NuevaCaliforniaProject TechnicalSummary

March2011 PurposeofReport This report summarises work by Minera Focus S.A.C. undertaken at the Nueva California property between March 2009 and July 2010. The program by Focus was designed to evaluate the property for a nearsurfacebulktonnageAuAgdepositandincludeda18holediamonddrillprogramtotalling3,951m. A digital database generated by Focus during the work program was provided to the property owners withthisreport. Location The Nueva California Property is situated in the Department of Ancash in northcentral Peru, in the District and Province of Yungay, 42 kilometers north of Huaraz and approximately 320 kilometers north ofLima.AccesstotheNuevaCaliforniaPropertyisvia8kilometersofpublicdirtroadthatrunseastfrom thetownofMancos. The property is centered at the UTM coordinates 208,500 E and 8,987,500 N and (PSAD 56, UTM Zone 18), at an approximate latitude 9o 08 59 South and longitude 77o 39 05 West. The project can be found on Peruvian NTS map sheet 19H (Carhuaz). The property concession lies between altitudes of 3,090mand4,500mabovesealevel,intheCordilleraBlancainthefoothillsofHuascaran,Perushighest mountain(6,768ma.s.l.). PropertyHistory The Nueva California Mine began production in 1984 as a small 100 tpd cutandfill underground and open pit mining operation, which processes ore by crushing to approximately 1 inch and dump heap leaching over a period of 30 to 45 days. According to the mine records from 1986 to 2007 a total of 748,000 tons of ore grading 6.5g/t Au and 119.6 g/t Ag has been produced at the mine. Poor recoveries intheorderof50to 60%averageforgoldoverthelifeoftheminearemostlyattributedtotheabsence of fine milling and the nonporous nature of the ore which makes it relatively impervious to cyanidation. Exploitationhasbeencarriedoutviaaseriesofaditsthathavebeendrivenhorizontallyfromsurfaceina NNE direction into the steep hill side. In all there are some 13 adits over a vertical range of approximately277meterswiththelowestaditat3270mandthehighestat3547m.(seetablexxbelow). Past and current mining operations have focused exclusively on mining high grade mineralization that wasinterpretedtobehostedbyaltered"andesitedykes".

Nueva California Property Location Map

Underground and open pit mining has traced the oxidized upper portions of these zones over distances of 200 250 meters along strike, easily followed by miners due to the dark appearance of the mineralized zones in contrast with paler intrusive wall rocks. Such wall rocks contain low grade disseminatemineralizationintheorderof0.53g/tAu,thesegradeshoweverweredeemedtobesub economicforundergroundmining. The mine has been visited from time to time over the years by various companies but despite considerableinterestintheprojectandalsoproductionfor overlast25 years,thehardrockpotentialof
Pierina Mine HUASCARAN

the mine had never been explored systematically by drilling until Focus optioned the property in March 2009.

RegionalGeology The Nueva California property resides in the central part of a renowned polymetallic mining district of the Western Andean Cordillera of central Peru. The belt stretches over a distance of some 600 kilometersandNuevaCaliforniaislocatedapproximatelymidwaybetweentheMorocochadepositinthe south and the Yanacocha deposit to the north. The overall metal endowment and diversity of deposit types in this district make it exceptional with respect to mining and mineral potential. Exploitation is mainly from Intermediate Sulphidation, Low Sulphidation, High Sulphidation, Porphyry, and Porphyry Skarn types of deposits, which are all types of hydrothermal deposits thought to be associated with Tertiaryhighlevelcalcakalineintrusions. The Nueva California mine occurs on the flank of the granodioritic Cordillera Blanca Batholith at its westernedge,whereitcontactswithrocksoftheEarlyCretaceous(113144ma)GoyllarisquizaGroup. The contact between the intrusive and sedimentary rocks is a northwest trending regional range front fault that can be traced some 150 kms NNW SSE along the entire western edge of the Batholith. The fault which dips moderately to steeply southwest has normal and right lateral strike slip movement the style of faulting ranges from brittle at shallow depths to locally mylonitic at deeper levels. The fault is relatedtolateMiocenePlioceneextensionaltectonicsandthegrowthoftheCordilleraBlancabatholith.

