Enhanced Exploration Targeting at Hope Brook, Newfoundland : Application of Multi-Disciplinary Industry Academic Investigations Growing Projects in Canada.

Enhanced Exploration Targeting at Hope Brook, Newfoundland:

Application of Multi-Disciplinary Industry Academic Investigations

Growing Projectsin Canada

November 21, 2013

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Forward Looking Statements and Technical Disclosures

The information presented contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995, and “forward-looking information” under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and forward-looking information include, but are not limited to, statements with respect to the estimation of mineral reserves and mineral resources; the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; capital expenditures; success of exploration activities; permitting time lines and permitting, mining or processing issues; government regulation of mining operations; environmental risks; unanticipated reclamation expenses; title disputes or claims; litigation liabilities; and limitations on insurance coverage.

Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements and forward-looking information are based on the opinions and estimates of management as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements or forward-looking information. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except in accordance with applicable securities laws.

Dr. Bill Pearson, P.Geo. who is a Qualified Person as defined by NI 43-101 and reviewed and approved the scientific and technical information contained in this presentation.

Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources.

The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.

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COASTAL GOLD EXPLORATION TEAM

Bill Pearson, Ph.D., P.Geo., President & CEO

Dave Copeland, M.Sc., P. Geo., Chief Geologist

Blake Hylands, Staff Geologist

Jeff Burke, Staff Geologist

Noah Rowsell, Project Manager

Chris Hale, Ph.D., P.Geo., Chief Geophysicist

John Gilliatt, P.Geo., Consulting Geophysicist

UNIVERSITY RESEARCH PARTNERS

Western University

Dr. Neil Banerjee, Assistant Professor

Erika Cayer, Geology Student

Memorial University

Dr. Steve Piercey, Associate Professor

Using Science to Advance Exploration

GROUND GEOPHYSICS QUANTEC TITAN 24 COD IP TEAM

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Overview of Presentation

Geological Setting of Hope Brook

Use of Geophysics to outline Mineralized Zones

Application of 3-D Inversion Models

Nature & Distribution of Mineralization

Isotopic Composition of Mineralization; what it tells us about fluid source and origin

Lithogeochemistry and Alteration; tie-in to Geophysics and how to vector to higher grade areas

Working Exploration Model for Hope Brook

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Hope Brook Gold: The Flagship Project

100% ownership in 1,005 claims covering 25,125 ha

Historical production (1987 –1997) of 752,163 ounces gold plus copper concentrate from 1993-1997

Current Mineral Resource

– Indicated: 12.3 million tonnes @ 1.48 g Au/t for 590,000 oz

– Inferred: 8.3 million tonnes @ 2.07 g Au/t for 548,000 oz

Deposit hosted in SW part of Late Proterozoic Avalon Zone

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Geology of Avalon Zone

Late Neo-Proterozoic (760-540Ma) assemblage of active plate margin sequences (O’Brien et al. 1998)

Sequences accumulated prior to development and closure of the Lower Proterozoic Iapetas Ocean

Most significant magmatic activity from 640-560Ma

Volcanic and plutonic rocks in this period evolved in back-arc or continental arc settings

Broad association with terrestrial or marine siliciclastic sequences

Related in time to develop of Gold mineralized systems in Avalon Zone of which Hope Brook is a major example

Intense post mineral deformation

7

Published Models for Hope Brook

1985 to 1990 – BP-Selco (Colin McKenzie, Alan Yule) – Identification of Pre-shearing, synvolcanic/intrusive Acid Sulphate Hydrothermal Alteration Developed atop the Roti Intrusive Suite.

1992 – Peter Stewart Ph.D. Thesis – Major Descriptive Study of the Hope Brook Deposit and Characterization of Alteration - Postulated Importance of Chetwynd Granite.

1996 to 1998 – Dr. Benoit Dube (GSC) and Dr. Sean O’Brien (NLGS) – Description of Deposit as a High-Sulphidation Epithermal System within the Neoproterozoic Avalon Zone.

