I I,,!ill (I.] lsz.

D
rilAIADEn BOLD
INTERNAL MEMORANDUM

Date October 29, 2014 Ref.: PSM/14-349

To Abdullrahman AI-Nahdi
Director, NMD

Copy Hassen Moolla

Finance Controller
Saeed Ahmed Alsomali
Supervisor (A), Accounts Payable

From Procurement & Supply Management

Subject CONTRACTDISTRIBUTION

Enclosed please find contract copy of the "Laboratory Services for Metallurgical Testwork",
reference Contract No. MGBM-14-SZ7/1 with ALS Metallurgy PTY Ltd •.

For your records and necessary action.

Best regards,
CONTRACT

LABORATORY SERVICES FOR

METALLURGICAL TESTWORK

ALS METALLURGY PTY LTD.

Contract No.: MGBM-14-527/1
 LABORATORY SERVICES FOR METALLURGICAL TESTWORK
( Contract No. MGBM-14-527 11 )

CONTRACT

This CONTRACT is entered into this 6 Dhu-al-Oa'dah (H), corresponding to the 1s1 day of
September 2014 (G),
by and between

MA'ADEN GOLD & BASE METALS COMPANY, hereinafter called the "Employer" with its
offices at King Road Tower, King Abdulaziz Road, AI-Shatee District, P.O. Box 13784,
Jeddah 21414, Saudi Arabia,
and

ALS METALLURGY PTY LTD. Vv'ith correspondence address at 6 MacAdam Place, Balcatta
WA 602, Australia, Tel: +61893442416 Mobile: +61 419953813, Fax: +61893454688,
hereinafter called the ·Contractor", and

WHEREAS:

(1) The Employer is desirous that the services set forth hereinafter should be performed
for providing laboratory services for metallurgical testwork;
(2) The Contractor agrees to perform such services upon and subject to the terms and
conditions of this contract.

THEREFORE, the Employer and the Contractor hereby agree as follows:

1. The foUoVv'ing documents shall be deemed to form and be read as part of the Contract:

1.1 General Terms & Conditions (Annex A)

1.2 Scope of Work (Annex 8)
1.3 Compensation & Payment Terms (Annex C)
1.4 Ma'aden Suppliers Code of Conduct and Ethics (Annex D)

2. Words and expressions defined in any of the aforesaid documents shall have the same
meaning throughout this Contract

3. The Contractor hereby agrees with and undertakes to perform the work for the
Employer in compliance with the provlsion of this Contract.

4. The provisional total contract value amounts to AUD 2,000,000 (AUD Two Million)
only and the contract price shall be based on the rates stated in the Compensation &
Payment Terms (Annex C).

5. The term of performance of the Services shall be for a period of two (2) years
commencing on September 1.2014 until August 31, 2016.

6. All notices, authorizations and approvals pertaining to this Contract shall be in writing.
Except as otherVv'ise provided below, all notices between the parties shall be sufficient

lABORATORY SERVICES FOR METALLURGICAL TESTWORK ALS METALLURGY PrY LTD

CONTRACT NO. MGBM-14-527101 PAGE 20F24
 when delivered in person, or by certified or registered mail, email or sent by facsimile
with an original by mail, to the appropriate address as follows:

If to the Contractor: ALS Metallurgy Pty Ltd.

Hamid Sheriff, Chief Operating Officer
6 MacAdam Place, Balcatta WA 602, Australia
Tel: Tel: +61 89344 2416 Mobile: +61419953813
Fax: +61 893454688
Email: HamidSheriff<Hamid.Sheriff@alsglobal.com>

If to the Employer: Ma'aden Gold & Base Metals Co.

Salem A. AI-Shehri
Manager Procurement & Supply Mgmt.
23'd Roor, King's Road Tower, King Abdulaziz Road
P.O. Box 13784, Jeddah 21414, Saudi Arabia
Tel: +966 2229-2600 Fax: +966 2 229-2576/229-2577
Email: ShehriSA@jed.maaden.com.sa

The parties have executed this Contract in duplicate in English, intending each copy to
serve as an original.

APPROVED
MA' ADEN GOLD & BASE METALS CO.
(Employer)

Engr. Yahia M. AI·Shangiti

President, MGBM Co.

Date: 2 2/1(J/I Lf
lJ

Derek M Heatherly
CPA 1666837

LABORATORY SERVICES FOR METAlLURGICAL TESTWORK

CONTRACT NO MGBM-I4-527101
, is ""'LLURGY PTn"
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J •

ANNEX A - GENERAL TERMS & CONDITIONS

1. DEFINITIONS

Unless the context otherwise requires, the following expressions shall have the
meanings assigned to them:

1.1. Approved means approved in writing including subsequent written confirmation

of previous verbal approval.

1.2. Contract Documents mean the documents. contained within the following:

1.2.1. Contract
1.2.2. General Terms & Conditions (Annex A)
1.2.3. Scope of Work (Annex B)
1.2.4. Compensation & Payment Terms (Annex C)
1.2.5. Ma'aden Suppliers Code of Conduct and Ethics (Annex D)

1.3. Contract means the contract as signed by the Employer and the Contractor in
accordance with the contract documents.

1.4. Contractor means ALS Metallurgy pty Ltd., the person or persons, the firm or
company, whose bid has been accepted by the Employer and includes the
Contractor's personal representatives, successors and permitted assignees.

1.5. Contractor's Equipment means any equipment, machinery, sheds, materials,

tools, workshops, stores, consumables and all things provided by the
Contractor for the execution of the Work.

1.6. Contractor's Manpower means the personnel to be provided by the Contractor

for the execution of the Work.

1.7. Employer means Ma'aden Gold & Base Metals Co. and its legal successors in
title and permitted assigns.

1.8. Employer Representative means the person nominated by the Employer to be

responsible for the Contractor's compliance with this contract and the person to
whom all grievances, disputes and other contractual matters must be reported.

1.9. Sub-Contractor means any person, firm or company other than the Contractor,
to whom any part of the contract has been sub-let by the Contractor with the
approval of the Employer.

1.10. Words incorporating the singular shall include the plural and vice versa unless
the Contract otherwise requires.

1.11. Work means all the work and operations to be carried out by Contractor at a
designated location in accordance with the contract documents.

1.12. Writinq means any signed manuscript, typewritten or printed statement

including the products of data processing machines.
LABORATORY SERVICES FOR METAlLURGICAL TESTWORK ALS METALLURGY PrY LTD
CONTRACT NO, MGBM14-527i01 PAGE 4 OF24
 • I

2. INTERPRETATION

2.1. Goveming Law:

The Contract shall be governed by and construed according to the Laws and
Regulations of the Kingdom of Saudi Arabia.

2.2. Documents Mutually Explanatory:

Unless otherwise provided in the Contract, these Conditions of Contract shall

prevail over any other document forming part of the Contract.

The priority of the documents forming part of the Contract shall be as follows:

2.2.1. Contract
2.2.2. General Terms & Conditions (Annex A)
2.2.3. Scope of Work (Annex 8)
2.2.4. Compensation & Payment Terms (Annex C)
2.2.5. Ma'aden Suppliers Code of Conduct and Ethics (Annex D)

All documents above and all section therein shall be binding unless superseded
by official amendment to the Contract signed by the authorized representative
of both parties.

Subject to the foregoing, the documents
to be taken as mutually explanatory
ambiguities or discrepancies, the same
Employer who shall 'thereupon issue
thereon.
comprising the contract documents are
of one another but in the case of
shall be explained and adjusted by the
to the Contractor written instructions

3. WARRANTIES AS TO CAPACITY AND PERFORMANCE

3.1. Each Party warrants that it has the power to execute, deliver and perform its
obligations under the Contract and all necessary corporate and other action has
been taken to authorise that execution, delivery and performance.

