COPALQUIN PROJECT Au, Ag (High grade Veins and large tonnage deposit of low grade) MUNICIPALITY TAMAZULA, DGO.

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1 COPALQUIN PROJECT Au, Ag (High grade Veins and large tonnage deposit of low grade) MUNICIPALITY TAMAZULA, DGO.

2 CONCESSIONS TITLE SURFACE La Soledad Has El Cometa Has San Manuel Has Copalquin Has El Sol Has El Corral Has Total 7005 Has HOLDER Compañía Minera Copalquin, S.A. de C.V. All lots are currently in force and up to date in the payment of taxes and all it s obligations.

3 El Sol and El Corral (left), inside of El Corral are La Soledad, El Cometa, San Manuel and Copalquin (right).

4 Location and Access From Parral, Chih., by paved road to El Ocote (235 Km), from el Ocote by paved road to Las Banquetas (70 Km), from Las Banquetas to Guajolotes by unpaved road (20 Km), from Guajolotes to Copalquin walking through mule track approximately 13 kilometers. Flight from Culiacán, Sin. to Copalquin (20 minutes). From El Alizal (Durazno airstrip) to Copalquin (5 minutes)

5 Copalquin airstrip and helicopter landing on area of El Cometa

6 RELEVANT DATA The concession are located on National Land( can be bought to the Nation), very low population density, without timberland and no Ejidos. Another attraction is the security in the area and no conflicts with other owners or concessions of the land (they do not exist). It needs to be done approximately 13 Km. of dirt road to come up with vehicles. There is a landing strip for light aircraft. Route of passengers of Culiacan there is daily (20 min flight). The line of electric energy is 28 km. approximately. The creek of Copalquin carries enough water throughout the year, does not dry, as well as the others creeks that drain the area. Metallurgical testing by flotation gave recoveries of 83% which indicates that with cyanide these recoveries would rise considerably.

7 Historic Data Copalquin district was probably discovered sometime during the early 1800 s. Numerous pleasures are present throughout the Copalquin and La Soledad, streams, how attest hundreds of Taunas (rock mortar used to grind goldbearing material). This mining district has been worked intermittently since more than 200 years ago. The property is located within the mineral belt of the Sierra Madre in Durango, Mexico. Land package comprises 23 historically productive mines of gold and silver within its boundaries. Historically, Copalquin is a district of high grade Au and Ag, type bonanza. The potential for outbreaks of high-grade ore and additional exploitable deposits of large-tonnage open pit, Au-Ag is excellent. Previous extensive sampling programs performed by IMMSA (1983), Alta Pimería (1995) and Kennecot (1995) outlines a potential target of a million ounces of gold and 50 million ounces of silver deposited on the property within the formation of low-grade horizontal quartz breccia. The property has a series of parallel ridges of the failure breccia of more than 3 km. In 1935, the company Minera CIBOLA developed several mines with the recommendation by Mr. J.W. Patterson. In 1933 CIBOLA reported reserves of 147,000 tones with grades of 14.5 g/t Au and 590 g/t Ag. The ore was milled using a 3-stamp mill of 74 t/d in Santa Maria as 1.5 km down the Copalquin stream. Total production, mainly of San Manuel and El Cometa mines probably did not exceed 35,000 tones.

8 The mining district of Copalquin is reputed to have produced of quartz veins and breccias of veins, at least 250,000 ounces of gold and 11 million ounces of silver from 336,000 tons mined before Much of this production was before the Mexican Revolution (pre- 1920), and most came from only 5 mines: San Manuel, Los Reyes, El Refugio, La Soledad and El Cometa, all of which are located within the Copalquin property. Resources of veins and vein breccias, as indicated by surveys and mapping under the ground (more than 900 samples), totaled 435,625 tones with grades of 12.7 g/t Au and 539 g/t Ag (178,000 oz Au and 7.5 oz Ag). La Soledad is the largest of the historical mines at Copalquin and according to Wilkins 1998, total mine production was approximately 200,000 ounces of gold and 8 million ounces of silver from an estimated 136,000 tons of material. The mineralized zone outcrops in an open cut to 1104 m (above sea level) and was developed in four underground levels (1100, 1043, 976, and 950 m). Around a long section prepared 1935 (Wilkins, 1997) represents a single undercut 35 to 75 meters wide that extends approximately 140 m to down-depth. Wilkins (1997) reported a historic average grade drawn from the order of 50 g/t Au and 2,300 g/t Ag.

