CAUTIONARY NOTES

This report contains forward-looking information which addresses activities, events or developments that are believed, expected or anticipated will or may occur in the future (including, without limitation, statements regarding estimates and/or assumptions in respect of production, revenue, cash flow and costs, estimated project economics, upside potential at Adumbi, mineral resource estimates, potential underground mineral resources, potential mineralisation, potential gold discoveries, drill targets, potential mineral resource increases, estimated exploration costs, exploration results, and future exploration and development plans) are forward-looking information. This forward-looking information reflects current expectations or beliefs based on information currently available and is subject to a number of risks and uncertainties that may cause the actual results to differ materially from those discussed in the forward-looking information. Even if such actual results are realised or substantially realised, there can be no assurance that they will have the expected consequences to, or effects. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainty of estimates of capital and operating costs, production estimates and estimated economic return, the possibility that actual circumstances will differ from the estimates and assumptions used in the Adumbi Preliminary Economic Assessment set out herein, the possibility that future exploration (including drilling) or development results will not be consistent with the expectations of Loncor Gold Inc. ("Loncor" or the "Company"), the possibility that drilling or development programmes will be delayed, activities of the Company may be adversely impacted by the continued spread of the widespread outbreak of respiratory illness caused by a novel strain of the coronavirus (COVID-19), including the ability of the Company to secure additional financing, risks related to the exploration stage of the Company's properties, uncertainties relating to the availability and costs of financing needed in the future, failure to establish estimated mineral resources (the Company's mineral resource figures are estimates and no assurances can be given that the indicated levels of gold will be produced), changes in world gold markets or equity markets, political developments in the Democratic Republic of the Congo, gold recoveries being less than those indicated by the metallurgical test work carried out to date (there can be no assurance that gold recoveries in small-scale laboratory tests will be duplicated in large tests under on-site conditions or during production), fluctuations in currency exchange rates, inflation, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting drilling results and other geological data and the other risks disclosed under the heading "Risk Factors" and elsewhere in the Company's annual report on Form 20-F dated March 31, 2021, filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov. Forward-looking information speaks only as of the date on which it is provided and, except as may be required by applicable securities laws, any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise, is hereby disclaimed. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

The mineral resource figures referred to in this report are estimates and no assurances can be given that the indicated levels of gold will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While it is believed that the mineral resource estimates included in this report are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company.

Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.

Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. Confidence in the estimate is insufficient to allow meaningful application of the technical and economic parameters to enable an evaluation of economic viability worthy of public disclosure (except in certain limited circumstances). Inferred mineral resources are excluded from estimates forming the basis of a feasibility study.

This report includes certain terms or performance measures commonly used in the mining industry that are not defined under International Financial Reporting Standards (IFRS), including cash costs and AISC per payable ounce of gold sold. Non-GAAP measures do not have any standardised meaning prescribed under IFRS and, therefore, they may not be comparable to similar measures employed by other companies. In addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate performance. The data presented is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

National Instrument 43-101 - Standards of Disclosure for Mineral Projects (NI 43-101) is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all resource estimates contained in this report have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission, and resource information contained in this report may not be comparable to similar information disclosed by U.S. companies.

TABLE OF CONTENTS

LIST OF TABLES

LIST OF FIGURES

LIST OF UNITS

It is noted that, throughout the report, table columns might not add up due to rounding.

LIST OF ABBREVIATIONS

1 SUMMARY

1.1 INTRODUCTION

This National Instrument 43-101 (NI 43-101) Technical Report was compiled by Minecon Resources and Services Limited (Minecon) and NEW SENET (Pty) Ltd (SENET) for Loncor Gold Inc. (Loncor) to support Loncor's press release dated December 15, 2021, announcing the results of the Preliminary Economic Assessment (PEA) of Loncor's Adumbi gold deposit within its 84.68 % owned Imbo Project in the Democratic Republic of the Congo (DRC). This report summarises the results of the Adumbi PEA.

1.2 PROPERTY DESCRIPTION AND LOCATION

The Adumbi deposit is located within Loncor's Imbo Project in the Mambasa District of the Ituri Province, in the northeastern region of the DRC, 260 km west of Bunia, the capital of the Ituri Province, and 225 km northwest of the city of Beni. The Adumbi base camp within the Imbo exploitation permit area is located at latitude 1º 43' 58.76" N and longitude 27º 52' 4.01" E or 596,522 m E and 191,570 m N (WGS 84 UTM Zone 35N) (see Figure 1.1).

Figure 1.1: Location of the Imbo Project in East Africa

The Imbo Project covers Exploitation Permit Number 9691, has a total area of 122 km² and encompasses the known gold mineral deposits of Adumbi, Kitenge and Manzako and several prospects including Canal, Bagbaie, Adumbi West, Amuango, Monde Arabe, Vatican and Imbo East. Adumbi is located approximately 220 km by air southwest from the large operating gold mine of Kibali, operated by Barrick Gold, which in 2020 produced 808,134 oz.

1.3 MINERAL RIGHTS AND LAND OWNERSHIP

Loncor is a publicly listed Canadian gold exploration company and holds 84.68 % interest in the Imbo Project through its subsidiary Adumbi Mining S.A., with the minority shareholders holding 15.32 % (including the 10 % free-carried interest held by the Government of the DRC). The Imbo exploitation permit is valid until February 2039.

Minecon and SENET have relied on a letter on land tenure, licences, and permits dated June 8, 2020, from MBM-Conseil, one of the leading firms practising mining law in the DRC. The Imbo Project comprises a Permis d'Exploitation (PE 9691) or Exploitation Licence held by Adumbi Mining S.A., granted for the period February 23, 2009, to February 22, 2039 (and renewable for an additional 15 years), for gold and diamonds and covering a total of 122 km².

Under an agreement signed in April 2010 with the minority partners of Adumbi Mining S.A., Loncor agreed to finance all the activities of Adumbi Mining S.A., until the filing of a bankable feasibility study, by way of loans which bear interest at a rate of 5 % per annum. Within thirty days of the receipt of a bankable feasibility study, the minority partners may collectively elect to exchange their equity participation for either a 2 % net smelter royalty or a 1 % net smelter royalty plus an amount equal to €2/oz of Proven Ore Reserves.

The DRC 2018 Mining Code imposes a royalty tax payable to the State on the sale of minerals, at a rate of 3.5 % for precious metals.

1.4 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, PHYSIOGRAPHY AND INFRASTRUCTURE

Located approximately 225 km by air southeast of the Adumbi deposit, Beni is the nearest major population centre to the Imbo Project and has a population of approximately 230,000. Loncor maintains an administrative office in Beni. The city has a lateritic airstrip with scheduled internal flights to other towns in DRC such as Goma, Bunia, Isiro, Kisangani and Kinshasa. The Isiro airstrip is approximately 200 km by lateritic road to the Imbo Project. From Beni, the Imbo Project is accessible via 322 km of lateritic road to Nia-Nia (where there is a lateritic airstrip), then to Village 47 (47 km north of Nia-Nia) and then via 7 km of lateritic roads to the Adumbi base camp.

The nearest international airport is located at Entebbe in western Uganda and linked by 440 km of paved road to the Kasindi Uganda-DRC border, followed by 80 km of unpaved lateritic roads to Beni. Entebbe has international scheduled flights to South Africa, Europe and Asia and is also linked to other African countries as well as the in-country towns of Kinshasa and Lubumbashi via Nairobi (Kenya).

The climate in the Imbo area is typically tropical and is characterised by a long wet season and short dry season of up to three months from mid-December to mid-March. The average annual rainfall is approximately 2,000 mm to 2,500 mm, with the highest rainfall generally occurring in October. Temperatures are uniformly high throughout the year, and there is little diurnal variability, varying between 19 °C and 23 °C, with daily lows and highs of 16 °C and 33 °C, respectively. Humidity is high throughout the year (75 % to 99 %).

The Imbo Project is located in the Ituri tropical rainforest within the upper reaches of the Congo River Basin. The project area topographically consists of an undulating terrain that varies from approximately 600 m above sea level to 800 m above sea level. Most of the surface area is covered with dense evergreen forests with a closed canopy; however, the hills tend to have relatively steep slopes, and the valley floors within the areas of the linear hills are relatively narrow.

The Imbo Project is drained by numerous creeks and streams, which flow into the Upper Ituri river and its main tributaries: the Epulu, Nepoko, Nduye, Lenda, Ebiena, and Ngayu rivers, which form part of the upper reaches of the Congo River Basin. The closest hydroelectric power station is situated near Kisangani together with the hydroelectric stations supplying power to Barrick Gold/AngloGold Ashanti's Kibali Gold Mine. The towns of Isiro and Beni are potential sources of skilled manpower, and there is sufficient local unskilled manpower in the surroundings of Adumbi.

Given its exploration stage of development, there is limited infrastructure currently available at Adumbi. Presently, infrastructure is composed of an exploration camp (the Adumbi base camp) with associated helicopter landing pad, administration building, accommodation buildings and facilities, field office, core logging and storage facilities, diesel generators and solar power generation, and a sample preparation laboratory.

1.5 EXPLORATION HISTORY

Belgian prospectors were the first to discover gold on the Imbo Project in the early 1900s, with gold production focusing on alluvial deposits until the late 1930s. Primary gold mineralisation was later discovered in the bedrock of the alluvial zones and was exploited in shallow pits and trenches. This was later followed by mining from deep trenches and underground galleries. From the mid-1970s to mid-1980s, the French Geological Survey (BRGM) undertook geological investigations of the Imbo Project area.

The mining rights for the mineral concessions in the Imbo Project area were initially held by Société Internationale Forestière et Minière du Congo (FORMINIÈRE or FRM) from the 1920s to the late 1950s. The Belgian colonial state was co-owner of a 50 % stake in FRM, with the remainder held by American interests. The Société Minière de la Tele (SMT), a subsidiary of FRM, oversaw development and exploitation. Following political independence in 1960, ownership has changed hands multiple times.

Highlights of the reported historical exploration include the following:

• 1980 to 1981: BRGM mapped and sampled the Adumbi and Bagbaie deposits on surface and in the historical underground openings. BRGM also drilled three holes at Adumbi and confirmed that (i) mineralisation extended at depth below the water table, (ii) other mineralised zones, parallel to the main one, also existed, and (iii) gold at depth was associated with sulphides.
• 1988: Bugeco International (Bugeco) produced a report on the property entitled "Gold Potential in the Ngayu Mining District Haut Zaire: the Adumbi and Yindi Old Mines".
• 2009: Kilo acquired the property and carried out extensive exploration activities including major drilling campaigns from 2010.

