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TECHNICAL REPORT

ON THE

UPDATED RESOURCE ESTIMATE AND PRELIMINARY


ECONOMIC ASSESSMENT FOR THE
LAS POSADAS COPPER DEPOSIT,
LA CORONA DE COBRE PROJECT

Located near La Serena, Region IV, Chile

For

GLOBAL HUNTER CORP.


Suite 502 - 535 Thurlow St,
Vancouver, British Columbia, Canada V6B 4N8

BY:

Allan Armitage, Ph. D., P. Geol. GeoVector Management Inc.


Joe Campbell, B.Sc., P. Geo., GeoVector Management Inc.

October 22, 2012


TABLE OF CONTENTS PAGE

TABLE OF CONTENTS........................................................................................................................... 1
LIST OF FIGURES .................................................................................................................................. 2
1 SUMMARY ................................................................................................................................. 4
2 INTRODUCTION......................................................................................................................... 7
3 RELIANCE ON OTHER EXPERTS ............................................................................................. 7
4 PROPERTY DESCRIPTION AND LOCATION ............................................................................ 8
4.1 Property Location ..................................................................................................................... 8
4.2 Property Description ................................................................................................................. 8
4.3 Land Tenure in Chile .............................................................................................................. 15
5 ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ....... 17
6 HISTORY .................................................................................................................................. 17
6.1 History of Exploration ............................................................................................................. 17
6.1.1 1967 - 1968 .................................................................................................................... 18
6.1.2 1991 1994 Exploration ................................................................................................. 18
6.1.3 1995 1997 Exploration ................................................................................................. 18
6.1.4 1997 Exploration............................................................................................................. 18
6.1.5 1997 Exploration............................................................................................................. 18
6.1.6 1998 Exploration............................................................................................................. 18
6.1.7 2000 Exploration............................................................................................................. 19
6.1.8 2005 ............................................................................................................................... 19
6.2 Historical Resource Estimates ................................................................................................ 19
6.2.1 Noranda Historic Resource Estimate .............................................................................. 19
6.2.2 Andale ............................................................................................................................ 20
6.2.3 Augusta Metals Inc. ........................................................................................................ 20
6.2.4 Sociedad Minera Pudahuel S.A. (SMP)........................................................................... 23
6.2.5 Global Hunter 2005 Resource Estimate .......................................................................... 23
7 GEOLOGICAL SETTING AND MINERALIZATION .................................................................... 25
7.1 Regional Tectonic Setting ....................................................................................................... 25
7.2 Regional Geology................................................................................................................... 27
7.3 Property Geology ................................................................................................................... 29
7.4 Mineralization ......................................................................................................................... 32
7.5 Property ................................................................................................................................. 32
7.6 Las Posadas .......................................................................................................................... 32
8 DEPOSIT TYPES...................................................................................................................... 33
8.1 Magnetite deposits ................................................................................................................. 33
8.2 Manto-type copper deposits ................................................................................................... 33
8.3 IOCG deposits........................................................................................................................ 33
9 EXPLORATION......................................................................................................................... 35
9.1 Exploration by Others - Pre-2005 ................................................................................................ 36
9.1.1 1967 1968: .................................................................................................................. 36
9.1.2 1991 - 1994: ................................................................................................................... 36
9.1.3 1995 1997: .................................................................................................................. 36
9.1.4 1997: .............................................................................................................................. 37
9.1.5 1997: .............................................................................................................................. 37
9.1.6 1998: .............................................................................................................................. 38
9.1.7 2000: .............................................................................................................................. 38
9.2 Global Hunter Exploration....................................................................................................... 38
10 DRILLING ................................................................................................................................. 38
10.1 Drilling by Others - Pre-2005 .................................................................................................. 42
10.1.1 1991 - 1994: ................................................................................................................... 42
10.1.2 1995 - 1997: ................................................................................................................... 42
10.1.3 1997: .............................................................................................................................. 42
10.1.4 1998: .............................................................................................................................. 42

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10.1.5 Drill Hole Surveying ........................................................................................................ 44
10.1.6 Logging, Data Collection and Management ..................................................................... 44
10.2 Global Hunter Drilling ............................................................................................................. 44
11 SAMPLE PREPARATION, ANALYSIS AND SECURITY............................................................ 48
11.1 Pre-2005 Sample Preparation, Analysis and Security ............................................................. 48
11.1.1 Rio Bravo ....................................................................................................................... 48
11.1.2 Noranda ......................................................................................................................... 48
11.1.3 Augusta .......................................................................................................................... 48
11.1.4 SMP ............................................................................................................................... 49
11.2 2005-2007 Global Hunter Sample Preparation, Analysis and Security..................................... 49
11.2.1 Field Preparation, Security and Shipping ........................................................................ 49
11.2.2 Analytical Work............................................................................................................... 50
12 DATA VERIFICATION............................................................................................................... 51
12.1 Global Hunter QA/QC............................................................................................................. 51
12.2 Twinned Drill Holes ................................................................................................................ 52
12.3 Use of pre-2005 Data ............................................................................................................. 52
12.3.1 Assay Analysis, by Company .......................................................................................... 52
12.3.2 Assay Analysis by Domain.............................................................................................. 53
12.3.3 Comparison of Hot and Cold Acid Assay Techniques ...................................................... 53
13 MINERAL PROCESSING AND METALLURGICAL TESTING ................................................... 53
13.1 Recent Metallurgical Test Program ......................................................................................... 53
14 MINERAL RESOURCE ESTIMATE ........................................................................................... 56
14.1 Drill File Preparation ............................................................................................................... 56
14.2 Resource Modelling and Wireframing ..................................................................................... 57
14.3 Composites ............................................................................................................................ 59
14.4 Grade Capping ....................................................................................................................... 60
14.5 Specific Gravity ...................................................................................................................... 60
14.6 Block Modeling ....................................................................................................................... 61
14.7 Model Validation..................................................................................................................... 62
14.8 Resource Classification .......................................................................................................... 62
14.9 Resource Reporting ............................................................................................................... 62
14.10 Pit Optimization and Economic Evaluation .............................................................................. 65
15 ADJACENT PROPERTIES........................................................................................................ 72
16 OTHER RELEVANT DATA AND INFORMATION ...................................................................... 72
17 INTERPRETATION AND CONCLUSIONS ................................................................................ 73
18 RECOMMENDATIONS ............................................................................................................. 74
19 REFERENCES ......................................................................................................................... 76
20 DATED AND SIGNATURE PAGE ............................................................................................. 77
CERTIFICATES OF AUTHORS............................................................................................................. 78

LIST OF FIGURES
Figure 1 Location of the La Corona de Cobre Project ......................................................................... 9
Figure 2 Exploitation and Exploration Concessions........................................................................... 14
Figure 3 Regional Geology. .............................................................................................................. 28
Figure 4 Property Geology ............................................................................................................... 30
Figure 6 Isometric view looking northwest showing the drill hole distribution in the Deposit area. ...... 57
Figure 7 Isometric view looking northeast showing the Deposit oxide and sulphide resource models. 58
Figure 8 Isometric view looking northeast showing the Deposit oxide and sulphide resource models. 61
Figure 9 Results of Whittle Pit Optimisation at $3.25/lb Copper Price for the Las Posadas Deposit. .. 68
Figure 10 Results of Whittle Pit Optimisation at $3.00/lb Copper Price for the Las Posadas Deposit. .. 69
Figure 11 Results of Whittle Pit Optimisation at $3.50/lb Copper Price for the Las Posadas Deposit. .. 70
Figure 12 Results of Whittle Pit Optimisation at $3.75/lb Copper Price for the Las Posadas Deposit. .. 71

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LIST OF TABLES

Table 1 Property Concessions ........................................................................................................ 10


Table 2 Noranda Tonnage Estimate ................................................................................................ 19
Table 3 Augusta Resource Summary by Cut-off Grade. .................................................................. 21
Table 4 CAG modeling parameters. ................................................................................................ 22
Table 5 CAG Pit Parameters. .......................................................................................................... 22
Table 6 SMP Resource Summary. .................................................................................................. 23
Table 7 Andal Trench Data............................................................................................................ 36
Table 8 Noranda Trench Data ......................................................................................................... 37
Table 9 Summary of Drilling in the Deposit area .............................................................................. 39
Table 10 List of drill holes completed on the Property to date ............................................................ 40
Table 11 Pre-2005 drilling results ...................................................................................................... 43
Table 12 Global Hunter 2005 and 2007 drill results ........................................................................... 45
Table 13 Summary of the drill hole data used in the resource modeling and resource calculation ...... 57
Table 14 Summary of the drill hole assay and composite data for drill holes within the Deposit area. . 59
Table 15 Summary composite data from within the oxide and sulphide resource models. .................. 60
Table 16 Las Posadas Resource....................................................................................................... 64
Table 17 Whittle Pit Optimisation Parameters. ................................................................................... 66
Table 18 Results of the Base Case and Sensitivity Analysis Whittle Pit Optimisation Results. ............ 67

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SUMMARY
Global Hunter Corp.s (Global Hunter) La Corona de Cobre project consists of 1,000 ha of exploration
concessions and 15,111 ha of exploitation concessions (the Property) for a current total property size of
nearly 16,111 ha. The Property is located in the Coast Range of the Andean Cordillera in Region IV,
Chile, an area often referred to as the Chilean Iron Belt. The Property lies about 70 to 75 km north of the
city of La Serena, the capital of Region IV. The Property is crossed by the Pan-American Highway which
is less than a few hundred metres from the Las Posadas deposit (the Deposit), the subject of this report.
It is readily accessible to water, the electrical power grid and railroad, and a trained workforce familiar with
the mining and mineral exploration industries.

Global Hunter has acquired, through an option agreement, a 100% interest in the Property from
Inversiones Y Minera Andal Ltda. and Exploraciones Rio Bravo Ltda., by making a series of cash and
stock payments and committing to exploration expenditures totalling $3,500,000 on or before June 30,
2007 (amended to September 30th). The project is subject to a 2% net smelter return royalty reserved to
the underlying optionor.

The Property was initially the subject of a National Instrument 43-101 (NI 43-101) Technical Report for
Global Hunter. The report described previous exploration activities completed by prior exploration groups
and opined on a proposed mineral exploration program consisting primarily of reverse circulation (RC)
and diamond drilling on the Deposit. Global Hunter completed a Phase I exploration program in 2005
and retained Micon International Limited (Micon) to prepare a NI 43-101-compliant mineral resource
estimate for the Deposit using the drill results of the 2005 and previous programs.

In 2007 Global Hunter drilled an additional 29 diamond drill holes totalling 9,038.45 m as part of Phase II
program. The purpose of the Phase II program was to further define the resource and economics of the
Deposit. Global Hunter retained GeoVector Management Inc. (GeoVector) to prepare a NI 43-101-
compliant updated mineral resource estimate for the Deposit incorporating the results of the 2007 drill
program, the subject of this report.

Previous work has outlined significant copper oxide, copper sulphide, and variable gold mineralization
ranging from five to 80 m in width and hosted by a shear zone that is up to 150 m wide. Substantial
potential exists for additional shear zone hosted mineralization including numerous previously identified
structures that are geologically similar in nature to the Deposit. Previous work on the property has also
identified larger scale targets for Iron Oxide Copper Gold (IOCG) styles of mineralization that are
represented by large altered and variably mineralized zones.

Over the last 15 years, portions of the Chilean Iron Belt have received exploration attention due to
significant IOCG discoveries at Candelaria and Manto Verde. It has been suggested that these and other
copper and copper-gold deposits in the Chilean Iron Belt are associated with structures along the
Atacama Fault Zone, a north-northeast trending regional structure that stretches for over 1,000 km along
the Iron Belt. La Corona de Cobre District, toward the southern end of the Atacama Fault Zone, has an
exposed swarm of over 15 shear zones at the intersection of the generally north trending Atacama Fault
Zone and at least one major east trending fault zone.

The shear zone hosting the Deposit has alteration features strongly suggestive of IOCG-style
mineralization along with associated anomalous copper and gold values.

The property geology has been described as follows: The property is underlain by lower Cretaceous
andesites in contact with mid-Cretaceous granodiorites of the Coastal Batholith. Copper +/- gold
mineralization is hosted in numerous shear zones within the Atacama Fault Zone. Las Posadas zone has
been traced for over 2,400 m along strike, with copper oxide mineralization to an average depth of 150 m.

From 1995 through 1998 a series of companies including Noranda, Tiger Ltd. (the Canadian subsidiary of
Australian miner Augusta Metals Inc.) and SMP S.A. optioned the property from Rio Bravo and Andal
and conducted exploration, principally RC drilling. At the end, the only exposure of the deposit, Cerro

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Rodado, had been mapped and trenched and approximately 6,500 m of RC and 190 m of diamond core
drilling had been done. The mineralization at Las Posadas remained open to the northeast, southwest,
and at depth.

Global Hunters 2005 Phase I exploration program remapped Cerro Rodado and drilled an additional
2,837 m of RC drilling and 1,047.5 m of diamond drilling targeted at confirming certain previous drill
results by earlier explorers and expanding and infilling the known mineralization.

Micon used this database and Global Hunters acquired knowledge of, and geological model for, the
Deposit to estimate a mineral resource for the Deposit after a due diligence review. The mineral resource
estimate was prepared using an electronic block model and Gemcom software. Three geological domains
were defined for the mineralized shear zone, oxidized, mixed (transition) and unoxidized, based on the
degree of oxidation of copper sulphide minerals. The majority of the data fell within the oxidized domain.
Data in sufficient quantities to model variograms was found only in this domain. Hence, grade
interpolation was performed by Ordinary Kriging there. The remainder of the model was interpolated by
the inverse distance squared (ID2) weighting technique using search ellipse dimensions determined from
the variography in the oxide domain. A summary of the mineral resources for the Deposit, as determined
by Micon, are set out below. The estimate was current as of April 16, 2006.

Las Posadas Mineral Resource Summary (Micon):

Base Case Mineral Resources: $1.61 /lb copper at a cutoff of 0.16% Soluble Copper (CuS):

Indicated 8,490,000 tonnes grading 0.614% CuS (0.73% Total Copper (CuT)) containing
114,900,000 pounds of soluble copper

Inferred 4,600,000 tonnes grading 0.489% CuS (0.561% CuT) containing 49,400,000 pounds of
soluble copper

All of the indicated resources fell within the oxidized domain while the inferred were found in both the
oxidized and mixed domains. No resources were found within the unoxidized domain.

Global Hunter drilled an additional 29 diamond drill holes totalling 9,038.45 m during the 2007 exploration
program. The primary objective for the Phase II program was to further define the resource and
economics of the Deposit. The Company planned to use the results of the 2007 Phase II program to
complete a revised NI 43-101 resource calculation, which is the basis for this report.

GeoVector Management Inc. (GeoVector) was contracted by Global Hunter to complete an updated
resource estimate for the Deposit and to prepare a technical report on it in compliance with the
requirements of NI 43-101. GeoVector has estimated a range of Indicated and Inferred resources at
various Total Copper (CuT) cut-off grades for an oxide and sulphide resource model. The Las Posadas
resource is reported at a 0.20% Total Cu cut-off grade.

Las Posadas Mineral Resources at a cut-off of 0.20% CuT (GeoVector):

Oxide Zone
Indicated: 23.2 Mt grading 0.59% CuT (0.36% CuS) containing 299.1 Mlb CuT including 184.0
Mlb CuS.

Inferred: 2.2 Mt grading 0.41% CuT (0.24% CuS) containing 19.4 Mlb CuT including 11.7 Mlb
CuS

Sulphide Zone
Indicated: 4.0 Mt grading 0.57% CuT containing 50.7 Mlb CuT.

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Inferred: 14.3 Mt grading 0.50% CuT containing 158.0 Mlb CuT.

The Las Posadas updated mineral resource estimate is based on 47 Reverse Circulation (RC) and 35
diamond drill holes (NQ) totaling 18,884 metres, with 8,596 assays. Holes were drilled by Global Hunter
and others in six drill campaigns conducted between 1994 and 2007. These 82 drill holes are spaced
primarily 50 to 100 metres apart along a strike length of approximately 1700 metres. The drill holes
primarily tested to a vertical depth of 150 to 200 metres, with a few holes testing to a vertical depth of 300
metres in the central parts of the deposit.

GeoVector completed a preliminary evaluation of the economic viability of the Las Posadas Deposit. In
order to do this, GeoVector made the assumption that open pit mining with processing by heap leaching
of soluble copper would be employed to exploit the resource. To optimise the Deposit, Gemcom Whittle
was used to identify the pit that will maximise the cash flow from the operation. The results of the Whittle
pit optimisation may also help target areas for future drilling.

