Quote Number

QIM-001-19

Estimated Samples Volume: 1000 to 1500 samples

Issue Date: 13th February, 2019
Validity: from 14th February to
December 31st, 2019

Hanrine Ecuadorian Exploration Andmining

Av. República del Salvador N34-140 y Suiza – Quito.
Phone: +593 23324164

Attention: Angel Chavez

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 Contents

1. Who we are? ....................................................................................................................................................... 2

2. Scope of Services ............................................................................................................................................... 3
3. Value Proposition .............................................................................................................................................. 3
4. Staying in Touch ................................................................................................................................................ 3
5. Quality Certification .......................................................................................................................................... 3
6. Quality System ................................................................................................................................................... 4
7. Methods and Prices ........................................................................................................................................... 4
Access your data ..................................................................................................................................... 4
Samples preparation............................................................................................................................... 5
7.2.1 Preparation Protocols ............................................................................................................. 5
7.2.2 Additional/Optional Task ....................................................................................................... 5
Analysis ................................................................................................................................................... 5
8. ALS Technological Developments ..................................................................................................................... 9
CoreViewerTM ......................................................................................................................................... 9
TerraSpec® ............................................................................................................................................10
9. Turn Around ....................................................................................................................................................11
10. Payment Condition ..........................................................................................................................................11
11. Storage of Pulps and Reject Policy..................................................................................................................12
12. Statement on Accuracy and Precision ............................................................................................................13
13. General Conditions of Service Provision.........................................................................................................14

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 1. Who we are?
ALS Minerals is part of ALS Limited (formerly Campbell Brothers Ltd), one of the largest assay
testing companies in the word; the company trades on the Australian Stock Exchange, under the
symbol ALQ and its headquarters are located in Brisbane, Australia.

ALS commenced operations in Queensland, Australia in 1974 to provide geochemical services to

the mineral resources sector. Applying simple business strategies of quality service, convenience
and innovative technology, the Minerals business grew from a single laboratory in Brisbane to a
diversified global testing and technical services organization with service offerings that support
mining and mineral exploration, commodity certification, environmental monitoring, asset care
and equipment maintenance, food and pharmaceutical quality assurance and industrial
operations; today the company employs more than 12,000 staff at over 350 locations.

Within this corporate structure, the ALS Minerals division operates a number of hub labs,
preparation labs and mine control labs, also under a set of globally standardized procedures,
compliance to quality standards and through the operation of a centralized quality information
management system or LIMS (Know within ALS as “GEMS”; in continuous use since year 1999).

Figure 1. Global locations of ALS Minerals

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 2. Scope of Services
ALS Minerals (ALS), has prepared this Regional Proposal to provide the required services of
preparation and chemical analysis to Hanrine Ecuadorian Exploration Andmining operations; and
guarantee the success of the projects in terms of analytical specifications and major economical
profit to Hanrine Ecuadorian Exploration Andmining At the same time, it allows ALS Minerals to
exercise all the extension of its expertise and capabilities.

ALS will supply Hanrine Ecuadorian Exploration Andmining with sample preparation and analytical
services at the ALS 17025 accredited facilities. ALS will also supply the use of one of the world’s
best practice LIMS (known by ALS as GEMS), to provide access to the Hanrine Ecuadorian
Exploration Andmining management and technical staff with secure and real time remote access
to the laboratory data and quality performance via the ALS internet platform Webtrieve™. Hanrine
Ecuadorian Exploration Andmining can also be provided and visualized through CoreViewer on our
platform Webtrieve™.

