Buy

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Scarsdale Equities LLC Member FINRA, SIPC

Mike Niehuser Analyst 1 (503) 922-3191 [email protected]

Otis Gold Corp. is expanding its Kilgore Gold Project in eastern Idaho. Recent highgrade drill results have improved the prospects for a larger and higher grade gold deposit. We are initiating research coverage with a Buy rating. Kilgore gold project profile: Otis Gold Corp.’s (TSX VENTURE: OOO, OTC: OGLDF, “Otis Gold”) 100% owned Kilgore gold project is about 60 miles north of Idaho Falls, Idaho, and 90 miles west of a regional hot spot near the nexus of Idaho, Wyoming and Montana. This stationary hot spot under the North American plate, created openings for heated mineralized fluids. The project is situated on the northeast margin of the Kilgore Caldera, which originated at this hot spot. This is one of the latest in a succession of rhyolite eruptions that have occurred over the last 20 million years, and formed the Snake River flood basalts, which extend to the southwest to northern Nevada and southeast Oregon. The project’s 4,120 acres are situated on U.S. Forest Service land with good infrastructure and access to labor and equipment. The project has no underlying royalties and annual holding costs of about $30,000. Summary of the Kilgore Gold Project: • The project has an Indicated resource of 520,000 ounces of gold, grading 0.59 g/t gold, and an Inferred resource of 300,000 ounces of gold grading 0.46 g/t gold. • Recent high-grade gold drill results in the “Crab Claw” includes hole 15 OKR-309

Otis Gold Corp. TSX – V: OTC: Rating: Price Target: Price (7/7/16): 52-Week Range: Ave. volume (3 mos.): Cash(1): Debt(1): Market Cap: Enterprise Value: Shares Outstanding: Shares Diluted: 3Q16 Rev(1): FY15 Rev: Insider Owners Institutional Owners

OOO OGLDF Buy C$0.50 C$0.18 C$0.05-0.19 100,475 C$0.7M C$0.0M C$19.4M C$18.7M 107.9M 136.1M US$0.0M US$0.0M 19.5% 0.0%

(1) As of March 31, 2016

Stock Performance

intersecting 94.5 meters of 4.21 g/t gold which ended in mineralization. • Gold mineralization is primarily contained within oxidized host rock with very favorable column leach tests achieving recoveries of up to 85.5%. • The Otis Gold team appears to have established constructive relationships with the U.S. Forest Service and local stakeholders. We believe that the drill results from Otis Gold’s 2015 drill program have potentially unlocked the full opportunity of the Kilgore Gold Project. While the higher grade drill results in the “Crab Claw” should lead to an updated gold resource estimate at a higher grade and contained ounces, the drill program has highlighted the importance of fully exploring the underlying Aspen Formation. In a caldera setting, with the 2015 drill results in combination with a favorable geochemical profile, the Aspen Formation of the Kilgore Gold Project presents the potential of the multi-million ounce Round Mountain Mine in Nevada. We are initiating research coverage of Otis Gold with a Buy rating and price target of C$0.50 per share.

Source: Worden

Company Description Otis Gold Corp. is headquartered In Vancouver, B.C., with offices in Spokane, Washington, and four gold projects in Idaho including the Hai, Gold Bug, Oakley and the subject Kilgore Gold Project.

See Page 19 for analyst certification and important disclosures. Scarsdale Equities does and seeks to do business with companies covered in research reports. Investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.

Scarsdale Equities LLC

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Investment Thesis: 2015 Drill Program Suggests the Potential for a Dramatic Increase at Kilgore Otis Gold Corp.’s (TSX VENTURE: OOO, OTCQX: OGLDF, “Otis Gold”) 2015 drill program included 19 reverse circulation (RC) drill holes totaling 3,267 meters to test northern extensions of the existing Kilgore Deposit. All 9 of the drill holes from the “B Road,” testing the previously undrilled “Crab Claw,” including four holes (15 OKR-304, 305,308 and 309) with intercepts of 50 to 95 meters, reported “very high average gold grades ranging from 2.05 g/t to 4.24 g/t, intercepted gold mineralization.” Potentially more important, six of the drill holes (15 OKR-302, 303, 304, 308, 309 and 310) penetrated the underlying Aspen Formation and ended in mineralization. Otis Gold geologists believe that drill results in and around the “Crab Claw” “clearly indicate strong potential to discover additional higher-grade mineralization, both laterally and certainly at depth.” Otis Gold’s management remains “extremely optimistic about additional expansion potential in the North Target [“Crab Claw”].” In our opinion, the possibility of additional gold mineralization in the Aspen Formation, underlying the entire Kilgore Deposit, has the potential to resemble Kinross Gold Corporation’s (NYSE: KGC) Round Mountain Mine in Nevada. Kilgore Gold Project, Northeastern Idaho

Source: Analyst, November 21, 2012

The Kilgore Deposit has a 27.4 million tonne Indicated resource grading 0.59 g/t gold with 520,000 ounces of gold, and a 20.2 million tonne Inferred resource grading 0.46 g/t gold with 300,000 ounces of gold. Otis Gold management believes that the resource estimate for the Kilgore Deposit could be increased by reinterpreting the existing resource estimate and including the addition of the 2012 and 2015 year drill results. The proposed 2016 drill program has the potential to both increase grade and contained ounces and reveal the potential for additional exploration of the Aspen Formation underlying the entire Kilgore Gold Project. A resource estimate update with further exploration and development work should build upon a number of positive existing characteristics of Otis Gold’s Kilgore Gold Project. • • • • • • • • •

Established Kilgore Gold Deposit is open to expansion along trend and at depth. Previous studies concluded potential for a low waste-to-ore strip ratio. Preliminary metallurgical results suggest potential for heap leach gold recovery. Substantial infrastructure provides access to labor, equipment, supplies and power. Stable political environment amenable to responsible modern mining techniques. Absence of provocative environmental or cultural/archeological issues. Well established and effective management and geologic team. Additional exploration targets are emerging at the Kilgore Gold Project. Additional precious metal projects in Idaho with monetization potential. 2