3.2. The Contractor warrants it has the necessary permits, expertise, experience
and capability including sufficient and competent managers, supervisors,
technicians, labourers and other personnel who shall provide the laboratory
services for metallurgical testwork efficiently and expeditiously and to operate
their laboratory and facilities in accordance with the Contract.

3.3. The Contractor warrants and agrees that it shall perform the laboratory services
for metallurgical testwork in accordance with the Law and:

3.3.1. Promptly in a competent, proper and workmanlike manner;

3.3.2. Exercising all reasonable skill, diligence and care;
3.3.3. In full compliance with the Ma'aden Suppliers Code of Conduct and
Ethics attached as Annex D;
3.3.4. Comply with environmental regulations of the Authorities at its own cost
LABORATORY SERVICES FOR METAl.L~GICAL TESTWORK ALS METALLURGY PrY LTO.
CONTRACT NO. MGBM-14-527/01 PAGE 5 OF24
 and take any necessary remedial action as may be required by the
Authorities at its own cost;

4. CONTRACTOR'S RESPONSIBIUTIES

4.1. General Obligations:

The Contractor shall execute and carry out the work strictly in accordance with
the contract and contract documents and in accordance with accepted
international standards. The Contractor shall further execute and perform any
other work and perform any other activities which are not specifically provided
for in the contract documents but deemed necessary for the perfection,
execution, safety and completion of the work, or can reasonably be inferred
from the contract document.

4.2. Proposal of Change:

If at any time during the performance of the Contract the Contractor is of the
opinion that a change in the operation of the v.ork is necessary to correct any
anomaly which has occurred or could otherwise occur or would be beneficial
and cost saving to the Employer; then the Contractor shall submit to the
Employer a written proposal for such change, stating the Contractor's opinion.
The Employer is under no obligation to adopt any such proposal which may be
submitted by the Contractor.

4.3. Fossils and Artifacts:

All fossils, coins, artifacts and articles of value or antiquity and structures and
other remains of things of geological or archaeological interest discovered on or
around any site shall, as between the Employer and the Contractor, be deemed
to be the absolute property of the Employer. The Contractor shall take all
reasonable precautions to prevent his personnel or any other persons from
removing or damaging any such article or thing and shall immediately upon
discovery thereof, and before removal, advise the Employer Representative of
such discovery.

5. STATUTORY AND OTHER OBLIGATIONS

5.1. Law of Contract:

In the implementation of this Contract, the Contractor and his employees and
representatives shall at all times comply with all laws, decrees, decisions,
ordinances, statutes, regulations, rules, traditions and customs of Saudi Arabia,
or any political subdivision or public authority thereof, including, but not by way
of limitation, tax, tariff, labour, safety, security laws and regulations.

5.2. Festivals and Religious Customs:

The Contractor shall, in all dealings with his personnel, have due regard to all
holidays, recognized festivals and religious traditions or other customs in force
in the Kingdom of Saudi Arabia. The employment contracts signed with
individuals shall include a clause wherein they must respect and comply with
LABORATORY SERVICES FOR METAlLURGICAl TESTWORK ALS METALLURGY PlY LTD.
CONTRACT NO. MGBM-14-527/01 PAGE 6 OF24
 the religious, social and ethical traditions of the Kingdom of Saudi Arabia.

5.3. Conflict of Interest:

The Employer shall be entiUed to cancel the Contract and to recover from the
Contractor the amount of any loss resulting from such cancellation if the
Contractor has offered or given any gift or consideration of any kind as an
inducement or reward for doing or forbearing to do any action in relation to the
obtaining or execution of the Contract, or for showing or forbearing to show
favour or disfavour to any person in relation to Contractor undertaking any other
contract with the Employer, or if any such acts have been done by any persons
employed by him or acting on his behalf, whether with or without the knoVviedge
of the Contractor, or If In relation to his or any contract with the Employer, the
Contractor or any person employed by him or acting on his behalf shall have
committed any offense under the corruption acts or any similar legislation under
the laws of the Kingdom of Saudi Arabia.

5.4. Employment of Saudi Arabian Personnel:

The Contractor shall employ Saudi Arabian personnel where suitable

employees are available, in preference to those of other nationalities.

5.5. Entry Permits and Visas:

Contractor shall accept full responsibility for obtaining entry permits, work
permits, residence permits, and all visas for his foreign employees within the
limits of the laws of the Kingdom of Saudi Arabia.

Contractor shall not employ any person, other than a Saudi Arabian National, to
perform any part of the work in the Kingdom of Saudi Arabia, whether on a
temporary or permanent basis, unless such person holds a valid work permit
issued under the laws of the Kingdom of Saudi Arabia.

5.6. Customs:

In connection with the performance of this Contract, the Contractor shall

acknowledge that the Import and Customs laws and regulations of the Kingdom
of Saudi Arabia shall apply to the furnishing and shipments of any product or
components thereof to the Kingdom of Saudi Arabia, induding the banning or
imports and exports.

5.7. Taxes Duties and Social Insurance:

The Contractor shall be responsible for payment of all social security, Zakat
taxes, fees, penalties and/or levies imposed on companies and individuals by
any government authority in Saudi Arabia.

5.8. Saudi Arabian Goods and Services:

With respect to any materials, supplies, goods, equipment or services

purchased, leased, contracted for or otherwise obtained or required by the
Contractor in the performance of the services, the Contractor shall use his best
LABORATORY SERVICES FOR METAlLlRGlCAL TESTWORK ALS METALLURGY PTY LTD
CONTRACT NO. MGBM-I4-527101 PAGE 7 OF24
· .
,

endeavors to utilize materials, supplies, goods, equipment or services of Saudi

Arabian origin or any which may be obtained or acquired from entities
organized under the laws of the Kingdom of Saudi Arabia provided they satisfy
the requirements of the Contract.

The Contractor shall comply with the regulations of the Ministry of Commerce of
the Kingdom of Saudi Arabia relating to the importation of foreign goods
through Saudi Arabian owned companies.

6. ASSIGNMENT AND SUB·CONTRACTING

6.1. Assignments:

Neither the Employer nor the Contractor shall without the previous consent of
the other assign any benefit or obligation under the contract to any third party.

6.2. Sub-contract Procedure:

Without affecting the Contractor's responsibilities and liabilities for the Contract,
all sub-contracts entered into by the Contractor for the supply of materials,
services or equipment for the work or any part thereof shall be approved by the
Employer.

7. COMMENCEMENT TIME AND DELAYS

7.1. The Contractor shall commence the work on receipt of sample from the
Employer and shall proceed with the same with due expedition and without
delay except as may be expressly sanction or ordered by the Employer,

7.2. The Contractor shall achieve the requirements stipulated in the contract
documents and with the time limits specified therein.

7.3. If Contractor fails to complete the work and submit the results of the analysis
within period stipulated in Annex B - Clause 4 upon receipt of samples, then
the Contractor may forfeit to the Employer, at the Company's sale election, a
penalty equivalent to 2.5% of the total cost for the sample preparation and
analytical services per batch of samples. The penalty shall be applied for each
and every day of delay taken by Contractor to complete the work or negligence
for every batch of samples delivered. The penalty is subject to a maximum
penalty of ten percent (10%) of the total work order value and shall be paid by
the sole fact of delay. Further, Employer may cease delivery of samples for
analysis, at the Company's sale election, until such time the Contractor has
completed I submitted the required analytical report of the previous batch of
samples.

