Report On Mining Spring 2011 by GoodLifeConnoisseur

Spring 2011

aggressive exploration, acquisition and growth strategy $5.95

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Volume 14 | Number 1 | Spring 2011 Vancouver, British Columbia www.ReportOnMining.com Planning for Profits - Report on Mining edition is published four times a year by Fusion Publishing Inc. All rights reserved. Any reproduction or duplication without prior written consent of Fusion Publishing Inc. is strictly prohibited. Published by Fusion Publishing Inc. Canadian Office Fusion Publishing Inc. #317 – 1489 Marine Dr. West Vancouver, BC Canada V7T 1B8 1.888.925.0313 (Toll Free) USA Office Fusion Publishing Inc. 145 Tyee Dr. Pt. Roberts, WA USA 98281-9602 1.888.925.0313 (Toll Free) Publisher Terry Tremaine Associate Publisher & Editor Connie Ekelund

This year’s PDAC is expected to be the biggest ever. It comes as the mining industry is particularly vibrant. The market has pretty much recovered after the crash. Companies are able to raise money. The only complaints that I’m hearing is how difficult it is to get core results assayed. That’s mainly because so many companies are active the labs are backed up. Everyone seems to be waiting on results. This positive environment should be good to investors following the mining companies that trade on the TSX. With any luck the next decade will see nice steady growth rather than the bubbles of the last decade. Some prognosticators have actually said the whole world is going to be rich by the end of the century. Personally, since I don’t expect to be here then I’ll be very pleased with the demand for minerals just maintaining its current pace. We would continue to see wealth being created in Canada; allowing Canadians to continue to benefit from one of the most vibrant economies in the world. Canadians should be proud of the very positive impact Canadian mining companies are having in the world.

Production Manager Christie Smith Contributing Editors Grant Campbell Robert Setter Elvis Picardo Saly Lawton Account Managers 1.888.925.0313 Terry Tremaine Ext: 1002 Maureen O’Brien Ext: 2001 Marie Richards Ext: 3002

Cover Story East Asia Minerals Corporation

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Non-deliverables please return to: Fusion Publishing Inc. Report On Mining Magazine #317 - 1489 Marine Drive West Vancouver, BC Canada V7T 1B8 Subscriptions: 1 year $14.95 in Canada (+$8.00 in USA) 2 years $28.00 in Canada (+$16.00 in USA) 1.888.925.0313 x1001 info@ReportOnMining.com www.ReportOnMining.com Free Digital Subscription www.reportonmining.com The information in Planning for Profits - Report on Mining has been carefully compiled from sources believed to be reliable, but its accuracy is not guaranteed.

Gunpoint Exploration Ltd

Laurion Mineral Exploration Inc.

Trueclaim Exploration Inc.

North America 20

Eagle Hill Exploration Corp.

Gryphon Gold Corporation

South America 26

Atacama Pacific Corporation

Commodities Outlook by Elvis Picardo

PDAC Awards by Saly Lawton

On the cover: East Asia Minerals Corporation

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Spring 2011 | Planning for Profits | Report on Mining 3

ast Asia Minerals Corporation is an Asian-based Canadian minerals exploration company with gold and copper exploration properties in Indonesia and uranium and phosphate exploration properties in Mongolia. The main focus of the Company is the epithermal gold deposit discovered at Miwah in Aceh Province, North Sumatra, Indonesia. East Asia Minerals is also advancing the Sangihe and Abong gold projects and the Barisan copper-gold porphyries in Indonesia. This diversified portfolio offers significant opportunities for growth. The uncertainty after the fall of the Suharto government in 1998 and the political turmoil that followed effectively stopped exploration and development of mineral projects in Indonesia for nearly a decade. Sometimes chaos is the catalyst for change. The 2004 boxing day tsunami that ravaged Banda Aceh, was the catalyst to end the Aceh civil war which had all but halted mineral exploration development in the region. The peace that was reached in order to rebuild the Province, and the resultant changes, has allowed the region to become more autonomous and democratic, making it attractive for foreign investment.

4 Planning for Profits | Report on Mining | Spring 2011

The Government of Indonesia has been actively pursuing mining investment in Aceh as the region stabilizes and becomes more democratic. The fallout from the tsunami has forced all levels of government to become more cooperative which should allow the economy to move forward with more certainty, creating opportunities for investors and stakeholders. The management of East Asia Minerals was one of the first to recognize that a major change was taking place and became the first foreign exploration company back in to Aceh Province. The Miwah property was acquired as the country stabilized after the tsunami and political arrangement to end the Aceh civil war. There were very few companies interested in investing in the region due to the previous uncertainty. President and CEO Michael Hawkins had the experience and the expertise to recognize and then act on the opportunity unfolding in 2005. The Company built a portfolio with significant breadth and depth. Seizing these opportunities has positioned the company for excellent growth going forward.

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Core Shack at the Tengkereng Project, Aceh Province, Indonesia; Henry Wong, Indonesia Country Manager; Lionel Martin, COO; and Darryl Clark, VP Exploration at the Sipopok Prospect; Thin Section Enlargement of Gold from Miwah Project, Aceh Province, Indonesia.

The Miwah gold property is a high level, high sulphidation epithermal gold system. Recent exploration work has identified two mineralized components, an extensive thick tabular zone, the Miwah Main Zone, and vertical breccias feeder zones that are beneath and cut through the main zone, such as the identified South Miwah Bluff. East Asia actively explored the Miwah Project in 2010 completing 43 holes totalling over 9,700 metres of drilling. The Company plans to continue this aggressive pace in 2011with four drill rigs currently on the property up from only one a year ago. Drilling at the Miwah Main Zone has identified an area of mineralization with a 1.2 kilometre strike length up to 650 metres wide and with a depth of 200 metres. This zone remains open in all directions. Drilling continues in an effort to define the north-south dimension which has the potential to extend north past 700 metres. East Asia Minerals is in the process of completing an initial NI 43-101compliant resource estimate for the Miwah property and expects to have it completed by the second quarter of 2011. The Company is planning to begin metallurgical and environmental testing as well as a scoping level study later this year. In 2009, East Asia Minerals discovered a new mineralized zone, the South Miwah Bluff, which is located just south of the Miwah Main Zone. The South Miwah Bluff contains a mineralized zone 650 metres by 300 metres.

Exploration on the South Miwah Bluff has consisted of rock channel sampling, tight spaced grid soil sampling and detailed mapping. Rock chip sampling has identified gold rich mineralization, with rock sawn channel sampling having produced samples of 83.59 g/t gold over 24 metres. Four scout drill holes have been completed and encountered significant gold mineralization. The company is planning to actively drill this zone during 2011. The mineralization continues to the north of the Miwah Main Zone for an estimated 700 metres to the Moon River Zone. The exploration of this extension is at a very early stage but encouraging results have been found in the Moon River Zone. Recent drill holes have shown strong gold mineralization, including 1.83 g/t gold over 86 metres. The mineralization also appears to extend a further 1.5 kilometres to the north of the Miwah Main Zone as indicated by strong gold mineralization in the recently discovered Sipopok Zone. Mapping and scout drilling on this zone have found an area of altered and mineralized rock 600 metres long, 300 metres wide and 200 metres thick. These zones on the Miwah property offer excellent opportunity to increase the size of the discovery beyond the initial NI 43-101 resource estimate, with the potential for the Miwah project to become a multi-million ounce gold deposit. EAS Senior and Indonesia Management Team

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Spring 2011 | Planning for Profits | Report on Mining 5

Another key focus of East Asia Minerals in 2011 will be exploration at selected gold and copper prospects at Barisan. Initial exploration at Barisan has identified a 20 kilometre long porphyry belt which is open along strike. Geological mapping, sampling and drilling are on-going to discover new high priority targets. Mapping and sampling on the Upper Tengkereng property has identified a strong quartz stock work and two holes have been drilled. Completed in January 2011, UTD002 encountered 0.39 g/t gold and 0.30% copper over the full 690.9 metres length of the hole, including 1.17 g/t gold and 0.48% copper over 58.9 metres at the end of hole. Lower Tengkereng is located approximately 1.5 kilometres southwest of Upper Tengkereng. Two drill holes have confirmed the presence of a significant gold-copper porphyry system. Drilling in 2011 will attempt to confirm the size and grade of the ore contained on the property. The Upper Ise-Ise and Bahu prospects are early stage exploration targets and initial drilling is planned for 2011. Also part of the Barisan properties is the Abong deposit, a near surface low sulphidation epithermal gold system. East Asia Minerals drilled 130 holes totalling 8,657 metres on the property in 2008. This deposit remains open in all directions, with additional drilling planned for 2011 prior to calculating an initial NI 43-101 compliant resource estimate. A third focus of East Asia Minerals in 2011 will be the Sangihe project, located on Sangihe Island in Northern Sulawesi. The Sangihe project includes numerous epithermal and porphyry gold and copper prospects. An initial NI 43-101 compliant resource estimate was completed in September 2010 based on 79 diamond drill holes (7,561 metres) and almost 1,700 surface samples. At a 0.25 g/t gold cut-off, the inferred resource is estimated at 27 million tonnes averaging 0.95 g/t gold and 13.58 g/t silver for 836,718 ounces gold and 11,927,237 ounces silver in near and at surface oxides and sulphides. The deposit remains open along strike. Near-term exploration focus will be on expanding the current resource and identifying new deposits on the projectâ&#x20AC;&#x2122;s tenements. The Takengon property, Aceh Province, is a large partially exposed multi-stage gold bearing quartz vein system. Rock channel sampling has returned samples of 22.2 g/t gold over 11 metres and 14.99 g/t over 11 metres. Recent mapping and trenching have exposed an additional gold bearing vein with a strike length of approximately 600 metres. The Tangse property, Aceh Province, is a large porphyry containing copperâ&#x20AC;&#x201C;molybdenum mineralization containing a historically calculated (non NI 43-101 compliant) resource of 600Mt at 0.15% copper, 0.02% molybdenum, and surface oxide copper zone of 30Mt at 0.7 â&#x20AC;&#x201C; 0.8% copper.

