The ROMERO PROJECT PFS Highlights

• Maiden Probable Mineral Reserves of 7.03 million tonnes containing:
  • 840,000 ounces of gold
  • 980,000 ounces of silver
  • 136 million pounds of copper
• A 2,800 tonnes per day operation totalling life of mine gold equivalent production of approximately 1.117 Moz AuEq
• Annual gold equivalent production averaging 109,000 ounces per year
• Post tax Net Present Value @ (5%) of $203 million (pre tax $317 million)
• All-in Sustaining Cost of $595/oz AuEq
• Post tax Internal Rate of Return of 28% (pre-tax 38.6%)
• Initial Capex of $158.6 (Life of Mine $250.9 including sustaining and closure)
• Life-of-mine ("LOM") all-in sustaining costs ("AISC") of $595/oz gold equivalent ("AuEq") payable.
• Payback of capital within 2.5 production years.
• Pre-production capital expenditure estimate of $158.6 million, plus $92 million of sustaining and closure capital over LOM totaling $250.9 million.
• An eight-year underground mine at an average production rate of 1,022,000 tonnes per year (2,800 tonnes per day) with an average production of 109,000 recovered AuEq oz per year.
• Total metal recoveries consisting of 78.1% for gold, 58.6% for silver 94.6% for copper to a single concentrate for sale to copper smelters. There are no perceived penalty elements.
• The PFS contemplates an environmentally proactive approach. Some of these features include:
  • A small surface footprint over the underground mine
  • The use of cyanide is not included in the design. A flotation concentrate product will be shipped from the Puerto Viejo port to international smelters; 
  • 100% of the waste rock from the underground mine will be returned underground as backfill to eliminate the potential for acid rock drainage;
  • The project is designed to capture run-off water to supply the mine, thus avoiding any water taking from the San Juan river;
  • Tailings from the process plant will be filtered, dried and placed in a dry stack storage facility.  No tailings ponds or dam structures will be required;
  • Power will be supplied by a line connection to the domestic power grid;
  • Ventilation fans will be located underground to reduce noise; and
  • No relocation of the Hondo Valle village, or any settlements.

JDS Energy & Mining Inc. is a Vancouver based mining consulting company, who has extensive experience in mining and development studies.  JDS assembled a multi-disciplinary international team of experts to conduct the Romero PFS including:

• Micon International Limited (Micon) (geology, mineral resources)
• Golder Associates Limited (geotechnical, tailings and water management)
• Allnorth Consultants Limited (process design)
• MineFill Services Incorporated (backfill plant design)

GoldQuest applied for a mining permit to the Dominican Ministry of Energy and Mining in November 2015 and has commenced baseline studies for the environmental permitting process.