The Pachapaqui Mine is a silver-lead-zinc-copper mine located in Peru with substantial underground workings and infrastructure. It has proven and probable reserves of 8 million ounces of silver along with lead, zinc, and copper. The mine was previously operational from 1981-1994 and 1997-2004. It has potential to be restarted with minimal capital required to produce around 3 million ounces of silver annually at 1,000 tons per day. Key mining zones on the property contain over 32 million ounces of silver in proven and probable reserves and over 43 million ounces total including inferred resources.

1. Pachapaqui Mine Developed Peruvian Silver – Base Metal Mine

2. Overview Substantial underground workings proven & probable reserves of 8 million ounces silver + lead, zinc, copper 43 million oz. silver resource Little or no exploration conducted many zones remain open Fully operational 800 tpd mill Good infrastructure – power and road Hydro power generation plants on-site

3. History Mine operated from 1981 to 1994 1.6 million tonnes mined with a grade of: Silver - 9.9 oz/tonne, Lead - 2.1%, Zinc - 3.0%, Copper - 0.61% Mine reopened in 1997 - production to 2004 of 106,000 tonnes averaging: Silver - 6.55 oz/tonne, Lead - 7.51%, Zinc - 4.46%, Copper - 0.6%

4. Pachapaqui Mine Location Map The Pachapaqui Minesite is located near the town of Pachapaqui, Peru, 240 kms north of Lima in the province of Bolognesi, department of Ancash.

5. Pachapaqui Mining Claims 48 claim blocks 2,537 Hectares Annual renewal Secure titles

6. Developed Zones Proven and Probable Reserves Only two exploration holes on the five zones. Holes drilled at Requiza intersected mineralization 200 metres below workings. Zone Ag oz/tonne %PB %Zn %Cu Tonnes Arabia 9.74 7.05 7.73 0.86 237,280 Riqueza 21.04 2.67 4.37 1.61 191,790 Sinchi Rocha 5.54 6.96 7.73 0.90 58,053 San Antonio 6.16 7.23 5.70 1.31 91,729 Mantos 5.02 4.46 7.59 0.72 83,210 Tonnes 662,062

8. Projected Economic Parameters NSR US $63.56/tonne Cash Operating Cost: US $39.58/tonne Net Profit : US $23.99/tonne At 1000 tpd the mine will produce approx. 3.0 million ounces of silver per year. Minimal capex is required to produce at 1,000 tpd

9. Mining Camp Workers’ Camp (looking north)

10. Mining Camp Offices and Engineers Camp (looking east)

11. San Martin & San Judas Hydro Stations

12. Current Capacity = 2.5 MW supplies power to operations and town Main Aguaytia transmission line crosses the property Possibility to upgrade plants to generate 12 MW Excess power could be sold into main line Hydro Electric Power Generation

13. Concentrator 800 tonne/day capacity

14. Pachapaqui Mining Zones

15. Pachapaqui Mining Zones Arabia and Requiza zones contain two-thirds of the proven and probable reserves Both zones are fully developed Exploration limited to two holes on Requiza both holes intersected the structure 200 metres below workings grades similar to proven reserve grade

17. Arabia Zone Located in NW limb of Pachapaqui syncline Consists of E-W and NW-SE trending brecciated veins and larger breccia bodies Veins vary from 1-2 meters in width Breccia bodies up to 25 x 15 x 200 m Average grade 10.71 oz/t Ag, 7.45% Zn, 6.78% Pb & 0.85% Cu.

18. Arabia Zone Potential

19. Arabia Zone Potential Historical Ore Development: 3,458 t/vertical m. 200 m depth = 691,600 tonnes at 9.5 oz/tonne = 6,570,200 silver ounces 400 m depth = 1,383,200 tonnes at 9.5 oz/tonne = 13,140,400 silver ounces

20. Riqueza Vein Potential 4280 level Additional 9,000,000 Silver oz 4000 level Additional 6,500,000 Silver oz Current 4660 level 4660 level 6,769,745 oz 380 meters 280 meters Total 22,269,745 Silver oz, DDH #3-96 DDH #1-96

21. Riqueza Mining Zone Located in NE flank of Pachapaqui syncline Consists of E-W trending vertically dipping “fault-fill” `silver rich veins Veins vary from 0.2-2.0 meters in width Veins runs vertically from 4100 m to 4900 m Average grade 22.39 oz/t Ag, 3.94% Zn, 2.33% Pb & 1.64% Cu.

22. Sinchi Roc h a Mining Zone

23. Sinchi Roca Mining Zone 1-2 meter wide base metal vein sub parallel to a fault zone associated with a distinct synclinal axis Cross- faulting has produced two prominent zones or bolsonados Three Pipe shaped bolsonados 40 * 20 m, 25 * 20 m and 10 * 30 m Average grade 5.54 oz/t Ag, 7.73% Zn, 6.96% Pb & 0.90% Cu.

24. Mantos Mining Zone

25. Four Mantos or bedded type replacement bodies Providencia, Matter, Intermedio and Esperanza 1-10 meter width Greater widths potentially allow for bulk mining methods Traced down dip 280 m Average grade 5.18 oz/t Ag, 7.22% Zn, 4.57% Pb & 0.77% Cu. Mantos Mining Zone

26. San Antonio Zones

27. Consists of two principle veins Trending 80 0 and 330 0 - Strike 500m San Cipriano vein averages 0.8 m width Average grade of 4.22 oz/t Ag, 9.28 % Zn, and 9.05 % Pb & 0.17% Cu. Dona Jimena vein varies in width from 1.2-1.8 m Average grade of 7.86 oz/t Ag, 3.68% Zn, 7.28% Pb, & 1.91 % Cu San Antonio Veins

28. Pachapaqui Mine: Total Silver Ounces Silver Ounces Proven and Probable 7,653,436 Measured and Indicated 24,882,530 Sub Total 32,535,966 Inferred 10,807,100 Total 43,343,066

29. The Town of Pachapaqui

30. Laboratory & Analytical Analysis

31. Fines Stock Pile and Ball Mill

32. Lead Flotation Cells Zinc Flotation Cells Recoveries 80 % Pb Grade 52 % Ag Grade 80-100 oz/t Recoveries 83 % Zn Grade 54 % Ag Grade 10 oz/t

33. Copper Flotation Cells Recoveries 45% Cu Grade 26% Ag Grade 300oz/t

34. 800 tpd Mill National power grid

35. Requiza Camp

36. Arabia Deposit

37. Valuation Parameters Public Market Multiples Market Capitalization per ounce (MC/oz) of silver resource for development companies or small producers is US$0.75 – US$1.00 MC/oz for companies with resources under 100 million ounces of silver is US$0.80 Transaction multiples Over the last twelve months they have ranged from US$0.50 to US$1.50 per ounce of resource

38. Pachapaqui Mine: Operating Costs Average Value of Ore $63.56/tonne Mine Operating Cost: $??/tonne Mill Operating Cost: $ ??/tonne Total Project Cost: $30.69/tonne Ore Reserve and Mine Dilution = 30% Mine will produce min 2,600,000 ounces / year Silver

39. Ken Booth Brian Flower President and CEO, Director Chief Financial Officer, Director Philip Jamieson Greg Peebles Director Director Management and Directors

40. George Babcock Steve Babcock Senior Consultant, Peru Vice President, Operations Alfonso Brazzini Director

41. Pachapaqui Mine Developed Peruvian Silver – Base Metal Mine