6 Planning for Profits | Report on Mining | Spring 2011

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Photos, clockwise, starting at top left: Miwah Project, Aceh Province, Indonesia: Michael Hawkins, President & CEO (centre), Examining Core; Miwah Main Zone map; Aceh Properties; Thin Section Enlargement of Gold from Miwah Project, Aceh Province, Indonesia; Miwah Project, Aceh Province, Indonesia: Outcrop at Moon River; Miwah Regional Targets Over Aeromagnetics; Helicopter Support for EAS Indonesian Exploration Projects; East Asia Properties.

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Spring 2011 | Planning for Profits | Report on Mining 7

The creation of this impressive portfolio of precious metal properties has been successful in large part to the effort of East Asia Mineralsâ&#x20AC;&#x2122; President & CEO, Michael Hawkins. Mr. Hawkins has 31 years of exploration and development experience in the mining sector. He has extensive experience in Asia including Indonesia and Mongolia previously with AngloGold Ashanti, Highlands Pacific, MIM and Cominco. Mr. Hawkins has been working and living in this region for a number of years and recognized that the political situation in the region had stabilized offering an excellent opportunity for precious metal exploration and development. Chief Operating Officer (COO), Lionel Martin, has 31 years of exploration experience in Asia, Canada and Africa previously with Noranda and Eldorado Nuclear (Cameco). CFO Michael Nayyar has 16 years accounting, financial management and regulatory experience in the mining and metals sector. Darryl Clark, VP Exploration, has 17 years of exploration and development experience in Australia and Asia previously with BHP Billiton, Vale Mongolia, Vale Minerals Exploration Australasia. Alex Granger, VP Business Development, has 12 years experience in Canada, United States, China, Australia and Hong Kong previously with CIBC World Markets. Nick Kohlmann, Corporate Communications, has 31 years exploration and investor relations experience in Asia, Africa and North America previously with CHF Investor Relations, Santa Fe Pacific Gold, FMC Gold Corp. and US Gold Corp. The East Asia Minerals management team has the extensive experience and expertise in this region that will be required in order to successfully move these projects forward through the various stages of development. Indonesia has a global reputation for successful precious metal exploration and development with a number of world class mines in production. East Asia Minerals is very well positioned to discover and develop the next multi-million ounce precious metal mine in the region. The Company holds a preeminent and very large land position in an area well known for discovery of gold, management has the experience and expertise to move the projects forward, and the future looks very promising for the shareholders of East Asia Minerals.

8 Planning for Profits | Report on Mining | Spring 2011

Miwah Looking North East; Miwah Camp Construction, Aceh Province, Indonesia.

East Asia Minerals Corporation Ste. 999, 900 West Hastings Street Vancouver, BC, Canada V6C 2W2 Phone: 416.792.8734 info@EAminerals.com www.EAminerals.com TSX.V: EAS Year Hi/Low: $8.73/$2.81

www.ReportOnMining.com

EAS TSX V •

Exploring Advanced Gold Projects Miwah • Sangihe • Barisan • Abong •

East Asia Minerals is a well-financed, Asian-based, Canadian mineral exploration company with an aggressive exploration, acquisition and growth strategy. It explores for epithermal gold and porphyry gold-copper mineralization on advanced projects in Indonesia and uranium and phosphate in Mongolia.

For more information, please contact:

Nick Kohlmann Toronto 416.792.8734 Kohlmann@EAminerals.com Mark Patchett Vancouver 604.684.2183 Patchett@EAminerals.com

www.EAminerals.com www.ReportOnMining.com

Spring 2011 | Planning for Profits | Report on Mining 9

Metals Economics Group Pipeline Activity Index reaches a new high as financing activity skyrockets

etals Economics Group Pipeline Activity Index (PAI) rose for the fifth consecutive month in December, setting a new high-water mark for the 32-month period since MEG initiated the PAI. The increase in the number of significant drill results and initial resource announcements in the latter half of the year contributed to a steady rise in the PAI since July; however the jump in the number of financings completed over the last few months of the year—particularly in November and December as some juniors rushed to close financings before year-end—drove the PAI’s steep upward trajectory over the fourth quarter.

The industry’s aggregate market capitalization for December also set a new high since MEG initiated the PAI, reaching almost $2.36 trillion—a far cry from the low of $656 million in November 2008. The number of significant drill results reported increased in November 2010, before slowing in December for the holiday season. North America continued to be the main destination for gold explorers, while Latin America led the way in base metals for the second consecutive bimonthly period. Apart from a slow December 2010, gold results virtually mirrored the relative gold price, while base metals results appear to have regained the momentum lost for most of 2009.

MEG Pipeline Activity Index (PAI), January 2011 MEG Pipeline Activity Index (PAI)

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MEG Pipeline Activity Index and Indexed Metals Price

Aggregate Market Capitalization (US$ bil)

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Monthly PAI and MCap

10 Planning for Profits | Report on Mining | Spring 2011 www.ReportOnMining.com

Significant Financings Gold Financings

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$6,000

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$5,500 $5,000

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$4,000 150

$3,500 $3,000 $2,500

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$4,500

$1,500 50

$1,000 $500

Dec-10

Nov-10

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0 Feb-09

Initial resource announcements in the November-December period remained above the 2010 bimonthly average, but were still well below the levels seen prior to mid-2009. The relatively low number of new initial resources is primarily the result of a continuing dearth in initial base metals resources. Given the increase in earlier-stage drill activity observed since early 2010—especially for base metals since mid-year—MEG expects the number of initial resource announcements will eventually rise. The overall value of initial resources reported in the latest period is down from September-October 2010. The largest new resource announced in the period was for the Claude Hills deposit at Metals X’s Central Musgrave nickel laterite project in Australia, which straddles a tenement subject to a JV agreement with Rio Tinto. The number of significant financings completed by junior and intermediate companies continued to be the main driver of the PAI in November-December 2010. The bimonthly total was 62% above the previous high of $4.5 billion raised in NovemberDecember 2009, and the amount raised in December 2010 is more than double the next-highest month (November 2009 = $2.55 billion). In 2010, a total of 66 qualifying IPOs (each for at least $2 million) raised a combined $1.5 billion, including 25 completed in November-December 2010 for $721.2 million. www.ReportOnMining.com

The MEG Pipeline Activity Index (PAI) measures the level and direction of overall activity in the supply pipeline, incorporating significant drill results, initial resource announcements, project development milestones, and significant financings into a single comparable index. The PAI is featured in the MEG Industry Monitor—a series of comprehensive graphs and charts, with related commentary, illustrating MEG’s analysis of monthly changes and emerging trends in the base and precious metals pipeline. Using information only available from MEG, the Industry Monitor tracks developments based on announcements over the past two years of significant drill results, initial new resources, project development milestones, significant financings, and acquisitions. For more information on the PAI, visit Metals Economics Group’s web site at www.metalseconomics.com. About Metals Economics Group (www.metalseconomics.com) Metals Economics Group (MEG) is the most trusted source of global mining information and analysis. We draw on three decades of comprehensive information and analysis, with an unsurpassed level of experience and historical data. To help our clients reach better decisions more quickly, we supply raw data and sophisticated analysis based on unbiased research and reporting. From worldwide exploration, development, and production to strategic planning and acquisitions activity—our databases and studies help you make confident decisions and, ultimately, improve results. Contact: Nadine Tanner, Director, Marketing, Metals Economics Group, Suite 300, 1718 Argyle St., Halifax, Nova Scotia, Canada B3J 3N6. T: +1 902.429.2880; F: +1 902.429.6593; ntanner@metalseconomics.com. Spring 2011 | Planning for Profits | Report on Mining 11

unpoint Exploration Ltd. is a Canadian-based precious metal exploration company focused on its 100%-owned Talapoosa Gold project. The Talapoosa property consists of 10,780 acres and is located in northwestern Nevada approximately 45 kilometres east of Reno. Nevada has a long history of successful precious metal exploration and development going back over 150 years. Nevada is also known as a mining friendly jurisdiction with stable and well-defined mining laws and regulations. The flagship Talapoosa Gold property is a lowsulphidation vein/breccias-hosted epithermal gold-silver deposit. The property has an NI 43-101 compliant combined measured plus indicated plus inferred resource of 958,000 ounces of gold (32.3 million tonnes grading 1 gram per tonne gold and 12 grams per tonne silver). The resource estimate is based on 564 drill holes totalling 71,000 metres that were drilled prior to 1991 by Homestake, Placer Dome, Pegasus, Miramar, and Kennecott. The majority of these holes were vertical down to a depth of only 200 metres.

