Siddharth Rajeev, B.Tech, MBA, CFA

Anthony de Ruijter, BA

September 6, 2017

GMV Minerals Inc (TSXV: GMV) – Attractive Undervalued Gold Deposit in Arizona - Initiating Coverage Sector/Industry: Junior Resource

www.gmvminerals.com

Market Data (as of September 6, 2017) Current Price C$0.48 Fair Value C$1.63 Rating* BUY Risk* 5 (Highly Spec) 52 Week Range C$0.28 - C$0.66 Shares O/S 32,415,706 Market Cap C$15.56 mm Current Yield N/A P/E (forward) N/A P/B 3.6x YoY Return -22.6% YoY TSXV -5.7%

Investment Highlights
GMV Minerals Inc. (“company”, “GMV”) is advancing the 100% owned Mexican Hat project, located in southeast Arizona, to a low-cost open pit / heap leach operation.
The project holds an epithermal gold deposit which was extensively explored in one area by Placer Dome Inc. in the early 1990s.
The project has a 2015 inferred resource (to a depth of 200 m) of 23 Mt at 0.7 gpt for 0.53 Moz of gold, and we believe there is significant potential for expansion.
The geology of Mexican Hat is unique as gold mineralization consists of free gold within fractures, faults and open spaces. This allows for significantly high gold recovery rates (90%+) versus the conventional oxide gold deposits in Nevada (75%). We believe Mexican Hat is an attractive candidate for open-pit heap leach operations.
The company is currently pursuing a 17-hole drill program as a follow up to a highly successful 2016 drill program. An updated resource estimate is expected by the end of November 2017.
Considering that the company has been able to significantly increase the strike length, confirm the presence of mineralization in certain areas to a depth of up to 300m, and identify new zones, we expect to see a considerable increase in the updated resource estimate.
GMV is currently trading at an Enterprise Value (“EV”) to resource ratio of just $16 per oz versus the comparables average of $53 per oz.
We are initiating coverage with a BUY rating and a fair value estimate of $1.63 per share.

*see back of report for rating and risk definitions.

Risks
The value of the company is highly dependent on gold prices.
Exploration and development risks.
The company may not be able to delineate the resource we used in our valuation models.
A potential acquisition may take longer than expected.
Delay in receipt of permits.
Access to capital and potential share dilution. Key Financial Data (FYE - June 30) (C$) Cash Working Capital Mineral Assets Total Assets Net Income (Loss) EPS

2017 Fundamental Research Corp.

2016 $232,297 $131,337 $594,180 $927,380 -$412,687 -$0.03

2017 (9M) $2,390,975 $2,213,779 $1,989,898 $4,532,956 -$1,348,648 -$0.04

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 2

Background

The company was formed in 2006 as Goldmember Ventures Corp. by the current CEO, Ian Klassen, and the Chairman, Alistair MacLennan, as the founding members. Goldmember Ventures went public through a reverse takeover (“RTO”) of a capital pool company in 2007. Its name was subsequently changed to GMV Minerals Inc. in 2008. Management has a good mix of capital markets and geological expertise. The company’s lead geological consultant, Dr. D.R. Webb, has a strong track record with both early stage and advanced stage projects. Since inception, the company has focused on gold and silver, and explored several assets including properties in British Columbia, Canada and Guyana, South America. In 2014, the company acquired the Mexican Hat project in Arizona, which is currently its flagship asset. Arizona is a mining friendly jurisdiction and is the second largest producer of minerals (see chart below) in the U.S. behind Nevada. Arizona is the largest copper producer, and a significant source of molybdenum in the U.S. According to the U.S. Geological Survey (USGS), in 2016, Arizona produced US$5.6 billion worth of minerals (7.5% of the U.S. total), primarily copper, molybdenum, sand / gravel, and cement. Nevada is the largest producer with approximately US$7.7 billion worth of minerals produced, or 10.3% of the U.S. total. Nevada’s primary production is gold and copper. Mineral-Production in the U.S.

Source: USGS

Mexican Hat Gold Project, Arizona

Location The project, covering approximately 4,800 acres, is located in Cochise County in southeast Arizona, approximately 115 km southeast of Tucson. The following map shows the project’s location.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 3

Source: Company

The project is accessed via a gravel road (Old Ghost Town Road) from the town of Pearce. Willcox and Benson are larger communities located within a half hour drive from Pearce. The project has sufficient access to ground water and power. There is an active power line crossing the property, and the Apache Thermal Power Plant is 30 km from the project. The project area includes several small hills, and is dominated by the Mexican Hat Hill, which has an elevation of approximately 1,585 m. View of the Mexican Hat Hill

