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Regionally, Nuevo Milenio is situated within an early Miocene volcanic caldera field of the Sierra Madre Occidental Volcanics, which is traversed by the Tepic -- Zacoalco rift zone, an en echelon extensional structural zone forming the boundary zone with the Jalisco block. The Tepic area is overlain by the young volcanics of the Trans Mexican Volcanic Belt. The Nuevo Milenio Project is a low sulphidation, epithermal precious metal prospect containing gold-silver mineralization in quartz veins and in quartz stockwork zones within an area of Miocene volcanics in a collapsed caldera structure.

EXPLORATION HISTORY

Nuevo Milenio has been explored by the Company beginning in 2000. There are four major areas of gold-silver mineralization; Veta Tomas, Dos Hornos, Once Bocas and Chacuaco-Cafetal. They have been identified within a small portion of the Nuevo Milenio that has widespread exploration potential for similar mineral occurrences. In January 2008, the Company filed a National Instrument 43-101 Technical Report outlining a silver equivalent Inferred Mineral Resource of 71,000,000 ounces (50:1 ratio) contained within 17.9 million tonnes. A review of the exploration data was conducted with the objective of defining the high grade underground zones within the Veta Tomas, Dos Hornos 1, Dos Hornos 2 and Once Bocas areas. The outcome of the data review was summarized in a National Instrument 43-101 Technical Report filed in December 2008. The technical Report outlined a silver equivalent Inferred Mineral Resource of 54,600,000 ounces (50:1 ratio) contained within 5.07 million tonnes.

The precious metal mineralization discovered at Nuevo Milenio to date occurs in north-westerly aligned structural zones of silica alteration in the central part of two nested caldera structures. The detailed investigated mineralized zone has a strike length of about 5 kms and a width of 3 kms (1,500 Ha). Within this mineralized zone the core zone of mineralization is 3 kms x 2 kms (600 Ha) which hosts 3 mineralized zones, spaced 500 m apart. Each zone consists of a 150 metre wide alteration zone with quartz stock work cut by parallel quartz veins.

Veta Tomas -- Dos Hornos 1 and Dos Hornos 2 zones were defined by diamond drilling (33 holes) for a strike length of 1,300 m intersecting 3 to 5 well mineralized quartz veins (2 to 4 m wide) cutting a 20 to 30 m wide quartz stockwork zone showing good silver-gold mineralization.

Once Bocas was diamond drilled (8 holes) along a 350 metre segment and in combination with surface and underground sampling delineated a 100 metre wide zone of quartz stockwork cut by five (2 to 4 metre wide) almost parallel quartz veins suggesting open pit potential. The Once Bocas zone was traced by surface work for a total strike length of 1,600 metres. Chacuaco -- Cafetal Mineral Resource target was explored for a total strike length of about 2,100 metres. The work program concentrated on the northern 600 metres of Cerro Chacuaco. This is an area of silicification, quartz stockwork about 200 metres wide, which is cut by four (2 to 20 metres wide), near parallel quartz veins assaying silver-gold. This is a potential open pit area and is amenable to underground mining of the narrower high grade viens.

Low Hills is 1.5 km north of this core mineralized area, showing silica capping, adjoined by areas of quartz veining and quartz stockwork zones which have had little or no exploration work performed except regional geological mapping and rock chip geochemistry. This is a prime area for potential disseminated silver - gold mineralization hosted by an intense argillic- sericite -- feldspar alteration zone in rhyolitic, lithic tuffs.

1. Vein 1 has continuity along strike and grade.
2. The structural setting - faulting and displacement - complicated the interpretation but offsets were small and veins could be followed across faults.
3. Prospecting established continuity of the structure to the north for an additional 400 m with areas of quartz stock work and veins up to 4 m wide disappearing under the basalt.
4. The structure was traced south past Mina Santa Gertrudis for an additional 500 m giving a total strike length of about 3 km.
5. At Dos Hornos North, an additional 3 vein structures, showing gold - silver values, were identified.
6. The north and south segment of the structure requires additional exploration to establish a mineral resource.