The mineralization consists of a south dipping body of hydrothermal brecciation and discontinuous irregular veining, which is cut by steeply dipping higher grade veins that were selectively mined in the past. The possibility exists that the overall grade of the Talapoosa ore body may have been understated due to the predominance of vertical drill holes. Initially Gunpoint is planning a 3,000 metre drill program for early 2011, to test potential high-grade vein mineralization peripheral to and beneath the existing resource and as well several IP anomalies with outcropping high-grade vein targets elsewhere on the property. At a later date, the company intends to drill additional inclined holes into the existing resource in an effort to increase the grade of the resource.

Right: Zebra: â&#x20AC;&#x201D; 1km+ quartz boulder vein zone. Below: Zebra property.

12 Planning for Profits | Report on Mining | Spring 2011

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Left: Sinter - veining up to 9 grams per tonne gold in trench. Right: Sinter beds. Below: Historic adit zone, values up to 2 ounces per tonne gold.

In late 2010, Gunpoint completed a program of surface mapping, rock chip sampling, induced polarization and ground magnetic surveys. The work program identified the Appaloosa Structure, approximately two kilometres north of Talapoosa, as a high priority target. Samples taken from outcropping veins have assayed as high as16 grams per tonne gold over a three metre interval. Individual grab samples from dump material assayed as high as 64 grams per tonne gold, in accordance with records of limited historic production. Sinter, high-level hydrothermal breccias and opal-chalcedony veining with anomalous gold, arsenic, antimony and mercury geochemistry, have been mapped over a five kilometre interval of this Appaloosa structure. This large untested area offers excellent potential for increasing the resource on the property.

The Talapoosa property offers Gunpoint an excellent advanced stage exploration project with tremendous blue sky upside. The 2011 drill program will focus on expanding the known resource through step-out and in-fill drilling coupled with the opportunity of a potentially significant discovery on the Appaloosa Structure. Gunpoint Exploration Ltd. is a newly formed company created by restructuring the Christopher James Gold Corp (CJG:TSX.V) and adding several properties from Chesapeake Gold Corp (CKG:TSX.V) including the Talapoosa property. Gunpoint also acquired from Chesapeake two properties in Mexico, the Le Cecilia gold-silver project located in Sonora State and the Le Gitana gold project located in Oaxaca State. As a result, Chesapeake currently owns 32,017,899 shares of Gunpoint representing an 82% equity position. Proposed Talapoosa pit area.

www.ReportOnMining.com

Spring 2011 | Planning for Profits | Report on Mining 13

Left to right: Dick Sillitoe examining veins of Appaloosa Breccias; Microwave towers — abundant vein float; Rock Blind Spring — steep dipping fractures; Appaloosa — high level textures, calcite replacement.

The two Mexican properties are in the early stage of exploration and development, the La Cecilia project is a classic low-sulfidation, epithermal gold-silver system associated with a rhyolite dome complex. The mineralization consists of a high grade vein system over a strike length of 1,000 metres. A shallow drill program conducted in 1995 by Cambior Inc. produced near surface intercepts of 30 metres grading 1.4 grams per tonne gold and 42 metres grading 0.5 metres per tonne. Subsequent surface work by Chesapeake has identified a new prospective area with a channel cut returning 119 metres grading 0.9 grams per tonne gold. The La Gitana project which comprises three mineral claims is 75% owned by Gunpoint and 25% owned by Goldcorp. In 2006, Chesapeake drilled 40 holes along a 1,000 metre section which confirmed the existence of a welldefined mineralized zone 500 metres long, 50 to 150 metres wide with depths ranging from 50 to 300 metres. The deposit remains open along strike and at depth. While Gunpoint will be concentrating on the Talapoosa project in an effort to increase shareholder value, the Mexican properties offer shareholders additional upside potential over the longer term. 14 Planning for Profits | Report on Mining | Spring 2011

The executive team at Gunpoint has extensive experience in the exploration and development of precious deposits. The President and CEO, Dr. E. Max Baker, is an exploration geologist with over 30 years international exploration experience in the Americas, Asia, Australia and Europe. Recently he was the director of Exploration for Oriel Resources PLC, in Kazakhstan and Russia. He has been Chief Geologist for Newcrest Mining Ltd., Chief Geologist for MIM Holdings Ltd. and Principle Geologist for Renison Goldfield Corporation. Dr. Baker has extensive experience from grass roots level target generation through to the design and management of advanced stage exploration programs. Board Chairman P. Randy Reifel has over 28 years of executive experience in the mining sector. Mr. Reifel’s distinguished career includes being president of Carson Gold Corp. which recognised the potential of the Kilometer 88 discovery in Venezuela during the late 1980s and subsequently, President of Francisco Gold Corp. which discovered the El Sauza and Marlin gold deposits before being acquired by Glamis Gold Corp. for $390 million in 2002. Mr. Reifel is currently a director of Goldcorp Inc. www.ReportOnMining.com

CFO Paul Robinson, a Chartered Accountant, has extensive experience in the mining and mineral sector, including working with numerous junior mining companies as well as 12 years with Ernst & Young and Deloitte & Touche LLP. Director Gerald Sneddon has over 45 years experience in the mining industry both international and domestic. Mr. Sneddon has held executive positions at Anaconda Company, Kaiser Steel, Beker Industries and Morrison Knudson. Director Daniel Kunz, a professional engineer, has over 30 years experience in mining, construction and the financing of resource projects. He is the former President of Ivanhoe Mines Ltd. Gunpoint recently completed a $1.5 million financing in conjunction with the restructuring. Chesapeake has also contributed an additional $1 million in cash and securities in order to fund the planned 2011 exploration program. The exploration program for the Talapoosa property is now fully funded with results expected to be released throughout the year. The management and board of directors at Gunpoint exploration bring the experience and expertise required to successfully move the Talapoosa project forward through the exploration and development stages. www.ReportOnMining.com

With gold at current levels, the Talapoosa gold project offers investors an excellent opportunity to participate in the development of a property with a known gold equivalent resource close to 1 million ounces and with the potential of substantial upside as exploration continues. This is the time in the exploration and development process when the potential rewards are the greatest. Investors looking for an exploration stage company operating in a politically stable and well known exploration region with experienced management will see an excellent opportunity in Gunpoint Exploration Ltd. (GUN:TSX.V)

Gunpoint Exploration Ltd. 1620 - 1140 West Pender Street Vancouver, BC, Canada V6B 4G1 Phone: 1.604.408.8829 info@gunpointexploration.com www.gunpointexploration.com TSX.V: GUN Year Hi/Low: $1.80/0.50

Spring 2011 | Planning for Profits | Report on Mining 15

Making the Transition from Explorer to Producer L

aurion Mineral Exploration Inc. (TSX-V: LME and OTCQX: LMEFF) is primarily a gold exploration company, focused on developing and advancing its gold mines located in historically mine-friendly districts with political and economic stability and well-developed infrastructure in Ontario and Nevada. Laurion is well-funded to complete the next phases of drilling and exploration work on the Bell Mountain and Sturgeon River Gold Projects and to successfully advance these projects, moving the Corporation closer to being a near-term producer.

Sturgeon River Property The 100%-owned Sturgeon River Property is located 21 kilometres northeast of the town of Beardmore, Ontario and is comprised of 35 contiguous mining claims leases totalling 656.8 Ha. A recent deep drilling program of approximately 3,478 metres was completed on the Sturgeon River Mine successfully testing the down dip extension of the No. 3 vein, targeting the M, 10 and 11 veins in the areas below the deepest Sturgeon Mine workings at 1,800 feet (549 metres). Historical reports suggest a target deposit of a 300,000 400,000 ton resource at 0.12 ounces to 0.17 ounces/ tonne gold (3.75 to 5.30 g/t) down to the 2,000 foot (610 metre) level.

Compilation of the historic workings coupled with the current deep drilling further justified by encouraging results of comprehensive sampling of the adjacent historical low grade gold surface rock pile (assays up to 32 g/t gold) and the mill tailings (assays up to 21.9g/t gold) will result in the generation of a National Instrument 43-101 compliant resource report. Laurion recently completed a very comprehensive prospecting program, identifying two new zones of mineralization, the Tala and Asha Zones and two additional zones, the Tehya and Ahki zones which will be priority targets for a multi-metallic deposit with high grade gold from quartz veining. The Tala Zone reported samples assaying up to 124 g/t gold with 79 g/t silver. Higher assay values were clustered along an east-northeast trend which extends over 1 kilometre of strike length. The Asha Zone reported values ranging from non-detectable gold to 9.87 g/t gold with 136 g/t silver. Higher assay values were clustered along an east-northeast trend over 1.8 kilometres of strike length. Sampling conducted within the Tehya massive sulphide zone, averaged 6.13% zinc, 1.40% copper, 45.6 g/t silver, and 0.63 g/t gold. In addition, approximately 30 metres southwest of the Tehya zone, a quartz vein (A11 vein) returned samples of 57.2 g/t gold and 21.1 g/t silver.

Sturgeon River Property; Tehya Zone, LME 1008. 16 Planning for Profits | Report on Mining | Spring 2011

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Bell Mountain Map; Multiphase stockwork veining; sample.

