UC: TSX-V

• Initially discovered in 2002 by Spider Resources Inc., KWG Resources Inc. and De Beers Canada Exploration Inc

• Initial massive sulphide discovery was in a reverse circulation drill hole.

• Sample from this hole contained 1.6% copper over 8 meters, and ended in sulfides. This discovery became the site of McFauld's#1 VMS occurrence.

• McFauld's#1 (16 holes drilled to date, 4,720 meters)-Oct 23, 2003: SP3-03-007 intersected 8 meters averaging 1.6% Cu •-May 21, 2003: McF-03-08 intersected 5.68 meters averaging 3.39% Cu, followed •by 4.1 meters averaging 7.64% Zn. •-April 9, 2003:McF-03-01 undercut SP3-03-007 intersected 1.43% Cu over 8.9 m, followed by 1.79% Zn over 4.7 m.

McFaulds Lake Drill Porgram Update

Hole UC-09-01 in the August program was designed to test a geophysical anomaly on the west block that is interpreted to have a strike length of approximately four kilometres (VTEM / ZTEM airborne surveys previously completed). The anomaly was not explained by this drill hole, however gold values were detected at a shallow depth. This hole tested a coincident positive magnetic anomaly and a strong EM conductor. The hole intersected a gradational lapilli tuff to feldspar porphyry contact, cutting very weakly disseminated pyrite mineralization (between 55.9m - 62.5m). It is not felt that this intersection adequately explains the strong conductance. The hole also intersected anomalous gold mineralization of 2,620 ppb Au (2.62 g/t Au) between 31.35 to 31.85 metres downhole, followed by 1,470 ppb Au (1.47 g/t Au) between 31.85 and 32.9 metres downhole. This intersection contained quartz injection and weak fine grained pyrite mineralization in a felsic tuff. Further geophysical assessment, including Induced Polarization surveying is warranted in an attempt to find the source of this intriguing gold mineralization.

Proceeds of the recent financing will be dedicated to the upgrading of the La Yesca gold and sliver tailings processing facility located in Nayarit, Mexico. These funds will facilitate the installation of a required ball mill and final construction of the already permitted tailings facility as well as changes to the process. The estimated time of the construction phase of the La Yesca mill is four months with test production being planned to begin in month three. The company intends to run the mill at a through-put rate of 220 tonnes per day with between 4-5 years of production tailings available.

In conjunction with the mill being placed into production, an exploration plan is being developed for the Xora claim which will be based on the 43-101 compliant results reported on numerous vein structures within the Xora claim group (see March 17, 2009, press release). Some highlights from that sampling program included gold consistently between .25 g/t to.8 g/t with highs of 4 g/t to7 g/t while silver showed a range of 250 g/t to 600 g/t with highs of 980 g/t to 1900 g/t. No known diamond drilling has occurred on any of the aforementioned vein structures, which are open at depth and on strike. Logistics and geophysical programs are presently being planned for the impending drill program on the Xora claim.