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eResearch Corporation www.eresearch.ca

Update Report March 4, 2011 . . . . . . . . . . 3

Recommendation Speculative Buy

Risk High

Price (March 4, 2011) $0.32

52-Week Range $0.43 - $0.10

Target Price (12 Months)

$0.60

Shares O/S 174.77 million

Market Cap $55.9 million

Average Daily Volume 50-day: 678,300

200-day: 375,300

Year-End December 31

Salient Statistics Book Value Per Share $0.09

Price/Book Value 3.44x

Properties Per Share $0.05

Monthly Burn (2010e) $39,300

Monthly Burn (2011e) $41,000

Analysts Shash Patel, B.Sc., MBA

Bob Weir, B.Sc., B.Comm, CFA

eResearch Corporation

56 Temperance Street

Suite 501

Toronto, ON M5H 3V5

Telephone: 416-643-7650

Toll Free: 877-856-0765

DURAN VENTURES INC. ($0.32; TSX-V: DRV)

Data Source: www.BigCharts.com

UPFRONT

A fully-funded exploration and development program over the next 12

months that includes 15,000 to 20,000 metres of drilling at the Company’s

flagship Aguila copper-molybdenum project, as well as drilling at its

Corongo and Iguila projects, could prove rewarding for investors should

Duran Ventures Inc. (“Duran” or the “Company”) capitalize on its drilling

efforts.

RECOMMENDATION AND TARGET PRICE

Our Recommendation and Target Price were placed Under Review in

February 2011, when the stock price surpassed our 12-month Target Price

of $0.28. We have selected a new 12-month Target Price of $0.60, which

is supported by our derivation of an intrinsic value for the Company using

the eResearch-derived Property Ratio Method (see Valuation section on

page 5). This removes the stock from being Under Review, and we iterate

our “Speculative Buy” Recommendation.

PROFILE

Duran Ventures Inc. is a Canadian-based junior exploration and

development company that is focused on large-tonnage mineral deposits

in Peru. Its flagship project is the past-producing Aguila copper-

molybdenum property in the region of Ancash, in northern Peru.

Duran Ventures Inc. Update Report


INVESTMENT HIGHLIGHTS

Duran expects to complete 15,000 to 20,000 metres of diamond drilling at its Aguila copper-molybdenum

(Cu-Mo) porphyry project in 2011. Drilling will comprise infill and extension holes in the (i) Aguila, (ii)

Aguila West, and (iii) Aguila East targets, with the Company’s goal being to define an initial Cu and Mo

resource this year.

COMMENT: The above drilling program is expected to be completed prior to the end of Q3/2011. The objective of the drilling is to (i) delineate the Aquila deposit, and (ii) provide exploration drilling south of

Aguila. In addition to drilling, the Company will perform metallurgical testing beginning in Q2/2011. Drilling and metallurgical testing will be followed up with the initiation of an NI 43-101 resource estimate

expected in Q4/2011.

Duran has planned for 2,000 metres of drilling at its Corongo gold-silver (Au-Ag) project. The Aguila and

Corongo diamond drilling programs will be undertaken at the same time.

Permitting work has begun for a planned diamond drill program at the Company’s Ichuña copper-silver

(Cu-Ag) project, with drilling expected to begin in Q4/2011. Significant Cu and Ag mineralization, and

strong geophysical anomalies, were defined during initial work campaigns in 2010.

Duran added a total of 6,106 hectares to its properties in Peru during February 2011. The new holdings

border existing project areas (Aguila, Minasnioc, Matucana, and Panteria) and increase the potential of the

projects.

The Company recently raised $7.44 million in a bought-deal private placement offering. The Company

closed the first tranche in late December 2010, for gross proceeds of $6.44 million. The second and final

tranche of the offering closed in January 2011, for gross proceeds of $1.00 million. The proceeds of the

$7.44 million bought-deal financing are being used primarily for exploration and development of Duran’s

projects in Peru.