The base case Whittle pit optimisation was completed at a copper price of $3.25/lb and a recovery rate of
80% of soluble copper. The copper price of $3.25/lb approximates the 3 year trailing average (2009-
2011). The recovery rate of 80% CuS is based on recent metallurgical test work completed by Global
Hunter. Pit design, and capital and operating costs were provided by Global Hunter and approved by
GeoVector.

Based on the resource model and inputs at the time of optimization, including a $3.25/lb copper price, it
was identified that 10.4 Mt at a grade of 0.575% CuS for a total of 105.2 Mlbs of CuS would be recovered
from an open pit. A strip ratio is in the order of 3.23 (~3:1). A mine life of 3.75 years is based on an
estimated mill rate of 8,500 tpd. The pit results in a discounted cash flow of $79.6 million. All of the
material within the pit fell within the oxidized domain, and approximately 94% of the material within the pit
is categorized as Indicated mineral resource.

As a test to the sensitivity of the economic viability of the Deposit to changing copper price, additional
Whittle pit runs were completed at copper prices of $3.00, $3.50 and $3.75. As is expected, an increase
in the copper price resulted in an increase in the mine life, a decrease in the strip ratio, and an increase in
pounds of soluble copper produced, as well as improved discounted cash flow and an improved internal
rate of return.

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INTRODUCTION
GeoVector Management Inc. (GeoVector) was contracted by Global Hunter Corp. (Global Hunter) to
complete an updated resource estimate for the Las Posadas Copper Deposit (Las Posadas) on Global
Hunters La Corona de Cobre Property (Property) near La Serena in Region IV, Chile, and to prepare a
technical report on it in compliance with the requirements of NI 43-101. The updated Indicated and
Inferred Mineral Resource was estimated by Allan Armitage, Ph.D., P. Geol., and Joe Campbell, BSc, P.
Geo., of GeoVector. Armitage and Campbell are independent Qualified Persons as defined by NI 43-101
and are responsible for the preparation of this report (Armitage and Campbell are referred to as the
authors).

This technical report will be used by Global Hunter in fulfillment of their continuous disclosure
requirements under Canadian securities laws, including National Instrument 43-101 Standards of
Disclosure for Mineral Projects (NI 43-101). This report is based upon publicly-available assessment
reports and unpublished reports and property data provided by Global Hunter, as supplemented by
publicly-available government maps and publications. Armitage has personally inspected the Las
th th
Posadas Property (Property) and drill core from the 11 to the 12 of June, 2012, accompanied by Brian
Meyer, P. Geol., a consulting Geologist for Global Hunter. Brian Meyer has knowledge of the Property.

RELIANCE ON OTHER EXPERTS


This report relies on information from reports prepared for Global Hunter which details surface and drill
results of the Property, as well as other reports on the Property. The Authors have reviewed this material
and believes that this data has been collected in a careful and conscientious manner and in accordance
with the standards set out in NI 43-101. When appropriate, the Authors have relied upon information
previously reported in historical reports, including text excerpts and direct reproduction of figure
information to illustrate discussions in the text.

Much of the background property and technical information for this report (Sections 4-13) has been
extracted from a 43-101 report completed by B. Terrence Hennessey, P.Geo. and Eugene Puritch,
P.Eng. (2006) for Global Hunter (filed on SEDAR). The 43-101 report describes the initial resource
estimate for Las Posadas. The majority of the information in that report comes from a review of technical
information for the Property generated from exploration activities on the Property between 1967 and 2005
including reverse circulation (RC) and diamond drilling in 2005 by Global Hunter.

This report documents an estimate of the size and grade of a mineral resource which occurs on the
Property, but the report does not indicate that an economic orebody is present. GeoVector has no opinion
on mineral resources or reserves for the Property which was previously calculated. As shown below,
GeoVectors sole opinion on this subject is that the drilling to date has defined, at a total copper (TCu)
cut-off grade (COG) of 0.2%:

Oxide Zone
a drill indicated resource of 23.2 Mt at a grade of 0.59% TCu and 0.36% soluble copper (CuS)
containing 300 million lbs of TCu and 184 million lbs of CuS

a drill inferred resource of 2.2 Mt at a grade of 0.41% TCu and 0.24% CuS containing 19.4 million
lbs of TCu and 11.7 million lbs of CuS

Sulphide Zone
a drill indicated resource of 4.0 Mt at a grade of 0.57% TCu containing 50.7 million lbs of TCu

a drill inferred resource of 14.3 Mt at a grade of 0.50% TCu containing 158.4 million lbs of TCu

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PROPERTY DESCRIPTION AND LOCATION
1.1 Property Location

La Corona de Cobre is located in the extreme northern portion of Region IV in Chile. The geographical
centre of the property is defined by the coordinates 29 30 south latitude and 71 05 west longitude. The
concessions are found near the village of El Trapiche or about 70 to 75 km north of the city of La Serena,
the Regions capital (Figure 1). The current property position covers an area of nearly 16,111 ha.

1.2 Property Description

La Corona de Cobre currently consists of some 148 mineral claims comprising 139 exploitation
concessions and nine exploration concessions (Figure 2). The exploration and exploitation concessions
comprising the current property package are set out in Table 1.

Global Hunter has acquired, through an option agreement, a 100% interest in the Property from Andal
and Rio Bravo, subject to a 2% NSR royalty reserved to the underlying optionors Andal and Rio Bravo.
The option agreement, dated March 2, 2005, allowed Global Hunter to acquire the interest for
consideration of:

Cash payments totalling $760,928 as follows:

$460,928 on or before December 31, 2005 as repayment of costs;


$90,000 on or before June 30, 2005; (Paid)
$100,000 on or before October 31, 2005; (Paid) and
$110,000 on or before February 28, 2006. (Paid)

Issuing 1,000,000 shares of the Company capital stock as follows:

350,000 shares of the Companys capital stock to be issued within ten days of TSX
acceptance of the Agreement (issued at a price of $0.35 per share);
325,000 shares on or before March 2, 2006 (issued at a price of $0.15 per share); and
325,000 shares on or before March 2, 2007 (issued at a price of $0.225 per share).

Incurring exploration and development expenditures totalling $3,500,000 as follows:

$500,000 on or before December 31, 2005; (incurred)


$1,000,000 on or before June 30, 2006 (incurred); and
$2,000,000 on or before June 30, 2007, amended to September 30th by amendment
agreement dated February 25th, 2007 (incurred).

Sale of mineral claims at La Corona de Cobre Project

On April 29, 2009, the Company entered into an option agreement with Minera Activa Uno SPA, the
terms of which provide Mineral Activa Uno SPA the option to acquire seven concessions currently held by
the Company at La Corona de Core Project in La Serena, Chile.

The consideration is US$300,000 which Mineria Activa Uno will pay to the Company as follows:

US$100,000 - during the first 20 days after this was entered into (May 19, 2009)
(received);
US$100,000 - during the first 18 months after this was entered into (October 29, 2010)
(received); and

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US$100,000 - during the first 24 months after this was entered into (April 29, 2011)
(received).

Figure 1 Location of the La Corona de Cobre Project

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Table 1 Property Concessions

Claim Name Owner Concessions Hectares


LA PODEROSA Global Hunter Exploration 100
LA PODEROSA II Global Hunter Exploration 100
SOLITARIA Global Hunter Exploration 100
MASCOTA TRES Global Hunter Exploration 100
GOLON CINCO Global Hunter Exploration 100
MASCOTA CUATRO Global Hunter Exploration 100
EL BRINDIS Global Hunter Exploration 100
REBECA DOS Global Hunter Exploration 100
ALEJANDRA 4 Global Hunter Exploration 200
ABISINIA 1/4 Global Hunter Exploitation 10
ABISINIA 3/6 Global Hunter Exploitation 20
ABISINIA 7/8 Global Hunter Exploitation 10
RONRICO 1/14 Global Hunter Exploitation 56
LA GRANJA 1/10 Global Hunter Exploitation 50
SOLE UNO 1/29 Global Hunter Exploitation 133
SOLE DOS 1/60 Global Hunter Exploitation 300
SOLITARIA SIETE 1/10 Global Hunter Exploitation 100
ESPUMA 1/20 Global Hunter Exploitation 100
ESPUMA 21/40 Global Hunter Exploitation 100
GALAN 41/50 Global Hunter Exploitation 34
GALAN 51/56 Global Hunter Exploitation 22
GOLONDRINA DOS 1/20 Global Hunter Exploitation 100
SOLITARIA DIEZ 1/20 Global Hunter Exploitation 100
GALAN 1/20 Global Hunter Exploitation 100
GOLONDRINA DOS 21/40 Global Hunter Exploitation 100
GOLONDRINA DOS 41/60 Global Hunter Exploitation 100
SOLITARIA DIEZ 21/40 Global Hunter Exploitation 100
PODEROSA UNO 1/20 Global Hunter Exploitation 100
GALAN 21/40 Global Hunter Exploitation 100
ALEJANDRA SEIS 21/40 Global Hunter Exploitation 100
ALEJANDRA SEIS 41/60 Global Hunter Exploitation 100
VARILLA 21/40 Global Hunter Exploitation 100
VARILLA 41/60 Global Hunter Exploitation 100
REBECA 1/20 Global Hunter Exploitation 76
GOLONDRINA SEIS 41/60 Global Hunter Exploitation 100
JARILLA UNO 1/20 Global Hunter Exploitation 100
VARILLA SEIS 1/20 Global Hunter Exploitation 96
JARILLA UNO 21/40 Global Hunter Exploitation 100
ALEJANDRA CUATRO 41/60 Global Hunter Exploitation 100
GATO NEGRO 1/20 Global Hunter Exploitation 100
GATO NEGRO 21/40 Global Hunter Exploitation 100
GOLONDRINA TRES 1/20 Global Hunter Exploitation 100
GOLONDRINA TRES 21/40 Global Hunter Exploitation 100
MASCOTA DOS 1/20 Global Hunter Exploitation 96
SANTA CAROLINA 1/17 Global Hunter Exploitation 84
SANTA CAROLINA 21/40 Global Hunter Exploitation 100

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Claim Name Owner Concessions Hectares
SANTA CAROLINA 41/60 Global Hunter Exploitation 100
VARILLA UNO 1/20 Global Hunter Exploitation 100
VARILLA UNO 21/40 Global Hunter Exploitation 100
VARILLA UNO 41/60 Global Hunter Exploitation 100
PODEROSA UNO 21/40 Global Hunter Exploitation 100
ALEJANDRA SEIS 1/20 Global Hunter Exploitation 100
UNDURRAGA 1/20 Global Hunter Exploitation 100
UNDURRAGA 21/40 Global Hunter Exploitation 100
UNDURRAGA 41/60 Global Hunter Exploitation 100
CASILLERO 1/20 Global Hunter Exploitation 100
CASILLERO 41/60 Global Hunter Exploitation 100
ALEJANDRA DOS 1/20 Global Hunter Exploitation 100
ALEJANDRA DOS 21/40 Global Hunter Exploitation 100
ALEJANDRA DOS 41/60 Global Hunter Exploitation 100
REBECA 21/40 Global Hunter Exploitation 100
GOLONDRINA CINCO 1/20 Global Hunter Exploitation 100
GOLONDRINA CINCO 21/40 Global Hunter Exploitation 100
GOLONDRINA CINCO 41/60 Global Hunter Exploitation 100
MASCOTA DOS 21/39 Global Hunter Exploitation 100
VARILLA 1/20 Global Hunter Exploitation 100
GALAN DOS 1/20 Global Hunter Exploitation 100
GALAN TRES 1/20 Global Hunter Exploitation 100
CORCHO 1/20 Global Hunter Exploitation 100
CORCHO 21/40 Global Hunter Exploitation 100
GOLONDRINA TRES 41/60 Global Hunter Exploitation 100
GOLONDRINA UNO 1/20 Global Hunter Exploitation 100
GOLONDRINA UNO 21/40 Global Hunter Exploitation 100
GOLONDRINA UNO 41/60 Global Hunter Exploitation 100
VARILLA DOS 1/20 Global Hunter Exploitation 100
VARILLA DOS 21/40 Global Hunter Exploitation 100
VARILLA DOS 41/60 Global Hunter Exploitation 100
PODEROSA 1/13 Global Hunter Exploitation 100
SANTA DIGNA 1/20 Global Hunter Exploitation 100
SANTA DIGNA 21/40 Global Hunter Exploitation 100
SANTA DIGNA 41/60 Global Hunter Exploitation 100
GOLON TRES 1/20 Global Hunter Exploitation 100
EL BRINDIS 1/20 Global Hunter Exploitation 100
ALEJANDRA CINCO 1/20 Global Hunter Exploitation 100
VARILLA SEIS 21/40 Global Hunter Exploitation 100
GOLONDRINA CUATRO 41/50 Global Hunter Exploitation 100
GOLONDRINA CUATRO 21/36 Global Hunter Exploitation 100
SOLITARIA NUEVE 1/10 Global Hunter Exploitation 100
SOLITARIA NUEVE 21/40 Global Hunter Exploitation 100
VARILLA CUATRO 1/18 Global Hunter Exploitation 100
ALEJANDRA CINCO 41/60 Global Hunter Exploitation 100
VARILLA CUATRO 21/34 Global Hunter Exploitation 100
VARILLA CUATRO 41/60 Global Hunter Exploitation 100
ALEJANDRA CINCO 21/40 Global Hunter Exploitation 100

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Claim Name Owner Concessions Hectares
PODEROSA CINCO 1/20 Global Hunter Exploitation 100
PODEROSA DOS 1/50 Global Hunter Exploitation 300
SOLE SIETE 1/20 Global Hunter Exploitation 100
CASILLERO 21/40 Global Hunter Exploitation 100
EL BRINDIS 21/40 Global Hunter Exploitation 100
LA RECONQUISTA 1/10 Global Hunter Exploitation 50
SOLITARIA SIETE 11/14 Global Hunter Exploitation 20
PONDERADA 1/60 Global Hunter Exploitation 300
GATO NEGRO 41/60 Global Hunter Exploitation 100
PODEROSA TRES 1/60 Global Hunter Exploitation 300
SOLE SIETE 1/2 Global Hunter Exploitation 4
ALEJANDRA CUATRO 21/40 Global Hunter Exploitation 100
SOLITARIA 1/20 Global Hunter Exploitation 100
GALAN CUATRO 1/20 Global Hunter Exploitation 100
GALAN CUATRO 21/40 Global Hunter Exploitation 100
GALAN CUATRO 41/60 Global Hunter Exploitation 100
GALAN DOS 21/40 Global Hunter Exploitation 100
GALAN DOS 41/60 Global Hunter Exploitation 100
GALAN TRES 21/40 Global Hunter Exploitation 100
VARILLA TRES 21/40 Global Hunter Exploitation 100
GALAN TRES 41/60 Global Hunter Exploitation 100
VARILLA TRES 1/20 Global Hunter Exploitation 100
PONDERADA DOS 1/60 Global Hunter Exploitation 300
GOLON 1/35 Global Hunter Exploitation 300
TAZON 1/60 Global Hunter Exploitation 300
CURA 1/60 Global Hunter Exploitation 300
GOLONDRINA SEIS 1/17 Global Hunter Exploitation 100
MASCOTA 1/25 Global Hunter Exploitation 125
LA RECOMPENSA 1/16 Global Hunter Exploitation 100
ALEJANDRA CUATRO 1/17 Global Hunter Exploitation 100
PODEROSA CUATRO 1/20 Global Hunter Exploitation 100
MASCOTA I 1/5 Global Hunter Exploitation 25
VARILLA CINCO 21/40 Global Hunter Exploitation 100
PODEROSA CUATRO 41/60 Global Hunter Exploitation 100
MASCOTA UNO 1/60 Global Hunter Exploitation 300
GOLON DOS 1/20 Global Hunter Exploitation 100
GOLON DOS 21/40 Global Hunter Exploitation 100
GOLON DOS 41/60 Global Hunter Exploitation 100
JARILLA UNO 41/60 Global Hunter Exploitation 100
PODEROSA 41/60 Global Hunter Exploitation 100
SANTA HELENA 1/20 Global Hunter Exploitation 100
SANTA HELENA 21/40 Global Hunter Exploitation 100
PONDERADA DOS 1/20 Global Hunter Exploitation 100
PONDERADA UNO 1/20 Global Hunter Exploitation 100
PONDERADA UNO 21/40 Global Hunter Exploitation 100
BACARDI 1/60 Global Hunter Exploitation 300
GOLON UNO 1/20 Global Hunter Exploitation 100
GOLON UNO 21/40 Global Hunter Exploitation 100

12
Claim Name Owner Concessions Hectares
GOLON UNO 41/60 Global Hunter Exploitation 100
PONDERADA UNO 41/60 Global Hunter Exploitation 100
VARILLA CINCO 1/20 Global Hunter Exploitation 100
PODEROSA CUATRO 21/40 Global Hunter Exploitation 100
GOLONDRINA CUATRO 1/10 Global Hunter Exploitation 100
SOLITARIA ONCE 21/40 Global Hunter Exploitation 100
Total: 16,111

13
Figure 2 Exploitation and Exploration Concessions

14
1.3 Land Tenure in Chile

Chiles current mining and land tenure policies were incorporated into law in 1982 and amended in 1983
with regulations promulgated in 1986. They were established to secure the property rights of both
domestic and foreign investors and to stimulate development of mining in Chile. The state owns all
mineral resources, but exploration and exploitation of these resources is permitted through mining
concessions which are granted by the courts according to the law.

