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Newcrest Mining Limited Joint Venture 

Leading producing gold company Newcrest Mining Limited (A$17.4 billion market cap) entered into a farm-in and joint venture agreement on 15 December 2015 to spend US$1.7 million on exploration over three years to earn a 75% interest on Kodal’s 100% owned Dabakala gold project in Côte d'Ivoire.

The Dabakala project is adjacent to concession areas already held by Newcrest.

Summary terms of the farm-in and joint venture agreement:

·      Newcrest can earn a 75% interest in the licence covering the Dabakala concession by incurring exploration expenditure of US$1.7m within three years.

·      Newcrest to incur a minimum of US$750,000 expenditure before withdrawal from the joint venture.

·      Kodal will maintain a 100% interest in the concession until Newcrest completes the US$1.7 million expenditure.

Resolute Mining Limited Joint Venture 

The Joint Venture with ASX listed gold mining major Resolute Mining Limited (A$1.1 billion market cap) encompasses three concession areas in Cote d’Ivoire – the Nielle and Tiebissou concessions and M’Baihaikro concession application.  Under the terms of the agreement, Resolute has the ability to earn a 75% interest in the concessions through the expenditure of US$3 million over four years. The Joint Venture commenced in February 2015.

Summary Terms of the JV Agreement:

·      Resolute can earn a 75% interest in three Cote d’Ivoire concessions through exploration expenditure of US$3 million within four years.

·      Resolute must incur a minimum of US$500,000 expenditure before it can withdraw

·      Kodal will maintain 100% of shareholding until Resolute complete the US$3 million expenditure. Following completion of the earn-in expenditure, Kodal will be free carried through to completion of a feasibility study.

This agreement with Resolute ensures that extensive exploration will be completed on the ground while maintaining significant exposure to exploration success.

Resolute have commenced exploration, with geological mapping, geochemical sampling and wide-spaced reconnaissance aircore drilling completed on the Tiebissou concession.  Results are pending for the reconnaissance air core drilling.

On the Nielle concession, Resolute has completed a programme of geological mapping and reconnaissance. In addition, Resolute plans to undertake a first-pass geochemical sampling program to test the Niele exploration licence area.

The granting of the M'Bahaikro concession is progressing through the Cote d'Ivoire ministry.