PROFILE

An Aggressive Exploration-Stage Company and New Producer in Mexico

Dia Bras Exploration is a Canadian-based mining exploration company with silver, lead, copper and zinc properties in Mexico. The Company is committed to advancing and adding value to its core assets in the renowned Sierra Madre mineral belt of Mexico.

Dia Bras began evaluating opportunities in Mexico in 2003, and has since acquired, explored and developed high quality properties and owns three promising projects with significant potential for major discoveries in the State of Chihuahua covering 17,500 hectares and one located in the State of Jalisco covering 350 hectares.

In 2004, the Company acquired the Bolivar project. Bolivar property hosts multiple prospects and exploration targets within a large footprint of alteration and mineralization stretching for four kilometres that has yet to be thoroughly explored. The Bolivar project is related to a single copper-porphyry skarn and breccia-pipe mineralized system.

Dia Bras significantly broadened its land package in 2006 by acquiring the entire Cusihuiriachic (Cusi) silver district, known for centuries as an area rich in silver deposits. The 100-square-kilometre property encompasses at least 12 former silver mines  and is situated very close to our wholly owned Malpaso Mill.

Recently, Dia Bras signed an option to acquire a new Cu-Ag property in Jalisco State, Mexico. La Enganosa project is in south-central Mexico, 115 kilometres southwest of Guadalajara with historical resources of 1.3 million tonnes averaging 1.2% Cu and 51 g/t Ag. Dia Bras will promptly initiate a drilling program to assess the full potential of the property.  

A pilot-mining program at Bolivar has generated operating cash flow since late 2005. It provides financial stability and supports the exploration program, which is aimed at expanding resources and testing promising targets. The strategy at Cusi replicates the successful strategy at Bolivar: explore a very promising mineralized area, and then begin pilot mining to produce silver-lead concentrate.

Dia Bras - 2008 Objectives

Aggressive exploration program to expand and upgrade existing resources at Bolivar, to increase mine life and level of production;

Continue exploration and metallurgical testing at Cusi to establish first resource estimate and start pilot mining;

Initiate a feasibility study at Bolivar to obtain parameters for eventual full-scale production, including construction of an appropriate sized mill on site;

Process 144,000 tonnes of material from Bolivar at average grades of 1.4% Cu and 8.0% Zn for a total net smelter production value of US$24 million;

Blue sky exploration outside Bolivar and Cusi mining areas;

Cost improvement program in all areas of the Company.