Marlin Project Montana Exploradora de Guatemala, S.A.

June 1, 2005

Marlin Project & Development

• San Miguel Ixtahuacán and Sipacapa are two of the ten poorest municipalities.

• 70,000, predominately indigenous Mam & Sipacapense peoples.

• Annual migration to coast or Chiapas.• Need for non-farm rural employment.• What are the development options?

Permits & Licenses

• Exploration began in 1996.

• The Environmental Impact & Social Study according to MARN (Ministry of Environment) regulations.

• EIA&S contained consultation and review.

• Exploitation license - 2003.

• Compliant - ILO 169 & IFC safeguards.

• Social license is not a formal document.

Community Relations Group

• CRG employees from the surrounding communities and San Marcos.

• Liaison with neighboring communities.

• Provide information about Marlin. • Listen to the communities and

respond to questions and proposals.

Community Relations Group

Local Communities at Marlin

COMUDES SIPACAPAXEABAJ

CENTRO DE SALUD CONSEJO MUN SIPACAPA

Sharing Information

• 209 Community Visits to talk with 12,913 persons.

• 260 Visits to Marlin by 4,439 persons.

• 16 trips to the San Martin Mine in Honduras by 202 persons.

[2003 through March/April 2005]

Montana Exploradora Values

• Low cost, efficient mining process with international standards.

• Transparency.

• Corporate Responsibility.

• Environmental Stewardship.

• Sustainable Development.

Transparency• Publicly released the 2004 Environmental

and Social Performance Annual Monitoring Report (AMR) to the IFC on the internet.

• All taxes & royalties publicly disclosed.• Glamis Gold is traded on the Toronto and

New York stock exchanges and meets all Canadian and U.S. disclosure requirements.

Corporate Responsibility

• Working with CentraRSE, Guatemala and BSR -Business for Social Responsibility.

• Employee well-being and success.• Respectful relationship with neighbors.• Formulation of Standards and Code of

Ethics with CentraRSE and other companies.

Environmental Stewardship• Internationally approved Environmental

Impact and Social Study.• Compliance with international and national

environmental standards.• The MARN does a quarterly inspection.• Internal and IFC audits. • Support for environmental monitoring at

different levels: internal, international, national and local.

Environment - Water

• 85% of the water is recycled from tailings impoundment.

• 15% is make-up water from 1,000 foot deep well.

• Community water sources not related to Marlin well.

Environment - Cyanide

• The Marlin Project follows the International Cyanide Code.

• Cyanide recycled in a two-part closed circuit.

• INCO Cyanide destruction technology before discharge to tailings.

Royalties, Taxes, & Expenditures

• $14 million+ over the mine’s life in royalties.• $54 million in income taxes starting 2008.• $ 6 million in property & social security taxes.• $4.8 million payroll in 2004;

84% goes to Guatemala residents.• $33 million to Guatemalan companies (‘04).• $500 million+ project expenditures in

Guatemala during the Marlin Project.

Meetings - Local Communities

CARRIZAL

SAN JOSÉ IXCANICHESIPACAPA

CANOJEL TRIUNFO

Community Projects

• Potable Water.• Principal roads, bridges & community

roads.• Social Infrastructure Projects • 8 teachers 2004, 37 teachers in 2005.• Adult literacy.• 70 Student scholarships in 2004.• Teaching materials.• 2003 through March 2005 =

Q/. 5,922,473. (~ US $780,000)

San Marcos Projects

• Montana Exploradora intends to create a $5 million trust fund.

• The use of the annual interest from the trust fund will benefit the San Marcos Department.

• The mechanisms for operation are under discussion.

Stakeholders Process

• Montana is committed to a community-centered, participatory sustainable development plan.

• Montana plans to commit resources to a sustainable development plan contingent on commitments by other stakeholders.

Fundación Sierra Madre

• Non-Profit NGO.• Created by Citizens Development

Corps (CDC) and Montana Exploradora, S.A.

• Works in San Miguel Ixtahuacán & Sipacapa.

• $400,000 annually from Montana.• FSM will receive Marlin Project lands.

Project ConcernInternational

Glamis Gold & Montana

Exploradora

CitizensDevelopment Corps

IFC (Grant)

FAFIDESS

INTECAP(Guatemala government

training institute)

FundacionSierra Madre

Integrated CommunityDevelopment Program (ICDP)

Other NGOs

Economic Opportunity & Micro-finance

TrainingHealth

APROSAMI

AgroforestryMunicipal Strengthening

Working to Improve

• Increase information sharing with neighboring communities.

• Additional information for NGOs and other stakeholders outside of area.

• Opportunities for Dialogue.• Stakeholders Process.

Montana Exploradora Employees

Sierra Madre and Cuchamatanes Dawn for a Bright Future