CIUDAD DE MEXICO

GUADALAJARA

ZACATECAS

Prepared by J. VeraJanuary , 2018

Fresnillo, ZacatecasMEXICO

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Plateros

LOCATION:

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The “Los Angeles” mining property is located 2 kilometers

north of Plateros town, approximately at 5 kilometers north of

Fresnillo city, State of Zacatecas. Mexico

The region represents a silver world-class mining district ;

historically, recorded with the highest production of silver in

Mexico and in the world.

Discovery and origin of Plateros goes back to year 1566, when

spaniards conquered Mexico territories in America

Geologically speaking, the region is known as the Mexican Silver Belt.Platero´s area is part of the Mexican Silver Belt within the Guanajuato, Zacatecas, Fresnillo and Durango mining trend.

Plateros-Fresnillo

Guanajuato

Durango

Zacatecas

Modified by J. Vera, after Peter Megaw´s presentation. PDAC. Toronto, March 2015.

The Angeles, miningproject Ag_Au

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“Los Angeles”Plateros, Zacatecas

Plate, taken from Orex. Modified by J. Vera. October 2017

Peñasquito: open pit minegold, silver, lead, zinc.Zacatecas. Goldcorp Inc.

Fresnillo: underground minegold, silver, lead, zinc.Zacatecas. Fresnillo plc.

THE «LOS ANGELES» MINING PROJECT,

LOS ANGELES CLAIM

Geology and HistoricalProduction

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●Local GeologyMain out crop rock is a sedimentary sequence known as Proaños formation (early cretaceous) grauwacke, calcareous-carbonaceous shales

● MineralizationQuartz-calcite-adularia, sulphide-oxide silver veins, stockworks, chimney, beds and sediment replacement.

Two-vein striking N 50° W, dipping 45°SW and 400-m length have been recognized within the Los Angeles claim. Vein width varies from 1 to 2 meters.

524 tonnes of ore-mineral were shipped to Fresnillo and Comision de Fomento Minero Processes Plant, averaging1.5 g/t gold and 546 g/t silver

● Historical productionArtisanal mining have been performed during the80´s; 259 metric tonnes were shipped to theComision de Fomento Minero process plantaveraging 1.2 g/t gold and 445 g/t silver.265 metric tonnes were processed at Fresnillo process plant averaging 1.9 g/t gold and 645 g/t silver.

● Mine workings.An old shaft bottomed at 75-m depth; 3-mine drift(all of them are flooded), water table at 45 m-depth.Accesibility to old workings above water table isavailable trough a 50-meter depth inclined shaft at 45 degree along the Los Angeles mineralized vein.After a 15-channel sampling on quartz vein, averageassay returned 0.2 g/t Au and 134 g/t Ag, 1.23-m vein witdh. An outstanding high value as 889 g/t Ag, 1.25 g/t Au , was not included for average purpose.

Old flooded main shaft site.Water table at 45-m depth

FRESNILLO

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LOCATION MAP.THE LOS ANGELES MAIN SHAFT SITE.Geographic coordinates. N 23° 15 07. W 102° 51 42. Elevation: 2,192 meters above sea level (m.a.s.l.)Old flooded shaft. Bottomed at 75 meter-depth. underground workings

Proaño Hill. Fresnillo, year 2016

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Proaño Hill. Fresnillo´s Shaft. Year 1927. Fresnillo Mine, Zacatecas.

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FRESNILLO

Plateros Town

ProañoSanto Niño Veins

The «LOS ANGELES» project site. Plateros. (Ag, Au)

Modified by J. Vera; after Peter Megaw´s presentation. PDAC. Toronto. March 2015.9

SILVER WORLD-CLASS FRESNILLO MINING DISTRICT. SILVER PRODUCTION6 YEARS (2011-2016)

YEAR KILOGRAMS TROY OUNCESAVERAGE ANNUAL

SILVER PRICE/ troy ozUSD

TOTAL VALUEUSD

2016 1,173,831 37,738,666 17.14 646,840,735

2015 1,169,323 37,593,734 15.68 589,469,756

2014 1,069,502 34,384,489 19.07 655,712,211

2013 1,072,246 34,472,709 23.78 819,761,018

2012 1,046,231 33,636,327 31.14 1,047,435,223

2011 1,125,604 36,188,169 35.11 1,270,566,600

TOTAL 6,656,737 214,014,094 5,029,785,542

FUENTE (SOURCE) : INEGI. Estadistica de la Industria Minerometalúrgica. www.inegi.org.mx

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PlaterosLos Angeles claim

Title 15158615 hectares

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MINING CLAIMS

Minera JuanicipioValdecañas Vein

Footwall Vein

Fresnillo PlcVein

Footwall Vein

Modified by J. Vera, taken after de P. Megaw´s presentation. PDAC. Toronto. March 2015.

The «Los Angeles» project

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1. Siliceous residue: opal, chalcedony, cinnabar, pyrite, specularite.2. Advance argillic alteration: ammonium alunite, kaolinite,

buddingtonite.3. Silicification: usually with adularia4. Propyllitic alteration: chlorite, epidote, calcite, pyrite,

momtmorillonite.5. Adularization: albite, increases below the boiling level

Epithermal Intermediate sulphidation Vein

actual surface. Plateros. Elevation 2,190 m.a.s.l.

