Geochemical interpretation of the Moroko Gold Project, Nigeria.

Valls Geoconsultant Geochemical Interpretation of the Moroko Gold Project Nigeria.

ENL Consortium Ltd Plot 1847 Mahathir Mohammed Street off TY Danjuma Street, Asokoro Abuja To: Prince Clement Haastrup, Prof Larry Awosika, Mrs. Adetokunbo Ajayi Obe From: P. Geo. Ricardo A. Valls, Dr. Kunle Amoo

July 21st, 2021

1008-299 GLENLAKE AVE, TORONTO, ON M6P 4A6 C +1-416-726-7691 https://www.linkedin.com/in/vallsgeoconsultant/ ORCID: https//orcid.org/0000-0002-5421-0914

Table of Contents Introduction ........................................................................................................................................... 4 Access .................................................................................................................................................... 4 Regional Geology .................................................................................................................................. 6 Ilesha Gold............................................................................................................................................. 8 Moroko Soil Sampling and Lithogeochemical Sampling. ................................................................ 8 Geochemical Interpretation ................................................................................................................. 13 Soil sampling results........................................................................................................................ 13 Lithogeochemical samples .............................................................................................................. 15 Combine mineralization .................................................................................................................. 17 Mineral Target Estimation ....................................................................................................................... 20 Conclusions and Recommendations ........................................................................................................ 21 References ............................................................................................................................................... 25

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List of Figures Figure 1. Regional geology of Osun State in Nigeria ............................................................................... 6 Figure 2. Factual map of the soil sampling for the Moroko project. ......................................................... 9 Figure 3. 3D model of the factual data of the soil sampling at the Moroko project. ............................... 10 Figure 4. Factual map of the lithogeochemical sampling at Moroko project. ......................................... 11 Figure 5. 3D factual map of the lithogeochemical sampling at Moroko project. .................................... 12 Figure 6. Quartile map for the gold mineralization at the Moroko project. ............................................ 13 Figure 7. Quartile map for the base metal mineralization at the Moroko project. .................................. 14 Figure 8. Total mineralization quartile map for the soil samples at the Moroko project. ....................... 15 Figure 9. Quartile map for the gold mineralization from the lithogeochemical survey at the Moroko project. ..................................................................................................................................................... 16 Figure 10. Quartile map for the base metal mineralization from the lithogeochemical survey at the Moroko project. ....................................................................................................................................... 17 Figure 11. Total mineralized targets at the Moroko project. ................................................................... 18 Figure 12. Total mineralized targets in 3D at the Moroko project. ......................................................... 19 Figure 13. Proposed works at Moroko project. ....................................................................................... 23

List of Tables Table 1. Mineral target estimations for the Moroko project. .................................................................. 20 Table 2. Location of the proposed trenches at the Moroko project. ........................................................ 23 Table 3. Location of the proposed collars for the drill holes at the Moroko project. .............................. 24 Table 4. Most probable targets for alluvial deposits. .............................................................................. 24

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Geochemical Interpretation of the Moroko Project, Nigeria INTRODUCTION Valls Geoconsultant (VG), a private Canadian company based in Toronto, was hired by Senior Geoscientist Kunle Amoo to complete the interpretation of an exploration program on the Moroko target. VG had previously trained the staff in the proper exploration practices (CIM, 2018). Valls Geoconsultant and Senior Geoscientist Kunle Amoo has worked on various gold and polymetallic mine sites in Nigeria namely Abeda, Arufu, Ayin, Libeli, Gadaoli, Ibeto, Iperindo, Iloya and Moroko being reported.

Aims and Objectives The main aims and objectives are to: 1. Identify Mineralization Targets.

2. Propose further works on the identified targets.

3. Determine the grade and resource estimates of the Moroko Targets and prepare a Technical Report for Investors.

Access Access to the project is 10 minutes’ drive from Falola Hotel in Oke Omiru, Ilesa, Osun State, South-West Nigeria. This Exploration Project was undertaken on March 20-30, 2021. The team comprised of Three Geologists from Consultant’s team, 1 Fulltime ENL Worker, Manager of the alluvial operation and 7 ENL Part time workers. Moroko Village is in Atakumosa East Local Government of Osun State. The Village is calm and there was no need for security men to guide us. The villagers were also accommodating and gave us various leads.

Methodology.

