Gold

Castle Peak Mining Ltd.- Early Stage Gold Project on the Ashanti Belt, Ghana

Overview

Castle Peak Mining Ltd. (TSXV: CAP) is a Canadian-based exploration and development company focused on advancing greenfields and early stage gold projects. The Company holds a strategic land package, known as the Akorade project, in the southern portion of the Ashanti belt, in Ghana, West Africa. The Ashanti belt is known as one of the most prolific gold belts in the world, putting Ghana as the second largest gold producer in Africa with past production of >150 million ounces. Within 50 kilometres of Castle Peak’s Akorade Project there are five producing gold projects which account for more than 50 million ounces in gold reserves and resources.

The Company has conducted a limited phase I drill program at Akorade, and posted results including 6.0m of 80 g/t Au (including 1.6m of 296 g/t Au), 10.0m of 6.7 g/t Au, and 9.8m of 6.8 g/t Au at its Apankrah Target. The Company is now conducting a follow up drill program in an effort to further define a significant high grade discovery at Apankrah, which could serve as an anchor point for resource growth given its close proximity to several low grade producers.

Investment Highlights

• Management team with positive relationships and respected track records
• Located in politically stable, mining friendly jurisdiction
• ~225 sq. km covering two key structural trends for gold deposits in the Southern Ashanti belt
• Quality systematic exploration program
• Encouraging Phase I results similar to neighbouring deposits & prospects hosting 50 million ounces in gold reserves and resources

Key Projects

Akorade Project

Castle Peak Mining’s Akorade project is located in southwest Ghana, in the southern portion of the Ashanti gold belt, encompassing approximately ~225 square kilometres. The area currently hosts five gold producing projects and accounts for more than 50 million ounces in gold reserves and resources within 50 kilometres. There is an established mining infrastructure due to the proximity of the multi-million ounce producers and all nine concessions are on the national power grid.

Exploration Program

Castle Peak Mining’s exploration program is currently being carried out on two fronts: a drill evaluation program split between initial target testing (Phase 1) and high potential follow up drilling (Phase 2); and regional exploration which includes mapping, prospecting, line cutting, soil sampling, trenching and geophysical surveys within key structural corridors.

Drill Evaluation

In 2011, Castle Peak Mining completed the first ever drill program on the Akorade Project. The ~6,900m (35 hole) drill campaign started in late April 2011, with a single core drill undertaking initial evaluation of four drill ready targets on the Nkwanta (Apankrah and Nana targets), POW (Dansuom target) and Asuogya-Ayiem (AA Veins target) concessions. The drill campaign produced results similar to neighbouring deposits and prompted an initial follow-up on two of the key targets — Apankrah and Dansuom (see figures 1 and 2 respectively). The Company completed 3,000m (18 hole) follow up drill program at Apankrah from June to September 2012, which returned encouraging values to define the Apankrah Shoot and identified a new mineralized trend (Scorpio target). Castle Peak is now conducting a ~1,100m (4-5 hole) follow up drill program on the higher grade Apankrah Shoot with results expected early in 2013.

Drill highlights to date are summarized below:

Apankrah Target Area:

Apankrah Target

• 6.0m of 80 g/t Au, incl. 1.6m of 296 g/t Au
• 10.0m of 6.7 g/t Au incl. 2.5m of 10.2 g/t Au
• 9.8m of 6.8 g/t Au incl. 1.0m of 51.8 g/t Au
• 20m of 3.2 g/t Au, incl. 2.8m of 17.4 g/t Au
• 7.5m of 7.2 g/t Au, incl. 2.2m of 24.2 g/t Au
• 19.0 m of 1.5 g/t incl. 6.0m of 3.2 g/t Au

Nana Target

• 0.5m of 10.3 g/t Au
• 3.0m of 1.9 g/t Au

Scorpio Target

• 16.5m of 1.1 g/t Au
• 13.0m of 1.0 g/t Au

Dansuom Target Area:

Dansuom Target

• 10.8m of 2.9 g/t Au, incl. 3.6m of 8.0 g/t Au
• 16.5m of 0.7 g/t Au, incl. 6.9m of 1.2 g/t Au
• 15.0m of 0.6 g/t Au, incl. 4.5m of 1.6 g/t Au

Asuogya-Ayiem Trend:

AA Veins Target

• 16.5m of 1.1 g/t Au
• 13.0m of 1.0 g/t Au

Figure 2: Soil anomalies and drilling within the Dansuom target area – small volume intrusion model proposes a key structural intersection where easterly trending structures intersect the north-south target creating potential for a larger volume lower grade deposit. Approximately 900m of shallow drilling (7 holes) has been completed to date at POW.

