TECHNICAL SUMMARY

Sinchao Metals Corp. was formed by Andean American Mining Corp. in April 2006, in order to provide shareholders with the opportunity to participate in a true polymetallic project. As a distinct company, Sinchao Metals will be able to garner market interest as a polymetallic property solely on its own potential, which is significant.

Andean American Mining Corp. has held the Sinchao Property in Cajamarca province, northern Peru, since 1996. Initial geological mapping, surface sampling, Induced Polarization and magnetometer surveys were completed in 1996, followed by over 8000 metres of drilling during 1997 and 1998. Results were very encouraging, however, metal prices were at all time lows and exploration was halted. Since 1998, Andean American has consolidated its land position and in 2005 acquired 21 hectares contiguous with the existing Sinchao Property to complete its land acquisitions. Sinchao Metals now owns 100% of the Sinchao Property. Four mineralized systems have been identified on the Sinchao Property: the Skarn Zone, the Breccia Zone, the High Sulphidation Epithermal Zone and the Massive Sulphide Lenses.

The initial 2007 drill program will focus on defining the size and grade of the Breccia and Skarn Zones. The Company recently released results of surface sampling of the Skarn Zone. Sixty-four grab samples of massive sphalerite, galena and pyrite returned average values of 14.27% zinc, 2.4% lead, 1.87 g/t gold, 85.07 g/t silver and 1.40% copper. The samples were collected along a northwest-southeast trending Skarn Zone over a strike length of approximately 1,500 metres, which remains open in both directions. A recently completed diamond drill hole intersected 10.25 metres grading 2.34% copper, 0.81 g/t gold and 26.39 g/t silver, within a broader intersection of 32 metres grading 0.78% copper, 0.30 g/t gold and 11.12 g/t silver.

PROPOSED 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 have been completed and have been integrated into the ongoing geological mapping.

The 2007 exploration program involves an initial 5,000-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. Further targets defined by the geophysical surveys will be drill tested and an estimation of inferred resources will be completed in 2008.

Mr. Andrew Gourlay, P. Geol. and President of Sinchao Metals Corp. is a Qualified Person as defined in National Instrument 43-101with the ability and authority to verify the authenticity and validity of the data. This document has been prepared under Mr. Gourlay’s supervision. Mr. Gourlay has verified the data disclosed in this document including sampling, analytical and test data underlying the information.