Source: Company 2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 4

Ownership GMV originally acquired a 100% interest in 40 unpatented mining claims, covering 316 hectares, in May 2014, for $40k in cash, and 0.10 million warrants. The claims are subject to a 3% net smelter return royalty due to an unrelated individual (Manuel Hernandez – the property owner), of which, 1.5% can be purchased for US$1.50 million. GMV subsequently acquired additional land in the area through several transactions, and currently holds a significant land package totaling approximately 4,800 acres. History Mexican Hat was extensively explored by Placer Dome Inc. in the early 1990s. Although there is a lack of detailed information on the project prior to the 1980s, it is known that the area underwent mining during the 16th or 17th century. In 1989, Oneida Resources Inc. optioned the property from Manuel Hernandez, and completed a 20 hole / 1,524 m drill program on a small portion of the project. Oneida subsequently formed a joint venture (“JV”) with Placer Dome. Placer spent US$1.9 million during 1989 – 1990 to earn a 60% interest in the project. Placer’s program included 18,939 m of drilling including 137 reverse circulation / rotary percussion drill holes, and 17 diamond core drill holes. Based on this drilling, Placer calculated a resource estimate of 5.23 Mt at 0.93 gpt gold, using a 0.35 gpt cut-off. Placer also conducted bottle roll tests (to evaluate the ore’s amenability to cyanide leaching) which indicated very high gold recoveries of 93%. Note that this is an exceptionally high recovery rate for such deposits (discussed in detail later). In 1989, Santa Fe Pacific Mining, Inc. conducted a 29-hole (3,811 m) drill program along the west-south-east border of the original Mexican Hat land package. Oneida eventually purchased Placer’s interest in the project in 1992. In 1996, Kalahari Resources completed a 18 hole / 3,770 m drill program through an option agreement with Oneida. In 2004, Capitol Hill Gold Corp. conducted a 4 hole / 158 m drill program. Between 2009 and 2011, Auracle Resources Ltd. conducted a 19-hole (2,580 m) drill program, surface sampling, and geophysics program. Kalahari and Auracle’s work not only confirmed Placer’s data, but also expanded the known mineralization to the east. In total, 171 holes totaling approximately 22,000 m were drilled prior to GMV’s acquisition. Geology The project hosts a low sulphidation epithermal gold deposit in tertiary volcanic rocks. Low sulphidation epithermal deposits are highly prevalent in Nevada. These projects are well known for being low cost as they are typically open-pit heap leach operations. Sources 2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 5

indicate that approximately 78% of U.S. gold is produced by such mines. Some of the largest epithermal gold deposits in the world occur in tertiary volcanic rocks associated with low-quartz, tellurium-rich, iron-oxide altered alkaline igneous rocks (Source: Smith et al., 2017). Geochemically, these deposits have high gold to silver ratios with significant tellurium concentrations. Mexican Hat’s mineralization is very unique and appears to be of this class. Gold and silver mineralization at Mexican Hat is associated with moderate to strongly oxidized zones of haematite and limonite. Unlike most epithermal deposits where gold is held in veins, and stockwork zones adjacent to the veins, Mexican Hat’s gold mineralization consists of free gold within fractures, faults and open spaces. This allows for significantly high gold recovery rates versus conventional oxide deposits in Nevada. Mexican Hat’s Gold-bearing Hematite Mineralization

Source: Company

The following table shows the resource estimates and a few key metrics of two advanced staged oxide gold deposits in Arizona. Notice the exceptionally high Internal Rate of Returns of the two projects.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 6

Commonwealth Silve r and Gold Project

Moss Gold Silver Project

0.2 gpt

0.25

Cut-off

36Mt at 0.38 gpt gold and 31 gpt silver (0.89 gpt gold 15Mt at 0.76 gpt gold and 9.3 gpt silver (0.87 gpt gold equiv) for 0.44 M oz gold equiv equiv) for 1.02 M oz gold equiv

Measured and Indicated Resource

Inferred Resource

19 Mt at 0.41 gpt for 0.25 Moz gold equivalent

2 Mt at 0.62 gpt for 0.04 Moz gold equivalent

2014 Preliminary Economic Assessment

2015 Feasibility Study

Mine life

11 years

5 years

Recovery

79% gold and 34% silver

82% gold and 65% silver

Operating cost

US$13.17 per ton

US$13.66 per tonne

Initial CAPEX

US$56 million

US$33 million

Gold Price used in study

US$1,350 per oz

US$1,250 per oz

After-tax Net Present Value (“NPV”)

US$101 million

US$60.3 million

58%

48%

Stage

After-tax Internal Rate of Return (“IRR”)

Source: FRC (Marlin Gold and Northern Vertex)

The Commonwealth Silver and Gold project (100% owned by Marlin Gold Mining / TSXV: MLN) is located in central Cochise County, approximately 9 km from the Mexican Hat project. The Moss project, owned by Northern Vertex Mining (TSXV: NEE), is located in north Arizona. Both projects hold near-surface low sulfidation epithermal deposits, but, unlike Mexican Hat, their mineralization is held in quartz veins and stockwork zones. Both projects are being advanced as open-pit heap leach operations. Mexican Hat’s average recovered gold grade is significantly higher than that of the Commonwealth project. Also, Commonwealth’s processing includes three-stages of crushing and agglomeration, and therefore, we believe it has relatively high capital and operating costs. Resource Estimate After taking over the project, GMV completed a NI 43-101 compliant resource estimate in February 2015. The estimate showed an inferred resource of 23 Mt at 0.7 gpt for 0.53 Moz of gold, at a 0.2 gpt cut-off. The study used a gold price of US$1,250 per oz, a recovery rate of 75%, a strip ratio of 1.5, and a total operating cost of $10.25 per tonne. Considering that the expected recovery rate of the project is significantly higher than 75%, we believe this resource estimate is very conservative. Cut-off (g/t Au)