For the purpose of this clause, "Working days" are defined as days that do not
coincide with official holidays, recognized festivals and religious traditions or
other customary non-working days (Friday and Saturday) in force in the
Kingdom of Saudi Arabia.

LABORATORY SERVICES FOR METALLURGICAL TESTWORK ALS METALLURGY PrY LTD,

CONTRACT NO, MGBM-14-527iOl PAGE 80F24
 "

7.4. The Employer may without prejudice to any other method of recovery deduct
the amount of such penalty from any monies in its hands due or which may
become due to the Contractor under this Contract. or any other contract which
may exist between the Employer and the Contractor.

7.5. The payment or deduction of such penalty shall not relieve the Contractor from
his obligation to complete the contract or from any of his other obligations and
liabilities under the contract.

The Employer has the exclusive right to request the Contractor to stop the work
and operations at any time or times. if the Employer considers such stoppage is
necessary for the Employer's other operations and activltles, or for any reason
which the Employer may consider appropriate.

8. COMPLIANCE WITH THE CONTRACT

Contractor is at all times obliged to complete the works in accordance with the contract
irrespective of any dispute under the contract or otherwise. The procedures set out
under Clause 16 [Settlement of Disputes] hereunder are to be adhered to should any
dispute arise.

9. COMPLETION

Employer shall, as soon as the work is satisfactorily completed, issue within thirty [30]
days a certificate [hereinafter called the "Completion Certificate"] stating that the works
are completed as from the date thereof.

10. CONTRACTOR'S DEFAULT

10.1. Forfeiture:

If the Contractor assigns or sub-contracts the Contract without the consent in

writing of the Employer first being obtained, or if the Contractor abandoned the
contract; or without justification has failed to commence the work or has
suspended the work; or despite previous warnings by the Employer in writing, is
not executing the work in accordance with the Contract, or is neglecting to carry
out his obligations under the terms of the Contract so as to seriously affect the
carrying out of the work; then the Employer may, after the Employer has given
the Contractor fifteen (15) days' notice in writing. takes over the site and the
Contractor shall vacate there from without thereby voiding the Contract or
affecting the rights and powers conferred by the Contract on the Employer or
may himself complete the work or may employ any other Contractor to
complete the work without prejudice to any other remedy of the Employer.

10.2. Valuation of Date of Forfeiture:

Employer's shall, as soon as may be practicable after any such entry and
expulsion, fix and determine what amount, if any, had at the time of such entry
and expulsion been reasonably earned by or would reasonably accrue to the
Contractor in respect of work then actually done by the Contractor under the
Contract and the value of any materials on the Site.

LABORATORY SERVICES FOR MET A1.LrnGICAI. TESTWORK ALS METALLURGY PTY LTD.
CONTRACT NO. MGBM-14-527101 PAGE 9 OF24
 10.3. Payment After Forfeiture:

If the Employer takes over under Sub-Section 11.1 above, the Employer shall
not be liable to pay the Contractor any further amounts until the costs of
completion of the work have been ascertained. If such an amount shall exceed
the sum which could have been payable to the Contractor under the terms of
the Contract, the amount of such excess shall be deemed a debt due by the
Contractor to the Employer and shall be recoverable accordingly.

10.4. Bankruptcy:

If the Contractor shall become bankrupt or insolvent, or have a receiving or

recovering order made against him, or is compounded with his creditors, or
being a corporation in commencement to be wound up, not being a members'
voluntary winding up for the purpose of amalgamation or reconstruction, or
carry on his business under a receiver for the benefit of his creditors or any of
them, the Employer shall be at liberty to terminate the Contract forthwith by
notice in writing to the Contractor or to the receiver or liquidator or to any
person in whom the Contract may become vested.

10.5. Employer's Rights in Event of Termination:

If the Employer shall terminate the Contract under the provision of Sub-Clause
10.1 or 10.4 of this Clause, or by reason of the Contractor's default then in
addition to the responsibility of the Contractor to indemnify Employer under the
terms of the Contract for all damages suffered and to the Employer's other
remedies, the Employer may take possession of and have a lien on all
Contractor's equipment and all other things whatsoever belonging to the
Contractor which are upon the Site. Such lien shall endure until Employer has
received payment from the Contractor of such amounts as may have become
due. During the period of such lien Employer may use or permit others to use
all such things of Contractor for the purpose of completing the contract and
Employer shall not be liable to the Contractor for any fair wear and tear or
accidental damage that may occur to such things during the period of the lien.

11. TERMINATION BY EMPLOYER

11.1. Termination or Suspension by Employer

The Employer may terminate this Contract immediately at any time by one (1)
month prior notice in writing to the Contractor.

The Employer may at any time by notice in writing to the Contractor require the
Contractor to immediately suspend performance of the work under this
Contract. If the Employer has not required the Contractor to resume
performance of the VtKlrk within a period of 12 months from the date of such
notice, then either Party may thereafter forthwith terminate this Contract by
notice in writing issued during the period of suspension. Following a
suspension of the work, the Employer may at any time require the Contractor to
resume the performance of the work in accordance with this Contract.
LABORATORY SERVICES FOR METALLlRGlCAL TESTWORK ALS METALLURGY PrY LTD
CONTRACT NO. MGBM-14-527101 PAGE 100F24
 '.

11.2. Consequences of Termination or Suspension

Upon any termination of this Contract or suspension of the work under this
Contract the Contractor shall proceed in an orderly manner but with all
reasonable speed and economy to take such steps as are reasonable to
suspend or bring to an end (as appropriate) the work under this Contract. The
Contractor shall deliver to the Employer all samples prepared by the Contractor
or in the Contractor's possession relating to the work. The Employer shall pay
to the Contractor any sums due in respect of work performed up to the date of
termination or suspension (as the case may be) provided that where the
Contractor was In breach of this Contract at the date of any termination or
suspension, the Employer shall first be entitled to deduct a fair and reasonable
amount representing its losses as a result of such breach. As soon as
practicable after termination of this Contract or suspension of the Services
under this Contract, the Employer shall proceed to agree or determine the sum
payable pursuant to this sub-clause 11.2. If the Contractor disagrees with a
determination of the Employer, clause 15 shall apply.

11.3. Rights Not Prejudiced

The termination or expiry of this Contract shall not prejudice or affect any rights
or remedies of the Parties which have already accrued.

12. SUSPENSION OF WORK

The Contractor shall, on a written notice of the Employer suspend the progress of work
or any part thereof for such time or times and in such manner as the Employer may
consider necessary, and shall during such suspension properly protect and secure the
Works so far as is required by the Employer. The extra cost, including that occasioned
by the subsequent resumption of the Work, incurred by the Contractor in giving effect
to the Employer's instructions under this Clause shall be borne and paid for by
Employer unless such suspension is:

a) otherwise provided for in the Contract; or necessary by reason of some default

on the part of the Contractor or his Sub-Contractors; or
b) necessary by reason of normal climatic conditions on the Site; or
c) if it becomes necessary to suspend the operation at any given site or location,
the Employer shall notify the Contractor in writing at least 15 days in advance of
the suspension and no stand-by charge will accrue for such a suspension; or
d) necessary for the proper execution of the Work or for the safety of the Work or
of any part thereof insofar as such necessity does not arise from any act or
default by Employer.

Provided that the Contractor shall not be entitled to recover any extra cost unless
within twenty eight (28) days after receipt of the order to suspend progress of the Work
the Contractor gives to the Employer a notice in writing of his intention to make such
claim, and a written proof of any extra cost incurred, fully detailed and approved by the
Employer.

