Corporate Update – September 9, 2011

The exploration department is working on the organization of the new drilling program scheduled to begin in October, in the Lluvia de Oro and La Jojoba areas of the mine site.

This program will consist of approximately 12,000 meters of reverse circulation (RC) drilling over a four month period. Approximately 6,000 meters of drilling will be completed in the Lluvia de Oro area and 6,000 meters will be drilled at the La Jojoba pit area. In the Lluvia de Oro area 2,000 meters of drilling will be condemnation drill holes for the new leach pad area, 2,000 meters will be drilled in the Papalote zone, and 2,000 meters are to be drilled at the Campamento zone.

During the two week period ended September 9th there were approximately 272,795 tonnes of material mined and moved in which 139,720 tonnes was ore with an average grade of 0.60 gr/ton of gold. This equates to approximately 2,242 oz of gold loaded onto the leach pads at Lluvia de Oro and Lluvia de Oro II. As in the past, a selective mining practice was used. This practice has resulted in a very good average grade of ore loaded onto the leaching pads.

During the last two weeks, there has been a total of 12 blasts in the pit area with using a total of 2,400 boreholes, which equals a total of 40,000 linear feet of drilling.

, the plant processed approximately 80,100 cubic meters of pregnant solution with an average grade of 0.23 gr/m3 for an average daily production of 42.35 oz of gold. The crushing circuit is being moved from areas 7, 8 & 9 to the new Lluvia Dos Leach Pad, Lane number 1. Crushing and placing high-grade ore in Lane 1 Cell 3 will begin this week. Truck dumping on Lane 1 cell 2, has been ongoing for the past week.