Now that the Malin plant is operational, the Company will start generating cash flow for the first time. A commercial

relationship will be established with the artisanal miners located on the Bolsa del Diablo project which is critical in obtaining

the social license to pursue the exploration. The Company is now associated with a new partner in Trece Barras to help

resolve this impasse.

Local conditions have improved, the government has recently opened, in Suyo, the first local ministry of mines office.

Through this office, government representatives will initiate the formalization process with all the informal miners. This

process will legalize and formalize the area, workers will be taught how to mine in a safe environment. Emphasis will be put

on the need to eliminate the usage of mercury and cyanide in unlined pools. The Company believes that the local

communities now understand more than ever the full benefits of allowing exploration companies to explore the concessions

and it is expected that the impasse will be resolved in the remaining months of 2010.

The Company expects to begin with a first exploration program on the Marilia group of properties located near the

Shahuindo gold deposit where Sulliden is carrying out a feasibility study. On Shahuindo, the indicated Mineral Resources

total 1,050,000 ounces gold grading 0.63 g/t and 29,800,000 ounces of silver grading 17.9g/t and In