The principal stratigraphic units at the mine site and the immediate area of the mine pertain to the Chimu,SantaandCarhuazFromationsthatallpertaintotheGoyllarisquizaGroupwhichisasedimentary sequencecomprisedofamixtureofshallowwatermarineandriverdeltaicdepositsthatweredeposited on top of the horst or highland that separated the Chavin and Huarmey basins. These units in general formabroadopenNNWSSEtrendingantiformthatrunsparalleltotheCordilleraBlancaBatholithand together with the batholith form the pronounced topographic feature called the Cordillera Blanca. The amplitude of the regional folding is in the order of 4 6 kilometers, although there are many smaller drag folds on the bigger fold that have much smaller amplitudes as small as a few meters. Rocks of the Goyllarisquiza Group are exposed primary in deeply incised drainages that cut into the base of the CordilleraBlancatothesouthwestdownslopefromthemine. CORDILLERA NE GRA CORDILLE RA BLANCA Ra ng eFro nt Fau lt Pi erina Nu eva Califo rni a Listric F au lts Rio Sa nta Co rd ille ra Bl anca Batho lith MineGeology The Nueva California deposit is situated over a granodiorite intrusion that is possibly part of the Cordillera Blanca batholith or a statellite intrusion related to the same that was emplaced at a very high level relative to paleo topography and water table. The intrusion is hosted by black argillite, lesser siltstone and possibly even coal units of the Cretaceous Chimu formation, which are from the totally deformed reduced to a sort of gouge with original textures in all but the rarest of cases obliterated by pheatomagmatic activity and likelyalso post mineral faulting. The sediments in general are at the top of the stratigraphic pile and become transitional to granodiorite at depth, with the transitional zone is typified by a unique zone of mixing where variable amounts of juvenile fragments of granodiorite are mixed with xenoliths of graphitic black argillite. The geology is best described as a roof pendent to diatreme breccia. Preservation of the system is variable, in the north part of the system, where the

