Projects

Ghana

Akoase Gold Project, Ghana (100%)

The Akoase project is located approximately 125km north-northwest of Accra in southern Ghana, with sealed road access within 5km and grid power within 10km of the project area.

The Akoase prospecting licences are located in the northern part of the Ashanti gold belt. A number of major gold mines and projects lie within this belt, including Newmont’s 8.7 million ounce Akyem gold project, which is approximately 25km southwest of the Akoase project area.

In June 2015 the Company announced that it is had executed a sale contract for the Akoase Gold Project for an overall transaction value of US$10 million cash. The purchaser, Akoase Resources Limited (ARL) is the Chinese party that controls Akroma Gold Limited, the owner of the Sian gold project located 12kms from Akoase. Sian has historically reported an NI 43-101 Indicated and Inferred resource of 396,000 ounces.

During 2016 ARL paid the balance of the USD2 million non-refundable deposit to Viking. A further USD6 million becomes payable upon completion of the sale.

All necessary government approvals to transfer the Akoase tenements to have been received and there are no further impediments to completion of the sale. Should ARL default and fail to rectify the default then the asset reverts back to Viking with no further obligation to ARL. As at writing Viking has no reason to expect that ARL may default on its sale completion obligations.

Viking has contracted to sell the Akoase gold project for total sales consideration of US$10 million as follows:
• USD2 million – already paid,
• USD1 million – to be paid by 31 May 2017,
• USD2 million – to be paid by 30 June 2017;
• and USD3 million – to be paid by 31 December 2017
• a further USD2 million via royalties from production.

Each payment date is subject to a 30 day buffer before ARL/BXC Ghana are considered to be in default and penalty interest applies.

Akoase has an Inferred mineral resource estimate, classified in accordance with the JORC (2012) Code, of 20.6 Mt @ 1.2 g/t Au for 790,000 ounces of contained gold, at a 0.5 g/t Au cut-off (September 2013).

Mongolia

Berkh Uul Coal Project (Viking 100%)

Berkh Uul is located 400 km north of Ulaanbaatar in northern Mongolia within the Orkhon-Selege coal district and within 20km of the Russian border. The project is within 40km of rail access into domestic and Russian off-take markets, in close proximity to water, infrastructure and transport.

The deposit consists of shallow, consistent coal seams of high quality bituminous coal amenable to open pit mining.

Viking had confirmed a local industrial demand for unwashed Berkh Uul coal, due to its low ash and relatively high calorific value. Four MOU’s have been signed with the following government entities:

• Darkhan Thermal Power Plant - a major supplier of electricity to Mongolia’s second largest city, the commercial and industrial centre of Darkhan, and the northern region of Mongolia. This plant is being upgraded with coal consumption to increase from approximately 400,000t per year to approximately 600,000t per year

• Erdenet Power Plant - a major supplier of electricity to the Erdenet copper mine, located 180km west of Darkhan City. The plant consumes approximately 250,000t of coal per year

• Darkhan Metallurgical Plant - located close to Darkhan City, it is expanding its current 100,000 tpa steel milling capacity.

• Khutul Cement and Lime Plant, Mongolia’s largest cement manufacturer, located approximately 60km west of Darkhan City, has plans to expand its coal consumption from the current 250,000 t per year to around 400,000t to 500,000 t per year to meet growing domestic demand for its cement products.

The MOU’s state the government entities intent to enter into future purchase agreements for Berkh Uul project coal, and establishes testing of a bulk sample as a basis for technical evaluation of the coal.

In 2015 the Mongolian Government review of the Law on Prohibiting Mineral Exploration and Extraction near Water Sources, Protected Areas and Forests (commonly referred to as the “Long Name Law”) resulted in many local and foreign exploration and mining lease tenements falling within this newly created exclusion zone under the Long Name Law. Viking Berkh Uul Coal Project was one of the affected projects with approximately 53% of the prospecting licence falls within this exclusion zone, which impacts upon the Company’s current coal resource.

Many of the prospecting and mining licenses which were affected by the Long Name Law, including Viking’s, are currently being reviewed by the Mineral Resource Authority of Mongolia (MRAM) and the Ministry of Tourism, Green Development and Environment are under review.

The Berkh Uul deposit has a JORC (2012) coal resource of 38.3 Mt. Of this, 21.4Mt is classified as Indicated and 16.9Mt classified as Inferred. The coal is bituminous in rank (ASTM classification) with average in situ quality as follows: Total Moisture 19.8%, Calorific Value 5,323 kcal/kg (air dried basis, adb), Ash 15.5% (adb), and Total Sulphur 0.37% (adb).

