Chubut is one of major mining regions in the world with several world-class precious metal deposits. The Company has two drill ready projects and eight properties in the Patagonia region of southern Argentina. The Company's property position in Patagonia amounts to 102,074 hectares, all of which are 100% owned by the Company and cover highly prospective low-sulphidation gold bearing vein systems, similar to the nearby Esquel gold discovery (resource of 3.8 million ounces gold). Currently the area has been designated closed to exploration and mining by the provincial government pending introduction of new legislation.

Penascudo

The 7,700 hectare Penascudo Project surrounds a previously discovered low-sulphidation quartz veining and replacement system with abundant visible gold. Grab samples returned up to 441.0 grams per tonne (g/t) gold (12.9 ounces per ton) and 608.0 g/t silver. Within the Gold Zone bonanza grade gold values have been obtained from two zones with a combined strike length of approximately 10 metres, both contained within a structure that has been traced over a strike length of 650 metres.

Costa

Prospecting on this property of 14,412 hectares has discovered several veins and disseminated zones of mineralization. Grab and chip samples have returned values of up to 6.9 g/t gold and 3.6 g/t silver.

Victoria and Las Bayas

The Victoria claims (12,709 hectares) are contiguous to the Company's Las Bayas property. Las Bayas is along the same geological trend as Brancote Holdings PLC's Esquel deposit and in a similar geological environment.