Property Information

PROPERTY DESCRIPTION & LOCATION

The general coordinates of the property are 99° 35'54" to 99° 38'44" E and 30° 23'50" to 30° 26' 00" N. The property is in Litang County, Ganzi District, Sichuan Province, China, located about 5 km from the Xiasai Silver Mine site which is about 46 km from Yidun and about 840 km for Chengdu.

The property covers 9.81 km² and applies to mineral resources within this area and sufficient surface rights to allow building roads and accesses to these resources.

Climate

The climate is typical of the Sichuan Plateau with sharp contrasts between the dry and rainy seasons. Temperatures are below freezing from September to March when the highest temperatures are -5° C and the lowest -25° C. The air temperatures are higher between April and October but the rainy season occurs in July and August.

Local Resources

The exploration license is a pastoral area for the Tibetan nomadic people who use it as a summer, August to October, pasture. In addition to the herds of yaks the Tibetans collect traditional, medicinal herbs that are a major source of income.

INFRASTRUCTURE

The mining area is located in the hinterland of West Sichuan Plateau with the altitudes ranging from 4,100 to 5,091 m. In the mining area, the vegetation is less developed and the meadow area is about 4,400 m above sea level.

The nearest infrastructure to the project area is at the Xiasai Mine site where there is a road, a power line, telecommunications lines and the other facilities for a mining and milling operation.

The mining area belongs to the summer grazing area of Tibetan nomads, of which temporary living is mainly from August to October. Water, power and mineral resources are abundant. The nearest transformer station is at the Xiasai Silver Mine Site and a 5 km power line would provide power to the property.

PHYSIOGRAPHY

The exploration license is located on the edge of the Western Sichuan Plateau, near Xiasai peak, at 5,804 m. Elevations on the license range from 4,100 m to 5,091 m, a difference of about 1,000 m. The overall terrain is higher in the south and lower in the north. There are well developed moraines and other features associated with alpine glaciation. Outcrop is limited to the higher ridges, with the valleys filled with glacial sediments. The topography, where most of the exploration has been conducted is rolling rather than precipitous.