• By November 2013, Kilo had completed 167 diamond drillholes totalling 35,400 m on the Imbo Project.
• 2014: An independent engineering group Roscoe Postle Associates Inc. (RPA) completed technical studies, outlined an Inferred mineral resource, and made various technical recommendations to be executed by Kilo.
• 2014 to 2017: Kilo completed 63 drillholes totalling approximately 8,900 m to test gold-in-soil and magnetic anomalies at the Adumbi South, Adumbi West and Kitenge Extension targets.
• 2017: Four deeper core holes were drilled below the previously outlined RPA Inferred resource over a strike length of 400 m and to a maximum depth of 450 m below surface. All four holes intersected significant gold mineralisation in terms of widths and grades.
• 2018 to 2019: Negligible exploration groundwork was undertaken by Kilo due to financial constraints.
• In September 2019, Loncor initially acquired a 71.25 % interest in the Imbo Project, which was subsequently increased to 84.68 % in 2020.
• April 2020: An Inferred mineral resource of 2.19 Moz (28.97 Mt at 2.35 g/t Au) was determined, constrained within a US$1,500/oz pit shell at Adumbi.
• October 2020: Loncor commenced a core drilling programme at Adumbi to increase and upgrade mineral resources within a US$1,600/oz open-pit shell and at depth. A total of 24 core holes (10,071 m) were drilled during this programme as part of the PEA.

1.6 GEOLOGICAL SETTING AND GOLD MINERALISATION

The Adumbi gold deposit is found within the Ngayu Archean greenstone belt, one of a number of Archean-aged, granite-greenstone belts that extend from northern Tanzania into northeastern DRC and then into the Central African Republic. The greenstone belt terrain in northeastern DRC has a number of major gold belts including Moto (Kibali), Kilo, Mambasa, Ngayu and Isiro.

The majority of the gold occurrences within the Ngayu belt are located close to the contact of the Banded Ironstone Formation (BIF). Historically, only two deposits were exploited on any significant scale, namely Yindi and Adumbi. Styles of gold mineralisation within the Ngayu belt include shears within the BIF or on the BIF contacts, disseminated mineralisation, and shears within basalts and schists, resulting in discrete auriferous gold veins. Artisanal mining of weathered gold mineralisation preserved as elluvial or colluvial material is widespread throughout the belt.

Within the Imbo Project area, there is a strong association between gold mineralisation and the presence of the BIF, with the BIF constituting the host rock (e.g. Adumbi) or forming a significant part of the local stratigraphy in the Imbo Project area. The BIF forms both physical and chemical traps for mineralising hydrothermal fluids. The iron-rich BIF is a chemically reactive rock, the main interaction with hydrothermal fluids involving the reduction of magnetite to pyrite, resulting in the precipitation of gold. Mineralisation on the Imbo Project (PE9691) is known to occur at Bagbaie (referred to as Adumbi North), Adumbi, Kitenge, Manzako, Monde Arabe, Maiepunji and Vatican.

Adumbi is currently the most explored deposit within the Imbo Project. Adumbi forms a topographic high (Adumbi Hill) and incorporates the Canal prospect, which is the southeastern continuation of Adumbi. Based on examined drillholes, the rocks at Adumbi mainly comprise a subvertical sequence of metamorphosed clastic sediments (pelites, siltstones and greywacke) interbedded with units of BIF of varying width. The grade of metamorphism is probably lower greenschist facies, and the clastic units are petrographically classified as schists. Foliation is usually clearly defined in hand specimens although sedimentary features such as bedding are frequently preserved.

The Adumbi deposit displays five distinct geological domains with the BIF unit attaining a thickness of up to 130 m in the central part. There is a higher-grade zone of gold mineralisation termed the "replaced rock zone" (RP zone) associated with alteration and structural deformation that has completely destroyed the primary host lithological fabric. The RP zone occurs in the lower part of the Upper BIF package and in the Lower BIF package, and transgresses the Carbonaceous Marker, located between the Upper and Lower BIF packages, both along strike and down dip. The geological interpretation from the Loncor drill intersections demonstrates that the mineralised BIF increases in thickness with depth and thus confirms the existence of significant underground potential at Adumbi below the mineral resources within the open-pit shell.

The detailed logging of the mineralised cores indicated a direct relationship between gold values and the percentage of sulphide mineralisation and intensity of silicification. In general, pyrite is the dominant sulphide followed by pyrrhotite, then arsenopyrite. When pyrite and pyrrhotite are associated with arsenopyrite, the gold values are very significant, compared to when pyrite is associated with pyrrhotite only. Silica is associated with the highest degree of hydrothermal alteration within the zones and serves as a marker of mineralisation; however, without sulphides, the gold values are insignificant. Specks of visible gold are occasionally found, generally within fractures and are present in white to grey, glassy, weak to moderately brecciated quartz veins.

1.7 DEPOSIT TYPES

Gold deposits within the Imbo Project are associated with the globally important Neo-Archean orogenic gold deposits, examples of which are found in most Neo-Archean cratons around the world. Gold mineralisation is associated with the epigenetic mesothermal style of mineralisation. This style of mineralisation is typical of gold deposits in Neo-Archean greenstone terranes and is generally associated with regionally metamorphosed rocks that have experienced a long history of thermal and deformational events. These deposits are invariably structurally controlled.

Mineralisation in this environment is commonly of the fracture and vein type in brittle fracture to ductile dislocation zones. At the Adumbi deposit, the gold mineralisation is generally associated with quartz and quartz-carbonate-pyrite ± pyrrhotite ± arsenopyrite veins in a BIF horizon.

Examples of similar type BIF hosted gold deposits to Adumbi include Geita in Tanzania, Kibali in northeastern DRC, Tasiast in Mauritania, Homestake (U.S.A.), Lupin (Canada) and Moro Velho in Brazil.

1.8 EXPLORATION

The Imbo Project has been explored since the early 1900s by Belgian prospectors and more recently by Kilo and then Loncor. During the period 2010 to 2012, 44 trenches totalling 4,753 m were excavated over the Adumbi, Kitenge and Manzako targets. Accessible adits and underground workings were also geologically mapped and sampled at Adumbi; however, those at Kitenge and Manzako were not accessible. In all, a total of 907 m was sampled.

By November 2013, Kilo had completed 167 diamond drillholes totalling 35,400 m on the Imbo Project. Kilo outsourced sample preparation and analysis to independent assayers ALS Geochemistry (ALS). Drill core sample preparation was conducted at ALS Mwanza (Tanzania) from 2010 to August 2011, and then at an on-site purpose-built container facility supplied and managed by ALS Minerals. Analyses were undertaken by ALS Johannesburg (South Africa) and ALS Vancouver (Canada).

In February 2014, independent consultants RPA completed an independent NI 43-101 technical report on the Imbo Project and estimated 1.675 Moz (20.78 Mt grading 2.5 g/t Au) of Inferred Mineral Resources on the three separate deposits of Adumbi, Kitenge and Manzako.

RPA made several recommendations on Adumbi, which were addressed in subsequent exploration programmes. In September 2020, Loncor signed a management service agreement with Minecon to manage the infill and extension drilling programme on the Adumbi deposit.

1.9 DRILLING

The more recent drilling on the Imbo Project has been carried out by Kilo and then Loncor using contract drilling companies. The drilling programmes have been carried out in phases:

• 2010 to 2013 (Kilo)
• 2014 to 2017 (Kilo)
• 2020 to 2021 (Loncor)

As of November 15, 2013, Kilo had completed 167 diamond drillholes totalling 35,400 m on the Imbo Project. During the 2014 to 2017 drilling programme, 63 drillholes totalling 8,900 m were drilled.

The 2020 to 2021 drilling campaign was carried out by Orezone Drilling and a total of 24 holes totalling 10,071.44 m were drilled at Adumbi. The drill core was systematically logged and photographed before cutting and sampling. Reflex Act II orientation survey equipment was used for core orientation at every run of 3 m in competent material to aid in structural measurements. Structural measurements taken during the routine logging were from bedding, foliation, and quartz veins whereas structural measurements from lithological contacts, joints and shears were captured in detail under a separate geotechnical logging programme.

1.10 SAMPLE PREPARATION, ANALYSES AND SECURITY

During the 2014 to 2017 exploration activity, sample preparation and analyses were outsourced to the SGS laboratory in Mwanza, Tanzania (which is independent of Loncor). The SGS laboratory operates a quality system that is accredited in accordance with ISO/IEC 17025:2017 and SANAS (South African National Accreditation System). The SGS laboratory acted as an umpire laboratory even while ALS Chemex was the principal laboratory; hence, correlational studies between the two laboratories have been undertaken.

As part of the 2020 to 2021 drilling programme, Loncor started using the on-site sample preparation laboratory. This has helped with the enforcement of stricter QA/QC policing on the analytical laboratory. Laboratory procedures have been documented and reviewed by Minecon senior management, and internal quality control measures have been taken. Based on the documentation and discussions with the laboratory management, Minecon's senior management does not have any concerns regarding the sample preparation for all Loncor samples.

Sample pulps are sent for analyses to SGS Mwanza, which serves as the primary laboratory. SGS is internationally accredited and utilises conventional sample preparation, sample analysis and associated quality control protocols. Once the samples are received at the SGS laboratory, the samples go through checking and reconciliation procedures, followed by the SGS sample preparation procedure (SGS Code PRP87).

Drill core, trench, adit, pit, rock chip and channel samples were analysed for gold at the SGS Mwanza laboratory using fire assay (FA) with flame atomic absorption spectrometry (AAS) to measure the gold (SGS Code FAA505), and the analyses were carried out on 50 g aliquots. The effective range for FAA505 is 0.01 ppm Au to 100 ppm Au. In addition, check assays were carried out by the screen fire assay method to verify higher-grade sample assays obtained by fire assay. Internationally recognised standards and blanks were inserted at the Adumbi sample preparation laboratory as part of internal QA/QC analytical procedures.

1.11 MINERAL PROCESSING AND METALLURGICAL TESTING

PEA-level metallurgical test work (comminution and gold recovery) was performed by Maelgwyn Mineral Services Laboratory in Johannesburg on the Adumbi mineralised samples to evaluate the process route required to obtain the highest gold recoveries that can be achieved.

Table 1.1 shows a summary of the PEA Adumbi metallurgical test work results.

Table 1.1: Adumbi Metallurgical Test Work Results

The average diagnostic leach recovery for the fresh (sulphide) material was the weighted mean of the RP and BIF lithologies relative to the volume of their occurrence (20 % RP:80 % BIF) in the fresh material. Diagnostic leach recoveries of 80.10 % for RP and 92.37 % for BIF were realised for the fresh (sulphide) material.