There are two types of concessions, exploration (Concesin de Exploracin) and exploitation (Concesin
de Explotacin). Concessions are defined by UTM coordinates representing the centre point of the
concession and its dimensions (in metres) in N-S and E-W directions.

Exploration Concessions

Exploration concessions grant the concession holder the right to explore the ground for a two year period
and can be renewed for an additional two year period provided, however, that the size is reduced by 50%.
The minimum size of a concession is 100 ha and the maximum is 5,000 ha. Yearly title maintenance
payments average about US$800 per concession per year. However, if the annual taxes are not paid the
concessions can remain in good standing until the publishing of an auction list of concessions in tax
arrears. This list of concessions with unpaid taxes is usually published on or about July 1st. Once
published, the taxes on these concessions are doubled.

Exploration concessions are allowed to overlap with pre-existing ones; however, the underlying
concessions always take precedence provided they are properly maintained. This makes it advisable for
a company to have an employee or consultant reviewing bulletins to ensure that the companys
concessions remain in good standing.

The process for securing rights to an exploration concession is as follows:

A petition (called a Pedimento) requesting an exploration concession is first submitted to the Mining Court
in the local jurisdiction. Once accepted, the court sends the application to the National Geological and
Mining Service (Sernageomin), which must then issue the Mining Court a technical report approving or
rejecting the concession application on technical grounds. If the report is positive, the Pedimento is
presented to the Mining Court and it receives an ROL number and presentation date. If the concession
application is rejected, the person making the original application has eight days to correct the
application.

Within 30 days of the presentation date the concession holder must pay the required application fee. The
Mining Court will order that the ized copies of the Pedimento be inscribed and published. Once this order
is received there is a 30 day period within which the concession will be inscribed by the mining registrar
for the community in which the concession is situated and the inscription is published in the Official
Mining Bulletin in the Province in which the concession is located.

Upon completion of the inscription and publication, and payment of the application fee (required within 90
days of the Courts order to have the concession inscribed and published), the concession holder must
solicit the Sentencia Constitutiva. This solicitation is a written document accompanied by a plan depicting
the location and dimensions of the concession, which is submitted to the Mining Court. Before filing the
Solicitud de Sentencia Constitutiva the concession holder must also pay the Patente Proporcional. The
Patente Proporcional is the annual concession tax adjusted for the number of days remaining in the
current financial year which ends the last day of February.

When received by the Mining Court, the solicitation passes once more to Sernageomin which then has 60
days to prepare a report approving or rejecting the concession on technical grounds. If rejected the
concession holder then has another eight days to correct imperfections or omissions. Any interested

15
parties have 30 days within which to register their objections to the concession (such might be the case if
the new concession covered a pre-existing concession).

Once the Sentencia Constitutiva is granted by the Mining Court, the concession holder must publish
extracts from it in the Official Mining Bulletin on the first business day of any month within 120 days of the
date of the Sentencia being granted. Following publication, the concession holder must deliver to
Sernageomin the original plan of the concession and a copy of the Sentencia Constitutiva. Having
completed all of these steps within 120 days of granting Sentencia Constitutiva, the concession holder will
receive the constancia, which makes the inscription official.

Through this process a Pedimento evolves into a Concesin de Exploracin. Exploration concessions are
sometimes colloquially known as Pedimentos in Chile.

Exploitation Concessions

Exploitation concessions grant the holder the right to extract minerals from a concession. They last
indefinitely as long as the annual license fees are paid. An exploration concession may be converted to
an exploitation concession at any time during its two year life or an exploitation concession may be
applied for directly.
The process for acquiring exploitation concessions is as follows:

A declaration (called a Manifestacin) requesting an exploitation concession is first submitted to the


Mining Court. The Sentencia Constitutiva is granted following the presentation of the Manifestacin to the
Mining Court, payment of the application fee, inscription and publication of the Manifestacin (as
described above for Pedimentos) payment of the annual license fees and receipt of a technical report
from Sernageomin approving the Manifestacin.

Once the Manifestacin has been inscribed and published, the concession holder has a period of
between 200 and 220 days within which to request that the concessions be surveyed (a Solicitud de
Mensura). Upon that request, the annual license fee must be paid. After publication of the ized copy of
the Solicitud de Mensura, passage of a 30-day period of opposition, from publication, and certification by
the judge that no parties are opposed to the Mensura, the official survey can proceed.

Once the survey is completed the concession holder must submit documents and maps supporting the
survey (Actas y Planos), which are presented to Sernageomin for technical review. This must be done
within 15 months of the date of the original presentations of the Manifestacin. Following receipt of a
report by Sernageomin approving the Mensura, the Sentencia Constitutiva is issued, which is approved
by the judge of the Actas y Planos. The concession holder then has 120 days to have the Sentencia and
other relevant documents published in the Official Mining Bulletin. The right to mine does not exist until
the Mensura is granted and approved.

Exploitation concessions are sometimes known colloquially in Chile as Manifestacines or Mensuras.

Title to exploration concessions is perfected in a shorter period of time and the annual license fees are
1/5 the cost of those for exploitation concessions (US$1.65 per hectare for exploration concessions
versus US$8.27 per hectare for exploitation concessions). However, exploration concessions are
temporary concessions and are not as secure as exploitation concessions.

The current annual fees for maintaining title to La Corona de Cobre total approximately US$126,000. In
addition, total annual administration costs for the entire property are approximately US$31,300 per year.
There are no known environmental liabilities associated with the Property.

16
ACCESS, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
Access to the Property is very good. The Pan-American Highway passes through the western portion of
the Property and comes within less than 1 km of the Deposit (Figure 2). Numerous small roads and trails
provide access to the rest of the Property. Daily commercial passenger jet service is available from
Chiles capital, Santiago, to the airport in La Serena.

The Property is located in the Norte Chico geographical region of Chile. This region extends from the Ro
Copiap, at 27 22 south latitude, to about 32 south latitude, or just north of Santiago. Elevations on the
property range from about 250 m to over 1,100 m above sea level (asl). The Deposit deposit sits at an
elevation of 250 to 300 metres asl.

It is a semi-arid region that receives an average of 25 mm of rain during each of the three winter months.
Trace amounts of precipitation occur during the rest of the year. The area is occasionally subjected to
droughts. Temperatures are moderate, with an average of 18.5 C during the summer and about 12 C
during the winter at sea level. Local rivers, fed by winter rains and snow melt from the Andes, flows year
round with seasonal variations. Groundwater is abundant on the north end of the property in the gravels
in Quebrada Los Choros.

A small village called El Trapiche lies on the Pan-American Highway at the northern edge of the claim
group. Global Hunter rents a small ranch house here, called the Parcela. It is used as a field office,
logging area and sample/core storage facility. The field office is approximately 3 km from Las Posadas.

The nearest tidewater is found at the mouth of Quebrada Los Choros, about 25 km to the west. An active
deep-water port is located at Coquimbo, about 10 km south of La Serena. High voltage electric
transmission lines cross the property very close to the Deposit.

HISTORY
The exploration history for the Property presented below was extracted from the Technical Report entitled
A Mineral Resource Estimate for the Las Posadas Deposit, La Corona De Cobre Project, Near La
Serena, Region IV, Chile, which was written in support of Global Hunters original mineral resource
estimate for the Deposit (Hennessey and Puritch, 2006) and filed on SEDAR.

1.4 History of Exploration

From the very recent past, and extending back for an unknown period of time, several small-scale illegal
artisanal miners have operated on the Property at the Deposit and other copper occurrences in the
immediate vicinity. It is believed that the ores from these operations were processed, at least in part, at
facilities operated by ENAMI. Small-scale artisanal mining continues in the region today.

Numerous groups have evaluated and/or conducted exploration on and around the current Property,
much of it concentrated on the Deposit area. Surface mapping and geochemical sampling have been
carried out over a number of mineralized shear zones. The Deposit shear zone has been the main focus
of past exploration including comprehensive geophysical surveys, limited geological mapping and
geochemical surveys, and drilling. There is a general lack of outcrop on the property, although the north
end of the Deposit does outcrop.

A chronological summary of the known exploration history for the Property is set out below. Details of the
exploration and drill results are presented in Sections 9 and 10 of this report.

17
1.4.1 1967 - 1968

Empresa Nacional de Minera (ENAMI) performed metallurgical testwork for the recovery of copper from
copper oxide mineralization taken from an outcrop and old workings 60 m deep in Cerro Rodado (the
small hill and surface showing at Las Posadas).

ENAMI is a Chilean government-owned corporation whose goal is to promote the development of small
and medium-scale mining, by providing the necessary services to facilitate their access to the refined
metals market, under competitive conditions. To meet its objective, ENAMI focuses its operations on the
priority management of the following three instruments: Mining Development, Ore Processing, and
Smelters and Refinery.

1.4.2 1991 1994 Exploration

Exploraciones Ro Bravo, an affiliate of Andal, conducted a program of exploration consisting of


trenching across the mineralized shear zone at Cerro Rodado, diamond drilling (1 hole, GRA-001),
prospecting, mapping and sampling of numerous mineralized occurrences over much of the current
project area and the consolidation and acquisition of additional concessions.

1.4.3 1995 1997 Exploration

Noranda Exploration optioned from Andal a 2,000 ha package of concessions covering the Deposit and
targeted its exploration efforts on copper oxide mineralization. Norandas program consisted of:

Limited surface geochemical sampling several kilometres south of the Las Posadas zone.
Resampling of old trenches.
174 line-km of aero magnetic survey flown on 150-m line spacing.
56 line-km of ground magnetometer survey with line spacing of 200 m to 50 m.
16 line-km of dipole-dipole IP survey.
16 reverse circulation (RC) drill holes (LP-001 to LP-016) totalling 2,993 m in two phases.
Interim report and resource estimate.
Follow-up 7-hole RC drill program (LP-017 to LP-023) totalling 1,187 m.

1.4.4 1997 Exploration

O. Vicencio Consultants, on behalf of Andal, performed a pre-feasibility study for an open pit scenario on
a leachable copper oxide mineralized body with SX-EW recovery of copper.

1.4.5 1997 Exploration

Tiger Ltd. (Tiger) and Golden Bear Minerals (Golden Bear), Canadian subsidiaries of Augusta Metals Inc.
(Augusta) of Melbourne, Australia, optioned an 8,000 ha package and conducted an exploration program
consisting of:

5 RC drill holes (LP-024 to LP-028).


Preliminary metallurgical testing on RC chip samples.
Scoping studies by two independent engineering firms.
Rock geochemical surveys of other parts of the property.

1.4.6 1998 Exploration

Sociedad Minera Pudahuel S.A. (SMP), a Chilean company, optioned a total of 13,500 ha in August
1998, including the nearby Cerro Borracho, Los Tbanos and El Tazn prospects, and conducted an
exploration program consisting of:

18
10 RC drill holes.
A topographic survey of the entire area including re-surveying of all drill collars.
A brief mapping program over the entire property;

1.4.7 2000 Exploration

Latin American Copper PLC (LAC) optioned La Corona de Cobre, which totalled 16,000 ha at the time
(including an expanded area over Cerro Borracho and on the south and west towards the Santa Dominga
copper-gold mining operation). LAC conducted a surface evaluation including mapping and geochemistry
at the Cerro Borracho prospect, a potential IOCG target. LAC was unable to finance a drill program at Las
Posadas and returned the property to Andal in February, 2002.

1.4.8 2005
The project was acquired by Global Hunter. Exploration work completed by Global Hunter is summarized
below in Sections 9 and 10.

1.5 Historical Resource Estimates

Several of the past explorers of the Property including Noranda, Andale, Augusta Metals Inc. and
Sociedad Minera Pudahuel S.A. (SMP) have prepared mineral resource estimates for the Deposit. These
historical estimates do not comply with the current CIM Standards on Mineral Resources and Reserves -
Definitions and Guidelines, and are reported only as an historical reference. As a result, the historical
estimates should not be relied upon. More recently a 43-101 compliant resource estimate was completed
for Global Hunter in 2005.

The historical resource estimates as well as the more recent 43-101 compliant resource estimate are
presented in the Technical Report entitled A Mineral Resource Estimate for the Las Posadas Deposit, La
Corona De Cobre Project, Near La Serena, Region IV, Chile, which was written in support of Global
Hunters original mineral resource estimate for the Deposit (Hennessey and Puritch, 2006) and filed on
SEDAR. The historical and recent resource estimates are summarized below.

1.5.1 Noranda Historic Resource Estimate

Noranda prepared an internal interim report in July, 1996 which used the results from its initial 16-hole RC
drill program, the one prior diamond drill hole, and the trench samples to prepare a preliminary, drill
indicated geological tonnage estimate for the oxide and sulphide portions of the Las Posadas hosting
structure, using a cut-off grade of 0.3% Cu. Noranda compared the geologic setting to Anglo-Americans
Manto Verde deposit (Savell, 1996) an iron oxide copper gold (IOCG or Olympic Dam) style deposit and
this likely affected Norandas interpretation. Table 6.1 below summarizes the results of this estimate. No
confidence categories are reported for the resource.

Table 2 Noranda Tonnage Estimate

Category Tonnes Cu Tonnes Cu (%) Au (ppb)


Oxide 10,283,516 0.94 98
Sulphide 14,585,063 1.11 109

The resource estimate performed by Noranda was a sectional polygonal one and used the following
assumptions:

Specific gravity, oxide ore: 2.5.


Specific gravity, sulphide ore: 3.0.

19
Blocks extend halfway between sections.
Grade within block = grade of drill section within block.
Oxide grade = sulphide grade within each block
Width of structure at hole LP-016 is 20 metres. Here the hole was drilled vertically due to
excessive caving encountered in previous attempt at angle hole (LP-015).
Pit-wall slope of 55.
Stripping ratio includes overburden and waste rock.
Approximate cut-off of 0.3 % Cu.
Gold values for GRA-001 (not analyzed) were assumed equal to overlying trench (TR-2).

A total of nine drill sections were used over a then reported strike length of 1,300 m for the deposit. The
distance between sections 5 and 6 and sections 6 and 7 was 100 m. The distance between the other
sections was 200 m.

1.5.2 Andale

O. Vicencio Consultants, on behalf of Andal, performed a pre-feasibility study for the Deposit. For this
study a resource of 10,000,000 tonnes at a grade of 0.82% Cu (soluble) was estimated. The methodology
used to estimate the mineral resource is not known and no confidence categories are known to have
been published for it.

Two scenarios were presented for an open pit, leachable copper oxide mineralized body with an SXEW
plant at rates of 2,000 tonnes per day (tpd) and 3,500 tpd (Bogdanic, 1998).

Total capital costs of US$13 million were estimated for open pit mining at 2,000 tpd, including overburden
stripping, and using a copper price of US$0.85 per pound. Total annual revenues were projected to be
US$16.4 million, total costs US$6.8 million and cash flow US$9.6 million, resulting in a payback period of
1.3 years and a mine life of 6.5 years.

Total capital costs of US$20.5 million were estimated for open pit mining at 3,500 tpd, including
overburden stripping, and using a copper price of US$0.85 per pound. Total annual revenues were
projected to be US$18.5 million, total costs US$7.4 million and cash flow US$11.1 million, resulting in a
payback period of 1.8 years, and a mine life of 8.0 years.

1.5.3 Augusta Metals Inc.

Augusta subsidiary Golden Bear retained Computer Aided Geoscience Pty Limited (CAG) of Melbourne,
Australia in June 1997 (Leahey, 1997) to create a geologic model for the Las Posadas Project based on
data provided by a joint venture partner. The model was updated following completion of 824 m of drilling
by Tiger. Leahys resource methodology and results are summarized below.

CAG reported the following table of resources at cut-off grades between 0% and 1% Cu (Table 3). Some
discussion is made of the relationship between total copper and soluble copper assays in the database. It
was noted that comparison of acid soluble and total copper assays suggests an average recovery factor
of 68%, varying from 36 to 98%. Forty percent of the samples tested have recoveries in excess of 75%.
There is no obvious association of recovery with sample grade.

Although it is not stated explicitly, it appears clear from the wording in the text and the similar grades in
the oxide and sulphide zones that total copper results are being presented in Table 3.

