2/ ECU failed to pay invoices of the two principal contractors during Phase 4 drilling which resulted in the premature termination of the program in December 2008 when drills were removed from the property by the contractor and reporting on all assay results was suspended. As of mid-2009 the contractors remained unpaid by ECU and full payment was only confirmed in March 2010.

3/ ECU failed to pay its share of the costs of the Phase 4 exploration program on a timely basis. In addition ECU used funds received from GOG during Phase 4 to pay invoices that were not connected with the Joint Venture.

4/ ECU failed to provide required financial statements.

The conclusion outlined by the Arbitrators in the Award of September 20th states that ECU's behavior is "Egregious". The Award makes the following immediate orders:

1/ECU is to pay GOG's costs.

2/ Neither party will be diluted from their current 50% interests.

3/ An audit of the financial records of the Joint Venture by an independent firm of Chartered Accountants is to prepare adequate financial statements for the Joint Venture for December 31, 2010. The parties have 60 days to agree on auditors. Audit costs will be paid 2/3rds by ECU and 1/3rd GOG.

4/ ECU is to transfer to GOG a 50% interest in the Cortez Mining Rights (San Diego) for no additional consideration.

5/ ECU is to pay GOG 50% of the gross revenue it reported from metals in the stockpile material mined from the property in 2009, an amount equal to US$60,565.12.

6/ ECU has been removed as Operator. The Management Committee is to meet within 30 days to select a new Operator. If there is no agreement on selection of Operator after 60 days, additional submissions may be made for arbitration of this decision.

7/ GOG may, within 25 days of the date of the Award, make submissions seeking payment of its legal fees.

It is the Company's intention to work with ECU to resolve outstanding issues related to the arbitration ruling in an expedient manner as possible so that work may re-commence on the property as soon as possible. The Company intends on issuing more information in the near future.

San Diego Property, Durango State, Mexico

Four phases of surface exploration have been undertaken by the JV on the San Diego Property. Successful exploration drilling has to date identified a major new polymetallic Silver -Lead - Zinc - (Gold) (Ag-Pb-Zn-(Au)) mineral discovery on an extension of the Velardena Mine trend. NI 43-101 compliant reporting in January 2009 (News Release: Jan 19th 2009) identifies combined Joint Venture Mineral Resources of: -- Indicated Resources: 0.371 Million tonnes (MT) grading 245 grams Ag per tonne (Ag g/t), 1.80 percent Pb (% Pb), 1.33 percent Zn (% Zn) and 0.339 grams Au per tonne (Au g/t); representing -- 4.25 Million Ounces of Silver-equivalent (oz.Ag.EQ); and, -- Inferred Resources: 21.63 Million tonnes (MT) grading 110 Ag g/t, 1.84 % Pb, 2.21 % Zn and 0.134 Au g/t; representing an additional -- 214.3 Million oz.Ag EQ. -- Micon International Inc. also estimated that the property remains highly prospective with additional mineral potential, on strike and at depth, of an additional estimated -- 173.5 to 389.5 Million oz.Ag EQ.

© 2010 Canjex Publishing Ltd.