The Solway Group owns 100% of and operates a gold project on Urup Island, one of the Kuril Islands, in the Russian Far East. The Group obtained an exploration license for the area, which is over 50.8 square kilometers, in 2005. The Group completed an extensive drilling program and PFS in 2007. A brand new marine vessel was specifically designed and built for the logistical needs of the project during the exploration phase and later on for construction and commercial operations. The Group obtained and registered a 25-year mining license for the KurilGeo Gold Project in March 2010.

According to information registered with the Russian State Reserves Committee (SRC), the reserves of the KurilGeo Project amount to 8.4 metric tons of gold (category C1 + C2), with an average gold content of over 3.4 g/metric ton. Further drilling in 2010 increased the project’s reserve base by a further 4.75 metric tons of gold (category C1 + C2), which have not yet been included in the Russian State Reserves and Resource reporting system (GKZ). The Group is undertaking steps to register such reserves with the SRC. In addition, the deposit’s prospective resources are estimated at 21.3 metric tons of contained gold, with total resources surpassing 1,000,000 ozs of metal, sufficient for Life-Of-Mine for over 15 years.

The KurilGeo Project is currently in commercial operation. Investment into this asset totaled US $40 million. The construction took 2 years and was followed by a very successful launch, with the first gold bullion produced in January 2015. KurilGeo produced over 50,000 oz. in 2015 and set the same production target for 2016.