2010 – present – Coastal Gold - Further Identification as High-Sulphidation Mesothermal to Epithermal Deposit Developed within a Neoproterozoic Arc System – de-mystification of the Chetwynd Granite. Commonalities with younger world class high sulphidation systems globally.

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Hope Brook Stratigraphy and Age

After Dube et al., 1998

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Major Gold Mineralized Structuremore than 8 km in Length

This is an extensive mineralized system that is very under-explored

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Airborne Magnetics

Strongly silicified gold mineralized zone in late Proterozoic rocks are marked by a prominent magnetic low (in blue)

11

Property Geology

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Large Scale Mineralized System

High sulphidation gold deposit formed from a long lived magmatic- hydrothermal system

Mineralized zone open along strike and at depth

Alteration pattern similar to large scale epithermal systems

Considerable upside for outlining additional higher grade mineralization within extensive lower grade mineralization

Helicopter for scale

Open Pit (behind

hill)

Altered & Mineralized Shear Zone 500+m wide

Cinq Cerf Fault Zone

Silurian Rocks

Neoproterozoic Rocks

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Exploration Drill Targets at Hope Brook

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General LithostratigraphyPyrite Zone – Felsic Fragmental, highly siliceous with 2-15% stringer Pyrite.

30-80 metres thick

Cinq Cerf Fault

Silicified Mineralized Zone Massive v. fine grained silica, vuggy, microbrecciated with 2-4% Py and up to 4% Cp, Bn. Cut by unaltered mafic dykes.

15-80 metres thick

Advanced Argillic Zone Variably textured, white to grey, pyrophyllite, alunite, kaolinite; 2-5% diss. Py. Blue Qtz crystals, occasional preserved felsic fragments and quartz porphyry.

Up to 300 m thick

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Gold Mineralization at Hope Brook

Gold mineralization hosted in silicified zones within Late Proterozoic Whittle Hill Sandstone – Third Pond Tuff succession

Two major gold-bearing stages:– Earlier pervasive buff coloured silicification with lower

grade mineralization (~0.5 – 1.0 g Au/t) 15-80m thick– Later vuggy grey silicification with local siliceous breccia

(>2.0 – 5.0+ g Au/t and significant Cu) 5-25m thick

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Mine Zone Geological Section 11400E

Extensive mineralized system that is very underexplored

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New Structural Model with Major Folds

Drilling and geophysics have identified a major fold structure that closes below surface in the Connector Zone. This explains why the silicified horizon doesn’t come to surface southwest of the existing mine where historical drilling failed to intersect the mineralized silicified zone.

240 - Connector Zone Target extends for 1,200m along strike

Section 10500 E

Hope Brook Gold Resource Model (Being Updated) 590,000 Indicated and 548,000 Inferred ounces of gold are located within this

model*

open

open

open240 Zone

open

Mine Zone

Newly Identified Major Near Surface Target Zone

*For full Mineral Resource Estimate, please refer to the table and technical disclosures found on slide 11

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Developing Improved Vectors for Exploration

Key Questions:

How to efficiently trace mineralized zones and outline areas with strongest and most extensive silicification.

Are two stages of mineralization the result of different events or evolution of the same hydrothermic system?

How to better target areas of higher grade mineralization within the mineralized structure.

What is the potential size and scale of the Hope Brook gold mineralized system?

How to best integrate new information into an enhanced model to direct further exploration efficiently.

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How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification

Former HB Mine

Major Target Zone

Extensive Resistivity Low Marks Footwall Conductor (Blue)

Titan 24 Survey at Hope Brook

Secti

on

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How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d)

Resistivity

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How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d)

3D Inversion Model: UBC DCIP3D

Conductivity

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How to Efficiently Trace Mineralized Zones and Outline Areas with Strongest and Most Extensive Silicification (Cont’d)

Footwall Pyrite Conductor

Resistive Silicified Mineralized Zone

Geosoft 3D Voxel Model DC Conductivity

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Fall 2012 Drill Program Confirmed Major Strike Extent

