In December 2012, the Company disposed, of 100% of the shares of its former subsidiary Minera Dynacor del Peru SAC

“Minera” in favor of a non-related third party private Company for an amount of one dollar and recorded a loss on disposal of

$ 93,127. At the date of disposal Minera net asset was comprised of the Acary, Pallarniyocc 1 property which had a net book

value of nil and net current assets: $ 93,128. There were no cash and cash equivalents included in the net current assets.

Minera was, facing claims from the Peruvian tax authorities for the fiscal years 2003 to April 2009, in the amount of to

$44.3M (115.2M Nuevo soles) including $10.2M (26.6M Nuevo soles) for income and sales taxes and $34.1M (88.6M Nuevo

soles) in interest and penalties which had been vigorously contested in front of the Peruvian judicial court over the last two

years. There was no change in the status of this claim at the date of the disposal.

All the assets and the liabilities including the contingent liabilities pertaining to the above tax claims were transferred to the

buyer. The Company has no responsibility or obligations whatsoever with respect to its former subsidiary.