SAN GREGORIO MINE GEOLOGY AND DEPOSITS

CASTRILLON

Summary: The Castrillon deposit is located 11km north by road from the San Gregorio plant and mining activities were initiated there during H2F2009.

Geology: The Castrillon gold mineralization occurs along a 3-5m wide quartz-pyrite vein hosted in the Sobresalientes potassic granite intrusive. The vein dips moderately to the northwest and can be traced for 300m along strike and 100m down dip.

Resource: Golders and Associates completed a resource estimate of the Castrillon deposit in June, 2009 and reported 165Kt @ 1.3g/t for 7,000oz Au (0.5g/t cut off

SOBRESALIENTES

Summary: The Sobresalientes deposit is hosted in the Sobresalientes potassic granite intrusive (614Ma +/- 4Ma) and is 10km north of the San Gregorio Mine Complex. There is evidence of some small scale historic mining. Resources have been defined and a recent exploration program indicates potential for additional mineralization.

Geology: Sobresalientes may be loosely described as porphyry like in that it is hosted entirely within a broad structural zone within the intrusive and the gold mineralization is associated with disseminated pyrite as well as quartz-pyrite stock works and sheeted veining. Outboard of the identified resources there are partially explored sub-parallel, gold bearing quartz veins and mineralized rhyolite dykes that have kilometer scale strike lengths and significant potential for additional resources.

Resource: The Sobresalientes resource is comprised of the 3 separate pods. Mine Development Associates (MDA) completed a resource estimate in July 2007 and reported 492Kt @ 1.13g/t for 18Koz Au.

Exploration and Development plans: The Sobresalientes deposit is scheduled for mining in F2012 and metallurgical test work will continue due to a lower than average recovery compared to other deposits in the district. A significant exploration drilling program is planned to define additional resources in this highly anomalous area.