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Brief Summary of the Region and Kilgore Gold Project Geology The northwestern United States has in recent geologic time been an area of exceptional activity from rifting and tectonic plate movement. In the last 20 million years (in the Miocene age), rifting in the Great Basin (primarily Nevada) and tectonic plate movement over a “hot spot” (primarily Idaho), led to rifting and volcanic activity, creating both the structural conditions and the formation of numerous low-sulfidation gold deposits. In both instances, this occurred in an area of ancient seas and lakes filed with sediments between 65 and 145 million years old (in the Cretaceous period) that formed the sedimentary basement rock, often a host for mineralization. In addition, the movement of the North American Plate to the west/southwest over a stationary hotspot created the conditions for rifting and volcanic activity, and explosive rhyolitic eruptions (leading to the present day in the Yellowstone Caldera). These eruptions accounted for the formation of calderas, with cracked and fractured rock forming the plumbing system, and a heat source for powering mineralized fluids into porous or vacuous areas, under which the right chemical conditions form deposits. Tectonic Regime in Western United States (Volcanism forming the Snake River Plain and low-sulfidation gold deposits in the Northern Great Basin)

Source: Otis Gold Corporate Presentation, dated March 2016, Saunders and Hames, 2005

Mitch Bernardi and Dr. John Carden said “the [Kilgore Gold] Deposit is part of an extensive zoned low-sulfidation quartzadularia epithermal hot-spring system hosted in volcanic rocks of Late Miocene age. Gold mineralization is of the classic disseminated, bulk-tonnage type analagous to the classic and world-class size volcanic-hosted gold deposits at Round Mountain, Nevada… age determination on hydrothermal adularia tentatively dates mineralization at 5.3 Ma (Late Miocene).” The Kilgore Gold deposit is situated in the northeastern portion of the Kilgore Caldera, an area of lithic and tuffaceous pyroclastic units and flows overlying deformed basement sandstones (clastic sediments) of the Aspen Formation of the Cretaceous age. Mineralization is mostly controlled by the northwest trending Northwest Fault associated with parallel trending dikes and dike swarms. Mineralization appears to be structurally controlled by dikes and sills and contained within the porous ashy tuff units and basement sandstone and siltstone of the Aspen Formation.

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Summary of the Kilgore Gold Project Area Location and Description The Kilgore Gold Project is on the northern margin of the eastern part of the Snake River Plain about five miles northwest of the community of Kilgore, Idaho. This is in a mountainous region between the Snake River Plain to the south, and the Centennial Mountains to the north that forms the Continental Divide in this part of the Rocky Mountains. The Elevation of the Kilgore Gold Project ranges from about 6,400 feet (1,951 meters) to 8,400 feet (2,560 meters). On our visit in late November of 2012, we noted distinctly warmer temperatures in surrounding lowlands, compared to colder temperatures with snow cover, a short distance into the project, at what seemed to be slightly higher elevations. The average climate of the Kilgore Gold Project includes cold, snowy winters and warm, dry summers, with average annual precipitation of 28.7 inches, though with little monthly variation throughout the year. The majority of the precipitation falls as snow, from October to March, and later as rain from April to September. The snowmelt begins in April and is complete by early June. There are a number of creeks in the vicinity of the Kilgore Gold Project which flow into the Cabin Creek watershed, including Mud Lake, which is a sink basin with no surface water outlet. This is a positive consideration for potential mine development, as water is available for a potential mining operation without being subject to any drainage containing restricted or environmentally sensitive streams, rivers or waterways. Kilgore Project Location, Clark County, Idaho

Source: Otis Gold Corporate Presentation, dated March 2016

The Kilgore Gold Project, at higher elevations, is forested, while the lowlands are comprised of meadows and range land. The land underlying the Kilgore Gold Project has been previously logged. Otis Gold geologists note that there were no plants species located which were under the protection of the endangered Species Act in Clark County. The report and Otis Gold management made no comment on endangered animal species or archeological or cultural issues. Otis Gold management reports there are ranchers in the low flat-lying areas around the project who are favorable toward the eventual development of a mine at Kilgore. A power line runs about one mile from the Kilgore Gold Mine project. Clark County is the least densely populated county in Idaho, with a population of only 982 people (U.S. Census, 2010). As of 2010, per capital income was US$22,518, with 19.9% of the county’s population living under the poverty level. The unincorporated community of Kilgore is about five miles from the project. The nearby town of Spencer, about ten miles from Kilgore, and the “Opal Capital of America,” has a population of about 40 individuals. Dubois is the largest community and county seat of Clark County, and is about 20 miles from the Kilgore Gold Project, with a population of 677 people. The town of Dubois is a full service community with access to fuel, food and lodging. There is adequate access to the Kilgore Road Project by paved road. In addition, the Union Pacific Railroad parallels the north trending U.S. Interstate Highway 15, through nearby Spencer, Idaho.

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

The Kilgore Gold Project Description The Kilgore Gold Project consists of 182 unpatented federal lode mining claims (with mineral and surface access rights) and one State Lease located on U.S. Forest Service land, Caribou-Targhee National Forest, Idaho. Otis Gold acquired the Kilgore Gold Project in 2008 from Bayswater Uranium Corporation, in addition to other Idaho-based assets. A title review in 2012 did not find any royalties, back-in rights, payments, environmental liabilities or other encumbrances related to the Kilgore Gold Project. Otis Gold recently acquired claims in flat areas to the north of the project for locating a potential operating plant, heap leach pads and tailings storage areas. Kilgore Gold Project Claim Map

Source: Otis Gold Corporate Presentation, dated March 2016

Summary of the Kilgore Gold Project Operating and Exploration History The earliest reported gold exploration and operation at the Kilgore Gold Project dates back to 1937 by Blue Ledge Company. There is no official record of production, though there were reports that miners removed and stockpiled from “only a few carloads of material” to “considerable ore of commercial value” in 1937. There is evidence on site of previous activity including underground adits, prospect pits, a concrete structure that is either a mill foundation or ore storage facility and a tramway. Interesting to us, Otis Gold management notes that an adit near an old cabin is situated at a lower elevation near the Cabin Fault, which is located in an area where the Aspen Formation comes to surface. Otis Gold management said that earlier exploration in this area encountered high grades but was inconsistent, which we believe may account for the mining of ore for a short duration. Mining ceased with the commencement of World War II, when all mining for materials not deemed essential to the war effort were terminated by the U.S. Government. Recent Exploration Activities at the Kilgore Gold Project Prior to Otis Gold Four exploration and mining companies completed 122,257 feet (37,264 meters) in 190 holes at the Kilgore Deposit and around the Kilgore Gold Project. This includes 5,220 feet (1,591 meters) by Bear Creek Mining in 1984 and 1985, 15,750 feet (4,801 meters) by Placer Dome U.S. (“PDUS”) from 1990 to 1992, 9,155 feet (2,790 meters) by Pegasus Gold in 1993 and part of 1994, and 44,193 feet (13,470 meters) by Echo Bay Exploration (“EBX”) from 1994 through 1996. The goal of these programs was to identify a million plus ounce gold deposit with open pit and heap leach mining potential. No

