The 100% owned Tassa silver-gold prospect, located southeast of Arequipa in southern Peru, was acquired in 2007 by staking of mineral rights. Tassa is located approximately 160 kilometers northwest and 230 kilometers south of the Company's Santa Ana and Corani projects respectively.

Phase II drilling commenced in late October 2011 with an estimated 5,000 meters to be drilled in approximately 10 drill holes. Phase I drilling conducted in 2010 encountered numerous mineralized intercepts including 60 meters averaging 224.2 g/t silver from 24 to 84 meters depth and 40 meters averaging 110.7 g/t silver from 2 to 42 meters depth as well as scattered anomalous gold intercepts with up to 1.24 g/t gold over 2 meters. Phase I drilling tested a 1.5 km by 800 meter anomaly where 852 rock chip samples averaged 30.71 g/t silver. Silver (and gold) mineralization was intersected within multiple phases of breccias which are part of a diatreme breccia complex, strongly fractured rhyolitic volcanics, and brecciated sediments. See the Company's news release dated December 6, 2010.

Furthermore, phase II drilling is focused on new target areas defined within a 4 kilometer by 1 kilometer area where two-meter wide surface sampling has identified anomalous outcrops containing up to 2.51 g/t gold in silicified outcrops and 5.36 g/t gold in structures (assay values range from <5ppb to 5.36 g/t gold) and up to 203 g/t silver in strongly fractured rhyolite, and 8,160 g/t silver in selected structures (assay values range from <0.2 g/t to 8,160 g/t silver). The anomalies occur within the hydrothermal breccia complex and the Mesozoic sedimentary contact zone and overlie strong IP anomalies indicating sulfide mineralization at depths between 100 and 400 meters. See the Company's news release dated October 11, 2011.

Phase II drilling is testing for gold mineralization hosted within underlying favorable breccias and sediments. Seven holes have been drilled to date with anomalous gold intercepts in three of the holes of up to 52 meters containing 0.5 g/t gold. Surface mapping at Tassa continues to identify additional breccias to the north suggesting the continuation of the hydrothermal breccia complex below the Mesozoic sediments further expanding the target area. Stratigraphic studies suggest that the favorable sediments were not reached in phase I drilling; therefore, phase II drilling is testing deeper in the system (in excess of 500 meters depth in some drill holes) where favorable Mesozoic sedimentary formations which host the Canahuire/Chucapaca mineralization are believed to exist in contact with the breccia complexes.

HOLE STARTED COMPLETED EAST NORTH ELEV. GPS(m) AZIMUTH INCLINATION TOTAL DEPTH (m)
DDH-T-16 28/10/2011 04/11/2011 316820 8212910 4290.00 100 70 269.50
DDH-T-16-A 05/11/2011 17/11/2011 316820 8212910 4290.00 240 60 515.20
DDH-T-17 26/11/2011 07/12/2011 317505 8211840 4016.00 260 50 514.30
DDH-T-18 08/01/2012 20/01/2012 317610 8211690 3982.00 210 50 430.40
DDH-T-18A 21/01/2012 27/01/2012 317610 8211690 3982.00 80 80 302.60
DDH-T- 19 08/02/2012 22/02/2012 317188 8212324 4068.00 280 60 471.30
DDH-T- 20 03/03/2012 09/03/2012 316880 8212540 4190.00 260 65 153.40
DDH-T- 21 17/03/2012 01/04/2012 316860 8212490 4215.00 300 60 586.40
DDH-T- 22 19/04/2012 05/05/2012 317154 8211288 4307.00 140 60 540.80
DDH-T- 23 17/05/2012 05/06/2012 316342 8213058 4380.00 165 -60 613.00
DDH-T- 24 15/06/2012 29/06/2012 316632 8213336 4421.00 115 -70 400.20