3. Value Proposition
ALS has both a culture and reputation for getting the job done with signature Quality, Service
and Deliverables. As an integrated laboratory service provider, the entire ALS network will work
to serve the best interests of Hanrine Ecuadorian Exploration Andmining
Specifically for this regional proposal:
 ALS will perform processes to ensure uninterrupted sample handling and establish
contingency plans to ensure and improve Turnaround Times requested.
 ALS will use the best training, occupational safety and quality management systems to
ensure the highest standards of productivity, efficiency, safety and quality. ALS will work
to continuously improve processes, ensuring the best possible technical results.
 ALS will use the standard methodologies used in other commercial laboratories, ensuring
the same reliable and superior results.
 ALS will provide, under request, additional services such as mineralogy, physical analysis,
wet chemistry, inventory management, inspections (concentrates, products, casting and
sampling port), etc.
 ALS will provide to the management and technical staff of Hanrine Ecuadorian Exploration
Andmining, secure remote access to real-time laboratory data, including quality and
performance online information through Webtrieve™ service.

4. Staying in Touch
In case you would like to comment, suggest or complain, please do not hesitate contact us in our
regional office in Lima (+51 (1) 5745745, ALSPeru@ALSGlobal.com or
ClientServicesPeru@alsglobal.com

5. Quality Certification
The Quality is an integral part of all day-to-day activities at every ALS Minerals laboratory. Each
laboratory operates under a Quality Management System that has been developed from the ISO/IEC
17025:2005 – General Requirements for the competence of calibration and testing laboratories

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 Our analytical regional laboratory ALS Lima accredited with ISO 17025, by
“Standards Council of Canada”. Please ask for the scope of the accreditation.

6. Quality System
ALS Minerals believes that quality information is the most important requirement of our operations. The
role of Quality Systems is an integral part of the activities of everyday life, and involves our staff at all
levels, with constant monitoring the highest level of management. The Quality System is comprised of:

 ISO/IEC 17025:2005: Our analytical procedures have been audited and are accredited under ISO /
IEC 17025: 2005.
 Sample Preparation and Analytical Quality Control: Quality control in the process of sample
preparation and analytical, consider: measurement of the efficiency of crushing and pulverizing,
including Blanks Samples, Certified Reference Materials and duplicates not only during preparation
but also during the analytical stage. This information is available via Webtrieve™ for direct access,
or could be reported together with sample reports.
 Round Robin and Proficiency tests: instituted for the entire industry in which we participate and
receive the aptitude assessment.
 Independent Quality Control Team: Our quality control team is responsible for monitoring,
tracking and resolution all quality problems. This Team is reported out of operations management
with the clear goal to ensure quality to all our customers.
 Annual Audits: In addition to the external annual audits according the management and
accreditation systems, ALS audits internally each laboratory in South America, at least once a year
to review the conformity and consistency of our quality system.
 Quality Control Meetings: Annually ALS Minerals Board of Directors, review all aspects of the quality
system of the laboratory and improves constantly our quality policies.

7. Methods and Prices

Access your data
Price Per
Description Sample
(USD)
New functionality with improved navigation tools and client designated
WEBTRIEVE™ reports including sample flow, turnaround, sample types, method No charge
selection and summary quality control data.

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 Sam ples preparation
7.2.1 P repa rat ion P rotocols

Price per
Description Code sample (US$)
Soils. Logging sample simple in tracking system, weighing, dry and 1.23 plus
PREP-41
sieve sample to -180 micron (80 mesh). Retain both fractions. * 2.13/kg
Rocks. Logging sample into the tracking system, weighing, dry, crush
6.46 plus
70% <2mm, split off 250g approx. and pulverize split to better than PREP-31
0.64/kg
85% 75 microns.

7.2.2 Addit iona l/Opt iona l Ta sk

Price per
Description Code sample (US$)
Pulps. Log simple in tracking system, randomized QC test* and barcode
LOG-24 1.06
labeling.
Drying of excessively wet samples in drying ovens that are controlled
2.21 plus
to a maximum temperature of 60C. Applicable to most soil and DRY-22
0.47/kg
sediment samples that are analyzed for volatile elements.
Transfer sample to drying tray or new sample bag. Applicable to
TRA-21 1.06
samples requiring tray drying or re-bagging.
Per Sample Shipping Charge for Shipping Sample Pulps Between 3.00 (LI) /
SHP-21
Laboratories Lima and Vancouver. 4.00 (VA)

