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Resource Disclosure
Under the guidelines of National Instrument 43-101 (“NI 43-101”) of the Canadian Securities Administrators, the qualified person for the Volcan Gold Project is Ralph Gonzalez, a resident of Burnaby, British Columbia, Canada. Mr. Gonzalez is a professional engineer registered with the Association of Professional Engineers of the Province of Manitoba since 1977 and a Professional Geologist registered with the Association of Professional Engineers and Geoscientists in the Province of British Columbia since 1992. The October 2007 resource estimate was prepared by NCL Ingenieria y Construccion S.A., Santiago, Chile in conjunction with Eduardo Magri, Ph.D. in mining engineering (Witwatersrand) and a Fellow of the SAIMM with over 30 years of industry experience. Mr. Gonzalez is an independent qualified person as defined by NI 43-101 and has reviewed the contents of this press release. A NI43-101 compliant technical report is being prepared by Mr. Gonzalez and will be filed on the SEDAR system (www.sedar.com) within forty five days of this release.

The resource was estimated using the ordinary kriging geostatistical analysis with 33,216 samples. Separate block models, each with unique parameters, were constructed for each of the Dorado West Zone, Dorado Central Zone and Dorado East Zone deposits. Geologically constrained wire frame envelopes were constructed to confine each block model. Kriging search parameters, reduced to 85% of the variogram established figures, were calculated for each of the deposits. A density value, based upon 367 measurements, of 2.47 tonnes/m3 was used to estimate the tonnages. The parent cell dimension for all deposits is 10 metres in all three axis directions.

A ‘measured mineral resource’ and an ‘indicated mineral resource’ is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The ‘measured mineral resource’ requires a higher level of confidence in, and understanding of, the geology and controls of the mineral deposit as compared to an ‘indicated mineral resource’. An ‘inferred mineral resource’ is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity.

It can not be assumed that the inferred mineral resources will be upgraded to an indicated mineral resource as a result of continued exploration. Furthermore, it can not be assured that measured and indicated or inferred mineral resources will be converted to a “reserve” category at such time as feasibility studies are initiated.