majority of the past mining took place at the topographically highest parts of the mine above the 3,600 meterlevel,thesystemhasbeenupliftedundoubtedlyrelatedtothegrowthandupliftoftheCordillera Blanca Batholith. Here the majority of the argillite roof or cap rock has been eroded off leaving mainly the basal granodiorite with only a few 200 meter long north northeast trending carrot shaped argillite xenoliths that penetrate downward as much as 100 meters vertically into the granodiorite. Toward the southhoweverthesystemismuchbetterpreservedandinthelowermostmostsoutherlylocateddrill holes and adits near the mine infrastructure there is significantly more argillite. This part of the system hasobviouslyundergonerelativelylessupliftingandconsequenterosion. Alteration at Nueva California is pervasive and ubiquitous; to date no drill hole has penetrated to fresh rock. The alteration is associated with intense and broad scale phreatic hydrothermal activity resulting from mixing of meteoric water with magmatic volatiles that presumably commenced with the emplacement of the diatreme approximately at 5.5 million years ago (general excepted age of the Cordillera Blanca Batholith). This resulted in a very succinct alteration zonation at the deposit. At the bottom of the system at the deepest levels penetrated with drilling >250 meters vertical, into the basal granodiorite the alteration is SCC type consisting of muscovite (sericite), illite, chlorite and carbonate which becomes transitional upward to phyllic alteration consisting of muscovite (sericite) mixed with illite occurring typically at the upper part of the basal granodiorite and also superimposed on the mixed transitionaldiatremebreccias.Abovethephyllicalterationattheverytopofthesystemresidesargillic alteration which consists of only illite. This is largely restricted to the argillite cap rock but does on rare occasion extend down into the transition zone and also rarely into the basal granodiorite. Silica alteration is ubiquitous throughout the deposit but occurs most prevalently in the argillic and phyllic alteration zones in the form of quartz stringers, veinlets, veins, breccia veins and siliceous hydrothermal breccias. Vein densities are high enough to form broad stockwork zones that give the deposit, at least locally, a porphyry aspect. Quartz veining is complex and there are at least 3 phases of veining with the earliest being a sort of silica flooding and or high density stockwork of white quartz veins which was ultimatelycrosscutbyalightgreytranslucentfinetomediumgrainedcrystallinequartzwithabundant voidsandcavitiesoftenwithdogtoothorcockscombdruzylinings. Radiometricagedatingofthealterationatthedepositindicatethatthehydrothermalactivitycontinued until approximately 2.5 million years ago and likely stopped as a result of the progressive uplift (until modern times) of the Cordillera Blanca and related unroofing of the deposit. Post mineral NW SE trending normal block faults related to the uplifting has chopped the deposit apart and in cross section has given the deposit a staircase appearance such that shallower alteration assemblages are juxposed againstdeeperalterationassemblagesfromSouthtoNorthacrossthedeposit.Thesepostmineralfaults are typically full of gouge and sometime open spaces and even at their deepest levels can be filled with sandandgravelderivedfromsurface. The gold and silver mineralization at Nueva California can best be classified as IS (Intermediate Suphidation) type. From multielement lithogeochemistry performed by Focus on the drill core and also fromtheundergroundaditstheelementassociationhasbeendeterminedtobeAuAgAsSbPb ZnandFe.Thecorrelationbetweengoldandtheotheraforementionedelementsrangesbetweenahigh of0.626forSbtoalowof0.408forFe.Fromthedrillcoreforsampleswith>0.5g/tAutheaveragesfor theotherelementsareasfollows:Ag55.8g/t,As0.75%,Sb112ppm,Pb0.58%,Zn0.14%and Fe4.2%whiletheaverageforgoldis3.05g/t. Themineralizationattheupperlevelsofthedeposithasbeenstronglyoxidizedbysupergeneprocesses. Goethite often with a botryoidal character, limonite and lesser hematite is ubiquitous as fracture and

voidfillingtypicallywithquartzveinsandalsoaspsuedomorphsofoxidizedpyritewhichisubiquitousto thealteredgranodioriteandthesedimentsasfineandmediumgraineddisseminationsandveins,mostly with quartz. Scorodite after oxidization of arsenopyrite is also very common. At the deepest parts of the deposit which exception of along the post mineral faults , oxidation eventually gives way to fresh sulphide consisting mainly of pyrite, with subordinate amounts of arsenopyrite, galena and sphalerite andtracesofchalcopyrite,pyrrhotite,covellite,borniteandchalcocite.

WorkCarriedOutByFocus TheprogrambyFocuswasdesignedtoevaluatethepropertyforabulktonnageAuAgdeposit. HistoricDataCompilation Historic mine data compilation including digitizing of the underground stope topography, underground geology and underground sample data was undertaken from > 800 maps and approximately 7,800 geochemical samples. ADEM DigitalElevation Model was created from2m contour topography that the minehadrecentlycollected.

A three dimensional digital geological model was created from the data by using Vulcan and ArcGis software, that incorporated all of the above which served as a bases for planning Focus exploration program. UndergroundMappingandGeochemicalSampling Focuscarriedoutanominalamountofundergroundsamplingatmanyofthenewerstopesandsomeof the older ones that were still accessible. Its noted that many of the older stopes notably at the top of the deposit that were exploited during the beginning of the mining operations had collapsed and were nolongeraccessible. Underground geological mapping carried out by Focus was for the most part limited to checking of the previous mapping carried out by Compania Minera Nueva California (CMNC). In general the mapping by CMNC was of good quality in the mapping structures and geological contacts. The only significant difference was in the interpretation of what the geological units; andesite dykes as interpreted by CMNMwerereinterpretedasdeformedChimuformationshaleandlessersiltstonebyFocus. HistoricalUndergroundSamplingAu

