August 30, 2016

Research #3Gold in British Columbia

Ascend from explorer to producer secured:

A Just-in-Time success story par excellence

Yesterday before market open in Canada, the shares of Golden Dawn Minerals Inc. were halted. Shortly thereafter, material news was published that is poised to ascend this $30 million CAD valued junior from an explorer to a producer; one that plans to pour its first gold bar in British Columbia later this year. In the last decade, only around 20 significant gold mines were put into production in Canada. A general rule of thumb indicates that only 1 out of 1,000 explorers actually become a producer. Golden Dawn is on a fast-track to become the next one. Right after a press-release was published on August 8 about the extension of deadline (to September 6) to exercise its option to fully acquire the Greenwood Project from Huakan International Mining, the sceptics took the upper hand and the stock corrected. However yesterday, a $2.4 million USD funding agreement with New York based institutional investor Lind Partners LLC was accomplished, which enables Golden Dawn with its cash position to bring the required $3.4 million to the table in order to acquire 100% of the project. This nowadays sensational bargain price was negotiated by German CEO Wolf Wiese in a perfect manner at the end of the gold price correction in early 2016. The time for Golden Dawn and its shareholders has come.

Company Details

Golden Dawn Minerals Inc.Suite 900 - 525 Seymour StreetVancouver, B.C. V6B 3H7 CanadaPhone: +1 604 221 8936Email: allinfo@goldendawnminerals.comwww.goldendawnminerals.comShares Issued & Outstanding: 79,271,349

Canadian Symbol (TSX.V): GOMCurrent Price: $0.38 CAD (August 29, 2016)Market Capitalization: $30 million CAD

German Symbol / WKN: 3G8A / A1XBWD Current Price: €0.25 EUR (August 29, 2016)Market Capitalization: €20 million EUR

Chart Canada (TSX.V)

Chart Germany (Frankfurt)

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ockstone’s early covered precious metals juniors Gold Standard Ventures Corp.

(current market capitalization: $650 million CAD) and Golden Arrow Resources Inc. (market capitalization: $100 million CAD) show quite plainly how strong and fast promising juniors can appreciate, once gold is in a bull market and institutional investors get in for the long haul as being convinced by the development potential and management of a company. However, Canadian gold mining projects typically trade with a premium as being favoured by investors thanks to the absence of currency and political risks while environmental protection enjoys a very high value.

Accordingly, the current market value of Golden Dawn Minerals Inc. ($30 million CAD) still offers substantial appreciation potential, especially when considering that the company is practically fully financed as of yesterday to move into production exceptionally fast. In July, Golden Dawn secured $4 million USD in 2 tranches from US institutional investor RIVI Capital; mainly for the required CAPEX to make the existing infrastructure ready for operation. Previous operators invested more than $40 million into the exploration and infrastructure of the project.

The enclosed graphs show the global trend of strongly dropping grades in existing gold mines (this trend has further intensified since 2012). As a consequence, senior mining companies are increasingly looking for new gold deposits and mines; while being ready, willing and able to pay high prices for take-overs. The number of new gold mines brought into production over the last 10 years in Canada is about 20 only.

The more the gold price rises the more pressure have seniors to act, respectively to buy new gold resources. Golden Dawn may become a highly sought- and fought-after take-over candidate over the next months, whereas it stands out that Kinross has been acquiring large land packages in the same area while being active with a few projects (see map on next page).

RResearch #3 | Golden Dawn Minerals Inc.

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Considering that the impact of the July announced funding on the economics calculated in the recent PEA is minimal, that news was considered to be one the most vital milestones in the history of the company as Golden Dawn has stepped into the enviable position to breathe new life into a past producing mine that ran into financial trouble when gold was trading at $750 USD/oz some 8 years ago (June 2016 PEA states all-in sustaining costs of $820/oz).

With gold trading almost twice as much today, the time for Golden Dawn to prove the profitability of the Greenwood Project has come, whereas CEO Wolf Wiese plans to put both the Lexington-Grenoble and May Mac Mines into dual production this time (both as early as September/October).

As soon as the company has received a blasting permit (expected any day), underground drilling at its 100% owned May Mac Mine is set to commence shortly thereafter. Up to 400 holes with up to 2 rigs have been scheduled to be completed in just 6 weeks. A highly increased newsflow, likely on a weekly basis, is expected. Previous drilling from surface at May

Mac scratched a new high-grade gold vein (up to 9 g/t gold and 525 g/t silver) and as such the upcoming underground drilling may delineate a signifcantly increased resource estimate update.