2017 Fundamental Research Corp.

Tonnes

Grams

Grade (Au g/t)

Ounces Au

0.4

12,735,000

13,482,000

1.06

433,500

0.3

16,819,000

14,901,000

0.89

479,000

0.2

23,452,000

16,528,000

0.70

531,400

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 7

The resource was calculated from the surface to a depth of 200m. The following image shows the locations of the eight identified zones holding the inferred resources. Location of the eight identified zones

Source: Technical Report

The known strike length at that time varied widely across zones: for example, zone H was the longest with a strike of 560 m, zone EB was the smallest at 80 m. The widths range between 3 m and 72 m. The total strike was estimated at 900 m. All the zones except zone H trends 60°, while zone H trends 120°. The resource study showed that the mineralization is open in all directions, implying good potential for expansion. GMV’s first drill program in 2016 GMV conducted a 15-hole drill program from November 2016 to January 2017, with the objective of expanding the NI 43-101 compliant resource estimate. The program included step out holes along the northeast and southeast, as well as holes to test mineralization to an additional 100 m in depth from the historical average of 200m. The following map shows the locations of the drill holes.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 8

2016 Drill Holes

Source: Company

Seven holes (2016 - 1 to 6 and 11) targeted the H2 zone (previously referred as zone H) which resulted in extending its strike length by approximately 400m to the southeast, from the previously known 900m to approximately 1,300m. Four of the seven holes intersected relatively high grades over significant widths. These holes also showed mineralization up to 300 m. Key results from these holes are shown below:

Source: Company

The remaining eight holes (2016-7 to 10 and 2016-12 to 15) tested the northeast extensions of the 60° trending zones, namely the AN, A, B, C, D and the VF zones. Five of the eight drill holes intersected significant mineralization, and three new zones were identified namely, the N, AB and CD zones. Key results from these holes are shown below:

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 9

Source: Company

2017 Drill Program Encouraged by the excellent 2016 program, the company commenced a 17-hole program in April 2017. The objective of this program is to test the following:
An additional 200 m to the southeast; note that the 2016 program had extended the known mineralization by 400m to the southeast; Management estimates that the mineralization changes direction and dips towards the south (as shown in green in the image below).
New zones identified (located to the north) in the 2016 program
Test mineralization to a depth of 300m
West of the known deposit

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 10

2017 Drill Holes

Source: Company

In May 2017, GMV announced completion of the first three holes. Assays are pending, but the company announced that all three holes intersected multiple intersections. The holes also confirmed the existence of additional zones in the north. MHC 17-6 and 17-7, as shown in the map above, identified mineralization to the west and to a maximum depth of 120 m. MHC 17-8 (eastern most hole) hit good grades and widths at 354 m, the deepest extent so far. Drill Hole MHC 17-6 MHC 17-7 MHC 17-8

Significant Intersections 6.9m grading 0.48 gpt 75m west of the known deposit N, AN, H2, plus 3 new zones gold 50m deeper of nearest holes N, AN, H2 plus 3 new zones west of the known deposit Location

Zones Intersected

90m north and 70m deeper of nearest holes east of the deposit

N, AN, A, AB plus 3 new zones

5.0m grading 0.78 gpt gold

The remaining 14 holes of the current program include the following:
five step-out holes along strike (south east) of the known mineralization of the H2 zone
six holes on the eastern extent to further test the 60° trending zones, along strike and up to a depth of 300m
three to the north (not shown in the above image) where Placer Dome had three of their best holes (see image below). The objective of these holes is also to test the area’s gold

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 11

porphyry potential. Mexican Hat Geology and Mineralization

Source: Company

Management expects to complete the remaining 14 holes by October 2017. Results are expected by November 2017. In addition to the drill program, in May 2017, the company completed geophysical surveys which indicated the following highly encouraging features:
traced mineralization to depths of 500 m for resistivity anomalies
less than 50 m of overburden cover across the survey area
potential for additional target zones GMV has completed a detailed topographic and orthophotographic survey over the entire property, to enable engineering plans and designs, and improved resource work. Management also expects to complete an updated resource on the project by November 2017. Resource Upside The mineralization at Mexican Hat is open in all directions. Considering that the company has been able to increase the H2 zone’s strike length from 560 m to 1,300 m, confirm the 2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 12

presence of mineralization in certain areas to a depth of up to 300 m, and identify new zones, we expect to see a considerable increase in the updated resource estimate. We speculate a potential resource of 51.5 Mt at an average grade of 0.7 gpt; approximately 1.15 Moz of gold. Our estimate is based on a 20% increase in strike, 50 m increase in depth to 250 m, and the addition of three zones. Note that this is speculative as there has not been sufficient drilling beyond 200 m to confirm mineralization at depth. The following table shows how we arrived at our estimates.

