CASTELO DE SONHOS GOLD PROJECT

The Deposit

The Castelo de Sonhos gold project is situated in the Pará state of Brazil, approximately 20km from the town of Castelo de Sonhos. It is a gold deposit that is large, simple and in the right location.

Key Attributes

Substantial amounts of untested growth potential
Robust Preliminary Economic Assessment
Mineralization at surface → simple open pit
Good metallurgical properties → high gold recovery
Connected to grid power, close to highway → good infrastructure

Preliminary Economic Assessment results in November 2018 indicate pre-tax IRR of 51% at a gold price of US$1250, with a low-cost base and strong leverage for higher gold prices.

Key Economic Parameters

Parameter	Unit	Pre-tax	Post-tax
Cash Flow	US$ millions	441	372
IRR	%	51	43
NPV 5%	US$ millions	319	264
NPV 10%	US$ millions	233	188
Cash Cost	US$/oz	660
AISC	US$/oz	687
Initial Capital	US$ millions	184
Life of Mine Production	Moz gold	1.1
Average Annual Production	oz gold	130,000
Payback Period (Mine Life)	years	1.9 (of 8.1 years)

Details are reported in press release dated Nov 16, 2018 titled '51% IRR from PEA at TriStar Gold’s Castelo de Sonhos Project’

The QP taking responsibility for this work is of the opinion that the information remains relevant and current despite the fact that it pre-dates the current resource estimate. Work is already underway on the Pre-Feasibility Study (PFS) for Castelo de Sonhos; the technical and economic analysis presented in the PFS will be based on new resource estimates, will not assign any economic value to Inferred resources, and, when published, will entirely replace the PEA analysis.

The PEA is preliminary in nature and includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the economic results described in the PEA will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Estimated All In Sustaining Costs per ounce of gold produced is a Non-GAAP measure that is equal the total of site mining costs, site and corporate G&A costs, royalties and production taxes, realized gains/losses on hedging transactions, community and permitting costs relating to current operations, refining costs, site based non-cash remuneration, inventory write-downs, stripping costs, byproduct credits, reclamation costs, and sustaining costs related to exploration and studies, capital exploration, capitalized stripping and underground mine development, and capital expenditures, divided by the estimated total ounces of gold produced during the life of the mine.

Current Resource

The project currently has mineral resources of:

Indicated: 40.1 million tonnes at 1.2 g/t, containing 1.5 million ounces ("Moz") of gold.

Inferred: 22.2 million tonnes at 1.0 g/t, containing 0.7 Moz of gold.

Region	Classification	Tonnage (Mt)	Grade (g/t Au)	Metal Content³ (Moz Au)
Esperança South	Indicated	24.5	1.3	1.1
	Inferred	10.4	1.1	0.4
Esperança East	Indicated	2.4	1.1	0.1
	Inferred	9.4	0.9	0.3
Esperança Center	Indicated	13.1	0.8	0.3
	Inferred	2.4	0.9	0.1
Project Total	Indicated	40.1	1.2	1.5
	Inferred	22.2	1.0	0.7

¹Project totals may appear not to sum correctly since all numbers have been rounded to reflect the precision of Inferred and Indicated mineral resource estimates.

²The reporting cutoff corresponds to the marginal cutoff grade for an open pit with processing + G&A cost of $US 12/t, metallurgical recovery of 98% and a gold price of $US 1,250/oz. To meet the requirement of "reasonable prospect for eventual economic extraction" the mineral resources must also fall within a bounding pit shell with 55° walls. These are mineral resources and not reserves and as such do not have demonstrated economic viability.

³The metal content estimates reflect gold in situ, and do not include factors such as external dilution, mining losses and process recovery losses.

⁴TriStar is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing or political factors that might materially affect these mineral resource estimates.

Details are reported in press release dated March 16, 2021 titled 'TriStar Doubles Indicated Resources as Drilling Continues at Castelo de Sonhos'

Geology and Mineralization

The Castelo de Sonhos property encompasses a 15km by 12km plateau in the Tapajós region of Pará state. It has an average elevation above sea level of approximately 600m and stands around 350m above the surrounding plains.

The Castelo de Sonhos Formation is a package of sandstones and conglomerates which form a roughly circular plateau surrounded by intrusive granites of the Tapajós-Parima Province.

The gold mineralization is generally associated with the conglomerate reefs. The main alteration types are hematite and silicification, although these are not believed to be directly linked to the deposition of the gold in the conglomerates.

Analogous Deposits

	TARKWA	JACOBINA	CASTELO DE SONHOS
Location	Ghana	Brazil	Brazil
Age (Ga)	2.1	1.88 ─ 2.09	2.1
Total Deposit (Moz Au)	~30 Moz Au	~10 Moz Au	tbd
Mine Type	Open Pit & Underground	Open Pit & Underground	Initially Open Pit
Grade	1.2 g/t (pit)	1.9 g/t (pit)	1.45 g/t (PEA)
Underground Grade	6 g/t	2.5 ─ 9.5 g/t	-
Thickness of Mineralized Zones	≤ 8 m	≤ 25m	≤ 20m
Host Rock	Quartzites and pebble conglomerates	Quartzites and pebble conglomerates	Quartzites and pebble conglomerates

Two billion years ago, a large continent lay near the South Pole, with a chain of lode gold deposits along its central mountain ridge. Gold accumulated in placer deposits down-slope, in alluvial fans, on beaches and in the near-shore marine environment. In modern times, these now include gold deposits at Tarkwa, Jacobina and Castelo de Sonhos.