The El Centenario Au-Ag Project

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1 Municipality of Santiago Papasquiero State of Durango, Mexico By: Alain R. Charest President and CEO of Arcelia Gold Corp Thursday, 5 th of May 2011

2 El Centenario

3 Location of the El Centenario Project SINALOA DURANGO

4 General Description of the El Centenario Project 1. The El Centenario Property consists of 12 adjoining mineral concessions totalling 9,846 hectares in size. 2. There is good road access from the City of Durango up to the towns of San Juan de Camarones and San Jose de Canas just east of the Property (8 hours drive). There is another road going through Topia that accesses the northwest corner of the Property. 3. The Property has been owned and sporadically mined on small scale by the same family who own the claims today for more than 60 years. 4. Although the Property is located in some of the most rugged terrain found in the Sierra Madre Occidental it contains extensive vestiges of old mine workings, some dating back to the 1700 s. The Property was never systematically explored until 2007.

5 History of the El Centenario Project - Field evidence suggests that some mineral prospects on the El Centenario Property, especially the high-grade Au- Ag structures have been exploited sporadically, at smallscale, since the Spanish Colonial days. - The Torres Meza family, who have controlled the mineral claims for the last 70 years, have pursued artisanal, smallscale mining on some of the high-grade structures such as Santa Margarita, La Trinidad and Lluvia de Oro. - A more systematic, reconnaissance exploration program, which included stream sediment, rock-chip and channel sampling and semi-detailed mapping on 3 specific areas of the property, was completed in 2007 and 2010.

6 The El Centenario Au-Ag Project Geology of the El Centenario Project LITHOLOGY Sedimentary Rocks (sandstones, conglomerate, shales, etc.) Lower Volcanic Series (andesite tuffs and flows) Upper Volcanic Series (rhyolite tuffs, flows, etc.)

7 The El Centenario Au-Ag Project Structures and Lineaments at the El Centenario Project

8 Structures and Lineaments at the El Centenario Project

9 Major Prospects on the El Centenario Project 1. La Esperanza (1.) La Esperanza (2.) Sta. Margarita San Juan de Camarones

10 The La Esperanza Ag-Au-Pb-Zn Prospect - Epithermal high-grade Ag-Au-Zn-Pb structure similar to Fresnillo PLC s La Cienega mine 20 km to the N-NE. - Sructure widths varying between 2 and 10 meters - Traced more than 2 km along strike and open at both ends. Only 1 km away from access road.

11 The La Esperanza Ag-Au-Pb-Zn Prospect SELECTED SERIES OF ROCK SAMPLE ASSAYS FROM THE LA ESPERANZA PROSPECT, EL CENTENARIO PROJECT Width Au(g/T) Ag(g/T) Au Eqv.(g/T) Zn(%) Pb(%) Cu(%) 1.6m m m m m m m m grab

12 Major Prospects on the El Centenario Project 2. Sta. Margarita (1.) La Esperanza (2.) Sta. Margarita San Juan de Camarones

13 The El Centenario Au-Ag Project The Sta. Margarita Au-Ag Prospect In 1966, the CRM (Consejo de Recursos Mineros de Mexico) and Sr. Filiberto Torres have mined 10,000 tons of high-grade material from a portion at the south end of the Sta. Margarita structure. TABLE 2. Gold and Silver geochemical assay results, CRM (Consejo de Recursos Mineros) 1966

14 The Sta. Margarita Au-Ag Prospect 0 500m EL CENTENARIO Sta. Margarita Prospect Epithermal Au-Ag Vein system GEOLOGY PLANMAP 14

15 The Sta. Margarita Au-Ag Prospect High grade Au-Ag low-sulfidation epithermal vein system with extensive vestiges of old workings N-NE trending host structure has been traced for more than 2 km along strike and remains open at both ends. Mineralized structure outcrops along a significant vertical extent, more than 500 meters. The intersection of a secondary highgrade, NW trending structure, located south of the main branch, represents a priority target.

16 The Sta. Margarita Au-Ag Prospect

17 SELECTED SERIES OF ROCK SAMPLE ASSAYS FROM THE STA. MARGARITA PROSPECT, EL CENTENARIO PROJECT WIDTH Au ppm Ag ppm Au Eqv. ppm Zn ppm Pb ppm Cu ppm 1,30 37,40 20,60 37, ,30 31,20 121,00 32, ,30 26,50 25,90 26, ,20 19,10 10,10 19, ,00 15,90 110,00 17, ,40 12,50 3,00 12, ,35 140,00 14, ,7 0,80 12,10 81,60 13, ,10 9,38 39,60 9, ,35 8,90 36,70 9, ,40 8,30 42,20 8, ,20 7,84 51,20 8, ,00 6,98 32,60 7, ,94 98,90 8, ,20 6,92 119,00 8, ,30 6,79 62,10 7, ,20 6,50 36,90 7, ,60 6,25 10,90 6, ,70 4,81 189,00 7, ,50 4,04 1,00 4, ,00 3,93 5,00 4, ,20 3,45 39,70 4, ,25 3,36 3,70 3, ,60 3,26 6,40 3, ,60 3,19 2,30 3,

18 General Geology of the El Centenario Project 3. Cerro de Oro (1.) La Esperanza (2.) Sta. Margarita San Juan de Camarones

19 The Cerro de Oro Au-Ag Prospect

20 The Cerro de Oro Au-Ag Prospect

21 The Cerro de Oro Au-Ag Prospect Multiple high grade Epithermal Ag-Au vein structures (more than 10 known to date). Old records from 1950 s mention the existence of more than 50 mineralized structures along the banks of Rio Boca del Infierno. The mineralized structures extend more than 1 km along strike. Some have significant vertical extent, greater than 500 meters. Extensive old Colonial times mine workings (dating back to 1600 s). Other mineralized targets at Cerro de Oro need to be evaluated including a broad zone of disseminated Ag mineralization. The abundance, extent, depth potential and grade of the Au-Ag bearing structures within this prospect suggest the presence of significant Au- Ag resources at Cerro de Oro

22 The Cerro de Oro Au-Ag Prospect: La Trinidad

23 The Cerro de Oro Au-Ag Prospect: La Quemada

24 The Cerro de Oro Au-Ag Prospect

25 The Cerro de Oro Au-Ag Prospect Lluvia de Oro La Trinidad