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Batopilas Property

The Company began reconnaissance exploration work on the Batopilas property in 2011 with encouraging results. The presence of visible free gold in stream sediments was identified over an 8 km2 area within the 25 km2 La Verde alteration area and is a high-priority target for detailed follow-up work for high- to medium-sulphidation gold mineralization. The property also hosts the Corralitos prospect, a molybdenum-copper deposit that was partially drilled by a previous owner in 1997 and drilled by the Company in 2011 with encouraging results. The primary target at Corralitos is stockwork-hosted molybdenum mineralization adjacent to a major NNE-trending fault.