2015 NI 43-101

Tonnage (Mt)

Strike (m)

Width (m)

Depth (m) No. of Zones

Zone H2

560

9

200

1

1.10

60 deg trending zones

400

38

200

7

23.2

Total (approx.)

FRC Est.

24.3

Zone H2

672

9

250

1

1.65

60 deg trending zones

480

38

250

10

49.9

Total

51.5

Source: FRC

For our valuation purposes, we have applied a 25% discount on our above estimate, and used 38.6 Mt at 0.7 gpt for 0.87 Moz. Metallurgical Testing Both GMV’s work as well as Placer Dome’s earlier work show the mineralization is oxidized to the deepest extents drilled. In 2015, bottle roll test results conducted by GMV showed good recoveries at very easily attainable crush sizes. Two crushed samples showed recoveries of 77.1% and 95.0%. The recovery rates improved to 91.6% and 96.6% with additional crushing (0.75 inch minus). In April 2017, the company announced that testing of materials (2 inch minus) from lowgrade ore showed a head grade of 0.34 gpt gold and a recovery rate of 78%. This is very positive as it is an indicator of the viability of ROM (run-of-mine) heap leach processing for the project’s low-grade resources. The testing also showed that mineralization did not have any clay or refractory issues. This is important as refractory gold ores may have ultra-fine gold particles, and are naturally resistant to recovery by standard recovery processes, such as cyanidation. These results, we believe, show the project’s potential to be a low-cost ROM, or ROM with screening and single stage crush operation. The average recovery rates of typical heap leach operations in Nevada are approximately 75% for higher-grade mineralization.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 13

Acquisition Targets and Comparables

The following table shows the key metrics of several well-known comparable projects. As shown, the average recoverable grade of 0.49 gpt (0.65 gpt at a recovery of 75%) is significantly lower than Mexican Hat’s recoverable grade of 0.64 gpt (0.70 gpt at a recovery of 92%).

Source: FRC

The following chart provided by GMV indicates that Mexican Hat is ranked seventh in terms of recoverable grade from a list of 32 heap leach projects.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 14

Source: Company

We believe the next few months will be exciting as we receive more clarity on the true upside potential of the Mexican Hat project. A successful drill program will significantly improve the company’s prospects as an attractive acquisition target, making it an attractive value proposition for larger gold companies seeking to expand and/or diversify their portfolios. We speculate Commonwealth’s owner, Marlin Gold, will be the most likely suitor. Note that Commonwealth’s previous owner had made a failed attempt to acquire Mexican Hat in 2012. The industry has been experiencing a trend of declining reserves and production (see charts below), which we believe will encourage larger companies to seek high-quality and undervalued assets to add to their portfolios. The following charts show the combined production and gold reserves of the major gold producers:

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 15

Gold Reserves (in Moz)

Production (in Moz)

Source: Goldcorp Inc.

The above charts include production and reserve data of Goldcorp, Barrick, Newmont, Newcrest (ASX: NCM), Agnico Eagle (NYSE: AEM), Kinross (TSX: K), Yamana (TSX: YRI), AngloGold (JSE; ANG), Gold Fields (JSE: GFI) and Harmony Gold (JSE: HAR). The following table compares GMV to several other junior resource companies.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 16

1

Company

Ticker

Location

Resource Category

Northern Vertex Mining Corp.

TSXV: NEE

Arizona

Measured & Indicated

0.76

Inferred

0.55

2

Northern Empire

TSXV: NM

Nevada

Au equiv. (g/t)

Measured & Indicated Inferred

3

Pershing Gold Corp.

4

5

6

Corvus Gold

Canamex Resources

Rye Patch Gold Corp.

7

Comstock Mining

TSX: PGLC

TSX:KOR

TSXV: CSQ

TSXV: RPM

NYSE: LODE

Nevada

Nevada

Nevada

Nevada

Nevada

Measured & Indicated

0.72

Inferred

0.35

Measured & Indicated

0.74

Inferred / Historic

0.21

Measured & Indicated

0.76

Inferred

0.78

$95.80

$209.86

FS

354,500

$26.99

$76.14

Resource

1,410,926

$101.92

$72.24

PFS

1,493,190

$81.34

$54.47

PEA

321,122

$9.83

$30.61

PEA

3,951,810

$114.32

$28.93

PEA

2,541,487

$59.75

$23.51

Resource

0.48 0.59

Measured & Indicated

1.06

Inferred

0.78 0.70

870,000

$13.81

$15.87

Resource

1,708,068

$15.24

$8.92

PEA

7,231,655

$32.91

$4.55

PFS

2,033,926

$55.19

$52.51

Arizona

FRC Est.

