G-Resources Group Limited

G-Resources Ore Reserve Explanatory Notes as at 11 May 2011

G-RESOURCES ORE RESERVE EXPLANATORY NOTES Hong Kong, 11 May 2011 Introduction These notes are intended to provide additional information to support the updated GResources 2011 Ore Reserve Statement which includes the addition of Ore Reserves quoted for the Ramba Joring deposit. G-Resources Ore Reserves as at 11 May 2011 are estimated to contain 3.0 million ounces of gold and 33.6 million ounces of silver, contained within the Pit 1, Barani and Ramba Joring deposits at the Martabe project site in North Sumatra, Indonesia. No changes have been made to the Pit 1 and Barani Ore Reserves since the last Ore Reserve statement issued in June 2010 and the explanatory notes issued at that time remain current. The addition of 315,000 oz gold and 810,000 oz silver represents the new Ore Reserve estimate for Ramba Joring and these notes refer to this estimate. The Ore Reserve estimated and discussed here was undertaken during April 2011 by Mr Quinton de Klerk of Cube Consulting Pty Ltd on behalf of PT Agincourt Resources (PTAR). Mineral Resource Estimate The Pit 1 Ore Reserves are based on the Mineral Resource estimate which was conducted by Quantitative Group (QG) and PTAR in September 2009 and released on 30 September 2009. The Barani Ore Reserves are based on the Mineral Resource estimate which was conducted by Coffey Mining and PTAR in September 2009 and released on 30 September 2009. The Ramba Joring Ore Reserves are based on the Mineral Resource estimate which was conducted by Cube Consulting and PTAR in September 2010 and released on 28 October 2010. The Mineral Resources for Pit 1, Barani, Ramba Joring and Uluala Hulu are shown in Table 2 below.

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Table 2.

Pit 1, Barani, Ramba Joring and Uluala Hulu Mineral Resources

Contained Metal Gold (Koz) 0.43 2.36 1.74 4.53 0.42 0.24 0.66 1.11 0.12 1.23 0.06 0.02 0.08 6.49 Silver (Koz) 7.46 28.46 22.54 58.46 1.14 0.63 1.77 4.47 0.55 5.02 0.77 0.18 0.95 66.20

Deposit 0.5 g/t Au cut-off grade Pit 1

Category Measured Indicated Inferred TOTAL

Tonnes (Mt) 4.36 36.44 41.24 82.04 10.30 6.60 16.90 33.71 4.64 38.35 0.77 0.49 1.26 138.60

Gold Grade (g/t Au) 3.1 2.0 1.3 1.7 1.3 1.1 1.2 1.0 0.8 1.0 2.3 1.5 2.0 1.5

Silver Grade (g/t Ag) 53 24 17 22 3.5 2.4 3.2 4.1 3.7 4.1 31 12 24 15

Barani

Indicated Inferred TOTAL

Ramba Joring

Indicated Inferred TOTAL

Uluala Hulu

Indicated Inferred TOTAL

TOTAL

Significant figures do not imply precision. Figures are rounded according to JORC Code guidelines. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce the Ore Reserves.

Mining Depletion No mining or production has yet occurred at Martabe. Metal Prices Metal price assumptions for the Ramba Joring Ore Reserve calculations were US$1,054/oz for gold and US$17.50/oz for silver.

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JORC Compliance The accompanying statement of Ore Reserves conforms to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code, 2004 edition). The Ore Reserve estimate was completed by Mr Quinton de Klerk, a Member of the AusIMM and a Director and Principal Consultant of Cube Consulting Pty Ltd and a Competent Person under the JORC Code. All information in the Ore Reserve Statement and these Explanatory Notes is based on and accurately reflects information compiled under the supervision of Mr de Klerk. Mr de Klerk has reviewed the Ore Reserve Statement and these Explanatory Notes and has given his consent for the release of the material in the form and context in which it appears. Classification The Ramba Joring Ore Reserve is based on the Indicated Mineral Resources after consideration of all mining, metallurgical, social, environmental and financial aspects of the operation. The Probable Ore Reserves are derived from the Indicated Mineral Resource category. There are no Measured Mineral Resources and no Proved Ore Reserves at Ramba Joring. Mining and Processing Factors and Assumptions The Ramba Joring Ore Reserve estimate is based on conventional open pit mining operations using drilling and blasting, and small excavators loading all wheel drive articulated trucks. To estimate the mining loss and dilution, an ore reserves block model was prepared by averaging the grades of the ore and non-ore proportions across model block volumes for all elements reported in the resource model. This has effectively diluted the ore with the adjacent non-ore blocks and so simulated mining dilution based on a selective mining unit of 12.5m x 12.5m x 5m (x,y,z) compared with the minimum sub-cell resolution of the resource block model of 3.125m x 3.125m x 2.5m. To account for potential ore losses which may occur at the surface on steep terrain, all mineralised material occurring within reserve model blocks with less than 60% of their volume occurring under the modelled topography, was zeroed prior to the estimation of these Ore Reserves. Contained within the Ramba Joring pit design on which the Ore Reserves are based, is a total of 18.7 Mt of waste material resulting in a waste : ore strip ratio of 3.1 : 1 (see Figures 3 and 4). Included in this waste tonnage is 0.2 Mt of material classified as an Inferred resource, above the Ore Reserve cut off grade. The average grade of this Inferred material is 1.4 g/t gold and 3.6 g/t silver. No value has been assigned to this Inferred material in the estimation of these Ore Reserves. Metallurgical test work has been carried out to determine the metallurgical recovery for the ore of the Ramba Joring deposit. The most recent work relating to metallurgical recovery was completed in February 2011 on samples from recent drilling, and provides formulae for gold and silver recovery based on the sulphide-sulphur content of the ore.

