Once again from my favorite page of the Technical Report of last fall....

1.Phase IA: Audio Magnetotelluric Three Dimensional Inversion of the Quantec

Geophysical Data: The Quantec data has been collected and processed, however this data has

not been inverted and re-processed with MT 3D. This should be conducted as soon as

appropriate as it will help guide all surface and sub-surface exploration on the Property. A

program budget of $17,000 and duration of three (3) weeks would required for this phase, which

could be done at any time.

2. Phase IB: Systematic and Detailed Tesoro Camp Wide Mapping and Sampling Program:

A Property wide mapping campaign designed to locate new mineralized veins should be

mounted with particular attention paid to the North vein corridor, the near surface anomalies

identified from the Quantec Survey and the areas covered by the newly added mineral claims.

This data should be assembled into a single coherent GIS package which could be utilized to

guide all future work on the Project. In particular a detailed geological basemap highlighting all

known (ground-truthed) mineralized showings and areas of anomalous geochemical/geophysical

signatures should be produced from this exercise. The geologist employed in this program

should have a clear understanding of the identified mineralization within the Tesoro Camp and

apply that knowledge to exploration planning on the Tesoro Property as a hole. A program

budget of $95,000 and duration of forty (40) days would be required for this phase, which could

be done any time.

3.Phase IC: Systematic Mechanical Trenching Program: A detailed trenching program

focused on those areas identified as anomalous from Phase 1A and involving a D-6 or larger

excavator should be implemented on the Tesoro Property as soon as practicable. This program

should be concentrated on those areas on strike and in between known mineralized vein and in

particular be located in the North Corridor and on the high priority near surface targets identified

by Quantec. A program budget of $180,000 and duration of five (5) weeks would required for

this phase, which could be done any time, weather permitting.

4. Phase ID: Geological and Geophysical Compilation Program: After completion of Phases

1A-1C, a geologist should be employed to compile the geological and geophysical data into a

single coherent GIS package with clear diamond drilling targets selected. This step is required

to determine the most geologically and geophysically suited targets to test by diamond drilling.

Targets should be generated and prioritized into a logical progression of drilling order, whereby

early drillholes focus on both near surface and deeper seated geophysical targets with interpreted

geological controls. This important aspect of the program will require two (2) weeks and a

budget of $10,800.00 and can be completed anytime after Phase 1C is completed and assays

received.

5.Phase ID: Diamond Drill Program: A suite of at least 24 drillholes (totalling at least 10,000

metres) designed to test the near surface and deeper seated geophysical anomalies identified and

substantiated from Phases 1A-1D are warranted for the Tesoro Project. Eleven weeks would be

required to mobilize and drill the targets identified within Phase ID. A program budget of

$2,200,000 would be necessary for this phase and would best be conducted between May and

December.

Please take note of the time estimations for Phase 1C and 1D(sic) Diamond Drill Program. The trenching is 5 weeks worth of work and the drilling is an eleven week program. Then you have to factor in the FUF. It always takes just a bit longer. So go enjoy your summer and in fall we'll all have a better idea of what Tesoro truly holds.

Personally, I'd like to hear a plan for Vilcoro. Option it off or move it forward.