Invicta, Lupaka Gold’s 100% owned flagship project is an advanced stage gold-copper polymetallic underground deposit located approximately 120 km north of Lima. Over $15 million of capital has been spent by previous owners on development and infrastructure at Invicta, and management expects to commence potential production in the second half of 2018 by using third-party mining contractors and using the adit and existing workings. The Invicta project is fully permitted and community agreements are in place. Highlights:

• Mining contractor selected, mobilization has commenced and expected to take two to three weeks
• Rehabilitation, preparation and initial development of Invicta will commence in February 2018 with three crews, new adit and 3430 Level to be constructed
• Bulk samples to be extracted and sent to toll-milling facilities in order to test and optimize metallurgical recoveries and concentrate quality
• Road construction resumes after holiday period and is approximately 20% complete
• PEA on track for completion in the first quarter of 2018.

By early February 2018, the company anticipates PLH, the mining contractor, will have established three crews at site focused on:

• Rehabilitation of the existing 3400 Level including widening access points, reinforcing ground support, and the installation of services
• Driving a new access drift from surface to develop the first sublevel for mining and a cross-cut at the 3430 Level. This new access point, when connected by the raise from the 3400 Level, will complete the ventilation circuit and provide a secondary egress from underground
• Preparing initial development on the 3430 Level access to the mineralized zone. Sampling will be performed and cross-referenced with the block model. Bulk samples will be sent to toll-mill facilities to test and optimize throughput rates, metallurgical recoveries, and concentrate quality.

The rehabilitation, preparation and initial development activities are expected to be completed mid-2018.

The potential underground operation will be focused on accessing Invicta’s Measured and Indicated mineral resources, which was prepared by SRK Consulting (US) Inc. in 2012 estimated as:

Measured mineral resource – 131,000 t grading 6.65 g/t gold equivalent for 28,000 contained oz of gold, from: 18,000 oz Au grading at 4.29 g/t, 133,000 oz Ag grading at 31.71 g/t, 2,119,000 lb Cu grading at 0.73%, 1,110,000 lb Pb grading at 0.39% and 1,105,000 lb of Zn grading at 0.38%.

Indicated mineral resource – 8,513,000 t grading 3.43 g/t gold equivalent for 939,000 contained oz of gold, from: 573,000 oz Au grading at 2.09 g/t, 4,285,000 oz Ag grading at 15.65 g/t, 79,048,000 lb Cu grading at 0.42%, 45,171,000 lb Pb grading at 0.24% and 53,482,000 lb of Zn grading at 0.21%.

An Inferred mineral resource estimate of 2,534,000 t grading 2.90 g/t gold equivalent has also been established.

The 2012 Mineral Resource Estimate was stated at a 1.30 g/t gold equivalent cut‐off. Metal prices assumed for the gold equivalent calculation are $1,500/oz for gold, $32.50/oz for silver, $3.90/lb for copper, $1.05/lb for lead and $1.00/lb for zinc. The gold equivalent calculation assumes 100% metallurgical recovery, and does not account for any smelting, transportation or refining charges.

Invicta’s approved EIA allows for mine production of 1,000 t/dd, although the current mining plan is limited to 350 t/d.