There is evidence of mining dating from the Roman times at Deli Jovan, and gold was exploited by the Weifert family from several locations within the Permit during the 20^th century prior to World War II. The principal areas of historical production within the Permit were Rusman and Ginduša, where exploitation of the auriferous quartz veins was by open pit and underground mining, the mining depth being limited by the water table, Selište, PerinaCuka as well as from the placer deposits in the drainage from the area. The grades are reported to have been 10 – 150 grams per tonne (g/t) gold from quartz veins up to 2.5 m wide. There are no reliable production figures from the period of exploitation. Historic estimates of production suggest 20 tonnes of gold (approximately 625,000 ounces gold) may have been produced from the district.

Subsequently former-Yugoslav state agencies undertook limited exploration in the area. An Irish Junior company (Kenmare Resources), in partnership with a former-Yugoslav state agency, investigated the zone in the 1990’s.

The regional geology of the Deli Jovan area comprises altered pyroxene gabbros (probably early Palaeozoic age) that are intruded by dykes of Permian granite porphyry dykes. The main NW-SE structural trends are marked by the “pingen” (old exploration and production pits) as well as outcrops of sheared gabbro.

Gold-bearing quartz veins occur in two zones along a NW-SE trend with an 8 km strike length. The veins are steeply dipping, vary in thickness from 0.30 to 2 metres, and can extend for 100’s meters along strike. The vein systems consist of bifurcating and anastamosing quartz veins, and are invariably associated with strong shearing in the host gabbros.

Underground mapping at Ginduša demonstrates that the quartz veining is controlled by two shear orientations – 315º to 330º and 260º to 280º, with the latter being associated with the highest gold grades and cross-cutting the regional NW-SE trend. In the H-10 stope the controlling structure strikes approximately E-W for about 100 metres and dips steeply to the north. The high grades occur in lenses – probably controlled by dilation zones on the controlling structure. Shoots of high-grade gold-in-quartz mineralization occur in dilation zones on the controlling planar structure, and it is expected that these structure will plunge to depths beyond that already mined (approximately 90 metres below surface).

Talc-carbonate alteration of the gabbro is common, Fe-carbonates are locally developed in the altered gabbro, and sericitisation restricted to the immediate contact with the quartz.

The vein quartz is generally milky and cryptocrystalline, and contains disseminated fine-grained pyrite. Coarse pyrite and chalcopyrite heal fractures in brecciated vein quartz. Telluride, stibnite and arsenoyprite are also reported in the literature. Calcite occurs in some of the quartz veins, as well as a late stage of calcite veins.

Quartz-vein hosted gold mineralization in altered (talc-carbonate) gabbro host rock associated with multiphase deformation along a regional shear structure is comparable to the Mother Lode and other gold deposits in the Sierra Nevada, California.

Prior to concluding the Joint Venture agreement with Orogen Gold Ltd on 21 October 2010, the Company had undertaken:

• surface exploration work over the mineralized trends (including geological mapping, ground magnetometry and orientation soil sampling).
• re-opened 1038 meters of old underground workings on the +550 meter level at Ginduša and undertaken systematic sampling (55 samples) of the gold-bearing quartz vein mineralization in three areas of previous underground stoping: H-10/560, H-5/6, and H-4.
• accessed 103 meters on +560 meter level at Rusman, before work was terminated due to collapsed material, from which 5 grab samples of mineralized quartz vein were collected.

Channel (0.5 – 1.0 meter in length) sampling across the vein system in the Ginduša adits yielded an average 10.95 grams per tonne gold ("g/t Au") from 11 samples in the H5/6 stope area, as well as individual values as high as 209 g/t Au.

Rusman: The adit collapsed at the site of the Rusman vein, and grab samples could only be collected from the fallen material. The best samples yielded 98.8 g/t, 84.6 g/t and 30.6 g/t gold.

Orogen Gold Ltd. may earn up to a 75% interest in the Deli Jovan gold project by completing $3.5 million in exploration expenditures before June 2014 under the terms of an Earn-in Agreement With the Reservoir.

To date the following exploration and development work has been undertaken by Orogen Gold on the Deli Jovan project with Support from Reservoir’s geological team in Serbia.

• SRK Consulting have undertaken a high level independent review of the Deli Jovan gold project, focused on the planned re-opening of the historic gold mines at Rusman and Gindusa, including health and safety aspects, mine development options, ore processing routes and preliminary economic considerations.
• Orogen Gold has purchased 39 acres of land over the Gindusa mine area to secure access to the site for mine refurbishment work.
• A Serbian underground mining refurbishment contractor is currently refurbishing shafts and access.
• Access has been secured to the first 30 metre working level at the Rusman mine where detailed mapping and sampling is due to commence. Dewatering continues to expose deeper production levels for further exploration;
• Re-opening of the Gindusa mine shaft is progressing to the first 30 metre mining level.
• 2,600 soil samples have been collected overthe previously unexplored area between the historic Rusman and Gindusa mines, the results of which were discussed in a news release by Reservoir Capital Corp (REO) on 11 October 2011.

Orogen have stated the following project objectives. “Orogen’s exploration objective for Deli Jovan is to demonstrate the potential for a minimum 500,000 ounce gold resource, with scope for substantial additional resources. Orogen will target a maiden inferred resource of 100,000 ounces of gold which would support an initial two to three years of production at an annualised rate of 30,000 to 40,000 ounces of gold. Subsequent drilling and sampling will be aimed at further extending the resource base to support a continuing mining operation. This will be achieved through re-opening and detailed mapping and sampling of the old mine workings and diamond drilling to confirm and extend the Rusman and Ginduša deposits..” 17 October 2011, http://www.orogengold.com/projects/deli-jovan-project