Drill hole LME10-07 reported 3.91% zinc, 0.94% copper, 27.80 g/t silver and 0.45 g/t gold over 4.08 metres on the Tehya Zone. In addition this hole intersected a sub-parallel quartz vein that graded 2.28 g/t gold over 1.13 metres. The Tehya zone was then stripped and the overburden exposed, displaying sulphide mineralization approximately 15 metres which was then mapped and channel sampled with assays of 7.44% zinc, 0.91% copper, 30.8 g/t silver and 0.17g/t gold over 1.50 metres and 3.07% zinc, 0.32 % copper, 14.7g/t silver and 0.19 g/t gold over 4.05 metres. In addition a zone of gold bearing quartz veining located 10 metres structurally above the Tehya sulphide zones was exposed for approximately 35 metres which returned assays of 29.50g/t gold and 13.40 g/t gold over 0.50 metres. The Sturgeon River Property continues to show encouraging results from high grade gold quartz veins and shear hosted gold with significant zinc, copper and silver mineralization and highlight the potential lateral extent of the Sturgeon River Mine vein systems. The Bell Mountain Gold Property The 100%-owned Bell Mountain lies in the south-eastern part of Churchill County in west-central Nevada (USA). The property totals 995 hectares and consists of three zones of mineralization: the Spurr, Varga, and Sphinx. Mineralization in this area forms an epithermal, low-sulfidation, volcanichosted, caldera-related deposit located in the prolific Walker Lane, which is the host to many major gold producing districts such as the Comstock, Round Mountain, Paradise Peak, Bullfrog, Tonopah, Goldfield, Rawhide and several others. The Bell Mountain was previously permitted for production in 1992 by N.A. Degerstrom Inc. to process known ore resources of 2.1 Mt (1.33 g/t gold and 37.6 g/t silver â&#x20AC;&#x201C; 143,456 ounce gold equivalent). The project which indicated excellent amenability to open pit mining and heap leaching was shelved in 1993. Observations of the limits of the veins suggested that the historic resources of 2.1 Mt could be increased considerably both laterally and at greater depth.

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The Bell Mountain deposit was drill tested to a maximum depth of 75 metres with an average depth of 45 metres, providing an excellent opportunity under the current gold price to significantly expand the historic resources and open pit to depth and on strike. Laurion completed a 56 holes and 14,240 feet reverse circulation drill program in late 2010, which effectively delineated the eastern and western limits of the main Spurr body and was successful in identifying and delineating the economically significant South Fault mineralization along the southern boundary of the main Varga Zone. Drilling of the western 200 metres of the Varga deposit clearly defined the extent and continuity of similar heap-leach grade mineralization. Most importantly drilling was successful in expanding the lateral strike length of the historical Degerstrom open pit design. Additional attractive targets have been identified on the Property with little exploration outside the known resource, leaving excellent room for expansion. Laurionâ&#x20AC;&#x2122;s main objective is to bring the 100%-owned Bell Mountain gold property into production. The main focus in 2011 will be the completion of a NI 43-101 compliant resource report, the relevant environmental studies to obtain the various permits to develop and operate an open pit and processing facility and final full feasibility study. The projectâ&#x20AC;&#x2122;s timeline for production will be challenging as the goal is to potentially achieve production in 2013.

Laurion Mineral Exploration Inc. Cynthia Le Sueur-Aquin #2900 - 333 Bay Street, Bay Adelaide Centre Toronto, ON, Canada M5H 2T4 Phone: 1.705.788.9186 Fax: 1.705.788.9187 Email: clesueuraquin@laurion.ca www.laurion.ca TSX.V: LME Year Hi/Low: $0.15/0.045

Spring 2011 | Planning for Profits | Report on Mining 17

rueclaim Exploration Inc. (TSX:V-TRM; OTCQXTRMNF) has recently raised funding to enable it to advance its plan to: acquire former producers with known mineral resources; test, confirm and expand known mineralization; explore for additional resources; develop ore bodies to production; and build solid relationships with investors and providers of capital, regulatory authorities and First Nations. Trueclaim has optioned the Scadding Gold Mine in Ontario. The Phase I drill program in February 2010 produced multiple high-grade gold intercepts in several zones. Drilling is again underway (Winter 2011) on the property area of approximately 45,000 acres. Trueclaim has also optioned claims in Arizona, the Black Diamond Silver Project, located approximately 100 kilometres east of Phoenix. Several shafts have been sunk, and one jumbo vein was reported to have values of several hundred to several thousand ounces per ton of native silver over a width of 6 to 16”. Scadding Project Located in Scadding Township, approximately 50 kilometres northeast of Sudbury, Ontario, the Scadding mine reportedly produced approximately 914 kilograms (29,400 oz) of gold from 127,000 tonnes of ore grading 7.2 grams gold/tonne between 1984 and 1990.

Gold mineralization is hosted in five zones of structurally-controlled breccias within quartzites. Scadding Township and neighbouring Davis Township have more gold occurrences than any other similar sized area in the Sudbury District. Trueclaim holds the largest land position in this area and has completed a Phase I drilling program to confirm and define the known mineralized zones and is well along on the 10,000 metre Phase II drill program. The Phase I program consisted of 30 drill holes totalling 3,275 metres spread across all five zones. The 10,000 metre drill program is intended to further evaluate areas of limited drilling, enhance confidence levels for continuity of mineralization and to obtain a database suitable for a NI 43-101 compliant inferred resource. The first 2,000 metres drilled November to December 2010 included a total of 635 metres drilled in five holes on the Scadding mine site area. The use of surveyed drill hole collars and 3D modeling of both historic and current drill data has enabled precision drill targeting and a more detailed evaluation of the structurally controlled mineralization. Trueclaim is the first to import and use the Innovx Systems Delta handheld XRF unit in Canada. This cutting edge technology allows the collection of information on variations of rock elemental composition in the field within minutes, speeding up mineral resource evaluation. Trueclaim is proud that it has signed a Memorandum of Understanding (“MOU”) with the Wahnapitae First Nation respecting Trueclaim’s mineral exploration, mineral development and closure operations on the part of its Scadding Project that lies within the Wahnapitae Nation Traditional Territory. The MOU demonstrates Wahnapitae First Nation’s and Trueclaim’s commitment to a working relationship.

TRM President and geologists examine fresh stripping; using XRF on outcrop.

18 Planning for Profits | Report on Mining | Spring 2011

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Clockwise: Measuring the core; veining; Visible gold in cut core

Black Diamond Project Trueclaim Exploration is also active on the 100%-optioned Black Diamond high-grade silver prospect in Gila County, about 100 miles east of Phoenix, Arizona. Encompassing about 2,500 acres, the road accessible claim group includes two past-producing mines—the McMorris and the Silver Seven mines—as well as several smaller mines. The area was first discovered in the late 1800s and widely mined near surface by local prospectors, although there is one shaft that was sunk to the 700-foot level. The old mine workings produced silver along numerous and lengthy fractures from veins in various grades and quantities. The Jumbo Vein is reported to host silver values of several hundred to several thousand ounces per ton of native and horn silver over widths from 6-16 inches. The Company has contracted Nick Barr, an Arizona-based geologist, to act as project geologist for the Project. Barr has extensive experience working in this area and will provide geological services, implement preliminary exploration and assist with permitting. Bob Komarechka, Trueclaim’s senior geologist, has provided Barr with a preliminary geological program to identify zones of interest and potential drill targets. www.ReportOnMining.com

A Phase I exploration program is being designed for the Arizona silver property with the initial work to comprise a geo-referenced geological mapping and sampling program; a magnetic susceptibility measurement survey; a field handheld XRF (X-ray fluorescence) geochemical survey of the veins and local soils and; a magnetic and electromagnetic survey to locate conductive mineralized zones associated with and adjacent to a later less magnetic diorite intrusive. This intrusive is believed by some geologists to be associated with the silver emplacement. The company expects it will commence a drill program on the Arizona property in early 2011, subject to permitting and drill availability. “The site is rich in both potential and development history and is viewed by the company as an outstanding opportunity,” said John Carter, President of Trueclaim. “Our initial review of the property has included numerous historical geological reports on the Richmond Basin area. We feel the Black Diamond property may have significant exploration potential.” The Black Diamond property region is highly mineralized and is home to a number of large producing copper and silver mines. Trueclaim has an experienced board of directors, management team and geological team capable of executing its business plan.

Trueclaim Exploration Inc. One London Place 255 Queens Avenue, Suite 1000 London, ON, Canada N6A 5R8 IR Tel: 1.877.881.0306 IR Email: jelbert@trueclaim.ca www.trueclaim.ca

TSX.V: TRM; OTCQX-TRMNF Year Hi/Low: $0.235/$0.09 Spring 2011 | Planning for Profits | Report on Mining 19

agle Hill Exploration Corporation is a Canadian mineral exploration company focused on the exploration and development of gold and precious metal prospects. The Company is set to become an advanced stage gold and precious metal exploration company with the progressing development of the Windfall Lake high grade gold property, located in Urban Township, Québec, between Val-D’Or and Chibougamau. Eagle Hill seeks projects that contain or indicate the existence of a large resource potential. In January of this year, Brad Kitchen, Chief Executive Officer of Eagle Hill Exploration, discussed his outlook for the company and plans for the future. Mr. Kitchen previously served as Vice President of CIBC World Markets (formerly CIBC Wood Gundy Securities) and TD Securities for eleven plus years prior to leading Eagle Hill since the company began in 2006.

