MAGUARICHIC PROJECT
[Overview]
In 2004, EXMIN acquired the ownership of the Tati de Oro group of concessions by staking. The five concessions
acquired cover most of a 20 kilometre long mineralized structural zone in the Maguarichic district. This group of
concessions also includes the Alex and Santa Rosa concessions. EXMIN has used the Patria mine, which produced
bonanza high grade ore in the 1930s and in the 1970s, as a model for exploration in the district.
In February, 2006, EXMIN granted an option to Industrias Peñoles S.A. de C.V. (“Peñoles”) to earn up to a 75%
interest in EXMIN’s Maguarichic Project. In order to earn a 65% interest, Peñoles was required to make staged
payments to EXMIN of US$600,000, drill a minimum of 2,000 meters and incur exploration expenditures of
US$3,500,000 by February, 2011. Peñoles could have earned an additional 10% interest by completing a prefeasibility
study.
On March 27, 2009, EXMIN announced that its joint venture with Peñoles had completed the Phase III drill program
to explore a large area of alteration on the southwestern portion of the concession block. The strongly altered rock
yielded anomalous indicator elements over wide distances but precious metal values were low. Peñoles elected not to
continue with the earn-in joint venture but completed sufficient work to earn a total interest of 30% in the project.
The Maguarichic project currently remains a partnership, with EXMIN being a 70% owner and operator.