ISLA CRISTALINA BELT

ZAPUCAY DISTRICT

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District Description: The Zapucay district is located 20 kilometres to the southeast of UME's San Gregorio gold mine, and is the second most important district to date in the Minas de Corrales Goldfield. Gold mineralization is hosted in two main deposits, Argentinita and Zapucay. Historical production from the Zapucay deposit was 35,700 ounces at an average grade of 2.1 g/t. In addition to these two deposits, exploration is planned at Lilo, Laureles, Lavadero and Tito Lopez. Exploration drilling has also been completed at Cerro Papagayo. No economic mineralization has been encountered.

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ARGENTINITA DEPOSIT Mineral Reserve and Resource Summary (as at June 1, 2007)
	Tonnes	Grade	Ounces
	('000)	(g/t)
Proven & Probable Reserves	272	1.9	17,000
Measured & Indicated Resources	1,701	1.52	83,000
Inferred Resources	502	1.0	17,000

Geology: The mineralization in the Zapucay District occurs within a folded segment of the San Gregorio structural zone in the Isla Cristalina Belt, associated with silicified mylonites and sub-horizontal quartz veins. This prospect is situated within a low angle shear structure, at or near the contact between granitic gneiss and underlying diorites. The host structure dips gently to the northeast, and strikes to the north-northwest. The principal alteration assemblage associated with the mineralization comprises chlorite-carbonate-sericite-silica-pyrite.

Exploration Results: Drilling at Argentinita has defined a total resource 1.7 million tonnes at 1.52 g/t for a total resource of 100,000 ounces. A summary of mineral reserves and resources is shown in the accompanying table. Encouraging near-surface intercepts have been recorded at Zapucay. Surface exploration in the district has defined a new target, Zaballa. Rock-chip sampling has returned a number of significant results. The most significant results from Zapucay and Zaballa are presented in the accompanying table.

Planned Activities: Additional drilling around the Zapucay deposit is expected to be completed to better define the resource. No significant mineralization has been encountered at Cerro Papagayo, and no additional drilling is planned at this prospect.

ZAPUCAY DISTRICT
Exploration Activities & Results Summary
(as of February 29, 2008)

CALENDAR YEAR

ACTIVITY

RESULTS

CURRENT RESULTS

2007/2008

Zapucay

Drilling 5,749m (56 DDH)

ZPRC007 from 6m - 5m @ 3.06 g/t
ZPRC010 from 9m - 7m @ 3.58 g/t
ZPRC010 from 19m - 6m @ 4.25 g/t
ZPRC012 from 15m - 1m @ 8.16 g/t
ZPRC016 from 61m - 1m @ 1.20 g/t
ZPRC017 from 50m - 3m @ 1.30 g/t
ZPRC017 from 54m - 1m @ 3.58 g/t
ZPRC017 from 58m - 1m @ 1.28 g/t
ZPRC017 from 61m - 1m @ 5.36 g/t
ZPRC020 from 13m - 3m @ 3.05 g/t
ZPRC024 from 2m - 2m @ 1.59 g/t
ZPRC030 from 24m - 1m @ 1.60 g/t
ZPRC037 from 1m - 2m @ 1.76 g/t
ZPRC038 from 13m - 1m @ 2.75 g/t
ZPRC040 from 65m - 1m @ 1.75 g/t
ZPRC040 from 72m - 1m @ 2.03 g/t
ZPRC040 from 74m - 1m @ 1.37 g/t
ZPRC041 from 31m - 1m @ 3.44 g/t
ZPRC042 from 38m - 1m @ 1.28 g/t
ZPRC042 from 41m - 2m @ 5.81 g/t
ZPRC042 from 70m - 13m @ 1.6 g/t
ZPRC043 from 73m - 1m @ 6.6 g/t
ZPRC046 from 67m - 4m @ 1.75 g/t
ZPRC047 from 24m - 2m @ 3.4 g/t
ZPRC047 from 47m - 1m @ 4.33 g/t
ZPRC047 from 64m - 1m @ 1.86 g/t
ZPRC049 from 11m - 6m @ 1.06 g/t
ZPRC051 from 12m - 3m @ 1.27 g/t

Argentinita

Drilling 2,105m (15 DDH)

Drilling 6,382m (53 DDH)

ARGDD020 from 29.9m - 1.1m @ 3.10 g/t
ARGDD021 from 74.2m - 1.0m @ 1.19 g/t
ARGDD021 from 75.5m - 2.1m @ 1.22 g/t
ARGDD023 from 54.2m - 2.41m @ 0.79 g/t
ARGDD024 from 45.0m - 2.6m @ 2.57 g/t
ARGDD024 from 51.1m - 1.0m @1.79 g/t
ARGDD026 from97.1m - 1.6m @1.79 g/t
ARGRC274 from 63.0m - 2.0m @ 0.58 g/t
ARGRC276 from 104.0m - 1.0m @1.59 g/t
ARGRC277 from 82.0m - 1.0m @ 0.42 g/t
ARGRC278 from 180m - 1.0m @ 3.29 g/t
ARGRC280 from 57.0m - 1.0m @ 2.56 g/t

Zaballa

Sampling

Rock-chips

Sample ID Au g/t
31541 5.58
31543 2.44
31547 6.22
31550 3.95
31551 1.00
31552 9.26
31553 1.24
31555 4.71
31567 5.32
31568 1.06
31569 1.65
31570 5.79
31573 27.47

Cerro Papagayo

Drilling 634m (5 DDH)

Drilling 4,834m (31 RC)

Trenching (17)

No significant results were reported.

No significant results were reported.

CPRTR021 from 6m - 12.7m @ 3.16g/t
CPRTR022 from 18m - 11m @ 2.51g/t
CPRTR022 from 35m - 3m @ 1.57g/t
CPRTR024 from 23m - 5m @ 1.00g/t

Drill hole intercepts, not true thickness.