg pulverized to greater than 85% passing a 75um sieve. Au was analyzed by fire assay and atomic absorption. Metals were analysed using conventional ICP AES analysis with aqua regia digestion. Blanks, Standards and Duplicates Laboratory blanks, standards and duplicates were reviewed and, with the exception of missing analytical data for four blank samples and minor mislabelling of standards, QAQC data was viewed as within acceptable limits. Standards, blanks and duplicates were inserted regularly into the sample stream for QA/QC. Every 30th sample was a standard, every 20th a blank and every 10th a duplicate. Three standards were used: OXG60 (1.025 g/t), OXE56 (0.611 g/t) and OXC58 (0.201 g/t). As well, 5% f all samples, including standards and blanks, were sent to a secondary lab. Duplicates were conducted by attaching a second empty bag to a sample and the laboratory would split the sample. EBA believes that sample preparation and security have been completed in a professional manner and within acceptable limits. 21 14.0 DATA VERIFICATION During the site visit, core was inspected for visual alteration and mineralization to confirm their existence and verify the deposit-type. Eighteen samples (drill, grab, and outcrop) were collect by N. Eric Fier, CPG, P.Eng on October 27, 2007 of altered and mineralized areas to verify grade as presented in the following Table 5. TABLE 5: CORE SAMPLES REVIEWED DURING SITE VISIT Approx. Length Location Sample No. Date Northing Easting Type Weight Description with grade metres (kg) Qtz vein w/hem, llim, Mnox, Lupa LU 1 27-Oct 507704 9060736 Chip 2x2 2 bxwork near side of road Core hole LGFD 006 92- Lupa LGFD 003254 27-Oct Drillhole Core 1 1 93m, 0.49 gpt Au Drillhole Core hole LGFD 006 97- Lupa LGFD 003259 27-Oct Core 1 1 98m, 0.08 gpt Au Drillhole Core hole LGFD 036 43- Lupa LGFD 003982 27-Oct Core 1 1 44m, 0.95 gpt Au Drillhole Core hole LGFD 036 47- Lupa LGFD 003986 27-Oct Core 1 1 48m, 0.02 gpt Au Drillhole RC hole LGFR 005, 38-39m, Lupa LGFC 002511 27-Oct RC 1 1 5.74 gpt Au Drillhole RC hole LGFR 005, 45-46m, Lupa LGFC 002518 27-Oct RC 1 1 9.87 gpt Au Drillhole RC hole LGFR 005, 60-61m, Lupa LGFC 002534 27-Oct RC 1 1 0.06 gpt Au Drillhole RC hole LGFR 054, 28-29m, Lupa LGFC 006704 27-Oct RC 1 1 3.06 gpt Au Drillhole RC hole LGFR 054, 40-41m, Lupa LGFC 006717 27-Oct RC 1 1 4.30 gpt Au Drillhole RC hole LGFR 054, 45-46m, Lupa LGFC 006723 27-Oct RC 1 1 0.27 gpt Au Drillhole RC hole LGFR 004, 20-21m, Lupa LGFC 002393 27-Oct RC 1 1 1.18 gpt Au Drillhole RC hole LGFR 004, 24-25m, Lupa LGFC 002397 27-Oct RC 1 1 0.95 gpt Au Drillhole RC hole LGFR 005, 30-31m, Lupa LGFC 002404 27-Oct RC 1 1 0.21 gpt Au Outcrop above hole 054, quartz vein w/hem, feox, Lupa NK01-9929 27-Oct 486716 90855301 Chip 1 2 mnox Sample in bottom of trench Lupa NK02-9930 27-Oct 486603 9085347 CH 2 3 #2, altered granite - 4 gpt Au Shear zone in granite min Lupa RK-9931 27-Oct 478606 9084162 CH 1 2 300m long, feox, mnox 22 TABLE 5: CORE SAMPLES REVIEWED DURING SITE VISIT Approx. Length Location Sample No. Date Northing Easting Type Weight Description with grade metres (kg) High grade from dump, Lupa GG-9932 27-Oct 526424 9064539 G 1 sulfides, cu stain Results of the same core collected by GBGR staff were comparable. A validation of the drill database was completed and there were several intervals with no assay information. In addition there were 17 of assay intervals that exceeded the depth of hole and six samples for which there were no intervals defined. Analytical results for standards, blanks and duplicates were reviewed as part of the overall QA/QC of the drill hole database. With the exception of some mislabelling of standards, analytical results were viewed as within acceptable limits. EBA believes that the data compilation and verification were completed in a professional manner by qualified persons and are adequate for reporting purposes. 15.0 ADJACENT PROPERTIES The Lupa goldfields are the second largest gold fields in Tanzania which cover an area of approximately 2600 square kilometres. Properties adjacent to Nkuluwisi prospect include Helio Resources SMP Project which has had success in drilling and defining resources and is shown on the in Figure 1. 16.0 MINERAL PROCESSING AND METALLURGICAL TESTING Mineral processing and metallurgical testing are not addressed in this report. 