DEVELOPMENT AND EXPLORATION IN ECUADOR

Loma Larga

Location: Southern Ecuador
Ownership: 100%
Target: Gold
Status: Preliminary Feasibility Study

INV Metals completed a positive Preliminary Feasibility Study (“PFS”) on the Loma Larga gold property in 2016. The PFS contemplates an underground mine with a daily production rate of approximately 3,000 tonnes per day and average annual gold production of 150,000 ounces, with an initial life of mine of approximately 12 years. The PFS includes new capital cost estimates, detailed engineering and mine plans, and environmental studies. The Study is an update of, and replaces, INV Metals’ 2015 PFS.

PFS HIGHLIGHTS
Estimated Mine Life	~12 years
Average Mine Production Rate	3,000 tpd
Tonnes Processed	11.64 million
Average Grade of Mined Mineral Reserve	4.98 g/t Au, 28.00 g/t Ag, 0.29% Cu
Average Annual Gold Production	150,000 oz
Total Gold Production	1.68 million oz
Total Silver Production	9.83 million oz
Total Copper Production	71.30 million lbs
Adjusted Operating Costs⁽¹⁾	$510/oz Au sold
All-in Sustaining Costs⁽¹⁾	$590/oz Au sold
Initial Capital Costs	$285.9 million
Sustaining Capital and Closure Costs	$94.2 million
Pre-Tax IRR	35.7%
After-Tax IRR	26.3%
Pre-Tax NPV @ 5%	$489.9 million
After-Tax NPV @ 5%	$300.9 million
Gold Price	$1,250/oz

Adjusted Operating Costs and All-in Sustaining Costs are calculated in accordance with the World Gold Council’s Guidance on Non-GAAP Metrics – All-In Sustaining Costs.

MINERAL RESOURCE ESTIMATE – JUNE 30, 2016
Resource Classification	Zone	Tonnage (Mt)	Grade Au (g/t)	Contained Au (M oz)	Grade Ag (g/t)	Contained Ag (M oz)	Grade Cu (%)	Contained Cu (M lb)
Indicated	High Grade Main	10.4	6.14	2.06	34.6	11.6	0.35	81.7
	Low Grade Main	7.4	2.02	0.48	19.4	4.7	0.14	22.3
	Total	17.9	4.42	2.55	28.3	16.3	0.26	104.0
Inferred	High Grade Lower	0.2	6.99	0.04	22.2	0.1	0.56	2.1
	Low Grade Main	5.7	2.06	0.38	25.4	4.6	0.10	12.9
	Low Grade Lower	1.5	2.62	0.13	19.4	0.9	0.18	6.0
	Total	7.3	2.29	0.54	24.1	5.7	0.13	21.0

CIM Definition Standards were followed for Mineral Resources.
Resources are reported at an NSR cut-off value of US$60.00/t.
Mineral Resources are estimated using a long-term gold price of US$1,500 per ounce, silver price of US$25.00 per ounce, and copper price of US$3.50/lb.
Mineral Resources are inclusive of Mineral Reserves.
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Average bulk density is 2.7 t/m³
Numbers may not add due to rounding.

PROBABLE MINERAL RESERVES – JUNE 30, 2016
Zone	Tonnes (kt)	Grade (g/t Au)	Contained Au (k oz)	Grade (g/t Ag)	Contained Ag (M oz)	Grade (% Cu)	Contained Cu (M lb Cu)
Stopes	8,540	5.18	1,422	28.5	7.8	0.31	57.6
Drift and Fill	2,128	4.05	277	25.8	1.8	0.21	9.7
Ore Development	873	5.62	158	30.5	0.9	0.32	6.1
Incremental Ore	97	1.50	5	9.8	0.0	0.09	0.2
Total	11,638	4.98	1,862	28.0	10.5	0.29	73.6

CIM Definition Standards were followed for Mineral Reserves.
Mineral Reserves are reported within mine designs carried using a cut-off of 2 g/t Au. Incremental ore consists of development that meets an incremental cut-off grade of 1 g/t Au.
Mineral Reserves are estimated using average long-term prices of US$1,250 per ounce gold, US$3.00 per pound copper, and US$20 per ounce silver.
A minimum mining width of 4 m was used.
Bulk density is 2.7 t/m³.
Numbers may not add due to rounding.

The Mineral and Resource estimates were prepared in accordance with the 2010 CIM Definition Standards for Mineral Resources and Reserves as incorporated by references in National Instrument 43-101. Further information about the Project is contained in the Technical Report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador”, dated August 29, 2016 prepared by Mr. Jason Cox, P.Eng, Ms. Kathleen Altman, Ph.D, P.E., David M. Robson, P.Eng., M.B.A. and Ms. Katya Masun, M.Sc., P.Geo, of Roscoe Postle Associates Inc. and Ms. Lindsay Robertson, M.Sc., P.Geo. and Mr. Carlos Diaz, P.Eng., of Klohn Crippen Berger Ltd. (See Technical Report).