SurfaceMappingandGeochemicalSampling Nueva California is largely 90% covered by talus and moraine gravel boulder till. Surface mapping and samplingislimitedtoonlyasmallareaofthetotalextentofthedepositattheexistingopenpits. Geophysics QuantecGeophysicswerecontractedtoperformanIPResistivitysurveyalong8eastwestorientedlines thatoverlappedthemainminearea.Linespacingwas100 metersnorthsouth. Thesurveyconfiguration waspolediopolewithadipoleseparationof50meters.Thesurveyeffectivelymeasureddowntodepth of approximately 250 meters. The purposed of the survey was to map the presence of disseminated sulphides and also variations in resistivity characteristic of the host rocks. The data which underwent 2d inversion processing was delivered in analog format and also in the form of digital raster tiff images. Puesdosections were produced for both resistivity and IP and Isopac depth plan maps were also prepared at 50 meter depth intervals for both IP and resistivity. The raster tiff images were georeferenced and incorporated into the 3d geological model. The survey identified an area of strong chargeability (associated with sulphide) and high conductivity associated with graphitic argillite. The anomalousareacoversanareaofatleastthesizeoftheoldminesite.Thegeophysicalsurveyreturned a significantly larger (300m x 700m) resistivity anomaly that overlaps and is 50m to 100m above the chargeability anomalies. The geophysical program successfully extended the strong chargeability IP response from the original survey by an additional 200m to 250m along trend to the southsoutheast.
GEOPHYSICALMAP CHARGEABILITY250M

The anomaly also became significantly wider increasing from 100m to 150m widein the north to >400m wide to the south. Two moderately strong and deeper coalescing chargeability anomalies emerged to the northeast of the bigger anomaly. A possible interpretation of the geophysics is a pile of altered argillite forming a roof to altered granodiorite. Drilling to date suggests a strong correlation between high chargeability and phyllic altered sulphidic granodiorite. Plan maps are presented in the annex of thisreport. Drilling Focusdrilleda18holestotalling3,951.50meters(Table1).TwohandportableLD250diamonddrillrigs were utilized. Approximately 90% of the drilling was in HQ sized core, and where bad ground conditions prevailed, notably when underground workings were intercepted) the core was reduced to NQ. Drillholeswerecollaredona100mspacedgridtocreateabroad,deepgeologicalprofilefromthelower totheupperlevelsofthemine.Allholesweredrilledatbearingof060degreesto thenortheastandat 45degreesinclination.CollardataofeachholeisgiveninthefollowingTable. DrillHoleLocationPlan

Despite challenging ground conditions the core recoveries where very high and averaged > 95%. The core was logged and sampled lithologically. Specific information captured on the logs was; percentages

