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During the quarter, the Company made several exploration and development advances on its Velardeña and Chicago properties. At the Velardeña Property, the Company uncovered additional new mineralization in the upper levels of the Santa Juana mine. The vein structures were opened over significant strike lengths and were found to have higher grades and/or larger widths compared to the portion of the same structure that was included in the Company’s latest mineral resource report. Also at Velardeña, the

Company opened a section of the Terneras Vein, which is host to reported inferred resources where the average gold grades were approximately 500% higher than the grades for the corresponding resource block used in the calculation of the Company’s mineral resource estimate.

The importance of these occurrences in the main Velardeña Property is that it provides ongoing evidence that we continue to open areas that prove to be more attractive than what is reported in our mineral resource report.

On the Chicago Property, results from our underground development program, also show better grades and widths from corresponding veins compared to the mineral resource report. In addition to this, new veins have been discovered within the Chicago Property. The new veins are similar to the other veins found and identified in the Chicago area and are within a geological setting similar to the geology and mineralization of the extensive Santa Juana vein system, located within the adjacent Velardeña Property. The type of mineralization, as well as the presence of close parallel veins, seems to be confirming that

The Chicago mineralized system could be the mirror image of the extensive Santa Juana system, located in the Velardeña Property.