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CONTRACT NO. MGBM.14-527101 PAGE 11 OF24
13. VARIATIONS

13.1. Definition:

The term Variation in relation to the work means any alteration to the scope of
the work as accepted by the Employer, such alteration being an amendment,
deletion or addition and not merely a doser definition or change in detail or
change in the manner in which the Work is to be carried out.

13.2. Change Orders:

The Employer may give the Contractor a notice in writing (hereinafter called a
'Change Order') at any time, the Change Order shall be bound by the same
conditions, so far as is applicable, as if the Change Order were part of the
original Contract and the Contract shall be amended as may be necessary to
include the change in the work.

13.3. Notification of Effect of Change Orders:

If the Change Order is confirmed by the Employer, then the contract value and
contract period shall be amended to such extent as the Contractor and the
Employer may agree. In default of such agreement, value and any contract
period extension will be determined by the Employer.

13.4. Compliance with Contract:

The Contractor shall at all times obliged to complete the work in accordance
with the Contract irrespective of any dispute on the effect of Change Orders on
his obligations under the Contract or otherwise.

14. FORCE MAJEURE

14.1. Definition of Force Majeure:

Force Majeure shall comprise contingencies caused by neither of the parties

hereto and which are unforeseeable at the time of signing the Contract and are
beyond the control of either party, which render the continued performance of
contractual obligations impossible, including but not limited to:

a) Acts of God;
b) War or hostilities (whether declared or not):
c) Invasion, act of foreign enemies;
d) Riot, commotion, civil disorder or strikes (unless solely restricted to the
employees of the Contractor or of his Sub-Contractors and arising from
the conduct of the works);
e) Interference by govemment, civil or military authorities.

The mere shortage of labour, materials, spare parts, resources or utilities

shall not constitute Force Majeure unless caused by circumstances which
are in themselves Force Majeure.

LABORATORY SERVICES FOR METAlLURGICAL TESTWORK ALS METAUURGY FrY LTD.

CONTRACT NO. MGBM-14-527101 PAGE 120F24
 14.2. Notification of Delay by Force Majeure:

If either party to the Contract is prevented or delayed from or in performing any

of his obligations under the Contract by Force Majeure then he shall notify the
other party with supporting evidence of the circumstances constituting the
Force Majeure and the obligation, performance of which is thereby delayed or
prevented, and the party giving the notice shall thereupon be excused the
performance or punctual performance, as the case may be, of such obligation
due to such Force Majeure, for so long as the circumstances of prevention or
delay may continue.

14.3. Time Period for Notification:

Notification by either party under this provision of delay affecting the completion
of the Contract shall be made within seven (7) days of the commencement of
such circumstances.

14.4. Termination as a Result of Continuous Delay:

If performance of the INOrk is substantially prevented for a continuous period of

three (3) months by virtue of any event falling within the provisions of Sub-
Section 14.1 of this Section, then both parties shall meet to determine the
possibility of continuing the Contract. If such continuance is deemed
impossible, then either party may, by written notice to the other, terminate the
contract.

14.5. Removal of Contractor's Equipment on Termination:

If the Contract is terminated under the provisions of SUb-Section 14.4 of this

Section, the Contractor shall with all reasonable dispatch remove from the Site
all items that are the property of the Contractor and shall give similar facilities to
enable the Sub-Contractors to do Hkewise at no extra cost to the Employer.

14.6. Payment if Contract Terminated as a Result of Force Majeure:

If the Contract is terminated as a result of Force Majeure, the Contractor shall

be paid by the Employer (insofar as such amounts or items shall not have
already been covered by Interim Payments made to the Contractor) for all INOrk
executed prior to the date of termination.

14.7. No Indemnity:

Neither party to the Contract may claim for any costs or expenses against the
other for any event which gives rise to, or occurs, during the period of Force
Majeure.

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CONTRACT NO. MGBM-14-527101 PAGE 130F24
 15. SETTLEMENT OF DISPUTES

15.1. Disputes:
If any disputes or differences shall arise between the Contractor and the
Employer (....nether during the progress of the works or after their completion)
the Contractor shall report this dispute or difference together Vvith his opinion to
the Employer.

15.2. Amicable Settlement:

No question, dispute or difference arising between the Contractor and the
Employer under the Contract shall be referred for settlement unless an attempt
has first been made to settle the same amicably.

15.3. Referral to Competent Court:

Such dispute or disputes shall be referred to the Competent Court in Jeddah,
Saudi Arabia whose decision shall be final, decisive and absolute.

15.4. Costs of Settlement of Disputes:

All costs arising from the settlement of such dispute or disputes shall be borne
as decided by the Competent Court.

15.5. Services to Continue:

The reference to the Competent Court in Jeddah, Kingdom of Saudi Arabia may
proceed at any time whether during the progress of the work or after their
completion, provided always that the obligations of the Employer and the
Contractor shall not be altered by reason of such referral being conducted
during the progress of the works.

16. CHANGES IN COST

There shall be no adjustment to the Contract Price in respect of any rise or fall in the
cost of labour, materials, and other resources, or the value of the Saudi Riyal relative to
foreign currencies, or any other matters affecting the cost of the works, excepting
insofar as is provided for under the Contract.

17. NOTICES

17.1. All certificates, notices or witten orders to be given by Employer to the

Contractor under the terms of the Contract shall be served either sending by
post, or by delivering the same by hand, or facsimile to the Contractor's
principal place of business Vvithin the Kingdom of Saudi Arabia, or such other
address Vvithin the Kingdom as the Contractor shall nominate for this purpose.

17.2. All notices to be given to Employer under the terms of the Contract shall be
served by sending by post, or delivering the same by hand, or by facsimile Vvith
an original sent by mail to the respective address nominated for that purpose in
the Contract.

LABORATORY SERVICES FOR MET AlLLRGICAL TESTWORK ALS METALLURGY PTY LTD.
CONTRACT NO. MGBM-14-527/01 PAGE 14 OF24
 ANNEX B - SCOPE OF WORK

The Contractor undertakes to perform the work stated in this contract, quantitatively and
qualitatively within the prescribed time period that meets the Employer's goals. The
Contractor must provide all work requirements for the successful completion of the
contract.

The work shall cover all activities necessary to fulfill the task from the onset i.e. the
receipt of the samples at the designated point of delivery to the point of completion of
the testwork supported by all specified documentation.

The testwork needs to comply with the minimum requirements of a prefeasibility and/or
feasibility study.

The Employer will provide the selected core. The samples may consist of individual
samples or composites.

The Scope of Work for the metallurgical testwork includes, but is not limited to, the
following:

1. Sample Preparation/Head assays/Mineralogical Examination

1.1. Logging of samples.

1.2. Bulk density determination on wtlole core specimens.
1.3. Crushing & homogenisation of each meter of drill core.
1.4. Geochemical analysis of each meter of drill core, elements to be determined.
1.5. CN leaching - Bottle roll
1.6. Composite formation & preparation.
1.7. Comprehensive multi-element analysis on individual sample
and/Overall Composite including true mineral SG determination.
1.8. Mineralogical examination on individual sample and/or Overall Composite.
1.9. AMA examination for gold mineralisation and mineral association.
1.10. MLA / QEMSCAN liberation studies.
1.11. QEMSCAN analysis on gravity separation pair
1.12. Gold deportment microprobe analysis
1.13. Grind establishment testwork to determine parameters for milling of Overall
Composite
1.14. Metallurgical supervision and reporting.

