TINGO ESTE

The Company has signed a letter of intent with Lara Exploration Ltd. ("Lara") whereby Lara will acquire the Company's Tingo Este property consisting of  3,700 hectares in the porphyry copper belt near the coastline of southwestern Peru.  The project is situated in the province of Huaytara within the department of Huancavelica.

Under the terms of the letter of intent, Lara will pay the holding taxes of approximately US$10,000 to the Peruvian government and pay a 1% NSR to Tinka on any production from this property.