Completed 5,951 meters of reconnaissance diamond drilling in 21 holes 

Drill program identified a major new near surface target zone in the “Connector Zone” just 900m southwest of the former mine

Mineralized silicified zones were intersected over a strike length of 3.4km demonstrating continuity of the system and effectiveness of targeting using geophysics

Thickness of the Connector Zone alteration is interpreted to be similar to that of the former mine and 240 Zone

Drill Results included:

– Hole HB12-100: 1.51 Au g/t over 14m, 2.03 Au g/t over 8m, and 1.07 g Au/t over 18.1m

– Hole HB12-101: 1.04 g Au/t over 8.5m, 1.44 g Au/t over 2.9m, and 1.35 g Au/t over 5.6m

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Collaborative Research Project

Collaborative research project in progress with University of Western Ontario and Memorial University

Focus is to better understand nature, distribution and origin of higher grade mineralization to aid further exploration

Samples selected from a fence of holes covering range of lithologies and mineralization

Initial results are very encouraging

Are two stages of mineralization the result of different events or evolution of the same hydrothermal system?

How to better target areas of higher grade mineralization within the mineralized structure

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Hope Brook: Mineralogy of High Grade Au

Scanning Electron Microscope

• Indicates elements present include Sn, Hg, As, Pb, Fe, Si, Cu, Au

Mineral Liberation Analysis:

Epithermal Mineral Assemblage

• Mawsonite, Cassiterite (Both Sn minerals)

Gold Grain Mapping

• Fine grained 2-3 microns within sulphide grains

• Typically on margins of chalcopyrite (cp), mawsonite (mw) and bornite (bn)

1 2

3

1

2

3

0 m 200 m

0 m 50000 m50 m

cp mw

cp

mw bnAu

Au

Au

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Hope Brook: Mineralizing Fluids

Analysis of samples from major silicified zones across deposit; grades from 0.5 g Au/t to 204 g Au/t

Wallrock has wide range of O isotopic values typical of volcanic-sedimentary-intrusive rocks

ALL the samples with elevated gold are restricted to a very narrow d18O range

Gold mineralization at Hope Brook was likely deposited from a single fluid source

Hole HB11-023 included the highest grade returned at Hope Brook - 204g/t Au and 7.98% Cu over 1.5m Core Length

Primary Lithogeochemistry Hope Brook Deposit hosted

within calc-alkaline to transitional arc volcanic and intrusive suite; Change in tectonism/magmatic chemistry key to mineralization?

All rocks (Siliceous, Pyrite and Argillic Alteration Zones, Roti Intrusive Suite) lie along the same fractional crystallization trend and have a common magmatic source => unified stratigraphy

Immobile trace element geochemistry similar to world-class high sulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru and Lepanto, Phillippines)

Tectonic Discrimination Diagrams

1 10 100 10001

10

100

1000

Nb

Y

syn-collisional (S-type)volcanic arc (I-type)

within plate (A-type)

ocean ridge (OR-type)

Pearce et al. 1984

Volcanic Arc (I-type setting)

0 10 20 30 40 50 60 70 80 90 1000

50

100

150

200

250

300

350

400

Zr

Y

Tholeiitic

TransitionalCalc-Alkaline

Barrett and MacLean 1999

Yanacocha data from Longo et al. (2010)

Lepanto data from Hedenquist et al. (1997)

Calc-alkaline to Transitional

Hope BrookYanacocha

Lepanto Siliceous

Pyrite Zone Argillic

RotiLegend

Primary Lithogeochemistry

Expanded trace element geochemistry very similar to other world-class high-sulphidation and porphyry Au-Cu deposits (e.g. Yanacocha, Peru; Lepanto, Phillippines)

Flat HREE (right side of plot) indicative of melting at shallow crustal levels = HIGH HEAT FLOW

The right tectonic environment, same chemistry and formation conditions for causative intrusions = LARGE SYSTEM!!

