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Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources
Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. These mineral resource estimates include inferred mineral resources that are normally considered too speculative geologically to have
economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated categories through further drilling, or into mineral reserves, once economic considerations are applied. The
mineral resource estimates referenced in this press release use the terms Indicated Mineral Resources and Inferred Mineral Resources. While these terms are defined in and required by Canadian regulations (under NI 43-101), these terms are not recognized by the U.S. Securities and Exchange Commission (SEC).
"Inferred Mineral Resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. The SEC normally only permits issuers to report mineralization that does not constitute SEC Industry Guide 7 compliant reserves as in-place tonnage and grade without
reference to unit measures. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Pilot Gold is not an SEC registered company.
Why Turkey?
480000E
400000E
460000E
440000E
540000E
520000E
500000E
420000E
B High Sulphidation Au (Ag, Cu)
Low Sulphidation (Au-Ag)
Miocene volcanic rocks
(sedimentary, ophiolitic
U. Cretaceous Miocene
Unclassified
intrusive rocks
High angle fault
Kestanelik
protolith) Low angle fault
4450000N
Tertiary calc-alkalic continental Canakkale
arc volcanic and intrusive rocks Kirazli
Can
Extension/transtension
4430000N
TV Tower
Alankoy
Kartaldag
High heat flow Kuscayiri Pirentepe
Halilaga
4410000N Agi Dagi
Bayramic
Ezine
4390000N
N
0 10 20
Edremit
km Kucukdere
4370000N
*For more information, please refer to Pilot Golds news release titled Pilot Gold reports silver rich
maiden resource estimate for the KCD deposit, TV Tower dated January 23, 2014 and filed to SEDAR at
www.sedar.com
8 8
TVT Project Geology
TVT Project Alteration
TVT Project Au in Soil
Data
Pending
TVT Project Cu in Soil
Data
Pending
KCD Introduction
Outcropping HSE Au-Ag-Cu Deposit:
Located in the NE corner of the property
Discovered through prospecting and follow
up of soil geochemistry and anomalous rock
samples
Initial discovery hole drilled by Teck in late
2010:
o 136.2m of 4.28 g/t Au, 15.8 g/t Ag,
0.68% Cu in KCD-02
Gangue: Vuggy and massive quartz, alunite,
dickite, kaolinite
Sulphides: pyrite, marcasite, enargite,
covellite, Ag minerals, Te minerals
Native gold
13
KCD Drilling
37,860 metres of drilling in 169 drill holes
KCD
Stratigraphy and mineralization
Hangingwall Andesite
Hangingwall Andesite
Volcanic Breccia
Volcanic Breccia
Reworked
ReworkedTuff
Tuff
Silver Zone
Carbonaceous Mudstone
Silver Zone Carbonaceous
Conglomerate
Mudstone
Conglomerate
Reworked Tuff
Au-Cu-Ag Reworked Tuff
Breccia Zone
Gold Zone
Lithic
Lithic Lapilli
Lapilli Tuff
Au-Cu Vein Zone Tuff
Footwall Andesite
Footwall Andesite
KCD in Core
200m
Gold Copper
Gold Andesite
Breccia
Zone Fluvial-
Stratiform Lacustrine
vuggy silica Sequence
zone
Breccia
Au-Ag-
Cu Vein Au
Lapilli-bearing tuff
Legend
Andesite Breccia
Footwall
andesite &
welded tuff
KCD Leapfrog Model Plan View
N
Gold controlled by
Rock type
WNW- and NS-striking breccia/fault zones
Footwall fault zone
Silver controlled by
Rock type
N to NNE-trending fault/breccia zones 250 m
Oxide Gold
Zone
Silver
Gold Zone Zone
150 m
Looking WNW
KCD Leapfrog Model
Gold controlled by
Rock type
WNW- and NS-striking breccia/fault zones
Footwall fault zone
Stratigraphic
Control
Low Angle
Fault Control