20
Table 3 Augusta Resource Summary by Cut-off Grade.

Cut-off Oxide Sulphide Total


Cu (%) Tonnes (millions) Cu (%) Tonnes (millions) Cu (%) Tonnes (millions) Cu (%)
1.0 2.9 1.9 1.8 2.4 4.7 2.08
0.9 3.3 1.8 2.4 2.0 5.7 1.87
0.8 3.9 1.6 3.2 1.7 7.1 1.67
0.7 4.6 1.5 3.8 1.6 8.4 1.54
0.6 4.6 1.4 4.6 1.4 10.2 1.38
0.5 6.8 1.2 5.7 1.2 12.5 1.22
0.4 8.6 1.0 7.3 1.1 15.9 1.06
0.3 11.5 0.9 9.5 0.9 21.0 0.88
0.2 15.5 0.7 12.5 0.8 28.0 0.73
0.1 22.2 0.5 17.0 0.6 39.2 0.56
0.0 23.6 0.5 17.6 0.6 41.2 0.54

The Geological Resource for the Deposit, at a zero cut-off grade was determined to be 41 million tonnes
grading 0.5% Cu of which 57% was within the oxide zone. While the text of the CAG report makes it clear
that separate search ellipses for measured, indicated and inferred resources were determined, CAG
reported only a series of total resources at different cut-offs. No summation of the individual mineral
resource categories was presented.

CAG performed the resource estimate from a database provided by Golden Bear. No validation was
completed on this dataset. The estimate was performed using a computerized block model and the
MicroMODEL software, a Geographical Modeling and Mine Planning System developed by Pincock, Allen
& Holt Inc. and further enhanced by CAG. The system uses standard block modeling techniques to
represent the users interpretation of the real world.

A topographic model was obtained from broad-spaced topographic contours at 20 m intervals and drill
hole collar elevations by interpolating onto a 10 m by 5 m mesh sized to match the extent of the modeled
area.

A geological model was developed from 16 drill-hole sections displaying sample copper and gold grades
(where available). Assay zones, corresponding to mineralized shears, were identified on the basis of
copper assay runs. A run was defined as more than one sample with 3 to 4 times the local background,
general corresponding to statistical cut-off of 0.1% Cu. Internal waste was included in the run if less than
three samples.

An interpretation of the distribution and continuity of assay zones was completed for each section,
separating oxide material from sulphide material based on drill-hole logs and the mineralized shear zones
were digitized on section, then flipped to plan bench levels and reinterpreted using AutoCAD. The plan
views were exported to MicroMODEL to form the rock model. The sample database was manually coded
for shear and host rock using the drill-hole intercepts identified on section.

CAG calculated both indicator and log variograms but found the former to be better defined with low
nugget effects and ranges of 150 m, 100 m and 10 m in each direction respectively. Log variograms were
not well defined due to the paucity of closed spaced data.

A copper grade model was calculated using standard modeling techniques and parameters. Three
models were generated (I, II and III) for the resource classification levels of measured, indicated and
inferred. A combined model was then created as an overlay of the category models such that for each

21
block, a category I grade, if present, was used in preference to a category II grade, and a category II
grade in preference to a category III grade. Maximum search distances of 75 m, 125 m and 175 m (see
Table 4) were utilized for category I, II and III models respectively. Category I and II grade interpolation
was performed using inverse distance squared (ID2) interpolation along with a maximum of 3 samples
per sector and a minimum of 2 data points for each block. Category III grade interpolation was done using
log kriging with kriging parameters based on the results of the log variography (nugget effect of 0.15, a sill
of 0.41, and a range of 150 m).

Table 4 CAG modeling parameters.

Parameter Value
Interpolation Radii Measured 75 m
Interpolation Radii Indicated 125 m
Interpolation Radii Inferred 175 m
Ellipsoid Dimension (Strike * Dip * X-Dip) 150 m * 100 m * 10 m
Ellipsoid Orientation (Strike/Plunge/Dip) 025 / 0 / 70

A density of 2.7 t/m was used for mineralization and host rock, and 2.2 t/m for the overlying gravels.

Reserve Potential

In order to determine the reserve potential for this resource CAG prepared a preliminary pit design using
floating cone techniques and operating costs and mining parameters provided by Great Bear (Table 5).
According to CAG the Reserve Potential does not conform to JORC requirements in that:

It includes some material classified as Inferred Resource.


It includes no allowance for ore dilution and loss.
It utilizes average figures for bulk density which have not been confirmed by testwork.
It utilizes industry average parameters for the mine design which have not been optimized to
the Las Posadas project.
It is not a true mine design as it does not include haul roads.

Table 5 CAG Pit Parameters.

Parameter Unit Value


Mining Costs $US/t 2.00
Processing Costs $US/t ore 13.45
General and Administration $US/t ore 1.20
Metallurgical Recovery % 0.85
Metal Price $US/lb 0.95
Cut-off Grades
Internal %
External %
Density t/m3 2.70
Pit Slopes degrees 60

CAG determined that the potential reserve contained within the design totals 3.2 million tonnes at 1.70%
Cu, with a waste:ore ratio of 3:4:1 (excluding haul roads). The reserve is contained within two pits, North
pit (134,000 tonnes grading 3.7% Cu) and South pit (3.06 million tonnes grading 1.6% Cu).

22
1.5.4 Sociedad Minera Pudahuel S.A. (SMP)

Following its 10 hole, 1,444.5 m RC drill program and field exploration, SMP performed a mineral
resource estimate at Las Posadas. That resource estimated is set out in Table 6 below (Bogdanic, 1998).

Table 6 SMP Resource Summary.

Mineralization Indicated Resources Inferred Resources (tonnes) Cu Grade


Type (tonnes) (%)
Oxide 4,334,519 0.63
12,685,000 0.6 1.2
Sulphide 445,123 1.54
10,575,000 1.5 2.0
Total 4,779,642 23,260,000 0.6 2.0

For this estimate SMP organized all available geological and assay information into a computerized
database. From this 36 cross sections, spaced every 50 m, were generated. Data from each section 22
was projected up to 25 m north and south for interpretation of a 3D geological model of the mineralized
deposit. For purposes of the resource estimate a cut-off grade of 0.2% was used. The 36 sections were
oriented facing about 115 and arranged along approximately 1,800 m of deposit strike length.

DATAMINE software was used to create the 3D model. A block model using block dimensions of 1 m high
by 1 m wide by 50 m long (25 m north and south of each section profile) was created. Only blocks located
within the interpreted mineralized body were considered. Grade interpolation of the model was performed
using the ID2 method. An average density of 2.8 was used due to the large amount of iron contained in
the mineralized structures.

Indicated Geological Resources were defined using data from areas with a drill hole spacing of 50 m
or less. The Inferred category was interpolated using wider spaced data. The latter was reported as
ranges of copper grades in order to indicate that, although there is a relative lack of data in this part of the
resource, the profiles demonstrate geological continuity of the mineralized structure through these zones
(Bogdanic, 1998).

The sections generated indicate that the mineralization remains open to the northeast and the southwest,
as well as at depth.

1.5.5 Global Hunter 2005 Resource Estimate

Global Hunters 2005 exploration program remapped Cerro Rodado and drilled an additional 2,837 m of
RC drilling and 1,047.5 m of diamond drilling targeted at confirming certain previous drill results by earlier
explorers and expanding and infilling the known mineralization.

Micon used this database and Global Hunters acquired knowledge of, and geological model for, the
Deposit to estimate a mineral resource for the Deposit after a due diligence review (Hennessey and
Puritch, 2006). The mineral resource estimate was prepared using an electronic block model and
Gemcom software. Three geological domains were defined for the mineralized shear zone, oxidized,
mixed (transition) and unoxidized, based on the degree of oxidation of copper sulphide minerals. The
majority of the data fell within the oxidized domain. Data in sufficient quantities to model variograms was
found only in this domain. Hence, grade interpolation was performed by Ordinary Kriging there. The
remainder of the model was interpolated by the inverse distance squared (ID2) weighting technique using
search ellipse dimensions determined from the variography in the oxide domain. A summary of the

23
mineral resources for the Deposit, as determined by Micon, are set out below. The estimate was current
as of April 16, 2006.

Las Posadas Mineral Resource Summary:

Base Case Mineral Resources: $1.61 /lb copper at a cutoff of 0.16% CuS:

Indicated 8,490,000 tonnes grading 0.614% CuS (0.73% CuT) containing 114,900,000 pounds of
soluble copper (CuS)

Inferred 4,600,000 tonnes grading 0.489% CuS (0.561% CuT) containing 49,400,000 pounds of
soluble copper

All of the indicated resources fell within the oxidized domain while the inferred were found in both the
oxidized and mixed domains. No resources were found within the unoxidized domain.

Micon has used a cut-off grade of 0.16% CuS for the reporting of the mineral resources at the Las
Posadas deposit. This cut-off grade was based upon a simple review of the deposit geometry, local
topography and the assumption that open pit mining with processing by heap leaching would be
employed to exploit the resource. A 0.16% CuS cut-off would represent US$5.68 per tonne contained
soluble copper (at a price of US$1.61/lb, the two-year trailing average price at the time of estimation) and,
at reasonable heap leach type recoveries of 80% of soluble copper, should render enough cash flow to
approximately cover the cash costs of production. The metallurgical and mining cost assumptions used
here need to be confirmed but are based on recent visits to similar operations and are considered
reasonable for the reporting of a mineral resource.

The block model was reported using a Whittle-optimized pit shell, the operating cost assumptions and the
0.16 % CuS cut-off to produce the mineral resources. The Whittle optimizing software develops a series
of increasing size pit shells over a range of copper prices and determines the maximum net present value
utilizing mining, processing and G&A costs. The optimum pit shell is evaluated for the tonnage and grade
of material that lies above the cash cost cut-off grade.

The following operating cost assumptions were used in the Whittle-determined cut-offs.

Overburden Mining Cost = $0.75/t


Rock Mining Cost = $1.25/t
Process & G/A Cost = $4.50/t
Plant throughput = 8,000 tpd
Plant Recovery = 80%
Cu Price = $1.61/lb (24 month trailing average price)
Pit Slopes = 50 degrees
Overburden Slopes = 30 degrees
Cut-off = ($4.50/tonne process & G/A)/($1.61/lb Cu x 22.046 lb/tonne x 80% recovery) =
0.16% CuS

In addition to the base case mineral resource the Company requested Micon to conduct further studies to
determine sensitivity to US$2.00, $2.50, and $3.00 copper prices. At Global Hunters request Micon
completed additional Whittle pits runs using US$2.00, US$2.50 and US$3.00 copper prices in order to
investigate how large the pit might get at these prices. While these prices seem extremely high relative to
the two-year average price used in the resource estimate, Micon has decided to report them as a result of
recent developments in the metals markets. On May 24, 2006 Yamana Gold Inc. announced a forward
sales program that has hedged 90 million pounds of copper at US$2.75 for delivery in 2008 with
additional long term call options at an average strike price of US$3.25.

The results of the sensitivity analysis by copper price are summarized below:

24
Sensitivity Analysis: $2.00 /lb copper at a cutoff of 0.13% CuS:

Indicated 11,980,000 tonnes grading 0.512% CuS (0.629% CuT) containing 135,200,000 pounds
of soluble copper

Inferred 6,850,000 tonnes grading 0.417% CuS (0.494% CuT) containing 62,800,000 pounds of
soluble copper

Sensitivity Analysis: $2.50 /lb copper at a cutoff of 0.10% CuS:

Indicated 14,250,000 tonnes grading 0.455% CuS (0.576% CuT) containing 143,000,000 pounds
of soluble copper

Inferred 9,290,000 tonnes grading 0.366% CuS (0.440% CuT) containing 74,200,000 pounds of
soluble copper

Sensitivity Analysis: $3.00 /lb copper at a cutoff of 0.085% CuS:

Indicated 15,490,000 tonnes grading 0.429% CuS (0.552% CuT) containing 146,500,000 pounds
of soluble copper

Inferred 10,470,000 tonnes grading 0.342% CuS (0.423% CuT) containing 79,000,000 pounds of
soluble copper.

GEOLOGICAL SETTING AND MINERALIZATION


The geological setting and mineralization for the Property presented below was extracted from the
Technical Report entitled A Mineral Resource Estimate for the Las Posadas Deposit, La Corona De
Cobre Project, Near La Serena, Region IV, Chile, which was written in support of Global Hunters original
mineral resource estimate for the Deposit (Hennessey and Puritch, 2006) and filed on SEDAR.

1.6 Regional Tectonic Setting

Northern and central Chile comprises a continental consuming plate margin beneath which oceanic crust
has been subducting eastward from an offshore oceanic trench since Jurassic time. The subduction has
resulted in the formation of magmatic volcanic and plutonic arcs that have migrated eastward with time
from the region of the present coast (Jurassic) to the high Cordillera (present day). This, in turn, has led to
the formation of three major tectonic features in Chile: the Coast Range; the Central Valley; and, the
Andean Cordillera.

The Coast Range between [latitude] 25 S and 35 S comprises Jurassic granitoids cutting Paleozoic
granitoids and metamorphic schists and phyllites as well as isolated areas of Jurassic andesitic volcanism
and marine sedimentary sequences. Toward the close of the Jurassic, marine regression resulted in
evaporite deposition to the east of the Coast Ranges. This regression resulted from uplift of the Coast
Range as horsts bounded by north-south and eastwest block faults that accompanied intrusion of Upper
Jurassic granitoid batholithic intrusions in a north-south belt near the present coast (Haynes, 1975). At the
close of the Jurassic, the sea transgressed northward over the area.

During the Early Cretaceous an extensive north-south magmatic volcanic-plutonic arc covered the
western part of northern Chile. North of 32 S, the western part of the arc was characterized by
continental sediments and volcanics, intruded by early and mid-Cretaceous Batholiths, whereas the
eastern part was filled with shallow marine sediments and volcanics.

25
The Central Valley is a depressed elongate structure that is developed from Arica (18 S) to the Taitao
Peninsula (47 S), except for a segment between Latitudes 27 S and 33 S where transverse ridges
connect the Coastal Ranges to the Andean Cordillera. The Central Valley proper appears to be a down-
faulted graben structure bounded by longitudinal normal and strike-slip faults. Between 27 S and 33 S,
faulting changes to east-facing (west dipping) north-south thrust faults present throughout the early
Cretaceous volcanic-sedimentary arc and marking the eastern boundary. Of interest to metallotectonics is
that the disappearance of the Central Valley is accompanied by two other tectonic features between 27 S
and 33 S:

1. A zone of east-west lineations between 28 S and 32 S, which continues into Argentina to at


least Longitude 65 W;

2. A non-volcanic gap in the north-south line of Pliocene-Quaternary volcanoes that marks the
Andean chain.

Of considerable importance is the recent recognition that this zone is marked by a shallow subducting
plate (flat slab segment of the Chilean Andes) that corresponds approximately (Latitudes 26 S to 31 S)
with the largest number of known epithermal precious metal deposits in Chile (the Miocene Maricunga
and El Indio belts of the Andean Cordillera). Furthermore, the zone between 26 S and 33 S was marked
in the Jurassic and Early Cretaceous by the Central Chile volcanic back-arc basin in the Andean
Cordillera, immediately east of the Early Cretaceous magmatic arc.

During the Late Cretaceous change of westward oceanic plate subduction, north of La Serena, from a
low-stress Marian-type to a high-stress Chilean-type, caused closure of the back-arc Central Chile basin
and its eastward thrust over the Aconcagua platform to form the Domeyko Proto Cordillera. No Late
Cretaceous granitoid intrusions are known in northern and central Chile. During the Upper Cretaceous
and Lower Tertiary, the rocks were folded and faulted, the Andean mobile belt uplifted, and an elongate
continental basin formed east of the Coast Range between 22 S to 31 S that was filled with Late
Cretaceous-Early tertiary continental volcanic rocks (tuffs, ash flows and ignimbrites) and fresh water
limestones and sediments of the Cerrillos Formation and the overlying Hornitos Formation (which
contains also evaporitic gypsum units). After folding and faulting (normal and reverse) along north or
north-northeast axes, the western part of the basin from 16 S to 30 S was intruded by a north-south belt
of Paleocene granitoid plutons (about 60 Ma), locally with sub-volcanic porphyry centres or breccia pipes
that are now often deeply eroded.

The Early Eocene is marked by deposition of silicic pyroclastic (ignimbrites) and rhyolitic flows from
isolated volcanic centres in the eastern part of the basin, such as Cerro de La Pinta (53 Ma) east of
Copiap and El Salvador (45-50 Ma). These silicic pyroclastic flows overlie aggradation gravels
(molasses) deposited by pediplanation of the deformed Hornitos Formation. This Eocene aggradation
surface is preserved only vestigially today as remnants on higher peaks in the pre-Cordillera. However,
this erosional surface may have removed many high-level Paleocene porphyritic or epithermal centres.