9 The total production of the district is unknown, but several good estimates are available. The estimated production of the 3 main mines, as indicated by the extensive mining and assay of pillars and veins is as follows: Mine Tonnes Au g/t Ag g/t Au oz Ag oz El Refugio 33, , ,900 La Soledad 112, , ,400 San Manuel 10, , , Total 155, , ,200 Minimum total production would be 6 214,000 grams (200,000 ounces) of gold and ,000 (8.67 million ounces) grams of silver. The production of CIBOLA estimated around 35,000 tons with 543,750 grams ( ounces) Au and 2.21 million grams (700,000 ounces) Ag.

10 Another remarkable production came from Los Reyes and La Constancia mines. Of the 18 remaining mines, all have very limited production or exploration work. The tonnage mined, including the tonnage of 20 other mining operations in the district was estimated by IMMSA (1983) of 286,247 tons. The San Manuel mine was operated from about 1970 to 1985 by Mr. Francisco de la Rocha Tagle of Culiacan, Sinaloa. The production was only approximately 10 t/d and only for about 100 days per year with approximately 15,000 tons of total production. The total production of the property exceeds the 336,000 tons with at least 250,000 ounces of Au and 11 million ounces of Ag. Copalquin was a district bonanza of Au-Ag with significant production. Assayed samples and maps of Patterson (1935) were reproduced in the report of IMMSA. Assay verified by IMMSA (1983) gave good to excellent correlations with the assay of Paterson. In total, 900 samples were cut and tested. In addition to sampling of veins, numerous examples of breaches of rock walls were cut in any side of the veins and stockwork and breccias in other sites. Patterson work shows that the highest production occurred before 1935 and probably in 1910 pre-revolution times. The study of Alta Pimería reports exploration potential of 800,000 ounces of Au in only 4 mines as follows: El Refugio 200,000, La Soledad 200,000, El Cometa 200,000 and San Manuel 200,000.

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12 On the property is located machinery of iron casting as Mills moved by a Pelton wheel based on the waterfall as motive force, manufactured in England in the year of Until today at Copalquin Stream, arriving at the settlement of El Limón, prospectors are washing sand from the stream and retrieve gold with Quicksilver.

13 Flotation beneficiation plant for 10 t/d

14 Geology The Copalquin project is located in the limits of the States of Durango and Sinaloa, in the physiographic province of the Sierra Madre Occidental, in the Pacific slope. Geologically it consists of a sequence of rocks ranging from the upper Cretaceous to Oligocene, wherein a granodiorite with dimensions bato lithic age Eocene intrusion the basement formed by andesites afaniticas and porphyritic, units that emerge due to windows of erosion that has left them exposed by erosion processes on the Oligocene volcanic rocks. All these rocks become observe intruded by dikes of andesitic composition. Quartz veins are in tertiary andesite, which overlap with intrusive quartz tertiary monzonites. The area is affected by hydrothermal events that have produced veins, breccias and zones of stockwork with economic values of gold and silver. From the limited diamond drilling carried out to date and previous mining activity at Copalquin property, it is believed that precious metals mineralization is hosted by a stockwork/breccia quartz tertiary volcanic unit. This unit is flat-lying, of up to tens of meters thick and widespread, occurring in El Cometa, El Refugio (700 meters to the West), La Soledad (500 meters to the North) and elsewhere on the property. This is superimposed by a cap rock dacite component and sustained by volcanic relatively fresh and diorite. The quartz stockwork/breccia unit has high values of precious metal (generally 50 ppb to several grams of gold per ton with associated silver). However, locally within this unit, areas with breccias, faults, sulfidificacion, silification and alterations of chlorite and sericite are intensified. Within these zones, argentite, electrum and free gold occur resulting in mineralization of precious metals of high grade in vertical and sub vertical outbreaks which were previously exploited in El Refugio and La Soledad. The same mechanism seems to be associated with high grade mineralization that is been finding in El Cometa.

