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Drilling the Hottest Ground in Mexico and Courting Majors

An interview with Paul Sorbara President and CEO Golden Goliath Resources
OSIX:

Golden Goliath is Now Well Poised to be Taken Out

Paul, I thought you might begin with an update on the companys core projects and the progress that youve made there since we last spoke.

Paul Sorbara
President and CEO Golden Goliath Resources

Paul: I believe the last time we spoke was in 2011, and at that time, we were completing our work on our Las Bolas property. Well, all of our properties are in northwestern Mexico, but Las Bolas is one in particular with a lot of old workings and weve been doing a diamond drill program on that property and that worked out for us quite well. Well enough so much so, that Agnico-Eagle, which is one of our largest shareholders and theyre also on our Board, decided to enter into a joint venture or an earn in and shareholders agreement on that property. So, its like a joint venture, and theyre working on that property right now. Under the terms of that agreement, Agnico-Eagle will spend $5,000,000 to earn 51% of the property, and then they have the option of doing a feasibility study or spending another $10,000,000 for a further 20 points, leaving them with 71 and Golden Goliath with 29, and thats a very good deal for them and for us. Theyre very capable and were very happy to have them working on that property. Once that was signed, we moved to the next property adjacent to that to the east, which is called Nopalera, and Nopalera is a very large property, larger than Las Bolas, and its really a porphyry type of property, and we hadnt worked on it before because there are not that many porphyries in the Sierra Madre. But now, as it turns out, within the last couple of years, there has been a major new discovery called Ori-

All of our properties are in northwestern Mexico, but Las Bolas is one in particular with a lot of old workings and weve been doing a diamond drill program on that property and that worked out for us quite well. Well enough so much so, that Agnico-Eagle, which is one of our largest shareholders and theyre also on our Board, decided to enter into a joint venture or an earn in and shareholders agreement on that property.
Corporate Office - Canada

Golden Goliath
TSXV : GNG
www.goldengoliath.com jps@goldengoliath.com

syvo, and it is actually adjacent to our Nopalera property on the east side, and Orisyvo is a porphyry style gold deposit and its owned by Fresnillo PLC, which is one of the largest mining companies in the world. And, over the last several years, Orisyvo has gone from basically a brand new project to having a resource estimated and quoted as being 9.6 million ounces of gold and theyre fast tracking this new discovery into production. Theyre paving the two-lane gravel road leading into Uruachic becoming a four-lane paved highway. Theyre putting in big concrete bridges. Fresnillo spent $40,000,000 last year alone on exploration and development of the Orisyvo deposit, and were extremely fortunate, because now we have Agnico-Eagle as a partner on one of our properties on one side of us and Fresnillo PLC on the other. And, Fresnillo PLC has a sister company called Peoles, which is another very large Mexican mining company and they have now surrounded the entire Uruachic district with their own claims because they recognize the importance of this new discovery at Orisyvo. So, they have essentially turned the whole district into a gated community and all of the Golden Goliath claims are inside of the gates. And so, since I spoke to you last, weve really been working on the surface of the Nopalera property, which has just about all of the same characteristics as they find at Orisyvo next door, and were getting ready for a major drill program on our Nopalera property. Also, during the time period since we last spoke, we have another joint venture partner called Comstock Metals. They had an agreement finally approved by the Stock Exchange on our Corona property, which is about 15 kilometers further to the northwest, and they have just completed their first diamond drill-

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Its related geologically to a caldera structure, and thats a very important thing for looking for gold and silver in the Sierra Madres, and it has primarily been a silver and gold camp. There are lead and zinc credits, but nobody has really tried to exploit the lead and zinc. There is good access into the town of Uruachic. You turn off a main state highway for about 60 kilometers into the town on a gravel road. Actually, the first 15 kilometers of that is already paved. And so, then there would be a gravel road leading to the center of the town. Now, as I mentioned earlier, because of the new discovery at Orisyvo, that gravel road is being turned into a paved highway as well. So, there is excellent access and once you get to the town, then you go on drill roads around the various properties, but theyre all drivable. And, there is electrical power into the town. There is a large river called the Rio Oteros that flows along the southern edge of the camp. So, there is year-round water supply. There is electricity. The local people have a history of mining. Theyre not afraid of mining and theyre keen to get jobs. A lot of them have been working for me for a long

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ing on that property and theyre coming out with very good results.
OSIX:

Expand a bit more on these primary assets and give us a better sense for the infrastructure in place within these regions as it relates to resource exploration, development, and production.