The Late Eocene-Early Oligocene was marked by granitoid magmatism to the east of the Paleocene belt,
which comprised plutonic stocks (about 40 Ma) in the Copiap area and a north-south belt of high-level
porphyritic sub-volcanic centres (41 - 28 Ma) in northern Chile along the Domeyko Fault Zone from 20 S,
to its possible extension to 27 S. These subvolcanic porphyries are the main porphyry copper belt of
northern Chile.

No Oligocene sedimentary rocks have been reported in central and northern Chile. During this period the
landscape was subdued by pediplanation. The resultant aggradation surface (termed, the Atacama
Pediplain, by Sillitoe, Mortimer and Clark, 1968), and its overlying thick deposits of aggradation molasse
gravels, is the dominant landform of the western flanks of the Andean Cordillera from Southern Peru to
the Rio Choapa (32 S). In the Coast Ranges it is only poorly developed. In the High Cordillera, it is
concealed by younger volcanic cones. The upper age of the gravels is probably Late Miocene as ages of
12 - 9 Ma have been obtained from ignimbrites overlying the gravels in the Atacama Province.

26
The Late Oligocene-Miocene geology of the High Cordillera of central and northern Chile has been the
subject of intensive investigations over the past 15 years, as this previously largely unexplored area
contains significant new Au-Ag-Cu epithermal deposits. This time period is characterized between 26 S
and 31 S by volcanism which began (33 - 17 Ma) with eruption of rhyolitic ignimbrites and andesitic flows
and breccias. At about 18 Ma horizontal crustal shortening (30 - 40 km) along high-angle reverse faults
allowed intrusion of sub-volcanic plutons and porphyry stocks (16.7 Ma) along north-south horst and
graben structures. This was followed by eruption of large, Middle Miocene andesite-dacite volcanic
complexes (16.6 - 10 Ma) which mark the last major volcanic event between 28 S and 31 S.

In the Late Miocene-Quaternary, the High Cordillera of Chile north of 27 S was marked by extensive
eruption of andesitic strato-volcanoes (including Ojos del Salado, at 6,885 m the highest volcano in the
world), termed the Central Volcanic Zone. Between 27 S and 33 S volcanoes are absent, probably due
to the shallow subduction zone in this region (Flat-Slab Segment), although Late Miocene sub-volcanic
porphyries (e.g., Bajo de la Alumbrera) are present to the east in Argentina at about Longitude 67 W).
South of 33 S, the belt of stratovolcanoes reappears as the Southern Volcanic Zone. Late Miocene (10 -
5 Ma) porphyry stocks (including three porphyry copper deposits) cluster around the 33 S transition.

The late Oligocene-Quaternary volcanism was deposited over Paleozoic to Jurassic sediments and
granitoid plutons of the Argentine platform upthrust in the Early tertiary as horsts. The Flat Slab Segment
is underlain principally by granitoids and silicic volcanics of late Paleozoic age, which may be related to
the prevalence of porphyry-epithermal gold deposits in this segment.

1.7 Regional Geology

The Property is located within the Coastal Belt of the Andean Cordillera (Figure 3). In this region of Chile
between Latitudes 28 30 S and 30 S, major volcanism and plutonism related to an active subduction
zone plate margin took place from early- to mid- Jurassic through mid-Cretaceous time. Extensive fault
systems (including the Atacama Fault System) and/or shear zones were active during this time.
Sedimentary sequences accumulated, in back-arc basins, immediately east of the arc terrane.

The early Cretaceous Bandurrias formation is a thick sequence of volcanic rocks, mainly basaltic
andesite, andesite, trachyandesites and dacites, continental volcaniclastic sediments, and tuffs,
containing intercalations of shallow marine limestones and sandstones. A complete facies transition into
shallow marine carbonates of the Chaarcillo Group is present. The Bandurrias Group is the terrestrial
time equivalent of the Chaarcillo Group.

Intrusive rocks consist of a mid- to late-Cretaceous granodiorite and monzodiorite batholith exposed over
large areas of the Coastal Cordillera. Most of these rocks are covered by up to 200 m or more of Miocene
to Quaternary pediment gravels. Locally, porphyritic stocks intruded the volcanic sequence and some are
likely contemporaneous with the volcanic sequence.

The Atacama Fault Zone, a major regional north-northeast trending fault system can be traced within the
Chilean Cordillera for over 1,000 km and passes through the La Corona de Cobre property. The fault
zone is approximately coincident with the Early Jurassic-Cretaceous volcanic-plutonic arc that formed
what is now the Coast Range. Movement along the Atacama Fault and its splays was mainly sinistral
transcurrent in the Jurassic and mainly normal in the Cretaceous (down to east). Researchers suggest a
close association between a number of significant copper deposits in the Coastal Belt, such as Mantos
Blancos, Mantos Verde, and El Soldado, and structures within the Atacama Fault Zone (Savell, 1996).

27
Figure 3 Regional Geology.

28
1.8 Property Geology

The eastern portion of the Property is generally underlain by early Cretaceous andesites of the
Bandurrias Formation with mid-Cretaceous granodiorites of the Coastal Batholith the predominant rock
type underlying the western portion of the property (Figure 4). The andesites are dark gray-green, fine-
grained, feldspar-phyric flows and tuffs which have been subjected to low grade greenschist
metamorphism and are cut by andesite to granodiorite dikes likely related to the granodiorite batholith.
These rocks are covered by Miocene to Quaternary Atacama gravels in linear basins that may represent
major faults and splays of the Atacama Fault Zone.

The Property is characterized by a swarm of shear zones at the intersection of the regional north-
northeast trending Atacama Fault Zone with at least one major east-trending fault. To the west of the
property is the Santa Dominga copper-gold mining camp, and to the southwest is the El Tofo iron ore
mine.

More than 15 shear zones have been recognized on the property. A central group of north-northwest to
north-northeast trending shears radiate outward from a large alteration zone of albitization and
sericitization, known as El Tazon. Eight kilometres to the east, a second group of shears fan outward in a
north to northwest direction from a large alteration zone of biotite, tourmaline and clay known as Cerro
Borracho (Figure 5).

Gangue minerals in the shear zones include quartz, chlorite, iron oxides, magnetite, epidote, tourmaline,
and sericite. Copper oxide minerals identified in the shear zones are chrysocolla, malachite, copper wad,
pitch, cuprite, and native copper. There is generally a narrow transition zone to primary sulfides. Lenses
of actinolite and apatite are frequently found on the hanging wall of mylonitized structures. Thin mafic
dikes accompany all of the major shears. In the southwest corner of the property, copper oxide
mineralization is associated with magnetite clots and veinlets.

29
Figure 4 Property Geology

30
Figure 5 Property alteration and shear zone map

31
1.9 Mineralization

1.10 Property

The mineralization occurring in the Project area is related to shear zones, veins, fractures, and
hydrothermal alteration zones. Shear zones are most typical and have strikes trending roughly N20E to
N45E and dips which range from -65 north to vertical. The shear zones are generally 50 to 150 m wide
with segments up to 400 m in width. The individual shear zones have been traced on surface from one-
half to as much as nine kilometres of strike length.

The mineralized portions of these structures are 3 to 100 m in width, and have strike lengths of up to four
kilometres. Veins within these zones contain an aggregate of quartz, chlorite, hematite, goethite,
magnetite, tourmaline, specularite and variable amounts of green copper oxides (atacamite, chrysocolla,
malachite) and non-green copper oxides (delafossite, wad, pitch). At depths below 150 m mineralization
consists of copper sulfides with the primary minerals consisting of chalcopyrite, some bornite, pyrite, and
minor quantities of gold. Alteration is significant in and around the mineralized zones with the host rocks
displaying extensive limonite-quartz-sericite alteration. Other typical alteration minerals include actinolite,
tourmaline, and hematite. Near intrusive rocks, alteration may be propylitic containing chlorite and
epidote. K-feldspar may be present locally.

The shear zone-hosted copper oxide/sulphide +/- gold deposit model has received the most attention on
the property to date, due to the amount of work performed on Las Posadas. As work progressed at Las
Posadas, regional exploration identified more than 15 additional shear zones along with more broad
zones of alteration with associated mineralization that are characteristic of IOCG exploration models.

The shear zone targets provide moderate to strong response on detailed magnetic and resistivity
geophysical surveys, although resistivity surveys will prove ineffective in areas of thick Quaternary gravel
accumulation.

1.11 Las Posadas

Mineralization at the Las Posadas shear zone is hosted in sheared mid-Cretaceous diorite associated
with the Coastal batholith near its contact with early Cretaceous andesite flows and tuffs. This particular
shear zone is oriented N25E, dips about 70 northwest and has been drill tested along 2,800 m of strike.
The structure has been traced on surface for approximately 100 m at Cerro Rodado. The shear zone
shows signs of early ductile deformation with later brittle deformation and an overprinting IOCG-style
mineralization.

At Las Posadas the shear zone ranges from about 20 m to 100 m in width while copper mineralization
grading more than 0.3% Cu ranges from about 10 m to 80 m in width. Copper +/- gold mineralization
within the shear zone contains quartz, chlorite, actinolite, hematite, goethite, calcite, tourmaline and
variable amounts of blue-green copper oxides and black to brown copper wad. Copper oxide
mineralization reaches depths of over 200 m, with an average depth of 150 m. Sulphide mineralization
below that is predominantly pyrite and chalcopyrite with minor bornite.

The unoxidized mineralization in the shear zone at Las Posadas is often chloritically altered and/or
flooded with iron oxides. It contains calcite, tourmaline, +/- specularite, magnetite, quartz, chalcopyrite
and pyrite. The pyrite to chalcopyrite ratio is roughly 0.25:1 so the system is very poor in sulphur and total
sulphide. The shear zone is ductile with a late brittle overprint.

In weathered mineralization the copper has not gone to the water table and precipitated as secondary
sulphides such as chalcocite or covellite. This is because of the low pyrite/chalcopyrite ratio (a situation
that typically requires 2:1 py/cpy or more).

32
At Las Posadas because the pyrite content is low, less acid is generated upon weathering and minor
calcite helps buffer that acid which is created. The iron rich nature of the host rocks is believed to help re-
precipitate the copper as oxides shortly after their release in weathering, all combining to help keep the
copper at high levels in the shear zone.

DEPOSIT TYPES
The deposit type description for the Property presented below was extracted from the Technical Report
entitled A Mineral Resource Estimate for the Las Posadas Deposit, La Corona De Cobre Project, Near La
Serena, Region IV, Chile, which was written in support of Global Hunters original mineral resource
estimate for the Deposit (Hennessey and Puritch, 2006) and filed on SEDAR, which in turn was extracted
from a Technical Report prepared for Global Hunter Corp, and ed by Laurence Sookochoff (2005).

The coastal region of northern Chile is endowed with major iron and copper, and lesser gold, silver and
zinc resources hosted by Early Jurassic to mid-Cretaceous rocks. Deposit types recognized to date in the
area in and around La Corona de Cobre property include massive magnetite, manto-style copper-(silver),
and iron oxide copper gold (IOCG) deposits [also known as Olympic Dam type deposits].

1.12 Magnetite deposits

Magnetite deposits of hydrothermal-replacement (skarn) origin occupy a belt nearly 700 km long between
latitudes 25 S and 31 S. Some smaller deposits occur as veins in diorite intrusions indicating a
magmatic-fluid source for the deposits in general. Several larger deposits occur as lens-like bodies within
andesitic volcanic rocks bounded by Early Cretaceous intrusions along the Atacama Fault Zone.

Arguments have been made to include the magnetite deposits as end-members of the Iron Oxide Copper
Gold (IOCG) type based on the abundance of early-stage magnetite in many IOCG deposits, the
occurrence of late-stage pyrite, the occurrence of chalcopyrite and gold near some massive magnetite
deposits, and the commonality of certain alteration and gangue minerals (Hitzman et al., 1992).

1.13 Manto-type copper deposits

Manto-type copper deposits occur in northern Chile as strata-bound disseminated bodies, as steep
hydrothermal breccias, and as veins and shears mostly within basaltic to andesitic arc volcanic
sequences. High grade parts of these deposits are characterized by hypogene chalcocite and bornite that
grade outwards and downwards through chalcopyrite to distal concentrations of pyrite.

High grade zones are controlled by permeability provided by faults and shears, steeply dipping
hydrothermal breccias, dike contacts, vesicular flow tops and flow breccias. Opinion is divided between
magmatic-hydrothermal and metamorphic fluid origins. Nevertheless, emplacement of plutonic complexes
causing fluid circulation appears instrumental in the formation of the manto-type copper deposits.

1.14 IOCG deposits

IOCG deposits and associated hydrothermal systems exhibit diverse styles of mineralization, alteration,
chemistry and morphology. A wide variety of rocks including felsic volcanics, breccias, tuffs, mafic flows,
clastic sedimentary rocks, granites, gabbros, and granodiorites play host to IOCG deposits. However, the
majority of IOCG deposits found to date are hosted within silicic to intermediate volcanic or plutonic rocks.

IOCG deposits form in a wide range of settings including hydrothermal breccias, tectonic breccias, veins
and vein complexes, and replacement bodies. Both the morphology and extent of mineralization and
alteration appear largely controlled by permeability along faults, shear zones, intrusive contacts and/or
permeable horizons. IOCG veins normally occur with mafic to intermediate dykes in the localizing faults.

33
IOCG deposits are characterized by abundant iron oxide (hematite and/or magnetite) with an association
of copper and gold. Principal ore minerals of IOCG deposits are hematite, low Ti-magnetite, bornite,
chalcopyrite, chalcocite, and pyrite. Principal gangue minerals are albite, K-feldspar, sericite, carbonate,
chlorite, quartz, amphibole, pyroxene, biotite, and apatite.

Alteration mineralogy in and around IOCG deposits vary with depth and provide evidence of an important
metasomatic component in the ore-forming process. In igneous hosted systems, well-developed zoning is
apparent with depth. Sodic alteration containing albitemagnetite +/- actinolite or chlorite and generally
lacking quartz is dominant in deeper portions of IOCG systems. Sodic alteration grades into potassium
feldspar or sericitic alteration assemblages. Quartz occurs both as veins and intergrown with other
alteration products. Occasionally the potassic zone is overlain by a zone of hydrolytic alteration
dominated by hematite-sericite, +/- carbonate, +/- chlorite, +/- quartz. Magnetite in massive or irregular
stockworks is confined to the sodic and potassic alteration zones. Hematite predominates in the higher
level sericitic alteration zone, but does not occur in the potassic zone.

The abundance of magnetite and other iron oxides in IOCG deposits produces large positive geophysical
anomalies and as a result is an important feature in designing exploration programs.

Most of the known IOCG deposits in northern Chile are hosted by arc volcanics and/or late Jurassic and
early Cretaceous plutons that intrude them. A few deposits occur in close proximity to these plutons near
the contact between late Jurassic-early Cretaceous volcanogenic sequences and marine carbonate
sequences. Dating of the IOCG deposits in northern Chile suggests they were generated in middle-late
Jurassic (170 - 150 Ma) and early Cretaceous (130 - 110 Ma) epochs.

Although only limited information is available, it appears all major deposits were generated during
regional extension or transtension and localized by ductile to brittle faults and fractures. Late Jurassic
deposits appear to have been generated in association with normal fault systems displaying east-side
down displacements. Early Cretaceous deposits however were localized by sinistral transtensional
structures within or related to the Atacama Fault Zone. Most controlling structures are steeply dipping.

Exploration criteria for IOCG deposits in Chile are best defined by Sillitoe, 2003:

The following highlights several geological features and relationships of possible use in IOCG exploration
in the Coastal Cordillera of the central Andes and, potentially, in similar extensional environments
elsewhere:

1. Middle-Late Jurassic and Early Cretaceous plutonic belts in the Coastal Cordillera are more
prospective for IOCG deposits than the younger magmatic arcs farther east. The latter coincide
with the principal porphyry copper belts of the central Andes thereby underlining an inverse
correlation between major IOCG deposits and porphyry copper deposits.

2. Large IOCG deposits seem more likely to form within major orogen-parallel, ductile to brittle fault
systems that underwent extension to transtension than in association with either minor or
compressional fault structures.

3. Receptive rock packages cut by granodiorite, diorite or more felsic plutons containing IOCG veins
or bordered by skarns may be especially prospective for large composite IOCG deposits. The
intrusive rocks are likely to display at least localized zones of weakly developed potassic-(calcic)
and or sodic-calcic alteration.

4. Fragmental volcanic or volcaniclastic host rocks characterized by high intrinsic and/or structurally
imposed permeability favour the formation of large composite IOCG deposits if suitable progenitor
intrusions and deeply penetrating feeder faults are present. High- or low-angle faults or shears
may create the structural permeability.

34
5. Relatively impermeable rocks, such as massive marbleized carbonate units, may be conducive to
fluid ponding and the consequent development of immediately subjacent IOCG deposits. Such
impermeable units may even still conceal IOCG deposits and, as at Candelaria, minor copper
skarn occurrences may represent hanging-wall leakage anomalies. The possible relationship of
calcic skarns to IOCG deposits should not be overlooked.

