Excelsior Gold : Resource and Exploration Drilling Update

HOLE NUMBER

EAST

MGA94 Z51

NORTH

MGA94 Z51

AHD RL (m)

FINAL DEPTH (m)

COLLAR DIP

COLLAR AZIM

FROM (m)

TO (m)

LENGTH (m)

GRADE (Au g/t)

Parkerville

KNC140030

336075

6639818

426

70

-60

90

53

54

1

1.19

KNC140031

336053

6639788

427

100

-60

90

54

65

11

4.35

incl

61

64

3

12.7

KNC140034

336072

6639748

426

65

-60

90

NSI

Botswana West

KNC140020

333769

6635069

432

83

-60

90

1

10

9

1.32

KNC140041

333799

6635054

432

52

-60

90

23

40

17

0.83

KNC140042

333791

6635069

432

35

-60

90

NSI

KNC140043

333753

6635107

432

38

-60

90

28

30

2

1.58

KNC140044

333735

6635108

432

53

-60

90

NSI

KNC140045

333715

6635108

432

41

-60

90

NSI

Pleasurebound (4m composite RC samples - 1m re-splits pending)

KNC140035

335040

6641485

429

120

-60

270

52

56

4

0.14

KNC140036

335080

6641485

429

120

-60

270

52

56

4

0.14

72

76

4

0.10

KNC140037

335120

6641485

430

85

-60

270

0

4

4

0.16

KNC140038

334960

6641625

429

90

-60

270

NSI

KNC140039

335000

6641625

429

90

-60

270

88

90

2

0.11#

KNC140040

335040

6641625

429

90

-60

270

44

52

8

0.14

Criteria

JORC Code explanation

Commentary

Sampling techniques

 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (e.g. 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

 The Reverse Circulation (RC) was designed to infill in places existing drilling to nominal 10m x 10m grid spacing. The holes were drilled towards grid east or grid west at 60 degrees to optimally intersect the mineralized zones.

 All RC recovered samples were collected and passed through a cone splitter. Prior to drilling the drill whole locations were pegged using either contract surveyors or hand held GPS units. After drilling, all drill whole locations are picked up by contract surveyors using a RTK system. All drill holes greater than 80m drilled by EXG were down hole surveyed by contractors using specific non-magnetic tools.

 All RC drilling was sampled on one metre down hole intervals. The recovered samples were passed through a cone splitter and a nominal 2.5kg - 3.5kg sample was taken to a Kalgoorlie contract laboratory. Samples were oven dried, reduced by riffle splitting to

3kg as required and pulverized in a single stage process to 85%

passing 75 µm. The sample is then prepared by standard fire assay

techniques with a 50g charge. Approximately 200g of pulp material is returned to Excelsior for storage and potential assay at a later date. Samples were oven dried, crushed to a nominal 10mm by a jaw crusher, reduced by riffle splitting to 3kg as required and pulverized in a single stage process to 85% passing 75 µm. The sample is then prepared by standard fire assay techniques with a 50g charge. Approximately 200g of pulp material is returned to Excelsior for storage and potential assay at a later date.

Drilling techniques

 Drill type (e.g. core reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

 All assays reported in this announcement have come from drilling using a drilling contractor. The RC drilling system employed the use of a face sampling hammer and a nominal 146mm diameter drill bit.

Drill sample recovery

 Method of recording and assessing core and chip sample recoveries and results assessed

 Measures taken to maximise sample recovery and ensure representative nature of the samples

 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to

 All RC 1m samples are logged for drilling recovery by a visual estimate and this information is recorded and stored in the drilling database. At least every 10th metre is collected in a plastic bag and these are weighed when they are utilized for the collection of field duplicate samples. The weight of the sample in the plastic bag is recorded and the total sample recovery can be calculated. All samples received by the laboratory are weighed with the data collected and stored in the database. Sample loss or gain is reviewed on an ongoing basis and feedback given to the drillers to enable the best representative sample to always be obtained.