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining drilling on the Kilgore Deposit was completed from 1996 to 2008 when Otis Gold took ownership and commenced exploration and development. These companies prior to Otis Gold completed widely spaced drilling between 200 feet (61 meters) and 400 feet (122 meters) in the Mine Ridge core area of the Kilgore Deposit. In addition, the consistency of the drill program to identify a bulk mining target was challenged by the climate and topography. It is interesting that intercepts of gold mineralization varied significantly. Drill hole results suggesting potential for bulk tonnage include PDUS hole K 90-7 intercepting 0.86 g/t gold over 97.5 meters, PDUS hole K 91-2 intercepting 1.16 g/t gold over 70.1 meters, PDUS hole K 91-9 intercepting 2.09 g/t gold over 53.3 meters, and PDUS hole K 92-4 intercepting 1.06 g/t gold over 99.1 meters. Later higher grade results were identified in Pegasus Gold hole 93 PK-56 intercepting 37.4 g/t gold over 27.4 meters, including 216.7 g/t gold 4.57 meters. While these results confirmed the attraction of the Kilgore Deposit for development, they did not easily correlate with varying classification of rock types identified by numerous geologists by these individual companies. This is important for building a comprehensive and meaningful geologic model to understand the Kilgore Gold Deposit. Otis Gold’s Exploration and Resource Estimation and Project Development The three target areas that traverse the Northwest Fault include the Gold Ridge Prospect to the northwest, Prospect Ridge to the southeast, and the Kilgore Deposit (Mine Ridge) in the center. Most of the drilling completed by earlier operators and Otis Gold was in the Mine Ridge area of the Kilgore Deposit north of the Cabin Fault. From 2008 to 2011, Otis Gold completed a total of 67,935 feet (20,707 meters) at the Kilgore Gold Project of which 64,404 feet (19,630 meters) were targeting the Kilgore Deposit. All of these 99 holes drilled by Otis Gold were core drill holes. (Of the 193 holes drilled prior to Otis Gold, 86 of these or about 45% were core drill holes.) Otis Gold drilled 2,083 feet (635 meters) in 2008, 10,243 feet (3,122 meters) in 2009, 21,832 feet (6,654 meters) in 2010, and 30,246 feet (9,219 meters) in 2011. (Please see page 17 for 2011 Mine Ridge and Prospect Ridge Drill Core Hole Map.) Metallurgical Test work on the Kilgore Deposit Prior to Otis Gold, in 1995, EBX completed a number of metallurgical tests on mineralized material from the Kilgore Deposit. EBX completed eight (8) 96-hour bottle roll tests of mineralized material including oxide (88.8% and 87.2% gold extraction), oxide dominant (92.3% and 92.2% gold extraction), sulfide dominant (94.8% and 82.9% extraction) and sulfides (93.3% and 94.0% gold extraction). EBX also completed 60-day column leach tests on oxide ore, mixed ore and sulfide ore, extracting 94.3%, 80.8% and 63.8% of the gold, respectively. Interestingly, in 1996 EBX completed additional column leach tests over a 75-day period on mixed oxide material and achieved recoveries of over 85.5%. This suggested that the ore might be less sensitive to crush size and that higher recovery could be achieved with less crushing and a longer leaching time. More test work was suggested, particularly for the potential to achieve higher recoveries of gold with less crushing, and thereby reduce costs, though with a longer leaching time. Otis Gold performed a variety of metallurgical test work on the Mine Ridge area of the Kilgore Deposit which appeared to replicate and build upon work completed by EBX. The test work focused on mineralization from the Felsic Dike (~28% of the deposit) and Lithic Tuff (~65% of the deposit), which accounted for about 93% of the Mine Ridge area of the Kilgore Deposit, and achieved recoveries of 85.3% and 81.0%, respectively. The crush size for the initial testwork by Otis Gold was at one-half inch. Later, Otis Gold increased the crush size to 1.5 inches and noted that there was not a significant reduction in recoveries, suggesting that further test work may consider up to run-of-mine material. It is apparent that mineralized material from the Mine Ridge area of the Kilgore deposit is less sensitive to crush size and may achieve similar or slightly higher recoveries with longer leach times. 6

Scarsdale Equities LLC

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Otis Gold 2012 Resource Estimate for the Kilgore Gold Deposit A number of resource estimates were completed from the early 1990s prior to the establishment of National Instrument Standards. In 2002, Rayner & Van Brunt completed the first initial NI-43-101 compliant Indicated resource estimate of 7.043 Tons, (~6.39 million tonnes) grading 0.031 opt (~1.0 g/t) gold, or 218,000 ounces, with an Inferred resource of 9.661 Tons (~8.76 million tonnes), grading 0.028 opt (~0.9 g/t) gold, or 269,000 ounces.

Source: NI 43-101 Technical Report dated February 28, 2008 and entitled "Blue Hill Creek Gold Project - Geology, Mineralization, Resource Potential, Cassia County, Idaho" and NI 43-101 Technical Report "dated July 31, 2012 and entitled Resource Estimate for the Kilgore Gold Project."