6. Broad, strongly developed contact-metamorphic (hornfels) and metasomatic (sodiccalcic and/or


potassic alteration) aureoles to gabbro-diorite or diorite intrusions are favourable indicators for
large composite IOCG deposits.

7. Intense and pervasive hydrothermal alteration is a prerequisite for large, composite IOCG
deposits, although the copper-gold mineralization may be accompanied by potassic, potassic-
calcic, or sodic-calcic assemblages.

8. Mineralized hydrothermal breccia and the predominance of specular hematite over magnetite
both suggest relatively shallow palaeodepths and hence, persistence of IOCG potential at depth.
By the same token, widespread development of magnetite and actinolite indicate fairly deep
levels in IOCG systems, with less likelihood of encountering economic copper-gold contents at
appreciable depths.

9. Some, but by no means all, composite IOCG deposits have irregularly and asymmetrically
developed pyrite haloes that may provide useful vectors to ore.

10. Coarsely crystalline calcite or ankerite veins may be either the tops or distal manifestations of
IOCG deposits.

11. Speculatively, extensive zones of barren feldspar-destructive alteration, including silicification,


sericite, pyrite, and even advanced argillic assemblages within volcanosedimentary sequences
may either conceal underlying IOCG deposits or intimate their presence nearby. In essence, such
zones are lithocaps, comparable to those well documented from the porphyry copper
environment (e.g. Sillitoe 2000).

12. The distal fringes and immediate surroundings of massive magnetite deposits may be prospective
for IOCG deposits if suitable structural preparation and volcanosedimentary host rocks are
present.

13. Notwithstanding point 12, districts dominated by massive magnetite bodies or veins may imply
relatively deep erosion levels unfavourable for major IOCG deposit preservation.

Based on the nature and extent of the geology and alteration present, the Corona de Cobre property
appears to be a classic environment for the occurrence of IOCG and associated deposits. The nature of
mineralization discussed in the following section further supports this model and the property will be
explored for its potential to host economic IOCG deposits.

EXPLORATION
The following is a description of exploration work completed on the Property to date. Exploration work
completed on the Property presented below was extracted from the Technical Report entitled A Mineral
Resource Estimate for the Las Posadas Deposit, La Corona De Cobre Project, Near La Serena, Region
IV, Chile, which was written in support of Global Hunters original mineral resource estimate for the
Deposit (Hennessey and Puritch, 2006) and filed on SEDAR, which in turn was extracted and updated
from a Technical Report prepared for Global Hunter Corp, and ed by Laurence Sookochoff (2005). A
summary of drilling completed to date on the property is described in section 10.

35
1.15 Exploration by Others - Pre-2005

1.15.1 1967 1968:

ENAMI performed metallurgical tests for the recovery of copper from copper oxide mineralization taken
from an outcrop and old workings 60 metres deep in Cerro Rodado, the only surface showing of the
Deposit mineralization. ENAMIs slurry leach and heap leach gave copper recoveries of 87% (total) on a
cycle of 130 hours. Sulphuric acid consumption is given at 2.32 kg/kg Cu. (More details of this testing can
be found in section 13).

1.15.2 1991 - 1994:


Andal affiliate Exploraciones Ro Bravo conducted the following work:

Prospecting, mapping and sampling of numerous mineralized occurrences over much of the
current project area.

Digging two trenches (POST0001 and POST0002) across the mineralized shear zone north and
south of Cerro Rodado.

Drilling of one NQ diamond drill hole (GRA-001) to 190 m depth, ending in mineralization.

Consolidation and acquisition of additional concessions.

After preliminary prospecting and sampling, Andal completed two trenches, spaced 120 m part along
strike, across a mineralized shear zone exposed in outcrop in the vicinity of Cerro Rodado (Table 8).

Table 7 Andal Trench Data

Trench From (m) To (m) Width (m) Cu (%)


POST0001 51 121.1 70.1 0.51
POST0002 10 69 59 0.74

1.15.3 1995 1997:

Noranda Explorations program consisted of:

Limited surface geochemical sampling several kilometres south of the Las Posadas zone.
Resampling of old Andal trenches.
174 line-km of aero magnetic survey flown on 150-m line spacing.
56 line-km of ground magnetometer survey with line spacing of 200 m to 50 m.
16 line-km of dipole-dipole IP survey.
16 RC drill holes totalling 2,993 m in two phases.
Interim report and resource estimate.
Follow-up 7-hole RC drill program totalling 1,187 m.

Noranda re-sampled the exposed mineralized structure in the two previous Andal trenches by
continuous chip sampling of trench walls (Table 9).

36
Table 8 Noranda Trench Data

Width Estimated True


Trench From (m) To (m) Cu (%)
(m) Width (m)
TR-1 61 79.9 18.9 16.5 0.55
TR-1 79.9 97.1 17.2 15 0.095
TR-1 97.1 121.1 24 21 1.23
TR-2 10 69 59 53 0.74

Additional rock samples were collected approximately 2.5 km south of the two Andal trenches in an area
called Cerro Medio Porciento. A total of five continuous, 5-m chip samples were collected and, although
precise locations are unknown, 25 m averaging 0.50% Cu was reported.

The airborne magnetometer survey delineated a broad magnetic low 300 m to 500 m in width
corresponding to the northeast striking dominant structure. This structure is flanked by a magnetic high on
the southeast side which is thought to represent the granodiorite intrusion mapped in outcrop further to
the southeast. The structural zone is flanked on the northwest by a second magnetic high thought to
represent an extension of andesitic flows mapped in outcrop to the northeast.

The ground magnetic data exhibits a broad, north-south trending, magnetic high which appears to be
structurally controlled. The northern portion of this anomaly is thought to represent the andesite ridge
identified in the airborne survey. The southern portion is thought to represent narrower units of hornfelsed
andesite and/or magnetic diorite dikes. The magnetic anomaly indicates that the structure has a minimum
length of 1,300 m with potential to continue to the north. Overall, the area appears structurally complex
with the dominant north and northeast structures being cut by others striking northwest.

Three, weak-to-moderate IP chargeability anomalies were detected. The mineralized portion of the Las
Posadas structure, as identified in outcrop, trenches and drill holes, does not exhibit a correlation to one
of the IP chargeability anomalies. The known mineralization lies east of this anomaly. A second
chargeability anomaly lies to the northeast of drill hole GRA-001. The third chargeability anomaly lies to
the west of the andesite ridge and corresponds closely to the magnetic anomaly. In general, the strength
of the chargeability anomalies increases to the north.

The known copper mineralization displays a close correlation to a resistivity low which remains open to
the north and south. The low resistivity appears to represent a zone comprised of several structures
striking north to northeast. The resistivity low may help trace the mineralized zone to the south. To the
north its signature is obscured due to low resistivity of increased thicknesses of Quaternary gravels.

1.15.4 1997:

Andal completed no exploration on the claims but retained O. Vicencio Consultants to complete a
resource estimate and perform a pre-feasibility study which is discussed in Section 6.

1.15.5 1997:

Tiger and Golden Bear conducted the following exploration:

5 RC drill holes (824 m) to confirm the continuity of the mineralization in the southern
portion of Norandas drilling.
Preliminary metallurgical testing on RC chip samples.

37
Scoping studies using two independent engineering firms to identify economic criteria.
Collection of over 1,000 rock geochemical chip samples from other parts of the property.

Only the results from the drilling program are available and are discussed in Section 10.

1.15.6 1998:

SMP conducted the following exploration:

10 RC drill holes (1,635 m) to confirm previous results and to extend the deposit.
A topographic survey of the entire area including re-survey of all drill collars.
A brief mapping program over the entire property.

The SMP topographic data has been expanded upon significantly by Global Hunter and the drill holes
resurveyed. The mapping program data has been included in and partially superseded by mapping
completed by Global Hunter.

1.15.7 2000:

Latin American Copper PLC (LAC) conducted surface evaluation at the Cerro Borracho prospect, a
potential IOCG target. Surface geochemistry and site inspections were reported to be encouraging but no
specific results applicable to Las Posadas are available. LAC was unable to finance a 2,500 m drill
program at the Deposit and returned the Property to Andal in February 2002.

1.16 Global Hunter Exploration

Sookochoff collected five rock samples from various locations on the property between March 26 and 29,
2004 in order to test surface exposures of mineralization and to verify previously documented work. The
analytical results and descriptions of Sookochoffs samples are tabulated in his Technical Report
(Sookochoff, 2005).

Global Hunter carried out a combined RC and core drilling program in 2005 and a core drilling program in
2007 (Section 10 below). A geologic map of bedrock exposure at Cerro Rodado was also completed.
Detailed and reconnaissance scale geologic mapping was performed on other shear zone copper targets
on the property. All drill holes from previous campaigns were relogged. The geologic mapping and
logging information were compiled into a set of geologic cross sections, plan maps and a long section.

DRILLING
The following is a description of drilling completed on the Property to date. This includes historic work and
work completed by Global Hunter in 2005 and 2007. To date a total of 87 RC and diamond drill holes over
6 drill campaigns have been completed on the Property totalling 19,618 metres (Tables 10, 11). A
description of drilling completed on the Property up to 2005 is presented in the Technical Report entitled
A Mineral Resource Estimate for the Las Posadas Deposit, La Corona De Cobre Project, Near La
Serena, Region IV, Chile, which was written in support of Global Hunters original mineral resource
estimate for the Deposit (Hennessey and Puritch, 2006) and filed on SEDAR. The following text has been
extracted from that report, amended and updated with the 2007 drilling. The figures have recently been
updated by Global Hunter.

38
Table 9 Summary of Drilling in the Deposit area

Program Hole ID Range # of Holes Total Metres Year


Drilled
Rio Bravo Core Drilling GRA-001 1 189.7 1994
Noranda Phase 1 RC Drilling LP-001-LP-016 16 3,049.30 1996
Noranda Phase 2 RC Drilling LP-017-LP-023 7 1,187.60 1996
Tiger RC Drilling LP-024-LP-028 5 824 1997
SMP RC Drilling LP-029-LP-034; 10 1,444.50 1998
LP-036-LP-039
Global Hunter RC Drilling LP-040-LP-053 14 2,837 2005
Global Hunter Core Drilling LP-054-LP-058 5 1,047.45 2005
Global Hunter Core Drilling LP-059-LP087 29 9,038.45 2007

Total RC 52 9,342.40
Total Core 35 10,275.60
Total Drilling 87 19,618.00

39
Table 10 List of drill holes completed on the Property to date

Hole ID Easting Northing Elevation Depth Drill Type Year Company Azimuth Dip
GRA-1 50014.71 50010.96 301.65 189.70 DDH 1994 Andale 120 -60
LP-001 49998.07 49901.64 296.63 162.00 RC 1996 Noranda 120 -60
LP-002 50066.97 50101.59 290.88 204.00 RC 1996 Noranda 120 -60
LP-003 50105.10 49840.23 296.60 150.00 RC 1996 Noranda 120 -60
LP-004 50251.71 49857.01 296.90 150.00 RC 1996 Noranda 120 -60
LP-005 49927.19 49710.60 297.06 244.00 RC 1996 Noranda 120 -60
LP-006 50068.50 50276.65 287.04 213.00 RC 1996 Noranda 120 -60
LP-007 49958.72 50174.34 289.17 312.30 RC 1996 Noranda 120 -60
LP-008 49983.61 50329.82 286.47 190.00 RC 1996 Noranda 120 -60
LP-009 50012.97 49653.75 299.86 186.00 RC 1996 Noranda 90 -60
LP-010 50040.46 49453.77 307.39 250.00 RC 1996 Noranda 85 -60
LP-011 50055.88 49254.47 316.28 300.00 RC 1996 Noranda 85 -60
LP-012 50007.57 49183.21 320.52 150.00 RC 1996 Noranda 0 -90
LP-013 50120.89 48966.85 331.29 126.00 RC 1996 Noranda 85 -60
LP-014 50037.11 48954.22 326.87 250.00 RC 1996 Noranda 85 -60
LP-015 50013.61 50551.16 248.22 42.00 RC 1996 Noranda 0 -90
LP-016 50059.57 50547.22 250.22 120.00 RC 1996 Noranda 0 -90
LP-017 49987.95 49348.82 310.16 250.00 RC 1996 Noranda 85 -60
LP-018 49967.02 49546.64 302.32 220.70 RC 1996 Noranda 85 -60
LP-019 49942.00 50210.57 288.67 269.00 RC 1996 Noranda 90 -60
LP-020 50017.67 50212.07 288.35 150.90 RC 1996 Noranda 90 -60
LP-021 49961.61 50377.27 286.05 108.00 RC 1996 Noranda 79 -60
LP-022 50056.16 49558.66 303.75 160.00 RC 1996 Noranda 85 -60
LP-023 49985.57 50382.79 286.09 29.00 RC 1996 Noranda 79 -70
LP-024 50014.71 50010.96 301.66 198.00 RC 1997 Augusta 120 -60
LP-025 50062.90 49456.40 307.86 146.00 RC 1997 Augusta 91.5 -60
LP-026 50075.07 49508.97 305.75 156.00 RC 1997 Augusta 93.5 -60
LP-027 50057.84 49409.45 309.87 150.00 RC 1997 Augusta 92.5 -60
LP-028 50007.32 49245.06 315.28 174.00 RC 1997 Augusta 91.5 -60
LP-029 50067.37 50102.67 290.84 156.00 RC 1998 SMP 120 -60
LP-030 50072.82 49512.48 305.87 150.00 RC 1998 SMP 93.5 -60
LP-031 50116.17 49691.25 300.37 150.00 RC 1998 SMP 97 -60
LP-032 49876.53 49756.59 295.36 152.00 RC 1998 SMP 117 -60
LP-033 49974.71 48917.66 323.51 151.50 RC 1998 SMP 95 -60
LP-034 50026.28 49781.08 296.42 151.00 RC 1998 SMP 99 -60
LP-036 50077.00 50195.02 288.77 150.00 RC 1998 SMP 95 -60
LP-037 48145.03 49987.58 368.93 120.00 RC 1998 SMP 120 -60
LP-038 47829.91 49977.94 368.96 114.00 RC 1998 SMP 120 -60
LP-039 47807.18 49895.28 360.19 150.00 RC 1998 SMP 240 -60
LP-040 50013.74 50102.39 291.38 210.00 RC 2005 Global H. 90 -60
LP-041 50055.14 50002.83 296.08 170.00 RC 2005 Global H. 90 -60
LP-042 49950.34 49905.82 294.95 240.00 RC 2005 Global H. 90 -60
LP-043 50023.24 49901.60 299.27 125.00 RC 2005 Global H. 90 -60
LP-044 49952.14 49800.72 294.66 230.00 RC 2005 Global H. 90 -60