Comminution results indicated that both the oxide and transition material are medium hard while the fresh material indicated that it is slightly hard. These results were taken into account in the design of the comminution flowsheet.

In order to optimise the gold recovery, further test work was conducted on the fresh and transition material whereby gravity was followed by flotation on the gravity tails. The results showed that most of the gold can be floated into float concentrates as summarised in Table 1.2.

Table 1.2: Flotation Results

The concentrate samples that were generated were not sufficient to enable further processing routes such as the following:

• Fine milling followed by leaching with oxygen addition
• Fine milling followed by partial oxidation using high shear reactors and leaching
• Albion process
• Pressure oxidation
• Bio leaching
• Roasting

These recovery processes will be investigated during the next phase of the project to optimise the gold recovery in the transition and fresh ore types.

1.12 MINERAL RESOURCES

During Q3 of 2021, Loncor commissioned Minecon to re-evaluate and quantify the exploration work including drilling undertaken during the period 2020 to 2021. This has resulted in Minecon updating the Mineral Resource estimate of Adumbi according to the guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014, as incorporated in NI 43-101. This follows a previous mineral resource estimate undertaken by Minecon in April 2021.

Compared to the Inferred Mineral Resource of 3.15 Moz of gold (41.316 Mt grading 2.37 g/t Au) outlined in April 2021 (see Loncor press release dated April 27, 2021), the additional drilling information and the increased gold price have contributed significantly to the increased mineral resources of the Adumbi deposit with improved confidence to 1.88 Moz (28.185 Mt grading 2.08 g/t Au) of gold in the Indicated category and 1.78 Moz (20.828 Mt grading 2.65 g/t Au) of gold in the Inferred category.

Table 1.3 summarises the Adumbi Indicated and Inferred Mineral Resources based on an in-situ block cut-off grade at a 0.52 g/t Au for oxide, 0.57 g/t Au for transition and 0.63 g/t Au for fresh material, and constrained within a US$1,600/oz optimised pit shell. A total of 84.68 % of the Adumbi mineral resources are attributable to Loncor via its 84.68 % interest in the Imbo Project.

Table 1.3: Adumbi Deposit Indicated and Inferred Mineral Resources
(Effective Date: November 17, 2021)

Table 1.4 summarises the Indicated and Inferred category mineral resources in terms of material type.

Table 1.4: Adumbi Mineral Resources by Material Type
(Effective Date: November 17, 2021)

1.13 MINERAL INVENTORY

The Mineral Inventory Statement uses the definitions and guidelines given in the CIM Definition Standards on Mineral Resources and Mineral Reserves and is reported in accordance with NI 43-101 requirements.

Table 1.4 shows a summary of the Adumbi Mineral Inventory for the various material types (oxide, transition and fresh) contained within the Adumbi practical pit designs.

The following summarises the pit optimisation assumptions and parameters used to constrain the depth extent of the geological model to generate the mineral inventory of the open pit for the Adumbi deposit:

• A gold price of US$1,600/oz
• A block size of 16 m × 16 m × 8 m
• A 32 m minimum mining width and a maximum of 4 m of internal waste was applied
• A mining dilution of 100 % of the tonnes at 95 % of the grade
• An ultimate slope angle of 45°
• An average mining cost of US$3.29/t mined
• Metallurgical recoveries of 91 % for oxide, 88 % for transition and 90 % for fresh
• An average general and administration (G&A) cost of US$4.20/t
• Mineral resources were estimated at a block cut-off grade of 0.52 g/t Au for oxide, 0.57 g/t Au for transition and 0.63 g/t Au for fresh materials, constrained by a US$1,600/oz optimised pit shell
• Transport of gold and refining costs equivalent to 4.5 % of the gold price

The results from the Adumbi Whittle pit optimisation for the gold price of US$1,600/oz allowed for the selection of the optimised final pit shell (Pit Shell 40) based on the maximum undiscounted cash flow for the practical pit design. The practical pit designs were prepared using the optimised pit shells as templates. The relevant Whittle pit shells were exported from the GEMS to Surpac software, where the practical pit designs were prepared. The practical pit design incorporates the ramps together with the appropriate inter-ramp slope angles. No practical pit design was prepared for the Final Pit; hence, the optimised pit shell (Pit 40) was used to define Cut 3 for the blocks to be scheduled.

The Qualified Person (QP) has performed an independent verification of the block model tonnage and grade, and in the QP's opinion, the process has been carried out to industry standards.

1.14 MINING METHODS

Over the life of mine (LOM) of Adumbi, a total of 49.77 Mt grading 2.17 g/t Au is expected to be mined from the open pit and delivered to the processing plant. In the QP's opinion, the parameters used in the Mineral Resource to Mineral Inventory conversion process are reasonable.

The scheduling process consists of developing a mine plan that is economically optimal using the inventory included in the practical pit designs and pit shell. The production schedule was based on a methodology of block selections from the block model inside the designed pits (see Figure 1.2).

Figure 1.2: Adumbi Open-Pit Design

The mining production schedule sequence is planned to mine the Cut 1 and Cut 2 pit designs from the beginning of Year 1 to get rapid access to the ore and manage the strip ratio. Mining of the Cut 3 pit shell starts from the beginning of Year 2. The Adumbi deposit is planned to be to provide a throughput of 5.0 Mt/a of ore to the processing plant (see Table 1.5). Adumbi has an average stripping ratio of 11:1, which is a significant contributing factor to operating costs.

Table 1.5: Mining, Processing and Gold Production Schedule over Adumbi's LOM

The equipment units and costs have been selected from major global manufacturers. Although quotes have not been specifically requested for this project, the capital and transportation costs have been derived from similar projects from the relevant equipment suppliers. Outputs have been derived from generic calculations.

The mining personnel include all the salaried staff working in the mine operations and mining engineering departments, and the operational labour required to operate drilling, blasting, loading, hauling and mine support activities.

Minecon has generated manpower and staffing requirements from first principles and with knowledge of similar operations in remote conditions. These requirements have been based on the mining operations being carried out by contract mining as opposed to owner mining.

1.15 RECOVERY METHODS

The Adumbi process plant has been designed to process 5 Mt/a.

The process plant was developed from the interpretation of the results of the PEA test work.

The interpretation of these metallurgical test work results and simulations of the comminution circuit conducted by Orway Mineral Consultants (OMC) led to the development of the process flowsheet, which includes the following:

• Single-stage crushing facility, utilising a primary crusher to produce a crushed product size suitable for semi-autogenous grinding (SAG) milling
• A crushed ore surge bin which, when full, allows crushed ore to be diverted to an emergency stockpile from which ore can be reclaimed by front-end loader (FEL) to feed the mill during the periods when the crushing circuit is offline
• Two-stage SAG and ball mill combination, operating in closed circuit with the cyclone cluster to produce the required size
• Additional pebble crushing system to crush pebbles from the SAG mill when treating transition and sulphide ores, i.e. the SABC circuit
• Gravity concentration and removal of coarse gold from the milling circuit recirculating load and the treatment of gravity concentrate by intensive cyanidation and electrowinning to recover gold to bullion
• CIL circuit incorporating 1 pre-leach tank and 11 CIL tanks containing carbon for gold adsorption 
• INCO air/SO₂ cyanide detoxification, arsenic precipitation and pumping of the detoxified tailings to the dam
• TSF and the return water pumping system
• 12 t acid wash, pressure Zadra elution circuit, electrowinning, carbon regeneration and gold smelting to recover gold from the loaded carbon to produce bullion
• Consumables and reagents
• Air and water services

Table 1.6 summarises the key process design criteria values which were utilised in the process design.

Table 1.6: Summary of Key Process Design Criteria

A simplified flow diagram depicting the unit operations incorporated in the selected process flowsheet is shown in Figure 1.3.

Figure 1.3: Proposed Process Plant Flowsheet

1.16 PROJECT INFRASTRUCTURE

The following existing and proposed project infrastructure will support the mining and plant operations:

• Existing infrastructure:

• Exploration camp
• Airstrip

• Proposed infrastructure:

• In-plant infrastructure:
  
  
  • Plant buildings
  • Plant reagents and consumables stores
    
    
• Other infrastructure:
  
  
  • Mining infrastructure
  • Access road to the project site
  • TSF
  • Water supply
  • Off-site power supply and distribution (hydroelectric power (HEP))
  • Diesel fuel storage and supply
  • Accommodation camps

A number of hydroelectric sites were identified close to Adumbi, and further studies are required to optimise the power generation concept for the operation. Loncor is already in discussion with potential power suppliers with experience in the DRC to project finance and build a hydroelectric facility at Adumbi and then have an offtake agreement with them.

Loncor has engaged with local contractors who have provided budget tenders for the plant buildings and accommodation camps. Further discussions will be held with these contractors to refine their quotes for the project. The local community will benefit from this initiative as it will provide them with employment and the development of skills.

Figure 1.4 indicates the layout of the existing and proposed infrastructure.

Figure 1.4: Layout of Existing and Proposed Infrastructure

1.17 MARKET STUDIES AND CONTRACTS

The financial evaluation and cut-off grade calculation for the Adumbi deposit and all the Mineral Inventory use a gold price of US$1,600/oz and an optimised pit design. This is in line with Loncor's corporate guidelines. A total royalty payable to the DRC government of 3.5 % of the gold revenue, inclusive of 4 % shipment fees, was used for the open-pit Mineral Inventory estimate. The study indicates that Loncor will pay a 30 % income tax to the DRC government. Depreciation for the economic model was set at 10 % on capital expenditure.

Adumbi is planned to produce 303,000 oz/a of gold contained in doré over a 10.3-year mine life. The combined gold and silver content is expected to be 98 % (the remaining 2 % is likely to consist of impurities such as copper, iron and zinc). The gold content is expected to account for approximately 95 % to 97 % of the precious metals content, with the remaining amount being silver content. No deleterious elements are indicated in the ore head grade assayed, and as such these are not expected to be in the doré.

Doré bars are planned to be cast in 804 oz (~25 kg) bricks with approximate dimensions of 190 mm length, 120 mm width and 80 mm height. Fifteen to twenty pours per month are planned, with the doré being transported weekly from the mine site to the export facilities. After weighing, sampling and assaying, the doré will be packed and secured in high-security tamper-evident carry boxes in the gold room in the presence of mine production and security personnel.

Industry-standard gold room and strong room facilities will be constructed on site to hold the doré until it is ready for export. Appropriate checks and balances, security cameras, alarms, insurance and security procedures will be implemented to cover the production and storage at the mine. Gold doré that will be produced on the mine will be shipped from site under secured conditions. Gold mines do not compete to sell their product given that the price is not controlled by the producers.

