Sinchao Metals Corp. is focused on the exploration and development of the Sinchao property, located in Cajamarca province in Northern Peru, 30 kilometers from Yanacocha, the largest gold mine in South America. The 2008 drill program concentrated on the Breccia and Skarn Zones as part of a 9,250 m program, leading to an estimate of inferred resources in October, 2008. Mineralization has been identified over an area of approximately 700 metres by 500 metres and to depths of up to 450 metres, with the mineralization remaining open in all directions.

EXPLORATION PROGRAM

The 2006 exploration program consisted of detailed mapping of the entire Sinchao Property, state of the art 3D Induced Polarization and ground magnetic surveys. The geophysical surveys were completed and integrated into the ongoing geological mapping.

The 2007 exploration program involved an initial 2,500 metre diamond drill program to further test the continuity and limits of the Breccia Zone, and to test the High Grade Zinc in the Skarn Zone.

The 2008 drill program concentrated on the Breccia Zone as part of a 9,250 metre program. The objective of the 2008 drill program was to define the mineralization at the Breccia and Skarn Zones and to allow an inferred resource estimate to be completed (see page on Mineral Resources for detailed information). The inferred resource estimate includes 416 million tonnes grading 0.36% copper, 33 g/t gold and 0.2 g/t silver at a cut-off grade of 0.13% copper.

Reinterpretation of the geology has identified an Epithermal Zone of mineralization and extensions to the Hydrothermal Breccia and Skarn Zones. The Epithermal Zone has the potential to host between 400 million and 600 million tonnes of mineralization with potential grades ranging from 0.4% to 0.6% copper, 0.3 g/t to 0.5 g/t gold and 6 g/t to 8 g/t silver. The Skarn Zone also has the potential to host additional resources of between 400 million and 600 million tonnes of mineralization with potential grades ranging from 0.1% to 0.3% copper, 0.2 g/t to 0.3 g/t gold and 4 g/t to 6 g/t silver. The Hydrothermal Breccia Zone has the potential to host additional resources of 700 million to 1 billion tonnes of mineralization with potential grades of 0.2% to 0.4% copper, 0.2 g/t to 0.4 g/t gold and 10 g/t to 12 g/t silver. These potential mineralized zones are in addition to the current 416 million tonne Inferred Resource Estimate.