The resource estimate completed in 2012 included an increase in contained gold ounces, but with a larger increase in tonnage at an overall lower grade for both Indicated and Inferred classifications. Otis Gold management believes that this was possibly due to an imperfect resource calculation methodology, compounded by an incomplete understanding of the geologic model of conditions of mineralization. For these reasons, Otis Gold’s geologic team reviewed and relogged significant amounts of earlier drill core to increase the consistency, and improve the identification and classification of rock types to complete a comprehensive and meaningful geologic model. We believe that with an improved geologic model, plus drill results from the 2012 and 2015 drill programs, an improvement in grade (relative to the proportion of tonnage) in the resource estimate is likely, along with an increase in contained ounces. Otis Gold Exploration and Mine Development Subsequent to the 2012 Resource Estimate At the conclusion of Otis Gold’s 2011 drill program, Otis Gold’s management concluded that the Main Ridge area of the Kilgore deposit remained open to the north, northwest, southeast and at depth. Two of its most shallow and best holes included drill hole 11 OKC-258 with an interval of 114.3 meters grading 0.89 g/t gold, including an 80.8 meter interval grading 1.1 g/t gold, and drill hole 11 OKC-259 with an interval of 118.8 meters grading 0.89 g/t gold, including 36.5 meters grading 1.65 g/t gold. The continuing success toward the north end of the deposit clearly suggested the direction for later drill programs. Summary of Otis Gold’s 2012 Drill Program Otis Gold’s 2012 drill program consisted of completing six (6) reverse circulation holes in the North Target area of the Mine Ridge Area, intending to follow up on its 2011 drill program. All six holes drilled were mineralized, four of which were near surface and extended over 100 meters. Highlights included drill hole 12 OKR-291 with an intercept of 82.3 meters grading 0.95 g/t gold, drill hole 12 OKR-292 with an intercept of 121.9 meters grading 1.04 g/t gold, including 45.7 meters grading 1.52 g/t gold, and drill hole 12 OKR-294 with an intercept of 83.8 meters grading 1.12 g/t gold, including 30.5 meters grading 2.10 g/t gold. These results, in addition to earlier drilling by Otis Gold, continue to lead to the north and the emergence of the “Crab Claw.” 7

Scarsdale Equities LLC

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Environmental Assessment and Permitting a Plan of Operations In early 2013, Otis Gold submitted a Plan of Operation (POO) to build new access roads to conduct up to 7,000 meters of reverse circulation and core drilling from 12 drill sites. The drill program was intended to extend the Kilgore Deposit an additional 400 meters beyond the northern limit of earlier drilling and into an area with an identified gold anomaly. This would also allow for mapping and bulk sampling of road cuts, and establishing ground water wells disturbing up to 1.8 acres. Only three parties submitted comments to the plan, which provided them “standing” to file an objection to the decision. An Environmental Assessment (EA) was deemed to be an adequate level of study to consider approval of the POO. Coincidentally, Otis Gold commenced baseline groundwater studies at the Kilgore Gold Project. On October 8, 2014, the U.S. Forest Service completed an EA and filed a draft “Decision Memo and Finding No Significant Impact.” Otis Gold management said that two of the three parties with standing offered no comment on the decision. Otis Gold accommodated the remaining party by adding noise baffles to the drill rigs and nighttime drilling umbrellas to reduce any potential impacts on wildlife. Otis Gold is also supporting a U.S. Forest Service white bark pine reforestation program which is ultimately aimed at enhancing grizzly bear habitats in other areas of Idaho. Otis Gold’s management views the accommodations to be reasonable and constructive for future activities. On January 9, 2015, the U.S. Forest Service provided formal approval to complete the drill access roads and complete the 2015 drill program. Otis Gold’s 2015 Drill Program is Likely to Take the Kilgore Deposit to a New Level We believe that Otis Gold’s 2015 drill program has the potential to take the Kilgore Gold Project to an entirely new level. Earlier drilling was focused on distinguishing the potential for a bulk mining operation in the Felsic Dike Lithic Tuff. Efforts were also limited in the North Target area by permitting to the North Road. Approval of the POO allowed for the construction of roads A, B, C and D with the potential of developing a resource in the previously untested “Crab Claw.” Kilgore Deposit 2015 Drill Hole Location Map

Source: Otis Gold Press Release, dated January 14, 2016

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Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Summary of Otis Gold’s 2015 Drill Program In the Fall of 2015, Otis Gold completed a total of 19 reverse circulation holes totaling 10,719 feet (3,267 meter) to test the northern extension of the Kilgore Deposit. This was where “step out drilling in 2011 and 2012 encountered multiple drill intercepts ranging from 82.3 to 118.3 meters in thickness and having grades ranging from 0.57 to 1.12 g/t gold.” Drilling was completed on B Road and C Road. C Road tested a gold soil anomaly supported by earlier soil sampling. Drilling from C Road was disappointing and was believed to have chased gold that had floated down from above. Accordingly, drill results from above on the B Road, in the previously untested “Crab Claw,” encountered higher-grade bulk tonnage intercepts including the following.  15 OKR-304, 56.4 meters of 2.05 g/t gold (ending in mineralization)  15 OKR-305, 59.5 meters of 3.79 g/t gold  15 OKR-308, 50.3 meters of 4.24 g/t gold (ending in mineralization)  15 OKR-309, 94.5 meters of 4.21 g/t gold, plus 51.8 meters of 0.64 g/t gold (ending in mineralization) Other longer intercepts include drill hole 15 OKR-296 with 100.5 meters of 0.60 g/t gold, and drill hole 15 OKR-302 with 100.0 meters of 0.57 g/t gold (ending in mineralization). High grade results from the 2015 drill program necessitated an update of the geologic model. Kilgore Cross Section 12,600N presents a view of mineralization open to the northwest, and possibly even more important, high grade interval of drill hole 15 OKR-309 penetrated the Aspen Formation at depth and ending in mineralization. To Otis Gold’s geological team’s credit, several of these longer intercepts ending in mineralization exceeded the drill-hole target depth, but were continued based on alteration noted at the drill rig.

Kilgore Cross Section 12,600 N cutting the “Crab Claw” (note drill hole 15 OKR-309 in sandstone and shale of Aspen Formation ending in mineralization)

Source: Otis Gold Press Release, dated January 14, 2016

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Potential Insights generated by Otis Gold’s 2015 Drill Program In addition to identifying further mineralization to the northwest, five of the B Road drill holes ended in mineralization, presenting an opportunity for increasing the resource at depth in the North Target area. Importantly, these holes ending in mineralization bottomed in the Cretaceous Aspen Formation basement sedimentary rocks. Otis Gold reports that “these rocks are mostly siltstones, sandstones and shales with calcareous and carbonaceous matrix material and, as such, are highly reactive to mineralizing fluids and therefore contain significant potential to expand the Kilgore resource with further drilling.” It is also interesting to note that these results (as seen in Kilgore Cross Section 12,600N) occurred in an uplifted mineralized block, raising speculation for potential mineralization to the southeast where the Aspen Formation is more likely to continue under volcanic rocks. At this point, we remind readers of the earlier historic gold mining activity at the southeast end of the Kilgore Deposit where the Aspen Formation may have come closer to the surface.