1.18 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT

The objectives of the environmental and social component of the Adumbi PEA were to evaluate the adequacy of the environmental and social studies undertaken to date and determine, at a screening level, the potential environmental and social issues associated with the proposed mine development. This included identifying key issues, fatal flaws, high-level environmental and social risks that may affect the project and require further investigation, and identifying costs for further environmental and social studies.

The material presented was to meet the requirements as per the DRC Code Minier or Mining Code, Law No. 007/2002 of July 11, 2002, as amended and completed by Law No. 18/001 of March 9, 2018. Information was obtained from the September 2021 site visit by Minecon's environmental consultant where an overview of the very limited environmental and social baseline data was assessed. Key legislation includes the 2006 Constitution of the Third Republic (The Constitution), the 1997 National Environmental Action Plan (NEAP) providing a framework for the management of the DRC's natural resources, as well as the Mining Code governing commercial and artisanal mining activities. The latter requires, inter alia, an Environmental and Social Impact Study (ESIS), a Mitigation and Rehabilitation Plan (MRP), and an Environmental and Social Management Plan of the Project (ESMPP). Mining Regulations (Decree No. 038/2003 of March 26, 2003, as amended and completed by Decree No. 18/024 of June 8, 2018) give effect to the Code in terms of environmental social obligations, public consultation and requirements for ESIS and ESMPP reports. The Framework Law on the Environment (Act No.11/009 of July 9, 2011) aims to define the protection of the environment and the direct management of natural resources, and to reduce pollution and serve as a basis for sectors impacting the environment.

Minecon's environmental assessment of the Imbo Project included knowledge from other recent operating gold mines and other development projects in eastern DRC. The key environmental and social issues identified during this initial screening study that have possible impacts included surface water, air quality, biodiversity, climate, infrastructure, safety and security, community development, resettlement, land acquisition, land replacement and compensation, health and safety, labour and artisanal mining, project engagement and policies. On the basis of the available information, screening studies undertaken did not identify any fatal flaws from an environmental and socio-economic perspective. Key issues were identified that would need to be investigated further during the pre-feasibility study (PFS) and feasibility study (FS) phases of the project.

Six artisanal mining villages identified within the project footprint have been assessed for social repositioning. The total population of these villages is estimated to be approximately 5,800. The legal situation regarding compliance with the DRC resettlement plan process, assessment and reporting requirements is unclear on the repositioning of artisanal mining huts and in other mine developments in DRC, artisanal miners were not compensated or resettled. Future studies (ESIS, ESMPP and MRP) will be undertaken to clarify this situation. However, Minecon employed a conservative approach in the estimation of the social repositioning of the six artisanal settlements that will be impacted by the project development. Minecon believes that if the livelihood restoration programmes are accepted for the repositioning of artisanal miners within the Adumbi mine footprint, the capital budget could be significantly lower than estimated in this PEA study.

Minecon recommended a number of environmental and social studies that should commence during the next PFS stage, including the following:

• Preparation of design criteria for monitoring ambient and workplace environmental conditions
• Preparation of a preliminary environmental impact assessment and preliminary environmental management plan
• Baseline data collection and preparation of an International Finance Corporation (IFC) compliant ESIS and ESMPP

1.19 CAPITAL AND OPERATING COSTS

1.19.1 Capital Cost (CAPEX) Summary

The estimated initial capital costs are based on the two options that were considered for the project, with the determining factor being the power-supply solution:

• Option 1: Diesel generation power plant

• Option 2: Hydroelectric power (HEP) hybrid option, constituting a diesel generation power plant, an HEP plant located at the Ngayu Confluence, a solar photovoltaic (PV) plant and a battery energy storage system (BESS)

The total estimated cost of bringing the project into production is US$392,010,000 for the diesel option and US$530,058,000 for the HEP hybrid option, which is inclusive of contingency and EPCM and is summarised in Table 1.7. This cost excludes any costs for feasibility studies scheduled prior to the start of basic engineering.

Table 1.7: CAPEX Summary

1.19.2 Operating Cost (OPEX) Summary

The purpose of this OPEX estimate is to provide the operating costs, and the associated G&A costs, that will be utilised for the economic analysis of the Adumbi deposit. Two OPEX options for the process plant were developed, using diesel and HEP hybrid options as the source of power.

The project's annual OPEX estimate for the LOM consists of the following:

• Mining operating costs estimated by Minecon
• Process plant operating costs estimated by SENET
• TSF operating costs estimated by Epoch
• Site G&A costs estimated by SENET
• Bullion transport, insurance and refining costs estimated by SENET

The overall OPEX summaries for Adumbi for both the diesel and the HEP hybrid options are given in Table 1.8 and Table 1.9, respectively.

Table 1.8: Overall Plant OPEX Summary for Diesel Option

Table 1.9: Overall Plant OPEX Summary for HEP Hybrid Option

1.20 ECONOMIC ANALYSIS

The Adumbi deposit financial analysis was prepared using the discounted cash flow model. Two economic models were run: one using diesel generating sets as a source of power and the other using the HEP hybrid option.

In preparing this model, several assumptions and material factors have been employed, as presented in Table 1.10.

Table 1.10: Financial Analysis Assumptions

The findings of the model are summarised in Table 1.11.

Table 1.11: Summary of Financial Findings

Table 1.12 and Table 1.13 detail the NPV and IRR sensitivities of the project to gold price

Table 1.12: Key Project Metric Sensitivity to Gold Price - Diesel Option

Table 1.13: Key Project Metric Sensitivity to Gold Price - HEP Hybrid Option

A sensitivity analysis was also undertaken on variable discount rates, gold feed grades, CAPEX and OPEX. The sensitivity analysis indicates that the project is most sensitive to gold price, followed by head grade, recovery, OPEX and then CAPEX.

1.21 ADJACENT PROPERTIES

In addition to the Imbo Project, there have been other mineral exploration activities in the Ngayu Greenstone Belt in recent times, and mineral resources have been defined within the belt. Since 2010, Loncor has been the largest permit holder in the Ngayu belt and has been exploring a number of prospects on its own since 2010 or in joint venture with Barrick Gold Congo SARL (formerly Randgold Resources Congo SARL) (Barrick Gold) from 2016 to 2021.

Loncor undertook exploration over priority target areas at Yindi, Makapela, Itali, Matete, Nagasa, Mondarabe, Anguluku and Adumbi West prospects with airborne magnetic and radiometric surveys, geological mapping, stream sediment sampling, soil and rock sampling, trenching, augering and ground geophysical surveys. During the period 2010 to 2013, Loncor undertook drilling programmes on a number of prospects in Ngayu and outlined mineral resources at Makapela in the west of the belt. At Makapela, a total of 56 core holes (18,091 m) were completed in the vicinity of the Main and North pits, and 15 holes (3,594 m) were drilled at nearby Sele Sele. In April 2013, Loncor announced mineral resource estimates for Makapela with an Indicated Mineral Resource of 0.61 Moz of gold (2.20 Mt grading at 8.66 g/t Au) and an Inferred Mineral Resource of 0.55 Moz of gold (3.22 Mt grading at 5.30 g/t Au). The deposit at Makapela is open down plunge and along strike. 

Besides Makapela, Loncor drilled other prospects, and significant intersections were obtained at Yindi (21.3 m grading 3.3 g/t Au, 24.0 m grading 1.5 g/t Au and 10.3 m grading 4.1 g/t Au) and at Itali (38.82 m at 2.66 g/t Au, 14.70 m at 1.68 g/t Au and 3.95 m at 19.5 g/t Au). Further exploration including drilling is warranted on other prospects within the Ngayu belt including Yambenda, Mokepa and Mongaliema.

In terms of producing gold mines, the Kibali Gold Mine, approximately 220 km northeast by air from the Imbo Project, is located within the Archean-aged Moto greenstone belt and commenced gold production in September 2013. The mine is owned by Kibali Goldmines SA (Kibali), which is a joint venture company with 45 % owned by Barrick Gold, 45 % by AngloGold Ashanti, and 10 % by Société Minière de Kilo-Moto (SOKIMO). Barrick Gold is the operator and in 2020, Kibali produced 808,134 oz of gold at an AISC of US$778/oz of gold. Kibali had Measured and Indicated Mineral Resources of 15.5 Moz of gold, Inferred Mineral Resources of 1.5 Moz and Proven and Probable ore reserves at the end of 2020 of 9.33 Moz (from Barrick Gold 2020 Annual Report). Kibali is Africa's largest producing gold mine.

1.22 INTERPRETATION AND CONCLUSIONS

1.22.1 Introduction

The Qualified Persons (QPs) note the following interpretations and conclusions in their respective areas of expertise, based on the review of the information available for this technical report.

1.22.2 Geology and Mineralisation

The Adumbi gold deposit is found within the Ngayu Archean greenstone belt, one of a number of Archean-aged, granite-greenstone belts that extend from northern Tanzania, into northeastern DRC and then into the Central African Republic. These gold belts contain a number of major gold mines including Kibali (DRC) and Geita, North Mara and Bulyanhulu (Tanzania). Gold deposits within these belts are associated with the globally important Neo-Archean orogenic gold deposits, examples of which are found in most Neo-Archean cratons around the world.

At the Adumbi deposit, the gold mineralisation is generally associated with quartz and quartz-carbonate-pyrite ± pyrrhotite ± arsenopyrite veins in a BIF unit. Examples of similar type BIF hosted gold deposits to Adumbi include the major Geita mine in Tanzania and Kibali mine in northeastern DRC.

1.22.3 Exploration, Drilling and Analytical Data Collection in Support of Mineral Resource Estimation

Systematic exploration has been conducted on the Adumbi deposit and Imbo Project area, including airborne LiDAR (light detection and ranging) and geophysical surveys, gridding, geological mapping, soil, trench, adit and auger sampling together with a number of core drilling programmes. Sampling, sample storage, security, sample preparation and geochemical analyses and verification are considered appropriate for the resource estimate at Adumbi.

1.22.4 Mineral Resource Methodology and Estimation

The Mineral Inventory Statement undertaken on the Adumbi deposit uses the definitions and guidelines given in the CIM Definition Standards on Mineral Resources and Mineral Reserves and is reported in accordance with NI 43-101 requirements. The Adumbi Mineral Inventory for the various material types (oxide, transition and fresh) contained within the Adumbi practical pit designs consists of 1.883 Moz (28.185 Mt grading 2.08 g/t Au) of Indicated mineral resources and 1.777 Moz (20.828 Mt grading 2.65 g/t Au) of Inferred mineral resources. The data used for the resource estimate and methods employed are considered reasonable for the level of study for this PEA by the QP.