20 Planning for Profits | Report on Mining | Spring 2011

History Eagle Hill has had the property for just over a year so this is really an old “new” story. This piece of property was essentially abandoned by the previous owners with the discovery of what became known as “the ring of fire”. When this was announced the market cap jumped from 100 million to 1 billion in very short order. Subsequent pressure from institutional ownership distracted management and the focus came off of Windfall Lake. Windfall Lake’s history may be a factor in what appears to be an attractive share price now with skewed sentiments lingering in the minds of potential stock purchasers familiar with the story. At that time, the previous management continued to focus on narrow high grade veins including 52.3 ounces per ton over 4.8 metres.

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Windfall Lake — surface near F17.

Today Once Eagle Hill acquired the property things quickly started to fall into place as IBK Capital approached them with an offer for a $30,000,000 funding commitment. The money raised has since been used for drilling, and to put together a strong advisory team and board. They spent four-six months assessing results including looking at mineralization, and bulk tonnage scenarios. There are 95,400.000 shares outstanding and roughly $3,000,000 cash on hand. Mr. Kitchen noted that was cash on hand even after accounting for half of the scheduled drilling program upcoming in the first part of 2011. Liquidity “Trading is strong with great liquidity and shares trading in the 600-700 thousand range per day,” which is excellent for a junior company where liquidity can often be problematic if not a deterrent for the retail investor. Mr. Kitchen was excited about the fact that Eagle Hill was trading strongly in Germany with 200,000 to 300,000 shares changing hands daily on the Frankfurt Exchange. “They like this kind of company in Germany especially as we are not about hype but about a conservative, logical, step-by-step analytical scientific approach to the mining exploration business and that is appealing to investors in the German market.” Right now the stock is 97% retail held which “is not necessarily a bad thing” but management expects that by the summer of 2011 more institutions will be getting on board after an anticipated 43-101 compliant resource estimate is issued. Going forward, more institutional ownership would certainly be welcomed. www.ReportOnMining.com

Upcoming Mr. Kitchen articulated, “Eagle Hill does a lot of brainwork to go with the drilling; we want to understand how the gold is situated in the ground not just that it’s there. We have been focused on a 300m x 300m x 300m cube but we have a 12km x 20km area in the Abitibi gold belt so we are excited to open this up in a big way. There are four more blocks or cubes we will be getting into with the next drilling program and we see a lot of upside here.” Brad emphasized that there is not a better place to do business than in the province of Québec. The First Nations Bank they work with has been very supportive as has the provincial government. Mr. Kitchen explained Eagle Hill receives a grant back of 43% of the money they spend on exploration from the Québec provincial government. Resource Estimate Eagle Hill Exploration has not yet come up with a 43101 compliant resource estimate on the property as the nature of the project has changed since new Eagle Hill management took over the property. Mr. Kitchen explained that management was more comfortable waiting until they had a clear picture and could confirm one million compliant ounces under 43-101 standards before issuing a statement. When pressed, Mr. Kitchen did suggest “they were getting pretty close now” as they are in the middle of a 10,000 metre drilling program and the results are helping to fully understand the geology in the area.

Spring 2011 | Planning for Profits | Report on Mining 21

22 Planning for Profits | Report on Mining | Spring 2011

www.ReportOnMining.com

Eagle Hill Exploration started using “GoCad” which is a first for a mining explorer as far as Mr. Kitchen knows. This software is widely used in oil and gas exploration. The main benefits are that the software analyzes ten different components which results in a much more effective modeling tool. “We now know we have at least six gold zones.” Drill Results “Bulk tonnage has now become the focus for Eagle Hill.” With the first drill results released March 17, 2010 of 14.2 g/t over 52 metres, the stock price took off but soon cooled as no follow up plans were in place at that time. However, much more importantly, the gold mineralization zone was extended 46 metres to the southwest and remains open. Last summer they drilled 14 holes and had gold intercepts on all 14. With the property’s history of high grade finds, including 18.82 g/t over 9.9 metres on December 15, 2010, 17.36 g/t uncut 12 metre intersect that extended Zone 27 on September 20, 2010, and 14.2 g/t over 52 metres on March 17, 2010, the results speak for themselves. Share Price “We have not been promoting, just building value in the asset.” The share price will move once people realize what we have and they are starting to do that.” I suggested the share price seemed low and the stock somewhat of a bargain under 30 cents with a recent price range of 27-30 cents. Mr. Kitchen noted that the past share price has been dampened by the fact that there was a period last year where little news came out and so the stock price retreated from its rolling 52 week high. Mr. Kitchen agreed about the price point and again reasserted Eagle Hill Explorations’ goal to create value in the asset rather than focus on short term share price. Factoring in the gold in the ground value and the number of outstanding shares, assuming one million ounces of gold and the 75% ownership Eagle Hill has in the property suggests a share price in the .70 to 1.30 range before long. Since the recession hit in 2008, gold in the ground market valuations have changed with the inferred and measured/indicated categories being discounted and a premium placed on the more certain proven/ probable from $100 pre-recession to $150 per ounce today. This would be consistent with a higher share price for EAG. Management “We have good management in place; a solid working camp, low drilling costs, and a strong board.” Mr. Kitchen mentioned they were pleased to have Richard Nemis as a Director. Richard established Noront Resources and brings considerable expertise. John Harvey who was the former Chief Operating Officer of Noront Resources is also on board as an advisor. Gerald Ruth, the former head of listings on the big board at the TSX is part of the team and provides expertise with mergers and acquisitions. www.ReportOnMining.com

Eagle Hill management was also very pleased to get Dr. Desrochers on as Chief Geologist since he knows Windfall Lake having worked on the property while with Murgor Resources. Dr. Desrochers also held senior positions with AUR Resources and SRK consulting. Mr. Kitchen explained that between the entire team of eight, they have at least a collective 350 years mining and related experience. Globally “We’re in good shape right now,” with the current gold price in the $1,300s U.S. per ounce and gold’s price environment going forward. We are very encouraged that gold will stay around this level or head even higher. Mr. Kitchen identified three factors for this, first, the large amount of global uncertainty that continues to this day resulting in a general flight to quality. The second is that the Chinese government has recently relaxed restrictions on gold ownership. This alone has the potential to increase physical demand for some time to come as the Chinese economy grows and individual wealth rises for the average citizen. Thirdly, is the existence of inflation with respect to the amount of money being printed by many governments around the world, most notably in America. Also interesting from a long term viewpoint is the Dow Average Gold Price ratio where the number of ounces of gold required to buy the Dow is tracked over time. The charts show it took just 1.5-2 ounces in the early 1980s but nearly 50 by 1999. Using $1,350 gold U.S. per ounce and with the Dow at 11,500 the ratio is already down to 8.5 ounces. In my estimation, this company should be on any serious gold fans watch list. The Company’s website at www.eaglehillexploration. com and public filings at www.sedar.com provide additional detailed information on its properties and other related documentation with respect to its management and operations.

Eagle Hill Exploration Corp. 601-999 Canada Place Vancouver, BC, Canada V6C 3E1 Phone: 604.697.5791 Fax: 604.697.0790 Email: info@eaglehillexploration.com www.eaglehillexploration.com TSX.V: EAG Year Hi/Low: $0.62 - 0.13

Spring 2011 | Planning for Profits | Report on Mining 23

GRYPHON GOLD C O R P O R A T I O N

ryphon Gold Corporation is an American-based mining and development company that trades in Canada on the TSX as symbol GGN and over the counter in the U.S. as symbol GYPH. After the successful private placement in January 2011, Gryphon Gold has 96.4 million shares outstanding. With extensive holdings covering approximately 17,600 acres including the Borealis property and the 60 Nevada exploration properties covering another 70 square miles, all of which are located in Nevada’s most desirable gold trends, Gryphon management is well prepared to move into production in the near future. Gryphon sits on an asset that contains 1.4 million ounces of measured and indicated gold resources and another 1.1 million ounces of inferred gold resources. Gryphon Gold is lead by Mr. John Key, President and CEO. On February 5, 2008 Mr. Key was appointed Chief Operating Officer and has since moved into his current role as President, CEO, and Director. A graduate of the University of Missouri – Rolla with an M.S. in Mine Engineering, Mr. Key has over 30 years of related mining industry experience. Past companies include Teck Cominco from 1973-2004 where Mr. Key served as projects General Manager and oversaw $300 million plus in capital expansions at Red Dog.

It has been reported that in total, all eight open-pit operations produced 10.7 million tonnes of ore averaging 0.059 ounces per tonne Au. Gold recovered from the material placed on heaps accounted for approximately 500,000 ounces plus an additional estimate of 1.5 million ounces of silver. In July 2003, the Borealis property was joint-ventured by Golden Phoenix with BMC, (a wholly owned subsidiary of Gryphon Gold Corporation). In January 2005, BMC purchased 100 percent interest in the lease agreement, and Golden Phoenix surrendered its interest in the property.

History In 1978, the Borealis gold deposit was discovered by a geologist with Houston International Minerals. Rapid development followed with the discovery of ore-grade gold mineralization and production began in October of 1981 as an open-pit and heap leaching operation. In January 1990, with the depletion of the readily available oxide ore in Freedom Flats and other deposits in the district, active mining was terminated. Later that year, leaching operations were also suspended.