Kilgore Long Section LS-1 (cuts lengthwise from southeast to northwest along the Kilgore Deposit)

Source: Otis Gold Press Release, dated January 14, 2016

It appears to us that based on earlier understanding of the Kilgore Gold Deposit, lacking a more complete understanding of what could be the currently evolving geologic model, most of the exploration focused on locating both gold mineralized intercepts to support bulk mining and potential near surface higher grade areas to establish a starter pit. The Otis Gold geologic team is now recognizing a potential doming feature under the core of the Kilgore deposit which could indicate an intrusive center or rhyolite dome. We are interested in what appears to potentially be consistent higher grades of mineralization in what was referred to as the “crystal tuff.” While thought of as mineralized volcanic ash, it may actually be an altered, and potentially mineralized, contact zone of the underlying Aspen Formation buried under volcanic rocks. In this zone, it may contain optimal conditions for mineralization and gold deposition.

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

2016 Drill Program and Additional Project Development of the Kilgore Deposit A primary focus of Otis Gold will be to update their geologic model of the Kilgore Deposit. This is certain to include further interpretation of previous exploration activities and additional drilling at the “Crab Claw” in the North Target area. Otis Gold’s management team anticipates a drill program in 2016 to consist of about 35 drill holes totaling up to 7,500 meters. While this drill program may be entirely completed from existing permitted roads, the program may be limited by access to funding. We anticipate that the 2016 drill program, in addition to the contribution of earlier work not included in the previous resource estimate, should lead to a significantly improved resource estimate update and completion of a future initial Preliminary Economic Assessment.

Proposed 2016 Kilgore Deposit Drill Program

Source: Otis Gold Technical Presentation, “Advancing Gold Projects in Idaho,” dated April, 2016

As a practical perspective, they anticipate commencing drill holes with reverse circulation and then converting to core drilling to further test mineralization at depth. We understand that the 2016 drill program will include three objectives; define and infill the “Crab Claw” from B Road and the North Road, test the deeper underlying Aspen Formation east of the Mine Ridge Fault underlying the Mine Ridge area, and to the southwest of the Northwest Fault and into the “quartz porphyry cap.” We see Otis Gold’s plan for 2016 to be an indicator of their conviction or their current understanding based on new information revealed by the 2015 drill program. We discussed future plans for the Kilgore Deposit with Otis Gold management. Otis Gold plans to update the geologic model and resource estimate in early 2017, with a Preliminary Economic Assessment to potentially be completed later in the year. As we viewed the project based on our visit in 2012 to be modestly economic, given subsequent work and plans for 2016, we expect a more economic project should emerge. We find it interesting that the U.S. Forest Service suggested that Otis Gold put together a three to four-year plan, with a parallel course for mine development. This course would allow work to progress without having to reclaim drill roads and sites and streamline additional permitting with the U.S. Forest Service.

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Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Kilgore Deposit Conceptual Development Program

Source: Otis Gold Technical Presentation, “Advancing Gold Projects in Idaho,” dated April, 2016

Management Discussion We assess the quality of management teams primarily by the duration of their common experience. This includes both on the subject project and earlier activities. Otis Gold was co-founded by Otis Gold President and CEO Craig Lindsay, Project Geologist Mitch Bernardi and Dr. John Carden. In addition, Dr. Carden and Otis Gold Chief Geologist Mitch Bernardi have worked together on the Kilgore Gold Project while operated by Otis Gold since its founding, and while they were both at Echo Bay Corporation from 1992 to 1996. Clearly, the current Otis Gold management team has demonstrated the ability to work effectively together and have credibility, given their time at the Kilgore Gold Project and other experience. Craig Lindsay is a co-founder of Otis Gold, and serves as its President and Chief Executive Officer. Mr. Lindsay has over 20 years of experience in corporate finance, investment banking and business development. Mr. Lindsay is also currently Managing Director of Arbutus Grove Capital Corp., a private company offering corporate finance and merchant banking services. Mr. Lindsay was a founder and President of Magnum Uranium Corp. until its merger with Energy Fuels Inc. in 2009. Previously, Mr. Lindsay was a Vice President in the Corporate Finance and Investment Banking Group at PricewaterhouseCoopers LLP. Mr. Lindsay is a Chartered Financial Analyst, and received an MBA from Dalhousie University and a Bachelor of Commerce degree from the University of British Columbia. Mitch Bernardi M.Sc Geologist is a co-founder of Otis Gold and serves as Project Geologist. Mr. Bernardi has nearly 40 years of experience in the mining industry with a record of discoveries in gold, zinc, copper, yttrium, rare earths, and uranium. Previous to Otis Gold, Mr. Bernardi was employed by Latitude Minerals, Echo Bay Mines, Cyprus Metals Exploration, Meridian Minerals, Unocal – Molycorp, Inc., Amoco Minerals, and Magnum Uranium Corp. Mr. Bernardi has an M.S. Degree in Geology, and received a B.S. Degree in Geology, and Graduated Magna Cum Laude at Western Washington University. In addition, Mr. Bernardi is the senior author/co-author of seven scientific journal and technical geological publications. Dr. John Carden Ph.D is a co-founder and Consulting Geologist to Otis Gold with approximately 38 years experience in exploration management, teaching, and research. Dr. Carden is also currently a Director of Paramount Gold Nevada Corp. (NYSE: PZG). From 1986 through 1998, Dr. Carden was with Echo Bay Mines. Dr. Carden worked as a senior exploration geologist for Exxon Minerals, Atlas Precious Metals, Tenneco, and Echo Bay Mines and later was Director of U.S. Exploration from 1992 until 1998 for Echo Bay Mines. While at Echo Bay, Dr. Carden served as its Director of U.S. Exploration, where he directed the work of two district geologists, eight senior geologists, and a GIS specialist. This