1.22.5 Open-Pit Optimisation and Mineral Inventory

Pit optimisation assumptions and parameters used to constrain the depth extent of the geological model to generate the mineral inventory of the open pit for the Adumbi deposit are considered appropriate for its location and infrastructural setting with appropriate metallurgical recoveries used from the test work and a gold price of US$1,600/oz, which is below current levels.

In the QP's opinion, the parameters used in the Mineral Resource to Mineral Inventory conversion process are reasonable.

1.22.6 Mining Plan and Methods

Over the LOM of Adumbi, a total of 49.77 Mt grading 2.17 g/t Au is expected to be delivered to the processing plant. The scheduling process consisted of developing a mine plan that is economically optimal using the inventory included in the practical pit designs and pit shell. The production schedule was based on a methodology of block selections from the block model inside the pit outlines.

The size and type of mining equipment is consistent with the size of the project, and equipment units and costs have been selected from major mining manufacturers. Although quotes have not been specifically requested for this project, the capital and transportation costs have been derived from similar projects from the relevant equipment suppliers. Outputs have been derived from generic calculations. Contract mining and associated costs were estimated for Adumbi. The mine plan and estimated mine capital and operating costs are considered reasonable for this level of study.

1.22.7 Metallurgical Test Work and Process Recovery Plant

For the Adumbi deposit, representative core sample composites were selected for metallurgical test work from a range of depths and along strike and for the various mineralised host lithologies and styles of mineralisation. These representative samples were then submitted to an independent metallurgical laboratory for comminution and gold recovery test work to determine metallurgical recovery estimates using appropriate processing routes. The metallurgical test work undertaken is considered appropriate by the QP for the level of this study.

Results from the metallurgical test work programme were used by SENET to develop the process flowsheet and determine values to size and design the process plant. The processing plant is planned to process 49.77 Mt of material with an average head grade of 2.17 g/t Au and an average metallurgical recovery of 89.79 % to produce 3.12 Moz of gold. The processing plant has an annual throughput of 5.0 Mt. The process methods are conventional, with comminution and recovery processes widely used in the industry.

1.22.8 Infrastructure and Accessibility

The Adumbi deposit is situated in a remote part of the northeastern DRC, and infrastructure is limited. As part of the PEA study, a team of consulting engineers carried out site investigations to assess optimal positions for key infrastructure components of the mine site including potential tailings storage sites and HEP, diesel and PV power sources. Preliminary HEP sites were visited around Adumbi, indicating that a significant component for the estimated 32 MW requirement for the operation could be obtained from an HEP facility.

A number of potential access land routes were assessed from the major Port of Mombasa in Kenya via Uganda to Adumbi. The preferred route chosen is via Kenya and Uganda to Durba in DRC where Barrick Gold/AngloGold Ashanti's Kibali Gold Mine is situated and then via Isiro and Wamba to Adumbi. Raw water for the project will be abstracted from the rivers in the area, which have significant flow throughout the year.

In the QP's opinion, the estimated infrastructure CAPEX and OPEX are considered reasonable for this level of study.

1.22.9 Environmental and Social Considerations

The objectives of the environmental and social component of the Adumbi PEA were to evaluate the adequacy of the environmental and social studies undertaken to date and determine, at a screening level, the potential environmental and social issues associated with the proposed project development. This included identifying key issues, fatal flaws, high-level environmental and social risks that may affect the project and require further investigation, and identifying costs for further environmental and social studies.

The environmental assessment included knowledge from other recent operating gold mines and other development projects in eastern DRC. On the basis of the available information, screening studies undertaken did not identify any fatal flaws from an environmental and socio-economic perspective. Key issues were identified that would need to be investigated further during the PFS and FS phases of the project.

Six artisanal mining villages identified within the project footprint have been assessed for social repositioning. The total population of these villages is estimated to be approximately 5,800. The legal situation regarding compliance with the DRC resettlement plan process, assessment and reporting requirements is unclear on the repositioning of artisanal miners. Future studies (ESIS, ESMPP and MRP) will be undertaken to clarify this situation. However, a conservative approach has been taken in the estimation of costs for social repositioning of the artisanal settlements that will be impacted by the project development. It is believed that if the livelihood restoration programmes are accepted for the repositioning of artisanal miners within the Adumbi mine footprint, the capital included in the pre-production capital costs could be significantly lower than estimated in this PEA study.

1.22.10 Capital and Operating Cost Estimates

Pre-production capital costs are estimated for two power options: HEP hybrid and diesel only. For the HEP hybrid option, pre-production capital costs are estimated at US$530.05 million including US$74.42 million of contingencies while sustaining capital costs are estimated at US$304.96 million. Of the initial pre-production capital total, US$152.45 million is related to an HEP facility. However, Loncor is already in discussion with potential power suppliers with experience in the DRC to project finance and build a hydroelectric facility at Adumbi and then have an offtake agreement with Loncor to supply power for the mining operation. Such an agreement would improve the financial economics of the project by reducing the initial CAPEX for the HEP hybrid option.

For the diesel-only option, pre-production capital costs are estimated at US$392.01 million including US$62.96 million of contingencies. Sustaining capital for the diesel-only option is estimated at US$410.55 million.

The average LOM total cash costs for Adumbi are estimated at US$852/oz for the HEP hybrid option and US$908/oz for the diesel-only option, based on a diesel price of US$0.90/L. The AISC are estimated at US$950/oz for the HEP hybrid option and US$1,040/oz for the diesel-only option.

In the QP's opinion, the CAPEX and OPEX for Adumbi are considered reasonable for this level of study.

1.22.11 Economic Analysis

Cash flow valuation models for the Adumbi HEP hybrid and diesel-only options were developed by the QPs by taking into account estimated annual processed tonnages, grades and recoveries, metal prices, site operating and total cash costs including royalties and refining charges, and initial pre-production and sustaining CAPEX estimates. The financial assessment of Adumbi has been carried out on a "100 % equity" basis for both pre-tax and post-tax considerations. The financial analysis assumed a base gold price of US$1,600/oz of gold, a two-year construction period, and an operating mine life of 10.3 years.

The pre-tax net present value discounted at 5 % (NPV at 5 %) is US$895 million for the HEP hybrid option and US$843 million for the diesel-only option. The post-tax net present value discounted at 5 % (NPV at 5 %) is US$624 million for the HEP hybrid option and US$600 million for the diesel-only option. The sensitivity analysis indicates that the project is most sensitive to gold price, followed by head grade, recovery, OPEX and then CAPEX.

The QP considers that the results from this economic valuation have outlined a robust project worthy of further follow-up feasibility studies.

1.22.12 Risks and Uncertainties

Considering Adumbi is at an early stage of development, with PFS and FS required before the project can advance to the development stage, a number of risks have been outlined below:

• Risks to the resource estimate resulting from future drilling
• Risks related to the interpretations of mineralisation geometry and continuity in the mineralised zones
• Changes to geotechnical and hydrogeological assumptions
• Changes to power assumptions
• Changes to historical mining assumptions
• Future metallurgical test work yielding results that vary from the current test work undertaken with lower metallurgical recoveries
• Estimated capital and operating costs varying from the current estimates
• Changes to the assumed gold price of US$1,600/oz used in this PEA model
• Delays in progressing the project due to security problems
• Inability of Loncor to obtain sufficient financing to advance Adumbi to the PFS and FS stages. Also, any future mine construction at Adumbi would require significant financing. No assurance can be provided that such financing would be available to Loncor.

The future PFS and FS stages will aim to reduce the risks and uncertainties associated with future development of Adumbi.

1.23 RECOMMENDATIONS

Based on the positive results of this PEA, further work is warranted at Adumbi to advance the project up the value curve by completing follow up feasibility studies on the project. A number of opportunities have been identified to increase the mineral resources and enhance and increase the economics and financial returns at Adumbi. It is recommended that Loncor follow up on these opportunities, which include the following:

• Increasing and Upgrading Mineral Resources at Adumbi and within the Imbo Project

There is excellent exploration potential to further increase the mineral resources at Adumbi and within the Imbo Project. At Adumbi, the mineralised BIF host sequence increases in thickness below the open-pit shell, and wide-spaced drilling has already intersected grades and thicknesses amenable to underground mining. Further drilling is required to initially outline a significant underground Inferred Mineral Resource which can then be combined with the open-pit mineral resource so that studies can be undertaken for a combined open-pit and underground mining scenario at Adumbi. It is also recommended that infill drilling be undertaken in the deeper part of the open-pit shell to upgrade the current Inferred resources into the Indicated category. Besides increasing the resource base, a combined open-pit/underground project could increase grade throughput and reduce strip ratios with the higher grade, deeper mineral resources being mined more economically by underground mining methods, which could increase annual gold production and drive down operating costs. Minecon also recommends that further studies should be undertaken to assist in estimating historical depletions and depletions by recent artisanal mining.

Additional deposits and prospects occur close to Adumbi and have the potential to add mineral resources and feed to the Adumbi operation. Along trend from Adumbi, the Manzako and Kitenge deposits have Inferred Mineral Resources of 313,000 oz of gold (1.68 Mt grading 5.80 g/t Au) and remain open along strike and at depth. Further drilling is warranted on these two deposits

• Along the structural trend, 8 km to 13 km to the southeast across the Imbo River and within the Imbo Project, four prospects (Esio Wapi, Paradis, Museveni and Mungo Iko) with similar host lithologies to Adumbi have been outlined with soil, rock and trench geochemical sampling. An initial shallow, scout drilling programme should be undertaken on these four prospects to determine their mineral resource potential.

• Additional Mineral Resources within the Ngayu Greenstone Belt

Additional feed for the Adumbi processing plant could also come from Loncor's 100 % owned high-grade Makapela deposit, where Indicated Mineral Resources of 2.20 Mt grading 8.66 g/t Au (614,200 oz of gold) and Inferred Mineral Resources of 3.22 Mt grading 5.30 g/t Au (549,600 oz of gold) have been outlined to date with the high-grade material being able to be transported economically to Adumbi.

• Additional geotechnical investigations

Additional geotechnical investigations including drilling are recommended to optimise and potentially steepen pit slopes especially for the competent fresh BIF host rock which could reduce the strip ratio and thereby lower mining costs at Adumbi.

• Further metallurgical test work

Additional metallurgical test work, including additional flotation and petrographic studies, is recommended to confirm recoveries and reagent consumptions, and to optimise the flowsheet design.

• Concluding Hydroelectric Hybrid Power Agreement with Third Parties
  As described in this PEA study, hydroelectric sites have already been identified close to Adumbi, and further studies are required to optimise the power generation concept for the operation. Loncor is already in discussion with potential power suppliers with experience in the DRC to project finance and build a hydroelectric facility at Adumbi and then have an offtake agreement with them.
  

