For the Velardeña properties ECU has currently developed a measured and indicated mineral

resource of 3.9 million tonnes containing 36.5 million ounces of silver equivalent if only gold

and silver are accounted for, and a further 3.2 million ounces of silver equivalent if lead and

zinc are accounted for as well as the gold and silver in the sulphide mineralization. In addition

to the measured and indicated resources ECU has a further inferred resource of 26.5 million

tonnes containing 248 million ounces of silver equivalent if only gold and silver are accounted

for, and a further 142 million ounces of silver equivalent if lead, and zinc are accounted for as

well as the gold and silver in the sulphide mineralization. ECU’s mineral resource estimate

includes its 50% attributable portion of the resources located on the San Diego property where

it has a joint venture agreement with Golden Tag.

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

There are no mineral reserves presently identified on the Velardeña properties.

The stated resources are not materially affected by any known environmental, permitting,

legal, title, taxation, socio-economic, marketing, political or other relevant issues, unless stated

in this report, to the best knowledge of the author. There are no known mining, metallurgical,

infrastructure, or other factors that materially affect this mineral resource estimate, at this time.

In addition to the previously stated mineral resource estimate, the Velardeña properties have

further mineral potential since the true extent of the mineralization within the veins, vein

packages and skarn has not been fully identified. However, since the mineral potential cannot

be estimated to the same accuracy as a mineral resource it must be stated as a range of figures.

To estimate the range for grades, a factor of minus 10% was applied for the downside and plus

10% for the upside potential. In the potential for the extensions of the veins belonging to the

Santa Juana vein system where the grades were used from the drill holes only, the upside was

set at plus 50%. The upside potential factor is larger than the downside potential factor

because of the possibility that the mineralized zones will be similar in nature to, and as

extensive as, the main veins on the Velardeña properties. Consequently, a significant

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difference between the grades obtained from drilling and the higher grades indicated from

stoping would be expected.

Contributing to the upside potential on the Velardeña properties is the possibility that

additional veins may be discovered. While it is easy to determine the extent of the veins

which outcrop on surface, there is the possibility that a number of hidden veins exist on the

property which do not have a surface expression and would only be discovered through

diligent exploration and, in some cases, discovered while drifting to intersect known veins

underground.

Table 19.3 summarizes the mineral potential ranges for the Velardeña properties

The mineral potential of the Velardeña properties is conceptual in nature and there has been

insufficient exploration conducted within the properties to define a mineral resource for these

areas. It is also uncertain if further exploration will result in targets being delineated as

mineral resources. Thus ECU is proposing to continue its multi-phase exploration program,

started in 2008, to test the mineral potential of the properties.

Micon believes that the land controlled at the Velardeña properties by ECU is highly

prospective both along strike and down dip of the existing mineralization and that further

resources could be discovered with additional exploration and development.

ECU has been conducting exploration drilling and underground drifting on the mineralization

on the Velardeña properties which have had some historical and recent mining conducted on

the various mineralized veins. In the case of the Velardeña properties, although a number of

mineralized areas have seen exploitation in the past and more recently, the veins on the

properties remain open in both their lateral and down dip projections. ECU has continued to

conduct extensive exploration drilling and underground drifting along the mineralization on

the Velardeña properties and from the results has been able to complete its second mineral

resource estimate.

The resources reported herein by ECU for the Velardeña properties were reviewed and

accepted by Micon as constituting the basis for further exploration and evaluation programs on

the properties. It is Micon’s opinion that the resources for the Velardeña properties conform

to the current CIM standards and definitions for estimating resources as required under NI 43-

101 regulations.

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At this time the exploration potential of the Velardeña properties remains conceptual.

However the geology, extent of the surface expression of the main veins and potential to find

further hidden veins within the properties provide reason to believe that the conceptual

mineral potential could be significant. Prior to ECU’s involvement, the Velardeña properties

had never been completely subjected to modern exploration concepts and technology and to

date ECU has been able to expand upon the known areas of mineralization and discover new

areas