The Company has assembled a reputable and experienced management team in the mining and finance

industries. (For more on Management and Directors, see Appendix 1, page 11 of our Initiating Report on

Duran at http://www.eresearch.ca/_report/DRV_072110-I.pdf).

COMMENT: In July 2010 Duran added Steve Brunelle to the Board of Directors. Mr. Brunelle is experienced in taking projects to feasibility. The addition of Mr. Brunelle to the board indicates that the

Company could be preparing to take its most advanced project, the Aguila copper-molybdenum project, to

feasibility, making it an attractive acquisition target for Penoles.

All of Duran’s operations are located in Peru. Peru is a mining-friendly country with low political risks

and supportive governments. The country contains favourable geology and hosts world-class deposits.

(For more on Peru, see Appendix 3, page 20 of our Initiating Report on Duran at

http://www.eresearch.ca/_report/DRV_072110-I.pdf).

http://www.eresearch.ca/_report/DRV_072110-I.pdf




PROPERTIES

1. Property Location Map

Exhibit 1: The map below shows the location of the Company’s properties across Peru.

Source: Duran Ventures Inc.



2. Overview of Properties

The table below provides a summary of Duran’s property portfolio, including the Company’s flagship Aguila

copper-molybdenum project. The Company’s primary focus is its Aguila, Corongo, and Ichuña projects.

Exhibit 2: Duran’s Property Portfolio

Source: Company

Additional information on the Company’s properties can be found in (i) the Exploration Update of Primary

Projects section on page 8 of this report, and (ii) Appendix 2, Properties, on page 12 of our Initiating Report on

Duran at http://www.eresearch.ca/_report/DRV_072110-I.pdf.




VALUATION

We valued Duran Ventures using the eResearch-derived Property Ratio Method, which focuses on corporate

comparisons using the following criteria:

Companies having properties that host similar mineralization characteristics;

Companies that are similar in terms of being at the same stage in the production cycle; and

Companies located in the same region or in regions that are geologically similar.

Duran’s peer group is comprised of three TSX-V listed companies and one TSX listed company, namely, (1)

Dorato Resources Inc.; (2) Golden Alliance Resources Corp.; (3) New Dimension Resources Ltd.; and (4)

Norsemont Mining Inc. that are:

Focused on exploration of their base and/or precious metal properties;

Junior mining companies at the exploration stage, with little or no current production; and

Committed to exploration of properties in Peru.

Property Ratio Valuation Method

Duran Ventures is compared to the four peers in Exhibit 3: Corporate Comparison.

Exhibit 3: Corporate Comparison

eResearch Approach

In the table above, we have estimated the value of Duran’s mineral property portfolio 12 months forward by

adding the anticipated $6.0 million capital expenditures for the forecast period to the existing mineral property

value. Then we apply, to the Adjusted Book Value of the mineral property, the selected Mineral Property

Ratio, as determined by analyzing and comparing the relative merits of the peer companies with the subject

company. In this respect, in order to smooth out any abnormal short-term price fluctuations, we have taken the

50-day average price (as of February 28, 2011) for all companies.



Analysis of the Property Ratio

The Property Valuation Approach is based upon an analysis of the Property Ratio, which measures the

premium the market currently places on a company’s mineral properties. All else being equal, a higher

premium indicates the market is anticipating greater future value from the assets in the ground, while a lower

premium may represent an undervalued asset. Our analysis utilizes the latest available financial statements for

the respective companies.

Duran’s current Property Ratio of 4.71x is less than the average ratio of 6.04x for its peers. The average ratio is

significantly influenced by Norsemont Mining, even after allowing for the use of the stock price just prior to

the take-over announcement of Norsemont by HudBay Minerals Inc.

Shown below is a table indicating the intrinsic value over the next 12 months for Duran at Property Ratio levels

ranging between 3.00x and 9.00x, at 1.00x intervals.