Analysis
Precious Metals Analysis
Range Price per
Analyte Description Code
(ppm) sample (USD)
Trace Level
Gold by fire assay and ICP finish.
Au 0.001-10 Au-ICP21 12.45
30g nominal sample weight
Gold by fire assay and gravimetric finish.
Au 0.05-10,000 Au-GRA21 15.57
Nominal Weight 30g
Ag 5-10,000 Silver by fire assay and gravimetric finish.
Ag-GRA21 18.83
Nominal Weight 30g

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 Trace Level Gold and other Elements by aqua regia – Soils and Sediments
Price Per
Analytes and Ranges (ppm) Code Sample (USD)
Au 0.001-1 Cs 0.05-500 Mo 0.05-500 Sr 0.2-500
Ag 0.01-100 Cu 0.2-500 Na 0.01%-10% Ta 0.01-500
Al 0.01%-25% Fe 0.01%-50% Nb 0.05-500 Te 0.01-500
As 0.1-500 Ga 0.05-500 Ni 0.2-500 Th 0.2-500
B 10-10,000 Ge 0.05-500 P 0.001%-1% Ti 0.005%-10%
Ba 10-10,000 Hf 0.02-500 Pb 0.2-500 Tl 0.02-500 AuME-TL43
Be 0.05-500 Hg 0.01-500 Rb 0.1-500 U 0.05-500 18.53
(25g Au )
Bi 0.01-500 In 0.005-500 Re 0.001-50 V 1-500
Ca 0.01%-25% K 0.01%-10% S 0.01%-10% W 0.05-500
Cd 0.01-500 La 0.2-500 Sb 0.05-500 Y 0.05-500
Ce 0.02–500 Li 0.1-500 Sc 0.1-500 Zn 2-500
Co 0.1-500 Mg 0.01%-25% Se 0.2-500 Zr 0.5-500
Cr 1-10,000 Mn 5–10,000 Sn 0.2-500
To include Hg (0.005-100 ppm), please request method ME-ICP61m
Although the four acid digestion is able to dissolve most minerals, it may sometimes be necessary to
use even stronger dissolution techniques such as fusion in order to get fully quantitative results.
However, in most cases this procedure quantitatively dissolves nearly all elements for the majority of
geological materials.

33 Elements by four acids, ICP-AES, Trace Level

Price Per
Analytes and Ranges (ppm) Code
Sample (USD)
Ag 0.5-100 Cr 1-10,000 Na 0.01%-10% Ti 0.01%-10%
Al 0.01%-50% Cu 1-10,000 Ni 1-10,000 Tl 10-10,000
As 5-10,000 Fe 0.01%-50% P 10-10,000 U 10-10,000 ME-ICP61 11.06
Ba 10-10,000 Ga 10-10,000 Pb 2-10,000 V 1-10,000
Be 0.5-1,000 K 0.01%-10% S 0.01%-10% W 10-10,000
Bi 2-10,000 La 10-10,000 Sb 5-10,000 Zn 2-10,000
Ca 0.01%-50% Mg 0.01%-50% Sc 1-10,000
Cd 0.5-1,000 Mn 5-100,000 Sr 1-10,000 ME-ICP61m 18.45
Co 1-10,000 Mo 1-10,000 Th 20-10,000
To include Hg (0.005-100 ppm), please request method ME-ICP61m
Although the four acid digestion is able to dissolve most minerals, it may sometimes be necessary to
use even stronger dissolution techniques such as fusion in order to get fully quantitative results.
However, in most cases this procedure quantitatively dissolves nearly all elements for the majority of
geological materials.

