I have posted this before, but also a good refresher since the topic has come up. Good luck with calling the office! You can also draw your own conclusions from the financials, but it is exactly that, your own conclusion?

3.3 PERUVIAN MINERAL TENURE OVERVIEW AND REQUIREMENTSMining concessions in Peru are granted on UTM-defined coordinates (UTM major intersections) over areas ranging from 100 to 1,000 Ha in size. Once staked and granted by the Peruvian Government, mining titles are irrevocable and perpetual, as long as the titleholder complies with certain payment obligations to the Ministerio de Energia y Minas. These payments are known as “vigencias”, translated as “Mining Good-Standing Fees” and are regulated and collected by the national governing body, the Ministerio de Energia y Minas. No royalties or other production- based monetary obligations are imposed on holders of mining concessions; however title holders have compulsory annual vigencias of $3.00 per hectare for each concession actually acquired or a pending application (or “petitorio”), by June 30th of each year. The concession holder must sustain a minimum level of annual commercial production of greater than $100 per hectare in gross sales within eight (8) years of the grant of the concession or, if the concession has not been put into production within that period, the annual vigencia increases to $4.00 per hectare for the 9th through 14th years of the grant of the concession, and to $10 per hectare thereafter. The concession terminates if annual rental is not paid for three years in total over the periods or for two consecutive years.

Current vigencia payments on the Tesoro mineral claims are due by June 30th, 2011.

Surface rights in Peru are generally a matter negotiated between the titleholder of the property and local authorities, the main issue of is compensation for crops damaged or pastureland compromised by mineral exploration and development. On the Tesoro Project the land covered is not suitable for agriculture or grazing, and the nearest population centre zone lies approximately 30 km west of the Project.