.1

1

10

100

1000

ThNb

LaCe

PrNd

SmZr

HfEu

TiGd

TbDy

YEr

YbLu

AlV

Sc

Rock/Extended PM 2 Extended-PM-2-Sun and McD 89

.1

1

10

100

1000

ThNb

LaCe

PrNd

SmZr

HfEu

TiGd

TbDy

YEr

YbLu

AlV

Sc

Rock/Extended PM 2 Extended-PM-2-Sun and McD 89

Roti Intrusive Suite,

Hope Brook

Intrusive RocksYanacocha, Peru

Primitive Mantle Normalized Trace Element Plots

Data from Longo et al. (2010)

Primary Lithogeochemistry

Pyrite Zone,Hope Brook

Silicified Zone,Hope Brook

Primitive Mantle Normalized Trace Element Plots

.1

1

10

100

1000

ThNb

LaCe

PrNd

SmZr

HfEu

TiGd

TbDy

YEr

YbLu

AlV

Sc

Rock/Extended PM 2 Extended-PM-2-Sun and McD 89

.1

1

10

100

1000

ThNb

LaCe

PrNd

SmZr

HfEu

TiGd

TbDy

YEr

YbLu

AlV

Sc

Rock/Extended PM 2 Extended-PM-2-Sun and McD 89

Pyrite Zone and Siliceous Mineralized Zone show alteration but same REE plot as Roti Intrusive.

Shows that the Silicified and Pyrite Zones Developed from a similar parent magma to the Roti Intrusive Suite.

Provides a linkage between conductive Pyrite Zone and Mineralized Silicified Zone. i.e. conductors act as a good proxy for mineralized zones.

Lithogeochemistry and Alteration

Intense alteration zone outlined between the Main Zone and 240 Zone.

Alteration typified by Na-depletion and elevated major element alteration indices (e.g. CCPI – Chlorite-Carbonate-Pyrite Index).

Alteration zone tracks SW towards the 240 Zone and its up dip extension.

Large untested, near-surface Exploration Target.

<0.5% Na surface marking zone of Na-

depletionGold Resource

0.5 g Au/t cut-off

Near-surface

Target Zone

Near-surface

Target Zone

Gold Resource

0.5 g Au/t cut-off

CCPI>80 marking zone of Au proximal

AlterationModels in Target-

ARCGIS

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Key Points

Lithogeochemistry and alteration support and enhance the geophysical interpretation

Lithogeochemistry confirms linkage between mineralized silicified zone and conductive pyrite zone Validates use as geophysical marker

REE patterns, clay mineralogy and isotopic data indicate a dynamic mesothermal to epithermal environment

Comparable REE and alteration patterns to world class high sulphidation systems in similar tectonic environments

Potential size and scale of the Hope Brook mineralized system is much greater than previously recognized

Hope Brook Deposit Model

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After Dube et al., 1998

High-Sulphidation Mesothermal to Epithermal

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Hope Brook Origin – Working Hypothesis

Fluids responsible for all gold mineralization had a similar geochemical composition and are likely the result of a single large system

Overall low d18O values suggests the possibility of hotter fluids than might be expected at the top of the system i.e. mesothermal – epithermal level

Mineralogy is epithermal in character but textures and isotopes indicate deeper level in system

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Implications for Hope Brook Exploration

Mineralization likely formed by major magmatic-hydrothermal system

Mineralizing system likely initially mesothermal then became emergent to more epithermal but not shallow

Age of mineralization possibly correlative with Roti Intrusion – 563+/-4 Ma (Dunning et al., 1988)

Pyrite zone confirmed as effective geophysical marker

Lithogeochemistry appears to provide best vector to areas of potential higher grade mineralization

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Conclusions Geological, geophysical, geochemical and isotopic data

have better characterized overall mineralizing system Collaborative research project enhanced knowledge of

mineralogy, alteration and likely fluid source Hope Brook is a far bigger system than previously

believed Exploration has just scratched the surface – vectors have

been developed for more efficient targeting 3-D technology for geophysics, geology and alteration

are valuable tools to aid interpretation and develop predictive models for exploration

Use of Science and 3D Technology has Greatly Enhanced Exploration Efficiency