12

Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining group was successful in generating 35 funded projects over a five-year period. Dr. Carden has a Ph.D. in Geology from the Geophysical Institute, University of Alaska, and a M.Sc. degree in Geology from Kent State University. He is a Licensed Geologist in the State of Washington and a member of the American Institute of Professional Geologists and a Fellow of the Society of Economic Geologists. In addition, Dr. Carden is the senior author/co-author of 19 scientific journal and technical geological publications. We spoke with Paul D. Gray, PGeo, who is serving as Otis Gold’s Qualified Person (QP) on an interim basis (please see press release dated June 24, 2016), replacing Dr. Carden. Mr. Gray anticipates that Dr. Carden will resume the role as Otis Gold’s Qualified Person in the coming weeks as paperwork is processed for Dr. Carden’s registration satisfactory with the British Columbia Securities Commission. As Otis Gold’s QP he has reviewed the validity of all of Otis Gold’s disclosures since 2011. This provides an additional source of independent review of Otis Gold. We also note the recent addition of Eric Klepfer to Otis Gold’s Advisory Board. Mr. Klepfer is a Principal of Klepfer Mining Services LLC. He has a significant range of mine permitting expertise in the Western United States, most recently with Mines Management, Inc. (NYSE: MGN) in Montana. Mr. Klepfer has a B.S. in Mining Engineering and Engineering Administration (Michigan Technological University). Discussion of Otis Gold’s Financial Condition Otis Gold is a junior resource company and in the course of business does not typically generate revenues. These types of companies will at times sell investments or projects and receive performance payments. Otis Gold is primarily dependent on raising funds through the sale of its stock to cover operating expenses and complete exploration and development activities. Otis Gold reported Cash balances of C$722,712, and positive net working capital of C$714,826 as of the end of its third fiscal quarter March 31, 2016. On June 30, 2016, Otis Gold announced a straight equity nonbrokered private placement of up to 2,941,176 common shares at a price of C$0.17 per share for aggregate proceeds of up to C$500,000. Funds will be used for advancing the Kilgore Gold Project and for general working capital. Otis Gold will need to raise additional funds in order to complete its objectives in 2016 and will likely sell additional equity or joint venture the project. Our Valuation Approach and Discussion Otis Gold presently has an estimated enterprise value of about C$18.7 million, and including its Oakley project, has total resources of about one million ounces of gold, which implies an a enterprise value per ounce of gold of C$18.7. We anticipate that Otis Gold will complete an updated resource estimate, which will include a reinterpretation of their geologic model plus drill results from 2012, 2015 and possibly 2016. An increase in the gold resource should result in an upward revaluation of Otis Gold’s common stock. We also anticipate that Otis Gold will have completed sufficient development work to produce a Preliminary Economic Assessment not long after completion of an updated resource estimate. We believe it is reasonable to speculate that Otis Gold may increase its resource and complete a Preliminary Economic Assessment within one year. Should Otis Gold increase its resource by 50% and complete a Preliminary Economic Assessment within this time period, and taking into account further dilution to complete the 2016/17 development program, we believe it is reasonable to assign a 12 month target price of C$0.40 to C$0.60 per share for Otis Gold’s common stock.

13

Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Risks and Mitigations Junior resource company stock prices may be more volatile than companies in other industries. From a macro perspective they are impacted by investor sentiment which may drive funds to or from the industry. This may be due to general economic and monetary events which impact sentiment toward the industry or underlying commodity prices. In addition, junior resource companies are also subject to execution risk in an industry which is subject to competition for resources in a highly sophisticated and sometimes antagonistic regulatory or political environment. Junior resource companies may take long periods to develop assets to build shareholder value, and during these long timelines, the macro and micro risks may change substantially. While there are a number of risks which may be identified or not, we believe investors should be attentive to the following with regard to Otis Gold. Risk:

Mitigation:

Risk: Mitigation:

Otis Gold is exposed to the volatility of the gold price. This may not only influence the investor sentiment to supporting shares in the open market but may impact the availability of Otis Gold to raise capital. We believe that gold and resource company stocks may have bottomed early in 2016. We believe general global economic and monetary trends remain favorable for the price of gold and the mining industry. Otis Gold has limited financial liquidity. Should Otis Gold be unable to secure funds it may jeopardize its ability to complete its plans for 2016 or possibly remain viable. Otis Gold management has maintained a lean corporate overhead profile and maintained a reasonably tight capital structure during a challenging capital market. In our opinion, Otis Gold has not fully participated in the recent appreciation in resource company stock prices, certainly not to the extent that the 2015 drill results and interpretation may suggest.

Risk: Mitigation:

Resource exploration is inherently risky and programs may not achieve hoped for results. Drill results achieved in 2012 and 2015 are not included in the current resource estimate. We believe that the reinterpretation of data included in the existing resource and the potential results from a 2016 drill program have good potential to add to shareholder value.

Risk:

Junior resource companies are subject to the laws and regulations in which they are attempting to advance and develop their project. Otis Gold’s Kilgore Gold Project is located in the mining friendly jurisdiction of Idaho in the United States. Otis Gold appears to have a track record of working with the U.S. Forest Service to advance the project. The Kilgore Gold Project does not appear to have any issues that would delay or impede further exploration or the eventual development and operation of a mine.

Mitigation:

Investment Conclusion We believe that with the potential bottoming of the junior resource sector early in the first half of 2016 that investors may be beginning to take a renewed interest in the sector. We anticipate that gold prices will remain at this level or increase over the next several years which may lead to further interest in the resource sector. Should Otis Gold continue to execute on its plans for 2016/17, we assume that it will achieve a higher share price and have success raising additional capital at progressively higher levels, which is important to mitigate shareholder dilution.

14

Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

When we visited the Kilgore Gold Project in 2012, we had a favorable impression of the project and that it had the potential to become a mine. The project appeared to have a scale that would support a modest low-cost mining operation. The project is located within a mining friendly political jurisdiction and did not appear to have any issues that could not be mitigated. Since our visit in 2012, despite challenging capital markets and lengthy permitting, Otis Gold has continued to advance the project. We were particularly impressed with the continual exploration success in the North Target area as early as 2011. The 2015 drill program exceeded our expectations. We continue to believe that with an updated resource estimate, which will include a reinterpretation of the geologic model, plus drill results from the 2012, 2015 and potentially the 2016 drill season, should lead to a significant increase in the resource estimate. We also are interested in additional exploration in the contact zone of the Aspen Formation and overlying volcanic rock. Clearly, Otis Gold has, since our visit, expanded the potential of the Kilgore Gold Project. We believe that Otis Gold’s stock price should benefit from an expansion of its gold resources and further advancement of the Kilgore Gold Project. These ounces should also receive a higher valuation with the completion of a positive Preliminary Economic Assessment. We believe that the increase in ounces and at a higher level may allow Otis Gold’s common stock to trade up to C$0.40 to C$0.60 per share in the next twelve months. This also takes into account the influence of dilution in raising additional capital. We are initiating coverage of Otis Gold with a Buy rating and a target price of C$0.50 per share. Analyst in the North Target are of the Kilgore Gold Project, Idaho

Source: Analyst, November 21, 2012

15

Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Otis Gold Corp Balance Sheet