ofquartzveining,percentageandtypeofsulphides,relativeamountofironoxideandrelativeamountof silicification.SpectrometeranalysisalterationmineralidentificationwascarriedwithanASD(Analytical Spectral Device), reading were taken at a density of 1 per meter on all core. Data collected on the drill logs was converted to ArcGis shape format and integrated into the 3d digital geological model. After logging the drill core was photographed box by box and sawn into mirror halves with a diamond saw. Half of the core was sampled while the other half was archived. Geochemical sampling was carried out on all of the core, analysis was carried by ALS Chemex of Lima. Standard base analysis for all elements withtheexceptionofgoldANDmercurywasbyICPon200mesh30gramsplitoftheoriginalpulverized sample ( ALS ICP 61 package). Gold analysis was by fire assay with an atomic absorption finish (Au AA 23) and mercury analysis was by cold vapor with an atomic absorption finish. Samples with over detectionlimitforgold(>10,000ppb)bytheAAmethodwerereanalyzedbyfireassaywithagravimetric finish(AuGRA21).Overlimitanalysisforsilver(>100ppm)byICPwasbyatomicabsorption(AgGRA21), analysis for samples over limit ICP (>1%) for elements As, Cu, Pb, Zn and Sb was by Atomic Absorption. Sampledigestionemployedinalloftheanalyticaltechniqueswasbyafouracidwhichisnearlycomplete digestionofthesample. QAQC Focus employed a strict QA QC program in the core sample geochemical analyses. Core was first split in half using a diamond core splitter and then logged, and each box photographed prior to sampling. Halfcore samples were bagged, securitysealed and transported by Focus personnel to ALS Chemex gravimetric finish. Silver was determined by multiacid digestion and ICPAES, with fire assay gravimetric finish.ALSChemexsqualitycontrolsystemcomplieswithInternationalStandardsISO9001:2000andISO 17025:2005.Analyticalaccuracyandprecisionaremonitoredbytheanalysisofreagentblanks,reference material and replicate samples. Quality control is further assured by Focus own QA/QC program which involves the insertion by Focus personnel of blind certified standards and blanks into the sample stream at a rate of 1 sample in every 15in order to independently assess analytical precision and accuracy of eachbatchofsamplesastheyarereceivedfromthelaboratory.Finally,representativesamplepulpsare forwardedtoanISOcompliantthirdpartylaboratoryforadditionalqualitycontrol. ResultsandInterpretation The grid drilling program at Nueva California was designed to test for a near surface, bulk tonnage disseminated deposit. As the drilling is centered on a broad 100m grid, individual holes were not designed to target specific mineralized structures. Results showed significant and potentially economic intercepts in several holes up the profile, however, due to the complex structural geology, the mineralisation is generally inconsistent and grades erratic between holes from the lower to the upper levelsofthemine. A key interpretation is that the hydrothermal system appears to be much more extensive in the lower part of the Nueva California mine around DDHNC012, which drilled a sequence of altered argillite, hydrothermal breccias and phyllic altered granodiorites to 371m. The hydrothermal system appears to extendtothewestandsouthofthelimitsofthecurrentundergroundworkings.Theupperpartofthe

SignificantIntercepts(weightedaverages) HoleID
DDHNC001 DDHNC002 DDHNC003 includes DDHNC004 DDHNC005 DDHNC006 includes DDHNC007 DDHNC008 DDHNC009 DDHNC010 DDHNC011 DDHNC012 includes DDHNC13 DDHNC14 DDHNC015 DDHNC016 DDHNC017 DDHNC018 includes 0.0 30.2 0.0 37.5 68.9 0.0 50.0 35.1 80.6 138.5 9.8 73.9 15.0 49.8 73.5 11.0 66.0 119.5 87.1 160.4 0.0 25.5 52.0 79.0 165.0 172.0 174.0 0.0 24.4 29.0 98.0 85.2 166.2 173.0 175.0 20.0 0.0 94.1 159.8 15.7 106.5 160.8

From(m)
14.3 48.0 0 0 0 25.0 60.6 0.0 35.1 33.75

To(m)
36.3 58.9 38.2 69.6 7.4 46.95 63.3 53.6 51.3 36.0

Length(m)
20.6 10.9 38.2 69.6 7.4 21.95 2.7 53.6 16.2 2.25 15.7 12.4 1.00 NoSignificantIntercepts NoSignificantIntercepts 24.4 3.5 46.0 6.2 1.2 1.0 1.0 20.0** NoSignificantIntercepts 9.8 43.7 15.0 12.3 4.6 11.0 16.0 84.4 6.5 21.9 NoSignificantIntercepts

Gold g/t
0.88 1.33 1.7 1.84* 25.9 1.45 3.67 1.63 2.8 14.14 0.98 0.26 5.74

Silverg/t
27 39 20 22 122 21 43 19 29 228 42Tailings 23 32

2.62 1.77 2.03 6.1 4.36 5.05 5.61 1.56 0.91 0.25 0.22 0.83 2.20 0.73 0.26 0.36 1.53 0.35

