The Company is continuing with its plan of development for the Project (refer to News Release

dated May 10, 2007.) The objective of the plan is to develop the Project by incrementally

expanding the operation from artisanal levels of production through to a profitable production

level while concurrently defining resources or reserves. The Company is preparing both the

Zona Canchete and the Zona Central for an initial combined sustainable production rate of 300-

500 tonnes per month(1) by undertaking shaft sinking and level development on these veins and

concurrently producing approximately 100 tonnes per month from mine development during the

pre-production, development and exploration period.