The Company is continuing a program of follow-up exploration to evaluate anomalies obtained

during reconnaissance in 2005. Recent exploration has focused on the IP-1 Vein at Zona

Incognito. The IP-1 Vein is exposed in a deep (20m) pit located some 5 kilometers southsoutheast

of Zona Canchete. Recently, ladders were installed in the IP-1 pit so that it could be

sampled in detail. Although near-surface (surface to 8m level) assays were not impressive

(average 0.1 oz/t gold in eight samples), 21 samples collected between the 8m and 20m levels

returned an average grade of 1.12 oz/t gold (median grade 0.64 oz/t gold, maximum grade 5.95

oz/t gold). The vein has an average width of 14.0 cm and ranges up to 45.0 cm wide.

Follow-up exploration has also identified additional veins with >1.0 oz/t gold assays in other

parts of Zona Incognito which warrant further investigation.