1. Diamond drill holes DDH 03 - 02, DDH 09 - 03, DDH 06 - 03 and DDH 12 -03 and assays from surface trenches, adits, shafts and old Spanish stopes located the presence of a high-grade ore shoot within a breccia zone which was mined along 2 veins. The stopes are 40 metres long, 4 to 6 metres wide and over a vertical distance of about 50 metres. The lower workings are filled with water. A quartz stock-work zone up to 100 metres wide is indicated on surface and within DDH 12 - 03.
2. Old Spanish workings follow two of the veins outcropping. These were intersected by DDH 03 - 02 and DDH 09 - 03 at depth.
3. The stopes are 30 metres long and shafts up to 50 metres deep following the vein structures where they stop against a fault zone which explains the discontinuity countered in DDH 09 - 03. The apparent displacement is in the order of 15 metres to 25 metres.
4. The section south of the creek was drilled by DDH 06 - 03, DDH 12 - 03, DDH 04 -02 and DDH 08 - 03 which is a re-drilling hole DDH 07 - 03 and was lost.
5. These drill holes define a zone of quartz veining and stock work about 200 metres long.
6. About 75 metres south of DDH 12 the South extension of the high-grade vein structure was found to have been displaced about 25 metres to the South West. The quartz zone is at least 10 metres wide.
7. The estimated strike length of the detailed work is 300 metres. The Once Bocas Zone has a known strike length of 1.3 kms.

Metallurgical Tests – Summary of Samples

Assays Employed to Establish Head Grade for Metallurgical Tests

Cyanide Bottle Roll Test – 72 hours Leach Cycle

Average Results for Cyanide Bottle roll test    Au:  94%   Ag:  78%

Scoping Flotation Test – 80 %~- 74 micron, 1 cleaning circuit

Average Extraction by floatation:     Au:  66%,      Ag:  81 %

Cyanide Bottle Roll Test  of Flotation Tailings – 96 Hour Retention

Average Recovery all Samples of Flotation Tails:  Au:  88%, Ag:  56%

Flotation Recovery plus Cyanidation of Tailings

Average recovery Flotation plus Cyanidation of Tailings:  Au:  94 %,   Ag:  90 %

Thiosufate Leach Test Leach duration 4 hours

Average Result for Thiosulfate Leach:    Au:  21%,   Ag:  76%

CAUTIONARY NOTE TO U.S. INVESTORS

Cautionary Note to U.S. Investors concerning estimates of Measured and Indicated Resources.
This website may use the terms "measured resources" and "indicated resources." We advise U.S. investors that while such terms are recognized and permitted under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves.

Cautionary Note to U.S. Investors concerning estimates of Inferred Resources.
This website may use the terms "inferred resources." We advise U.S. investors that while such term is recognized and permitted under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists, or is economically or legally mineable.

S.E.C. Industry Guide	National Instrument 43-101
Reserve: That part of a mineral deposit which could be economically and legally extracted or produced at the time of the reserve determination. The United states Securities and Exchange Commission requires a final or full Feasibility Study to be completed in order to support either Proven or Probable Reserves and does not recognize other classifications of mineralized deposits. Note that for industrial mineral properties, in addition to the Feasibility Study, "sales" contracts or actual sales may be required in order to prove the project's commerciality and reserve status.	Mineral Reserve: The economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.
Proven Reserves: Reserves for which a quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; grade and/or quality are computed from the results of detailed sampling and measurement are spaced so closely and the geologic character is so well defined that size, shape, depth and mineral content of reserves are well established.	Proven Mineral Reserve: The economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility study. This study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.
Probable Reserves: For which quantity and grade and/or quality are computed from information similar to that used for proven reserves, but the sites for inspection, sampling and measurement are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.	Probable Mineral Reserve: The economically mineable part of an indicated, and in some circumstances, a Measured Mineral Resource, demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

Using definition Standards for Inferred Mineral Resources as published and adopted by the CIM Council on December 11, 2005: "An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits workings and drill holes."

Noted uncertainties inherent in the definition are clarified by the CIM definition standard "Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the meaningful application of technical and economic parameters or to enable an evaluation of economic viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming the basis of feasibility or other economic studies."

We advise U.S. investors that while these terms are recognized and permitted under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. "Inferred mineral resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. U.S. investors are cautioned not to assume that any part or all of an inferred resource exists, or is economically or legally mineable.