The June 2016 PEA envisages owner-operated, 5 year underground mine projects encompassing 2 deposits: Lexington-Grenoble containing 356,000 tonnes of mill feed at an average diluted grade of 5.48 g/t gold and 0.90% copper, and Golden Crown with 191,000 t at an average diluted grade of 8.67 g/t gold and 0.48% copper. The PEA study also incorporates expanding the existing 200 t per day (tpd) mill to 400 tpd after the first year of operation. Annual gold production is projected to reach 27,000 gold equivalent ounces (oz) at the expanded 400 tpd rate (~104,000 gold oz equivalents within 5 years).

Rockstone regards Golden Dawn’s projects as exceptionally attractive based on the following reasons:

• The gold price has moved into a new upward trend in early 2016; as such the surrounding conditions for approaching gold producers have improved notably.

• The company was able to secure vital funding agreements in July and yesterday in order to go into production, whereas these fundings originate from convinced institutional investors highly experienced in the resource sector.

• Permits already exist for mining and processing.

• Infrastructure is already in place and intact, including mining equipment, a processing plant and a tailings facility.

• Minimal pre-production development required to commence mine production.

• After-tax IRR of 62% and after-tax NPV of $23.2 million at a 6% discount rate and a $1,250 gold price. With an 8% higher gold price ($1,350), after-tax IRR increases to 75% (+21%) and after-tax NPV increases to $29 million (+25%). Hence, the project offers a major leverage with higher gold prices.

• Production costs (“all-in sustaining costs”) during life of mine stand at $820/oz (including royalties), generating a healthy and robust operating margin of $430/oz with gold selling at $1,250/oz.

Research #3 | Golden Dawn Minerals Inc.

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• Average metallurgical recoveries of 86% for gold and 87.5% for copper at Lexington-Grenoble, and 70% for gold and 82% for copper at Golden Crown.

• Initial capital expenditures (“CAPEX”) of $9.6 million (including a 15% contin-gency, $3.4 million acquisition costs, and $6.3 million working capital needed to start mining from Lexington-Grenoble and processing at the Greenwood Mill facilities).

• Projected payback on CAPEX is a little less than 2 years.

• Gross revenue of $158 million and operating cash-flow of $45 million.

• 91% of the resource is categorized as measured and indicated.

• Excellent potential to significantly ex-tend mine life for both Lexington-Gre-noble and Golden Crown with new ex-ploration, whereas management aims to double to more than 10 years.

• Excellent potential to further increase life of operation with the already fully owned, near-by May Mac Mine (not part of the option agreement with Huakan) and other prospective target areas near-by.

• May Mac has not been considered in the June PEA. This historic mine pro-duced a total of 4,228 t ore, respectively 23 kg gold, 959 kg silver and more than 49 t lead, 26 t zinc and 864 kg copper. The mine is inactive since 1980s. Due to low metals prices, previous exploration had been neglected chronically. Water, electricity, tailings and a mill (100 tpd) exist (fully owned by Golden Dawn), as well as underground shafts and tunnels.

• May Mac Lower Adit: According to his-toric reports, approximately 35 t of ma-terial averaging 318 g/t gold was mined in 1903/1904. A new zone, discovered in 2015 at depth, indicate the remarkable potential for more resources beneath historic mine workings. An underground drilling program is ready to start once a blasting permit has been received. To date, 2 main veins besides 10 other veins, rich in precious and base metals, have been identified.

Research #3 | Golden Dawn Minerals Inc.

Massive gold-copper mineralization at the Lexington-Grenoble Underground Mine

Preliminary Economic Assessment (“PEA“) Highlights as of June 2016:

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Above: The May Mac Mine includes infrastructure and adits.

Numbers shown in the figure to the right are drill hole intercepts. Numbers shown in the figure at the bottom of the page (“Golden Crown Vein System”) are chip samples from surface trenches.

Research #3 | Golden Dawn Minerals Inc.

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Mill Building and Site Area: The facility equipment was cleaned out and properly shut down at cessation of operations in 2008, although some of this equipment requires refurbishment prior to restarting. Auxiliary items, such as electrical and in-strumentation may need alterations or re-pair. A list of the major existing equipment is outlined in below table:

Research #3 | Golden Dawn Minerals Inc.

Primary Ball Mill Larox Pressure Filter for reagents

The Greenwood Mill was built and commissioned in 2008 and is in excellent shape

Conveyor Belts and Mill in excellent condition

Rougher and First Cleaner Float Cells: Golden Dawn‘s state-of-the-art floatation circuit can produce gold doré bars to be sold directly to smelters.

