SAN GREGORIO MINE GEOLOGY AND DEPOSITS

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Arenal & Arenal Deeps

Summary: the Arenal deposit is the eastern most gold lode along the San Gregorio Shear Zone (SGSZ). Arenal was mined as an open pit to a depth of 200m from October, 2004 until April, 2009. Arenal Deeps is the down plunge extension of Arenal and has recently been the focus of a significant resource drilling program and feasibility study. Arenal Deeps is now referred to as a separate deposit and it is anticipated that it will be mined as an underground operation. Arenal and Arenal deeps are located about 2 kilometers east of the San Gregorio mill and plant where all the ore in the district is processed.

Geology: gold mineralization at Arenal occurs along a moderately south dipping, east-west striking shear zone hosted in Proterozoic granite, monzonite and diorite rocks that have been metamorphosed to amphibolite facies. The mineralization forms discrete zones (lodes) characterized by silica-sericite-carbonate-pyrite alteration and broader areas of silica-pyrite stock-work veining. The shear zone is up to 100 meters wide and is well constrained by hanging wall and footwall structures. Ar-Ar age dating of sercite from the Arenal pit returned a date of 618Ma +/- 5Ma.

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Resource:

In March 2010, the Company announced completion of the updated Arenal Deeps resource estimate. The resource was modeled and estimated by Mine Development Associates and is considered to be NI 43-101 compliant. The 1.5 Au g/t cutoff is highlighted as the current anticipated economic cutoff based on a prefeasibility study produced by Golders & Associates dated 24 September 2009.

The Arenal Deeps exploration and resource definition drilling programs completed 108 RC and diamond drill holes for 34,454 meters during 2008 and 2009. 62% of the holes were diamond and 38% RC and RC pre-collars. The drill programs were based on 25m spaced N-S sections and an attempt was made to keep the drill hole spacing to less than 50m along section resulting in a drill density of approximately 25m x 50m. The deposit is fault-bounded to the west but considered to be still open along strike to the east and down plunge to the SE.

Measured				Indicated
Cutoff	Tonnes	Au grade	Gold	Cutoff	Tonnes	Au grade	Gold
(g Au/t)		(g Au/t)	Ounces	(g Au/t)		(g Au/t)	Ounces
0.3	4,602,000	1.18	174,000	0.3	9,351,000	1.07	321,000
0.4	3,732,000	1.37	165,000	0.4	7,273,000	1.28	298,000
0.5	3,089,000	1.57	155,000	0.5	5,987,000	1.45	280,000
0.6	2,572,000	1.77	146,000	0.6	4,974,000	1.64	262,000
0.7	2,173,000	1.98	138,000	0.7	4,171,000	1.83	246,000
0.8	1,856,000	2.19	131,000	0.8	3,551,000	2.02	231,000
0.9	1,612,000	2.39	124,000	0.9	3,040,000	2.22	217,000
1	1,416,000	2.59	118,000	1	2,587,000	2.44	203,000
1.1	1,260,000	2.78	113,000	1.1	2,195,000	2.69	190,000
1.2	1,128,000	2.98	108,000	1.2	1,901,000	2.93	179,000
1.3	1,017,000	3.17	103,000	1.3	1,654,000	3.18	169,000
1.4	928,000	3.34	100,000	1.4	1,458,000	3.43	161,000
1.5	846,000	3.52	96,000	1.5	1,297,000	3.68	153,000
1.6	777,000	3.7	92,000	1.6	1,181,000	3.89	148,000
1.7	717,000	3.87	89,000	1.7	1,096,000	4.06	143,000
1.8	667,000	4.03	86,000	1.8	1,025,000	4.22	139,000
1.9	625,000	4.18	84,000	1.9	964,000	4.37	135,000
2	586,000	4.33	82,000	2	908,000	4.52	132,000
2.5	438,000	5.04	71,000	2.5	711,000	5.16	118,000
3	351,000	5.6	63,000	3	578,000	5.71	106,000
4	215,000	6.96	48,000	4	398,000	6.72	86,000
5	141,000	8.29	38,000	5	265,000	7.87	67,000
Note: at of end of July 2009 topography

Resource Drilling 2009: More than 22,500 meters of diamond and RC drilling was completed between April and December of 2009 as an infill and extension program to improve and augment the resource reported above. A table with significant intercepts from this program is presented below.

Table of Intercepts for Arenal Deeps from recent program (Apr-Dec, 2009)

Note: Drill hole intercepts are composites of drill widths using a 1 g/t Au cutoff, no grade capping, and may include up to 2 meters of internal waste (samples <1g/t).