2 INTRODUCTION

Minecon Resources and Services Limited (Minecon) and New SENET (Pty) Ltd (SENET) were commissioned by Loncor Gold Inc. (Loncor) to prepare an independent National Instrument 43-101 (NI 43-101) Technical Report relating to the Preliminary Economic Assessment (PEA) of Loncor's Adumbi deposit within its 84.68 % owned Imbo Project, located in the northeastern part of the Democratic Republic of the Congo (DRC), as per the requirements of applicable Canadian securities laws.

Table 2.1 indicates the details of the Qualified Persons for this technical report and the sections that they have contributed to.

Table 2.1: Qualified Persons and Their Contributions

2.1 QUALIFICATIONS OF QUALIFIED PERSONS

The relevant sections of this NI 43-101 Technical Report were compiled by the Qualified Persons, as this term is defined in NI 43-101. The certificates of the Qualified Persons (QPs) are set out after the Date and Signature Page at the end of the report. A summary of their qualifications and responsible sections is given in Table 2.2.

Table 2.2: Summary of the Qualifications and Responsibilities of the QPs

SENET provided all the process engineering services and also managed the other consulting companies:

Minecon used the additional drilling data from the drilling completed since the previous resource estimates of April 2021 and completed the mining and environmental studies on the Adumbi deposit as part of the PEA.

The purpose of this report is to support the public disclosure of the PEA of the Adumbi deposit. This report is intended to comply with the requirements of NI 43-101, including Form 43-101F1.

Loncor is a Canadian gold exploration company with a substantial footprint in the DRC. Loncor's shares trade on the Toronto Stock Exchange. This report will be publicly filed by Loncor on SEDAR and EDGAR and may also be filed on Loncor's website.

2.2 TERMS OF REFERENCE AND PURPOSE

This technical report describes the Adumbi deposit (as well as other properties within the Imbo Project) in terms of its historical and recent exploration (infill and extension drilling), and summarises the results of the PEA completed on the Adumbi deposit. The resource modelling and estimations were restricted to the Adumbi deposit due to the significant implications of the drilling work carried out on the mineral resources of Adumbi. The economic assessment was performed by SENET and Minecon during the preparation of this report. The effective date of this report is December 15, 2021.

Loncor is a Canadian gold exploration company focused on the Ngayu Greenstone Belt in the DRC. The Loncor team has over two decades of experience of operating in the DRC. Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base. The area is 220 km southwest of the Kibali Gold Mine, which is operated by Barrick Gold (Congo) SARL (Barrick). In 2020, Kibali produced 808,134 oz of gold at all-in sustaining costs of US$778/oz. 

Resolute Mining Limited (ASX/LSE: RSG) owns 23 % of the outstanding shares of Loncor and holds a pre-emptive right to maintain its pro rata equity ownership interest in Loncor following the completion by Loncor of any proposed equity offering.

The Imbo Project, in which the Adumbi and the two neighbouring deposits of Kitenge and Manzako are situated, is located within the Mambasa District of the Ituri Province in the northeastern region of the DRC, 250 km west of Bunia, the capital of the Ituri Province, and 225 km northwest of the city of Beni. The Adumbi base camp is located at latitude 1° 43' 58.76" N and longitude 27° 52' 4.01" E or 596,522 m E and 191,570 m N (WGS 84 UTM Zone 35N). Loncor holds an 84.68 % interest in the Imbo Project, and the balance is held by minority shareholders, including a 10 % free-carried interest owned by the DRC Government.

2.3 SOURCES OF INFORMATION

Minecon and SENET have relied upon various reports and information provided by Loncor and other experts. The document references are summarised in Section 27 and include internal documents compiled by Loncor and the previous owner of the Imbo Project, Kilo Goldmines Ltd (Kilo) . Minecon particularly relied on the Roscoe Postle Associates Inc. (RPA) NI 43-101 Technical report of February 28, 2014, including its recommendations as well as technical information provided by Loncor on all the work carried out between 2014 to date by Loncor and previously by Kilo. In particular, the results of Loncor's 2020 to 2021 drilling programme have been utilised in developing the new estimates. Additionally, digital maps and information available in the public domain, such as company websites and public library documents, have been utilised.

Loncor openly provided a hard drive containing all material information which, to the best of its knowledge and understanding, is complete, accurate and true, having made due enquiry. Neither Minecon nor SENET is aware of any current or pending litigation or liabilities attached to the Imbo Project.

2.4 SCOPE OF THE OPINION

This report has been compiled to incorporate all currently available and material information that will enable the reader to make a reasoned and balanced judgement regarding the PEA of the Adumbi deposit.

The Qualified Persons involved in the preparation of this report are members in good standing with their respective professional institutions.

This work has been based upon technical information which has been supplied by Loncor and its contractors, and Minecon and SENET carried out independent due diligence on the information, where possible.

Minecon and SENET confirm that, to the best of their knowledge and having taken all reasonable care to ensure that such is the case, the information contained in this report is in accordance with the facts and contains no omission likely to affect its import.

The Mineral Resource estimates on Kitenge and Manzako were prepared by RPA in 2014. These estimates have not been updated.

2.5 QUALIFIED PERSONS DECLARATION AND STATEMENT OF INDEPENDENCE

This report has been compiled by Minecon and SENET. Minecon and SENET have extensive experience in preparing technical, competent/qualified persons', technical and valuation reports for mining and exploration companies. The information in this report is based on information compiled by the Qualified Persons: Daniel Bansah, Christian Bawah and Philemon Bundo. The Qualified Persons' certificates are set out after the Date and Signature Page at the end of the report. The Qualified Persons have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Qualified Person, as defined in NI 43-101.

Neither Minecon nor SENET nor their respective staff or consulting engineers have, or have had, any interest in any of Loncor's projects capable of affecting their ability to give an unbiased opinion and have not received, and will not receive, any pecuniary or other benefits in connection with this assignment, other than normal geological, mining and environmental consulting fees. Neither Minecon nor SENET nor any of their respective personnel involved in the preparation of this report have any material interest in Loncor or in any of the properties described herein.

Minecon and SENET were remunerated a fixed fee amount for the preparation of this report, with no part of their fees contingent on the conclusions reached or the content of this report. Except for these fees, neither Minecon nor SENET has received, and nor will they receive, any pecuniary or other benefit whether direct or indirect for or in connection with the preparation of this report.

2.6 PERSONAL INSPECTION

A site visit was carried out by Daniel Bansah, Chairman and Managing Director of Minecon, in September 2021, together with Minecon's environmental and social scientists. During the visit, Daniel spent time reviewing all the field geological activities undertaken on the Adumbi deposit, the geological logging and the sampling procedures, including the sampling preparation protocols carried out in the sample preparation laboratory. Christian Bawah was also on site for a period of 8 weeks from October to November 2020. Christian was accompanied by Peter Kersi, a contributing engineer to this report. The following Minecon geologists and technical personnel: Bel Mapendo, chief geologist, Patient Zamakulu and Jean-Alain Chish, both senior geologists, and three of Minecon's laboratory technical and operational staff were on site for a period of 16 weeks, providing technical supervision and management of the 2020 to 2021 drilling programme and the management of the on-site sample preparation facility.

Tasks undertaken during the visit included a technical inspection of the site (proposed waste dump and other infrastructural sites including but not limited to six artisanal villages that could be impacted by the mine infrastructure), an inspection of the old drill core and a review of all the technical work carried out. In addition, the team reviewed the sampling and drill site protocols and security including QA/QC issues, and the on-site sample preparation facility.

Gordon France, Minecon's Database, GIS and IT Manager visited the Adumbi site for seven weeks from June to July 2021. The scope of work during the visit was to ensure that the Adumbi database was migrated onto a centralised data repository (the Century Database System).

The Minecon team worked in collaboration with Fabrice Matheys, Loncor's General Manager and geologist with +25 years of experience in the DRC and the African region.

3 RELIANCE ON OTHER EXPERTS

Minecon and SENET have prepared this technical report and, in so doing, have utilised information provided by Loncor and its contractors as to its operational methods, conclusions, opinions, estimates and forecasts. Where possible, this information has been reviewed by independent sources with due enquiry in terms of all material issues that are a prerequisite to comply with NI 43-101.

The authors of this report are not qualified to provide extensive commentary on legal matters associated with Loncor's right to the Imbo Project. The authors have therefore relied on the legal opinion of MBM-Conseil of Kinshasa Gombe, DRC, dated June 8, 2020, which has provided certain information in preparing this report which, to the best of Loncor's knowledge and understanding, is complete, accurate and true, and Loncor acknowledges that Minecon and SENET have relied on such information, in preparing this report. No warranty or guarantee, be it express or implied, is made by the authors with respect to the completeness or accuracy of the said legal matters.

Except as provided under applicable Canadian and US securities laws, any use of this report by any third party is at that party's sole risk.

4 PROPERTY DESCRIPTION AND LOCATION

4.1 LOCATION

The 122 km² Imbo Project is located within the Mambasa Territory in the Ituri Province in the northeastern region of the DRC, 325 km northeast of the main cities of Kisangani and 225 km northwest of Beni (see Figure 4.1). The Imbo Project is found within Imbo Exploitation Permit PE 9691, which is valid until February 2039.

Bunia is the provincial capital of the Ituri Province and is situated approximately 260 km east by air from the Imbo Project. The village of Nia-Nia is approximately halfway between Beni and Kisangani and situated approximately 45 km south, by road, of the Adumbi base camp. The Adumbi base camp is located at latitude 1° 43' 58.76" N and longitude 27° 52' 4 01" E or 596,522 m E and 191,570 m N in WGS 84 UTM Zone 35N (see Figure 4.2 and Figure 4.3).

Figure 4.1: Locality Map of the Imbo Project in Africa

Figure 4.2: Location of Imbo Project within the DRC

Figure 4.3: Locality Map of Imbo Project

4.2 PROPERTY OWNERSHIP

Loncor is a publicly listed Canadian company which owns 84.68 % of the Imbo Exploitation Permit through its subsidiary Adumbi Mining S.A. (Adumbi Holdco). The minority shareholders hold 15.32 % (including the 10 % free-carried interest owned by the DRC Government).

4.3 LAND TENURE

In accordance with the Mining Regulations of the DRC, the surface area of an exploitation permit is measured in a unit known as a "carré" (in English, a square), which is defined as an area that measures 30 s on each side. The sides must be oriented north-south and east-west. A square carré has an area of 84.955 ha or 0.84955 km². The word "quadrangle" is used as the unofficial English translation of the word carré.

4.4 IMBO EXPLOITATION PERMIT

Minecon has relied on a letter on land tenure, licences and permits dated June 8, 2020, from MBM-Conseil, one of the leading firms practising mining law in the DRC.

