Royalties

The company owns two Net Smelter Return Royalties (NSR). Royalties are ongoing interests in the production or future production from a property and an NSR is the proceeds returned from the smelter and/or refinery to the mine owner less certain costs and a royalty is a percentage of this return.

Santa Ana Royalty

Orford Mining Corp. holds a 2% NSR on the Santa Ana property in Colombia which is owned and operated by Outcrop Gold Corporation. The following information has been taken from the Outcrop Gold Corporation website. The technical information presented here has not been independently verified by a Qualified Person as defined by NI 43 101 on behalf of Orford Mining. For more information please refer to the Outcrop Gold Corporation website www.outcropgoldcorp.com.

The Santa Ana project comprises 3,538 ha located in the Municipality of Falan, Tolima Department, Colombia, approximately 15 km southeast of the of the town of Mariquita, and 190 km from Bogota, Colombia’s capital city. The Santa Ana project covers a significant part of the Mariquita District where mining records date to at least 1585. The Mariquita District is the highest-grade primary silver district in Colombia. Under colonial Spanish era control of the mines, silver grades were reported to be among the highest in Latin America with the fourteen mines of Santa Ana producing average smelter returns of 4,300 g Ag/t from veins averaging 1.4 m wide.

Historic mining depths support a geologic and exploration model for a composite mesothermal and epithermal vein system having mineralization that likely extends to great depth. At Santa Ana it is unlikely that there is sharp elevation restriction common to high-grade zones in many epithermal systems with no mesozonal component.

At least eleven principle vein zones are recognized on the project that cumulatively provide up to 14 km of strike length – La Ivana (including the La Porfia vein system), Roberto Tovar (Royal Mines, including the Santa Ana vein system), El Dorado, Morales, Pollera, Guanabanera, San Antonio, Palomos, Murillo, Culebra and Megapozo. The zones commonly each contain multiple parallel veins. The veins can show both high-grade gold and high-grade silver mineralization. Silver-gold ratios are variable – probably related to local prevalent styles of gold mineralization as free gold, sulfide-associated gold and possible silver-gold alloys. Higher grade gold-silver intercepts commonly show from 1.1% to 3.8% zinc associated with sphalerite. Native silver is observed locally.

Outcrop discovered a new high-grade gold and silver vein system at La Ivana (Outcrop Gold Corp. News Release dated March 2, 2020). La Ivana had never been drilled before and for the nine holes reported in Phase 1 drilling the average downhole intercept length is 0.52 m with a weighted average grade of 21.7 g Au/t and 1,329 g Ag/t. The weighted average for equivalent gold is 36.9 g Eq Au/t and the weighted average for equivalent silver is 3,224 Eq Ag/t. Highlights included:

1.0 metre of 21.3 grams gold per tonne and 4,680 grams silver per tonne
0.50 metre of 58.1 grams gold per tonne and 876 grams silver per tonne
0.50 metre of 5.8 grams gold per tonne and 1,445 grams silver per tonne
0.61 metre of 29.0 grams gold per tonne and 1,675 grams silver per tonne
0.58 metre of 36.2 grams gold per tonne and 325 grams silver per tonne
0.85 metre of 21.4 grams gold per tonne and 373 grams silver per tonne

For more information please refer to the Outcrop Gold Corporation website www.outcropgoldcorp.com.

Falan Royalty

Orford Mining Corp. holds a 3.5% NSR on the Falan property owned and operated my Malabar Gold Corp. The Falan Property consists of 2,859.21 hectares, located in the Municipality of Falan, in Tolima Department, Colombia. The following excerpt from Baroyeca Gold & Silver Inc.’s press release of relates to the Falan Property. The technical information presented here has not been independently verified by a Qualified Person as defined by NI 43 101 on behalf of Orford Mining.

On April 22, 2020 the it was announced by Baroyeca Gold & Silver Inc. that it has entered into two option agreements with Malabar Gold Corp., a private British Columbia company, whereby Malabar has granted Baroyeca options to acquire a 100-per-cent interest in the Santa Barbara property and the Falan property, two mineral properties located in Colombia, South America, along with all of the machinery, equipment, surface rights, licences, permits, data and records relating to the properties and held by Malabar. Pursuant to the terms of the option agreement, to earn a 100% interest in the Falan Property, Baroyeca must make cash payments of $1-million to Malabar and issue 5-million Baroyeca common shares to Malabar over the term of the option.