HispanicBusiness

Central Mineralized Zone

The three surface holes presented below, were drilled at the end of the 2012 drilling campaign and were designed to block off the northwestern side of the CMZ in various sections. However, two of the three holes intersected high-grade mineralization and extended the CMZ to the northwest.

SPD-182 was drilled along section 25SW and extended the CMZ intersecting 3.40 metres grading 13.28 g/t gold, 0.02 g/t platinum and 0.06 g/t palladium. This hole demonstrated that the CMZ is tucked in closer to the nose of the folded structure along this section and will be further drill tested from underground.

SPD-183 was drilled along section 88SW and was designed to block off the mineralized zone on the northwestern side. This hole contains no significant results thus accomplishing its goal. The nose of the folded structure containing the bulk of the mineralization at Serra Pelada lies roughly 45 metres southeast of the trace of this hole.

SPD-184 was drilled along section 88NE and intersected the undulating boundary of the CMZ and as a result contained intercepts over a 100 metre long core length that returned values such as 12.00 metres grading 3.92 g/t gold, 12.58 g/t platinum and 21.23 g/t palladium, as well as 26.65 metres grading 5.10 g/t gold, 11.22 g/t platinum and 9.42 g/t palladium. The position of mineralization in this hole increases the estimate of the horizontal width of the CMZ by approximately five metres. The true width of the CMZ in this location will be determined by underground drilling.

Underground Delineation Drilling

Underground drilling has been slower than anticipated as a result of the distance to the mineralized zone from the previous drill bay. This was reflected in the difficulty experienced in drilling the latest series of holes to their planned depths. This challenge has been resolved with the recent commissioning of drill bays closer to the CMZ and 45 metres lower in elevation than the previous drill bay. Holes from these new drill bays will be approximately half the distance to the CMZ than the holes reported in this release.

SPUD-013 was drilled from the drill bay roughly located on section 50NE and roughly 125 metres below surface (see Figure 1). The hole intersected the beginning of the CMZ and encountered a highlight of 1.20 metres grading 17.06 g/t gold, 0.64 g/t platinum and 1.07 g/t palladium before stopping in the mineralized zone due to technical difficulties. The mineralization encountered in the hole occurred approximately five metres sooner than what was predicted from modeling based on surface drill holes in the vicinity.

SPUD-014 drilled from the same bay as SPUD-013 and was successful in intersecting mineralization from roughly 163.5-197.0 metres down the hole. The mineralization began roughly ten metres sooner than the modeling based on surface drill holes. The hole had several good intervals, the highlight of which is 3.85 metres grading 6.63 g/t gold, 1.46 g/t platinum and 2.16 g/t palladium.

SPUD-015 was drilled from the same drill bay on section 50NE as the holes mentioned above but targeting the mineralized zone along section 0. The hole was completed to the planned distance and encountered the upper portion of the CMZ along a core length of roughly 50 metres. This hole was not expected to intersect high grade values as it occurs at the very top of the system where the upper limb and CMZ meet. The hole intersected 8.90 metres grading 4.12 g/t gold, 0.62 g/t platinum and 1.06 g/t palladium. The higher grade mineralization appeared roughly 15 metres earlier than the modeling with surface drill holes had predicted once again validating the need for the underground delineation program.