Current

Current

Property Ratio:

Book Value

Property Ratio

Next 12 Months

Property Ratio 1.00x

4.71x

3.00x 4.00x 5.00x 6.00x 7.00x 8.00x 9.00x

Intrinsic Value $0.11

$0.47

$0.30 $0.40 $0.50 $0.59 $0.69 $0.79 $0.89

Source: eResearch

In line with the peer group, we are choosing a ratio of 6.00x as being appropriate for Duran, and supported by

the Company’s aggressive exploration and development program for its Aguila project where it has planned to

drill 15,000 to 20,000 metres over the next 12 months and perform metallurgical testing, followed up with the

initiation of an NI 43-101 resource estimate in Q4/2011.

At the Selected Ratio of 6.00x, the Intrinsic Value of Duran Ventures is $0.59 per share. We are selecting $0.60

per share as our new 12-month Target Price. This removes the stock from being Under Review, and we iterate

our “Speculative Buy” Recommendation. The new Target Price is up from our previous $0.28.

FINANCIAL REVIEW

Year-End: December 31

Revenue: The Company currently does not generate any operating income.

Operating Burn: The “burn” refers to those non-discretionary general and administrative expenses, such as

rent, professional fees, financial reporting requirements, and salaries and benefits etc. over which management

has limited control. For the first nine months of 2010, the monthly burn was $39,300. Our estimate for the

remainder of 2010 and for 2011 is an average monthly burn of $39,300 and $41,000, respectively.

Cash: At September 30 2010, Duran had cash resources totaling $456,765. Since then, using our estimated

monthly “burn” rate for 2010 and 2011 (see above), G&A operating costs would have been about $199,900,

plus assumed capex of $1,054,700, and factoring in a gross financing of $7.44 million, we estimate the

Company’s current cash (as of February 28, 2011) to be approximately $6.16 million.

Capex: For the first nine months of 2010 the Company spent $1.214 million on exploration expenditures. We

forecast 2010 exploration expenditures of $1.619 million based on the same rate for the first nine months.

However, we forecast 2011 exploration expenditures of approximately $6.0 million, which incorporates the

Company’s aggressive drill program at Aguila and, additionally, its exploration efforts at Corongo and Iguila.

Financing: In November 2010, the Company announced a bought-deal, two-tranche, private placement

financing. The first tranche closed prior to year end 2010 for gross proceeds of $6.442 million and the second

tranche closed in January 2011 for gross proceeds of $1.001 million. The $7.44 million gross proceeds

received mean that the Company’s activities over the next 12 months are fully funded.



Exhibit 4: Selected Financial Information

Source: Company and eResearch



EXPLORATION UPDATE OF PRIMARY PROJECTS

1. Aguila Project

The Company carried out surface sampling of the Aguila project during Q3 and Q4 of 2009. Samples collected

averaged 0.24% (2464 ppm) copper. Surface samples of over 100 ppm are considered significant anomalies

and warrant further exploration. The surface sampling confirmed the extent of the mineralized area which

extends for more than 1,300 metres from southwest to northeast, from Aguila West to Aguila East.

A channel sampling program was also carried out on the Aguila East intrusive body and results indicated that

the Aguila East area is an important part of the Aguila mineralized system.

The Company hired VDG del Peru S.A.C. to carry out a geophysical survey during September and October of

2009 on the property to further define and expand the mineralized zone. The size and intensity of the

geological anomalies from the survey indicate the potential for a mineralized system considerably larger than

what was previously known in the region.

During the months of December 2009 and January 2010, the Company drilled 3 diamond drill holes for a total

of 1,211.7 metres. Duran has drilled 17 holes, totaling 8,754 metres since 2007. All holes have returned

significant copper and molybdenum mineralization.

Duran expects to complete about 15,000-20,000 metres of diamond drilling at the Aguila copper-molybdenum

porphyry project in 2011. Drilling will comprise infill and extension holes in the (i) Aguila, (ii) Aguila West,

and (iii) Aguila East targets, with the Company’s goal being to define an initial copper and molybdenum

resource this year. Duran is awaiting final approval (expected shortly) on the extension of the Aguila diamond

drilling permit from the Peruvian Ministry of Energy and Mines before the drilling program can begin.

