Potential selected gold target area for follow up exploration within

Adola Gold Field

The Adola gold fields that remained to be the biggest gold producing area encompasses
a long linear helt stretching N-S for about 100kms and above distance and 45kms at its
widest section is located within South Oromia National Regional State (Geological map
of Adola area 1:1,000,000). The area was and still is the largest gold producing center
for the past several decades mined by arisinals using crude implement of hand panning
followed measuring progressively by semi mechanized mine. It was in the last 3-4
decades that a modern gold processing plant, the Legadembi was established
producing about 4-5 ton of gold a year.

Despite a large area coverage gold belt potential existence in the area, exploration for
gold in the area discovered the Lega dembi vein gold mineralization deposit within a
length of 3kms N-S divided in to three sectors: the Northern, central and southern,
leaving the rest areas still known for its sporadic alluvial and primary gold mine to by
artisanal.

In general the known gold mineralization potential targets geologically falls within three
tectono metamorphic terrains neamely: the Kenticha, Adola belt and Megado terrains.
The Megado terrain. stretching linearly to SSW, continuing south from Lega Dembi Gold
are marked by important alluvial and primary gold mineralization targets whose locality
is named after the nearby village are as follows:

Locality name:-

- Sakaro -Miesa
- Wollena - Ula Ulo
- Cheketa --Bore long known for its alluvial gold mine
- Megado -Werseti
- Hayadima -Miessa
- Kajimiti
 - The above gold occurrences and most gold mine centers by artisanal all lie within
not more that 40 kms distance at most south from Lega dembi are repeatedly
explored for primary gold sources and its alluvial gold reserve potentials by
artisanal in the past several years. The studied results reports are available in the
GSE library.

During mining acquisition of Lega dembi gold I presume the areas lying in close
proximity to lega dembi mine both to the north and south were secured for gold
mineralization exploration anticipating future additional gold deposit extension
findings so as to increase the life time of the mine. With this in mined the gold
potentials of Sakaro, wolena--etc some in the northern extension also were
subjected to follow up exploration by Lega dembi Gold.
The recent techno-economic study by SRK consulting within the license area of
YMG reaching small scale mining license acquisition are pocket rich deposit
within Kajimiti target. The detail explored centers as Burku, Kokobe (Duba) by
YMG contains rich quartz vein hosted gold mineralization and some more
centers reaching small scale mining.

YMG, selected Kajimiti target, for detail exploration and arrived at significant small scale
mineable gold. Even though the several spotted gold mineralization now detail explored
by YMG produced exciting results for its mineable gold reserve, it is imperative to
implement detail exploration study over the adjacent areas to bring the deposit to large
scale mining by increasing the ore reserve enough to be mined for the life time of over
10 yrs at the most.

Kajimiti target gold is a quartz vein hosted gold mineralization, the vein being
discontinuous reappearing detached from one another. The vein depth extension is also
small. These veins are exposed within thick weathered soil and some in talc graphitic
schist. Because of its topography comprised of intricately incised weathered surface
mimicking bad land topography added with the continued artisanal mining by pitting
surface exploration work undertakings are hazardous but not impossible. Further
exploration over the area has to b e designed carefully avoiding dangerous access
during trenching, HMS, and more exploratory drilling follow up implementation.

Recommendations

As the focus of this report relates to Kajimiti Gold target, and YMG’s explored license
area property. MIDROC geo recommends detail exploration study over the area taking
into account the following study approaches.

Compilation of past exploration data results from the available reports along with
YMG results for follow up exploration program preparation.
- Prepare detail exploration over areas adjacent. to YMG small scale mining
property to determine continuity of mineralization
- Involve YMG exploration team for detail exploration program plan as they
possess recent data results
- Continue follow up exploration of the rest areas listed above by giving priorities to
selected targets, based on the past data results.