After an initial first day (Day1) of reconnaissance survey of the Moroko Property; Rocks/Outcrops visibilities, Rivers and streams occurrences and previous trenches done by some consultants prior and observations of artisanal works and pits, A 1km by 1km 4

grid was planned over the whole Moroko Area using GPS Garmin Base Software, such that the grids lines and stations are already computerised and transferred to the GPS device to enable easier measurements on the field the next days.

Soil sampling, rock mapping, magnetic survey and new trenches were done over the 1km square grid.

There were 6 lines of measurements with a line separation of 200m and the station-station separations were 50m.

Soil sampling was conducted with the aid of a manual auger specially procured in Canada from Deakins Industries, Vancouver, to enable easier drilling of the surface soils to a depth of 1-3m. Soil samplings were obtained on each line at interval of 50m and a total of 126 soil samples apart from the quality control samples/standard samples. All samples were sent to Acts Lab Canada for analysis. Analysis was done in June using enzyme leach code 7.

Rocks were not much in the Moroko Region. Eleven (11) rocks samples were mapped ranging from ferricretes, clay stones, mud stones and quartzites. These were tested with UT1 (ultra trace), in Acts Lab Canada.

Magnetic surveys were carried out on each line at a station separation of 50m and 126 readings each of Gauss and Tesla were both measured and processed and interpreted.

These geophysical measurements were not effective in the identification of the mineralized targets.

Four (4) preliminary trenches of 50m length were dug based on the anomalies of the magnetic readings above. More than 200 samples were mapped from the saprolitic regions, and these samples were analysed at Acts Lab using UT1 like the rock samples.

Activities of data measurements, soil sampling and trenching can be found on YouTube as below: https://youtu.be/H85CCiKxfF8 https://youtu.be/MZvu2_AvqZ0 https://youtu.be/CvNk6javBhU https://youtu.be/oKN5AYQ2qA0 https://youtu.be/qqiP20U7Ekk https://youtu.be/y3y5dJM6CCg https://youtu.be/tSUk5l5YM_E https://youtu.be/Pk-NkOXvj4U

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https://youtu.be/6fWjpH_UW8M Laboratory Analysis and Preliminary Data Processing: Results of analysis for the soil samplings were compiled with the corresponding coordinates in UTM, Eastings and Northings as well as the elevations including the weight of the samples in excel format so that the QP can have a format to run for data processing.

Same were done for the rocks and the trench samples.

Regional Geology Figure 1 shows the Regional Geology of Osun State in Nigeria.

Figure 1. Regional geology of the Osun State in Nigeria.

Osun State is underlain by Precambrian rocks of the basement complex of Nigeria. Several varieties of these rocks possess appreciable degrees of economic mineralization. In Osun State, deep weathering profiles, erosion surfaces and alluvial deposits have accumulated important mineral deposits such as laterites, talc and Gold in stream sediments.

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In Osun State the mineral resources potentials found are Gold, Talc, Feldspars, Cassiterite, Columbite, Granite, Mica, Iron ore, Kaolin, Tourmaline, Aquamarine etc. Though not all these minerals are of economic quantity, but their discoveries have led to further discoveries of more minerals. Mineral reserve presupposes that some type of physical measurement or evaluation has been made of the grade and number of mineral concentrations in place and that profitable extraction now or soon is technologically feasible (Ajayi, 1985).

In 1941 due to prospecting done, Gold was discovered in Ilesha, and it was exploited but only the alluvial deposit was exploited. It was discovered that with more systematic prospecting more deposits of gold could still be found. The discovery of economic deposits of gold in the Southeast of Ilesha led to the discovery of other minerals in Osun State.

The prevailing climate is distinctly tropical with four climatic seasons (Tloeje, 1976): (i) (ii) (iii) (iv)

The long dry or harmattan season (November – March) The long-wet season (March — July) The short dry season (July — August) The short-wet season (August — November)

Osun State is well drained by large rivers and their tributaries, some of which originate from outside the boundaries of the state. The large rivers are the River Osun which is worshipped at Osogbo. There is a dam on River Osun at Asejire, which supplies the city of Ibadan (Capital City of Neighbouring Oyo State) with more than 70 percent of its water River Shasa and River Owena. These rivers together with their tributaries provide an adequate drainage network for the state and should provide ready sources of water for domestic and Industrial purposes.

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Ilesha Gold The Schist Gold Belt of Ilesha is the best in West Africa, yet it remains for a long tapped undeveloped. With the advent of Segilola Golds in Iperindo. The global gold community is gradually shifting to Ilesha to explore and develop the virile gold potential of the region.