100 m 100 m
Higher cut-off grades = higher average grades (a doubling of the cut-off grade only
removes 15% of the contained gold ounces and almost doubles average gold grade)
INDICATED INFERRED
Cut-off Tonnes Au Metal (x103) Tonnes Au Metal (x103)
(g/t AuEq) (x106) (g/t) Au(oz) (x106) (g/t) Au(oz)
0.5 11.62 1.22 456 1.70 0.9 46
1.0 6.02 2.03 393 0.74 1.5 35
1.5 3.84 2.75 340 0.39 2.1 26
2.0 2.68 3.42 295 0.25 2.6 20
Turkeys 3rd largest silver deposit
Mineral resources that are not mineral reserves do not have demonstrated economic viability. James N. Gray, P.Geo of Advantage Geoservices Ltd. is the Company's designated Qualified Person as defined by NI 43-101 for the KCD resource
estimate is independent of Pilot Gold and prepared the information that forms the basis for KCD resource. For more information, please refer to Pilot Golds news release titled Pilot Gold reports silver-rich maiden resource estimate for the KCD
deposit, TV Tower dated January 23, 2014 and filed to SEDAR at www.sedar.com. Further details of the estimation methods and procedures will be available in a NI 43-101 technical report, to be co-authored and released by SRK Consulting (Canada)
Inc. which will be filed on SEDAR, within 45 days from the date of the January 23, 2014 release. The Classified Mineral Resource estimate is quoted at a cut-off grade of 0.50 grams per tonne (g/t) gold equivalent (AuEq). At a 0.50 g/t AuEq cut-
off, the strip ratio is 1.47:1. Gold equivalence was calculated using a ratio of Au:Ag of $1200:$20, at 75% recovery and copper at $3/lb at 70% recovery.
Resource Estimate
KCD Metallurgy
Hazen Research Inc. contracted to carry out initial
metallurgical test work on material from KCD
Scope of work included cyanide leach and flotation
tests on various ore types, and comminution testing
Initial program contained 132 variability composites,
and 16 master composites representing a range of rock
and ore types and degree of oxidation
Au is relatively well-behaved oxide amenable to
heap leaching; good recovery to concentrate
Ag more variable leaches but probably not amenable
to heap leaching; recovery to concentrate variable
K2 Oxide Gold/Copper Trend
Key growth opportunity at TV Tower
4 km-long oxide HSE gold trend defined by geochemistry and drilling
Massive and vuggy quartz-altered volcaniclastic rocks (or ledges)
W-NW striking, steeply south-dipping, hematite-cemented breccia zones and
fractures (or ribs) host elevated gold grades
Underlain by extensive supergene copper zone; locally by Cu-Au porphyry
K2 Oxide Gold
0.80 g/t Au over 119.8 m,
inc. 2.00 g/t Au over 35.0 m
Accompanying
Long Section
Oxide
Transitional/
Sulphide Supergene
Copper
100 m
Looking WNW
Karaay Leapfrog Model
Gold controlled by rock type and WNW-striking, steeply
SSW-dipping breccia zones (ribs)
Underlain by supergene copper blanket
Telescoped onto porphyry system
But wait, theres more!
Newly recognized mineralization types
Low Sulphidation Epithermal Au-Ag Columbaz -39 g/t Au, 294 ppm Ag grab sample
Massive, saccharoidal, chalcedonic,
colloform, ginguro quartz Kestanecik vein system
Preferred host andesite
Primary targets are Columbaz and
Kestanecik
Listwanite Au-Ag-Cu
Hosted in metamorphic basement rocks
schist and serpentinite
2014: A Look Ahead
Definition and exploration drilling
K2 HSE gold oxide (Kayal definition
drilling, Karaay exploration)
Sarp
K2 Cu-Au porphyry (expand existing HSE
LSE
(Listwanite?)
Test new targets
Ongoing target generation and permitting
on property-wide potential
Expand metallurgical studies to include K2