17.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES 17.1 MINERAL RESOURCES The collection and compilation of all information with respect to resource estimation for Nkuluwisi was completed by GBGR. No historic mineral resources have been estimated. Database Drill hole data provided to EBA was in the form of multiple Microsoft Excel spreadsheets, which included analytical results, collar and downhole survey information and geology. Data from these spreadsheets were imported into GEMS™ for review and resource modelling. At the time of the resource estimation interpretative cross sections from site geologists, surface structural geology data and site topography were limited. The resource model was estimated using drill hole data with lithology units and gold assay data. 23 The following table shows drill hole intervals that contain the most significant drill results. TABLE 6: MOST SIGNIFICANT DRILL RESULTS Hole ID Interval From (m) To (m) Interval (m) Au (g/t) Mineralized 227.36 247.68 20.32 0.65 Zone NKDD007 Including 245.00 246.00 1.00 2.87 Including 246.00 246.50 0.50 4.97 Mineralized 94.03 107.00 12.97 0.76 Zone NKDD016 Including 102.80 103.30 0.50 5.08 Including 105.00 106.00 1.00 2.69 Mineralized 36.58 54.00 17.42 2.97 Zone Including 44.40 52.50 7.60 6.31 NKTW001 Mineralized 64.70 86.50 21.80 0.61 Zone Including 70.50 71.50 1.00 3.05 Including 85.00 86.00 1.00 2.90 Mineralized 35.13 55.00 19.87 2.09 LGFR005 Zone Mineralized 0.00 28.47 28.47 1.18 NKRC034 Zone Mineralized 94.03 102.00 7.97 1.80 NKRC016 Zone Mineralized 2.00 7.00 5.00 1.54 NKRC035 Zone Mineralized 121.80 122.80 1.00 2.58 NKDD006R Zone Mineralized 18.59 31.07 12.48 0.95 LGFR004 Zone Block Modelling A block model was created using Gemcom’s GEMSTM software program to complete a preliminary resource for Nkuluwisi. A three dimensional shape of the mineralization was created by digitizing the mineralized zone on 25 m spaced vertical sections. Gold assay values in the drill database were used to establish the mineralized zone, using a value of 0.5 gpt to differentiate between mineralized and unmineralized rock within the shape. The mineralized shape was reviewed on 25 m elevation plans and the interpretation was adjusted as required. The mineralized sections were used to create a three dimensional solid shape and separate rock codes were assigned 24 to the mineralized solid and the material outside of the mineralized solid. Rock codes were applied to the corresponding assays within the drill hole assay sample database based on it’s the sample interval location with respect to the mineralization solids. Intervals falling outside the solids were assigned a rock code of “5” and points within the mineralized solid were assigned a value of “1”. A topographic surface was modelled based upon the elevations of the drill collars. Blocks above the topography surface were given a rock code value of “0” for air. The block model consists of 5 x 5 x 5 m blocks arranged in 45 rows, 180 columns and 75 levels. The block model origin is X = 486300, Y = 9085250 and Z = 1175 and it is rotated 12 degrees clockwise from north. Numerous iterations for calculating the block model were completed and results were reviewed to establish sensitivities within the model. Blocks were interpolated using an inverse distance method to the third power, constrained by a search ellipse, and log normal probability plots of gold grades within the mineralized shape were used to establish a cut off grade. Two meter composites samples greater than 0.05 gpt located within the mineralized shape were graphed on a log normal probability plot, the 97.5 percentile value of 7.12 gpt was used as a cut off value for limiting the influence of high grade samples. A minimum of four and a maximum of eight samples were used to estimate the grade within a single block of the model. An integration level of three (nine needles per block) oriented horizontally along rows were used. A long section of the block model showing gold grade and drill holes is presented in Figure 9. This section shows higher grade mineralization located near the surface with lower grade gold zoning to depth. 25 26 Cross sections through the Nkuluwisi Shear Main Zone are shown in Figures 10 and 11. 