The Imbo Exploitation Licence (PE 9691) lies between X 594500 and 596000 and Y 191500 and 193100 (WGS 84 Zone 35N UTM coordinates). Table 4.1 lists the carré corners for the Imbo Exploitation Permit in longitude and latitude.

Table 4.1: Coordinates of the Imbo Exploitation Permit (PE9691)

The Imbo Licence covers a total area of 122 km2 (12,234 ha) and consists of 144 carrés.

The deposits and prospects on the Imbo Exploitation Permit, from northwest to southeast as shown in Figure 4.4, include the following:

• Adumbi Deposit, including Canal
• Bagbaie (previously known as Adumbi North) Prospect
• Adumbi West Prospect
• Amuango Prospect
• Monde Arabe Prospect

• Vatican Prospect
• Kitenge Deposit, including Senegal
• Manzako Deposit, including Lion
• Imbo East (previously termed Maiepunji) Prospects, including Paradis, Museveni, Esio Wapi and Mungo Iko

Adumbi is currently the most explored deposit within the Imbo Permit. The Kitenge deposit is located approximately 4 km southeast from Adumbi. The Senegal prospect has been incorporated into the Kitenge deposit as it is the probable fault-offset northwest continuation along strike of Kitenge.

Manzako is located 1.5 km northeast of Kitenge. The previously named Lion prospect is now considered to be the southeastern portion of Manzako which incorporates a series of sub parallel shear structures.

The Monde Arabe and Vatican prospects are located east of Adumbi. Amuango is situated west of Adumbi, and the Imbo East prospects are located approximately 5 km southeast of Manzako.

Figure 4.4: Imbo Project Simplified Geology

4.5 PERMITS

Adumbi Holdco does not have a work permit précis; however, they have provided Minecon with a copy of a DRC "attestation de travail", which is a document confirming that the Imbo Exploitation Permit is in order.

4.6 ENVIRONMENTAL LIABILITIES AND PERMITTING

DRC law imposes environmental obligations on an exploitation permit holder which must be performed during the exploitation of the mine. Pursuant to its decision dated April 2, 2013, the Directorate of Environment has approved the Environmental Impact Study (EIS) and Environmental Management Plan of the Project (EMPP). Furthermore, the Mitigation and Rehabilitation Plan (MRP) was approved on April 2, 2013.

4.7 SURFACE USAGE/LAND LEASE

Article 64 of the DRC 2002 Mining Code provides that the exploitation permit entitles its holder to the exclusive right to carry out, within the perimeter over which it has been granted, and during its term of validity, exploration, development, construction and exploitation works in connection with the mineral substances for which the permit has been granted, and associated substances if the holder has applied for an extension. According to Article 280 of the Mining Code, the holder or lessee must compensate for the damages caused by the works it carries out in connection with its mining activities, even if they are authorised.

In order to maintain the validity of the permit, the holder must pay the annual surface fees per quadrangle for each subsequent year before the end of the first quarter of the calendar year. The surface annual fees for the Imbo Permit have been paid for the year 2021.

Minecon is not aware of any environmental liabilities on the property. Loncor has all the required licences and permits to conduct the proposed work on the property. Minecon is not aware of any other significant factors, other than potential political and related safety risks described in Section 24 that may affect access, title, or the right or ability to perform the proposed work programme on the property.

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 ACCESSIBILITY

The Imbo Project is located within the Mambasa Territory in the Ituri Province of the DRC. Bunia is the provincial capital of the Ituri Province and is situated approximately 260 km east by air from the Imbo Project. Located approximately 225 km by air southeast of the property, Beni is the nearest major population centre to the Imbo Project and has a population of approximately 230,000. Loncor maintains an administrative office in Beni. The city is a United Nations MONUSCO base and has a lateritic airstrip with scheduled internal flights to other towns such as Goma, Bunia, Isiro, Kisangani and Kinshasa. The Isiro airstrip is approximately 200 km by lateritic road to the Imbo Project. From Beni, the Imbo Project is accessible via 322 km of lateritic road to Nia-Nia, then to Village 47 (47 km north of Nia-Nia) and then 7 km via lateritic roads to the Adumbi base camp. On the property, access is via trails using Mine Mule utility and four-wheel drive vehicles in addition to motorcycles. Away from areas of habitation and artisanal activity, access is on foot through the dense forest growth.

The nearest international airport is located at Entebbe in western Uganda and linked by 440 km of paved road to the Kasindi Uganda-DRC border, followed by 80 km of unpaved lateritic roads to Beni. Entebbe has international scheduled flights to South Africa, Europe and Asia and is also linked to other African countries as well as the in-country towns of Kinshasa and Lubumbashi via Nairobi (Kenya). Ethiopian airlines have direct flights between Addis-Ababa and Goma. In addition, Entebbe is linked to the DRC border points of Arua, Mahagi and Kasindi by paved highway from the deep seaport of Mombasa (Kenya). Due to security issues and the poorly maintained roads in the DRC, the preferred road from Kampala to access the property is via Arua/Aru to Doko (Kibali Mine) to Faradje to Dungu and Isiro. Rail links between Mombasa and Kasese (Uganda) are being upgraded to standard gauge.

At Nia-Nia, 52 km southwest of the Imbo Project, there is a 1,200 m long grass-covered, laterite base airstrip which can accommodate propeller-driven, charter aircraft including medium-sized cargo planes.

The large operating gold mine of Kibali is located approximately 220 km by air northeast of the Imbo Project (see Figure 5.1).

Figure 5.1: Accessibility and Locality Map

5.2 CLIMATE

The climate is typically tropical and is characterised by a long, wet season and a short dry season of up to three months from mid-December to mid-March. The average annual rainfall is approximately 2,000 mm to 2,500 mm, with the highest rainfall generally occurring in October. Even in the driest months, rainfall totals more than 50 mm. Temperatures are also uniformly high throughout the year, and there is little diurnal variability, varying between 19 °C and 23 °C, with daily lows and highs of 16 °C and 33 °C, respectively. Humidity is high throughout the year (75 % to 99 %).

The climate facilitates exploration and mining activities all year round although exploration is more challenging during the wettest months as roads can deteriorate as they are poorly maintained. Torrential downpours of rain are experienced; however, they are not generally long lasting. The prevailing wind direction is from the southeast, with the maximum wind velocity and average daily wind velocities being relatively low, approximately 12 m/s and 0.5 m/s, respectively. Notwithstanding, the area can be hit with severe storms. Climatic conditions have generally not affected exploration activities.

5.3 LOCAL RESOURCES

The land around the Imbo Project is mainly equatorial rainforest, with very tall trees and grass. A few small villages exist around the project area. Some wild animals exist in and around the project area, but most have been hunted out by the local population. Natural water sources are abundant. Recent water wells drilled in the community and inside the Adumbi base camp have produced high yields, confirming the groundwater potential in the project area. The closest hydroelectric power station is situated near Kisangani, together with hydroelectric stations supplying power to Barrick/AngloGold Ashanti's Kibali mine. Isiro and Beni are potential sources of skilled manpower, but there is sufficient local unskilled manpower in the surroundings of Adumbi.

Regional migration from the colonial period has resulted in an amalgam of people from different ethnic Bantu groups, along with indigenous populations of pygmies, residing in areas immediately adjacent to and along key transit routes to the Imbo Project.

Within the immediate area of the property, there are several small villages that generally consist of fewer than 300 residents. The estimated total population within 10 km of the surrounding area is approximately 8,500 who rely on subsistence farming, organised artisanal mining, and harvesting of wood. These villages are accessed by motorcycle, bicycle and on foot via unmaintained roads and trails. The nearest community to the Adumbi base camp is the Adumbi village. In general, the project enjoys the support of local communities.

Exploration supplies are generally sourced within the country or further afield in Uganda, Kenya, Tanzania or South Africa. Wherever possible, food and consumables are locally sourced. Manpower at the Adumbi base camp is sourced from the local area. Technical manpower consists of senior staff expatriates supplied by Minecon in addition to Congolese staff. Security is maintained by a private security agency as well as contracted posted DRC police officers.

There is a significant local labour pool available for training and recruitment for any envisioned mining operation. The local area would however not be capable of supplying sufficient materials other than timber to support any potential mine-site infrastructure. Although some main roads dissect the area, upgraded and additional access roads, including bridges, will be required for any potential large-scale mining operations.

There is no electrical distribution system within the local area, and diesel generators and solar power are relied upon. There are a number of potential locations for hydroelectric development located within the Imbo Project area. In September 2021, Knight Piésold carried out an orientation visit to the sites, and based on a positive outlook, they have recommended detailed site investigation studies.

At the time of Minecon's site visit in September 2021, infrastructure at the Adumbi base camp included the following:

• A fenced and gated compound that is patrolled by security and covers an area of approximately 8.5 ha
• A helicopter landing pad and privately operated weather station
• A brick-constructed administrative office building
• A wood-constructed first-aid post
• A brick-constructed kitchen and mess hall
• A brick-constructed washroom and shower facility
• Two private brick-constructed units for accommodations for nine people
• Private tented bedroom accommodations on concrete pads

• An outdoor recreational area with barbecue and satellite television
• Security office and camp support staff accommodation
• Gated and fenced core processing area consisting of the following:

• Brick-constructed exploration office
• Outdoor roofed open core logging areas
• Outdoor roofed open core sawing area
• Container storage for pulps and duplicates
• Core storage racks

• Gated and fenced sample preparation facility
• Brick-constructed office and storerooms for drillers

The power supply at the site is provided by diesel generators with solar power also used for lighting. Water is taken from a natural spring located just outside the camp boundary. For any future development activities, it will be necessary to build all-weather access roads and bridges as well as infrastructure for sufficient power and water supplies. The Imbo Project surface rights allow sufficient areas for potential processing plant sites, tailings storage areas, and waste disposal areas.

5.4 PHYSIOGRAPHY

The Imbo Project is located in the Ituri tropical rainforest within the upper reaches of the Congo River Basin. The project area topographically consists of an undulating terrain that varies from approximately 600 m above sea level to approximately 800 m above sea level. Most of the landscape is covered with dense evergreen forests with a closed canopy; however, the hills tend to have relatively steep slopes, and the valley floors within the areas of the linear hills are relatively narrow. In most places, the overburden (in general less than 1 m to approximately 50 m in thickness) is oxidised sandy clay or sandy clay loam, ranging in colour from reddish brown through ochre to yellowish brown. The soils are acidic in nature, and the layer of humus is thin.

The property is drained by numerous creeks and streams. Almost all the landscape belongs to the Congo Basin and is covered with a dense network of permanent watercourses which flow into the Upper Ituri and its main tributaries: the Epulu, Nepoko, Nduye, Lenda, Ebiena, and Ngayu rivers.