ENL has taken a giant leap with the preliminary basic exploration of the ENL Licence of Moroko Gold Property. There is a need for secondary exploration techniques such as Induced Polarisation and Resistivity Methods of Geophysical prospecting, as well as drilling to get an indicated or Measured Resources Estimate in accordance with NI 43101.

Below are the results of the preliminary exploration investigations.

Moroko Soil Sampling and Lithogeochemical Sampling.

The QP carried out the interpretation of the processed data from a soil and lithogeochemical survey, applying compositional data analysis (Valls Álvarez, 2019).

To understand how the processing and Interpretation was done for ENL Moroko Project, the author is hereby showing a Reference similar gold project in Arufu in which the procedures are same and can be seen on YouTube- https://youtu.be/1eoUjOTajTU. This shows how generally the processing and Interpretation of data from other gold projects such as Libeli, Gadaoli and now ENL Moroko Ilesha Gold Project are being processed and interpreted. Special Thanks To Japaul Gold Ventures for usage of this reference You Tube in this and other gold project reports.

Magnetic Surveys: The Magnetic Surveys Carried Out after Processing and Interpretation did not correlate to the mineralization targets like the soils and lithogeochemical surveys thereby author is reluctant to display the results since there would be a new geophysical measurement, IP and resistivity methods which are recommended to be done on the two main mineralisation targets identified in Moroko. IP and Resistivity will indicate the metallic mineral anomalies, show the electrical properties of the layers as well as of the rock properties responsible for the mineralisation in the Moroko Area.

It must however be noted that the preliminary trenches dug were as a result of the anomalies of the magnetic properties of the area chosen to be excavated.

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Raw data of the magnetic readings as well as the processed and interpreted maps are attached separately in another file with this report.

Figures 2-3 show the factual map of the Moroko Gold Project area.

Figure 2. Factual map of the soil sampling for the Moroko project.

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Figure 3. 3D model of the factual data of the soil sampling at the Moroko project.

As it is observed above in the figures 2D and 3D, there are some atypical samples in the area of investigation. Atypical samples are those that differ the most from the general population. Those shown in Figs. 2 and 3 are 100% different than the rest of the population. This usually indicates zones of mineralization or lixiviation.

Figs. 4 and 5 shows the factual data for the lithogeochemical (rock) sampling.

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Figure 4. Factual map of the lithogeochemical sampling at Moroko project.

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Figure 5. 3D factual map of the lithogeochemical sampling at Moroko project.

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Geochemical Interpretation The QP used a combination of Excel, CoDaPack, and SURFER (v.22.0.111) to interpret the processed data. The complete sequence of the processing of the data is attached in an electronic format to this report (Moroko processing.xlsm). The objective of the processing was to create a series of quartile maps (https://youtu.be/No-G9G7alOw) of the areas with potential gold and copper mineralization in the Moroko project.

Soil sampling results Figs. 6-8 show the quartile maps for each type of mineralization.

Figure 6. Quartile map for the gold mineralization at the Moroko project.

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Figure 7. Quartile map for the base metal mineralization at the Moroko project.

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Figure 8. Total mineralization quartile map for the soil samples at the Moroko project.

Lithogeochemical samples Figs. 9-10 show the quartile maps for each type of mineralization.

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Figure 9. Quartile map for the gold mineralization from the lithogeochemical survey at the Moroko project.

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Figure 10. Quartile map for the base metal mineralization from the lithogeochemical survey at the Moroko project.

Combine mineralization Figs. 11-12 shows the total mineralization targets at the Moroko project.

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Figure 11. Total mineralized targets at the Moroko project.

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Figure 12. Total mineralized targets in 3D at the Moroko project.

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Mineral Target Estimation Just to give an idea of the mineralized potential of the area, the QP prepared a series of estimations for different thickness of a potential mineralized zone, an Au cut-off of 10 ppb, and a dry density of 2.65 g/cm3 (Table 1). For an actual resource estimation compliant with a NI 43-101 resources report, more trenches and or drilling must be done to get an inferred or indicated mineral resource estimates.

Table 1. Mineral target estimations for the Moroko project.

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Conclusions and Recommendations The Moroko project shows indication of a gold mineralization probably related to a felsic intrusive or hydrothermal activity related to such intrusive. Small geochemical signatures also indicate the presence of base metal mineralization, probably distal from the same intrusive.