The Company is in the process of evaluating its options for this project.

Khonkhor Zag Coal Project (Viking 100%)

Khonkor Zag is an anthracitic coal project located 1,400km southwest of Ulaanbaatar in Western Mongolia. It is strategically located within 40km of China’s Burgastai border port with an existing haul road adjoining the tenement.

Government approvals have already been received for the Khonkhor Zag Environmental Impact Assessment, and the Feasibility Study Report, which provides a clear pathway for any future mining, and coal production at Khonkhor Zag. Excellent scope exists to develop Khonkhor Zag as a low cost, high margin premium coal project close to Chinese markets. The current mining licence was granted in April, 2013, for a period of 30 years.

The Company is in the process of evaluating its options for this project.

Resources

Akoase Gold Project, southern Ghana, Viking 100% ownership reducing to 0% upon completion of sale

The Akoase East resource has been independently estimated by internationally recognized and qualified resource consultancy GHD Pty Ltd in accordance with the JORC (2012) Code. An Inferred mineral resource estimate of 20.6 Mt @ 1.2 g/t Au for 790,000 ounces of contained gold, at a 0.5 g/t Au cut-off was completed for the Akoase East deposit in September 2013 (Table 1).

The Akoase East resource estimate is based on geological, drilling and assay information up to the end of August 2013. It includes approximately 10,000 metres of historical Reverse Circulation (RC) drilling data, plus data from approximately 10,000 metres of RC and 3,000 metres of diamond drilling completed by Viking between 2010 and 2013.

Table 1: Akoase East JORC (2012) Inferred Resource Estimate (September 2013)

Ordinary Kriging whole block estimates using 25mE x 25mN x 10mRL parent block dimensions. Reported using gold (Au) lower cut-off grades (preferred cut-off is 0.5 g/t Au). Using rounded figures in accordance with the Australian JORC Code (2012) guidance on Mineral Resource Reporting.

Viking is not aware of any new information or data that materially affects the above resource calculation, and that all material assumptions and technical parameters underpinning the estimated resource continue to apply and have not materially changed.

The Akoase East resource estimate and associated report was completed by internationally recognised resource consultants GHD Pty Ltd in September 2013. The resource estimate has been reviewed by Viking’s Competent Person, Mr Peter McMickan, who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM), member number 105742.

Mr McMickan has approved to the Akoase East resource estimation as outlined in this report in accordance with the requirements of the JORC Code (2012) and ASX Rules.

Berkh Uul Coal Project, northern Mongolia, Viking 100% ownership

An Indicated and Inferred coal resource estimate, classified in accordance with the JORC (2012) Code, for the Berkh Uul coal project was completed in March 2014. The resource estimate was completed for Auminco Mines Ltd by internationally recognized and qualified consultancy group, RungePincockMinarco Ltd, and totals 38.3 Mt. Of this, 21.4Mt is classified as Indicated and 16.9Mt classified as Inferred (Table 2). The coal is bituminous in rank (ASTM classification) with average in situ quality as follows: Total Moisture 19.8%, Calorific Value 5,323 kcal/kg (air dried basis, adb), Ash 15.5% (adb), and Total Sulphur 0.37% (adb) (Table 3).

Tables 2and 3: Berkh Uul JORC (2012) Indicated and Inferred Resource Estimate (February 2014)

Sum of columns may not equal the total due to rounding

Sum of columns may not equal the total due to rounding

Note: Air Dried Basis(adb); TM- total Moisture; IM-Inherent Moisture; VM-Volatile Matter; FC – Fixed Carbon; TS- Total Sulphur; CV- Calorific Value; Rdis- in situ Relative Density.

The principal author of the Berkh Uul resource estimate and associated report is Mr Brendan Stats, who is a professional geologist with over 10 years’ experience in mining and mineral resource estimation. Mr Stats is a Senior Geologist of RungePincockMinarco Pty Ltd and a Member of the Australasian Institute of Mining and Metallurgy member number 311313.

Mr Stats is responsible for the Berkh Uul resource estimation and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and for the activity to report a mineral resource. Mr Stats has approved the Berkh Uul resource estimation as outlined in this report in accordance with the requirements of the JORC Code (2012) and ASX Rules.