Monthly (all in) fix and variable costs to sustain the entire Cobra Oro operation in Honduras for the last three weeks of June were approximately CDN $60,000.

The Company remains very focused and dedicated to expanding its production capacity by buying additional equipment which it expects to purchase shortly. The plant was built with the objective to increase production to 120 tonnes per day as stated in a prior News Release. The Company will work assiduously towards achieving that goal by progressively ramping up capacity for the remainder of the year. Current throughput is still running at 30 tonnes per day although Cobra Oro has improved overall gold production for the last ten days by processing higher grade material. The Company will make a public announcement to that effect once it has accumulated and validated additional data on current samples.

Gilles Laverdiere, P.Geo., a qualified person under NI 43-101, has approved the technical content presented herein.

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