Jerusalem

The 100% owned Jerusalem Gold Project comprises one concession covering 225 hectares (2.2 square kilometres) in the Zamora Chinchipe province of south eastern Ecuador, approximately 40km east of the town of Zamora, near the border of Peru. Altitudes on the concession range from 1400 metres to 1900 metres with dense rain forest and steep terrain characterizing the area. The gold mineralization found on the concession is associated with an extensive high grade polymetallic epithermal vein system.

The Company continues to hold the Jerusalem Project in good standing.

History

The district has been mined for gold by local artisanal miners since the mid-1980s. The project area has previously been held under concession rights by various groups and companies. Core Gold owns 100% of the mineral rights on this property.

1984 - The mining camp was discovered by informal miners
1988 - The first systematic exploration, covering an area of some 25,000 ha, was done by Pachicutza
CEM, an association of companies formed in participation with the Industrial Division of the
Ecuadorian Army (DINE). One of the major participants and sources of financing was Prominex
U.K. Work done included regional mapping, geological reconnaissance and a geochemical stream sediment survey.
Most of the now-known prospects and deposits in the district were first described during the work by Pachicutza CEM. These include several gold-bearing polymetallic vein and/or breccia systems associated with porphyry intrusions.
1991 - Prominex U.K. withdrew from the project and TVX Gold Inc. (“TVX”), through its subsidiary
Cóndor Mining, became involved. TVX undertook detailed surface and underground geological mapping.
1994 The Nangaritza Mining Cooperative applied for and was granted the 225 ha Jerusalem Concession.
1995 - The TVX subsidiary, Ecuamining S.A., purchased the Jerusalem concession from the Nangaritza Mining Cooperative.
1995 - TVX constructed local access roads and carried out 29,000 m of drilling on vein and breccia systems.
1996 - TVX carried out a further 10,000 m of drilling and constructed a 725 m long access tunnel into the 1535 level of the Chinapintza Mineral Deposit. Approximately 340 m of this tunnel is on the Jerusalem concession. A few hundred tonnes of mineralized material were stockpiled. TVX completed studies that they described in documents issued at the time as a reserve estimate and feasibility study on the Chinapintza Mineral Deposit.
1998 - TVX withdrew from the project. For some period of time after withdrawing from the exploration and development of precious metal vein and breccia systems, TVX continued exploring for porphyry opper systems within the district.
2001 - Ecuasaxon S.A. acquired the Jerusalem concession from Ecuamining S.A.
2003 - Ecuasaxon S.A. transferred the Jerusalem concession to Elipe. Small scale mining was being done on the Jerusalem concession by a third party for its own account, with the permission of Elipe. Elipe was acquired by Core Gold and remains its subsidiary.

TOTAL MINERAL RESOURCES CONTAINED IN THE JERUSALEM PROJECT
(as per the Jerusalem technical report below)

Category Tonnes
(Thousands)
Au
(g/t)
Ag
(g/t)
Contained Au
(1,000 ozs)
Contained Ag
(1,000 ozs)
Measured 379 14.2 76 173 926
Indicated 576 13.5 81 249 1,495
Total Measured + Indicated 956 13.8 79 422 2,421
Inferred 1,775 15.0 98 856 5,569

Note: A cut-off grade of 2.0 g/t was used to derive the mineral resource estimate.

The Jerusalem Technical Report, October 24, 2014

The Company has filed a report titled "Technical Report - Jerusalem Project, Zamora Chinchipe, Ecuador", dated October 24, 2014, on the Jerusalem Project. The Jerusalem Report was prepared by Allen J. Maynard Bapp Sc (Geol), MAIG, MAusIMM, who is "independent" and a "qualified person" as defined in NI 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). For a complete description of assumptions, qualifications and procedures associated with the information in the Jerusalem Report, reference should be made to the full text of the Jerusalem Report, which is available for review on SEDAR at www.sedar.com and technical reports

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