Resource

The PEA* had established an economic cut-off of 0.2 g/t gold based on assumptions of operating costs for a potential open pit operation. The following table presents the updated resource at a cut-off grade of 0.2 g/t gold.

Spanish Mountain updated resources (at a 0.20 g/t gold cut-off) from July 24, 2012 Resource Update**

Classification	Tonnes	Gold grade (g/t)	Silver grade (g/t)	Gold (ounces)	Silver (ounces)
Measured	29,360,000	0.60	0.67	560,000	630,000
Indicated	186,870,000	0.44	0.69	2,620,000	4,150,000
Measured plus Indicated	216,220,000	0.46	0.68	3,180,000	4,780,000
Inferred	316,740,000	0.36	0.65	3,650,000	6,620,000