ECU plans to focus on finalizing the drilling program it started by completing one last

surface diamond drill hole to test the western extension of the Terneras vein and 5 deep

underground diamond drill holes to test the continuity of the massive sulphides discovered at

the bottom of hole SJ-18-21. In addition, ECU will complete approximately 100 bazooka

drill holes totalling 4,500 m to fill in data gaps on known veins near underground

development. The program is focused on filling an information gap on the Terneras West

vein and testing the continuity of the deep massive sulphides lenses at the Santa Juana mine.

The discovery of the massive sulphide lenses could have a major impact on future resource

estimates as well as any preliminary assessment or pre-feasibility studies. ECU is planning

to expend a total of US $1,050,000 during the follow-up exploration drilling program.

Furthermore, the exploration program will include underground development such as ramps,

drifts, adits and cross-cuts in the various mines either to provide access for the drills or to

explore the veins directly. These workings will total 1,900 m for a total cost of

US $1,967,500.

Table 20.1 is a summary of the budgeted expenditures for the follow-up drilling program at

the Velardeña properties.

Additional surface geological mapping and sampling of veins will be conducted by the mine

geologists as their workload permits. This will be an ongoing process and part of the mining

activities of ECU and, consequently, has not been budgeted as a special activity.

The above program is the final portion of the first phase of a larger exploration program

which will be needed to better define the mineral resources and increase the degree of

confidence in the large areas containing the inferred resource by in-fill drilling. This larger

program should be further defined after the completion of the proposed 2009 program and

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could be initiated in either late 2009 or at the beginning of 2010. At this time, it is difficult to

predict the extent of the exploration program as it will partly depend on the success of the

2009 program. However, it could be expected to include approximately 30,000 m of surface

drilling and 50,000 m of underground drilling along with a significant underground

development program to create proper drill stations.

Micon has reviewed ECU’s proposal for further exploration on its Velardeña properties and

recommends that ECU conducts the exploration program as proposed subject to either

funding and other matters which may cause the proposed exploration program to be altered in

the normal course its business activities or alterations which may affect the program as a

result of exploration activities themselves.

Through its exploration of the Velardeña properties, ECU is continuing to identify the extent

of the mineralization contained therein and as a result has expanded the mineral resource

base for the properties. Micon has reviewed and accepted the current resource estimate for

the project and makes the following additional recommendations:

1) Micon recommends that ECU continues to expand its current electronic database

for use in future resource estimates.

2) Micon recommends that ECU conducts further specific gravity testing to define the

specific gravity for each vein or family of veins where it has not already done so.

This testwork should be conducted during the next drilling campaign in order to

further define the specific gravity of the veins for inclusion in the next resource

estimate.

3) Micon recommends that ECU compiles a comprehensive Quality

Assurance/Quality Control (QA/QC) procedures report for inclusion in future

Technical Reports as an appendix. The write-up should be complete and cover

everything from the start of the exploration program to the completion of the

program including site cleanup. Included in the report should be procedures

covering surface and underground sampling, setting up of the drill rigs, drill site

cleanup, logging, core sampling, assaying and the use of standard, blank and

duplicate samples in the program.

4) Micon recommends that ECU continues to conduct its exploration programs on the

Velardeña properties in order to increase the confidence in the mineral resources

contained on these properties. This could continue to be conducted through ECU’s

double-pronged efforts of developing along the veins or zones and by conducting

in-fill drilling where appropriate.

In summary, Micon considers that the proposed program for further exploration on the

Velardeña properties by ECU is both warranted and justified as the potential for the

discovery of additional resources is good. Micon recommends that ECU proceeds with the

program.

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MICON INTERNATIONAL LIMITED

William J. Lewis, B.Sc., P.Geo.

Senior Geologist January 20, 2009