 RC samples are visually logged for moisture content, sample recovery and contamination. This is information is stored in the database. The RC drill system utilizes a face sampling hammer which is industry best practice and the contractor aims to maximize recovery at all times. RC holes are drilled dry whenever practicable to maximize recovery of sample.

 Study of sample recovery vs gold grade does not show any bias towards differing sample recoveries or gold grade. The drilling contractor uses standard industry drilling techniques to ensure

preferential loss/gain of fine/coarse minimal loss of any size fraction. The sample recovery vs gold grade

material. is assessed on an ongoing basis throughout the drilling program.

Logging

 Whether core and chip samples have  All RC samples are geologically logged. Specifically, each interval is been geologically and geotechnically visually inspected with a hand lens and the following parameters are logged to a level of detail to support recorded where observed: weathering, regolith, rock type, alteration, appropriate Mineral Resource estimation, mineralization, shearing/foliation and any other features that are mining studies and metallurgical studies. present. This information is transferred electronically from the

geologist to the database.

 Whether logging is qualitative or  Where required the logging records the abundance of specific quantitative in nature. Core (or costean, minerals or the amount of alteration (including weathering) using channel, etc) photography. defined ranges.

 The total length and percentage of the  The entire lengths of RC holes are logged on a 1m interval basis, i.e. relevant intersections logged. 100% of the drilling is logged, and where no sample is returned due to voids (or potentially lost sample) it is logged and recorded as

such.

Sub-sampling techniques and sample preparation

 If core, whether cut or sawn and whether  not applicable

quarter, half or all core taken.

 All RC samples are put through a cone splitter and the sample is

 If non-core, whether riffled, tube sampled, collected in a unique pre-numbered calico sample bag. The moisture rotary split, etc and whether sampled wet content of each sample is recorded in the database. The drilling or dry. method is designed to maximize sample recovery and representative

splitting of samples. The drilling methods also maximize dry samples as they are designed to keep water out of the hole when possible.

 For all sample types, the nature, quality  The sample preparation technique for all samples follows industry and appropriateness of the sample best practice, by an accredited laboratory. The techniques and preparation technique. practices are appropriate for the type and style of mineralization. The RC samples are sorted, oven dried, the entire sample is pulverized

in a one stage process to 85% passing 75 µm. The bulk pulverized sample is then bagged and approximately 200g extracted by spatula

to a numbered paper bag that is used for the 50g fire assay charge.

 Quality control procedures adopted for all  RC samples submitted to the laboratory are sorted and reconciled sub-sampling stages to maximise against the submission documents. Excelsior inserts blanks and representivity of samples. standards with blanks submitted in sample number sequence at 1 in

50 and standards submitted in sample number sequence at 1 in 20. The laboratory uses their own internal standards of 2 duplicates, 2 replicates, 2 standards, and 1 blank per 50 fire assays. The laboratory also uses barren flushes on the pulveriser.

 Measures taken to ensure that the  In the field every 10th metre from the bulk sample port on the cone sampling is representative of the in situ splitter is bagged and placed in order on the ground with other material collected, including for instance samples. This sample is then used for collection of field duplicates results for field duplicate/second-half via riffle splitting. RC field duplicate samples are collected after sampling. results are received from the original sample assay. Gener ally, field duplicates are only collected where the original assay result is equal

to or greater than 0.1g/t Au. The field duplicates are submitted to the laboratory for the standard assay process. The laboratory is blind to the original sample number.

 Whether sample sizes are appropriate to  The sample sizes are considered to be appropriate for the type, the grain size of the material being style, thickness and consistency of mineralization located at this sampled. project. The sample size is also appropriate for the sampling

methodology employed and the gold grade ranges returned.