PALEO SURFACE(eroded)

The “Los Angeles”vein out crop

old mine workings

BUCHANAN´S MODEL ON MINERAL ZONING:The Los Angeles vein out crop at real elevation (2,190 m.a.s.l.). Vein out cropexposed due to erosion of paleo-surface. Platero-Fresnillo area, Zacatecas.

Modified by J. Vera; taken from P. Megaw´s presentation . Mag Siver Corp.

Prospectors and Developers Association of Canada (PDAC). Toronto March 2015.

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Valdecañas Vein (top level)

Valdecañas Vein (bottom levell)

Santo Niño Vein (bottom level)

Santo Niño Vein (top level)

Los Angeles Vein (top level)

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Minera Juanicipio, Fresnillo. Zacatecas

2250Plateros

Juanicipio

Taken from Mag Silver Corp. Modified by J. Vera. The Los Angeles Vein out-crop-elevation 2,190 m.a.s.l. (projection to Juanicipio area)

Old flooded shaft75-meter depth

The «LOS ANGELES» Project. PLATEROS, ZACATECAS Old main shaft site.

Panoramic view

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photo: J. Vera. April 1, 2016

Foto: J. Vera. Agosto 6, 2015

Old mine workings conecting down to mainflooded shaft.

The «Los Angeles» mining projectView of the mineralized vein’s out crop. Entrance at old mine workings, inclined 45° along vein structure; this is located at 100-meter NE from oldflooded main shaft

Photo: J. Vera. April 1, 2016Foto: J. Vera. August 6, 2015

Vein out crop, quartz, iron oxide, pyrite, argillic alteration

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THE “LOS ANGELES” CLAIM.70-meter old mine workings deep along a 45° inclined quartz-calcite veinstructure; argillic, silicified, high iron oxide zone and pyritic “boxworks” (leached zone); supergene silver sulfide enrichment below “water table”. 524 tonnes of ore-mineral were shipped to Fresnillo and Comisión de Fomento Minero Processes Plant, averaging 1.5 g/t gold and 546 g/t silver. (artisanal mining have been performed intermittent during years 1982-1983)

Plateros, Fresnillo. Zacatecas.January 15th, 2018. photo: H.S. Lilles

Flooded zone . Water table at 50-meter depth; just above old drift mine workings.

Old inclined mine workings alongvein structure.

SECTION 1000LOOKING NW. “LOS ANGELES” AND “BUEN SUCESO” VEINS

Elevationm.a.s.l 2,200

2,100

2,050

2,000

2,150

Elevationm.a.s.l

2,200

2,150

2,100

2,050

2,000

NESW

Water tableFlooded zone

surfacecorn & tomato field

Main shaft. 75- m. depth

graphic scale0 50

meters

15-sample on mineralized vein. (one outstanding sample not included) 1.1 m/width: 889 g/t Ag. 1.2 g/t AuAverage assay (see plate 18)Vein width: 1.23 mSilver: 134 gr/tonGold: 0.2 gr/ton

level 65 level 70 level 76

Old mine workings(flooded) Mined out: 524 tonnes

Gold: 1.2 - 1.9 gr/tonSilver: 445 - 645 gr/ton(historical production, years 1980-84)

Underground mining projectEstimated mineral resources: 600,000 tonnesAssay: 1.0 g/t Au. 350 g/t Ag. Process Plant capacity: 200 ton/day (60,000 ton/year)

Entrance. inclined old mine workings on mineralized vein

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Silver-gold assay sheet .Inclined 45°old mine workings on mineralized structure; 50-meter down deep.Laboratory. (ALS Chemex). Guadalajara, Jalisco. April 27, 2016.Averaging, 15-sample on mineralized vein: 1.23-m/width. 0.2 g/t Au; 134 g/t Ag.

PROYECTO PLATEROS. MINA LOS ANGELES, PLATEROS, FRESNILLO, ZACATECAS.

Laboratorio. ALS Chemex de Mexico, SA de CV. Abril 27, 2016

Sample Widh/m Site grams /ton Au Ag Au Ag Au AgAncho/muestre

o/promedio ratio

Au Ag ancho * ley ancho * ley ancho * ley ancho * ley ancho * ley ancho * ley mts.Ag/Au

138. veta 1.55 Pto.2 0.17 88 0.2635 136.4 0.2635 136.4 0.2635 136.4 518

139. veta 1.00 pto 2 + 4 m 0.14 238 0.14 238 0.14 238 0.14 238 1700

140.veta 0.90 pto. 3 + 4.50 m 0.26 146 0.234 131.4 0.234 131.4 0.234 131.4 562

141.veta 1.45 pto. 3 + 8.50 m 0.28 289 0.406 419.05 0.406 419.05 0.406 419.05 1032