27 28 Statistics Samples contained within the mineralization wireframe were collected and subject to statistical analysis. It was observed that the samples were taken over varying lengths and so it was necessary to composite to a uniform length. Samples within the zone were composited to 2 metre lengths. The following table summarized the statistics of the database provided to EBA. TABLE 7: STATISTICS OF DATA PROVIDED TO EBA Within Database Within Block Model No. of drill holes 111 41 Total depth of drill holes 13,440 5,589 (m) No. of surface samples 49 18 No. of assay intervals 10,773 4,381 Non-declustered composite statistics: TABLE 8. NON DECLUSTERED COMPOSITE STATISTICS Statistic Gold Number 128 Mean 1.300 Standard Deviation 1.495 Coefficient Variation 1.151 Median 0.970 Maximum 15.40 Minimum 0.50 The composite data for gold is observed to be positively skewed and therefore it is appropriate in EBA’s opinion to cap the high grade to a predetermined value. Two metre composite samples greater than 0.5 g/t located within the mineralized solids were graphed on a log normal probability plot, the 97.5 percentile value of 7.2 g/t was used as a cut off value for limiting influence of high grade samples. Geostatistics Geostatistical analysis for the drillhole database for the Lubando deposit was done for gold using the available assay data and 2 m composites. The block model was populated using ID5 method of calculation. 29 Search Parameters The search ellipse for estimating the Measured resource is a sphere with a 15 m radius. Minimum samples used to estimate a block were three and maximum was eight. The search ellipse for estimating the Indicated resource is a sphere with a 35 m radius. Minimum samples used to estimate a block were three and maximum was eight. The resource estimated from the search parameters for “Measured” was subtracted from this estimation to get the actual Indicated resource. The search ellipse for estimating the Inferred resource is oriented to be approximately planar parallel to the mineralization zones. The block is oriented ESE-WNW (12 degrees rotation from EW), while the search ellipse anisotropy angles are defined by rotation ZXZ as follows: rotated 0º about Z from X towards Y, 0º about X from Y towards X and 90º about Z from X towards Y. An ellipsoidal search radii of 150 m along X, 75 m along Y and 300 m along Z was used. Minimum samples used to estimate a block were three and maximum was twelve. The inferred resource was obtained from subtracting the Measured + Indicated from the results of this search. Classification Standard resource classification was used to comply with NI 43-101. These classifications include Measured, Indicated and Inferred resource estimations. Gold values were interpolated in two passes. The first pass matches code “1”, which interpolates blocks inside the mineralization solids. The following pass (code 5) interpolates the area outside of the mineralization solids. Each pass does not overwrite any of the blocks interpolated in the previous passes. The same interpolation parameters are used in each pass with the exception of the search radius. A spherical search ellipse with 25 m radius was used outside of the mineralized zone. The interpolation was constrained by an interpreted topography surface that was generated from the collar elevations of the boreholes. Summary of modeling parameters; • Number of samples (raw data): 10,773 • Method of Calculation: ID5 • Composite Length: 2m • Number of Composite Samples within mineralized shape: 990 • Number of samples within mineralized shape greater than 0.05 gpt: 270 • Top cut value: 7.2 g/t • Search Ellipse within mineralized solid: Measured: radius = 15 m, minimum samples 3, maximum samples 8 Indicated: radius = 35 m, minimum samples 3, maximum samples 8 30 Inferred: Radius x = 150 m, y = 150 m, z = 300 m, minimum samples 3, maximum samples 12. Block Model Validation The block model was tested against several sensitivities including search radius, interpolation method, cut off values and geological interpretations. The resource is most sensitive to geological interpretation; therefore structural mapping data should be integrated into the model to provide a higher degree of confidence. A specific gravity (SG) of 2.7 was used for