Geranio (Gold)

The Geranio property, located in Oaxaca, Mexico, was purchased 100% by the Company pursuant to an agreement with an arm's length party on December 18, 2009. The Geranio property consists of six claims known as La Ramita, Geranio, Violeta, Azucena, El Jilguero and La Orquidea, covering 539.8 hectares. Additionally, the Company has also staked a much larger block of ground to the north, east and south of the Natividad system.

The Geranio project lies adjacent and directly north of the historic Natividad Mining District, 70 km north of the city of Oaxaca in southern Mexico. Natividad is a series at least five bonanza grade gold and silver veins in a black shale host rock which over the last 70 years has produced 1.5 million ounces of gold equivalent. The property covers approximately 1,200 metres of strike length of the northern extension of the Natividad vein system.

Two ASARCO exploration diamond drill holes were drilled on the Geranio property in 1992; hole N-20 intersected 0.6 m at 36 g/t Au and 315 g/t Ag, whereas hole N-24 intersected 0.7 m at 45 g/t Au and 120 g/t Ag.

The Company's objective is to delineate another Natividad mineralized system with comparable precious metal contents.