NI 43-101 Technical Report for Vohitsara Graphite Project

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Prepared as an NI 43-101 (National Instrument ‘Standards of Disclosure for Mineral Projects’) by Steven Goertz, Principal, Hendry Consulting.

Hendry Consulting Sarl
2nd Floor, Caldwell Business Suites
Immeuble Assist, Ivandry
Antananarivo 101 MADAGASCAR
Tel: +261 3254 311 90

The Report is focused on the Main Zone at the Vohitsara Project and in turn prepares the project for the Company's 2016 drill program, potential resource definition and economic assessment for viable production scenarios.

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Conclusions:

- Initial exploration results have indicated the presence of a reasonable quantity, quality and tenor of flake graphite mineralisation consistent with the generally high quality of flake graphite found in central eastern Madagascar.

- Whilst it cannot be certain that further exploration will result in the delineation of a commercially viable mineral resource, the results have vindicated the decision to acquire the project.

- Surface trenching and ground EM have proven effective in empirically delineating graphite mineralisation at the project.

- The Vohitsara permits’ location close to both the sealed RN2 highway and the port of Toamasina, combined with average elevation in excess of 50m AMSL provide excellent logistic paradigm for future development.

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