15 Main bodies containing gold in La Soledad and San Manuel are veins of white quartz, usually with enough dip (50-65 ), and confined to the pyroclastic (andesites and latites) rather than granodites (quartz monzonite). The vein of El Cometa is rather superficial (40-45 ) and Los Reyes virtually horizontal (10-20 ). Of particular importance seems to be a breccia flooded of silica which was seen occupying the hanging wall of El Cometa, La Soledad, San Manuel and Los Reyes, but only where the vein has economic mineralization of gold or silver. Forseille mapping in El Cometa-La Soledad Crest shows a breccia very scattered silicified occurring as outcrops. There are suggestions that this breccia is a containing of gold and silver, which means that this could be a primary target of exploration. The direction of the veins seems WNW to NW, with NNW to NS with remarkable faulting post mineralization. Wilkins recorded mineralogy economic as free gold, electrum, argentite, tetrahedrite, pyrite and Ruby Silver (pirar girite), with traces of galena, and their oxidation products. Veins and breccias are predominantly quartz, with lower calcite and adularia. Statistical work in the geochemistry of Kennecott shows low, but anomalous values of Pb, Zn, and low background of As, Sb, Hg and Bi associated with AU-AG mineralization. The geometry of the veins is very variable. There are two systems of veins pronounced well developed, a long area of shallow dip stockwork veins and several more isolated shallow dip structures.

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18 Mine area zones Photos

19 Results of Diamond Drilling Exploration

20 Bell Coast Capital Corp. Explore from late 1997 to early 1999 Complete an extensive program of geochemical sampling and mapping in four target areas at the property including a recognition of mapping and sampling of the underground works. Highlights of this program include the emergence of three large anomalies of gold identified by samples of soils and rocks taken in one grid detail. Two mining previously without map were also identified in the crest of Los Reyes. All samples were assayed for Au (by fire assay) and Ag (Acua Regia-AA) by Chemex Labs in Vancouver. Two anomalies occurred on the crest of Los Reyes approximately 350 meters apart. The anomaly in the North is about 100 square meters and is centered around a mine previously unknown 350 meters north-west of the mine of Los Reyes, which seems to be an extension of the main mineralized zone. A sample of section 1.2 meters along the breccia of quartz zone returned a value of 6 g/t Au. As in Los Reyes, quartz breccia is angle low and near the surface presenting a potential deposit extended to large-tonnage open-pit. The second anomaly is 200 meters long and 100 meters wide and encompasses the Los Reyes mine. This also includes an underground work previously unknown 25 meters North of the Los Reyes mine, the entrance of which was covered by overgrowth. This new mine was developed by 100 meters of tunnels which are still to a zone of silicified breccia. A sample of 2 meters through this area assayed > 10 g/t Au. This area appears to be related to the area of Los Reyes since it also has a signature of low angle. This can represent a structure of enriched transverse failure of gold which was previously observed in the Los Reyes mine. Surveys taken from outcrops above the Los Reyes mine are all anomalous in gold. A rock sample essay 2.5 g/t Au over an interval of 1 meter.

21 A third area of anomalous runs from El Cometa mine to the mine of La Soledad covering 400 meters long and ranging from 100 to 200 meters wide. Another Crest northward parallel to the crest of La Soledad is highly anomalous with many quartz breccia fragments exposed on surface. Eleven samples of outcrop of 1 meter or more sections of the brecciate within this anomalous area assayed between 0.1 and 2.2 g/t Au with a sample close to La Soledad assayed 8.4 g/t Au. A significant silver anomaly was identified during the study of recognition on the crest of a kilometer in length between El Cometa and Los Reyes. This Crest hosts two small-scale mines, Copalquin and Zaragoza and has been relatively unexplored. Based on these results and previous data, a program of 31 holes of diamond, 2500 meters, was completed in November The diamond drilling was carried out in 4 areas, El Cometa, La Soledad, Los Reyes and El Refugio. The results more encouraging were in El Cometa area, intersections of high and low grade were cut, a sample of 90 cm of the drill hole DDH EC-2 gave 949 g/t Au, in a section of meters with 96.9 g/t Au and 704 g/t Ag. Other various sections mineralized in this area were in excess of 34 g/t Au. Logs of El Cometa area drilling cores identified a large breccia of quartz flatlying with local vertical expressions. High and low grade Au-Ag mineralization along this breccia. The mineralization is complex but appears to be structurally controlled with several faults intersected in all holes drilled. Further drilling will be required to follow the trend of the zones of high grade which occur near the surface and are relatively easy to exploit.

