Mineral Resources

In a recent review of the Sinchao properties, it was determined that ten property titles of the 23 which were in the portfolio did not belong to Sinchao. The result is that Sinchao does not hold any proprietary interest in these claims. The reader is cautioned that the previous Sinchao Project resource estimate, dated October 30, 2008, can no longer be relied upon. As a result of the loss of these property titles, the Company has commissioned a review of its mineral resources and it anticipates that the new National Instrument 43-101 compliant technical report will be filed by mid-April. The Company believes that the updated technical report will show a material reduction in the estimated inferred resources on the Sinchao Property, however, it will not be possible to accurately quantify the magnitude of such reduction until the revised mineral resource estimate is complete.