Regional Exploration

Initial passes of reconnaissance have been completed on the Akorade Project, identifying 25 target areas over all nine concessions. Additional field activities are currently prioritized for target development on the Great Yorkshire, Dompem, POW and Asuogya-Ayiem concessions. Exploration activities on all concessions are continually compiled and re-evaluated in order to prioritize the targets that have the strongest potential to provide Castle Peak with its initial resource base.

Historical activities for regional exploration have been summarized below:

• Secured ~225 km² land tenure covering a portion of the prolific Tarkwaian-Birimian
• Completed 43-101 technical reports on the Nkwanta, POW, Asuogya and Ayiem Concessions
• Performed project wide geophysical VTEM survey:
• Geotech Airborne Services completed a 3,425 km airborne survey (VTEM, magnetics, radiometrics) over the ~225 sq. km land package
• First modern compilation of the geology at a concession and prospect level
• Confirmed initial interpretations of controls, specifically, flexures on the inferred north-south structures and cross structures on Birimian-Tarkwaian boundary resemble similar controls for deposits currently being mined in the area
• Compiled and reviewed all historical streams, soil, auger sampling and trenching
• 335 historical stream samples taken across complete land package to identify key exploration areas
• More than 12,355 historical soil samples on 200m x 50m grid completed
• Largest anomaly 9500m x 1000m on Asuogya-Ayiem trend
• Two to three strong anomalies per concession and many more moderate anomalies

Summary

Next Steps

• Deliver drill results from ~1,100m (4-5 hole) follow up drill program at Apankrah target, targeting down dip and down plunge of drill hole NKDDH022 (6m @ 80g/t Au);
• Review Dansuom target located on the POW concession. Drill follow up has been delayed due to unexpected weather conditions prohibiting road construction. Field teams are currently following up on the new road exposures, mapping and sampling, and induced polarization geophysical surveys in support of further developing the conceptual small volume intrusion (SVI) target in the Dansuom area;
• Currently awaiting additional geophysical interpretation on the ground magnetics and induced polarization geophysical surveys completed on the Nkwanta, Asuogya-Ayiem and Great Yorkshire concessions
• Continue field work, evaluation and target generation on the remainder of the land package, allowing Castle Peak to identify and prioritize key targets with the goal of defining an initial resource estimate

Management

Darren Lindsay, BSc (Honours), PGeo – President & Chief Executive Officer
Mr. Lindsay is a professional geoscientist registered with the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) and has over 15 years experience in exploration geology for precious and base metals in North and South America. He has worked for both junior and senior companies, including Newmont Mining Corporation, Miramar Mining Corporation, BHP Minerals Canada Ltd, Inmet Mining Corporation, and Kodiak Exploration Limited, undertaking management roles of increasing responsibility including supervision of large scale exploration and feasibility level projects.

Recently, Mr. Lindsay played a key role on the teams involved with the expansion and feasibility level studies of the multi-million ounce Madrid and Doris gold deposits in Hope Bay, Nunavut, and the identification and evaluation of the key project, the Magino Gold Project, for Prodigy Gold Incorporated.

Paula Rogers, CA – Chief Financial Officer
Mrs. Rogers is a Chartered Accountant who has 15 years’ of experience working for Canadian-based international public companies in the areas of treasury, mergers and acquisitions, financial reporting, and tax, and is currently Director and Audit Committee Chair for Timmins Gold Corp. Prior to joining Castle Peak Mining Ltd. as Chief Financial Officer in September 2010, she was Vice-President, Treasurer of Goldcorp Inc. and previously Corporate Treasurer of Wheaton River Minerals Ltd. from 2004 until its 2005 merger with Goldcorp.

Paula was responsible for financing the remarkable growth of both Goldcorp and Wheaton during her six year tenor and successfully raised over $4 billion in bank credit facilities, convertible notes and project financing for the companies. She has also held senior finance roles at Finning International Inc. including Assistant Treasurer, Corporate Reporting Manager and Tax Manager over a period of nine years. Paula holds a Bachelor of Commerce from the University of British Columbia and completed her CA articling at Deloitte and Touche.