mineralized and unmineralized zones for calculation of tonnage from volumes. No site specific data was available; however these values are consistent with published values typical of basalts and diorites which form the host rocks for this deposit. Further test work is required. Cut Off Grade The assumed economic cut off grade is calculated based upon the following formula and values: = (ore cost) $/t – waste cost $/t)/ ($net value/g Au x Recovery) = (US$15/t – US$2/t) / (US $ 850/oz / 31.3 g/oz x 90%) = 13 / 24.4 = 0.53g/t Mineral Resources Mineral resources were calculated based upon the above cut of grade and parameters. A minimum cut off grade of 0.5 g/t was used in the estimation of the resources as a Base Case. A summary of resources is presented in tables 9 to 13. Estimates are based on composites capped at 7.2 g/t gold. TABLE 9: MEASURED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS Cutoff Tonnes Au Au Au Tons Au ZONE Grade (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) Contained Contained (g/t) Grade (g/t) Oz/ton Total (g) Total (oz) Mineralized 3.0 3,712 3.23 11,994 0.094 4,092 386 Shear Zone 1.5 71,887 2.06 148,437 0.060 79,241 4,772 1.0 147,825 1.63 240,933 0.047 162,947 7,746 0.925 174,150 1.52 264,011 0.0442 191,966 8,490 0.9 187,650 1.48 278,754 0.043 206,847 8,962 0.5 553,500 0.93 515,629 0.027 610,123 16,578 0.1 963,562 0.66 644,857 0.019 1,062,134 20,733 31 TABLE 9: MEASURED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS Cutoff Tonnes Au Au Au Tons Au ZONE Grade (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) Contained Contained (g/t) Grade (g/t) Oz/ton Total (g) Total (oz) 0.001 969,975 0.66 645,393 0.019 1,069,203 20,750 Total 969,975 0.66 645,393 0.019 1,069,203 20,750 TABLE 10: INDICATED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS Cutoff Tonnes Au Au Au Tons Au ZONE Grade (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) Contained Contained (g/t) Grade (g/t) Oz/ton Total (g) Total (oz) 1.5 215,325 1.88 405,875 0.054 237,353 13,049 1.0 491,400 1.54 754,653 0.045 541,670 24,263 0.97 515,362 1.51 778,197 0.0440 568,084 25,018 Mineralized 0.9 684,787 1.36 934,480 0.039 754,841 30,044 Shear Zone 0.5 2,147,850 0.86 1,867,535 0.025 2,367,575 60,042 0.1 3,695,962 0.65 2,413,938 0.019 4,074,059 77,609 0.001 3,693,937 0.65 2,413,759 0.019 4,071,827 77,604 Total 3,693,937 0.65 2,413,759 0.019 4,071,827 77,604 TABLE 11: INFERRED RESOURCE ESTIMATE FOR NKULUWISI – CUMULATIVE TOTALS Cutoff Tonnes Au Au Au Tons Au ZONE Grade (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) (Cumulative) Contained Contained (g/t) Grade (g/t) Oz/ton Total (g) Total (oz) 3.0 6,412 3.38 21,733 0.098 7,068 698 1.5 286,200 2.03 582,980 0.059 315,478 18,743 1.25 1,219,050 1.53 1,861,489 0.0445 1,343,759 59,867 1.0 1,459,350 1.42 2,081,182 0.041 1,608,642 66,911 Mineralized 0.9 1,577,475 1.39 2,192,205 0.040 1,738,851 70,480 Shear Zone 0.5 4,582,575 0.91 4,198,050 0.026 5,051,372 134,970 0.1 9,963,337 0.61 6,144,583 0.018 10,982,586 197,552 0.001 10,041,975 0.61 6,151,351 0.017 11,069,269 197,770 Total 10,041,975 0.61 6,151,351 0.017 11,067,269 197,770 32 TABLE 12: NKULUWISI MINERAL RESOURCE SUMMARY - BASE CASE * Category Measured Resource Indicated Resource Inferred Resource Resource (tonnes) 553,500 2,147,850 4,582,600 Grade (g/t) 0.93 0.86 0.91 Grams 515,600 1,867,500 4,198,100 Resource (tons) 610,100 2,367,600 5,051,400 Grade (oz/ton) 0.027 0.025 0.026 Total Gold (oz) 16,600 60,000 135,000 * Numbers are rounded. Composites capped at 7.2 g/t gold. Cutoff grade is 0.5 g/t gold based on a gold price of US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources. TABLE 13: NKULUWISI MINERAL RESOURCE SUMMARY FOR VARIOUS CUTOFF GRADES * Category Measured Resource Indicated Resource Inferred Resource Cutoff Grade 1.0 Resource (tonnes) 147,825 491,400 1,459,350 Grade (g/t) 1.63 1.54 1.42 Grams 240,933 754,653 2,081,182 Resource (tons) 162,947 541,670 1,608,642 Grade (oz/ton) 0.047 0.045 0.041 Total Gold (oz) 7,740 24,260 66,910 Cutoff Grade 1.5 Resource (tonnes) 71,887 215,325 286,200 Grade (g/t) 2.06 1.88 2.03 Grams 148,437 405,875 582,980 Resource (tons) 79,241 237,353 315,478 Grade (oz/ton) 0.060 0.054 0.059 Total Gold (oz) 4,770 13,050 18,740 Cutoff Grade 3.0 Resource (tonnes) 3,712 - 6,412 Grade (g/t) 3.23 - 3.38 Grams 11,994 - 21,733 Resource (tons) 4,092 - 7,068 Grade (oz/ton) 0.094 - 0.098 Total Gold (oz) 390 - 700 * Numbers are rounded. Composites capped at 7.2 g/t gold. Cut-off grades are variable based on a gold price of US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources. 