GEOLOGY OF THE HAILE GOLD MINE, LANCASTER COUNTY, SC

The Haile gold deposit currently has a measured and indicated resource of 124.4 metric tonnes and an inferred resource of 24.9 metric tonnes of gold. Romarco Minerals has drilled 393,000 meters since acquiring the property in 2007. The gold mineralization is hosted in Late Proterozoic to Cambrian aged sediments adjacent to older felsic volcanics, both of which have been subjected to greenschist metamorphism. The upper portion of the deposit is saprolitic and part of the area is covered by the Coastal Plain. The Persimmon Fork Formation is a volcanic/volcaniclastic sequence of dacites to rhyodacites that commonly contain albite and can contain lapilli and breccias. The Persimmon Fork Formation generally grades into the Richtex Formation, a sequence of wackes, arenites, and siltstones. The well bedded nature of the siltstones indicates low energy marine deposition below wave base.

The project area is underlain by an asymmetric, shallowly northeast plunging antiform with a moderately dipping northwest limb and a steeply dipping southeast limb. Preliminary zircon ages indicate that the Persimmon Fork is older than the underlying Richtex, suggesting that a tightly folded anticline has been overturned in order to create the current configuration.

The gold mineralization at Haile is hosted within the sediments near the contact with the volcanics. The gold zones consist of stratabound silicified and hydrothermally brecciated sediments that vary from one meter to over 100 meters in thickness, with varying orientations. Microcline is sometimes present where silicification is most intense. Kaolinite is common at the surface, decreases in abundance with depth and is thought to be related to weathering. The gold mineralization generally occurs as microscopic native gold, electrum and gold tellurides, which are associated with pyrite, pyrrhotite and molybdenite.

Several models have been proposed for the ore genesis at Haile and vary from sedimentary exhalative to orogenic. Brecciation and silicification of the sediments indicate that gold mineralization occurred post deposition. The presence of pressure shadows around pyrite grains and folding of sulfide veins demonstrate that deformation occurred post mineralization. We believe that Haile is a rare instance of a preserved Late Proterozoic epithermal gold deposit.