Resource Highlights include hole FF-229 with 15.1 g/t Au including 35g/t over 26 metres and hole CBO-028 with 7.9 g/t Au including 25.4 g/t over 12 metres. The total gold estimate breaks down as follows:

24 Planning for Profits | Report on Mining | Spring 2011

Value The 27.5-square-mile Borealis Property is located in western Nevada’s Walker Lane gold belt and contains 1.4 million ounces of measured and indicated gold resources and another 1.1 million ounces of inferred gold resources. There are at least five other highly prospective zones that are currently being explored that have the potential to host significant gold resources. In Idaho, Gryphon Gold also controls the Copper Basin copper silver prospect with 26 unpatented lode claims. Gryphon’s property and surrounding district has received very little modern exploration with the only recent work carried out by Phelps Dodge Exploration in 1997.

• 383,900 ounces of gold measured • 1,038,600 ounces of gold indicated • 1,104,500 ounces of gold inferred

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Figures are taken from Gryphon Gold Corporation’s NI 43-101 pre-feasibility study of the Borealis Gold Project filed on September 17, 2009 and Canadian NI 43-101 technical report filed on April 28, 2008. The inferred historical ounces are not CIM 43-101 compliant. Share Price The share price has fluctuated significantly since Gryphon Gold was established. It has ranged from a high of $2.30 in 2006 to a low of .05 cents at the end of 2008 with more recent trading in the .20 to .25 cent range. With the current gold price in the $1,300 dollar range U.S., the share price can be viewed as attractive and compelling in light of the gold in the ground share value calculated by taking the NI 43-101 compliant stated resource divided by the number of shares outstanding, (prior to the recent issuance).

Summary Recent gold and silver assays from the 2010 reverse circulation drilling program at Borealis confirmed data in the NI 43-101 pre-feasibility study of September 17, 2009. Completion of this critical stage keeps the project timeline intact and on schedule, subject to adequate financing. Once certain critical data pertaining to the Freedom Flats ReLeach is finalized and financing secured, a scaled down version of the start-up of mining operations will commence. Development of the Freedom Flats Heap is instrumental to the staged approach for development of the Borealis Heap Leach Project. For further information about the Company, please review the Company website at www.gryphongold.com. Disclaimer: NOT FOR DISSEMINATION IN THE UNITED STATES We advise U.S. investors that some of the terms used herein are defined in Canadian regulations and are not defined terms under the U.S. Securities and Exchange Commission (“SEC”) Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC.

Gryphon Gold Corporation 611 N Nevada Street Carson City, Nevada 89703 USA Tel: 1.775.883.1456 Fax: 1.604.608.3262 Email: info@grphongold.com www.gryphongold.com TSX.V: GGN Year Hi/Low: $0.275/$0.085 www.ReportOnMining.com

Spring 2011 | Planning for Profits | Report on Mining 25

Exploration completed to date has already delineated a mineralized zone with a strike length of 2.5 kilometres by up to 500 metres wide and drilling has extended the oxide associated gold mineralization to depths in excess of 450 metres. The Company is progressing quickly with metallurgical testing.

“Early indications suggest that the Cerro

tacama Pacific Gold Corporation is a newly listed, Canadian-based exploration and development company with a focus on the acquisition, exploration and development of gold projects in Chile. Atacama Pacific’s IPO financing was one of the largest completed on the Toronto Venture Exchange and the first mining sector IPO completed in nearly two years, creating some long overdue optimism in the junior exploration sector. The Company went public in November 2010 via a $28,875,000 CDN initial public offering (“IPO”) consisting of 10,500,000 shares priced at $2.75 per share. As a result of strong investor demand, an underwriting syndicate, led by Canaccord Genuity, exercised their over-allotment option selling a further 1,575,000 shares and increasing the total IPO proceeds to Atacama Pacific to $33.2 million. The Company has attracted some significant interest from major players in the industry with both Kinross and Gold Fields taking ownership stakes. Ownership is tight. Management holds 49% of the Company, with institutions and retail shareholders owning 30%, Gold Fields at 13% and Kinross at 8%. So, why the strong interest in a new Company? While the Company may be new, the management team, led by geologists Dr. Albrecht Schneider, Executive Chairman and Carl Hansen, President and CEO, have a long history of exploration successes in the Americas and the two have teamed up again to discover what is likely to become the next big gold discovery in Chile: the large Cerro Maricunga oxide gold deposit located in the prolific Maricunga Mineral Belt.

26 Planning for Profits | Report on Mining | Spring 2011

Maricunga project contains a major oxide-hosted gold deposit rather than sulphide-hosted as is more commonly found throughout the Maricunga Mineral Belt.” The Cerro Maricunga Oxide Gold Project, Chile With $33.2 million in working capital raised, the Company is aggressively exploring its 100%-owned Cerro Maricunga gold project located in the prolific Maricunga Mineral Belt in northern Chile. A 19,000 metre drill program is underway where initial drilling has already returned impressive intervals of oxide-hosted gold mineralization including 132 metres grading 1.31 grams per tonne gold (“g/t Au”).The Maricunga Mineral Belt is recognized worldwide as a major precious metals mining belt with over 80 million ounces discovered and/or mined since the first large tonnage, low grade mines were put into production in the 1980s.

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Early indications suggest that the Cerro Maricunga project contains a major oxide-hosted gold deposit rather than sulphide-hosted as is more commonly found throughout the Maricunga Mineral Belt. This makes the Cerro Maricunga property attractive as a development project as gold associated with oxides is usually much easier to recover than gold hosted in sulphides due to the reduced amount of grinding required to prepare the ore for heap leaching and typically higher gold recoveries. The reduced grinding and improved recovery rates substantially reduce the capital cost of mine construction and lead to lower operating costs over the life of a mine. Atacama’s Maricunga belt project is located 140 miles by road northeast of the city of Copiapó, a major mining centre in northern Chile. The Cerro Maricunga project consists of exploration concessions and mining concessions covering 135 square kilometres. The main gold zone, which lies at the top of Cerro Maricunga (“Mount Maricunga”) rising 500 metres from the adjacent valley bottom, is located approximately 20 kilometres south of Kinross’s La Copia gold-silver mine (measured and indicted resource 1.5 million ounces gold and 53.3 million ounces of silver) and 30 kilometres northwest of Kinross’s Lobo-Marte gold project (measured and indicated 6.5 million ounces gold).

Photos, left to right: Cerro Maricunga—Phoenix Zone looking north; Diamond Drill Rig at the Phoenix zone; Company founders Carl Hansen (President and CEO) and Dr. Albrecht Schneider (Executive Chairman) standing in front of the Phoenix Zone; Geologists inspecting core at Phoenix RC Rig Dec 2010.

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The Cerro Maricunga project was acquired through staking in 2007 as a grass roots exploration target. Over the following two exploration seasons, over 3,200 surface samples were analyzed, preliminary metallurgical work initiated, and geophysical surveys, ground magnetics, and induced polarization completed. The initial exploration activities outlined a large zone of gold mineralization over a strike length of 2,500 metres with widths of up to 500 metres. In the spring of 2010, Atacama Pacific, while still private, completed Phase I, an eight drill hole program (2,142 metres) confirming that the oxide-hosted gold mineralization extends to depths of over 450 metres below surface. All eight drill holes returned significant intervals of gold mineralization including 302 metres grading 0.79 g/t Au. Aggressive Drilling Program Underway Over the next 18 months, Atacama Pacific will be completing an aggressive 39,000 metre two-stage drill program at Cerro Maricunga. Presently, four drill rigs are operating on the property. Drill assay results continue to be positive with the gold zones remaining open to depth. The Company expects to complete the Phase II program in April 2011 with the onset of winter. The current Phase II drilling program will see holes drilled at 50 metre centres in the high priority areas along the 2.5 kilometre mineralized zone and at 100 metre spacing elsewhere. A further 20,000 metres is scheduled for the Phase III program commencing in October 2011 and extending through to April 2012.

