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I very much look forward to the work and results ahead. FY17 Outlook & Guidance The Company’s forecast production guidance for FY17 remains between 35,000 to 40,000 oz of gold at operating cash costs of between US$800 – US$900/oz. As in the past, variations in production and unit costs are expected to occur, quarter on quarter, as the mine plan draws ore from multiple sources at varying grades, stages of development and stripping factors. The Company expects to have higher unit costs in Q2 as underground staff and equipment are transferred from the Arenal UG operation in its final months of production to the SGW UG development which is expected to commence production by the end of November 2016. Q1 17 Financial Summary Cash flow from operations before working capital was US$4.8 million compared to US$0.2 million for Q1 16, mainly as a result of the higher gold prices received in Q1 17 and lower production rates year over year. Net profit after tax was US$2.8 million compared with a loss of US$1.7 million in Q1 16. The Company invested US$1.9 million in capital expenditures and US$0.6 million in exploration expenditures compared with US$1.0 million and US$1.0 million respectively in Q1 16. During the Quarter, the Company advanced the development of the ramp and access in the San Gregorio underground mine as planned and on budget and commenced the construction of the phase 4A of the tailings dam. http://wowgabriellamarshall.denaliinstitute.org/2016/08/05/while-the-following-job-resources-may-sound-simple-combining-them-together-in-a-mass-market-yourself-campaign-will-prove-successfulThe cash balance at the end of the Quarter was US$5.0 million compared with US$4.3 million at May 31, 2016. The Companys debt balance was US$0.3 million compared to US$0.4 million at May 31, 2016. Forward Looking Statements All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute “forward-looking statements” within the meaning of certain securities laws, including the “safe harbour” provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate.

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