Kiena Complex

The Kiena Complex is located in Val D’Or, Quebec. On March 7, 2013, the Company announced suspension of mining activities at the Kiena mine by June 30, 2013. Accordingly, Proven and Probable Mineral Reserves were reclassified as Measured and Indicated Mineral Resources. Facing decreasing recovered grades, persistent industry cost pressures and uncertainty in the Canadian dollar gold price, Wesdome management determined that mining operations at the Kiena mine were not currently economically feasible and operations should be suspended. Wesdome management continues to believe that the Kiena Complex has excellent geological potential and believes it will deliver value to shareholders at a future date. Wesdome’s Val D’Or land position consists of a contiguous block of mining claims and concessions covering in excess of 7,500 hectares. This 8 kilometre by 9 kilometre block includes 10 shafts, greater than 2.8 million ounces of historic gold production and a central modern mining, 2,000 tonne per day milling and refining complex currently on care and maintenance. The Company is actively assessing various development scenarios, actively exploring its claims and compiling an updated 43-101 compliant technical report. This rare combination of modern, fully permitted infrastructure and extensive contiguous property ownership in a proven, world class gold mining camp resulted from a decades long consolidation effort. The Company considers the Kiena Complex a premiere brownfields exploration and development opportunity.

A recently completed, independent 43-101 report dated December 16, 2015 for the first time assesses the exploration potential and known resources for the entire property. Measured and Indicated resources below a 100 metre crown pillar total 2,500,600 tonnes at 5.59 grams per tonne for 449,000 ounces. Additional inferred resources below a 100 metre crown pillar total 1,563,300 tonnes at a 7.97 grams per tonne for 400,400 ounces. (See details in Reserves and Resources section)