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24 El Cometa The EC-2 hole near El Cometa mine intersected 25 meters of breaches of quartz stockwork overlain by 15 meters of andesitic breccias. A bonanza zone was intersected 25 vertical meters in depth, major intersections in table 2 are summarized below. Using a breakpoint of 0.02 oz/t of gold equivalent, the hole intercept meters averaging 2.4 oz/t Au and 22.8 oz/t Ag, within which this a section of high grade averaging 8 oz/t Au and Ag oz/t 73 above 4 meters. The gold occurs as free gold within the fault zone and gold smoky quartz and fractures in the adjacent rock wall. El Cometa was originally considered a target for large tonnage low grade within a breccia of quartz stockwork flat and lying. The grades of bonanza seem to occur along a fault zone vertical transverse to the quartz of low-grade horizontal breccia. This interpretation corresponds to 80 meters of drifts and cross-cutting work and small undercuts of production observed in El Cometa mine. Mine initially followed a breccia of quartz lying down and then run into gold and silver rich in vertical structures. This interpretation also corresponds to work underground in the mine of El Refugio located 700 meters west of El Cometa. There is evidence in EC-11 that failures play a significant role not only by moving the high grade shoots, but also perhaps in finding high values in the vein.

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26 El Refugio Three drill holes were completed from a platform North of the works at El Refugio, approximately 450 meters west of El Cometa. Control of lifting in this area was poor and an attempt was made to locate the establishment of drilling with respect to the work surface. The proposed drilling holes were located to intersect the northeastern horizon from the works of El Refugio quartz stockwork/breccia. Underground works were intercepted in the inclined holes ER-29-30, however the ER-31 vertical hole intercept and ended in a zone of silification of 78 meters wide with gold and silver mineralization (0.22 g/t Au and 5.8 g/t Ag), which shows, and is the first evidence of the potential for a target of epithermal type of large tonnage low grade in the area of El Refugio. The combination of this area significantly altered and mineralized adjacent to mineralization of high-grade work of El Refugio would indicate that the potential for a target gold and silver epithermal at El Refugio. Further drilling will be required to define this extensive and interesting target. La Soledad A total of 5 drill holes were tried in La Soledad from the top of the ridge above the mine works. Drilling holes were located to test the Northwest extension of the mineralization observed in the underground, but due to bad conditions (dangerous) in parts of the underground work, only field workers could study the accessible portions of the work. While best efforts were made to drill out the previously mined areas, the work proved to be more extensive to that indicated by the study, and work underground were intercepted by holes. Future drilling in the mine of La Soledad should be below the previous work which may not be exploited through outdated extraction methods used in the past. Los Reyes Three holes were drilled on the crest of Los Reyes above the works of mine and all found no mineralization. This further suggests that the mineralized structures occur as vertical shoots which are then moved along fractures within the breccia of quartz.

27 This is a cryptic of Bell Coast Capital Corp. from Copalquin project. They withdrew from the project since they no longer had funds and they could not get them in the stock market weakened in those years. In addition the prices of gold and silver in those years were very low, they switched to oil.

28 Minera Planet Exploration Ltd. Explore from late 2003 to half 2005 Minera Planet contract UC Resources as operator of the project, made 22 diamond drill holes from 5 drilling rigs. 19 on El Cometa and the last 2 at El Refugio. The initial goal of the exploration program was to verify the high grades of gold and silver reported by Bell Coast at the prospect of El Cometa. The UC-03 drilling hole was drilled to confirm the intersection of high grade reported by Bell Coast (in EC-02). UC- 03 found an interval of 5.52 meters wide with mineralization with grades of bonanza averaging g/t Au and g/t Ag. UC-01 to UC-06 initial drilling holes confirmed the drilling results reported by Bell Coast and also demonstrated that the mineralized zone can be more complex than was previously recognized.

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30 UC Resources Ltd Explore from half 2005 to finals 2007 Bought in 2005 the company Minera Planet Exploration, S.A. de C.V., which had the contract for exploration of the Copalquin project. And he followed with holes UC-23 and UC-24 which concluded the phase I exploration. The UC-24 hole intercept a section of 17.9 meters of mineralization with values of 2.94 g/t Au and g/t Ag. Phase II exploration began in late 2005 with a program of satellite imagery (ASTER), which identified multiple high-priority targets approximately 3 kilometers to the East of the target area El Cometa-El Refugio. The objective of this program was to determine if mineralized with outcrops areas, specifically the target areas Cometa-Refugio, had a distinctive signature. ASTER images clearly delineated an extensive zone of alteration probably kaolinite-alunita (clay alteration zone) which coincides with an area mapped of kaolinite alteration between the prospects El Cometa and El Refugio. This style of alteration is typical of the upper levels of an epithermal vein system and results of the program clearly supports the current geological model that predicts that El Cometa and El Refugio are part of a mineralized area more extensive. These areas may represent an extension of the epithermal system at Copalquin or they may represent parts of a previously unrecognized epithermal system. These areas require detailed mapping, geochemical sampling and if guarantee it diamond drill later.