40
Hole ID Easting Northing Elevation Depth Drill Type Year Company Azimuth Dip
LP-045 49992.75 49702.74 298.01 135.00 RC 2005 Global H. 90 -60
LP-046 50020.05 49600.08 301.68 190.50 RC 2005 Global H. 90 -60
LP-047 50021.60 49550.17 303.39 230.00 RC 2005 Global H. 90 -60
LP-048 50014.31 49153.19 319.22 196.50 RC 2005 Global H. 90 -60
LP-049 49993.76 49051.84 322.31 220.00 RC 2005 Global H. 90 -60
LP-050 49954.95 48949.96 321.46 250.00 RC 2005 Global H. 90 -60
LP-051 49993.63 48851.22 323.80 180.00 RC 2005 Global H. 90 -60
LP-052 48260.17 49946.69 365.83 200.00 RC 2005 Global H. 115 -60
LP-053 49934.41 48840.25 323.17 260.00 RC 2005 Global H. 90 -60
LP-054 50065.81 50098.80 290.80 170.40 DDH 2005 Global H. 120 -60
LP-055 50021.85 49554.98 303.37 256.45 DDH 2005 Global H. 90 -60
LP-056 49992.75 49702.74 298.01 192.45 DDH 2005 Global H. 90 -60
LP-057 50066.36 49347.17 312.25 196.25 DDH 2005 Global H. 90 -60
LP-058 50015.34 50157.79 289.35 231.90 DDH 2005 Global H. 90 -60
LP-059 49955.15 50005.32 297.62 300.00 DDH 2007 Global H. 95 -60
LP-060 50019.95 50249.96 287.90 250.00 DDH 2007 Global H. 93.8 -57
LP-061 49966.20 50149.99 289.48 275.00 DDH 2007 Global H. 94.2 -60.5
LP-062 50039.78 50200.40 288.77 200.00 DDH 2007 Global H. 95 -57
LP-063 49980.60 49749.87 296.28 318.50 DDH 2007 Global H. 93.5 -60
LP-064 49950.21 49850.13 293.69 300.00 DDH 2007 Global H. 93.8 -61.5
LP-065 50045.22 49700.08 298.44 212.20 DDH 2007 Global H. 93.4 -59
LP-066 50059.93 49650.02 300.32 446.20 DDH 2007 Global H. 93.5 -60.5
LP-067 49864.67 49999.92 291.39 433.95 DDH 2007 Global H. 93.5 -60
LP-068 50013.53 50099.94 291.51 275.20 DDH 2007 Global H. 93.5 -60
LP-069 49949.31 49949.92 296.17 305.50 DDH 2007 Global H. 93.25 -60
LP-070 49995.96 49099.32 320.82 166.90 DDH 2007 Global H. 93.5 -62.5
LP-071 50001.19 50049.68 297.09 369.15 DDH 2007 Global H. 94 -59.5
LP-072 50061.55 49149.85 321.22 213.30 DDH 2007 Global H. 93 -61.5
LP-073 50050.04 49199.74 318.44 353.50 DDH 2007 Global H. 100.25 -63.5
LP-074 50100.69 49249.87 317.94 393.40 DDH 2007 Global H. 94.5 -60
LP-075 50007.25 49245.09 315.12 397.65 DDH 2007 Global H. 93.5 -60
LP-076 49915.76 49550.14 300.94 478.90 DDH 2007 Global H. 93.5 -62
LP-077 49965.00 50099.64 291.05 386.60 DDH 2007 Global H. 92.5 -61.5
LP-078 50115.26 49449.73 309.00 370.60 DDH 2007 Global H. 94 -60
LP-079 50009.42 49399.68 308.34 363.90 DDH 2007 Global H. 93.5 -61
LP-080 50020.46 49499.77 305.19 360.10 DDH 2007 Global H. 93.5 -59.5
LP-081 50110.23 49400.01 311.50 246.50 DDH 2007 Global H. 93.5 -60.5
LP-082 49990.40 49450.79 306.12 313.70 DDH 2007 Global H. 93.5 -60
LP-083 50019.39 49300.05 324.98 312.10 DDH 2007 Global H. 93.25 -60
LP-084 50065.60 50149.98 290.00 237.65 DDH 2007 Global H. 93 -57.5
LP-085 50095.12 49550.03 304.91 247.00 DDH 2007 Global H. 93.25 -54
LP-086 50025.28 49349.88 311.03 298.40 DDH 2007 Global H. 94.5 -60
LP-087 50125.38 49299.39 316.60 212.55 DDH 2007 Global H. 93 -59.5
Total Metres: 19,618.00

41
1.17 Drilling by Others - Pre-2005

1.17.1 1991 - 1994:

Andal affiliate Ro Bravo drilled one NQ-sized (47.6 mm core) diamond drill hole on Cerro Rodado after
completion of its trenching program. Hole GRA-001 (Table 11) was drilled to 190 m depth and ended in
mineralization (Table 12). The hole was drilled to test the subsurface extent of the mineralization seen at
the only surface exposure.

1.17.2 1995 - 1997:

Noranda performed three phases of RC drilling on the Deposit between March and October of 1996.
Twenty three holes were drilled over this period, totalling 4,236.9 m (Tables 10-11). The first 16 holes on
the Deposit were drilled in two periods in March (6 holes) and May/June (10 holes). These were followed
with a second 7-hole RC drill program later in the year.

The first two RC drill programs were targeted at copper oxide mineralization and were conducted to test
grade, thickness and continuity of the main mineralized structure intersected in Andal trenches 1 and 2
and diamond drill hole GRA-001. The first two phases of drilling totalled 2,993 m. Drill results for holes
LP-001 to LP-016 are presented in Table 12 below.

Noranda prepared an interim report in July, 1996 which used the results from the 16 RC drill holes,
diamond drill hole GRA-001 and the trench samples to calculate a preliminary geological tonnage
estimate (see section 6 above). An additional 7 holes, totalling 1,187 m (LP-017 to LP-022, Table 12)
were drilled in October, 1996 to follow-up on and expand the initial drill program.

Problems with caving in the overburden resulted in abandonment of holes LP-21 and LP-23, an attempt
to expand the zone to the north of hole LP-08. It was suggested that a diamond drill rig with capability to
case to depths of 100 m would be required to properly test this area.

1.17.3 1997:

Augusta completed 5 additional RC drill holes totalling 824 m (Tables 10-11). They were drilled within the
mineralized zone established by previous exploration and targeted largely to confirm the continuity of the
mineralization in the southern portion of Norandas drilling. One hole, LP-24, was drilled to confirm the
results in the diamond drill hole GRA-001. The remaining 4 holes were drilled to provide additional
intercepts for grade and width information. Drill results for holes LP-024 to LP-028 are presented in Table
12 below.

1.17.4 1998:

SMP drilled 10 RC holes, totalling 1,444.5 m in 1998 (Tables 10-11). The holes were targeted to confirm
previous results and to step out down dip and along strike. Holes LP-037, 038 and 039 were drilled
approximately one kilometre south-southwest of the previously drilled area to test for the possible
extension of the Las Posadas zone. The remaining seven holes were drilled around the existing drill holes
to confirm and expand the copper mineralization. The summary results for the program are set out in
Tables 12 below.

42
Table 11 Pre-2005 drilling results

Hole ID From (m) To (m) Width (m) True Width (m) Cu (%)
GRA-001 71.75 105 33.25 24 0.24
LP-001 68 122 54 38 0.46
incl. 76 86 10 7 1.04
LP-002 40 106 66 45 0.41
incl. 58 72 14 11 1.05
LP-003 4 36 32 22 0.17
LP-006 134 164 30 20 0.14
LP-007 206 262 56 40 0.5
LP-008 138 190 52 35 1.62
incl. 152 186 34 22 2.39
LP-009 98 150 52 32 0.56
incl. 98 116 18 11 0.96
LP-010 106 168 62 45 1.35
incl. 108 130 22 14 3.46
LP-011 104 122 18 10.5 0.64
and 178 186 8 5 1.25
LP-014 92 116 24 16 0.15
LP-016 100 112 12 0.34
LP-017 172 224 52 38 0.32
LP-018 198.7 220.7 22 17 0.4
incl. 212.7 220.7 8 To EOH 0.87
LP-019 229 269 40 30 0.41
incl. 243 269 26 To EOH 0.61
LP-020 80 102 22 17 0.17
and 114 150 36 28 0.35
LP-022 88 138 50 36 1.78
LP-024 68 198 130 95 0.42
incl. 70 84 14 9 0.74
LP-025 69 146 77 55 0.45
incl. 77 107 30 22 0.95
LP-026 62 135 73 52 0.8
incl. 62 85 23 15 2.06
LP-027 87 150 63 45 0.78
incl. 88 125 37 24 1.17
LP-028 150 174 24 17 0.52
LP-029 59 92 33 24 0.68
LP-030 28 150 122 90 0.56
incl. 56 90 34 25 1.52
LP-031 60 90 30 22 0.14
LP-033 124 140 16 11 0.7
LP-034 25 145 120 93 0.35
incl. 25 55 30 21 1
LP-036 26 42 16 11 0.15
LP-037 50 66 16 11 1.21
LP-039 118 128 10 7 0.3

43
1.17.5 Drill Hole Surveying

As is commonly the practice, no downhole surveys were made in the RC holes for any of the programs.
The risk of losing the instrument in an open hole is too great. Rio Bravo also conducted no down hole
surveying on the one diamond drill hole completed before Global Hunters involvement. Global Hunter
has resurveyed the collars for all drill holes. Therefore all drill holes have a current surveyed location and
elevation of known quality and confidence.

1.17.6 Logging, Data Collection and Management

No detailed records are available for the Rio Bravo/Andal and Augusta drill programs. Some information
is available for the Noranda and SMP programs and this is summarized below. No information describing
the logging, data collection and management is available for any of the pre Global Hunter campaigns
except for the drill logs and the electronic database compiled by previous operators. The core trays for
GRA-001 and chip trays for the RC programs are stored in the field office in the nearby village of El
Trapiche. Most were in good shape and all holes were relogged by Global Hunter.

For its programs Noranda retained different drill contractors. Both used standard truck-mounted rigs and
six metre rods with down-hole hammers to the water table. Most drilling below the water table was done
with 5 to 5 inch tricone bits because of high water pressure encountered in holes LP-005 and 006.

SMP carried out its drill program with its own TW4 drill rig and bit diameters of between 5 to 5
inches. Little else is known about the specifics of the procedures used.

1.18 Global Hunter Drilling

Global Hunter drilled 14 RC holes totalling 2,837 m, and 5 core holes totalling 1,047.45 m during the 2005
Phase I exploration program (Tables 10 and 11). The RC program was designed to test mineralization
in 50-m step-outs from previously intersected mineralization. Three of the five core holes were designed
to twin previously drilled RC holes. The last two core holes were step-outs of known mineralization.
Global Hunter drilled an additional 29 diamond drill holes totalling 9,038.45 m during the 2007 exploration
program. The primary objective for the Phase II program was to further define the resource and
economics of the Deposit. The results of the 2005 and 2007 drill programs are presented it Table 13
below.

In June of 2006, Global Hunter released results from an independent resource estimate, compliant with
National Instrument 43-101 Standards of Disclosure for Mineral Projects, on the Deposit (see Section 6
above), based on the Companys Phase I exploration and past results. The Company planned to use the
results of the 2007 Phase II program to complete a revised NI 43-101 resource calculation, which is the
basis for this report (see section 14 below).

44
Table 12 Global Hunter 2005 and 2007 drill results

Hole ID From (m) To (m) Width (m) CuT (%) CuS (%)
LP-040 60.00 210.00 150.00 0.34 0.20
Incl. 66.00 106.00 40.00 0.66 0.46
LP-041 2.00 68.00 66.00 0.55 0.41
Incl. 34.00 50.00 16.00 0.94 0.82
LP-041 78.00 138.00 60.00 0.27 0.13
LP-042 126.00 174.00 48.00 0.53 0.34
Incl. 142.00 158.00 16.00 1.13 0.87
LP-042 182.00 218.00 36.00 0.13 0.04
LP-043 12.00 124.00 112.00 0.37 0.15
Incl. 30.00 44.00 14.00 1.26 0.89
LP-044 140.00 210.00 70.00 0.67 0.40
Incl. 166.00 182.00 16.00 2.23 1.51
LP-045 121.50 135.00 13.50 0.77 0.52
LP-046 90.00 111.00 21.00 0.16 0.06
LP-046 124.50 138.00 13.50 0.67 0.57
LP-046 162.00 184.50 22.50 1.56 0.81
LP-047 129.00 229.50 100.50 0.60 0.27
Incl. 141.00 148.50 7.50 2.70 0.44
and 180.00 186.00 6.00 3.33 2.69
LP-048 136.00 163.50 27.50 0.24 0.16
LP-049 94.00 144.00 50.00 0.19 0.07
LP-049 186.00 219.00 33.00 0.14 0.01
LP-050 114.00 168.00 54.00 0.33 0.19
LP-050 183.00 201.00 18.00 0.63 0.03
LP-053 132.00 150.00 18.00 0.17 0.03
LP-053 168.00 181.50 13.50 0.10 0.02
LP-053 192.00 219.00 27.00 0.30 0.02
LP-054 34.00 160.00 126.00 0.31 0.17
Incl. 76.00 88.00 12.00 0.51 0.34
and 126.00 140.00 14.00 0.50 0.28
LP-055 36.00 48.00 12.00 0.32 0.09
LP-055 118.00 254.00 136.00 0.35 0.11
Incl. 140.00 166.00 26.00 0.89 0.25
and 140.00 162.00 22.00 0.97 0.27
LP-056 118.00 176.00 58.00 0.56 0.34
Incl. 122.00 148.00 26.00 1.04 0.69
LP-057 28.00 46.00 18.00 0.22 0.02
LP-057 64.00 132.00 68.00 1.25 0.98
Incl. 74.00 98.00 24.00 2.53 2.07
LP-058 95.00 145.00 50.00 0.28 0.11
LP-058 179.00 195.00 16.00 0.24 0.10
LP-059 163.00 181.00 18.00 0.35 0.14
LP-059 189.00 263.00 74.00 0.63 0.10
LP-059 201.00 221.00 20.00 1.43 0.30
LP-060 116.00 214.00 98.00 0.28 0.14
Incl. 122.00 148.00 26.00 0.54 0.33

45
Hole ID From (m) To (m) Width (m) CuT (%) CuS (%)
LP-060 226.00 240.00 14.00 0.20 0.07
LP-061 178.00 236.00 58.00 0.97 0.03
Incl. 178.00 198.00 20.00 1.80 0.05
LP-061 246.00 260.00 14.00 0.30 0.01
LP-062 92.00 160.00 68.00 0.27 0.10
LP-062 168.00 198.00 30.00 0.13 0.05
LP-063 92.00 152.00 60.00 1.28 0.80
Incl. 96.00 140.00 44.00 1.69 1.07
LP-063 164.00 182.00 18.00 0.15 0.06
LP-063 270.00 300.00 30.00 0.15 0.01
LP-064 144.00 222.00 78.00 0.34 0.17
Incl. 146.00 160.00 14.00 1.17 0.78
LP-064 284.00 300.00 16.00 0.13 0.00
LP-065 53.00 115.00 62.00 0.54 0.37
Incl. 55.00 89.00 34.00 0.82 0.59
LP-065 141.00 163.00 22.00 0.14 0.06
LP-066 54.00 106.00 52.00 0.39 0.26
LP-066 232.00 256.00 24.00 0.14 0.04
LP-066 288.00 306.00 18.00 0.40 0.08
LP-067 300.00 344.00 44.00 0.24 0.04
Incl. 67.00 79.00 12.00 1.02 0.82
LP-068 99.00 193.00 94.00 0.27 0.16
LP-069 151.00 199.00 48.00 0.37 0.11
LP-069 223.00 235.00 12.00 0.40 0.07
LP-070 100.00 148.00 48.00 0.14 0.04
LP-071 75.00 209.00 134.00 0.56 0.29
Incl. 97.00 111.00 14.00 1.07 0.79
and 151.00 203.00 52.00 0.80 0.33
LP-071 339.00 363.00 24.00 0.11 0.00
LP-072 80.00 100.00 20.00 0.85 0.71
LP-073 88.00 152.00 64.00 0.34 0.22
LP-074 51.00 83.00 32.00 0.24 0.13
LP-074 97.00 139.00 42.00 0.20 0.05
LP-074 147.00 183.00 36.00 0.21 0.11
LP-074 271.00 287.00 16.00 0.09 0.00
LP-075 152.00 210.00 58.00 0.25 0.07
LP-075 226.00 242.00 16.00 0.18 0.00
LP-076 259.00 327.00 68.00 0.18 0.01
LP-076 335.00 397.00 62.00 0.15 0.01
LP-076 409.00 431.00 22.00 0.10 0.00
LP-076 455.00 467.00 12.00 0.22 0.02
LP-077 133.00 155.00 22.00 0.25 0.02
LP-077 191.00 251.00 60.00 0.83 0.03
Incl. 213.00 235.00 22.00 1.45 0.06
LP-077 261.00 275.00 14.00 0.23 0.01
LP-078 7.00 59.00 52.00 0.70 0.54
Incl. 7.00 25.00 18.00 0.75 0.56

46
Hole ID From (m) To (m) Width (m) CuT (%) CuS (%)
Incl. 35.00 51.00 16.00 1.19 0.97
LP-078 129.00 141.00 12.00 0.09 0.02
LP-078 161.00 173.00 12.00 0.08 0.03
LP-078 225.00 263.00 38.00 0.21 0.02
LP-079 122.00 152.00 30.00 0.37 0.21
LP-079 164.00 198.00 34.00 1.14 0.16
Incl. 164.00 178.00 14.00 2.29 0.24
LP-080 119.00 135.00 16.00 0.25 0.15
LP-080 147.00 159.00 12.00 1.74 0.40
LP-080 193.00 205.00 12.00 0.19 0.05
LP-080 221.00 235.00 14.00 0.12 0.03
LP-080 265.00 277.00 12.00 0.17 0.01
LP-080 293.00 307.00 14.00 0.17 0.01
LP-081 16.00 88.00 72.00 0.30 0.15
Incl. 28.00 42.00 14.00 0.43 0.29
LP-082 163.00 195.00 32.00 0.76 0.55
LP-083 140.00 174.00 34.00 0.34 0.19
LP-083 226.00 248.00 22.00 0.18 0.01
LP-084 77.00 103.00 26.00 0.28 0.17
LP-084 119.00 133.00 14.00 0.12 0.03
LP-084 199.00 225.00 26.00 0.15 0.08
LP-085 15.00 27.00 12.00 0.28 0.17
LP-085 37.00 89.00 52.00 1.77 1.44
Incl. 39.00 51.00 12.00 2.39 1.97
and 65.00 83.00 18.00 2.96 2.46
LP-085 105.00 127.00 22.00 0.56 0.23
Incl. 109.00 121.00 12.00 0.87 0.38
LP-085 145.00 213.00 68.00 0.18 0.09
LP-086 86.00 104.00 18.00 0.46 0.19
LP-086 120.00 184.00 64.00 0.71 0.23
Incl. 152.00 164.00 12.00 1.10 0.18
LP-086 254.00 266.00 12.00 0.22 0.01
LP-086 276.00 290.00 14.00 0.10 0.00
LP-087 24.00 44.00 20.00 0.22 0.07
LP-087 98.00 120.00 22.00 0.19 0.09

47
SAMPLE PREPARATION, ANALYSIS AND SECURITY
The following is a description of the sample preparation, analysis and security for the drilling completed
on the Property to date. A description of the sample preparation, analysis and security for the drilling to
the end of the 2005 drill program was extracted from the Technical Report entitled A Mineral Resource
Estimate for the Las Posadas Deposit, La Corona De Cobre Project, Near La Serena, Region IV, Chile,
which was written in support of Global Hunters original mineral resource estimate for the Deposit
(Hennessey and Puritch, 2006) and filed on SEDAR. For the 2007 drill program, Global Hunter followed
the same procedures as for their 2005 drill program.

