Lack of Copper Rights
In addition to gold, the Las Cristinas deposits also contain very low levels of copper, 0.11% on average. Under
the Mining Operation Contract, the Corporation is only entitled to exploit the gold contained in the Las Cristina

deposits. Based on the feasibility studies carried out by the Corporation and following discussions with the CVG,
the Corporation has determined that exploiting the copper contained in the Las Cristinas deposits would detract
from the economics of the Las Cristinas project. Furthermore, it may not be technically viable to produce a
marketable copper concentrate from the main Las Cristinas deposit as the copper is too low grade. The
Corporation does not need the right to exploit the copper contained in the Las Cristinas deposits in order to
exploit the gold and does not currently intend to negotiate with the CVG for the right to exploit the copper
contained in the Las Cristinas deposits.
Although the Corporation does not believe that the MIBAM would do so, the MIBAM retains the right to grant
exploitation and other rights with respect to the copper contained in the Las Cristinas deposits to the CVG or a
third party. The Corporation has been advised by its Venezuelan counsel that:
(a) if the MIBAM grants the right to exploit the copper contained in the Las Cristinas deposits to the CVG,
subject to fulfilling all necessary requirements of Venezuelan law (including the additional grant by the
MIBAM to the CVG of the right to negotiate the exploitation of the copper with third parties), the CVG
has agreed under the terms of the Mining Operation Contract to negotiate the exploitation of the copper
with the Corporation; and
(b) if the MIBAM grants the right to exploit the copper contained in the Las Cristinas deposits to a third
party, the Corporation’s right under the Mining Operation Contract to exploit the gold contained in the
Las Cristinas deposits would, as a matter of Venezuelan law, take precedence over the third party’s right
to exploit the copper.
If the MIBAM grants the right to exploit the copper contained in the Las Cristinas deposits to the CVG, there can
be no assurance that the MIBAM will grant to the CVG the additional right to negotiate the exploitation of the
copper with third parties or that the Corporation will be able to negotiate an agreement with respect to the
exploitation of the copper with the CVG. Also, if the MIBAM grants the right to exploit the copper contained in
the Las Cristinas deposits to a third party, or if the MIBAM grants the right to exploit the copper contained in the
Las Cristinas deposits to the CVG and the CVG grants the right to exploit the copper to a third party, there can
be no assurance that the Corporation will be successful under Venezuelan law in asserting that its right to exploit
the gold contained in the Las Cristinas deposits takes precedence over the third party’s right to exploit the
copper.
Consolidated Financial Statements
December 31, 2007 and 2006