Paul: The Uruachic district surrounds the little town of Uruachic itself, which was founded in 1735 by two Spaniards who were looking for gold and silver for the Spanish crown. So, its an old mining town and an old mining district. We have a group of maybe, eight to ten properties, depending on how you want to lump them, that covers most of that entire district and certainly, all of the major old workings, and there are many, many, many old workings. And, actually, in the 1800s, the old time miners were mining high-grade silver and smelting that and minting their own coins stamped with the name Uruachic on them, and weve got pictures and weve seen some of the actual coins from 1873. So, its an old mining district.

Within the last couple of years, there has been a major new discovery called Orixyvo, and it is actually adjacent to our Nopalera property on the east side, and Orisyvo is a porphyry style gold deposit and its ownd by Fresnillo PLC, which is one of the largest mining companies in the world.
time. So, there is excellent infrastructure, there is excellent community relations, and all in all, its a very good place to work and were very pleased with it. And, weve sort of been developing all of our different properties to various stages, and our strategy is to develop them first

Old stamp mill for crushing rock on one of our properties.

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ourselves and then option them out to other people. And. now that so many big players have come in on the market, Nopalera could be the golden ring for us, and we actually have some commercials on BNN right now, where we have Sean Boyd, the Chief Executive Officer of Agnico-Eagle saying that Golden Goliath is their most important and exciting investment opportunity in Mexico today.
OSIX: What is it that now defines and differentiates this company from others in the industry? Paul:

Well, I think the main thingand were actually producing a full-length video with a lot more clips of Sean Boydbut, he sort of addresses that question and that is that I spent eight years privately between 1992 and 2000 putting this land package together. So, I was really the first guy in there. So, all of our claims we own 100%. Theyre fully paid for. All we have to do really is the annual taxes and the assessment work and thats more than covered. And so, we have a sort of, unique first step. We were there first on the ground, and Im certainly sure that if we werent there, Fresnillo and Peoles would love to have all of the claims that we have right now. So, we were in early and we got the best ground before anybody else knew what was happening.

Fresnillo spent $40,000,000 last year alone on exploration and development of the Orisyvo deposit and were extremely fortunate, because now we have Agnico-Eagle as a partner on one of our proerties on one side of us and Fresnillo PLC on the other.
his past. So, Im not sure what category to put him in, but hes a jack of all trades, but he loves getting out there and hitting the rocks and being on the property. We also have Engineer, Daniel Nofrietta, who is our Mexican Exploration Manager. Daniel is a geologist with probably 30 or 40 years of experience in the Sierra Madres. He knows the area and the people very, very well and he heads our office in Chihuahua, Mexico. Then, we have myself. I am, as I mentioned, a geologist. I have a Masters degree and I have many, many years in this business, and Im certainly a firm believer in the project that were doing. And then, to round out our Board, we have another businessman, a cousin of mine actually, Mr. Edward Sorbara. Hes not in the mining industry. Hes in real estate and other things, but hes an excellent businessman and hes on our Audit committee and he does a great job there. So, we have a large variety of experience and depth on our Board and were very proud its a very strong Board.

Where do you see this company two to three years out? Paul: Being surrounded by giant companies and having giant companies on our Board and everything, the most likely scenario is that we would get taken out either by Agnico or by Fresnillo or Peoles, and you know, our whole market cap is only $20,000,000 and Fresnillo spent $40,000,000 on exploration on the property next to us. So, I think its really just a matter of time until we start drilling on Nopalera, and if we start to come up with anything at all like what they have at Orisyvo, well probably be taken out of the picture. If that doesnt happen, we would always have the option of trying to go into production ourselves, seeing as there are so many other mines in the area.
OSIX: OSIX:

Why should investors consider Golden Goliath as a long-term investment opportunity?

OSIX: What more can you tell us about this present Board and Management Team at Golden Goliath? Paul:

Well, we have a strong Board. We have Mr. Marc Legault, who is the Senior Vice-President now at Agnico-Eagle Mines Limited. Hes on our Board, as is Dr. Andrew MacGregor Robertson. He was one of the founders of Stephen Robertson Kirsten, an internationally famous geological consulting company. We have Mr. David Moore who is a very well known Canadian exploration geologist. David won the Prospector of the Year award in 2011. We also have Mr. Stephen Pearce. Hes our CFO, and Stephen is a very interesting man. He has a law degree, he has an accounting degree, and hes half geologist too. He has actually been a mine manager in

Paul: Well, we own all of our claims 100%. We have no debt. We have money in the bank. Were about to do a major drilling program on a property that is directly adjacent or contiguous to a brand new discovery of up to 10,000,000 ounces of gold. We have strong management and were in a very, very good part of the world for looking for the type of deposit that were looking for.

OSIX NOTES
Follow the latest developments on the los Bolas property and Golden Goliaths progress via interviews and updates at www.osixmedia.com

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