NON-GOLD

RIVERA DIAMOND PROJECT

Project Description: The Rivera diamond project comprises an area of 55,525 hectares. It is located on the Rio de la Plata craton in the departments of Rivera and Tacuarembo in northern Uruguay, approximately 500 kilometres north of Montevideo. The reported recovery of alluvial micro- and macro-diamonds historically, and in the 2007 exploration program, illustrates the potential for the discovery of kimberlites in this region.

Geology: The Rio de la Plata Craton which is considered to be of Palaeo-proterozoic age in northern Uruguay, hosts kimberlites and related rocks in southern Brazil and Paraguay. The Rivera project area which consists of Upper Palaeozoic and Mesozoic sediments, and which borders the Cretaceous Parana Basin, is considered prospective for diamondiferous kimberlites. The project is located within a prominent northwest-southeast trending structural corridor, which is a favorable setting for kimberlite emplacement.

Exploration Results: Exploration results to date indicate very good potential for the discovery of kimberlites in Uruguay.

Planned Activities: Kimberlite pipe targets are expected to be drilled during calendar year 2008. It is UME's intention to joint-venture this project.

RIVERA DIAMOND PROJECT Exploration Activities & Results Summary (as of March 31, 2008)
CALENDAR YEAR	ACTIVITY		RESULTS
HISTORICAL RESULTS
1995 - 2005	Sampling	Garnets and chrome spinels have been recovered from stream samples.
	Airborne geophysics	An aeromagnetic survey generated drill targets.
	Drilling	Diamond drilling intercepted melnoite and lamprophyre intrusions.
2006	Sampling	G9 and G10 garnets, together with chrome spinels were recovered from stream samples. Some of these spinels have chemistry which is indicative of the diamond stability field.
	Air-photo interpretation	This study indicated several geomorphic features for follow up sampling. It also suggests that all diamond and indicator minerals have been sourced from within Uruguay.
	Airborne geophysics	An aeromagnetic and gravity survey has highlighted several targets for ground follow up.
CURRENT RESULTS
2007/2008	Sampling	One micro-diamond has been recovered from a stream sample together with numerous chemically interesting garnets and chrome spinels.
	Ground geophysics	Ground magnetic surveys have delineated targets for drilling. These targets are associated with kimberlite indicator minerals.