2. Comminution

2.1. Sample preparation: crushing, homogenising and splitting

2.2. Bond impact crushing work index determination
2.3. Unconfined compressive strength determination
2.4. JK drop-weight AG/SAG mill amenability testwork
2.5. SAG mill comminution (SMC) testwork
2.6. Bond abrasion index determination
2.7. Bond rod mill work index determination
2.8. Bond ball mill work index determination
lABORATORY SERVICES FOR METAlLURGICAL TESTWORK ALS METALLURGY PrY LTD.
CONTRACT NO. MGBM-14-527101 PAGE 150F24
 2.9. Metallurgical supervision and reporting

3. Heap Leach amenability.

3.1. Sample preparation

3.2. Grind establishment testwork
3.3. Direct free milling cyanidation time leach testwork (base line)
3.4. Bottle roll cyanidation time leach testwork Leach duration. Duration to be
established.
3.5. Analyse leach products - elements to be determined by Ma'aden.
3.6. Percolation rate testwork.
3.7. Agglomeration / binder addition optimisation testwork.
3.B. Column cyanidation-Ieach testwork - As per Ma'aden instruction.
3.9. Analyse leach products.
3.10. Zinc cementation testwork :
3.11. Zinc dosage optimisation.
3.12. Contact time optimisation.
3.13. Analyse all test products.
3.14. Metallurgical supervision and reporting.

4. Gravity Separation.

4.1. Sample preparation

4.2. Grind establishment testwork
4.3. Gravity concentration on composites: Sequential three stage GRG testwork
as per Knelson method
4.4. Bulk sample gravity separation
4.5. Analyse gravity feed, concentrate and tailing - element selection as per Maaden
instruction.
4.6. Size by size gold & sulphur analysis on gravity feed, concentrate and tailing -
size fractions to be determined.
4.7. UFG / Grind establishment testwork on bulk gravity concentrate (includes
laser diffraction psd)
4.8. Direct cyanidation on bulk gravity concentrate: Extraction Vs grind size - Wait
for guidance from Ma'aden.
4.9. Direct cyanidation on bulk gravity tailing: Grind size as received
4.10. Whole of ore cyanidation time leach testwork
4.11. Leach duration : 48 hours
4.12. Time series sampling @ 2,4,8,12,24 & 48 hours
4.13. Analyse leach products - element selection as per Maaden instruction. - Wait
for guidance from Ma'aden.
4.14. Gravity separation/ILRlcyanidation time leach testwork : Extraction Vs grind size
4.15. Gravity separation/ILRlcyanidation time leach testwork : Influence of pre-aeration
4.16. Gravity separationllLRlcyanidation time leach testwork : Influence of oxygen
sparging
4.17. One test with oxygen, one test without
4.18. Oxygen demand/uptake rate determination
4.19. Gravity separation on individual Ore Type Composites: Knelson & ILR
4.20. Gravity separation/ILRlcyanidation time leach testwork & sequential CIP
carbon adsorption testwork
4.21. Gravity separation/ILRlcyanidation time leach testwork & equilibrium
LABORATORY SERVICES FOR METALLURGICAL TESTWORK ALS METALLURGY PrY LTD
CONTRACT NO. MGBM-14-527/01 PAGE 160F24
 carbon loading testwork
4.22. Metallurgical supervision and reporting

5. Free milling deposits.

5.1. Sample preparation.

5.2. Grind establishment testwork
5.3. Overall Composite
5.4. Individual ore samples
5.5. Head assays:
5.6. Comprehensive head assays for Overall Composite
5.7. Limited head assays for ore samples
5.B. Whole-of-ore cyanidation time leach testwork: Extraction Vs grind size.
5.9. Whole-of-ore cyanidation time leach testwork: Extraction Vs cyanide dosage.
5.10. Whole-of-ore cyanidation time leach testwork: Extraction Vs leach time
5.11. CIP Vs Cil testwork - Overall Composite
5.12. Botne roll leach test on whole ore from individual samples @
optimum conditions developed from Overall Composite:
5.13. leach duration : 48 hours
5.14. Time series sampling @ 2,4, B, 12,24 & 48 hours
5.15. Analyse leach products
5.16. Sequential multi-stage diagnostic gold analysis:
5.17. Rheology: Viscosity Vs pulp density - Overall Composite
5.18. Flocculation and thickener design seWing testwork - Overall Composite
5.19. Filtration testwork - Overall Composite
5.20. Whole-of-ore cyanidation time leach testwork : Influence of oxygen
sparging - Overall Composite
5.21. Oxygen demand/uptake rate determination - Overall Composite
5.22. Whole-of-ore cyanidation time leach testwork & sequential CIP carbon
adsorption testwork - Overall Composite
5.23. Whole-of-ore cyanidation time leach testwork & equilibrium carbon
loading testwork - Overall Composite
5.24. Cyanide detoxification testwork using S02/ air method - Overall Composite
5.25. Metallurgical supervision and reporting

6. Refractory ore deposits.

6.1. Sample preparation

6.2. Grind establishment testwork
6.3. Rougher/scavenger flotation: Grind optimisation -size fraction selection as
per Ma'aden instruction
6.4. Analyse concentrates and tailing -elements to be determined
6.5. Rougher/scavenger flotation: Reagent optimisation - number of reagent
schemes to be determined.
6.6. Cleaner flotation testwork.
6.7. locked cycle flotation testwork.
6.B. Number of cycles with rougher/scavenger and cleaner and assaying all
products - elements to be determined.

LABORATORY SERII1CES FOR METAlLURGICAL TESTWORK ALS METALLURGY PrY LTD

CONTRACT NO. MGBM-14-527/01 PAGE 17 OF24
 6.9. Analyse leach products.
6.10. Bulk flotation testing to generate concentrate for further processing.
6.11. UFG I Grind establishment testwork on bulk flotation concentrate (includes
laser diffraction psd)
6.12. Direct cyanidation on bulk flotation concentrate, Extraction Vs grind size. (P80)
6.13. Sulphide oxidation: Roasting or POX I cyanidation time leach testwork
conditions
6.14. Direct cyanidation time leach testwork on bulk flotation tailing
6.15. Cil cyanidation time leach testwork on bulk flotation tailing
6.16. Bulk cyanidation I sequential CIP carbon adsorption testwork on bulk flotation
concentrate
6.17. Bulk cyanidation I equilibrium carbon loading testwork on bulk flotation
concentrate
6.18. Bulk cyanidation I sequential CIP carbon adsorption testwork on bulk flotation
tailing
6.19. Bulk cyanidation I equilibrium carbon loading testwork on bulk flotation tailing
6.20. Flocculation and thickener design settling testwork on bulk flotation concentrate
6.21. Flocculation and thickener design settling testwork on bulk flotation tailing
6.22. Filtration testwork on bulk flotation tailing
6.23. Bacterial oxidation I cyanidation time leach testwork
6.24. Metallurgical supervision and reporting

7. General instructions

7.1. The Contractor shall provide a project schedule for each specific program.
7.2. Testwork results will be reported as they arise and issued as interim reports by
email.
7.3. A final testwork report will be issued on a project by project basis, in
consultaton with the Employer.

LABORATORY SERVICES FOR METAlLURGICAL TESTWORK ALS METALLURGY PTY LTD.

CONTRACT NO. MGBM-14-527101 PAGE 180F24
 ANNEX C - COMPENSATION & PAYMENT TERMS

1. CONTRACT PRICE

1.1 The provisional total contract value amounts to AUD 2,000.000.00 (AUD Two
Million) only.

1.2 As full and complete compensation for the Contractors satisfactory

performance of the work described in Annex B (Scope of Work) and all other
obligations under this Contract, the Employer shall pay the Contractor based
on the actual quantities satisfactorily performed and approved, multiplied by
the appropriate unit rate indicated in the attached Schedule of Unit Rate
(Attachment No.1).