142. tabla 1.10 pto.5 + 4 m 0.16 39 0.176 42.9 0.176 42.9 244

143.veta 1.70 pto. 4 0.10 72 0.17 122.4 0.17 122.4 0.17 122.4 720

144.veta 1.20 pto 4 + 4 m 0.18 117 0.216 140.4 0.216 140.4 0.216 140.4 650

145.veta 1.40 pto 4 + 9 m. 0.32 92 0.448 128.8 0.448 128.8 0.448 128.8 288

146.veta 1.30 pto 4 + 14 m 0.29 240 0.377 312 0.377 312 0.377 312 828

147.veta 1.65 pto 4 + 18 m 0.18 69 0.297 113.85 0.297 113.85 0.297 113.85 383

148.veta 1.15 pto 7 + 7 m 0.10 69 0.115 79.35 0.115 79.35 0.115 79.35 690

149.veta 1.10 pto. 11 1.25 889 1.375 977.9 711

150. tabla 1.70 pto 11 + 4 m 0.12 49 0.204 83.3 0.204 83.3 408

151.tabla 1.30 pto 11 + 8 m 0.10 39 0.13 50.7 0.13 50.7 390

152. veta 1.00 pto. 11 + 12 m 0.20 100 0.2 100 0.2 100 0.2 100 500

153. veta 0.90 pto. 11 + 15 m 0.50 244 0.45 219.6 0.45 219.6 0.45 219.6 488

154. tabla 1.00 pto. 11 + 22 m. 1.22 39 1.22 39 1.22 39 32

155. tabla 1.40 pto. 13 + 5 m. 0.14 15 0.196 21 0.196 21 107

156. veta 0.90 pto. 13 + 12 m 0.12 86 0.108 77.4 0.108 77.4 0.108 77.4 717

157. tabla 1.10 pto 13 + 20 m. 0.08 27 0.088 29.7 0.088 29.7 338

158. veta 1.10 pto. 17 + 5 m 0.14 101 0.154 111.1 0.154 111.1 0.154 111.1 721

159. veta 1.20 pto. 17 + 8 m 0.16 112 0.192 134.4 0.192 134.4 0.192 134.4 700

TOTAL. 22 muestras 27.10 0.26 137 7.1595 3708.65 5.7845 2730.75 3.7705 2464.15 1.23

SUB-TOTAL 21 muestras eliminando No.149

26.00 0.22 105 1.24

SUB-TOTAL_15 muestras eliminando No.149,142,150,151,154,155,157

18.40 0.20 134 1.23

2,200

2,150

2,100

2,050

2,000

escala gráfica

0 25 50 mts.

2,200

2,150

2,100

2,050

2,000

Nivel freático (water table)

zona inundadaflooded zone

Elevation(meter above sea level).

m.a.s.l.

LONGITUDINAL SECTION. LOOKING NE.PERFIL LONGITUDINAL. VIENDO AL NE.

VETA LOS ANGELES. VEINNW SE

Tiro Angeles (Shaft)profundidad (depth) 45 mts.

Nv. 65Nv. 70Nv. 76

Obras mineras antiguas/old workings

Tiro Principal (Main Shaft)profundidad ( depth) 75 mts.

Artisanal mining performed during the 80’s.mined out: 524 metric tonnesGold (Au): 1.2 to 1.9 gr/ton (0.04 - 0.06 oz/ton Au)Silver (Ag): 445 to 645 gr/ton ( 14.3 - 20.7 oz/ton Ag)

Open for exploration

Open for exploration

Open for exploration

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graphic scale

Superficie. Elevación 2,190 m.s.n.m.

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Underground mining projectEstimated mineral resources: 600,000 tonnesAssay: 1.0 g/t Au. 350 g/t Ag. Process Plant capacity: 200 ton/day (60,000 ton/year)

Elevation(meter above sea level).

m.a.s.l.

Inclined old mine workings.Vein width: 1.23 mAveraging: 0.2 g/t Au. 134 g/t Ag

WORKING PLAN SCHEDULE

STAGE I. 3-month lead time.Dewatering. Main shaft bottomed at 75-meter depth. Water table approximately at 45-meter depth. There are 3 working mine drifts (levels 65, 70 and 76, all of them are flooded) each of length approximately 100-meter and spanned 15-meter vertically. During the years 1980-83, circa 524 metric tonnes were mined-out averaging 1.5 g/t gold and 546 g/t silver.Working plan. Surveying, geological mapping and sampling of the mineralized structure in order to execute a gold-silver assay and gold-silver metallurgical test recovery to determine ore mineral reserves (proven and probable blocks). This means, a preliminay economic assessment (PEA), before to proceed to stage II.

STAGE II. 20-month lead time.Mine planning and developing underground mineral structure. Accessibility through main shaft in order to hoist a 200 ton/day. This is to set up a small-scale mining operation (pre-feasibility study).

STAGE III. 8-month lead time.Construction of a 200 -metric tonne /day Process Plant (60,000 ton/annually) capacity. (Feasibility-bankable study)

STAGE IV. PRODUCTION. starting MONTH 25thSilver-gold bulk concentrates on sale to Smelter. Saleable product about 652,000 ounces of silver equivalent per year. 10-year mine life. See Financing and capital expenditure projection.

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