CERRO BLANCO

The Cerro Blanco property is located in southwestern Guatemala and is considered to be a classic hot springs gold deposit with typical bonanza type gold mineralization. The project focus has changed to a potential development as an underground deposit with possible operating synergies with the Marlin Mine.

As of December 31, 2008, the deposit contains 1.3 million ounces of indicated gold resources at an average grade of 15.64 grams per tonne and 0.7 million ounces of inferred gold resources at an average grade of 15.31 grams per tonne.

Construction of two declines to access the ore body began during the second quarter of 2008, after experiencing delays and slow progress due to delays in the delivery of mining equipment purchased by the mining contractor. Underground advance rates indicate that the ore body should be reached by the second quarter of 2009, when samples will be obtained for metallurgical testing to assist with design optimization of the process plant. Definition drilling from underground is also planned for 2009. The two declines will serve as permanent access ramps during the operation of the underground mine. A temporary maintenance shop and man camp was established by the mining contractor, and a permanent office building and other ancillary installations were constructed in 2008.

Geophysical studies to determine the potential for a geothermal power generation plant were conducted in 2008 with positive results and the decision to conduct a deep drilling exploration program was made. Exploration drilling of the geothermal resource commenced in the fourth quarter of 2008 and the first well reached a depth of over 1,000 meters by year end. Additional exploration wells are planned for 2009, along with a full feasibility study to be completed after the exploration drilling program is finalized.