9

Timberline Resources

TSXV: TBR

Nevada

Measured & Indicated

0.97

Inferred

0.60

Oregon

456,500

Inferred

TSXV: GMV

AMEX: PZG

Project Stage

Measured & Indicated

GMV Minerals

Paramount Gold Nevada Corp.

Enterprise Value EV / (C$,M) Resource

2.23

8

10

Net Resource

Measured & Indicated

0.50

Inferred

0.35

Average

0.73

Source: FRC

GMV is currently trading at an Enterprise Value (“EV”) to resource ratio of $16 per oz versus the comparables average of $53 per oz. Management

Management and board members combined hold 1.60 million shares, or 4.9% of the total, and 0.93 million options, or 29% of the total outstanding.

Brief biographies of GMV’ management team, board members and advisors, as provided by the company, follow: Ian Klassen. B.A. (Hons), President/CEO Mr. Klassen has 25 years of experience in public company management, public relations, government affairs and entrepreneurialism. He has extensive experience in public company administration, finance, government/legislative policy, media relationship strategies and 2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 17

project management. Mr. Klassen is the President of a North American mineral exploration company and sits on the Board of Directors of several private and public companies. Previous to his management activities within private and public companies, Mr. Klassen held a variety of positions within federal Canadian politics including; Senior Political Advisor to the Minister of State (Transportation); and Chief of Staff, Office of the Speaker of the Canadian House of Commons. Mr. Klassen graduated with an undergraduate Honours Degree from the University of Western Ontario in 1989. In 1992, Mr. Klassen received the Commemorative Medal for the 125th Anniversary of the Confederation of Canada in recognition of his significant contribution to his community and country. Dr. D.R. Webb, B.A.Sc., M.Sc., Ph.D., P.Geo., P.Eng., Lead Consultant Dr. D.R. Webb graduated from the University of Toronto in Geological Engineering where he obtained awards for the highest marks in both third year and fourth year field camps. He obtained his M.Sc. and Ph.D. in Geological Sciences at Queen’s University and the University of Western Ontario respectively where his focus was on the structural and geochemical controls on gold mineralization in the Yellowknife Greenstone Belt. Dave subsequently is credited with discovering both the largest granitic hosted gold deposit in the Northwest Territories, and the largest gold deposit in the Yellowknife Greenstone Belt found in the past 30 years. He served as president and director of Tyhee Gold Corp where he and his team developed a high-grade gold deposit into production, Mongolia’s first hard rock gold mine. He later advanced his discoveries in Yellowknife into a multimillion ounce resource, completed economic and engineering analysis and initiated both Feasibility Studies and permitting. Dave also developed the Mon Gold Mine into the most recently permitted gold mine in the Yellowknife Gold Belt, operating for seven years, shutting down in 1997 due to declining gold prices. He recently completed permitting to commence reopening of this mine. Dr. Webb consults to the industry, providing services throughout the world and sits on the board of Metallis Resources Inc., several private corporations, and is on the Advisory Council for the Centre of Training Excellence in Mining. As a consultant, he coauthored the qualifying report on Fortune Minerals’ Nico Deposit, recommending acquisition of what is now the largest bismuth resource in the world, hosted in a polymetallic precious-metal bearing IOCG deposit, currently through permitting and in construction. Michele Pillon, CFO Ms. Pillon is an accountant with several years experience in the junior mining exploration sector. Since 1988, Ms. Pillon has been providing accounting and regulatory assistance to public and private companies. Alistair MacLennan, Chairman (Independent) MacLennan has been working in the junior resources sector (oil/gas/minerals), in various capacities, for over thirty years. He has gained industry knowledge through founding, investment in and serving on the Boards of a number of public and private exploration companies. Mr. MacLennan is also the Chairman and director of Helijet International Inc., a helicopter airline operating a fleet of Sikorsky S76 helicopters throughout the Pacific Northwest since 1986. Mr. MacLennan is actively involved in a number of private companies which are involved in leasing, manufacturing and natural gas production.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 18