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These formulae have been applied to the ore reserves block model to code each block with the metallurgical recovered grades for both gold and silver using the relative formula based on the sulphide-sulphur assays of each block. Average recoveries over the full reserve tonnage for Ramba Joring are 83% and 72% for gold and silver respectively. The Ore Reserves have been estimated following a process of open pit optimisation, detailed pit design and production scheduling using the modifying factors discussed. This process has defined that portion of the Mineral Resource which is considered to be economically viable. Mineral Resources in the Indicated category which are not included in these Ore Reserves are considered to be sub-economical based on the modifying factors used as they either occur outside of the defined economical pit limit or occur below the calculated economic cut-off grade. Cut-off Grade The cut-off grades used in the estimation of the Ramba Joring Ore Reserves is the nonmining, break-even gold grade taking into account mining recovery and dilution, metallurgical recovery, site operating costs, royalties and revenues. An Economic Value (revenue minus non-mining costs) has been calculated for each model block and the cutoff grade is defined as blocks with an Economic Value greater than zero. This equates to an average gold grade cut-off for the deposit of approximately 0.75 g/t Au. Ore Reserve Estimate The Ore Reserve estimates for Martabe are shown in Table 3 below. The Ore Reserve for Pit 1 remains unchanged since October 2009 with a combined Proved and Probable Ore Reserve of 35.0 million tonnes of ore at grades of 2.2 g/t gold and 28.8 g/t silver for in-situ reserves of 2,494,000 oz of gold and 32,408,000 oz of silver. The Ore Reserve for Barani is 4.5 million tonnes of ore at grades of 1.6 g/t gold and 2.8 g/t silver for in-situ reserves of 225,000 oz of gold and 412,000 oz of silver. The Ore Reserve for Ramba Joring is 6.0 million tonnes of ore at grades of 1.6 g/t gold and 4.2 g/t silver for in-situ reserves of 315,000 oz of gold and 810,000 oz of silver. The combined Martabe Ore Reserve is now 45.5 million tonnes of ore at grades of 2.1 g/t gold and 23.0 g/t silver for in-situ reserves of 3,034,000 oz of gold and 33,630,000 oz of silver.

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Table 3.

Martabe Ore Reserve Estimates

Gold Grade (g/t Au) 3.0 2.1 1.6 1.6 2.1 Silver Grade (g/t Ag) 53.5 25.3 2.8 4.2 23.0 Contained Metal Gold Silver (koz) (koz) 428 2,066 225 315 3,034 7,548 24,860 412 810 33,630

Deposit Pit 1

Category Proved Reserves Probable Reserves

Tonnes (Mt) 4.4 30.6 4.5 6.0 45.5

Barani Ramba Joring TOTAL ORE RESERVES

Probable Reserves Probable Reserves

Significant figures do not imply precision. Figures are rounded according to JORC Code guidelines. Ore Reserves for Pit 1 and Barani are estimated using a gold price of US$820/oz and silver price of US$12.50/oz. Ore Reserves for Ramba Joring are estimated using a gold price of US$1,054/oz and silver price of US$17.50/oz. Competent Persons: The information in this report relating to Ore Reserves is based on and accurately reflects reports prepared by Mr Quinton de Klerk. Mr de Klerk is a Director and Principal Consultant of Cube Consulting Pty Ltd and qualifies as a Competent Person under the JORC Code for Reportin g of Mineral Resources and Ore Reserves (JORC, 2004 Edition). Mr de Klerk has given his consent to the inclusion of the material in the form and context in which it appears.

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Figure 2. Map of the Martabe site showing the relative locations of each deposit and planned infrastructure.

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Figure 3. Oblique elevated view looking from the west, showing the Ramba Joring Ore Reserve block model coloured by gold grade, the final pit design and topography.

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Figure 4. Ramba Joring Cross Section (OB98.5N) with Ore Reserve block model coloured by gold grade and the final pit design.

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