Saskatoon Saskatoon April 15, 2008April 15, 2008

Exploring MexicoExploring Mexico

North America’s New Hotspot For North America’s New Hotspot For

MiningMining

MEXICO The Best Investment Opportunity

North America Comparison area Km2

Canada: 9,984,670

Saskatchewan: 650,036

Mexico: 1,964,375

Sierra Madre Occidental: 289,000

Corridor Mexico Canada

Overview & Forecast in Overview & Forecast in Mexican Mining 2008Mexican Mining 2008

Index

Summary 20071

Forecast 20083

2 Mining National Program 2007 - 2012

1 Summary 2007

Investment

Investment increased at 2,156 mdd.

Employment increased 10 %.

From 481, 91 new projects began in 2007.

214 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 2007.

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 2006.

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 138.5 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 2006

30 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 2007 -2012

Institutional Structure

- Information- Support

- Finance- Technical Support- Training- Exploration Program

- Geological Information

- Geological Assistance

- LegalCertainly

(Mining PromotionDivision)

(GeologicalSurvey

of México)

(MiningDivision)

(MiningDevelopmentTrust)

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

METALS

GIANTS DEPOSITS SUPER-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)

COPPERMilpillas y La Caridad (Sonora)El Arco (Baja California) Cananea

(Sonora)

ZINCCharcas (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 $ 14,693 mddmdd

Mining InvestmentMining Investment(millions usd)

Foreign

National

2,148

3,166 3,017

2,0811,702

1,484

Source: DGPM

3,500

3,000

2,500

2,000

1,500

1,000

500

2007 2008 2009 2010 2011 2012

Canadian projects in Mexico

GoldcorpGoldcorp Inc. Inc.GoldGoldLos Filos, Los Filos, GuerreroGuerreroUSD 307.3 USD 307.3 millionsmillions

Aur Resources Ltd.Aur Resources Ltd.CopperCopperLa Verde, MichoacánLa Verde, MichoacánUSD 260 USD 260 millionsmillions

Kimber Resources Kimber Resources Inc.Inc.Gold, silverGold, silverMonterde, ChihuahuaMonterde, ChihuahuaUSD 180 millionsUSD 180 millions

Baja Mining Corp.Baja Mining Corp.Copper, zinc, cobaltCopper, zinc, cobaltEl Boleo Baja California El Boleo Baja California Sur Sur USD 64.9 millionsUSD 64.9 millions

Zaruma ResourcesZaruma Resources Inc. Inc.Gold, silver, copperGold, silver, copperSan Antonio, Sonora San Antonio, Sonora USD 266.8 millionsUSD 266.8 millions

Pan American Silver Pan American Silver Corp.Corp.Gold , silverGold , silverÁlamo Dorado, Sonora Álamo Dorado, Sonora USD 130.8 USD 130.8 millionsmillions

War Eagle Mining War Eagle Mining Company Company Germanium, Galion, Germanium, Galion, lead, zinclead, zincTres Marías, ChihuaTres Marías, ChihuaUSD 22 millionsUSD 22 millions

Frontera Frontera CopperCopper Corp. Corp.CobaltCobaltPiedras Verdes Sonora Piedras Verdes Sonora USD 242.9 millionsUSD 242.9 millions

Scorpio Mining Corp.Scorpio Mining Corp.Gold, silver, copper, Gold, silver, copper, lead, zinclead, zincMina Candelaria, SinaloaMina Candelaria, SinaloaUSD 22.5 millionsUSD 22.5 millions

Palmarejo Silver and Palmarejo Silver and Gold Corp.Gold Corp.Gold, silverGold, silverPalmarejo, ChihuahuaPalmarejo, ChihuahuaUSD 124.6 millionsUSD 124.6 millions

Agnico-Eagle Mines Ltd.Agnico-Eagle Mines Ltd.Gold, silverGold, silverPinos Altos, ChihuahuaPinos Altos, Chihuahua USD 200 millionsUSD 200 millions

Teck-ComincoTeck-Cominco..Gold, silver, zinc, copperGold, silver, zinc, copperSan Nicolás, ZacatecasSan Nicolás, ZacatecasUSD 103.6 millionsUSD 103.6 millions

GoldcorpGoldcorp Inc. Inc.Germanium, Galion, lead, Germanium, Galion, lead, zinczincPeñasquito, Zacatecas Peñasquito, Zacatecas USD 187.5 millionsUSD 187.5 millions

Silver Eagle Mines.Silver Eagle Mines.Gold, silver, lead, zincGold, silver, lead, zincMiguel Auza , ZacatecasMiguel Auza , ZacatecasUSD 18 millionsUSD 18 millions

Farallon Resources Ltd.Farallon Resources Ltd.Gold, silver, lead, zincGold, silver, lead, zincCampo Morado, Gro.Campo Morado, Gro.USD 58 millionsUSD 58 millions

Minefinders Minefinders Corporation Ltd.Corporation Ltd.Gold, silverGold, silverDolores, ChihuahuaDolores, ChihuahuaUSD 450 millionsUSD 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 2007.

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 2007.

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…Muchas gracias…

Saskatoon Saskatoon April 15, 2008April 15, 2008

Exploring MexicoExploring Mexico

North America’s New Hotspot For North America’s New Hotspot For

MiningMining