1.3 Both parties agree that the interpretation of rates as expressed in the
"Schedule of Unit Rates" is firm, fixed and without any escalation during the
term of the contract.

1.4 The unit rates/prices are exclusive of all taxes and duties payable in Saudi
Arabia and if required, the amount shall be paid by the Contractor.

2. INVOICING and PAYMENT

2.1 The Employer will pay the Contractor based on actual test performed and
billed on monthly basis.

2.2 All sums that become due under this Contract, shall be paid by the Employer
after submission of an itemized invoice, in duplicate to:

Ma'aden Gold & Base Metals Company

King Road Tower, King Abdulaziz Road, AI Shatee District
P. O. Box 13784, Jeddah, 21414. Saudi Arabia
Accounts Payable Supervisor
Finance Control Department
Attn : Saeed Ahmed AI Somali
Email: alsomalisa@jed.maaden.com.sa
Phone : +966 12 2292599 Fax: +966 12 2292576 / 2292577

Original Invoice shall be submitted by courier as per above delivery address.

The envelope shall be marked "Invoice Enclosed". Each invoice shall

reference this Contract number and shall clearly indicate the name and
address to which remittance is to be mailed. Each invoice shall be itemized
and show a separate line item for expenses, as applicable. Invoices shall be
submitted after acceptance of completed work and each duplicate invoice
shall be accompanied by supporting documents. Contractor shall identify the
final invoice submitted under this Contract by marking "Final Invoice"
prominently on the face of the invoice.

LABORATORY SERVICES FOR METALLURGICAL TESTWORK ALS METALLURGY PrY LTO.

CONTRACT NO. MGBM-14-527/01 PAGE 190F24
 2.3 Should the Employer object to any item contained in any invoice, or to the
sufficiency of the documents submitted in support of any such item, the
Employer shall be entitled to v.;thhold payment for the amount attributable to
the item or substantiating documents to which the Employer objects. Should
such payment be v.;thheld, the Employer shall notify the Contractor in writing
of its objection, and the Employer shall pay the Contractor that portion of the
invoice amount which is properly due and payable.

2.4 Payment of any invoice by the Employer shall not prejudice the Employer's
rig ht to object or question any invoice, or any matter in relation thereto, at any
time up to two (2) years after completion of the services to which the invoice
pertains. No payment by the Employer shall be construed as acceptance of
any part of the services to be performed hereunder.

2.5 The Contractor shall submit an application for an Interim Payment on monthly
basis to the Employer Finance Department on the first WI) day of each month
or at times to be agreed v.;th the Employer. Each application shall be serially
numbered and shall detail the sample preparation and chemical analysis
performed.

2.6 Follov.;ng approval of the Interim Payment Certificate by the Employer, the
Employer shall pay the amount of every sum so certified v.;thin thirty (30)
days.

LABORATORY SERVICES FOR METALLURGICAL TESTWORK ALS METALLURGY PrY LTD.

CONTRACT NO. MGBM-14-527/01 PAGE 20 OF24
 ANNEX D • MA' ADEN SUPPLIERS CODE OF CONDUCT AND ETHICS

INTRODUCTION

This Ma'aden's Suppliers Code of Conduct and Ethics (the Code) applies to all providers of
goods / services / work to Ma'aden, its subsidiaries and affiliates (Ma'aden).

1. LEGAL COMPLIANCE:

Ma'aden's Suppliers (Suppliers) are obligated, in all of their business related activities, to
comply with the applicable laws, rules and regulations in Saudi Arabia. Ma'aden's
Suppliers will not seek competitive advantages through illegal or unethical business
methods.

2. RESPECT BASIC HUMAN RIGHTS OF ITS EMPLOYEES

Supplier must uphold the human rights of its employees, treat them with dignity and
respect and promote equal opportunities for and treatment of its employees. Basic
Human Rights would cover:

A. Discrimination

Within the framework of Saudi Arabian Law, providers of goods and/or services
(Suppliers) shall not discriminate against any worker based on race. color, age,
gender, sexual orientation, ethnicity, disability, religion. political affiliation, union
membership, national origin. or marital status in hiring and employment practices
such as applications for employment, promotions, rewards, access to training, job
assignments, wages. benefits, discipline, and termination.

B. Harassment

Suppliers should know that insulting, harassing or offensive conduct is

unacceptable. whether verbal, physical or visual. Examples include derogatory
comments based on racial or ethnic characteristics, sexual harassment, sexual
abuse, corporal punishment, mental coercion, physical coercion, religious beliefs or
deprecating remarks concerning a person's disability. Threats or acts of violence or
physical intimidation are prohibited, as is retaliatory treatment in response to any
complaint of harassment made in good faith.

C. Minimum Wages

Suppliers must compensate their workers in line with all applicable local wage laws
and regulations. including those relating to minimum wages, if any. overtime hours
and legally mandated benefits. Any disciplinary wage deductions are to conform to
local law.

D. Prohibition of Child Labour

Suppliers should not employ workers under the age of 15.

LABORATORY SERVICES FOR METAlLURGICAL TESTWORK ALS METALLURGY PlY LTD.

CONTRACT NO. MGBM-14-527101 PAGE 21 OF24
3. SUBCONTRACTING

Ma'aden Suppliers shall not use subcontractors without making all commercially
reasonable efforts to obtain Ma'aden's prior written consent and shall require the
subcontractor to enter into a written commitment with the Supplier to comply with the
Code. Ma'aden Suppliers must ensure that any subcontractor that may be used has
ethical and business practices similar to Ma'aden's practices.

4. HEALTH, SAFETY, AND THE ENVIRONMENT

A. Health and Safety at Workplace

Suppliers must insure that they have a safe and healthy working environment to
include appropriate controls, safe procedures, preventative maintenance and
appropriate protective equipment in compliance with all applicable laws and
regUlations. This is especially important when dealing with hazardous materials.
Suppliers should ensure that their employees are educated in health and safety
issues and to set-up or use an occupational health and safety management system
according to OHSAS 18001 or equivalent

B. Protection of the Environment

Ma'aden expects that its Suppliers will act in an environmentally responsible manner.
As a minimum, this means Suppliers shall be in compliance with applicable local and
international environmental laws and regulations, and be committed and have the
ability to remediate any environmental problems they may cause. All waste materials
and production by-products should be disposed of properly and in an environmentally
responsible manner. Violation of the foregoing may result in cancellation by Ma'aden
of any purchase orders, contracts or supply agreements without any liability to
Ma'aden or its affiliates and subSidiaries.

C. Air Emissions

Air emissions of volatile organic chemicals, aerosols, corrosives, particulates, ozone

depleting chemicals and combustion by-products and the like generated from all
aspects of supply operations are to be characterized, monitored, controlled and
treated as required prior to discharge.

5. ETHICS

Suppliers are to uphold the highest standards of ethics including:

(1) The highest standards of integrity are to be expected in all business interactions.
Participants shall prohibit any and all forms of corruption, extortion and
embezzlement. Monitoring and enforcement procedures shall be implemented to
ensure conformance.

