At the Caballo Blanco project, a second-phase drill program commenced in late November 2008. A 24- hole, five-thousand-metre diamond drill program is planned and will be focused on the Cerro la Paila target in the Northern Zone. This program will be completed using two larger rigs capable of drilling deeper holes so that Cerro la Paila can be tested on 50-metre-spaced sections to a depth of up to 300 metres. In addition to the work at Cerro la Paila, reconnaissance drilling will be carried out to test two other Northern Zone targets: Cerro Bandera and Cerro la Cruz. The program will be monitored closely to ensure drilling is justified in the light of on-going assay results.

Due to the current economic conditions, no further exploration work is planned at the GJ/Kinaskan project in 2009 but the Company will be undertaking an informal economic study of the project. The Company will continue to monitor the progress on the Highway 37 power line, which is undergoing an environmental assessment process. This power line would have a very positive impact on the project's economics.

At the Zymo project, the data from the 2008 summer program will be compiled over the winter and a follow-up program will be planned for the summer of 2009.

The mineral industry has been adversely affected by the recent uncertain economic conditions. In the long term, demand for metals from China, India, Eastern Europe and Brazil is expected to remain strong. However, in the short term, the ability of the Company to raise funds through the sale of equity has been compromised. The Company has sufficient funds to carry out planned exploration programs and cover general and administrative costs through to early 2010. In addition, the Company is reducing expenditures on several properties to meet the minimum expenditure obligations and keep the properties in good standing.

At the Caballo Blanco project, a second-phase drill program will commence in mid-November 2008. A two-phased 48 holes, ten-thousand-metre diamond drill program is planned and will be focused on the Cerro la Paila target in the Northern Zone. The first phase will consists of 24 holes totaling 5,000 metres. This program will be completed using two larger rigs that will be capable of drilling deeper holes so that Cerro la Paila can be tested on 50-metre centres to a depth of up to 300 metres. This drill spacing should be sufficient to allow for a preliminary resource calculation at Cerro la Paila. In addition to the work at Cerro la Paila, reconnaissance drilling will be carried out to test other Northern Zone targets as well as follow up on the Central Grid Zone.

At the GJ/Kinaskan project, upcoming plans include a Preliminary Economic Assessment. This study will focus on initial open-pit mining of the high-grade, near-surface eastern portion of the Donnelly Zone. The higher-grade material in this area averages in excess of 0.4% copper and 0.4 g/t gold.

At the Zymo project, the data from the 2008 summer program will be compiled over the winter and a follow-up program will be planned for the summer of 2009.

The Company is continuing to investigate additional resource properties for possible acquisition.

The mineral industry has been adversely affected by the recent uncertain economic conditions. In the long term, demand for metals from China, India, Eastern Europe and Brazil is expected to remain strong. However, in the short term, the ability of the Company to raise funds through the sale of equity has been compromised. The Company has sufficient funds to carry out planned exploration programs and cover general and administrative costs through to early 2010.

At the Caballo Blanco project, drilling will continue to complete the 2,500-metre planned drill program on the Central Grid gold-rich porphyry copper target. A two to three month drilling break is planned during the rainy season starting in mid-August 2008 to compile data, plan additional work and obtain further permits for access. Drilling will commence again in early November 2008 on both Cerro la Paila and other targets in the Northern Zone and on the Central Grid.

At the GJ/Kinaskan project, an updated resource estimate will be completed in August, 2008. An economic evaluation of the project will then be undertaken.

At the Zymo project, the summer program will include extensive geochemical sampling, geological mapping, IP geophysical surveying and diamond drilling.

The Company is continuing to investigate additional resource properties for possible acquisition.

Since the Company does not expect to generate any revenue in the near future, funding requirements are expected to be satisfied through the sale of equity, debt securities or investment to meet ongoing needs.

The mineral industry has remained very strong throughout 2007 and 2008 driven by strong demand from China, India, Eastern Europe and Brazil. Overall, metal prices are expected to be at or above historic averages for the next several years, such that the Company's exploration and development activities should continue to receive strong investor support and wide industry recognition in the year ahead.

At the Caballo Blanco project, drilling will continue to complete the 7,000-metre planned drill program on the Cerro la Paila high-sulphidation gold target. On the Central Grid gold-rich porphyry copper target, a 3,000-metre program is planned to follow up on encouraging results obtained by a previous operator. A two to three month drilling break is planned during the rainy season which starts in August to compile data, plan additional work and obtain further permits for access.

At the GJ/Kinaskan project, an updated resource estimate will be completed in June, 2008. An economic evaluation of the project will also be undertaken.

At the Zymo project, the summer program will include extensive geochemical sampling, geological mapping, IP geophysical surveying and diamond drilling.

The Company is continuing to investigate additional resource properties for possible acquisition.

Since the Company does not expect to generate any revenue in the near future, funding requirements are expected to be satisfied through the sale of equity, debt securities or investment to meet ongoing needs.

The mineral industry has remained very strong throughout 2007 driven by strong demand from China, India, Eastern Europe and Brazil. Overall, metal prices are expected to be at or above historic averages for the next several years, such that the Company's exploration and development activities should continue to receive strong investor support and wide industry recognition in the year ahead.

At Caballo Blanco, drilling recommenced in mid January 2008. A second rig will be added to the project in early February. In addition to the drilling, ongoing work will include soil sampling, geological mapping, geophysical surveying, road construction and permitting. The initial drill program will consist of 5,000 metres and will be focused on Cerro la Cruz in the Northern Zone where encouraging drill intercepts have been intersected in the past.

At GJ/ Kinaskan, the 2007 drilling program was completed in late September, 2007. The results of the first 52 holes have been released. The Company is awaiting results from an additional 28 holes and these results will be released as they become available. An updated resource estimate will be completed in 2008.
The Company is continuing to investigate additional resource properties for possible acquisition.
Since the Company does not expect to generate any revenue in the near future, funding requirements are expected to be satisfied through the sale of equity to meet on-going needs.