Flagship Property

San Jose de Gracia (Sinaloa, Mexico; “SJG”); Potentially the “Most Significant” Project Development in the Region.

100 % OWNED by DynaResource de Mexico, SA de CV; 15 Square Kilometers Mineralized Area; Historic Production of 1 M Oz. Gold, Bonanza Grades; Recent High Grade Production:

  • 4,750 Oz. Gold Produced at San Pablo Area in 5 Months Production, 2003; Average Grade of 25 G/T; 90 % Recoveries.
  • >18,250 Oz. Gold Produced through June 30, 2006; Overall Average Grade of Approx. 20 G/T; Average Production Cost of Approx. $ 175 / Oz.
  • Transitioned from Pilot Production to Exploration in 2006 to Focus on Drilling and definition of resources.
  • Reported Production of 1,000,000 OZ. AU with Bonanza Grade Gold values through 1910.
  • >Property fully acquired (approx. $ 3.5 M. US).
  • Surface Rights Agreement Completed.
  • $ 2 Million USD Exploration Program Completed. (1997-1998).
  • $ 18 Million USD Exploration Programs Completed. (2007- March 31, 2011).
  • Confirmation of Significant Vein Deposits; With Bonanza Grades (see Maps and SJG Target Table):>
    • Tres Amigos/La Cecena; La Cecena/Los Hilos; Los Hilos/Santa Rosa; Total 1.4 Km. Strike Length; Potential + 400 M. Down Dip;
    • San Pablo; Recent High Grade Production; San Pablo Ore Shoot confirmed over 500 Meters Length and + 400 Meters Down Dip; Average Grade of + 8 g/t.;
    • La Union / Veta Tierra; La Union / La Parilla; La Union / La Prieta; Potential 5 veins X 1.5 Km. Strike Length; Potential + 400 M Down Dip;
    • Palo Chino; Potential Surface Mineable; Potential + 400 M. Down Dip; Parallel to La Purisima.
    • La Purisma; Past Production 470,000 ounces Gold at Average Grade of + 66 g/t.;
    • La Prieta; Past production 250,000 ounces gold at average 0.9 oz/ton; Additional Flat Zones Potential.
    • Argillic Zone; (Bulk Mining Potential).
    • Location of Bulk Tonnage potential at Palos Chinos; (15 meters @ 3 grams/ton; 7m @ 7 grams/ton).

    * 200 TON / Day Flotation Mill in Place; Operational at April, 2003; Currently suspended to Focus on Exploration / Drilling.

  • Overall Production expected at < $400. / Oz.; at 2 g/t cut off.
  • Metallurgy Program Completed:
    • Confirmed 95% recoveries in metallurgical testing and in pilot production operation.
    • Basic Gravity / Flotation circuit.