Exhibit 5: The following map shows the Aguila, Aguila East, and Aguila West mineralized zones.

Source: Company



2. Corongo Project

In January 2011, the Company provided a summary of Phase 2 exploration activities at its Corongo project in

Ancash, Peru. The field campaign over the third and fourth quarters of 2010 focused on the Santa Rosa East

and Descubridora Zones, both of which returned anomalous gold and silver values in Company sampling

conducted in 2009.

The field campaign included continuous channel sampling, detailed 1:1000 scale geological mapping, and a

geophysical survey conducted by VDG del Peru S.A.C. The objective of the program was to define potential

bulk-mineable precious metals targets and prepare the property for a diamond drilling program.

The Peruvian Ministry of Energy and Mines has granted Duran a Category 1 Drill Permit for the Corongo

project which allows up to 20 drill platforms. Duran has also signed surface rights agreements with the two

communities in the Corongo Area, which are valid until October 9th, 2011.

Duran is currently in the process of (i) selecting a drill contractor, and (ii) interpreting the geophysical results.

The Aguila and Corongo diamond drilling programs will be undertaken at the same time. Duran has planned

about 2,000 metres of drilling for the Corongo project. (See Exhibit 6, page 10)

3. Ichuña Project

In 2010, Duran completed a field campaign on its Ichuña project located in southern Peru. The completed

work program included detailed geological mapping at a scale of 1:2000, detailed channel sampling, and a

geophysical survey with VDG del Peru S.A.C.

Results from the above exploration program at Ichuña indicate copper and silver values occur over at least a 2.5

kilometre-long trend. Samples of significant widths provided copper values in the range of 100s to 1000s of

ppm (or 0.01% to 0.10%). Copper values in this range are considered to be important geochemical anomalies

in this geological environment and indicate strong exploration potential.

The Company has begun (i) permitting work, and (ii) compiling all geological, geochemical, and geophysical

data in order to prepare the project for diamond drilling expected to begin in Q4/2011.

The Ichuña Project is located approximately three kilometres from the Canahuire project of Gold Fields and

Compañia de Minas Buenaventura. Continued development by these companies of the Canahuire project,

highlights exploration potential in this area. The Canahuire project has a mineral resource estimate of 83.7

million tonnes grading 1.9 g/t Au and 8.2 g/t Ag, for an Inferred Resource of 5.6 million Au equivalent ounces.

(See Exhibit 7, page 10)

CORPORATE INFORMATION

Duran Ventures Inc.

87 Front Street East

2nd Floor

Toronto, Ontario, Canada

M5E 1B8

Phone: 416-867-1591

Fax: 416-366-8131

Email: [email protected]

mailto:[email protected]



Exhibit 6: The map presents the Corongo property and its five prospective targets: Descubridora, Santa Rosa, Santa

Rosa East, Pucapampa, and the Breccia Zone targets.

Source: Company

Exhibit 7: Map illustrating the proximity of the Ichuña project to the (i) Canahuire project of Gold Fields and

Buenaventura, and (ii) Cerro Chucapaca project of Goldfields and Buenaventura.

Source: Company



ANALYST CERTIFICATION

Each Research Analyst who was involved in the preparation of this Research Report hereby certifies that:

(1) the views, opinions, and recommendations expressed in this Research Report reflect accurately the Research

Analyst’s personal views concerning any and all securities and issuers that are discussed herein and are the subject

matter of this Research Report; and

(2) the fees, earnings, or compensation, in any form, payable to the Research Analyst, is not and will not, directly or

indirectly, be related to the specific views, opinions, and recommendations expressed by the Research Analyst in

this Research Report.

eResearch Analysts on this Report:

Shash Patel, B.Sc. (Act. Sc.), MBA: Shash Patel has more than 8 years work experience in equity research, portfolio

analysis, and pensions and benefits. He joined eResearch in September 2009.

