The Parlozi (Kosmaj-Babé ) Exploration Permit is held by Balkan Exploration and Mining (BEM d.o.o.) a 100% owned Serbian subsidiary of Reservoir Minerals and covers an area of approximately 91 sq. km. The Permit is easily accessible by road being approximately 40 km south of Belgrade.

The Parlozi (also known as Kosmaj-Babé) deposit is listed in the Mining Districts of Serbia, District Database (Ministry of Mining and Energy) with an historical resource of 6.5 Mt @ 4.1% Pb, 2.1% Zn, 0.3% Cu and 130 g/t Ag. The historical resources were calculated according to the Yugoslav resource criteria (similar to the Soviet classification) from 11 drill holes along a 700 meter strike length. These historical resources are not compliant with National Instrument 43-101 guidelines and should not be relied on, but the Company considers that they are relevant to the assessment of the Parlozi Project.

The project area lies within the Vardar Zoneof Neogene carbonate-replacement and epithermal Pb-Zn-Ag and porphyry Cu mineralization. The Ag-Pb-Zn mineralization occurs within the Šumadija metallogenic district, and bears many similarities with the mineralization in the famous Kopaonik district (Trepca mines).

The Parlozi mineralization is hosted in shallowly dipping Upper Cretaceous siltstones, marls and limestones, intruded by Neogene rhyolitic to quartz latite dykes and sills up to 5 metres wide. Alteration comprises chlorite-epidote alteration of marl and limestone units distal to intrusive rocks silica flooding of siltstone proximal to intrusive rocks, and silica flooding of intrusive rocks with moderate, fine-grained, disseminated pyrite and arsenopyrite is observed.

The mineralization occurs as veins and stratabound replacement of the Cretaceous carbonates and is spatially associated with intrusive Neogene quartz-latite dykes and dacitic volcanic breccias, which are intensely argillised and pyritized near the mineralization. The mineralization proximal to the breccias is enriched in gold, and marked by arsenopyrite and intense silicification of the host marls and limestones. Lead and zinc sulphides together with pyrite occur distally from the intrusive contact, but are also associated with intense silicification of the host carbonates. The ore mineralogy includes argentiferous galena, sphalerite and pyrite with accessory chalcopyrite, arsenopyrite, tetrahedrite, marcasite and gold.

Historical drilling indicates that the Parlozi mineralization forms a zone which strikes north over >300 metres and occurs between 200 and 500 meters below surface. Mineralization comprises more than five individual, moderately to steeply west-dipping, sub-parallel massive sulphide zones. Individual sulphide zones are between 50 centimeters and 2 meters thick, displaying a tabular, locally discontinuous morphology.

Observations from drill core indicate that the sulphide zones occur as both strata-bound-mantos and as discordant, massive sulphide filling sub-vertical fault zones. Mantos are recognized by disseminated and blebby sulphide replacing limestone, marl and volcaniclastic units. Mineralized fault zones are recognised in drill core by strong fracturing of the host rock adjacent to massive sulphide, with weak disseminated sulphide and chlorite-epidote alteration of the wall rock. Massive sulphide hosted in fault zones is commonly fractured and crosscut by chlorite veinlets and later quartz-carbonate veinlets.

Some of the better intersections reported from the historical drilling included BK-14: 15.1 m @ 8.96% Pb, 1.2% Zn and 317 g/t Ag and 17.1 m @ 8.68 % Pb, 0.96% Zn and 250 g/t Ag.

Close to Parlozi, there are is an historical adit and shaft near Plandiste that were used to explore and exploit the mineralization beneath an area marked on the surface by intense ancient mining activity (pits and trenches).

This type of mineralization has long supported zinc-lead-silver mining operations at Trepca and other mines in Serbia and the western Balkan countries. However, the lead-zinc sulphide replacement mineralization at Parlozi is markedly enriched in silver (see table and images), which occurs at concentrations otherwise seen in the famous manto or carbonate-replacement-deposit (CRD) deposits in Mexico and Peru.

In addition to the Parlozi target, there are additional known mineralized occurrences at Ljuta Strana, Stenicka – Svinjcine, Gomilice, Grivacevac - Celevac, Kriva Zlatara and Glavcine. Systematic work was only undertaken at Parlozi.

The Company has compiled and digitized much of the historical data, and completed a validation drill hole in the Parlozi area. The PA-1 validation drill hole was collared about 35 meters from historic drill hole BK-14,on the section that includes the earlier holes BK-6, 14, 17, 10 and 11. The hole was drilled to a depth of 600 meters on azimuth 110°.

The analytical results from PA-1 confirm the occurrence and location of mineralized intersections outlined by the historic drilling, some of the significant mineralized intersections are detailed in the table below.

The historic drilling data has been digitized into a 3D model using Datamine software, the 3D mineralization models support the historic model of mineralization, and are being used to target further exploration and drilling.

Surface mapping and sampling has identified areas of historic surface mining. Further studies are being undertaken to determine if surface mineralization is related to mineralization encountered at depth by historic exploration drilling. If surface mineralization is found to be an extension of mineralization already identified by drilling at depth, the potential extent of mineralization at the Parlozi Prospect will be significantly increased.

The Ljute Strane location is considered to be a potential Ag – Au epithermal target (surface sampling yielded 3 samples with >100 g/t Ag), possibly a high-level equivalent to that at Parlozi Prospect.

The Company has documentation pertaining to earlier underground exploration, but the analytical results are restricted to the base metals, silver analysis was not undertaken but is suspected to be a present associated with the base metal mineralization.

This historical resource estimate was not estimated under the guidance of CIM NI43-101. This historical resource estimate does not meet the CIM definition standard since the estimate has been classified using a foreign code which does not comply with NI43-101. The historical resource estimate should not be relied upon. The historical resource estimate is considered relevant as a guide to future exploration and is included for reference purposes only. The historical resource estimate does not use the categories set out in sections 1.2 and 1.3 of NI43-101. The historical resource estimate does not include any more recent estimates or data.

In order to verify and/or upgrade the historical resource estimate as current mineral resources or mineral reserves, further drilling is required. Given that only two sections contain more than one drill hole and that historic drill core is not available, further drilling is required to determine the orientation of and structural controls on mineralisation. This work would include twinning historic drill holes, additional infill drilling, and resource estimation using modern interpolation methods to conform to CIM standards.

A qualified person has not done sufficient work to classify the historical resource estimate as current mineral resources or mineral reserves.

RMI is not treating the historical resource estimate as current mineral resources or mineral reserves.