(2) Bribes or other means of obtaining undue or improper advantage are not to be
offered or accepted. No Supplier, or its representatives or employees, shall offer to
any Ma'aden employee a kickback, favor, gratuity, entertainment or anything of
lABORATORY SERVICES FOR METALLURGICAL TESTWORK ALS METALLURGY PrY LTD
CONTRACT NO. MGBM-14-527~1 PAGE 220F24
 value to obtain favorable treatment from Ma'aden. Ma'aden employees are similarly
prohibited from soliciting or offering such items. This prohibition extends to first
degree relatives (l.e. Father, Mother, Spouse and Children) of both Suppliers and
Ma'aden employees. As long as a gift is not intended to obtain favorable treatment
for the Suppliers and does not create the appearance of a bribe, kickback, payoff or
irregular type of payment, Ma'aden employees are not prohibited from accepting the
gift if it is SR 500 per year or less in value provided the name of the donor is clearly
reflected on the item and the item is designed for use in the employee's office.
(These gifts shall not include normal discounts or special treatment for aU Ma'aden
employees, such as hotel, air tickets and car rental discounts.).

(3) Information regarding Ma'aden business activities, structure, financial situation and
performance and/or any other information deemed confidential is not to be
disclosed outside the normal course of business.

(4) Intellectual property rights are to be respected; transfer of technology and know-
how is to be done in a manner that protects intellectual property rights. Ma'aden's
logos, marks and strap lines shall not be used by the Supplier without Ma'aden's
written approval.

(5) Standards of fair business, advertising and competition are to be upheld.

Appropriate means to safeguard customer information must be available. Ma'aden's
Suppliers shall not engage in collusive bidding, price fixing, price discrimination, or
other unfair trade practices in violation of antitrust laws and regulations.

6. COMMUNICATION

Ma'aden Suppliers must communicate this Code and its provisions to their engaging
employees and to their subcontractors used in supplies intended for Ma'aden.

7. MONITORING AND RECORD KEEPING

Suppliers must maintain necessary documentation to demonstrate their compliance with

this Code of Conduct for Suppliers. Ma'aden and/or its affiliates and subsidiaries
maintain the right to take certain actions, such as inspection of production facilities or
review of the applicable documentation, to ensure compliance with the Code.

Ma'aden Suppliers are expected to take necessary corrective actions to promptly

remedy any identified noncompliance. Ma'aden reserves the right to terminate its
business relationship with any Ma'aden Supplier who is unwilling or unable to comply
with the Code.

8. SAFEGUARDING GOOD FAITH REPORTS

In order to encourage persons to report any violations to Ma'aden, where persons find it
difficult to make any reports by telephone or in person, reports of violations may be
submitted anonymously.

LABORATORY SERVICES FOR METALLURGICAL TESTWORK ALS METALLURGY PrY LTD.

CONTRACT NO. MGBM-14-527101 PAGE 23 OF24
.1

9. SUPPLIER ACKNOWLEDGEMENT

The undersigned Supplier hereby acknowledges that it has received Ma'aden's

Suppliers Code of Conduct (the "Code") and agrees that any and all of its facilities,
subsidiaries, divisions, affiliates, operating entities and subcontractors doing business
with Ma'aden and/or any of its subsidiaries, divisions, operating entities will receive the
Code intact, inclusive of the paragraph above referring to good faith reports, and will
abide by each and every term therein.

Name:
Title:

Company:

Signature:

Date:

Derek M Heatherly
CPA 1666837

IlIBORATORY SERVICES FOR METALLURGICAL TESTWORK AlS METALLURGY PTY LTD

CONTRACT NO MGBM-14-527'{)1 PAGE 24 OF24
SN
Testwork litem Description ,
Characterisation
Testwork Items
1 Logging of samples: Cost per meter of drill core - 1 Okg per meter
Bulk density determination on whole core specimens: Assume 20 samples per ore type to be
2
tested
3 Crushing & homogenisation of each meter of drill core
Geochemical analysis of each meter of drill core: Au, Ag, As, Hg, SSUlPHIOE, - CN leaching
4
Bottle roll
5 Composite formation & preparation: Generate 4 x Overall Composite - 100-150kg
Comprehensive multi-element analysis on Overall Composite including true mineral SG
6
determination
7 Mineralogical examination on Overall Composite
8 - AMA examination for gold mineralisation and mineral association
9 - MLA I OEMScan liberation studies on 3 x sized fractions
10 - OEMSCAN analysis on gravity separtion pair
11 - Gold deportment microprobe analysis
12 Grind establishment testwork to determine parameters for milling of Overall Composite
13 Metallurgical supervision and reporting (7.5% for all sections I all services)

Miscellaneous Costs
14 Sample clearance from customs and quarantine: Cost per shipment
15 Local courier charges
16 Sample storage: Ambient temperature - Cost per pallet per month
17 Testwork Items
18 Sample preparation: crushing, homogenising and splitting
19 Bond impact crushing work index determination
20 Unconfined compressive strength determination
21 JK drop-weight AG/SAG mill amenability testwork
22 SAG mill comminution (SMC) testwork
23 Bond abrasion index determination
24 Bond rod mill work index determination
25 Bond ball mill work index determination
26 Metallurgical supervision and reporting (7.5% for all sections I all services)

Testwork Items
27 Sample preparation: 100-150kg sample
28 Grind establishment testwork
Gravity concentration on composites: Sequential three stage GRG testwork as per Knelson
29
method
30 Bulk sample gravity separation: 50 kg bulk sample
31 - Analyse gravity feed, concentrate and tailing: Au, Ag, As, S
- Size by size gold & SUlphur analysis on gravity feed, concentrate and tailing - Assume 8 x
32
sized fractions
33 - UFG / Grind establishment testwork on bulk gravity concentrate (includes laser diffraction psd)
- Direct cyanidation on bulk gravity concentrate: Extraction Vs grind size - As received & 3 x
34
UFG P80's
35 - Direct cyanidation on bulk gravity tailing: Grind size as received
36 Whole of ore cyanidation time leach testwork
37 - Leach duration: 48 hours
38 - Time series sampling @ 2,4,8,12,24 & 48 hours
 Testwork litem Description
SN
Characterisation
39 - Analyse leach products: Au, Ag

40 Gravity separationlllR/cyanidation time leach testwork : Extraction Vs grind size - 3 x P80's

41 Gravity separation/llR/cyanidation time leach testwork : Influence of pre-aeration

42 Gravity separation/llR/cyanidation time leach testwork : Influence of oxygen sparging
43 - One test with oxygen, one test without
44 Oxygen demand/uptake rate determination

45 Gravity separation on individual Ore Type Composites: 1-3kg per feed sample, Knelson & ILR

Gravity separation/llRlcyanidation time leach testwork & sequential CIP carbon adsorption
46
testwork
47 Gravity separationlllR/cyanidation time leach testwork & equilibrium carbon loading testwork

48 Metallurgical supervision and reporting (7.5% for all sections / all services)

Testwork Items
49 Sample preparation: 100-150kg Overall Composite
50 Sample preparation: 50-1 OOkg ore samples (x 3)
51 Grind establishment testwork
52 - Overall Composite
53 - Individual ore samples
54 Head assays:
55 - Comprehensive head assays for Overall Composite
56 - Limited head assays for ore samples (Au, Ag, As, S)