Quality of assay data and laboratory tests

 The nature, quality and appropriateness  The assay method is designed to measure total gold in the sample. of the assaying and laboratory The laboratory procedures are appropriate for the testing of gold at procedures used and whether the this project given its mineralization style. The technique involves technique is considered partial or total. using a 50g sample charge with a lead flux which is decomposed in a furnace with the prill being totally digested by 2 acids (HCl and

 For geophysical tools, spectrometers, HNO3) before measurement of the gold content by an AA machine.

handheld XRF instruments, etc, the

parameters used in determining the  Not used for reporting or interpretation of gold mineralization.

analysis including instrument make and model, reading times, calibrations factors

applied and their derivation, etc.  The QC procedures are industry best practice. The laboratory is

accredited and uses its own certified reference material. The

 Nature of quality control procedures laboratory has 2 duplicates, 2 replicates, 1 standard and 1 blank per adopted (e.g. standards, blanks, 50 fire assays. At the same time Excelsior submits blanks at the rate duplicates, external laboratory checks) of 1 in 50 samples and certified reference material standards at the and whether acceptable levels of rate of 1 in 20 samples in the normal run of sample submission accuracy (i.e. lack of bias) and precision numbers. As part of normal procedures Excelsior examines all have been established. standards and blanks to ensure that they are within tolerances.

Additionally, sample size, grind size and field duplicates are examined to ensure no bias to gold grade exists.

Verification of sampling and assaying

 The verification of significant intersections by either independent or alternative company personnel.

 The use of twinned holes.

 Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

 Discuss any adjustment to assay data.

 Exploration Manger Mr Bradley Toms has inspected and RC chips in the field to verify the correlation of mineralized zones between assay results and lithology/alteration/mineralization.

 A number of RC holes were drilled throughout the deposit to twin historical RC holes. These twinned holes returned results comparable to the original holes and were also used to collect geological information and material for metallurgical assessment. No diamond drilling has been drilled to date to confirm geological interpretation and results obtained from RC drillholes.

 Primary data is sent digitally every 2-3 days from the field to Excelsior's Database Administrator (DBA). The DBA imports the data into the commercially available and industry accepted DataShed database software. Assay results are merged when received electronically from the laboratory. The responsible geologist reviews the data in the database to ensure that it is correct and has merged properly and that all data has been received and entered. Any variations that are required are recorded permanently in the database.

 No adjustments or calibrations were made to any assay data used in this report.

Location of data points

 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation

 Specification of the grid system used

 Quality and adequacy of topographic control.

 All drill holes have their collar location recorded from a hand held GPS unit. Holes that may be in a future resource estimate area have their collar position picked up by licensed contract surveyors using a RTK system. Downhole surveys are completed every 30m downhole.

 All drill holes and resource estimation use the MGA94, Zone 51 grid system.

 The topographic data used was obtained from consultant surveyors and is based on a LiDAR survey flown in 2012. It is adequate for the reporting of Exploration Results and subsequent Mineral Resource estimates.

Data spacing and distribution

 Data spacing for reporting of Exploration

Results.

 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

 Whether sample compositing has been applied.

 The nominal drill spacing is 20m x 20m with some cross-sections in- filled to 10m. This spacing includes data that has been verified from previous exploration activities on the project.

 This report is for the reporting of exploration results. The drill spacing, spatial distribution and quality of assay results is sufficient to support the current JORC classification of material contained within this report and is appropriate for the nature and style of mineralisation being reported.

 Compositing has not been applied to reporting of exploration results.

Orientation of data in relation to geological structure

 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

 If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

 The majority of drilling is to grid east or west. The bulk of the mineralized zones are perpendicular to the drilling direction. Field mapping and geophysical interpretations supports the drilling direction and sampling method.

 No drilling orientation and sampling bias has been recognized at this time.

Sample security

 The measures taken to ensure sample security.

 Sample security is part of Excelsior's QAQC and sampling procedures. RC samples are delivered directly from the field to the Kalgoorlie laboratory by Excelsior personnel on a daily basis with no detours, the laboratory then checks the physically received samples against an Excelsior generated sample submission list and reports back any discrepancies

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

 An internal review of sampling techniques and procedures was completed in March 2013. No external or third party audits or reviews have been completed.

Criteria

JORC Code explanation

Commentary

Mineral tenement and land tenure status

 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

 The results reported in this Announcement are on granted Mining Leases held by GPM Resources Pty Ltd, a wholly owned subsidiary of Excelsior Gold Limited.