33 In EBA’s opinion, the classification of Mineral Resources as stated is appropriate and conforms to the Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on December 11, 2005. 18.0 OTHER RELEVANT DATA AND INFORMATION Environmental Considerations No environmental liabilities were defined at the Nkuluwisi site. No previous mining was noted. 19.0 INTERPRETATION AND CONCLUSIONS GBGR has completed an exploration program consisting of sampling and drilling sufficient to complete a Mineral Resource estimate. This estimate is stated in Table 14. TABLE 14: NKULUWISI MINERAL RESOURCE SUMMARY - BASE CASE * Category Measured Resource Indicated Resource Inferred Resource Resource (tonnes) 553,500 2,147,850 4,582,600 Grade (g/t) 0.93 0.86 0.91 Grams 515,600 1,867,500 4,198,100 Resource (tons) 610,100 2,367,600 5,051,400 Grade (oz/ton) 0.027 0.025 0.026 Total Gold (oz) 16,600 60,000 135,000 * Numbers are rounded. Composites capped at 7.2 g/t gold. Cutoff grade is 0.5 g/t gold based on a gold price of US$850 and assumed 100% metallurgical recovery. CIM definitions were followed for Mineral Resources. In EBA’s opinion, the classification of Mineral Resources as stated is appropriate and conforms to the Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM Council on December 11, 2005. 20.0 RECOMMENDATIONS The area southeast of the main trend remains untested as existing drill holes are either off trend or too shallow to test for the extension of the mineralization (Figure 12). Surface samples along trend indicate the continuation of the main zone; however, drill holes missed the target area. This south-eastern target area is approximately 500 m in strike length and drilling is recommended on 100m spaced sections, with two holes per section to test potential mineralization at shallow (20 to 50 m) and at moderate (50 to 150) depths. 34 Drilling to the northwest of the main mineralized body has intersected erratic low grade gold mineralization. An inferred NNW trending fault may offset the main mineralization which is considered to currently have low exploration potential based on the available information used in this study. It is recommended to compile surface geology along with structural mapping, geochemical data and geophysics on a single plan map in order to re- evaluate the potential of this area. Locally and regionally, there are several targets which need to be investigated for resource potential: • Chisu Reefs – 16 m wide mineralized shear zone. • Ntumbi – 50 quartz reefs with Au mineralization. • Rantumbi – 15 quartz reefs with Au mineralization. • Kwaheri Zone – wide mineralized shear zone • Discovery Reef – 3 m wide shear and veining with footwall mineralization • Hodges – 5 m wide with mineralized hanging wall. • Twiga – wallrock at 5 to 6 gpt Au. • Kalangali – 15 m wide shear zone. 35 The following work is recommended to further define the resource for this target area (Table 15): • Compile and review all surface geological, geophysical, geochemical and structural data onto a single plan map for establishing drill targets; • Additional drilling to target the 1.5 km long mineralized zone to 200 m depth at 50 to 100 m centers totalling approximately 2000 m of core drilling; • Additional drilling to target other areas near Nkuluwisi with approximately 2000 m of drilling; • Further QA/QC; • Systematic surface mapping and trenching of the exposed outcrop should be carried out to establish structure and surface expression of the mineralized zone, this data should then be incorporated into the resource model; and • Density test work. Identification of similar sized targets in proximity to the Nkuluwisi property could contribute to an overall property size of the targeted 500,000 ounces at a grade equal to or greater than 1.5 g/t gold. TABLE 15: RECOMMENDED PHASE III EXPLORATION DRILLING AT NKULUWISI AND LUPA Item Description Price/unit Cost (US$) Drilling core 4000 m (20 holes at 200 m each) $150/m 600,000 holes RC Drilling 2000 m (10 holes at 