LIRIO GOLD PROJECT

The Lirio Gold Project (“Lirio”) is a very prospective and under-explored gold system which has indications of being an extensive volcanic breccia gold system based on historical drilling, detailed surface sampling and the general geology of the area.

Historical sampling at Lirio has returned results of:

• up to 125g/t Au from chip samples and up to 7.7g/t Au from channel samples
• drill hole KBL-01 intersected 7.19 g/t Au and 0.63% Cu over 5.52 metres, including 17.8 g/t Au and 0.25% Cu over 2.03 metres

A very limited drilling campaign was carried out in 2008 by the Rio Narcea/Kernow joint venture, that intersected the mineralized zone below the main zone of the shallow underground workings.