Rio Tabaconas Gold Project

As part of Golden Arrow property portfolio, the Company maintains a 100% interest in its Rio Tabaconas gold project in Northern Peru. Originally discovered by IMA Exploration, the project was part of the land package that was spun off of IMA to create Golden Arrow. Rio Tabaconas is located 50 kilometres south of Aurelian Resources Inc.'s Condor gold project along the same metalergenic trend.

The last work program conducted on the project consisted of a 1,600 meter diamond drill campaign was completed in October 2001. The completed drilling from this Phase I program was extremely encouraging, as has demonstrated the Tablon target to be a significant structurally controlled mineralized system with high to bonanza gold grades and a strike length in excess of two kilometers, with indications of gold along its entire length.

The Company is implementing a socio-economic program in order to work with the local community and resume exploration activities. With the recent election of Mr. Garcia as President of Peru, the Company is very encouraged that our socio-economic initiatives will result in a community license so that further exploration can continue on the project. The first point in Mr. Garcia's Apra Party's mining plan for 2006-2011 reads: "The essential aim for the development of mining and expansion of its impact on the economy is to attract foreign investment in exploration and for development of new operations". The project is under forcemajour and continues to be maintained in good standing.