105Tailings 5.0 95 122 17 42 5 47 36Tailings 15 14 52 347 32 12 20 123 9

*Interval2.70m3.6massaying171g/tAuwascappedat30g/tAuforthepurposesofthiscalculation

system, where the existing mine is focused, is most likely not the core of the goldmineralized hydrothermal system. Thick intervals of hydrothermal breccias, granodiorite and argillite were observed in holes DDHNC012 and DDHNC09, both drilled in the lowest levels of the mine around the tailings area. DDHNC012 encountered significant mineralization in brecciated argillites between 46m and 98m grading 2.0 g/t Au and 94.6 g/t Ag, with individual Ag assays up to 610 g/t Ag (19.6 oz/t). DDHNC018 drilledalowergradebutlongerinterceptofmineralizationinbrecciatedargillites([email protected]/tAu). Similar strong hydrothermal alteration and rock types were drilled in DDHNC09, however sampling did notreturnanysignificantmineralizedintervals. The deep regional fault originally thought to be the controlling structure on mineralization was not intersected in any of the deeper drillholes. Focus geologists now believe that the mine may actually sit withinthemainfaultzoneitself. Conclusions At Nueva California the mineralization is of the IS (Intermediate Sulphidation) type where there is a strong correlation between gold mineralization and other metals such as Ag, As, Sb, Pb, Zn and Fe. The correlation coefficients between gold and these other elements ranges between a high of 0.626 for Sb andalowof0.408forFe.Consequentlythereisastrongcorrelationbetweengoldandsulfides. Gold transporting solutions evolved from a shallow level intrusion or diateme. Alteration in the deepest parts of the system is SCC (SericiteClay Chlorite and Carbonate), is transitional upward to phyllic alteration (muscovite illite) which is in turn transitional to argillic (illite only) alteration at the shallowest levels of the system. In general fluid migration was from a granodiorite heat engine at the base of the system upward into black shales and argillite which are roof pendent or cap rock to the granodiorite. Quartz veining, quartz vein stockwork, and quartz hydrothermal breccias are ubiquitous to the deposit occurring in all types of alteration but most frequently in the phyllic and argillic alteration zones. Gold mineralization is invariably associated with late stage druzy quartz veining, but is highly temperature sensitive and with all features i.e. veining the occurs nearly exclusively in the cooler or higherargillicaltered(illitic)partsofthesystemcommonlyassociatedwiththeargillitecaprock.Thereis astrongnegativecorrelationbetweengoldmineralizationandthepresenceofcarbonate,muscoviteand chlorite. All of the geological information collected and modeled to date including lithogeochemistry, geology, alteration, IP Resistivity and also the partial extraction geochemistry all vector toward future exploration to the south and southeast to an area covered by talus outside of the original mine site. Results from holes DDH NC012 with (46m @ 2.03 g/t Au, 95 g/t Ag) and hole DDH NC018 with (84.4m @ 0.36 g/t Au) drilled 100 meters apart and at the southern and southeast extreme of the drill grid and atthesouthernedgeoftheoldminesiteshowthatthehydrothermalsystemisintensifyingandisbetter preserved.

NCDDH001 From16.2to23.25mgrades1.15g/tAuand34.4 g/tAg.From 48.0to56.0mgrades1.7g/tAuand 45.7g/tAg.TD93.8m

NCDDH014
NoSignificant Results IntersectedOnlyGranodiorite.TD186.6m

NCDDH010 NoSignificant Results IntersectedOnlyGranodiorite.TD150m

NCDDH011 At9.8mintersected 1mgrading1.3g/tAuand18g/tAg (Argillite).RestoftheholeIntersectedonlyGranodiorite flat forgold.TD313.5m NCDDH04 From22.0to46.95mgrades1.48g/tAuand21.87g/tAgin mixedminewallrocksandcollapseddebris.Restofthehole IntersectedonlyGranodiorite flatforgold.TD120.0m

NCDDH008 NoSignificant Results.Intersected Only Granodiorite.TD160m NCDDH017 From0to9.7mgrades0.8g/tAuand34.3g/tAg. From50.0to66.0mgrades0.26g/tAuand11.7 g/tAginmixedArgillite Granodiorite with breccia zonesto68m.Holefinishesinphyllic Granodiorite. TD250