Spring 2011 | Planning for Profits | Report on Mining 27

Upon completion of the 2011 Phase II drill program, Atacama Pacific will commence work on a 43-101 compliant resource estimate scheduled for release during the third quarter of this year. Once a resource estimate is in hand, combined with continuing metallurgical test results, work will commence on a Preliminary Economic Analysis (â&#x20AC;&#x153;PEAâ&#x20AC;?). The PEA will refine all of the exploration, mapping, geological and metallurgical data in an effort to determine the economic viability of the expected low grade, large tonnage gold project. Positive Metallurgical Results One of the keys to successfully bringing large tonnage, oxide gold deposits into production is good metallurgy and the first two phases of metallurgical testing at Cerro Maricunga have returned excellent results establishing that the mineralization is amenable to heap leaching. Gold recoveries vary between 75% and 89% at a coarse crush size of 19 mm and gold extraction rates are fast with column tests showing that the majority of the gold was extracted within the first seven days. The positive gold recoveries are a result of the highly oxidized nature of the rocks that host widespread gold mineralization. The host rocks are volcanic breccias which occur within the partially eroded Ojo de Maricunga strata volcano. Unlike that other gold deposits in the Maricunga Mineral Belt, a significant portion of the gold mineralization at Cerro Maricunga is associated with iron oxides, magnetite and to a lesser extent hematite, occurring as fine disseminations and within thin veinlets. In addition to the iron oxide association, gold is also associated with blacked banded quartz veins and veinlets which appear similar to quartz veins which host mineralization in other gold deposits in the Maricunga Mineral Belt. Only rare specks of pyrite are observed within the host breccias typically enclosed within quartz where it has been protected from oxidization. Reducing Risk from Start to Finish The driving force behind Atacama Pacific Gold Corporation is the management team of Dr. Albrecht Schneider and Carl Hansen. The two have worked together on a number of successful exploration and development projects over the past 15 years going back to TVX Gold where they were instrumental in a number of gold discoveries. After Kinross purchased TVX in 2003, Dr. Schneider and Mr. Hansen founded Andina Minerals Inc. discovering the 10 million ounce Volcan gold deposit in Chile. With Andina focused on engineering the Volcan project, the two geologists teamed up once more, and again with a focus on Chile and the Maricunga Mineral Belt. Considerable exploration and metallurgical work was funded privately with the focus on reducing risk to investors when the Company listed. Atacama Pacific focused on confirming that the Cerro Maricunga was an oxide rather than a sulphide-hosted deposit with that knowledge oxide deposits are more likely to be successfully developed. 28 Planning for Profits | Report on Mining | Spring 2011

Below top: Core - oxidized volcanic breccia. Below bottom: Black banded quartz veins in volcanic breccia.

Atacama Pacific Gold Corporation is well positioned for growth. The Cerro Maricunga gold project is located in an established mining belt where numerous major precious metal deposits have been and continue to be discovered and mined. Chile has a worldwide reputation as a country that is open to foreign investment and that encourages the exploration and development of mining operations. The country has a well-defined and comprehensive legal framework regarding the process of mine development. With gold continuing at near record levels, the time is right for the development of the Cerro Maricunga property. Atacama Pacific is well financed and the management team has the exploration and development experience and expertise to bring this project through to a successful conclusion. The Company follows an established conservative approach to exploration and this is one of the key reasons this team has been successful in reducing the risk for investors and increasing the potential rewards.

Atacama Pacific Corporation 330 Bay Street, Suite 1210 Toronto, ON Canada M5H 2SH Phone: 1.416.861.8267 info@atacamapacific.com www.atacamapacific.com TSX.V: ATM Year Hi/Low: $3.05/$2.65 www.ReportOnMining.com

Upside Drivers Outweigh Downside Risks For Commodities in 2011 TSX-Venture exchange capitalized on commodity surge in 2010 By Elvis Picardo, CFA

ommodities had their share of volatility in 2010, especially in the first half, but came roaring back in the second half, with the Reuters CRB index of 19 commodities surging a record 29% in this period. Gold and copper reached new highs in 2010, while silver rose 84% to its highest in 30 years and crude oil gained 15%. Soft commodities also participated in the broad rally, with cotton and coffee posting the highest and third-highest gains of the CRBâ&#x20AC;&#x2122;s components in 2010, up 92% and 77% respectively.

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Those stellar numbers were enough to ensure that commodities beat most major asset classes in terms of performance for the year. For all of 2010, the Reuters CRB index gained 17%, compared with total returns of 13% for global stocks (based on the MSCI All Country World Index) and 4.7% for global bonds.

Spring 2011 | Planning for Profits | Report on Mining 29

The TSX-Venture exchange was a huge beneficiary of the commodity surge in 2010. According to TMX Group statistics, total financings on the TSX-Venture exchange amounted to $9.9 billion last year, up 95% from 2009. IPO financings soared 268% to $332 million as the number of IPOs almost doubled to 142, while secondary financings surged 232% to $3.1 billion. In contrast, total financings on the TSX fell 26% to $44.1 billion on 2010, as a 48% decline in secondary financings offset a 124% increase in IPO financings.

Some analysts believe Chinese inflation may peak at 6% in the first half of this year, exceeding the nation’s inflation target of 4% for 2011, which itself is well above the 1.6% average annual inflation rate for the decade through 2009. As a result, market participants are bracing themselves for more measures such as a higher reserve ratio for banks or a rate increase to cool the red-hot economy. As we had pointed out in the November issue of this publication, over-reliance on Chinese demand remains a major risk for commodity markets. The IMF had noted in its “World Economic Outlook” report in October that although China’s metal demand has now stabilized at a high level, two developments are likely to restrain demand growth in the quarters ahead. These are a moderation of the growth pace as stimulus effects wane and efforts to slow credit growth affect investment, and draw down of inventories by end users.

China remains the wild card in 2011 Factors that combined to boost demand for commodities in 2010 included resurgent physical demand led by China, as well as investment demand fuelled by the turmoil in the euro. On the supply side, commodities such as copper and sugar had significant shortfalls, while adverse weather in a number of producing regions slashed the output of crops including Support from an overlooked quarter soybeans and corn. But with all the focus on China, support for global commodity Looking ahead, the demand picture seems to be more or markets may well come from an overlooked quarter — the U.S. less intact, with global growth for this year estimated at 4.2% Recent data continue to indicate an economy whose recovery is by the IMF in October. The wild card is China, which is forecast gathering momentum. Sales of previously owned U.S. homes rose by the IMF to grow at a 9.6% pace in 2011. The latest data show that the Chinese economy accelerated 12% in December to a 5.28-million annual rate, while an index of leading indicators rose. The U.S. economy also added 103,000 to a 9.8% growth pace in the fourth quarter of 2010, from jobs in December, up from 71,000 jobs added in the previous 9.6% in the third quarter. Consumer-price inflation eased to 4.6% in the fourth quarter from 5.1% in the third quarter. month; while the unemployment rate fell to 9.4% in December For the full year, the economy expanded by 10.3%, up from a from 9.8%, the drop was largely due to the contracting workforce. 9.2% growth pace in 2009 and the fastest expansion in three years. Consumer prices rose 3.3% for the year, exceeding the Figure 1: DXY vs. Reuters-CRB and London Metal Exchange index – 2001 to 2010 (Monthly) government’s 3% target. As has happened on a few occasions in recent months, at the time of writing, investors have been unnerved by the prospect of continuing measures by the Chinese government to rein in growth / inflation, given that recent steps have only had a limited effect. Since early 2010, China has raised the reserve requirement ratio for state-controlled banks seven times to its current level of 19%, and has also nudged up interest rates twice in recent months. However, these steps have not had a discernible effect on investment, with fixed-asset investment up 23.8% and property investment up 33.2% in 2010. Source: Bloomberg

30 Planning for Profits | Report on Mining | Spring 2011 www.ReportOnMining.com

Although chronic unemployment and a sluggish housing market continue to weigh on the U.S. economy, the situation seems to have stabilized on both fronts, with incremental improvement expected in 2011. I believe the U.S. economy has the potential to surprise to the upside this year, a factor that would be supportive for commodities.

On the energy front, 2011 may well be the year when crude oil gets into triple digits for the first time since 2008. But whether natural gas can recover from its drubbing of the last three years remains to be seen. Natural gas was the worst performer on the CRB index in 2010 with a 21% decline, ending the year with its lowest year-end settlement price since 2001. The commodity has been depressed by record inventories thanks to rising production from shale-gas formations, which rose 47% to 3.1 trillion cubic feet in 2009. Finally, the recent decline in gold prices has given rise to some concern that the precious metal’s 10-year advance may finally be over. Gold surged 30% last year, reaching a record U.S. $1,432.50 per ounce on December 7. Our view is that pullbacks are to be expected after gains of that magnitude. From an investment perspective, we again favour senior gold producers as opposed to bullion, based on their relatively attractive valuations and leverage to higher gold prices should the precious metal resume its ascent.

Currency Capers Another risk for commodities that we had identified in the November issue was that of a potential reversal in the U.S. dollar, based on the historical inverse correlation between the greenback and commodity prices (Figure 1). In my opinion, this may not pose as much of a risk now as it may have in the past. The freefall in the U.S. dollar since late-August – brought on by the Federal Reserve’s announcement of another round of quantitative easing – has eased off considerably, with the greenback holding its own against most major currencies. The euro may be the currency to watch in 2011, especially if concerns about sovereign debt in its constituent nations again resurface. A plunging euro Figure 3: Gold in C$ vs. TSX Global Gold Index – Jan. 2006 could again lead to a stampede out of commodities, as was the case to Jan. 2011 (Weekly) last spring, precipitated by concern about growth in the European Union and a spike in the U.S. dollar on safe-haven buying. Mixed outlook for individual commodities Overall, I think the outlook for individual commodities is mixed in 2011, with investors turning more selective after last year’s broad rally. While copper (Figure 2) and crude oil may benefit from global growth, some of the soft commodities may retrace part of their recent spectacular gains. Copper is widely expected to benefit from a widening demandsupply imbalance in 2011. Supply is forecast to be affected by delays in new mines, labour disputes, and deterioration in grades at some of the largest mines. Estimates about the potential shortfall in copper stocks this year range from 435,000 metric tonnes to 635,000 metric tonnes, more than doubling from a deficit of 234,000 tonnes in 2010, and the biggest shortfall since 2004.