Board of Directors

Ian Klassen, B.A. (Hons.), President & CEO Douglas A. Perkins, B.Sc., FGAC, Independent Director A 1979 University of British Columbia geology graduate, Mr. Perkins has served on public company boards for over 25 years involving the promotion and representation of their geological properties. He has been involved in several start-ups of both public and private companies not only geological but manufacturing, wholesale and developmental industries. From an exploration standpoint, Mr. Perkins worked on the Gataga Trend for Cyprus Anvil, where several multi-million ton deposits were discovered. He also worked for UTAH, UMEX, Cominco and oversaw Freeport/Stryker’s exploration project in northern B.C.& near the Windy Craggy deposit. Mr. Perkins had tropical experience in 1988 - 89 in the jungle of the Darien Gap in Panama. For the last three years he has been running regional projects in Peru for private companies, one of which is upriver of the headwaters of the Amazon. Carl Hale, Independent Director Carl D. Hale, B.Sc., R.P.G, Q.P. received his Bachelor of Science degree in geology from the University of Washington in 1972. He has worked the majority of his career on mineral exploration projects in Alaska and the Pacific Northwest for various mining companies and consulting groups. He supervised massive sulfide exploration projects in the Brooks Range, Alaska, mineral reconnaissance programs in the Alaska Range and Southeast Alaska, and is presently the project manager on a gold exploration venture in the United States. Carl spent several years as a mine geologist at the Cannon Mine, a large gold mine in Wenatchee, Washington, as a geologist at the Sunshine silver mine in Idaho, managed a copper exploration project at Bornite, Alaska for three years for Kennecott and served as a geologist on a gold exploration project in Myanmar. Robert Coltura, Independent Director Mr. Coltura is a businessman with significant entrepreneurial experience and is President and principal shareholder of Matalia Investments Ltd. Matalia Investments Ltd., a company that provides management consulting, corporate finance and investor relation services to public and private companies. Mr. Coltura has over 10 years experience with various public companies, holding positions of officer and director of several public companies Mr. Coltura has a great deal of business development experience and has worked with a variety of companies to strengthen their position within their industry.

Board of Advisors

Dr. Peter W. Stewart, Ph.D, M.Sc., B.Sc. Dr. Stewart is an economic geologist with over 25 years of experience in the mining and related industries, including mineral exploration and development, government geological surveys and geology instruction at several universities. Dr. Stewart has provided geological consulting services to Aurelian Resources Inc. and Kinross Gold Corporation at the Fruta del Norte discovery and to other junior and private gold companies from 2002-2008. From 19921998, Dr. Stewart was Exploration Geologist for Phelps Dodge, with assignments in Eastern and Northern Canada, Southeast Asia, Idaho and Morocco. Prior to 1992, he worked as an exploration geologist for base and precious metal deposits across Canada and in Australia. Dr. Stewart received degrees in geology from Acadia University, Wolfville, NS (B.Sc.), Memorial University of Newfoundland (M.Sc.) and the University of Western Ontario

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 19

(Ph.D.) and has been a registered Professional Geoscientist in Ontario since 2003. Dr. Roger Newell, Ph.D., M.Sc., B.Sc. Dr. Newell holds a Ph.D. in mineral exploration from Stanford University, and has more than forty years of experience in the mining industry. Dr. Newell holds a B.Sc. in geology from the University of Oregon and an M.Sc. in geology from the Colorado School of Mines; he is a past president of the CSM Alumni Association. Dr. Newell is renowned internationally for recognizing the potential of the Carlin Trend in Nevada when he serve as Senior Geologist and exploration manager with Newmont and Gold Fields. Michael H. Halvorson Michael Halvorson has been involved in various aspects of the securities industry since 1967. Since 1980, he has been the President of Halcorp Capital Ltd., a private investment corporation. Mr. Halvorson also serves as a director of Orezone Gold Corporation, Strathmore Minerals Corporation, Esperanza Silver Corporation, Novus Energy Inc. and Pediment Exploration Ltd. Notable past directorships include Gentry Resources Ltd., Western Silver Inc., Fission Energy Corp. and Viceroy Exploration Ltd. Management and Board Rating

Our net rating on the management team is 3.8 out of 5.0 (see below). Management Rating

Technical Experience

4.00

Experience in putting mines to production/generating prospects

3.75

Track record in raising capital/working for public companies

4.00

Experience in projects similar to the current project

3.50

Net Rating

3.81 0%

20%

40%

60%

80%

100%

Source: FRC

The company’s board has five members, of which, four are independent. We believe that the Board of Directors of a company should include independent or unrelated directors who are free of any relationships or business that could materially interfere with the director’s ability to act in the best interest of the company. The following table shows our analysis on the strength of GMV’s board.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 20

Poor

Average

Four out of five directors are independent

Good

X

Two directors hold shares of the company

X

The Audit committee is composed of three board members, two are independent

X

Management compensation is overseen by the board

X

Source: FRC

Financials

At the end of Q3-2017 (ended March 31, 2017), the company had cash and working capital of $2.39 million and $2.21 million, respectively. We estimate the company had a burn rate (cash spent on operating and investing activities) of $61k per month in the nine-month period ended FY2017. The burn rate in FY2016 was just $33k, indicating management’s very prudent spending. The following table summarizes the company’s liquidity position: (in C$) Cash Working Capital Current Ratio LT Debt / Assets

2016

2017 (9M)

$232,297 $131,337 1.70 -

$2,390,975 $2,213,779 9.59 -

$33,461

$61,433

$715,660

$4,090,527

Monthly Burn Rate (incl. investing activities) Cash from Financing Activities

Stock Options and Warrants

Valuation and Rating

The company currently has 3.19 million options outstanding (weighted average exercise price of $0.36 per share) and 5.76 million warrants (weighted average exercise price of $0.46 per share) outstanding. At this time, 1.81 million options and 2.67 million warrants are inthe-money. The company can raise up to $0.96 million if all the in-the-money options and warrants are exercised. The following table shows a summary of our DCF model.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 21

