HEART PEAKS PROPERTY

Property Summary

Property:37 claims totaling 14,396 ha

Location:Approximately 45 km northeast of the past producing Golden Bear Mine and 120 km west of the village of Dease Lake in northwestern British Columbia.

Owned:100% by QuestEx Gold & Copper Ltd. (“QuestEx”)

Good to Date: Claims are in good standing until 2024

Target:High grade low sulphidation gold-silver mineralization with potential also for bulk tonnage gold mineralization

Rock Type: Neogene (less than 23.6 Ma) and younger felsic and supboridnate volcanics and volcaniclastics

Work By QuestEx

In 2011 QuestEx Gold & Copper completed programs of airborne geophysics, satellite image analysis and prospecting on property. This work confirmed the presence of high grade gold and silver mineralization at the Top Zone with sampling returning values up to 31.6 g/t gold and 4,282 g/t silver. The 2011 program also discovered a new area of high grade mineralization on the property called the Midas Zone. Three of only five samples collected from the Midas zone in 2011 returned values of 4.7 g/t, 8.5 g/t and 10.4 g/t gold, with 23 g/t, 60 g/t and 32 g/t silver, respectively.

In 2012 QuestEx completed programs of rock and soil sampling, geophysical surveying and detailed mapping on the property. This work identified the main lithologic and structural controls to mineralization on the property and discovered further high grade mineralization, including visible gold, at the Midas Zone. Assay results from 55 rock samples collected over a 100 by 200 metre area at the Midas Zone ranged from 0.035 g/t to 126 g/t gold and 0.6 g/t to 338 g/ t silver. The average value for these samples was 3.6 g/t gold and 22.4 g/t silver.

2015 & 2016 Exploration Program

Exploration in 2015 was funded by Centerra and managed by QuestEx. The program included rock and soil sampling, geophysical surveying, geological mapping and drone supported detailed areal photographic surveying.

Significant gold values in surface grab samples were reported from the Midas, Top, Mogul and End Zones (see table below). The presence of visible gold was also noted in some of the higher grade samples form the Midas Zone.

The 2015 program confirmed that gold mineralization is focused along two lithologically and structurally defined corridors: the west-northwest trending 2 km long Top Zone to Midas Zone corridor and the north trending 4 km long corridor bounded by the Mogul East and Mogul West fault systems from the Bottom Zone north to the Mogal Zone.

In 2016, optionee Centerra Gold drilled 10 holes (1,648.66 m) where they tested 1 out of 7 targets. Numerous other targets and zones remain untested.

On November 24, 2016 QuestEx announced that it had received a formal notification from Centerra Gold Inc. that it will not proceed with its Year 2 commitments and therefor the option was terminated and the HP Property was returned 100% to QuestEx.

Previous Work

The first recorded work on the property was in 1980. In 1984 Kerr Addison Mines drilled 8 holes on the property, one of which intersected 110 metres of 0.48 g/t gold at an area called the Top Zone. A further two holes were drilled on peripheral conceptual targets in 1995, but no other drilling has been completed on this very large alteration system.

Cautionary Note

Investors are cautioned that the exploration target at HP is an early-stage exploration prospect, conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.