BAJO POBRE

The company finalized the contract deal for the property. After a thorough review of the existing database, the company planed to expeditiously identify and delineate an economic resource by allocating the bulk of exploration expenditures to diamond core drilling of prioritized targets. In addition, a limited percentage of exploration expenditures will be allocated to property-wide reconnaissance in an effort to identify additional drill targets. The Bajo Pobré property was discovered in 1970 and has been worked intermittently by several government entities and private companies. Serious exploration began in the 1990s with geologic mapping and surface sampling. Assays from this sampling yielded values up to 40 grams per ton gold. Drill targets identified from surface sampling were augmented in 2002 with additional targets derived from a geophysical survey. In 2003 and 2004, the property saw a limited amount of exploration drilling which tested only a minor percentage of established targets. It is estimated that approximately US$ 4,000,000 has been spent to date on exploration efforts at Bajo Pobré.