DCF Valuation Operating Life (years)

11

Throughput (tpd)

10,000

Tonnage (heap leach) - Mt

38.6

Recovery

85%

Total Gold Produced (Moz)

0.73

Average Annual Production (Au equiv. oz)

69,496

Average Price of Au ($/oz)

$1,300

LT avg. exchange rate (US$:C$)

1.10

Operating Cost (LOM) in $/t

$13.50

Initial Capital Cost ($)

$45,000,000

Discount Rate

14.0%

Tax

25%

After-Tax Net Asset Value (C$)

$64,641,405

Working Capital - Debt (C$)

$1,753,034

Fair Value of GMV (C$) No. of Shares

$66,394,439

*

34,869,803

Fair Value per Share (C$)

$1.90

* calculated based on the treasury stock method

Source: FRC

Key Assumptions:
Our models were based on a 11-year mine life at 10,000 tpd for 38.6 Mt at an average grade of 0.7 gpt.
We estimate that the initial CAPEX of comparable projects is approximately US$6,000 per tpd facility. A contract mining scenario will lower the CAPEX to approximately US$3,000 per tpd, indicating a 10,000 tpd operation at Mexican Hat will reflect a CAPEX of approximately US$30 million. For conservatism, we have used a CAPEX of US$45 million in our valuation models.
We also used a conservative operating cost estimate of US$13.5/t, which is in line with comparable projects. Note that as Mexican Hat will not require the same level of crushing, the operating cost could be approximately US$10 - US$12/t.
Although preliminary metallurgical tests show the potential for an average recovery rate of over 90%, our models were based on an average recovery of 85%.
We typically use a discount rate of 11.5% for gold juniors in the U.S. Since our valuation models were based on our internal resource estimate, we have used a higher discount rate of 14% in this case to be conservative. The following table show the sensitivity of our valuation to key inputs:

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 22

Gold Price (US$ / oz) $900

$1,100

$1,300

$1,500

$1,700

$1.00

-$0.66

$0.54

$1.74

$2.93

$4.13

$1.05

-$0.70

$0.56

$1.82

$3.08

$4.34

$1.10

-$0.73

$0.59

$1.90

$3.22

$4.54

$1.20

-$0.80

$0.64

$2.07

$3.51

$4.95

$1.30

-$0.87

$0.68

$2.24

$3.80

$5.36

1.90

Exchange Rate (US$:C$)

Recovery Rate US$:C$ - 1.1 1.90

Discount Rate

75.0%

80.0%

85.0%

90.0%

95.0%

5.0%

$2.18

$3.10

$4.02

$4.94

$5.86

10.0%

$1.33

$1.98

$2.63

$3.28

$3.93

14.0%

$0.90

$1.40

$1.90

$2.41

$2.91

17.5%

$0.63

$1.04

$1.45

$1.86

$2.27

20.0%

$0.48

$0.83

$1.19

$1.55

$1.91

Source: FRC

As shown above, GMV shares are significantly undervalued even at conservative inputs. Applying the average EV / resource ratio of $52.5 per oz (presented earlier in this report) to our internal resource estimate of 0.87 Moz on Mexican Hat, we arrived at a comparables valuation of $1.36 per share on GMV’s shares. The average of our DCF ($1.90 per share) and comparables valuation ($1.36 per share) is $1.63 per share. We are initiating coverage on GMV with a BUY rating and a fair value estimate of $1.63 per share. Risks

We believe the company is exposed to the following key risks (not exhaustive):
The value of the company is highly dependent on gold prices.
Exploration and development risks.
The company may not be able to delineate the resource we used in our valuation models.
A potential acquisition may take longer than expected.
Delay in receipt of permits.
Access to capital and potential share dilution. As with most junior exploration / development companies, we rate GMV’s shares a risk of 5 (Highly Speculative).