31 Results of geochemical sampling and ditching have clearly shown that the known mineralized zones extend more beyond the limits defined by previous drilling. They have extended the length of the course in the area of breccia zone mineralized in El Cometa-El Refugio more than one kilometer. Initial geochemical sampling of soils in the southeast of El Cometa returned values of 860 ppb Au (0.86 g/t) of an area located more than 100 meters of any previous drilling. A series of 4 holes have been proposed to delineate the extent of mineralization in this area and to begin to delineate the extension of the depth of the area. In addition to the mineralization identified in the area El Cometa-El Refugio seems that there is potential to expand the overall size of the epithermal system identified at Copalquin. Historical reports describe similar, mineralization hosted by breccias in Los Reyes (approximately one kilometer to the East) and satellite imagery data have identified several areas with the same signature of clay alteration associated with mineralization in the area of El Cometa. Overview of satellite imagery, groundwork geological and geochemical studies suggest the potential expansion zones mineralized by more than 4 kilometers east of El Refugio and more than 2 kilometers to the West of El Cometa. Geological maps published by SGM show occurrences of gold and silver that extend further along the extension projected from known areas and suggest a target area for exploration of approximately 10 km long.

32 They performed compile studies that indicate that many mineralized intervals reported by both BCC and MP-UC in the area of El Cometa actually represent only the sections of high grade zones within much wider of low-grade mineralization. For example, the hole drilling UC-14 reportedly intercept 11.6 meters of mineralization averaging 3.01 g/t Au and g/t Ag. An inspection of the information from the assay shows that the area of global mineralization in UC-14 actually average 0.76 g/t Au and 73.1 g/t Ag over 51.2 meters. It is important to note that with the same conversion factor used by Gammon Lake (65:1) this intersection of 51.2 meters average 1.9 g/t Au equivalent. Other examples of drill holes drilling in the area of El Cometa which intercepted broad zones of mineralization, including the UC-01 which intercept range of 31.4 meter-wide average 0.41 g/t Au and 40.8 g/t Ag. The hole drilling EC-10 of BCC reportedly intercept 6.9 meters of mineralization averaging g/t Au and 352 g/t Ag. Information of the log core and the assay of drilling holes prepared by BCC show that the intercept reported actually forms part of a range of 23.5 meters wide that average 8.42 g/t Au and g/t Ag. This confirms the potential for large-tonnage deposits (Bulk tonnage deposits).

33 7 holes were made in phase II of the exploration program. The first two DDH and clearly endured the model that the mineralization of gold and silver in El Cometa and El Refugio is located within areas of silicified breccias and stockwork which are not isolated occurrences, they form part of a mineralized system more extensive than was previously recognized. The drilling hole was drilled perpendicular to the vein of La Soledad and an inclination of 50 and was completed when he found underground works at a depth of 100 meters was drilled in the same azimuth than but with 70 inclination and found the continuation of the structure area vein/breccia of La Soledad to a depth of between and m and was completed to a depth of meters. It which is believed was drilled approximately meters below the existing works at the mine, an area found mineralized of 5.15 meters wide containing quartz, breccia silicified andesite, native gold and acanthite (silver sulfide ore). The mineral area average 44.6 g/t Au and 1,564 g/t Ag. Within this area there is a section of 1.75 meters wide which averages g/t Au and 4,337 g/t Ag. The true width of the mineralized zone is believed to be 95% of this reported interval. This interception mineralized clearly shows that the mineralized zone of La Soledad is open at depth. This interception is the first completed hole under the mine works of La Soledad drilling ever and it is important to point out that the potential extensions of the strike of this mineralized zone never have been tested.

34 Assay within the mineralized zone are as follows: Depth (meters) Au g/t Ag g/t to to , to , to , to ,240 In phase III of the exploration program 6 drills were programed in the area of La Soledad. The MP drill hole situated in a Canyon, approximately 42 meters west of hole intercept 6 meters of an mineralized breccia zone of tectonic quartz vein with observable native gold, native silver, argentite and pyrite, including a stockwork quartz vein system in an andesite-fine-grained Tuff. The 6 mineralized meters averaging g/t Au and 1,597 g/t Ag. The initial section of 2.45 meters of sample averaged g/t Au and 3, g/t Ag. The true width of the mineralized zone is undetermined at this point in the exploration of the system of veins in La Soledad. The hole drilling MP also intercept the main structure of La Soledad, approximately 50 meters west of the hole MP The observed Geology (identify minerals: gold, silver and argentite) of the 4.68 meters from intersection of this second hole was similar to that of the hole MP MP azimuth 220, - 70 dip appointed to cut the structure of the Soledad 25 meters to the West of the 06-07, return 6.93 g/t Au over 4 meters (112 to 116) before entering the historical works. At the end of 2007 we cancel them the exploration contract because they unfulfilled 6 clauses of it.