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 Evaluation of Ores & High Grade Materials with AAS finish
Price per
Range
Analyte Description Code sample
(%)
(US$)
ASY-4ACID 6.45
Ag 1-,500ppm Ag-AA62 3.68
As 0.01-30.0 As-AA62 3.68
Co 0.001-30 Co-AA62 3.68
Cu 0.001-50 Four Acid Digestion. Cu-AA62 3.68
Mo 0.001-10 Mo-AA62 3.68
Ni 0.001-50 Ni-AA62 3.68
Pb 0.001-30 Pb-AA62 3.68
Zn 0.001-30 Zn-AA62 3.68

Evaluation of Ores & High Grade Materials with ICP-AES finish

Price per
Range
Analyte Description Code sample
(%)
(US$)
ME-OG62 8.33
Ag 1-,500ppm Ag-OG62 1.80
As 0.001-30 AS-OG62 1.80
Co 0.001-30 Co-OG62 1.80
Cu 0.001-40 Four Acid Digestion. Cu-OG62 1.80
Mo 0.001-10 Mo-OG62 1.80
Ni 0.001-30 Ni-OG62 1.80
Pb 0.001-20 Pb-OG62 1.80
Zn 0.001-30 Zn-OG62 1.80

Administrative Charge
Description Code Price (US$)
Administrative fee applied per work order or batch conformed by less
BAT-01 29.45
than 10 samples.

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 ALS Lima - Perú, Hub Laboratory of SouthAmerica Region

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 8. ALS Technological Developments
CoreViewerTM
CoreViewerTM
Data Access

Service Description

Process core box photos into downhole strip for visualization in ALS CoreViewer™.
COREVIEWER™ One-time fee includes secure online Access to the photo archive and downhole data
linking tools in perpetuity. Multiple photos sets may be processed for one drill hole

Photo Digitalization and association with geochemistry results

Description Code

Digitization and availability of old, current and future drill hole’s photos. CVS-COR10

Association between CoreViewer™ and 3D Modeling Software

Description
Generation, operation and maintenance of the linkage between the
COREVIEWER™ +
applications to directly consult the photographs and the geochemical
LEAPFROG®, MICROMINE,
results through CoreViewer™, accessing directly from 3D modeling
VULCAN™, IOGAS
software.

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 TerraSpec®
TerraSpec®
Mineralogical Spectrum with TerraSpec in crushing samples
Price per
Services Description Code
sample (USD)
Spectral Scan using the TerraSpec® 4HR spectrometer.
Scanning Crushed reject or RC chips are recommended as the TRSPEC-20 4.05
optimal samples type.
Interpretation of Spectral Data
Rapid and accurate interpretation of hyperspectral 3.70
Interpretation scans by the aiSIRISTM expert software. 300 samples INTERP-11 300 samples
minimum. minimum

Split sample (rejects) using riffle splitter. For send out without 3.25 plus
SPL-21X
analysis or for TerraSpec analysis. 0.40/kg

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 9. Turn Around
Depending on the time of the year and work load at the lab, Turnaround time may vary. We will do
our biggest effort to have the results of assays available in 12 business days.

It is also possible to request “Rush Service”, which usually reports on half of the standard
Turnaround time offered. The service is priced 1.5 times the usual cost and is available in some
locations, times of the year and for particular methods. Please inform us in case this service is
required.

10. Payment Condition

Prices quoted are in US Dollars, taxes are not included. It is possible that the first services will be
on cash and depending of payment behavior we can approval a credit line of payment of 30 days
from invoice date.
This offer is open for acceptance within the next 60 days, for the same conditions indicated on
it.

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 11. Storage of Pulps and Reject Policy

Materials that have been submitted for analysis are stored at our laboratories for a limited time
only. The prepared master pulps are stored free of charge for 90 days from the time that we issue
the final certificate of analysis. Coarse and fine reject fractions are stored free of charge for 45
days. Monthly charges will be applied for sample storage when the free period has expired; in that
case the services and costs are indicated in the table below:

Description Application Code Price (US$)

Monthly storage of rejects after 45
Reject Storage STO-REJ 0.80/sample/month
days.
Monthly storage of pulps after 90 days. Pulp Storage >= 0.5 kg STO-BLK 0.80/sample/month
Monthly storage of pulps after 90 days. Pulp Storage STO-PUL 0.35/sample/month
Minimum charge for storage Storage samples ----- 20.00/month
Handling and retrieval of stored
Storage samples RET-21 63.20/h
samples.