The Adumbi deposit is well situated for potential mining development as it is located on a topographical high amenable to low strip ratios for initial mining access. The Kitenge and Manzako deposits are located in areas of less relief.

6 HISTORY

This section summarises the work completed on the Imbo licence area and in particular the drilling activities completed on the Adumbi deposit since the last update. The history of past exploration activity on the Imbo Project was originally summarised in the RPA NI 43-101 technical report entitled "Technical Report on the Somituri Project, Imbo Licence, Democratic Republic of the Congo" and dated February 28, 2014 (available from SEDAR at www.sedar.com).

Kilo contracted the Royal Museum for Central Africa (RMCA) in December 2006 to carry out a compilation of the RMCA archives on gold in the region of the Adumbi Project in the DRC. The historical exploration and historical gold production on the Imbo Project area outlined below is therefore based on the 2007 RMCA compiled report (RMCA, 2007). Most of the data available to the RMCA was from prior to the 1960 independence of the DRC.

6.1 PRIOR OWNERSHIP

The mining rights for the mineral concessions in the Imbo Project area were held by the Société Internationale Forestière et Minière du Congo (FORMINIÈRE or FRM) from the 1920s to the late 1950s. The colonial state was co-owner of a 50 % stake in FRM, with the remainder held by American interests. The Société Minière de la Tele (SMT), a subsidiary of FRM, oversaw development and exploitation. Following political independence in 1960, ownership changed hands multiple times. A Zairian company, Zafrimines, held the property licences from April 17, 1987. In 1997, Rhodes Mining NL of Australia entered a joint venture agreement with Busico of Uganda (20 %) and the DRC (20 %) and held the property licences from May 17, 1997, until August 2, 1998, when Kilo acquired the property.

6.2 EXPLORATION HISTORY

Belgian prospectors were the first to discover gold on the Imbo Project in the early 1900s, with gold production focusing on alluvial deposits until the late 1930s. Primary gold mineralisation was later discovered in the bedrock of the alluvial zones and was exploited in shallow pits and trenches. This was later followed by mining from deep trenches and underground galleries. From the mid-1970s to mid-1980s, the French Geological Survey (BRGM) undertook geological investigations of the Imbo Project area. Artisanal miners in organised groups in recent years have been exploiting alluvial and eluvial deposits, as well as oxidised mineralisation from deep trenches (up to 10 m), and the underground sill drifts and pillars at Adumbi.

Highlights of the reported historical exploration include the following:

• 1925: FRM completed the evaluation of interesting sites, and SMT was granted the rights for exploitation. It is reported that, during the Belgian exploitation, no geological maps were produced, and the operators mainly looked for mineralisation in quartz veins. Shallow exploration shafts or pits were systematically sited along the veins to facilitate delineation of the mineralisation.
• 1948: Manzako surface trenches and underground exploration discovered mineralised veins. It is reported that underground exploration drifts were driven at levels of −11 m, −16 m, −30 m and −40 m below surface. Exploration on the −16 m level encountered generally low average grades with local high grades of 202.0 g/t Au (30 cm quartz) and 47.9 g/t Au (20 cm quartz and schists).

• 1940 to 1950: SMT conducted extensive surface and underground exploration in the Adumbi Hill area. BHP (1989) reports that trenching was undertaken on the surface and that adits, tunnels, and crosscuts were developed on three levels underground (the 721, 771, and 821 levels). Channel sampling was undertaken at 1 m intervals.
• 1973 to 1975: BRGM's Northern Zaire Project studied the geology of the area in detail. In 1975, BRGM conducted stream sediment and alluvial prospecting and produced a summary report. Arsenic anomalies were found to surround the historical mined areas, especially around Kitenge. BRGM noted that the quartz veins were irregular, erratically distributed, and returned low grades of mineralisation.
• 1980 to 1981: BRGM mapped and sampled the Adumbi and Bagbaie deposits on surface and in the historical underground openings. BRGM also drilled three holes at Adumbi and confirmed that (i) mineralisation extended at depth below the water table, (ii) other mineralised zones, parallel to the main one, also existed, and (iii) gold at depth was associated with sulphides.
• 1984: BRGM completed an assessment of the mineral potential at Adumbi.
• 1988: Bugeco International (Bugeco) produced a report on the property entitled "Gold Potential in the Ngayu Mining District Haut Zaire: the Adumbi and Yindi Old Mines".
• 1989: BHP Utah Minerals International carried out a property review of Kitenge and Adumbi.
• 1990: Genmin of South Africa carried out a property review of Kitenge and Adumbi.
• 2009: Kilo acquired the property and carried out extensive exploration activities including major drilling campaigns.
• By November 2013, Kilo had completed 167 diamond drill holes totalling 35,400 m on the Imbo Project.
• 2014: RPA completed technical studies and made various technical recommendations to be executed by Kilo.
• 2014 to 2017: Kilo completed 63 drillholes totalling approximately 8,900 m. A drilling programme was planned to test gold-in-soil and magnetic anomalies at the Adumbi South, Adumbi West and Kitenge Extension targets. This drilling programme was carried out by Orezone Drilling SARL based in Watsa in the DRC.
• 2017: RPA recommended additional drilling at Adumbi to test the down dip/plunge extent of the mineralisation. In 2017, four deeper core holes were drilled below the previously outlined RPA Inferred Resource over a strike length of 400 m and to a maximum depth of 450 m below surface. All four holes intersected significant gold mineralisation in terms of widths and grades.
• 2018 to 2019: Negligible exploration groundwork was undertaken by Kilo due to financial constraints.
• In September 2019, Loncor initially acquired a 71.25 % interest in the Imbo Project, which was subsequently increased to 84.68 % in 2020.
• In Q1 2020, Loncor commissioned independent consultants Minecon Resources and Services Limited (Minecon) to review, assess and quantify the 2017 exploration results.

• Q3 2020: Loncor engaged Minecon to manage its 12 deep hole 7,000 m drilling programme on the Adumbi deposit.

6.3 DEVELOPMENT AND PRODUCTION HISTORY

The first gold discoveries by Belgian prospectors on the Imbo Project occurred in the early 1900s, and early gold production was focused on alluvial deposits until the late 1930s. Gold was discovered in the bedrock of the alluvial zones, and these eluvial deposits were exploited in shallow pits and trenches. Primary gold deposits were later mined in deep trenches and underground galleries.

Kilo, via its agreement with Somituri SPRL, was granted the exploration licences for the project area in February 2009, and in September 2019, Loncor acquired Kilo.

Commercial alluvial gold production on the Imbo Project was undertaken from 1927 to 1951 on the Amuango River. The Amuango River covers the drainage basin from the west side of Adumbi to the area of Bagbaie, located north of Adumbi. Eluvial gold was also exploited over Adumbi Hill, and Kilo believes that this was also considered part of Amuango. The alluvial M'Boro-Adumbi and Amuango exploitations were made in the hydrographical system on the slopes of a ridge of which Adumbi Hill is the summit. A total of 83,000 oz (2.581 t) of gold were exploited during the period (see Table 6.1).

Table 6.1: Summary of Imbo Project Historical Alluvial Gold Production (1927 to 1951)

From 1938 to 1955, surface and underground mining was also carried out on the Kitenge-Maiepunji and Adumbi mines. When underground mining began in 1943, a processing facility was built, "Usine de Kitenge", and commissioned in 1944. By the early 1950s, production had declined rapidly at Kitenge-Maiepunji due to the lack of defined mineral reserves. By 1955, production had declined at the Adumbi mine due to metallurgical challenges, the depth of the mine coupled with lack of energy for milling operations, and poor recovery in the amalgamation mills resulting in exorbitant processing costs. It is reported that a total of 86,400 oz (2.688 t) of gold was exploited at the Kitenge-Maiepunji mines between 1938 and 1955 (see Table 6.2). In addition, 177,500 oz (5.520 t) of gold was exploited from the surface and underground workings of the Adumbi mine between 1952 and 1959 (see Table 6.3). It is reported that Adumbi-Bagbaie closed in 1959, prior to the political independence. Recent exploitation has been carried out by artisanal mining operations, which have mined and recovered gold from most of the easily accessible processable gold.

Table 6.2: Summary of Kitenge-Maiepunji Mines Historical Gold Production
(1938 to 1955)

Table 6.3: Summary of Adumbi Mine Historical Gold Production (1952 to 1959)

It is noted in historical documentation that there was a significant drop in production from 1955 as a result of processing only veins coupled with metallurgical challenges (non-amalgamable gold in less altered rocks). BRGM also reported that the refractory gold content in tailings increased with the mining depth, which corresponds with the reported increasing tailings grade (from 2.3 g/t Au in 1954 to 5.7 g/t Au in 1957). BRGM reported that Adumbi-Bagbaie closed in 1959, just prior to political independence, due to lack of energy for milling operations, exorbitant processing costs, and poor recovery in the amalgamation mills.

The old Belgian workings at Manzako were extended to 2.2 km following field activities. Thus, the northern continuation of the workings was extended by 600 m to the northwest of Drillhole SMDD0002. The old workings indicate the presence of multiple parallel mineralised zones, which were exploited by the Belgians and more recently by artisanal miners. In the southeast of the deposit, the mineralised zones are between 80 m and 150 m apart; however, in the northwest (based on the evidence of the old workings), they appear to be only 20 m apart.

The Kitenge old workings focused on shear zone hosted auriferous quartz vein(s) approximately 1 m to 2 m wide.

6.4 HISTORICAL RESOURCE ESTIMATES

In a 1984 study, BRGM estimated the Adumbi deposit potential to be 1.9 Mt at 19 g/t Au, equivalent to approximately 20 t or 643,000 oz of gold. This estimate was based on an extension of the main 5 m wide vein in a strike length of 900 m (700 m exploited on Adumbi Hill and 200 m to the north towards Bagbaie), in addition to a vertical extension of approximately 200 m below the water table. Minecon notes that this estimate pre-dates the 2014 NI 43-101, cannot be relied upon, and is quoted for historical purposes only.

In 1988, Bugeco concluded that the remaining mineral resources in the Adumbi "main zone", after mine closure in 1959, were approximately 929,880 oz of gold. Bugeco further concluded that an additional 5 t of gold (approximately 160,750 oz) could be hosted outside the main zone within the remaining alluvium and other adjacent mineralised horizons at Adumbi. The total Bugeco mineral resource was estimated at 1,090,630 oz of gold as presented in Table 6.4. Minecon notes that this estimate pre-dates the 2014 NI 43-101, cannot be relied upon, and is quoted for historical purposes only.

Table 6.4: Adumbi Historical Mineral Resources (1988)