LUMINARIA PROJECT

Luminaria is located 30 km south of Barrick’s 7 million ounce Pierina gold mine and 270 km north of Lima.  The gold mineralization at Luminaria is hosted by an altered granodiorite that intrudes sediments of the Goyllarisquizga Group at an altitude between 3,200 m and 3,600 m.

Surface channel sampling and pitting results identified gold mineralization within a “manto” horizon covering an area of about 230 m by 270 m that averaged 7 g/t Au over an average depth of 2 m.  A geophysical program at Luminaria was also completed and a six hole drill program was commenced in November.  The first stage of the diamond drill program targeted the northern chargeable bodies identified by the geophysical program, and four holes were drilled for a total of 1,175 m.  The geophysical anomalies have been attributed to pyritic black shales and altered porphyry.  No significant assay values were returned.

Two further drill holes were completed targeting the known surface gold mineralization.  Hole LDD5 targeted a fault zone in the known area of surface mineralization and intersected a 6 m mineralized section of silicified biotite diorite between 60 m and 66 m depth.  This 6 m interval averaged 3.3 g/t Au and included a 2 m section that ran 5.82 g/t Au.  The Company believes the intersection, which is approximately the true thickness of the zone, is a continuation of the surface mineralization dipping from east to west at an angle of approximately 45 degrees.  Hole LDD6 was drilled south of LDD5 and targeted a geophysical anomaly but no significant assay values were returned.

The Company originally staked 12 claims totalling 8,100 hectares but has since relinquished all but one claim of 1,000 hectares which covers the drilled area. All exploration costs have been written off.