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT

Page 23

Fundamental Research Corp. Equity Rating Scale: Buy – Annual expected rate of return exceeds 12% or the expected return is commensurate with risk Hold – Annual expected rate of return is between 5% and 12% Sell – Annual expected rate of return is below 5% or the expected return is not commensurate with risk Suspended or Rating N/A— Coverage and ratings suspended until more information can be obtained from the company regarding recent events. Fundamental Research Corp. Risk Rating Scale: 1 (Low Risk) - The company operates in an industry where it has a strong position (for example a monopoly, high market share etc.) or operates in a regulated industry. The future outlook is stable or positive for the industry. The company generates positive free cash flow and has a history of profitability. The capital structure is conservative with little or no debt. 2 (Below Average Risk) - The company operates in an industry where the fundamentals and outlook are positive. The industry and company are relatively less sensitive to systematic risk than companies with a Risk Rating of 3. The company has a history of profitability and has demonstrated its ability to generate positive free cash flows (though current free cash flow may be negative due to capital investment). The company’s capital structure is conservative with little to modest use of debt. 3 (Average Risk) - The company operates in an industry that has average sensitivity to systematic risk. The industry may be cyclical. Profits and cash flow are sensitive to economic factors although the company has demonstrated its ability to generate positive earnings and cash flow. Debt use is in line with industry averages, and coverage ratios are sufficient. 4 (Speculative) - The company has little or no history of generating earnings or cash flow. Debt use is higher. These companies may be in start-up mode or in a turnaround situation. These companies should be considered speculative. 5 (Highly Speculative) - The company has no history of generating earnings or cash flow. They may operate in a new industry with new, and unproven products. Products may be at the development stage, testing, or seeking regulatory approval. These companies may run into liquidity issues, and may rely on external funding. These stocks are considered highly speculative. Disclaimers and Disclosure The opinions expressed in this report are the true opinions of the analyst about this company and industry. Any “forward looking statements” are our best estimates and opinions based upon information that is publicly available and that we believe to be correct, but we have not independently verified with respect to truth or correctness. There is no guarantee that our forecasts will materialize. Actual results will likely vary. The analyst and Fundamental Research Corp. “FRC” does not own any shares of the subject company, does not make a market or offer shares for sale of the subject company, and does not have any investment banking business with the subject company. Fees were paid by GMV to FRC. The purpose of the fee is to subsidize the high costs of research and monitoring. FRC takes steps to ensure independence including setting fees in advance and utilizing analysts who must abide by CFA Institute Code of Ethics and Standards of Professional Conduct. Additionally, analysts may not trade in any security under coverage. Our full editorial control of all research, timing of release of the reports, and release of liability for negative reports are protected contractually. To further ensure independence, GMV has agreed to a minimum coverage term including an initial report and three updates. Coverage cannot be unilaterally terminated. Distribution procedure: our reports are distributed first to our web-based subscribers on the date shown on this report then made available to delayed access users through various other channels for a limited time. The distribution of FRC’s ratings are as follows: BUY (71%), HOLD (8%), SELL (5%), SUSPEND (16%). To subscribe for real-time access to research, visit http://www.researchfrc.com/subscribe.php for subscription options. This report contains "forward looking" statements. Forward-looking statements regarding the Company and/or stock’s performance inherently involve risks and uncertainties that could cause actual results to differ from such forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products/services in the marketplace; acceptance in the marketplace of the Company's new product lines/services; competitive factors; new product/service introductions by others; technological changes; dependence on suppliers; systematic market risks and other risks discussed in the Company's periodic report filings, including interim reports, annual reports, and annual information forms filed with the various securities regulators. By making these forward looking statements, Fundamental Research Corp. and the analyst/author of this report undertakes no obligation to update these statements for revisions or changes after the date of this report. A report initiating coverage will most often be updated quarterly while a report issuing a rating may have no further or less frequent updates because the subject company is likely to be in earlier stages where nothing material may occur quarter to quarter. Fundamental Research Corp DOES NOT MAKE ANY WARRANTIES, EXPRESSED OR IMPLIED, AS TO RESULTS TO BE OBTAINED FROM USING THIS INFORMATION AND MAKES NO EXPRESS OR IMPLIED WARRANTIES OR FITNESS FOR A PARTICULAR USE. ANYONE USING THIS REPORT ASSUMES FULL RESPONSIBILITY FOR WHATEVER RESULTS THEY OBTAIN FROM WHATEVER USE THE INFORMATION WAS PUT TO. ALWAYS TALK TO YOUR FINANCIAL ADVISOR BEFORE YOU INVEST. WHETHER A STOCK SHOULD BE INCLUDED IN A PORTFOLIO DEPENDS ON ONE’S RISK TOLERANCE, OBJECTIVES, SITUATION, RETURN ON OTHER ASSETS, ETC. ONLY YOUR INVESTMENT ADVISOR WHO KNOWS YOUR UNIQUE CIRCUMSTANCES CAN MAKE A PROPER RECOMMENDATION AS TO THE MERIT OF ANY PARTICULAR SECURITY FOR INCLUSION IN YOUR PORTFOLIO. This REPORT is solely for informative purposes and is not a solicitation or an offer to buy or sell any security. It is not intended as being a complete description of the company, industry, securities or developments referred to in the material. Any forecasts contained in this report were independently prepared unless otherwise stated, and HAVE NOT BEEN endorsed by the Management of the company which is the subject of this report. Additional information is available upon request. THIS REPORT IS COPYRIGHT. YOU MAY NOT REDISTRIBUTE THIS REPORT WITHOUT OUR PERMISSION. Please give proper credit, including citing Fundamental Research Corp and/or the analyst, when quoting information from this report. The information contained in this report is intended to be viewed only in jurisdictions where it may be legally viewed and is not intended for use by any person or entity in any jurisdiction where such use would be contrary to local regulations or which would require any registration requirement within such jurisdiction.

2017 Fundamental Research Corp.

“10+ Years of Bringing Undiscovered Investment Opportunities to the Forefront”

www.researchfrc.com

PLEASE READ THE IMPORTANT DISCLOSURES AT THE BACK OF THIS REPORT