NCDDH02 From0to23.6mgrades1.15g/tAuand9.2g/tAgandfrom 28.45to38.2mgrades3.73g/tAuand42.7g/tAgInmixed minewallrocksandcollapseddebris.Restofthehole IntersectedonlyGranodiorite flatforgold.TD120.0m NCDDH03 From0to9.23m 9 23mgrades7.56 7 56g/tAuand47.2 47 2g/tAg From31.7to37.25mgrades2.91g/tAuand17.6g/tAg. Inmixedminewallrocksandcollapseddebris.Restofthe holeIntersected onlyGranodiorite flatforgold.TD120.0m NCDDH013 From0to20.0mgrades1.56g/tAuand44.3g/tAgincluding 9mgrading2.63g/tAuand29.2g/tAgfrom11to20m (Argillitehostedveinstockwork) .Therestofthehole intersectedgranodiorite flatforgold.TD199.9m NCDDH006 From0 53.6mgrades1.63g/tAuand17.8g/tAg(including 2.5mgrading8.35g/tAuand49.9g/tAgand16.2mgrading 2.87g/tAuand25.14g/tAg)Ingranodiorite hosted stockwork. t k k TD220 220m

NCDDH005 Anomalousresultsinargillite to63.3mincluding 1.2mat22.8mgrading1.86g/tAu&32.6g/tAg. From60.6to63.3m3.67g/tAu&43g/tAg.The restoftheholeingranodiorite isflatforgold.TD 251m NCDDH016 From0to15.0mgrades0.22g/tAuand13.6g/t Ag.From 37.5to49.8mgrades0.83g/tAuand 52.4g/tAg.From 68.85to73.4mgrades2.19g/t Auand347.3g/tAg.TD296.4m

NCDDH009 From0 15.7mwastedumpgrading0.98g/tAu &42g/tAg.At159.8m1mgrading5.74g/tAu and32.1g/tAg(Argillite). Restoftheholein granodiorite nosignificant results.TD309.8m

NCDDH007 From33.75to36.0mintersected 2.25meters grading14.2g/t Auand228.02g/tAg(Argillite) Therestoftheholein granodiorite isflatforgold.TD170m

NCDDH012 From0 24.4mwastedumpgrades2.62g/tAu &105g/tAg.From 25.5to29.0m3.5mgrading 1.76gAu.From 52to97m46mgrading2.02g/t &93g/tAg(incl.5.3mgrading6.16g/tAu&126 g/tAgfrom 79m).At165m1.5mgrading4.36g/t Au&17.5g/tAg.From 172.00to175.00m grading3.56g/tAuand16g/tAg.Abundant ArgilliteTD371.1m

NCDDH015 From0 9.8m0.98g/tAuand36g/tAgwastedump.From 32.5to73.95m0.25g/tAuand16g/tAg.MixedArgillite Granodiorite andhydrothermal breccia zonesfrom collar to 185m.Granodiorite toendofhole.TD323.1m

NUEVACALIFORNIASUMMARYOFDRILLRESULTS

NCDDH018 From81.5to87.1mgrade1.63g/tAuand109g/tAgFrom 102.7to103.9grades1.67g/tAuand27.7g/tAg.From 138.5 to160.4grades0.35g/tAuand9g/tAg. From35to103.9mgrades1.13%Pband0.55%Zn.Excellent lookingholewithabundanthydrothermal breccia zonesin ArgilliteandmixedArgillite Granodiorite.TD336.5

NUEVACALIFORNIAPROJECT
LocationofDrillSections
NCDDH 010

Legend DrillHoles
2009Drilling 2010Drilling

NCDDH 014 NCDDH 011 NCDDH 001 NCDDH 004 NCDDH 008 NCDDH002&003 NCDDH 017 NCDDH 013 NCDDH006

Underground Workings

NCDDH005 NCDDH 016 NCDDH007

NCDDH 009 NCDDH 012 NCDDH 015

NCDDH 018

NUEVACALIFORNIAPROJECT DRILLSECTION
Level From (m) 30.2 35.07 80.6 138.5 0.0 To (m) Length (m) Gold (g/t) 0.25 0.36 1.53 0.35 0.91 Silver (g/t) 15 20 123 9 36

