4KOZA GOLD TOTAL LICENCES Number of LicencesTotal HectaresWESTERN TURKEYEXPLORATION3948448,71OPERATION311021,63EXPLORATION (OVACIK)89527,53OPERATION (OVACIK)447720,77TOTAL54116718,64CENTRAL TURKEY1212022,8816099,601628122,48EASTERN TURKEY134457,2813536,81EXPLORATION (MASTRA)107272,78OPERATION (MASTRA)6771,502722038,3797166879,49
5Kozagold Operations and Projects MASTRAGICIKKAYMAZKÜÇÜKDEREOVACIK
8ENVIRONMENTAL MANAGEMENT Rehabilitation worksPlantations of olive and pine nut treesGood quality - olive oilCo-existence of Gold mining activitiesand olive plantations.
9LEGAL AND PERMITTING STATUS OVACIK GOLD MINEMine operates since May 2005 after renewal of all necessary permits.There are three main ongoing cases in Admin Courts of Izmir and in Supreme Court in Ankara.These are related to the below permits:Environmental Impact AssessmentContinuous Operation PermitLand Zone PermitMASTRA GOLD PROJECTEnvironmental Impact Assessment is ongoingNegotiations on land purchasesKÜÇÜKDERE OPEN PIT
19Mastra Project Environmental baseline study completed EIA Reports study continue with SRKLayout and Earth work Conceptually designed.Ovacik flow sheet modification continue with SGS.Mine designs completed by AMC.
20KUCUKDERE PROJECTKucukdere Block model and Resource
21KUCUKDERE RESOURCE- DECEMBER 2005 TonnesAu (g/t)Au ozsKucukdere4.92-Kucukdere blok model done by AMC and cut off 3 g/t Au
28WESTERN TURKEY 1-KARADAG ANOMALY High Sulphidation, in addition to extensive silisification Au bearing stockworks and barite and sulphide-bearings veins are present2-KIRCA ANOMALYLow Sulphidation/Sedimant Hosted, carried out extensive sampling within the licence and collected 14 BLEGs, 32 stream sediment and 91 rock samples – the latter returning values up to 5.3ppm Au3-KIZILCUKUR ANOMALYLow Sulphidation, On the south , strong Au, Ag, Sb, Pb, Zn results indicating higher level of epithermal system, rockchip samples are highly anomalous in the range 0,5 to 8.0 g/t4-KUCUKDERELow Sulphidation/High Sulphidation
30CENTRAL TURKEY 1-KAYMAZ PROSPECT Epithermal system Several phases of silicification and brecciation. Signification gold grades of up to 6 g/t.2-SOGUT ANOMALYCarlin Style Mineralizations Extensive old Au workings where mineralisations appear to be associated with quartz-calcite veinlets penetrating limestone, or with quartz-clay-limonite schists stockworked by calcite veinlets,or earthy-limonitic clay,yielding gold values in the range 0.5 to 22 g/t3-HIMMET DEDE ANOMALYCarlin Style Mineralizations Widespread distribution of Au,Sb,As,Hg and W in these anomalies hosted by the limestone close to a major tectonic boundary may represent Carlin-Type Au mineralisation gold values up to 0.9 g/t.
32EASTERN TURKEY 1-MASTRA WEST Low Sulphidation, Extension of 2 major quartz veins. from drill hole (MD61) g/t Au2-TORUL PROSPECTLow Sulphidation, Of the order of 24 grab rockchip samples are highly anomalous in the range 0,5 to 9,4 g/t with 7 samples >4 g/t3-ERCIS ANOMALYPorphyry Related, Results are pending.