Clive Arthur, M.Sc, BSc – Vice President Exploration
Mr. Arthur is an experienced economic geologist with over 30 years experience in exploration and mining for precious metals, base metals and precious stones. He is familiar with a wide range of prospecting techniques, evaluation, engineering and extraction methods, including feasibility studies. He has a thorough understanding of the business of exploration and mining and is highly proficient in IT. He has over 20 years’ experience in Africa with Anglo-American, working on the gold-bearing volcano-sedimentary basins and with African Eagle, as their Exploration Manager for Zambia and Mozambique.

He also held the title Senior Exploration Geologist with JCI and was a Mine & Exploration Geologist with Anglovaal Ltd. Additional experience includes working as an Independent Geological Consultant for projects in Eastern Europe and the FSU and as Exploration/Project Manager with Kazakhstan Minerals Corp. Mostly recently he was European Goldfields Exploration Manager for Romania. Clive joined Castle Peak in May 2012.

Henry Sowah, BSc, MBA – Exploration Manager
Mr. Sowah is a native Ghanaian with more than 8 years’ experience in the mining industry, three of which were spent working on properties relating to Castle Peak Mining. He was the Tenement Administrator for the Company in 2007, and earlier the Project Geologist at Prince of Wales in 2005. He spent nearly three years as the Database Manager with Etruscan Resources Ghana Ltd., supervising all exploration programs for quality adherence.

Mr. Sowah began his career as a student with Ashanti GoldFields and later as a geologist with Ghana Geological Survey. He holds a Bachelor of Science in Geological Engineering from Kwame Nkrumah University of Science and Technology, and a Master of Business Administration in Project Management from the Ghana Institute of Management and Public Administration.

Marlo Hamer-Jackson – Investor Relations Manager
Mrs. Hamer-Jackson has worked in the mining industry for more than 10 years. Before joining Castle Peak Mining, she served as Manager, Investor Relations and Corporate Communications with the Augusta Group of Companies, which included Augusta Resource Corporation, Riva Gold Corporation, Ventana Gold Corporation, and Wildcat Silver Corporation. Earlier in her career, she helped manage the global communications programs at Placer Dome Inc. and later Goldcorp Inc. Mrs. Hamer-Jackson holds a Bachelor of Business Administration from Simon Fraser University, is a member of the Canadian Institute of Investor Relations, and has completed the Canadian Securities Course with honours.

Board of Directors

Brian Lock, Chairman
Mr. Lock has over 30 years’ of experience in the operations, feasibility, design engineering and construction of numerous precious metals and base metal mining projects around the world. Earlier in his career, Mr. Lock held senior positions with a major international mining consortium and two major engineering companies.

Peter Hawley, BSc, PGeo
Mr. Hawley has 33 years’ mining-industry experience that spans grassroots exploration through to development and production. He has worked extensively as a consulting geologist to a large number of intermediate and senior mining companies including Teck Corp., Noranda Inc., Placer Dome Inc. and Barrick Gold Corp.

Darren Lindsay, BSc (Honours), PGeo (President & Chief Executive Officer)
Mr. Lindsay is a professional geoscientist registered with the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) and has over 15 years’ experience in exploration geology for precious and base metals in North and South America.

Randal Gindi
Mr. Gindi is a founder of Castle Peak and has been involved in the mining industry since 2001. Mr. Gindi is also a principal in multiple real estate corporations focused on property development and management, and has previously been involved as a principal in the management and merchandising of several retail department stores.

Allan Green
Mr. Green is President and owner of Consellior SAS, a French company active in strategic advisory services to public and private companies. He is an active investor in both public and private sectors and has developed strong relationships within European financial institutions.

Jurgen Eijgendaal
Mr. Eijgendaal is currently the Managing Director of Ghana Manganese Company Ltd. He is also the Managing Director of Nsuta Gold Mining Ltd., a 90% Grizal Enterprises Ltd owned (10% Government of Ghana) gold exploration Company with exploration activities immediately north of Castle Peak’s land position.  Prior to joining GMC, Mr. Eijgendaal worked in South Africa as Managing Director of an underground chromite ore mine. During his more than 14 years in Ghana, Mr. Eijgendaal has served as the President of the Ghana Chamber of Mines for two terms between 2006 and 2010, and is a former member of the Board of Directors of the Ghana Railway Development Authority. Mr. Eijgendaal holds a Master of Arts degree from the University of Leiden and currently resides in Ghana.