HOLE ID	DD Intercept (>1g/t)	FROM
ALDD103	16.1m @ 10.30g/t	341.80
ALDD103	9.7m @ 2.54g/t	362.30
ALDD103	2.25m @ 2.16g/t	402.55
ALDD103	2.25m @ 4.68g/t	433.45
ALDD104	3.1m @ 2.57g/t	241.90
ALDD104	4.95m @ 2.31g/t	246.90
ALDD104	3m @ 2.82g/t	322.10
ALDD105	15.15m @ 2.62g/t	269.35
ALDD106	5.09m @ 2.74g/t	250.16
ALDD107	6.25m @ 5.67g/t	321.80
ALDD107	28.05m @ 3.29g/t	333.95
ALDD107	16.2m @ 1.44g/t	366.60
ALDD107	2.6m @ 1.97g/t	393.05
ALDD108	31.05m @ 11.78g/t	295.80
ALDD108	18.45m @ 3.62g/t	357.90
ALDD109	3.2m @ 2.45g/t	295.55
ALDD109	23.65m @ 2.67g/t	308.90
ALDD110	14m @ 5.22g/t	289.70
ALDD110	2m @ 3.61g/t	325.75
ALDD110	6.3m @ 1.66g/t	367.60
ALDD111	18.6m @ 2.74g/t	317.90
ALDD112	13.9m @ 2.85g/t	243.20
ALDD112	16.35m @ 4.52g/t	268.15
ALDD112	5.25m @ 3.00g/t	294.30
ALDD112	10.9m @ 2.62g/t	314.55
ALDD112	1.8m @ 2.71g/t	336.10
ALDD113	29.25m @ 4.76g/t	333.40
ALDD114	2.2m @ 3.19g/t	316.30
ALDD114	3.9m @ 1.83g/t	324.60
ALDD115	4.7m @ 1.53g/t	277.45
ALDD115	3.7m @ 2.69g/t	294.75
ALDD116	7.55m @ 3.20g/t	272.15
ALDD117	6.6m @ 3.20g/t	239.90
ALDD118	6.8m @ 6.49g/t	216.50
ALDD118	1.5m @ 14.10g/t	226.30
ALDD118	7.95m @ 1.93g/t	240.00
ALDD120	19.45m @ 7.59g/t	345.25
ALDD120	10.25m @ 5.80g/t	370.40
ALDD120	6.65m 1.38g/t	388.00
ALDD120	7.2m @ 2.61g/t	417.00
ALDD120	5.1m @ 2.35g/t	442.35
ALDD121	8m @ 1.20g/t	285.20
ALDD121	3.20m @ 1.87g/t	302.90
ALDD122	2.5m @ 7.95g/t	295.85
ALDD123	7m @ 1.40g/t	256.80
ALDD123	2m @ 2.50g/t	270.85
ALDD125	4.1m @ 3.09g/t	275.10
ALDD127	2.99m @ 2.83g/t	357.21
ALDD127	8.98m @ 1.26g/t	368.82
ALDD127	15.75m @ 2.36g/t	389.05
ALDD128	1.2m @ 4.68g/t	277.40
ALDD128	8.74m @ 2.53g/t	296.95
ALDD128	14.35m @ 3.04g/t	309.50
ALDD129	6.35m @ 2.46g/t	223.85
ALDD129	14.8m @ 4.05g/t	235.20
ALDD130	9.55m @ 1.71g/t	366.60
ALDD131	6.35m @ 1.56g/t	337.45
ALDD132	14.5m @ 4.33g/t	446.90
ALDD132	3.85m @ 5.41g/t	472.25
ALDD132	3.75m @ 2.44g/t	483.35
ALDD133	11.1m @ 1.88g/t	356.50
ALDD134	1.6m @ 4.93g/t	302.20
ALDD135	2m @ 3.10g/t	399.30
ALDD135	7m @ 1.55g/t	408.70
ALDD136	4.6m @ 3.74g/t	406.10
ALDD136	4m @ 2.17g/t	413.70
ALDD136	4.5m @ 3.85g/t	451.00
ALDD137	5.3m @ 2.79g/t	281.90
ALDD138	7.75m @ 2.21g/t	309.85
ALDD138	20.3m @ 1.46g/t	321.45
ALDD138	11.35m @ 1.48g/t	347.10
ALDD138	3.75m @ 1.27g/t	364.45

Resource Update: Mine Development Associates (MDA) was commissioned in May 2009 to complete a final Resource Estimate for Arenal Deeps. MDA received the final drill hole database and geological interpretation in January 2010. The updated Resource Estimate is anticipated to be completed by March 2010.

Exploration & Development plans: It is planned to continue drill testing the shear zone to the east of the Arenal open pit. The Arenal and Arenal Deeps deposits clearly plunges southeast to depth however the shear continues striking to the east and is considered still open and prospective for additional mineralization; additional gold lodes could be found along strike to the east along the SGSZ. The feasibility study on the Arenal Deeps underground project continues to advance on schedule and is anticipated to be completed in Q1F2010.