Return of samples to your storage

Returns samples RTN-21 To be quoted
facility.
Disposal of pulps and coarse fractions From 0 to 100kg ----- No charge
in “Controlled Sanitary landfills” in
order to comply with environmental
protection laws. From 100kg or more DIS-21 80.00/Ton or Fract.

Please indicate on the Sample Submittal Form whether you would like us to store, return or dispose your
samples following the initial free storage period

Yours sincerely,

Arturo Ramírez S.
Marketing Executive, Geochemistry
Perú

T +51 1 574 5700

M +51 961 768 088

Arturo.RamirezS@alsglobal.com
Calle Uno Mz. D Lote 1A
Urb. Industrial Bocanegra, Callao

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 12. Statement on Accuracy and Pr ecision
Analysis of Geochemical Samples – Trace Level Concentrations
In the analysis of geochemical samples ALS expects to achieve a precision and accuracy of plus
or minus 10% (of the analyte concentration) + 2 Detection Limit (DL) for duplicate analyses, in-
house standards and client submitted standards, when conducting routine geochemical analyses.
These limits apply at, or greater than, fifty times the lower reporting limit. The mineralogy,
texture and heterogeneity of the analyzed geological materials can influence the precision and
accuracy that can be actually achieved.

Analysis of High Grade Samples – High Level Concentrations

In the analysis of high grade samples ALS expects to achieve a precision and accuracy of plus or
minus 5% (of the analyte concentration) + 2 DL for duplicate analyses, in-house standards and
client submitted standards. These limits apply at, or greater than, fifty times the lower reporting
limit. The mineralogy, texture and heterogeneity of the analyzed geological materials can
influence the precision and accuracy that can be actually achieved.

Client Quality Control and Reassays

ALS will investigate any queries regarding analytical results. When analysis fails to meet client
specifications, reanalysis will be conducted. If the new dataset fails to meet the specifications of
this Accuracy and Precision Statement, ALS will bear the full cost of re-analysis. If the new dataset
meets the specifications of this Accuracy and Precision Statement, then ALS will charge the full
cost of re-analysis.

ALS will be glad to discuss with clients any special accuracy and/or precision requirement. ALS
will meet a special accuracy and/or precision requirement whenever it is technically and
economically feasible. Such special requests often involve the selection of methods, use of
standard reference materials, and control limits in Shewhart charts. Clients are encouraged to
discuss any special request with ALS’s technical staff before submitting samples to the laboratory.

The analytical service provided is subject to detection limits, accuracy and precision inherent in
our current methods. Because each client is reliant upon analytical results for a particular purpose
and often in a unique geological or metallurgical context, it is the client’s responsibility to inform
him or herself fully as to ALS’s detection limits, accuracy and precision relevant to that particular
set of analytical results.

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 13. General Conditions of Service Provision

