Exploration

The geology of Haiti is prospective exploration terrain for epithermal gold-silver as well as copper-gold porphyry deposits, and consists of preserved remnants of a Cretaceous island arc assemblage situated along the northern margin of the Caribbean Plate. This geologic environment hosts numerous gold and copper occurrences in Haiti, as well as the Pueblo Viejo deposit in the adjacent Dominican Republic. However, even though Haiti's mineral potential is similar to that found in the Dominican Republic, it has remained relatively under-explored.

The recognition of Haiti's exploration potential, coupled with an improving business climate, resulted in EMX's establishment of an exploration program in early 2006. EMX's initial exploration successes at the La Miel and La Mine projects led to the establishment in 2008 of a Joint Venture and Regional Strategic Alliance (the "Agreement") with Newmont Ventures Limited ("Newmont") for exploration in the Republic of Haiti. The Agreement initially included a private placement, a joint venture on the La Miel gold project, and a regional strategic exploration alliance that covered northern Haiti. In 2011, Newmont selected the remaining EMX properties in Haiti as Designated Projects, with on-going exploration funded and managed by Newmont. In April, 2012 Newmont relinquished their rights in the 50 square kilometer Grand Bois Research Permit that covers the historic gold resource area; as a result, EMX has regained 100% control of the Grand Bois project. However, Newmont did elect to retain its exploration interest in the Designated Project's permits that surround the Research Permit. Newmont will continue to fund and manage the exploration work on these surrounding properties as a Designated Project.

To assist in concluding the Mining Convention and accelerate the advancement of drill-ready prospects, the EMX-Newmont joint venture signed a Memorandum of Understanding ("MOU") with the government of Haiti as announced in April, 2012. The MOU establishes procedures under which the parties agree to use good faith efforts to conclude the Mining Convention. The MOU also allows exploration drilling on certain projects while ratification of the Mining Convention is finalized. Once ratified, the Mining Convention will set the financial and related conditions for project exploration, development, exploitation and closure. The La Miel Designated Project's Savane La Place gold prospect is the first project selected for drilling under the new MOU.



EMX's exploration properties in Haiti are covered as six Designated Projects. The portfolio covers over 130 kilometers of strike length along northern Haiti's Massif du Nord mineral belt, and includes properties with historic resources in addition to multiple early-stage gold and copper discoveries. EMX and Newmont are exploring an extensive property portfolio in what is gaining recognition as one of the world's premier, early stage gold-copper exploration terrains. Summaries of the Designated Projects are given below.

Northwest Haiti (including Vert de Gris prospect). The Vert de Gris prospect is a porphyry copper-gold-molybdenum target defined within a 1.0 by 1.5 kilometer copper-in-soil anomaly of greater than 0.1% copper. The dimensions and tenor of the Vert de Gris anomaly compare favorably with copper-in-soil footprints of several porphyry copper deposits from around the world. Mapped geology and alteration show clear evidence of a laterally extensive porphyry copper-type system. Of special note is a central zone of breccia, measuring approximately 200 by 300 meters, that hosts abundant evidence of copper oxide mineralization as green, copper-stained outcroppings in streambed and hill slope exposures. Moreover, both chalcopyrite and bornite-rich copper sulfide mineralization has been observed in addition to the oxide mineralization. The JV has conducted a systematic evaluation of the project, including detailed geologic and alteration mapping, airborne and ground geophysical surveys, and geochemical sampling programs that have outlined several drill-ready targets.

Exploration work approximately 45 kilometers southeast of Vert de Gris has identified multiple copper-gold prospects within a 14 kilometer long, northwest trending corridor of skarn-related alteration and mineralization. Elsewhere within the Northwest Haiti DP, regional BLEG and stream sediment geochemical sampling has yielded multiple gold, copper, and molybdenum anomalies for follow-up.

Grand Bois Designated Project. The Newmont-Eurasian joint venture drilling at Grand Bois has been designed to test the near-surface, oxide gold zone, as well as the property's copper exploration potential at depth. The joint venture's 2009-2010 diamond drilling within the deposit's historic resource area averaged 2.35 g/t gold over 27 meters (true width). Further, the drilling in and around the historic resource area consistently identified copper mineralization beneath the gold zone, as did two reconnaissance holes drilled 800 meters to the northwest in the area of the Riviere Brunette copper prospect. A northwest trending, 650 by 250 meter geophysical anomaly (IP-chargeability) is coincident with the historic resource area, and remains open laterally and at depth. Similar, untested IP anomalies also occur in the Riviere Brunette area. Recent work at Grand Bois suggests that the oxide gold mineralization may be spatially related to a porphyry copper-gold system.

Newmont has relinquished its interest to EMX in the 50 square kilometer Research Permit that covers the Grand Bois historic resource. However, Newmont did elect to retain its exploration interest in the Designated Project's permits that surround the Research Permit. Newmont will continue to fund and manage the exploration work on these surrounding properties as a Designated Project. The Company is reviewing its options for the Grand Bois project as a 100% EMX asset.

La Mine Designated Project. EMX discovered three higher-grade copper-silver-gold prospects within the La Mine Designated Project's Treuil license area in western Haiti, named Champagne, Chardonnay, and Bordeaux. These three prospects outline an 18 square kilometer district-scale exploration target with rock sample copper grades consistently over 1%, and associated gold grades increasing towards the south and east.

The Savane Longue and Terre Neuve licenses are located southwest of the Treuil license. The region hosts multiple copper-gold prospects within a 14 kilometer, northwest trending corridor of skarn-related alteration and mineralization.

La Miel Designated Project. The joint venture has outlined strong epithermal alteration and anomalous gold mineralization at the Savane La Place prospect, including trench results of 243 meters (interpreted true width) averaging 1.71 g/t gold. Over 950 meters of trenching and mapping at Grande Savane defined an alteration zone of 2000 by 700 meters, including a smaller 400 by 500 meter area of silica-clay alteration with barite and iron oxides that correlates with gold mineralization.

Northeast and North Central Haiti Designated Projects. The North Central and Northeast Designated Projects were initially assessed though reconnaissance BLEG sampling programs. This work resulted in the delineation of one of the largest gold BLEG anomalies found to date in Haiti, and outlines an area of over 20 square kilometers. Field follow-up consisting of geological mapping and geochemical sampling have identified a number of targets within the region.