Queensland Gold

The Queensland Gold project is located in the Yarrol Province within the Tasman Orogenic Zone, which hosts significant gold mines and deposits, including Cracow, Mount Morgan and Mount Rawdon (references made to nearby mines and analogous deposits provide geologic context for EMX’s Project, but are not necessarily indicative that EMX’s Project hosts similar mineralization). The Queensland Gold property encompasses a 46,400 hectare area covering historic gold mines, gold occurrences, drill defined zones of gold mineralization, and multiple untested gold geochemical anomalies indicated by historical data sets.

Queensland Gold represents one of EMX’s largest projects by area, covering multiple exploration targets with styles of mineralization that include intrusion related gold, skarn, reef-type veins, and sediment hosted copper mineralization. Many of the exploration targets are associated with suites of Permian-Triassic aged volcanic and intrusive rocks. The styles of mineralization are similar to those seen at the nearby Mount Rawdon gold mine operated by Evolution Mining Ltd, and Metal Bank Ltd’s Triumph gold project. This region of Australia is known for its intrusion-related gold systems (“IRGS”), which is a relatively new deposit type model that was commonly overlooked by historical exploration programs.

The Queensland Gold Project has been the site of historical mining and exploration activities for over a century. In the mid-1990’s, the Boggy Creek gold prospect was explored by CRA Exploration and North Ltd (both precursor companies to what is now Rio Tinto Exploration Pty Limited (“RTZ”), with work that included IP surveys and drilling that consisted of four diamond holes (“DD” prefix) and 17 reverse circulation (“RC” prefix) holes in areas of outcropping gold mineralization. Many of the historical drill holes intercepted long intervals (i.e., >25 meters) of gold mineralization associated with quartz vein stockworks in rhyolitic-dacitic intrusions, typical of IRGS systems. Several holes ended in mineralization, including RC93CH3 which was mineralized over its entire length as 94 meters averaging 0.49 g/t gold, and DD93CH10 which averaged 0.47 g/t over 66 meters (59-125 m)1. For comparison, the average grade of current reserves (proven & probable) at the nearby Mt. Rawdon Mine is 0.68 g/t gold2.

In terms of historical production, gold was discovered at Monal Creek in 1891, leading to the development of the Monal Goldfields in the northwest portion of the EMX license. This area is marked by historical shafts, adits, mine dumps and processing sites, where gold mineralization was present in multiple parallel quartz vein reefs. Eight reef deposits were discovered and mined, with the gold mineralization appearing to extend for several kilometers along strike. Available records of historical production (1892-1930’s) indicate that the grade of material processed by the mills averaged in the range of 24-37 g/t gold3. Based upon field observations and historical mapping, zones of sulfide-rich alteration and veining extend between the major reef deposits at Monal. However, more work is needed to better understand the distribution of mineralization in the area of the historical mines, as there are suggestions of lower-grade material being present between the higher-grade reef deposits. EMX considers this to be a high priority target concept for further exploration work and drilling.

On September 8, 2020 the Queensland Gold project entered into an option agreement with Many Peaks Gold Pty Ltd, a private Australian company. The Agreement provides EMX with cash, work commitments, annual advance royalty payments, and a 2.5% Net Smelter Returns royalty interest in the Project, as well as other considerations ( see the Company news release dated September 8, 2020).

EMX’s reconnaissance geochemical sampling and geophysical surveys were conducted in accordance with CIM Best Practice Guidelines. EMX has not performed sufficient work to verify the Project’s historical drill results or production data, but considers this information to be reliable and relevant.

References made to nearby mines and analogous deposits provide geologic context for EMX’s Project, but are not necessarily indicative that EMX’s Project hosts similar mineralization.

1Historic drill results from “QDEX Report No. 26510”, ” QDEX Report No. 27444”, and ” QDEX Report No. 30549”, Geological Survey of Queensland. True widths are unknown.

2Information for Mt Rawdon: JORC proven and probable reserves at a 0.24 g/t cutoff of 24.65 Mtonnes @ 0.68 g/t Au as detailed in “Mineral Resource and Ore Reserve Statement - Dec 2019”, Evolution Mining Ltd website, accessed 2020/08/14 , evolutionmining.com.au/reservesresources. Note that resources are inclusive of reserves.

3Historic production grades from “QDEX Report CR22997”, Geological Survey of Queensland.

Maps

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