Source: Bloomberg

The Bottom-Line Overall, I believe that upside drivers may outweigh downside risks for commodities in what could be another volatile year. My bottom-line advice is unchanged from that outlined in November, based on my view that while pockets of investment Figure 2: Copper 1st-month futures – Jan. 2000 to Jan. opportunity still exist, the risk-reward profile is not compelling 2011 (Weekly) enough to warrant being hugely overweight in commodities and commodity stocks at this time. Investors should consider trimming positions in commodity sub-sectors that have recorded outsized gains in recent months, and direct the proceeds to sectors that are lagging at present (intermediate to senior gold producers, for instance – Figure 3). While there’s little reason to abandon the commodity party yet, prudence dictates that party-goers keep an eye on the exits. (Elvis Picardo is Vice President – Research, and a strategist & analyst at Global Securities Corporation in Vancouver. The opinions expressed herein are his own). Source: Bloomberg

www.ReportOnMining.com

Spring 2011 | Planning for Profits | Report on Mining 31

he West and gold figure large in this year’s Prospectors and Developers Association of Canada’s annual awards for the mineral exploration industry. Honouring this year’s six awards winners will be delegates and association members attending the PDAC’s annual convention, held in Toronto in March. The awards gala is a glittering affair held at the Fairmont Royal York Hotel. It is a highlight of the well-known international convention, trade show, and investors exchange which attracts upwards of 20,000 people working in mineral exploration or connected with it from every corner of the world.

hawn Ryan is a Yukon-based prospector whose impressive gold discoveries have earned him this year’s Bill Dennis Award for a Canadian discovery or prospecting success. Despite his lack of formal training in geology, Ryan appears to have done what others before him have attempted but failed — found the source of the gold that ended up in the creeks of the Klondike and that sparked Canada’s first gold rush towards the end of the 19th century. Supported by his wife and business partner, Cathy Wood, Ryan spent close to 15 years systematically searching for the mother lode. In 2004, he identified the anomaly that led Underworld Resources to its White Gold deposit and a subsequent $138 million takeover by Kinross. Ryan’s efforts and eventual success have had a positive impact on exploration in the Yukon, with a six-fold increase in exploration spending from $30 million at the beginning of this decade to an estimated $183 million in 2010.

his year’s Viola R. MacMillan award winner is Agnico-Eagle Mines Limited, a company that in 2006 launched an ambitious mine-building program that has transformed the company, creating exceptional value for shareholders, employees and host communities. Today Agnico-Eagle, which has been in operation for 53 years, has six operating gold mines in Canada, Finland and Mexico. Its gold reserves have increased significantly, and the company ranks among the top ten gold producers in the world, based on market capitalization.

32 Planning for Profits | Report on Mining | Spring 2011 www.ReportOnMining.com

ne of the discoverers of gold in the Klondike was Skookum Jim Mason. An award commemorating him is presented by the PDAC for aboriginal achievement in the mineral industry. The winner of the 2011 Skookum Jim Award is Jerry Asp, who is being recognized for promoting mining’s benefits to aboriginal communities in British Columbia. A former Chief of the Tahltan Band Council, Asp established the Tahltan Nation Development Corporation to provide construction and maintenance services to northern BC mines. The company became the largest aboriginal-owned and operated heavy construction company in western Canada. Asp is credited with negotiating two mining impact and benefits agreements, the first for the Golden Bear mine that set the template for later Tahltan projects, and the second for the Eskay Creek mine. He is a founding member of the National Indian Businessman’s Association and the Canadian Aboriginal Minerals Association, of which he serves as vice president. He was a major contributor to the award-winning Mining Information Toolkit for Aboriginal Communities.

ancouver-based Patricia Dillon, a former president of the PDAC and of the Canadian Institute of Mining, Metallurgy and Petroleum, wins the 2011 distinguished service award. Dillon, who is a long-time employee of Teck, is being honoured for her many contributions to the PDAC and to the Canadian mineral industry, especially to its education and human resources initiatives. She heads PDAC Mining Matters, a highly regarded educational program that reveals the wonders of earth sciences to youngsters and the importance of mining to their lives. Dillon served as a PDAC director for 15 years and as the association’s president from 2006 to 2008. She is also a past president of the Canadian Institute of Mining, Metallurgy and Petroleum and is the only person to have been president of both associations. She is a director of the Mining Industry Human Resources Council, past-president of the Minerals and Economics Management Society, a director of the Ontario Mining Association, and past-chair of the Minerals and Metals Industry Sector Study Steering Committee, which oversaw research on human resource needs in Canada’s mineral industry. Dillon is the second woman to have led the association. The Viola R. MacMillan award is named for the first. The award recognizes leadership in management and financing for the exploration and development of mineral resources. www.ReportOnMining.com

Spring 2011 | Planning for Profits | Report on Mining 33

nother gold company, IAMGOLD Corporation, is the winner of this year’s Environmental & Social Responsibility Award. The company is recognized for its commitment to excellence in environmental stewardship, community engagement, and health and safety, particularly during exploration. IAMGOLD has operating mines and exploration projects in West Africa, South America and Québec. The company’s frameworks for health and safety management and sustainability are informed by international standards and good practices. These include the PDAC’s e3 Plus, a framework for responsible exploration. They are used to create performance criteria and measurable results for all of the company’s operations.

The company was the top extractive company and third overall in the 2010 Globe and Mail’s ranking of environmental and social and governance performance of Canada’s largest companies in the S&P/TSX 60 Index.

AngloAmerican

he PDAC’s Thayer Lindsley Award honours the memory of one of Canada’s greatest mine finders and is given for a recent significant mineral discovery anywhere in the world. An exploration team of Anglo American has been selected to receive this year’s award for its discovery of Los Sulfators copper deposit in Chile. This world-class discovery has an inferred resource of 1,200 Mt @ 1.46% copper and 0.02% molybdenum and a potential resource of 4,000-5,000 Mt @ 0.8-1.0% copper. The five team members receiving the award include Graham Brown, group head of geosciences and exploration; Vicente Irarrazaval, regional head of exploration; Juan Carlos Toro, regional copper geologist; Graeme Lyall, senior resource geologist; and William Robles, senior geologist.

t the time of writing, plans were being made to honour Andres Sougarret at the PDAC awards evening. Sougarret is the acknowledged brains behind the rescue of the 33 Chilean miners from the San Jose mine in October 2010.

PDAC 2011

. March 6-9, 2011 .

Toronto, Canada

www.pdac.ca

34 Planning for Profits | Report on Mining | Spring 2011 www.ReportOnMining.com

www.solidGOLDcorp.com TSX.V: SLD

PDAC MARCH 6 – 9, 2011 HOSPITALITY 2PM SUITE # 332 INTERCONTINENTAL TORONTO CENTRE 225 FRONT STREET WEST, TORONTO, ON

Toroparu: A Gold-Copper Deposit with World-Class Potential Toroparu Project Overview

Toroparu Deposit – Optimized Pit

• Located 200 km west of Georgetown, Republic of Guyana • Politically stable, English-speaking democracy • British Common Law, well established Mining Act • History of successful gold production (eg. Omai) • Site access: Airstrip & road • Land Package: 1,000 sq km (100%-controlled) • Historic placer gold area. Exploration drilling has outlined primary gold-copper mineralization below saprolite cover.

Toroparu Deposit – Sectional View

NI 43-101 Resource Estimate • • • •

Indicated Resource of 2.62 MM oz Au + 259 MM lb Cu (1) Inferred Resource of 3.41 MM oz Au, 213 MM lbs Cu (1) 2.8:1 strip ratio Open in all directions

NI 43-101 Mineral Resource Domain AuEq Cut-Off Grade Saprolite 0.41g/t Fresh Rock 0.42g/t Total Domain AuEq Cut-Off Grade Saprolite 0.41 g/t Fresh Rock 0.42 g/t Total

Tonnes 1,395,000 97,542,000 98,937,000

Au g/t 0.57 0.83 0.83

Tonnes 7,720,000 132,334,000 140,054,000

Au g/t 0.73 0.76 0.76

Indicated Cu % Au Eq. g/t 0.08 0.71 0.12 1.04 0.12 1.04 Inferred Cu % Au Eq. g/t 0.06 0.84 0.07 0.88 0.07 0.88

Au oz Cu lbs 25,500 2,455,000 2,603,000 257,500,000 2,628,500 259,955,000 Au oz Cu lbs 181,000 10,190,000 3,234,000 203,794,000 3,415,000 213,984,000

• Majority of pit-shell drill holes bottom in grade; significant expansion potential • Opportunity for grade optimization and near surface starter pit material for rapid payback

1 Per NI 43-101 Technical Report, P&E Mining Consultants, Sept. 15, 2010 – Au US$1009/oz and Cu US$2.65/lb (2 yr trailing avg; 95% Au recovery and 90% Cu flotation plant/leach recovery)

Exploration and Early Development Project Infrastructure in Place 2

3 4

6 1

2 3 4 5

7 8 9 10

2 3 4 5

6 6 7 7 8

5 6 7 8 9 10

• Toroparu area of historic placer mining • Conventional open pit saprolite mining by Sandspring subsidiary • Road/air accessible 1 100-man camp and former 3000 tpd 21 gravity mill 32 Airstrip 43 Toroparu Saprolite Pit 54 Tailings pond 65 76

8 www.sandspringresources.com 9 87

Investor Relations: info@sandspringresources.com Phone: 807.252.7800