PEñASQUITO

The Peñasquito property, located in the mining state of Zacatecas, Mexico, possesses flat topography and excellent proximity to roads, power, rail, skilled labor and smelters.  It is a 100% owned development project composed of two open pits - Peñasco and Chile Colorado containing gold, silver, lead and zinc.  Peñasquito will be Mexico's largest open pit mine once built.

At December 31, 2008, proven and probable gold reserves totalled 17.4 million ounces.  Silver reserves totalled 1,045.7 million ounces while lead and zinc rose to 7.07 million tonnes and 15.36 million tonnes respectively.  Measured and indicated gold resources, inclusive of proven and probable reserves, increased 39% to 17.8 million ounces. Measured and indicated silver resources increased 55% to 1.3 billion ounces.

Mechanical completion at Peñasquito was achieved as of mid-July, 2009.  Construction of the first sulphide process line (Line 1) is complete and commissioning work is advancing on schedule.  The primary crusher is complete and has filled the coarse ore stockpile with crushed ore in preperation for initial milling.  The Line 1 feeders and conveying systems are complete.  Construction of the Line 1 SAG mill and two ball mills is complete and commissioning is under way.  The Line 1 lead and zinc flotation circuits are essentially complete.

Annual production over the life of mine (estimated 22 years) is expected to ramp up to approximately 500,000 ounces of gold, 30 million ounces of silver and over 400 million pounds of zinc.