The mineralization is located to the north and apparently is divided in two (NE and NW) portions by a fault occupied by a stream. The NW section is more eroded than the NE portion mineralization the atypical samples, and ferricretes covering the dolomite. Those are the most important targets.

However further works must be done to have the NI 43101 report in place. These includes: 1. Detail study of the two mineralised targets (Gold and Copper) vis-à-vis detailed Geological and Structural Mapping.

2. Geophysical surveys over the two mineralised targets using Induced Polarisation and Resistivity Methods.

3. Propose more drilling points and confirm previous ones that are already mentioned in the target area with the aid of 2 above.

The QP and Senior Geoscientists further recommends that the identified target zones in Fig. 13 should be studied by Induced Polarisation and Resistivity Method, and not other geophysical methods because in the IP method, the presence of an indication is sufficient to define an anomaly, rather than a difference in measurement level. That is to say, the IP phenomenon usually has a low background or threshold value above which measurements can be simply called 'anomalous'. Thus, there is an advantage to the IP method in that it yields a more definitive interpretation. This distinction is in marked contrast to the closely related resistivity and self-potential prospecting methods, which are seldom as direct.

As the IP is being done, more trenches could follow as indicated in further works. A pole dipole (PDP) array should be used on the survey for the IP. After the IP is completely done, drilling should be done. It is strongly emphasised once again that IP geophysical survey will help the Moroko Gold Property so that the drilling could be near perfect.

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Also, a more detailed geological mapping of the two main targets should be completed for structural analysis. While the IP/resistivity is going on, The Senior Geoscientist can lead two geologists to map in detail the lithologies of the two main targets, analysis of the rock samples however few or much in numbers should be done in ACTS LAB Canada and a thin section can also be made for petrographic studies.

Also, the QP and the Senior Geophysicist are recommending a preliminary twelve (12) proposed drill holes based on the orientations of the two mineralisation targets. However, these 12 holes are to be done after the IP Geophysical surveys have been completed and more holes added to be drilled. Six (6) new trenches of 100m length minimum and 4-5m depth are hereby proposed to be done during the IP survey. This is achievable after few IP lines, e.g., Line 1 and 2 have been surveyed.

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Figure 13. Proposed works at Moroko project.

Table 2 shows the location of the proposed trenches.

Table 2. Location of the proposed trenches at the Moroko project.

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Table 3 shows the location of the collars of the proposed drill holes.

Table 3. Location of the proposed collars for the drill holes at the Moroko project.

A final note on the results of the geophysical survey. Both Gauss and Tesla measurements have a strong positive correlation (r>0.84) and none of them appear to be related to the mineralization. That is the reason they were not included in the maps in this report, but it is provided in a separate file and submitted alongside this report.

Table 4 indicates the location of the most prospective areas for alluvial deposition in the project.

Table 4. Most probable targets for alluvial deposits.

Easting 687269 687269 687318 687464 687176 687437 687437 687224 687346 687488 687370 687418 687440 687440 687273 687321 687321 687467 687078 689165 687341 687390 689165 687466

Northing 847230 847230 847231 847230 847033 847229 847229 847033 847231 846636 847034 847033 846634 846634 847034 847034 847034 847034 847033 844953 846437 846636 844953 846834

Elevation (m) 346 346 348 351 353 353 353 355 355 356 356 356 357 357 357 357 357 358 359 360 360 360 360 360

S/N 133 134 135 139 108 137 138 110 136 69 114 115 67 68 111 112 113 116 106 37 43 66 73 93

Easting 689165 686746 687291 687339 686885 687030 686498 686498 687418 687241 687391 686796 686981 686696 686933 687127 686548 687191 687492 687492 686646 687290 687369 687369 686932

Northing 844953 846633 846437 846637 846833 847032 846434 846434 846834 846437 846437 846634 847033 846633 846832 847033 846434 846436 846438 846438 846633 846636 846834 846834 847032

Elevation (m) 360 361 362 362 362 362 363 363 363 364 364 364 364 365 365 365 366 366 366 366 366 366 366 366 366

S/N 109 53 42 65 79 105 23 24 92 41 44 54 104 52 80 107 25 40 46 47 51 64 90 91 103

Note: In red are the most probable targets for alluvial deposits.

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References CIM. (2018). CIM Mineral Exploration Best Practice Guidelines. 514.

Valls Álvarez, R. A. (2019). Exploring Geological Data with Weka, CoDaPack, and iNZight Graphical Instructions. Valls Geoconsultant.

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