HispanicBusiness

Hole LHDH22 was drilled to a depth of 750 metres in the 2010/2011 season, ending due to limited drill rig capacity in 0.98% Cu and 0.19 g/t Au. It was deepened to 1,306.3 metres during this campaign. The hole ended in a weakly mineralized porphyry unit below the main breccia.

Hole LHDH44 was curtailed at a depth of 497.3 metres at the very end of the 2011/2012 season. It was deepened to 1,023.2 metres during the current campaign and ended due to technical problems in good grade mineralization (0.50% Cu, 0.16 g/t Au) within the Inferred resource shell. A total of 404 metres of this hole are outside of the Indicated resource shell and is expected to result in a conversion of Inferred to Indicated resource.

Hole LHDH47A was drilled along the northern edge of the known deposit and was terminated in well mineralized breccia (0.56% Cu, 0.13 g/t Au) at a depth of 988 metres due to drilling problems. A total of 439 metres of this hole are outside of the Indicated resource shell and is expected to result in a conversion of Inferred to Indicated resource.

Hole LHDH48 is a 100-metre step-out to the south of the last line of drill holes, and is entirely outside of the Indicated resource envelope. This hole ended at a depth of 1,213.5 metres in weakly mineralized (0.25% Cu, 0.05 g/t Au) breccia. The deposit remains open to the south and east of this hole.

Hole LHDH49 is along the western margin of the deposit and was terminated at a depth of 1,158.7 metres in weakly mineralized granite.

Hole LHDH50 was drilled north to south across the centre of the deposit in order to determine if there is a directional bias in grades, since all other holes were drilled to either the east or the west. This hole is almost entirely within the Indicated resource envelope, and ended at a depth of 1,271.0 metres in mineralized breccia (0.51% Cu, 0.08 g/t Au). The grades in this hole correlate very well with nearby holes and no directional bias is indicated. One other hole, LHDH55, is also being drilled north to south and is currently underway.

Hole LHDH51 is the most southwesterly hole in the deposit and was terminated at a depth of 1,223.0 metres in mineralized and brecciated granite due to drill rig capacity. Grades were increasing over the lower 35 metres of this hole and it ended in 0.64% Cu and 0.10 g/t Au. The geometry and increasing grade suggest that this hole may be approaching a contact between the granite and the Los Helados breccia and it is currently planned to deepen it with one of the larger rigs on site. The character of the breccia is similar to the high-grade breccia intersected in hole LHDH34 last year (44 metres at 1.07% Cu and 0.72 g/t Au), which is located 140 metres northwest of the intersection in LHDH51.

Hole LHDH52 was drilled into the southeastern part of the deposit, 180m north of LHDH48, in order to extend the Indicated resource at depth. The hole was within the Indicated resource shell to a depth of 815m and then within the Inferred shell to 974m and should result in both conversion of Inferred to Indicated and extension of the Inferred resource. The hole ended at 1193.5m in moderate mineralization (0.30% Cu, 0.15 g/t Au) in breccia.

Hole LHDH53 was drilled from east to west, into the central high-grade portion of the Los Helados breccia. This hole had to be abandoned due to drilling problems at a depth of 860.6m within well-mineralized breccia. The entire hole was outside of the Indicated resource shell.