SECTION 1

DDHNC015 DDHNC018 including

73.95 43.75 119.5 84.43 87.1 6.5 160.4 21.9 Tailings 9.8 9.8

DDHNC015

43 75m/0 43.75m 0.25 25g/tAu 15g/tAg

6.5m/1.53g/tAu 123g/tAg 84.43m/0.36g/tAu 20g/tAg 21.9m/0.35g/tAu 9g/tAg

NUEVACALIFORNIAPROJECT DRILLSECTION
SECTION 2 SECTION 2
2.25m/14.14g/tAu, 228g/tAg

Level DHDNC 007 DDHNC 009 and DDHNC 012 Including 46m / 2.03 g/t Au 95 g/t Ag

From (m) 33.75 94.1 159.8 159 8 25.5 52.0 79.0 165.0 172.0 174 0 174.0 0.0 0.0

To(m)

Length (m) 2.25 12.4 1 00 1.00 3.5 46.0 6.2 1.2 1.0 10 1.0 15.7 24.4

Gold (g/t) 14.14 0.26 5.74 5 74 1.76 2.03 6.1 4.36 5.05 5 61 5.61 0.98 2.62

Silver (g/t) 228 23 32 5.0 95 122 17 42 5 42 105

36.0 106.5 160.8 160 8 29.0 98.0 85.2 166.2 173.0 175 0 175.0 15.7 24.4

46m/2.03g/tAu 95g/tAg

*DDHNC 009 *DDHNC 012

Level DDHNC007 DDHNC009 and DDHNC012 Including

From (m) 33.75 94.1 159.8 25.5 52.0 79.0 165.0 172.0 174.0 0.0 0.0

To(m) 36.0 106.5 160.8 29.0 98.0 85.2 166.2 173.0 175.0 Tailings 15.7 24.4

Length (m) 2.25 12.4 1.00 3.5 46.0 6.2 1.2 1.0 1.0 15.7 24.4

Gold (g/t) 14.14 0.26 5.74 1.76 2.03 6.1 4.36 5.05 5.61 0.98 2.62

Silver (g/t) 228 23 32 5.0 95 122 17 42 5 42 105

DDHNC009 DDHNC012

NUEVACALIFORNIAPROJECT DRILLSECTION
SECTION 3
?

21.95m/1.45g/tAu, 21g/tAg

69.6m/1.84g/tAu 22g/tAg 20m/1.56g/tAu 47g/tAg 53.6m/1.63g/tAu 19g/tAg

38.2m/1.7g/tAu 20g/tAg

64.65m/0.35g/tAu 12g/tAg
Level DDHNC002 DDHNC003 Including DDHNC004 From(m) S f Surface Surface Surface 25.0 Surface 60 6 60.6 0.0 35.1 33.75 0.0 37.5 3 68.9 To(m) 38 2 38.2 69.6 7.4 46.95 64.65 63 3 63.3 53.6 51.3 36.0 20.0 49.8 98 73.5 Length(m) 38 2 38.2 69.6 7.4 21.95 64.65 27 2.7 53.6 16.2 2.25 20.0 12.3 23 4.6 Gold (g/t) 17 1.7 1.84* 8.8* 1.45 0.35 3 67 3.67 1.63 2.88 14.14 1.56 0 83 0.83 2.20 Silver(g/t) 20 22 122 21 12 43 19 29 228 47 52 2 347

4.65m/2.2g/tAu 347g g/tAg g

DDHNC005 I l di Including DDHNC006 Including DHDNC007 DDHNC013 DDHNC C016 0 6

NUEVACALIFORNIAPROJECT DRILLSECTION
SECTION 4

20.6m/0.88g/tAu, 27g/tAg

11.0m/0.73g/tAu, 32g/tAg

Hole DDHNC001 DDHNC017

From(m) 13.0 0 50.0

To(m) 33.6 11.0 66.0

Length(m) 20.6 11.0 16.0

Gold (g/t) 0.88 0.73 0.26

Silver(g/t) 27 32 12

NUEVACALIFORNIAPROJECT DRILLSECTION
SECTION 5