YE 2012 Jun 30, 2012

(in Canadian dollars)

YE 2013 Jun 30, 2013

YE 2014 Jun 30, 2014

YE 2015 Jun 30, 2015

1Q16 Sept 30, 2015

2Q16 Dec 31, 2015

3Q16 Mar 31, 2016

ASSETS Cash $ Amounts receivable Prepaid expenses and deposi Investment Reclamation deposit Current Assets Reclamation deposits Equipment Investment Unproven mineral interests

1,706,317 $ 16,091 55,568 7,330 1,785,306 11,889 38,499

Total Assets

358,430 $ 4,752 41,112 16,000 7,330 427,624 12,242 29,313

274,813 $ 1,490,357 5,391 18,508 40,508 12,773

$

1,399,567 $ 114,587 11,144

988,451 $ 58,751 11,614

722,712 54,782 25,879

2,518 323,230

1,521,638

1,525,298

1,058,816

803,373

12,242 17,724 5,000 16,286,905

77,709 15,632 5,000 16,558,198

77,709 28,560 1,600 17,250,401

77,709 26,612 1,600 17,407,332

$

18,181,837 $

18,417,086 $ 18,316,626

$

135,668 $ 9,610

15,146,999

15,799,654

12,242 24,097 4,000 16,125,466

$

16,982,693 $

16,268,833 $

16,489,035 $ 17,843,509

$

93,361 $

45,638 $

LIABILITIES Accounts payable Short term loans Current Liabilities Shareholder Equity Total Liabilities and Equity

$

54,861 $

77,994 12,450

50,867 $

88,547

93,361

45,638

54,861

90,444

145,278

50,867

88,547

16,889,332

16,223,195

16,434,174

17,753,065

18,036,559

18,366,219

18,228,079

16,982,693 $

16,268,833 $

16,489,035 $ 17,843,509

18,181,837 $

18,417,086 $ 18,316,626

$

Source: Otis Gold Corp

Otis Gold Corp Income Statement

YE 2012 Jun 30, 2012

(in Canadian dollars)

YE 2013 Jun 30, 2013

YE 2014 Jun 30, 2014

YE 2015 Jun 30, 2015

1Q16 Sept 30, 2015

2Q16 Dec 31, 2015

3Q16 Mar 31, 2016

EXPENSES Investor Relations Share-based compensation Consultants Office expenses Professional fees Travel Regulatory costs Amortization Bank charges Property investigations

$

Total Expenses Loss

$

Other Item Interest income Loss on sale of equipment Foreign exchange Impairment Net loss for the period

127,824 $ 147,829 189,066 177,504 93,271 81,310 27,584 11,883 2,895 12,827

91,293 $ 244,198 179,536 134,111 103,614 87,673 30,165 9,186 1,628 23,802

25,913 $ 89,986 165,117 109,560 112,712 13,495 29,485 7,338 1,678 1,605

871,993

905,206

556,889

(871,993) $

(905,206) $

(556,889) $

9,225

2,174 (549) (485)

8,385 153,985 80,968 55,324 24,502 17,750 6,373 1,410

34,127 $ 268,734 16,584 3,000 11,949 9,171 6,279 2,092 695

348,697

352,631

(348,697)

$

$

(352,631) $

61,404 $ 5,675 42,541 19,733 10,043 23,571 3,956 1,664 980 169,567 (169,567) $

23,905 52,555 26,888 14,235 19,498 6,807 1,953 559 146,400 (146,400)

22,824 170 (28,894) (344,465) (350,365)

(14,354) (5,129)

1,140

(3,834)

(5,531)

(203)

9,260

(1,222,358)

(910,335)

(555,749)

(352,531)

(358,162)

(169,770)

(137,140)

Other comprehensive loss

(12,000)

3,332

84

(7,166)

(5,615)

1,000

(203)

9,260

(3,400)

Comprehensive Loss

$

(1,222,358) $

(910,335) $

(567,749) $

(351,531)

$

(358,162) $

(173,170) $

(137,140)

Net Income

$

(0.03) $

(0.02) $

(0.01) $

(0.01)

$

(0.00) $

(0.00) $

(0.00)

Common Shares Outstanding

44,941,193

50,228,782

Source:Otis Gold Corp

16

55,901,477

62,918,322

100,932,229

106,544,186

107,857,592

Scarsdale Equities LLC Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Source: Technical Report on the Kilgore Gold Project, dated Jul 20, 2012

17

Buy

Scarsdale Equities LLC Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

18

Buy

Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining Disclosure Appendix AUTHOR CERTIFICATION R. Michael Niehuser, the author primarily responsible for this report certifies, with respect to each security or issuer in this report, that: (1) all of the views expressed in this report accurately reflect his own personal views about the subject companies and their securities; (2) part of the author’s compensation may be, directly or indirectly, related to a portion of the commissions generated by Scarsdale Equities LLC [“SE”] in transactions in this or other securities designated for the author’s credit; (3) the author does not receive compensation based on investment banking or advisory services SE might provide to this or any other issuer.

IMPORTANT U.S. REGULATORY DISCLOSURES Fundamental Analysis. The research provided in this report is based on “fundamental analysis”. The investments discussed in this report in some cases will not be suitable for all investors. Investors should use this report as only one input in formulating an investment opinion. Additional inputs should include, but are not limited to, the review of other research generated by a review of regulatory filings, other available news items, and other analyses that may influence the merits of the securities of the issuers discussed.

RATING DISTRUBUTION Covered companies from which Scarsdale Equities LLC has received investment banking compensation within the previous twelve months or from which it expects to receive compensation within three months: Scarsdale Equities LLC Fundamental Analysis Coverage Universe (as of 7/7/2016) Count Percent Investment Banking Relationships Buy Neutral Sell

6 0 0

100% 0% 0%

Count

Percent

Buy

6

100%

Neutral Sell

0 0

0% 0%

Buy:Expected to outperform broad market averages by at least 15%. Neutral: Expected to perform in line with broad market averages. Sell:Expected to underperform broad market averages by at least 15%.

COMPANY SPECIFIC DISCLOSURES All applicable current disclosures on the items referred to in this report are obtainable by contacting Michael Niehuser at (503)307-3188. The following disclosures apply to the securities discussed in this research report: 1 Scarsdale Equities LLC, at the time of publication, does not make a market in any security. 2 The author does not have a financial interest in Otis Gold Corp. (OOO.V) covered in this report. 3 Part of the author’s compensation may consist of a portion of the commissions generated by transactions in this issuer’s securities placed at Scarsdale Equities LLC for the credit of the author. 4 Scarsdale Equities LLC expects to receive advisory or investment banking compensation from the issuer in the next ninety days.

