Baru Gold Corporation Signs Memorandum of Understanding with Cv. Mahamu Hebat Sejahtera
operations were previously producing gold, the time necessary to produce cash flow will be shortened considerably. Under the terms of the MoU, the Contractor will receive 65% of the total gold recovered, and the Company will retain 35%. This agreement does not prevent the Company from opening additional worksites within the Contract of Work area. The Company retains control of the Sangihe Project and will oversee and supervise all operations led by the Contractor. The Contractor must abide by the same environmental
and reclamation standards required of the Company by Indonesian law. The Company and Contractor are currently negotiating terms of the operating agreement, which may
be subject to mutually agreed to changes from the MoU. The current negotiations have been productive, and the parties look forward to a conclusion being reached. All due diligence, by both
parties, has been completed.