1. ALS Minerals will provide the services described in the accompanying tender, quotation, letter, fax or email, hereafter called
the “Agreement” to the client.
2. ALS Minerals will provide the services by exercising the same degree of skill, care and diligence that would be exercised by
professional service providers in similar circumstances.
3. The placement of an order for or receipt of samples for analysis based on this Agreement will constitute acceptance of
these Terms & Conditions by the client.
4. This Agreement is valid for 30 days from the issue date unless specifically indicated otherwise.
5. ALS Minerals reserves the right to review prices at any time if significant changes to our costs are incurred that are beyond
our control eg changes in legislative requirements or Client variations to sample numbers, analytes requested, turnaround
required, reporting requirements and such.
6. Payment terms are 30 days from the date of invoice, unless negotiated otherwise prior to the placement of an order or
submission of samples.
7. To the full extent permitted by law ALS Minerals excludes all warranties, terms, conditions or undertakings, (‘terms’)
whether expressed or implied, in relation to the services, the report, or its contents. Where any legislation implies any
terms in this Agreement that cannot be modified or excluded then such terms shall deem to be included. However, to the
full extent permitted by law, ALS Minerals liability to the Client is limited at ALS Minerals’s option to the re-performance of
the service or the refund of the service fee.
8. Without limiting the generality of clause 7, it is agreed that, to the full extent permitted by any applicable laws having
jurisdiction, ALS Minerals will not be liable to the Client or any other person for any special, indirect or consequential
damages arising from the Clients use of ALS Minerals’s services or reports.
9. The Client hereby releases and indemnifies and shall continue to release and indemnify ALS Minerals, its officers, employees
and agents from and against all actions, claims, proceedings or demands (including any costs and expenses in defending
or servicing same) which may be brought against it or them, in respect of any loss, death, injury, illness or damage to
persons or property, and whether direct or indirect and in respect of any breach of any industrial or intellec tual property
rights, howsoever arising out of the use of the services or report of ALS Minerals.
10. The Client acknowledges that it is the client’s sole responsibility to make its own assessment of the suitability for any
purpose of the service, report and its contents.
11. The service provided is subject to detection limits and confidence intervals inherent in our current methodology. Because
each client is reliant upon assay results for a particular purpose and often in a unique geological or metallurgical cont ext,
it is the client’s responsibility to inform him or herself fully as to ALS Minerals’s detection limits and confidence interva ls
relevant to that particular set of assay results.
12. The Client will give written notice of all known safety or health hazards and special procedures applicable to the safe
handling, testing, storage, transport and disposal of samples submitted. ALS Minerals may in its absolute discretion, refuse
to provide services where it determines the provision of such services may pose a health or safety hazard.
13. The Client acknowledges that during the performance of the services the samples or parts thereof may be altered, lost,
damaged or destroyed. ALS Minerals shall not be liable to the Client or any third party for any samples so altere d, lost,
damaged or destroyed.
14. Subject to the Clients approval, and if ALS Minerals considers it appropriate, then ALS Minerals may engage a third party
service provider. The Client shall not unreasonably withhold such approval.
15. ALS Minerals may suspend or terminate its obligations under this Agreement if (a) monies payable to ALS Minerals by the
client are outstanding 60 days or more (unless otherwise agreed), (b) other substantial breach by the client of their
obligations hereunder, which breach is not remedied within 30 days of written notice from ALS Minerals requiring the
breach to be remedied, (c) by giving the Client 60 days written notice of their intention to do so.
16. The Client may terminate its obligations under this Agreement in the event of a substantial breach by ALS Minerals in its
obligations hereunder, which breach has not been remedied within 30 days of written notice from the client requiring the
breach to be remedied.
17. ALS Minerals will retain client data for 3 years only from date of final report.
18. Unless otherwise agreed, sample disposal is the responsibility of the client. Samples may be collected within 90 days of
receiving the report. Uncollected samples may incur a storage or disposal charge.
19. For samples, pulps and rejects that are in storage at an ALS Minerals facility, warehouse, or at a third party storage facility
sub-contracted by ALS Minerals, the Client should obtain coverage for fire and theft. The responsibility of ALS Minerals for
client’s goods is strictly limited to exercising the reasonable care and diligence as required by statute.
20. Except as provided in clause 19 above, client’s goods are stored at the clients exclusive risk of loss, damage or delay in
delivery whatsoever, including, without limitation, loss, damage or delay caused through (a) any action or failure to act
beyond the reasonable control of ALS Minerals, (b) ordinary wear and tear in handling, (c) natural deterioration of packing
material over time, (d) theft, (e) sprinkler or other water damage, (f) fire.
21. ALS Minerals may assign or subcontract the storage and handling of pulps and rejects under this agreement without prior
written approval of the client, excluding transport.

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