PRICE TARGET METHODOLOGY AND RISKS Otis Gold presently has an estimated enterprise value of about C$18.7 million, and including its Oakley project, has total resources of about one million ounces of gold, which implies an a enterprise value per ounce of gold of C$18.7. We anticipate that Otis Gold will complete an updated resource estimate, which will include a reinterpretation of their geologic model plus drill results from 2012, 2015 and possibly 2016. An increase in the gold resource should result in an upward revaluation of Otis Gold’s common stock. We also anticipate that Otis Gold will have completed sufficient development work to produce a Preliminary Economic Assessment not long after completion of an updated resource

19

Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining estimate. We believe it is reasonable to speculate that Otis Gold may increase its resource and complete a Preliminary Economic Assessment within one year. Should Otis Gold increase its resource by 50% and complete a Preliminary Economic Assessment within this time period, and taking into account further dilution to complete the 2016/17 development program, we believe it is reasonable to assign a 12 month target price of C$0.40 to C$0.60 per share for Otis Gold’s common stock. Junior resource company stock prices may be more volatile than companies in other industries. From a macro perspective they are impacted by investor sentiment which may drive funds to or from the industry. This may be due to general economic and monetary events which impact sentiment toward the industry or underlying commodity prices. In addition, junior resource companies are also subject to execution risk in an industry which is subject to competition for resources in a highly sophisticated and sometime antagonistic regulatory or political environment. Junior resource companies may take long periods to develop assets to build shareholder value, and during these long timelines, the macro and micro risks may change substantially. While there are a number or risks which may be identified or not, we believe investors should be attentive to a specific risks with regard to Otis Gold which included fluctuations in the gold price, capital markets, execution and political risks.

OTHER DISCLAIMERS This report is not directed to, nor intended for use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject SE or its subsidiaries or its affiliates to any registration or licensing requirement within such jurisdiction. None of the material, nor its content, nor any copying of it, may be altered in any way, transmitted to, copied or distributed to any other party, without the prior express written permission of SE. All trademarks, service marks and logos used in this report are trademarks or service marks or registered trademarks or service marks of SE. The information, tools and material presented in this report are provided for informational purposes only and are not to be used or considered as an offer or the solicitation of an offer to sell or to buy or subscribe for securities or other financial instruments. SE in some cases will not have taken any steps to ensure that the securities referred to in this report are suitable for any particular investor. SE will not treat recipients as its customers by virtue of their receiving the report. The investments or services contained or referred to in this report in some cases will not be suitable for you and it is recommended that you consult an independent investment advisor if you are in doubt about such investments or investment services. Nothing in this report constitutes investment, legal, accounting, or tax advice or a representation that any investment or strategy is suitable or appropriate to your individual circumstances or otherwise constitutes a personal recommendation to you. SE does not offer advice on the tax consequences of investment and you are advised to contact an independent tax advisor. Please note in particular that the bases and levels of taxation may change. Information and opinions presented in this report were obtained or derived from sources SE believes are reliable, but SE makes no representations as to their accuracy or completeness. Moreover, SE is under no obligation to inform you if or when data, information, or opinions in this report change. SE accepts no liability for loss arising from the use of the material presented in this report. This report is not to be relied upon in substitution for the exercise of independent judgment. SE in a report may suggest a trading call. Trading calls are short term trading opportunities based on market events and for technical ratings, the relationship of expected return to expected risk based on a set of technical measures. Past performance should not be taken as an indicator or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. Information, opinions and estimates contained in this report reflect a judgment as its original date of publication by SE and are subject to change without notice. The price, value of, and income from any of the securities or financial instruments mentioned in this report can fall as well as rise. The value of securities and financial instruments is subject to exchange rate fluctuation that may have a positive or adverse effect on the price or income of such securities or financial instruments. Investors in securities such as ADRs, the values of which are influenced by currency volatility, effectively assume this risk. In jurisdictions where SE is not already registered or licensed to trade in securities, transactions will only be effected in accordance with applicable securities legislation, which will vary from jurisdiction to jurisdiction and in some cases will require that the trade be made in accordance with applicable exemptions from registration or licensing requirements. Non-U.S. customers wishing to effect a transaction should contact an SE entity, if any, in their local jurisdiction unless governing law permits otherwise. U.S. customers wishing to effect a transaction should do so only by contacting a representative at SE in the U.S.

20

Scarsdale Equities LLC

Buy

Otis Gold Corp. (TSX VENTURE: OOO, OTCQX: OGLDF) – Precious Metals Mining

Any information provided in this communication has been prepared from sources believed to be reliable, but is not guaranteed by SE and is not a complete summary or statement of all available data necessary for making an investment decision. In addition, such information in some cases will be condensed or contain calculated data which should be verified by the recipient. Any information provided is for informational purposes only. To the extent that any financial projections are contained herein, such projections are dependent on the occurrence of future events, which cannot be assumed; therefore, the actual results achieved during the projection period, if applicable, in some cases will vary from the projections. Additional information is available upon request. Write to Mike Niehuser at Scarsdale Equities LLC, 10 Rockefeller Plaza, Suite 720, New York, NY 10020 to obtain additional information or email him at [email protected]

SCARSDALE EQUITIES LLC Mike Niehuser, Analyst Scarsdale Equities LLC 10 Rockefeller Plaza Suite 720 New York, NY 10020 Work: (503)-922-3191 Cell: (503)-307-3188 Fax: (212)-969-9015 Email:[email protected] None of the information contained in this report constitutes a recommendation, solicitation or offer by Scarsdale Equities LLC or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service. The information contained in this report has been prepared without reference to any particular investor's investment requirements or financial situation. Certain transactions give rise to substantial risk and are not suitable for all investors. Information herein may not reflect actual prices or values that would be available in the market at the time an investor may want to purchase or sell a particular security or other instrument. Past performance should not be taken as an indicator or guarantee of future performance, and no representation or warranty, express or implied, is made regarding future performance. The information provided in this message is not provided to and may not be used by any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules, or regulations of any governmental authority or regulatory or self-regulatory organization or clearing organization or where Scarsdale Equities LLC is not authorized to provide such information or services.

21