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Disclaimer and Information on Forward Looking Statements:All statements in this report, other than statements of historical fact should be con-sidered forward-looking statements. Much of this report is comprised of statements of projection. Statements in this report that are forward looking include that Golden Dawn Minerals Inc. or any other company or market will perform as expected; that Golden Dawn Minerals Inc. will complete the recently an-nounced transaction; that Golden Dawn Min-erals Inc. or its partner(s) can and will start producing and selling any kinds of products; that the company can raise sufficient funds for a transaction, exploration and corporate matters; that any of the mentioned plans, comparisons with other companies, regions or numbers are valid or economic. Such state-ments involve known and unknown risks, un-certainties and other factors that may cause actual results or events to differ materially from those anticipated in these forward-look-ing statements. Risks and uncertainties re-specting lithium and resource companies are generally disclosed in the annual financial or other filing documents of Golden Dawn Minerals Inc. and similar companies as filed with the relevant securities commissions, and should be reviewed by any reader of this report. In addition, with respect to Golden Dawn Minerals Inc., a number of risks relate to any statement of projection or forward statements, including among other risks: the receipt of all necessary approvals and permits; the ability to conclude a transaction to start or continue exploration; uncertainty of future market regulations, capital expenditures and other costs; financings and additional capital requirements for exploration, development, construction, and operating of a facility; the receipt in a timely fashion of further permit-ting for its legislative, political, social or eco-nomic developments in the jurisdictions in which Golden Dawn Minerals Inc. carries on business; operating or technical difficulties in connection with production or development activities; the ability to keep key employees, joint-venture partner(s), and operations fi-nanced. There can be no assurance that such statements will prove to be accurate, as ac-tual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking in-formation. Rockstone and the author of this report do not undertake any obligation to update any statements made in this report.

Disclosure of Interest and Advisory Cautions: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Rockstone, its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including Rockstone’s report, especially if the investment involves a small, thinly-traded company that isn’t well known. The author of this report is paid by Zimtu Capital Corp., a TSX Venture Exchange listed investment company. Part of the author’s responsibilities at Zimtu Capital Corp. is to research and report on companies in which Zimtu Capital Corp. has an investment. So while the author of this report is not paid directly by Golden Dawn Minerals Inc., the author’s employer Zimtu Capital Corp. will benefit from appreciation of Golden Dawn Minerals Inc.’s stock price. The author owns shares of Golden Dawn Minerals Inc. and Zimtu Capital Corp., and thus would also benefit from volume and price appreciation of its stocks. Hence, multiple conflicts of interests exist. Therefore, the information provided herewithin should not be construed as a financial analysis or recommendation but as advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Rockstone and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Golden Dawn Minerals Inc. has not reviewed the content of this report prior to publication. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect. Please read the entire Disclaimer carefully. If you do not agree to all of the Disclaimer, do not access this website or any of its pages including this report in form of a PDF. By using this website and/or report, and whether or not you actually read the Disclaimer, you are deemed to have accepted it. Information provided is educational and general in nature.

Analyst Profile and Contact

Stephan Bogner (Dipl. Kfm. FH)Mining Analyst Rockstone Research 8050 Zurich, Switzerland+41-44-5862323sb@rockstone-research.com

Stephan Bogner studied at the International School of Management (Dortmund, Germany), the European Business School (London)

and the University of Queensland (Brisbane, Australia). Under supervision of Prof. Dr. Hans J. Bocker, Stephan completed his diploma thesis (“Gold In A Macroeconomic Context With Special Consideration Of The Price Formation Process”) in 2002. A year later, he marketed and translated into German Ferdinand Lips‘ bestseller („Gold Wars“). After working in Dubai for 5 years, he now lives in Switzerland and is the CEO of Elementum International AG specialized in duty-free storage of gold and silver bullion in a high-security vaulting facility within the St. Gotthard Mountain Massif in central Switzerland.

Rockstone is a research house specialized in the analysis and valuation of capital markets and publicly listed companies. The focus is set on exploration, development, and production of resource deposits. Through the publication of general geological basic knowledge, the individual research reports receive a background in order for the reader to be inspired to conduct further due diligence. All research from our house is being made accessible to private and institutional investors free of charge, whereas it is always to be construed as non-binding educational research and is addressed solely to a readership that is knowledgeable about the risks, experienced with stock markets, and acting on one’s own responsibility.

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Research #3 | Golden Dawn Minerals Inc.