35 Pembrook Mining Corp. Through its subsidiary in Mexico, Paget Southern Resources by 2014 make 2 visits of recognition Only rock samples have been taken by Paget Southern Resources on the project to date. The veins have grades of Au-Ag very variables with several important areas indicated by the veining. In general, the veins bring high Ag-Au with very little common metals or other indicators elements. It concludes that all systems of veins, San Manuel, La Soledad and Huicho, have returned significant although erratic grades of gold and silver from surface sampling. La Soledad (50 g/t Au) historical production reports and the reported drilling results of El Cometa and La Soledad all suggest at least local outbreaks of very high grade gold. Intervals of drilling and sampling of surface in the Cometa-Refugio area also support the possibility of a thick zone of m of disseminated mineralization The steeper vein systems are well developed with some wide ore shoots over short strike lengths (50 70m) The superficial and deep area of the Cometa-Refugio may be part of a much longer zone stretching to Los Reyes, and La Fragua. Mapping detailed, sampling of soils of the area probably develop some excellent goals especially in the area of La Fragua and La Santa Cruz (mines which, to date, have not been studied). The concessions block guarantees a further modern systematic exploration including mapping, sequence of sediments and soil sampling. After Henry Marsden (Vice-President of exploration) last visit, very optimistic with the project, said that in late February they would make us a proposal to contract Copalquin, unfortunately at this time the directors of the company decided to close its offices and projects in Mexico, since now they could not get more resources in the stock market by the known current situation, and the resources that they currently had, them are going to use it to finish two projects more advanced which came already exploring for 4 years in Peru.

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39 The Council of Mineral Resources (SGM) in the Geological Mining Monograph of the State of Durango highlights: They are several structures, being deposits vein type and Pype breccias with turmalite and pegmatite that need to be explored in depth. The perspectives for the Copalquin district are considered of interest based on the values of gold and silver that has exploded in the past and the attractive thicknesses in some veins and Pype breccias, so it is considered a prospective and attractive area to explore for gold ores. The prospect El Sol (previously National Mining Reserve San Jose del Desierto) has possibilities to be a deposit of high tonnage of molybdenum, tungsten and copper.

40 Conclusions Copalquin has historic production and previous producing mines, allowing leverage in exploration. Looking for gold and silver with high grade near previous producers mines, such as La Soledad mine, which resulted in the discovery of a mineralized zone with average of 1.4 oz/t gold and 50 oz/t Silver. The potential for additional high-grade ore shoots and deposits of large tonnage open pit gold and silver is excellent. The geological and exploration results are indicative of a great potential, of the open-pit system (typical of the epithermal type systems). Some of the bigger producers in the world are, in fact, open-pit mines, with low grade ore. The Epithermal system also contains deposits vein type of high-grade, which can potentially be mined with an underground mine, or recovered as part of a large open pit mine. The system is in trend with other major discoveries along the Sierra Madre in Mexico, which is one of the belts in the world most prolific of mines of gold and silver. Previous drilling programs have confirmed mineralization with economic potential in three main areas, El Cometa, El Refugio and La Soledad. All mineralized zones that have been tested are open at depth and along on strike and clearly guarantee further drilling tests. On the property there is a total of 23 historical mines.

41 Drilling clearly shows that the alteration and the silification associated with epithermal system is extensive and penetrating. Many of the mineralized intervals reported by both BCC and UC actually represent only the sections of high grade zones within much wider zones of lowgrade mineralization. In addition to the areas that have been tested, available data suggest that the extension of the epithermal system at Copalquin may be much more extensive than previously recognized. Copalquin is a epithermal prospect of low sulphidation very attractive for exploration, at early stage, for gold and silver. Based on the above, we dare to assure that Copalquin has great potential, which you are looking for (quality and quantity).

42 We are searching for: Our interest is that you visit the project, see their potential, confirm existing information and take their own samples and conclusions. We intend to the negotiation of an exploration contract with option to purchase, based on a price per ounce of Au or cubed equivalent, but we are open to discuss any other proposal for negotiation in this regard.

43 Contact Compañia Minera Copalquin, S.A. de C.V.

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