 At this time the tenements are believed to be in good standing.

There are no known impediments to obtaining a license to operate, other than those set out by statutory requirements which have not yet been applied for.

Exploration done by other parties

 Acknowledgment and appraisal of exploration by other parties.

 Exploration by other parties has been reviewed and is used as a guide to Excelsior's exploration activities. Previous parties have completed open pit and underground mining, geophysical data collection and interpretation, soil sampling, field mapping and drilling. This report comments only on exploration results collected by Excelsior.

Geology

 Deposit type, geological setting and style of mineralisation.

 The primary gold mineralisation in the Parkerville area is predominately associated with a 10-20m wide shear zone and associated second order structures adjacent to an ultramafic and mafic contact. This mineralisation is associated with intense shearing and quartz, sericite, carbonate, sulphide alteration. The development of possible stockworks at intersections of structures is also interpreted.

Whilst structures and primary gold mineralisation can be traced to the surface depletion has occurred in the top 20-30m and again through the transitional zone. Sub-horizontal supergene enrichment blankets occur throughout the regolith.

Historical workings and shafts exist within the area Detailed mapping and sampling of these workings and structural measurements from orientated diamond core drilling forms the basis of the geological interpretation.

 At Pleasurebound the exploration target is based on the geological model for the Zoroastrian gold mineralisation which is located 400m NW . Drilling has been interpreted to have intersected similar doleritic rocks and alteration style to that seen at Zoroastrian.

 At Botswana W est the exploration target is based on the geological information collected from historical data and field mapping. The potential primary styles of gold mineralisation are narrow high-grade quartz veins and/or stockwork.

Drill hole

Information

 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

 If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

 The drill holes reported in this Announcement have the following parameters applied. All drill holes completed, including holes with no significant gold intersections are reported in this announcement.

 Easting and northing are in MGA94 Zone 51

 RL is AHD

 Dip is the inclination of the hole from the horizontal (i.e. a vertically down drilled hole from the surface is -90°). Azimuth is reported in magnetic degrees as the direction toward which the hole is drilled. MGA94 and magnetic degrees vary by approximately 1° in this project area

 Down hole length of the hole is the distance from the surface to the end of the hole, as measured along the drill trace. Interception depth is the distance down the hole as measured along the drill trace. Intersection width is the downhole distance of an intersection as measured along the drill trace

 Hole length is the distance from the surface to the end of the hole, as measured along the drill trace.

 No results from previous exploration are the subject of this

Announcement.

Data aggregation methods

 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

 Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

 The assumptions used for any reporting of metal equivalent values should be clearly stated.

 No high grade cuts have been applied to assay results. RC assay results are distance weighted using 1m for each assay.

 Intersections are reported if the interval is at least 1m wide at 1g/t Au grade. Intersections greater than 1m in downhole distance can contain up to 2m of low grade or barren material.

 No metal equivalent reporting is used or applied.

Relationship between mineralisation widths and intercept lengths

 These relationships are particularly important in the reporting of Exploration Results.

 If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

 If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. 'down hole length, true width not known').

 The intersection width is measured down the hole trace, it is n ot usually the true width. Cross sections in this announcement allows the relationship between true and down hole width to be viewed.

 Data collected historical workings and shafts exist within the area and structural measurements from orientated diamond core drilling show the primary ore zones to be sub-vertical in nature with a general NNW strike

 All drill results within this announcement are downhole intervals only and due to variable mineralisation and style true widths are not able to be calculated until modelling of the mineralisation.

Diagrams

 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

 Plans and cross sectional view are contained within this announcement

Balanced reporting

 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

 All drill holes completed are included in the results Table in the

Announcement.

Other substantive exploration data

 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples

- size and method of treatment;

metallurgical test results; bulk density,

groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

 No other exploration data is considered meaningful and material to this announcement.

Further work

 The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

 Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

 Future exploration is being planned and may involve the drilling of more drill holes, both DC and RC, to further extend the mineralised zones and to collect additional detailed data on known mineralized zones.

 Future drilling areas are not highlighted as they are not yet planned.