Saskatoon April 15, 2008 Exploring Mexico North America’s New Hotspot For Mining MEXICO The Best Investment Opportunity

North AmericaComparison area Km 2 Canada: 9,984,670 Saskatchewan: 650,036 Mexico: 1,964,375 Sierra Madre Occidental: 289,000

Corridor Mexico Canada

Overview & Forecast in Mexican Mining 2008

Index Summary Forecast Mining National Program

1 Summary 2007

Investment Investment increased at 2,156 mdd. Employment increased 10 %. From 481, 91 new projects began in foreign companies have invested and worked in México. “Peñasquito” and “El Boleo” mining projects, in development, represent investment for US 2,050 million with 3,600 direct employments. A stronger support through the opening of the Mining Chapter at the México-Canada Chamber of Commerce (CAMCHAM) and the Canadian Embassy in México.

Of 24,900 total Concessions 10% were approved in A modernization of the information technology systems has been implemented was put in place to keep ownership records digitally. Concessions (“Mining Concessions/Claims”)

Around US 500 mdd were granted to the mining sector and it’s productive chain, which represents and increased of 25 % in comparison with Re-start of 2 mining districts trough exploration programs of 300 thousand tons of mineral for small companies. The long term credit increased in 55 % for the capitalization of the sector, reaching US 73.7 mdd. The program of guarantees was launched to encourage the participation of not bank financial institutions. The Suppliers Development Program channeled US mdd. Financial for General Mining Cordination GMC

The cartographic geological coverage has reached: mining of 48,106 km ² linear geophysical development of 220,506 km, 10 % higher than regions were defined: 5 for Au and Ag; 5 for Au, Ag and Cu; 16 for Au, Ag, Cu, Zn and Pb; 1 for W and 3 for U. 10 mining projects went through a bidding process and awarded to diverse companies. Technical Consultancy was given to 65 mining projects. Analysis of 6,039 samples of external requests. Mexican Geological Survey

2 National Mining Program

Institutional Structure - Information - Support - Finance - Technical Support - Training - Exploration Program - Geological Information - Geological Assistance - Legal Certainly (Mining Promotion Division) (Geological Survey of México) (Mining Division) (Mining Development Trust) Secretariat of Economy General Mining Coordination

23 world class giants mineral deposits, especially of silver, copper and gold. 4 world class super giants deposits of silver and copper. Reserves METALSGIANTS DEPOSITSSUPER-GIANTS GOLD Cananea (sonora) El Arco (Baja California) Guanajuato (Guanajuato) San Dimas (Durango) Pachuca-Real del Monte (Hidalgo) La Herradura (Sonora) SILVER Cananea (Sonora) La Colorada, Sombrerete, San Nicolás y Fresnillo (Zac) Charcas (SLP) Naica, Santa Eulalia y Dolores (Chihuahua) Guancevi (Durango) Campo Morado (Guerrero) San Dimas (Durango) Guanajuato (Gto) Pachuca-Real del Monte (Hgo) COPPER Milpillas y La Caridad (Sonora) El Arco (Baja California) Cananea (Sonora) ZINC Charcas (SLP) Santa Eulalia (Chihuahua) San Nicolás (Zacatecas) LEAD Naica (Chihuahua) Source: SGM

The Government of the President Calderon will promote investments for at least US 14,693 millions of dollars. Investment sexennial $ 14,693 mdd Mining Investment (millions usd) Foreign National 2,148 3,166 3,017 2,081 1,702 1,484 Source: DGPM 3,500 3,000 2,500 2,000 1,500 1,

Canadian projects in Mexico Goldcorp Inc. Gold Los Filos, Guerrero USD millions Aur Resources Ltd. Copper La Verde, Michoacán USD 260 millions Kimber Resources Inc. Gold, silver Monterde, Chihuahua USD 180 millions Baja Mining Corp. Copper, zinc, cobalt El Boleo Baja California Sur USD 64.9 millions Zaruma Resources Inc. Gold, silver, copper San Antonio, Sonora USD millions Pan American Silver Corp. Gold, silver Álamo Dorado, Sonora USD millions War Eagle Mining Company Germanium, Galion, lead, zinc Tres Marías, Chihua USD 22 millions Frontera Copper Corp. Cobalt Piedras Verdes Sonora USD millions Scorpio Mining Corp. Gold, silver, copper, lead, zinc Mina Candelaria, Sinaloa USD 22.5 millions Palmarejo Silver and Gold Corp. Gold, silver Palmarejo, Chihuahua USD millions Agnico-Eagle Mines Ltd. Gold, silver Pinos Altos, Chihuahua USD 200 millions USD 200 millions Teck-Cominco. Gold, silver, zinc, copper San Nicolás, Zacatecas USD millions Goldcorp Inc. Germanium, Galion, lead, zinc Peñasquito, Zacatecas USD millions Silver Eagle Mines. Gold, silver, lead, zinc Miguel Auza, Zacatecas USD 18 millions Farallon Resources Ltd. Gold, silver, lead, zinc Campo Morado, Gro. USD 58 millions Minefinders Corporation Ltd. Gold, silver Dolores, Chihuahua USD 450 millions

Mining and Explotation Activity North of Mexico

Investment Promoting Division Promoting Competitiveness in the area Promoting investment in the mining sector both: local and foreign Development of a portfolio of feasible projects for the promotion investment Relationship with State Governments Create an Information and Monitoring Strategic System

Mexican Geological Survey Inventories of mineral resources Exploration Program to support the small-scale mining. Reserves certification Mining-geological geochemestry and geophysics mapping Geological-evaluative analysis Modernization of geolological information service

Financial for General Mining Cordination Strengthen the resurgence of mining districts Increase financing support for GMC. Creating a suppliers development program Providing training and technical assistance for GMC.

3 Focus 2008

To increase investment to US 3,166 million, 32 % more than in To keep the 1st. place in Latin America and 4th in the world as destination of investment in exploration. To add 12 new projects of great impact. To generate an assistance manual to help the negotiation process between companies and communities. To attract investment based on 10 studies prepared by the GMC. Investment

To reinforce and focus the generation of geologic & economical information for the attraction of investment. To re-focus the activities of geologic, mining and metallurgical investigation to identify, to estimate and to inventory the mineral deposits of the country and to integrate a portfolio of 9 allocations. To support the Program of small mining exploration in order to resurgence of mining Districts. To generate a specializing group to certify mining reserves. To promote 10 studies of regions that could contain mineral viable deposits. Mexican Geological Survey

To finance US 550 million, to the mining sector and his productive chain, 10 % more than To assist 6,950 companies in training, technical assistance and/or financing. To resurgence of 4 mining districts. To provide long term credits increasing 49 % for the capitalization of the sector and reaching US 110 millions. To increase in 10% the participation of not bank institutions through the Program Guarantees. To provide financial resources of US 260 millions trough the Suppliers Development Program. Financial for GMC

Muchas gracias… Saskatoon April 15, 2008 Exploring Mexico North America’s New Hotspot For Mining