Bob Weir, B.Sc., B. Comm., CFA: Bob Weir has 44 years of investment research and analytical experience in both

the equity and fixed-income sectors, and in the commercial real estate industry. He joined eResearch in 2004 and has

been its President, CEO, and Managing Director, Research Services since May 2005. Prior to joining eResearch, Mr.

Weir was at Dominion Bond Rating Service (DBRS), latterly as Executive Vice-President responsible for supervising

the firm’s 34 analysts and conducting the day-to-day management affairs of the company.

Analyst Affirmation: I, Shash Patel, and I, Bob Weir, hereby state that, at the time of issuance of this research report, I

do not own, directly or indirectly, any shares of Duran Ventures Inc.

eRESEARCH ANALYST GROUP

Managing Director, Research Services: Bob Weir, CFA

Financial Services

Robin Cornwell

Biotechnology/Health Care

Scott Davidson

Mark Mitchell

Transportation &

Environmental Services/

Industrial Products Bill Campbell

Oil & Gas

Yuri Belinsky

Eugene Bukoveczky

Achille Desmarais

Special Situations

Bill Campbell

Mark Edwards

Bob Leshchyshen

Shash Patel

Perry Siu

Mining & Metals Yuri Belinsky

Eugene Bukoveczky

Shash Patel

Mining Advisors

George Cargill

Graham Wilson

eResearch Disclaimer: In keeping with the policies of eResearch concerning its strict independence, all of the opinions expressed in this report, including the selection of the 12-month Target Price and the

Recommendation (Buy-Hold-Sell) for the Company’s shares, are strictly those of eResearch, and are free from

any influence or interference from any person or persons at the Company. In the preparation of a research

report, it is the policy of eResearch to send a draft copy of the report, without divulging the Target Price or Recommendation or any reference to either in the text of the report, to the Company and to any third party that

paid for the report to be written. Comments from Company management are restricted to correcting factual

errors, and ensuring that there are no misrepresentations or confidential, non-public information contained in the report. eResearch, in its sole discretion, judges whether to include in its final report any of the suggestions

made on its draft report.



eResearch Recommendation System

Strong Buy: Expected total return within the next 12 months is at least 40%.

Buy: Expected total return within the next 12 months is between 10% and 40%.

Speculative Buy: Expected total return within the next 12 months is substantial, but Risk is High (see below).

Hold: Expected total return within the next 12 months is between 0% and 10%.

Sell: Expected total return within the next 12 months is negative.

________________________________________________________________________________________________________

eResearch Risk Rating System

A company may have some, but not necessarily all, of the following characteristics of a specific risk rating to qualify for that rating:

High Risk: Financial - Little or no revenue and earnings, limited financial history, weak balance sheet, negative free cash flows, poor

working capital solvency, no dividends.

Operational - Weak competitive market position, early stage of development, unproven operating plan, high cost

structure, industry consolidating, business model/technology unproven or out-of-date.

Medium Risk: Financial - Several years of revenue and positive earnings, balance sheet in line with industry average, positive free cash

flow, adequate working capital solvency, may or may not pay a dividend.

Operational - Competitive market position and cost structure, industry stable, business model/technology is well

established and consistent with current state of industry.

Low Risk: Financial - Strong revenue growth and earnings over several years, stronger than average balance sheet, strong positive

free cash flows, above average working capital solvency, company may pay (and stock may yield) substantial dividends

or company may actively buy back stock.

Operational - Dominant player in its market, below average cost structure, company may be a consolidator, company may

have a leading market/technology position.

________________________________________________________________________________________________________

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procedures. For instance, fees from Covered Companies are due and payable prior to the commencement of research.

Duran Ventures Inc. paid eResearch $12,500+GST to have it conduct research on the Company on an Annual Continual Basis.

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