200 m each) $60/ m 120,000 Geologist/Staff 2 geologists, 2 technicians, 1 general $2,000/day 180,000 labourer Camp Camp costs for 3 month for 15 $30,000/month 90,000 persons Laboratory Assays from drill samples $30 each 50,000 Analysis Misc. Vehicles, communications, etc. 30,000 Contingency 15% 160,500 Total $1,230,500 If this phase is successful then an expanded program is recommended at a minimum cost of US$3,000,000 which will include a preliminary economic assessment. With this additional drilling and exploration success, the minimum target of 500,000 ounces of gold at 1.5 g/t gold is potentially achievable. EBA is of the opinion the Nkuluwisi and other Lupa targets warrant the recommended budget. 36 REFERENCES Daly, M.C. 1988. Crustal shear zones in Central Africa: a kinematic approach to Proterozoic tectonics, Episode 11, pp5-11. Daly, M.C., J. Klerkx and J.T. Nanyaro. 1985. Early Proterozoic exotic terranes and strike-slip accretion in the Ubendian belt of southwest Tanzania, Terra Cognita 5, 257. Lenoir, J.-L., J.-P Liegois, K. Theuissen, and J. Klerkx. 1994. The Paleoproterozoic Ubendian shear belt in Tanzania: Geochronology and Structure. Journal of African Earth Sciences, v. 19, pp. 169-184. Nanyaro, J.T. 1989. Proterozoic gold-base metal veins in the Mpanda mineral field, western Tanzania. Koninkl. Mus. Midd. Afrika Tervuren Belge Ann. Reeks in-8º 97, pp. 1-44; Tervuren. Nanyaro, J.T., N.K. Basu, A.H. Mruma, A. Njare, G.L. Mwakuluka, I. Mduma, K.M. Mdiguza, P. van Straaten, J. Klerkx and K. Theunissen. 1983. Structural evolution of the Ubendian belt, preliminary results of a traverse between Karema and Mysanda (Tanzania). Mus. Roy. Africaine Centr. Tervuren Dept. Geol. Min. Rapp. Ann. 198, pp. 147-152; Tervuren. Shlüter, T. Geology of East Africa. With contributions by C. Hampton. Borntraeger, 1997: Berlin, 484 pp. 37 CERTIFICATE OF QUALIFICATIONS N. ERIC FIER I, N. Eric Fier, C.P.G., P. Eng., as an author of this report entitled “Technical Report on the Nkuluwisi Property, Mbeya, Tanzania”, prepared for GBG Rusaf Gold Ltd., and dated November 30th, 2009, do hereby certify that: 1) I am a Director for EBA Engineering Consultants Ltd. My office address is 9th Floor, 1066 West Hastings Street Vancouver, B.C. 2) I am a graduate of Montana Tech, Butte, Montana, in 1984 and 1986 with a Bachelor of Science degree in Geological Engineering and Mining Engineering, respectively. 3) I am registered as a Certified Professional Geologist registered with the American Institute of Professional Geologists (Reg.# 10622) and a Professional Engineer in British Columbia (Reg.# 135165). I have worked as a geologist and mining engineer for a total of 24 years since my graduation. My relevant experience for the purpose of the Technical Report is: a) Review and report as a manager and consultant on numerous exploration and mining projects around the world for due diligence, operations and regulatory requirements, including: • Numerous technical reports on the Yellowknife Gold Project (Archean Gold) from January 2005 to present. • Technical Report on the Courageous Lake Deposit (Archean Gold), NWT. • Geotechnical Preliminary Assessment of the Yellowknife Gold Project (Archean Gold), NWT • Geotechnical Preliminary Assessment of the DO27 Project, NWT • Engineering consultant for the NICO Project, NWT • Feasibility Study for the Minto Project, Yukon 4) I have read the definition of "qualified person" set out in National Instrument 43-101 ("NI43-101") and certify that by reason of my education, affiliation with a professional association (as defined in NI43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI43-101. 5) I am responsible for all sections of the Technical Report. 6) I am independent of the Issuer applying the test set out in Section 1.4 of National Instrument 43-101. 38 7) I have had no prior involvement with the property that is the subject of the Technical Report. 8) I have read National Instrument 43-101F1, and the Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1. 9) To the best of my knowledge, information, and belief, as of the date of the report, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading. 10) I have visited the site in August 8 to 15, 2008. Dated the 30th day of November, 2009 N. Eric Fier, C.P.G., P. Eng.