57 Whole-of-ore cyanidation time leach testwork : Extraction Vs grind size - Evaluate 3 x P80 sizes

58 (TBA) - Overall Composite

59 Whole-of-ore cyanidation time leach testwork : Extraction Vs cyanide dosage - Evaluate 3 x

60 dosage levels - Overall Composite

61 Whole-of-ore cyanidation time leach testwork : Extraction Vs leach time - Evaluate 3 x leach

62 contact times - Overall Composite

63 CIP Vs Cil testwork - Overall Composite
Bottle roll leach test on whole ore from individual samples @ optimum conditions developed
64
from
65 Overall Composite:
66 - leach duration: 48 hours
67 - Time series sampling @ 2, 4, 8, 12, 24 & 48 hours
68 - Analyse leach products: Au, Ag
69 Sequential multi-stage diagnostic gold analysis:
70 Rheology : Viscosity Vs pulp density - 3 x Pulp densities - Overall Composite
71 Flocculation and thickener design settling testwork - Overall Composite
72 Filtration testwork - Overall Composite
Whole-of-ore cyanidation time leach testwork : Influence of oxygen sparging - Overall
73
Composite
74 Oxygen demand/uptake rate determination - Overall Composite
Whole-of-ore cyanidation time leach testwork & sequential CIP carbon adsorption testwork -
75
Overall Composite
Whole-of-ore cyanidation time leach testwork & equilibrium carbon loading testwork - Overall
76
Composite
77 Cyanide detoxification testwork using S02 I air method - Overall Composite
 Testwork litem Description
SN
Characterisation
78 Metallurgical supervision and reporting (7.5% for all sections / all services)

Testwork Items
79 Sample preparation: 150-200kg sample
80 Grind establishment testwork
81 Rougher/scavenger flotation: Grind optimisation - Evaluated 4 x P80's
82 - Analyse 4 concentrates and tailing for Au, As, S
83 Rougher/scavenger flotation: Reagent optimisation - Evaluated 10 x reagent schemes
84 Cleaner flotation testwork
85 locked cycle flotation testwork :
86 - 6 cycles with rougher/scavenger and cleaner. Assay all products for Au, As, S
87 - Analyse leach products: Au, Ag
88 Bulk flotation testing to generate concentrate for further processing: 90kg feed

89 UFG / Grind establishment testwork on bulk flotation concentrate (includes laser diffraction psd)

90 Direct cyanidation on bulk flotation concentrate: Extraction Vs grind size - 3 x UFG P80's

91 Sulphide oxidation: Roasting (or POX) / cyanidation time leach testwork - 3 x roast conditions

92 Direct cyanidation time leach testwork on bulk flotation tailing

93 Cil cyanidation time leach testwork on bulk flotation tailing

94 Bulk cyanidation / sequential CIP carbon adsorption testwork on bulk flotation concentrate

95 Bulk cyanidation I equilibrium carbon loading testwork on bulk flotation concentrate

96 Bulk cyanidation I sequential CIP carbon adsorption testwork on bulk flotation tailing
97 Bulk cyanidation I equilibrium carbon loading testwork on bulk flotation tailing
98 Flocculation and thickener design settling testwork on bulk flotation concentrate
99 Flocculation and thickener design settling testwork on bulk flotation tailing
100 Filtration testwork on bulk flotation tailing
101 Bacterial oxidation / cyanidation time leach testwork
102 Metallurgical supervision and reporting (7.5% for all sections / all services)

Testwork Items
103 Sample preparation: 200kg sample
104 Grind establishment testwork
105 Direct free milling cyanidation time leach testwork (base line)
Bottle roll cyanidation time leach testwork : Extraction Vs crush siza- 3 x crush sizes to be
106
evaluated
107 - leach duration: 120 hours. Analyse leach products for Au & Ag
108 Percolation rate testwork : As crushed are without binder addition
109 Agglomeration / binder addition optimisation testwork • 5 x dosage levels to be evaluated
110 Column cyanidation leach testwork : 60 days duration
111 - Analyse leach products: Au, Ag
112 Zinc cementation testwork :
113 • Zinc dosage optimisation· 5 x dosage levels
114 • Contact time optimisation - 3 x tests
115 - Analyse all test products : Au, Ag
116 Metallurgical supervision and reporting (7.5% for all sections / all services)
'I

ATTENTION: Metallurgy Managers DATE: 22 Sept 2014

CC: Ron Grogan REFERENCE NO:
FROM: Hamid Sheriff

SUBJECT: Authorities and Delegations Matrix - Global Metallurgy

Please find attached an updated Authorities and Delegations Matrix designed to streamline the
business process and avoid confusion regarding approval authorities. The matrix has been
constructed with 'operational business processes' in mind. Inclusion or exclusion from the matrix in
no way defines hierarchical position within the company organisational structure.

The matrix has been constructed in good faith. Expenses/Contracts/ Delegations should not be
split in an effort to avoid approval or senior level review.

Capital approval authorities may be delegated downward up to the maximum value assigned of the
senior officer, however the responsibility for delegation will always reside with the senior officer.

The table below serves to classify positlons by title and responsibility. Authority at a level above
level A reverts to the Group General Manager - Global Minerals Group.

DiVision
A B C D
Metallurgy General Manager - Regional VP North Iron Ore Centre General Senior Management
Global Metallurgy, America Manager (NB: Ranges Apply).
COO - Global
Metallurgy Adelaide, Burnie,
Managers

The bullets below are relevant to the attached table.

• All limits are provided in AUD.

• A blank in space in the table below designates no automatic authority.
• Currencies - AUD in Australia; USD elsewhere.
• Group General Manager (Minerals) acts as default approval where Level A not designated.

Brian Williams
Group General Manager
Global Minerals Group

Derek M Heath rly

CPA 1666837

ADDRESS Level 2, 299 Coronation Drive Milton QLD 4064 Australia PHONE +61 733677900 f ~ +61 7 33678156
AUSTRALIAN LABORATORY SERVICES PTY l TO ABN B4 009 936 029 Part of the ALS Laboratory Group A Campbell Brothers Limited Company

www.alsglobal.com
AIOHT SDLUTIDns AIOHT PARTnER
 , .
Item
-=
I- -,;:- I B =r_
Delegation Level
C
-- L 0 I ----
Customer Tenders/Quotations/Contracts

All contract T&C must be reviewed by ALS In-House Legal Counsel prior to signing. All contracts that contain uncapped lIabllllies require risk
assessment (Compliance Group) and sign off by Category B or above manager. Category B or C manager must be consulted on all
tenders/quotations for services to be performed outside of home continent/designated region.
- -
Approval to submit bid.
("Submission above designated I 52,SOOk pa (Notify
Group GM prlorto
52.000k pa (Notify
Category A Manager S 1.000k pa with 51,OOOk pa with
1
level, or bids regarded as prior to submitting consultation with consultation with
submitting over
strategic require consultation over S 1,000 k Level A Level A
52,OOOk aggregate)
with Level A) aggregate)
I I

Derek M Heath rly

CPA 1666837

ItODR£SS lev.1 2 2g9 Coronation Drive Mil1Qn Q\.O 1064 Awnrall. co '11 1"61 7 )367 7'00 .,.6113367 rUS6
Ali'TA \II~N I \IOR.-\TOR\ \IK\ICr\ rn (10 \IN I. 009 916 029 ,.,1 oflhe ALS Llbo,&toryGroup "ClmpbtUIIOlhefl Urnlled Company

www.alsglobdl.conl
"'CHT SDLUTIDns AIC"T PAnTnl:'"n
 OBSERVATIONS

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AUSTRALIA
PASSPORT DOCUMENT No
ToT· -
p E4020128
,~,.nt:l~
SHERIFF
HAMID
AUSTRALIAN
OS MAY 1964
M MASHAD
07 MAY 2009
DI'k cl "cpr, I 0,,:. ".ftW'.J.~un
07 MAY 2019
Derek M Hea erly
I\u&:tonl, ' '\u'CYVi
AUSTRALIA CPA 1666837

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