The Authors were not involved in the previous drill programs; however the Authors believe the work to
have been done within the guidelines of NI 43-101.

1.19 Pre-2005 Sample Preparation, Analysis and Security

As with the sampling method information, few detailed records are available for the Rio Bravo/Andal
sample preparation and assaying programs. Somewhat more information is available for the Noranda,
SMP and Augusta programs and this is summarized below. However, copies of the assay certificates
compiled by previous operators also provide some information as to the assay methods used. Little is
known of the sample security protocols employed at Las Posadas by any of the explorers which preceded
Global Hunter.

1.19.1 Rio Bravo

Rio Bravo assayed its core samples for total copper (CuT) only. No soluble copper (CuSol) assays were
performed on its samples. Noranda did sample more extensively in the one hole drilled (GRA-001) and
used its analytical protocols for these later samples.

1.19.2 Noranda

Noranda subjected all drill samples, plus the previously unassayed, mineralized portions of core hole
GRA-001, to a variety of analyses. All analytical work was performed by ACME Analytical Laboratories
Ltd. (ACME) at its Santiago facility.

Gold was analyzed by 30 g fire assay (FA) with atomic absorption spectrophotometry (AAS) finish
after nitric acid digestion to remove silver and hydrochloric acid digestion to dissolve gold.

Total copper was analyzed by AAS after digestion of a 1.0 g sample in aqua regia.

Soluble copper was analyzed by AAS after digestion of a 1.0 g sample in hot (85 C - 90 C)
sulphuric acid for 7 minutes.

Noranda also selectively completed multi-element ICP analyses on some samples. However, total copper
and soluble copper assay results were always available for the well mineralized intervals. ACME has ISO
9001:2000 accreditation. Nothing is known of the Noranda quality assurance/quality control (QA/QC)
program although ACMEs standard internal QA/QC program would have been run.

1.19.3 Augusta

All analytical work by Augusta was performed by ACME at its Santiago facility using essentially the same
methods as Noranda. Samples were analyzed for total copper and soluble copper on selected intervals.

48
Nothing is known of the Augusta QA/QC program although ACMEs standard internal QA/QC protocols
would have been run.

1.19.4 SMP

SMP had its samples analyzed at the CIMM T&S (Centro de Investigacion Minera y Metallurgica)
laboratory in La Serena. Soluble and total copper analyses were wet chemical digestion and atomic
absorption analysis on 1 g of sample. It is not known whether SMPs soluble copper analyses were hot
or cold digestion.

At the time of Micons resource estimate the SMP soluble copper data had not been located and was not
available for use. Global Hunter hopes to find the data and has some leads on it. Nothing is known of the
SMP QA/QC program. It is not known whether CIMM has a laboratory accreditation but it has been in
business since 1983 and has been used by major mining companies such as Barrick and Codelco.

1.20 2005-2007 Global Hunter Sample Preparation, Analysis and Security

1.20.1 Field Preparation, Security and Shipping

RC samples were split in the field, as previously described, then transported to a nearby secure facility at
the Parcela for preparation of sample shipments. The samples were collected in heavy gauge plastic
bags and sealed with plastic cable ties. Core boxes were taken to the secure facility where they were
logged and marked up for sampling.

Core samples were sawn. One sawn half was placed in a heavy gauge plastic sample bag with a sample
tag and the other half returned to the core box.

Prior to shipment QA/QC samples were inserted into the sample stream according to the following
scheme:

1. Blank samples: No blanks were used in the 2005 Global Hunter RC program. Blank samples
were inserted at a frequency of about 1 for every 40 samples for the core programs.

2. Rig/field duplicates: A second split of the original sample was inserted about 1 in every 20
samples for the RC drill program. For the core drilling program the sawn core was halved again.
Thus, of the core interval constituted the original sample and the second of the core interval
constituted the field duplicate. These duplicates were inserted about 1 in every 20 samples.

3. Standards: Gold and total-copper analytical reference standards, sourced from CDN Resource
Laboratories (CDN) in Delta, B.C., were inserted about 1 in every 30 samples. The standards
used have accepted values for gold and total copper only determined by round robin external
assays.

4. Preparation duplicates: A second pulp was requested from ACME for every other rig duplicate.
For this purpose a labelled, empty sample bag with a tag inside was placed in the sample stream
at the appropriate spots. About 1 in every 40 samples was a preparation duplicate.

Samples were shipped as bags on pallets for the first six holes but were later placed inside rice bags.
Once the samples had been palletized or bagged and numbered, and quality control samples inserted,
they were shipped to ACMEs Santiago facility, using either a bus freight service in La Serena, or ACMEs
designated sample freight service. The latter sample freight service picked up the samples at Global
Hunters field office and transported them directly to ACMEs lab in Santiago. Sample shipments were
usually made on a hole-by-hole basis, although in some cases samples from two or three holes were
shipped together.

49
1.20.2 Analytical Work

All bedrock samples were assayed for gold, total copper, and soluble copper. Selected intervals of
overburden, usually directly over the deposit, were also analyzed for gold, total copper and soluble
copper and bedrock samples in selected holes was subjected to multi-element ICP analysis and bulk
density tests. The Santiago, Chile laboratory of ACME was contracted to do all of the analytical work on
the 2005 and 2007 Global Hunter drill programs. ACMEs preparation and analytical specifications are
described below.

Bulk Density Testing

Bulk density determination of drill core made by wax sealing of dry, intact half cores to account for the
porosity present in the mineralized shear zone. The core was weighed before and after waxing and the
volume of the waxed core determined by immersion in water.

Standard Sample Preparation for Assaying

Dry sample at less than 60 C in drying oven.

Crush entire sample (up to 5 kg) to 95% passing 10 mesh, (Tyler 2 mm) in a two stage crushing
process (jaw and Rhino crushers).

Split approximately 500 g with a 24 slot Jones riffle splitter.

Pulverize the split to 95% passing 150 mesh (Tyler 106 m) in a Labtechnics LM-2 puck and bowl
pulverizer.

The crushers and pulverizers go through granulometric control tests (1 for each page of assays) to
ensure that specifications are being met. A quartz charge is processed prior to each batch as a wash and
the second sample in each batch is also a quartz charge which gets assayed. This second sample is a
check for cross contamination from previous batches.

Analytical Procedures

The pulps were subjected to the following analytical procedures. The ICP results were not used for
resource estimation.

Gold (Code: Au30FA): Gold was determined by a 30 g fire assay with AAS finish. The samples
were weighed to an accuracy of +/- 0.1 g and mixed with a flux, fused in an oven for 1 hour at
1,100 C and poured into molds to collect a lead button. The lead button was cupelled for 1 hour
at 900 C to produce a gold-silver prill which is weighed. The prill is then parted with nitric acid to
remove the silver and then dissolved in hydrochloric acid to read on the AAS machine.

Total Copper (Code: CuTAR): Total copper was determined by a 1 g assay with AAS finish. The
samples were weighed to an accuracy of +/- 0.1 g, placed in a 100 ml flask and dissolved in aqua
regia in a hot water bath (95 C). The flask is allowed to cool and the lost water is made up before
being read on an AAS machine.

Soluble Copper (Code: CuS:EVH-LXS): Total copper was determined by a 1 g assay with AAS
finish in a method somewhat similar to the total copper one. The samples were weighed to an
accuracy of +/- 0.1 g, placed in a 100 ml flask and dissolved in 5% sulphuric acid in an agitated,
room temperature water bath for 30 minutes. The flask is allowed to cool and the lost water is
made up before being read on an AAS machine.

50
36 Element ICP (Code: Group 1DX): A 0.5 g sample is dissolved in hot aqua regia (1 hour at 95
C) cooled and read on an ICP-MS (inductively coupled plasma - mass spectroscopy) machine.

The following are the various lower detection limits for the assay methods employed by Global Hunter in
the 2005-2007 exploration programs: Fire Assay Au/AAS finish - 5 ppb, Total Cu (CuT) Assay - 0.001%,
Soluble Cu (CuS) Assay - 0.001%, Group 1DX, 36 element ICP-MS Various.

DATA VERIFICATION
The following is a description of the data verification procedures for the drilling completed on the Property
to date. A description of the data verification to the end of the 2005 drill program was extracted from the
Technical Report entitled A Mineral Resource Estimate for the Las Posadas Deposit, La Corona De
Cobre Project, Near La Serena, Region IV, Chile, which was written in support of Global Hunters original
mineral resource estimate for the Deposit (Hennessey and Puritch, 2006) and filed on SEDAR.

Little is known about the QA/QC programs employed by operators of the project before Global Hunter.
However, it is known that, other than for Rio Bravos one hole and SMP who used CIMM, they all used
ACME, the same laboratory as Global Hunter and a reputable international assay laboratory.

However, in order to get more confidence in the data, Global Hunter and Micon performed some checks
and statistical analyses of the pre-2005 results. Overall Micon found the Global Hunter data in the
database, more specifically the pre-2005 data, to be acceptable for use in a resource estimate.

All geological data including the 2007 data has been reviewed and verified by the Authors as being
accurate to the extent possible and to the extent possible all geologic information was reviewed and
confirmed. The Authors did not conduct check sampling of the core. Overall they found the Global Hunter
data in the database, including the pre-2005 data and the 2005 and 2007 data, to be acceptable for use
in an update resource estimate.

Global Hunter continues to use an industry standard QA/QC system and contracted its assaying to a
modern accredited laboratory. As for the 2005 drill program, the majority of the 2007 drill holes completed
by Global Hunter fills in around, and extends slightly beyond the previous programs and has essentially
sampled the same body of mineralization.

1.21 Global Hunter QA/QC

In addition to the QA/QC program routinely run by ACME Global Hunter instituted a program of insertion
of blanks, field duplicates, duplicate pulps and blanks described in Section 12 above. All sample results
were subject to a QA/QC review on a work-order-by-work-order basis as results came in.

The results for the CDN-prepared reference standards were compared against their accepted values for
gold and total copper. Global Hunter used control charts to track the assay results of the reference
standards. Acceptance, acceptance with warning, and rejection levels for assay batches were established
as follows:

Acceptance: All gold and total copper results from inserted standards return assays within 2
standard deviations (SD) of the accepted values; results accepted to database.

Acceptance with warning: No more than two gold results or 1 total copper result from inserted
standards falling between 2 SD and 3 SD of the accepted values, with the rest within 2 SD of
accepted values; accepted to database, but with notification to lab.

Rejection: Any gold or total copper value falling outside of 3 SD from the accepted value for the
standard. Results are not accepted to database. The laboratory is requested to re-run the
analyses, with an explanation of the problem.

51
In the course of the 2005 Global Hunter drilling program, one work order was rejected, and another was
accepted with a warning. The laboratory complied with the request for re-analysis of the rejected work
order, the new results passed QA/QC, and the data were accepted. In the course of the 2007 drill
program, there were no work orders rejected or accepted with warnings.

Field blanks were also monitored on a work-order-by-work-order basis for significant gold or copper. The
purpose of blank samples was to test for lab contamination during sample preparation from adjacent
mineralized samples. Overall, the reported blanks are considered to show that the lab had minimal or nil
transfer of material between samples.

1.22 Twinned Drill Holes

As one test to confirm the historic drill results Global Hunter twinned 3 drill holes. Previous operators had
already twinned 3 other holes (including one of the ones twinned by Global Hunter).

From south to north the holes and sections twinned were:

Holes LP-026 & LP-030 on Section 49500N.


Holes LP-047 & LP-055 on Section 49550N.
Holes LP-045 & LP-056 on Section 49700N.
Holes GRA-1 & LP-024 on Section 49975N (off section hole, section looking 55 degrees).
Holes LP-002, LP-029 & LP-054 on Section 50080N (off section hole, section looking 55
degrees).

In the general the agreement between holes and drill programs was good.

1.23 Use of pre-2005 Data

Given the lack of detailed information on the methodologies used for sampling, assaying and QA/QC in
the Rio Bravo, Noranda, Augusta and SMP drill programs Micon wanted to conduct tests of the data prior
to their use in a resource estimate. Global Hunter has used an industry standard QA/QC system and
contracted its assaying to a modern accredited laboratory and Micon felt confident in using its data.
Because a lot of the Global Hunter 2005 drilling fills in around, and extends slightly beyond the previous
programs it has essentially sampled the same body of mineralization. It was felt that a statistical
comparison of the populations from all of the programs may lend some confidence that they had derived
results of similar quality.

Additionally, because some explorers had used hot acid leaches for the soluble copper assays, and
Global Hunter had used a cold leach assay method, it was necessary to determine whether there was a
material difference in the results.

Some copper wad and secondary sulphide minerals have limited solubility in room temperature sulphuric
acid but relatively high solubility in hot sulphuric acid. Normal SX-EW leach pads operate at ambient
temperature therefore, if a deposit contains a significant amount of these hot-soluble minerals, the assay
results derived from a hot acid assay would be biased relative to cold assay ones and their use could lead
to misleading conclusions in any mineral resource estimation. Micon prefers the use of cold soluble
assays as the basic assay method for exploration in such a deposit. However, other assay methods
performed in sequential leach studies can provide useful information about metallurgy and mineral types
present.

1.23.1 Assay Analysis, by Company

Micon sorted the assay data by company and examined the population statistics for the sample results in
the oxidized domain (Hennessey and Puritch, 2006). Additionally histograms of the assay classes were

52
also plotted by company. The oxidized domain was the only one with a significant amount of data in it and
so it was chosen for the examination.

The histograms and population statistics for the pre-2005 data showed similar distributions of assays to
the Global Hunter data, particularly from the Noranda and Tiger (Augusta) programs, where a majority of
the pre-2005 sampling occurs.

1.23.2 Assay Analysis by Domain

Micon sorted the assays by geological domain and examined the relationships between the total copper
and soluble copper assays with the use of scatter plots. There were 1,194 assay pairs in the oxidized
domain, 117 pairs in the mixed domain and 157 pairs in the unoxidized domain. Therefore the oxidized
domain was used as the principal test.

Scatter plots comparing the soluble copper and total copper assay results for the 1,194 assay pairs in the
oxidized domain (Hennessey and Puritch, 2006) show a single, tightly-clustered population of data
indicating that the difference between the assay laboratories and methodologies is not large.

1.23.3 Comparison of Hot and Cold Acid Assay Techniques

As a third test Micon took the assay pairs from the oxidized domain and sorted them by soluble copper
assay method. The assay pairs between 0.15% CuSol and 1.00% CuSol were plotted on a scatter plot
with different symbols used to identify the method. This reduced range was chosen to reflect a range of
grades likely to be seen during any potential production from the deposit and to provide more detail
through the resulting expanded scale. For the comparison 217 hot acid assay pairs and 177 cold acid
assay pairs were available.

Assay pairs show broadly similar distributions of assays between the two assay methods, with the cold
acid assays, on average, being slightly lower than the hot acid assay results. This is believed to indicate
that there are relatively low levels of the hot acid soluble minerals in the deposit.

There is some minor bias in the hot acid soluble copper assays relative to the cold acid ones. While it is
Micons opinion that this bias does not preclude the datas use in a resource estimate, the moderate
uncertainty that it places on grade estimation will likely prevent the resources from being categorized as
measured until there are many more cold acid assays in the database.

MINERAL PROCESSING AND METALLURGICAL TESTING


Two metallurgical tests have been conducted by previous operators on material from the Las Posadas
shear zone on the Property. The results, as presented by Sookochoff (2005), were summarized in the
Micon Resource Report (Hennessey and Puritch, 2006). The available records for metallurgical testwork
were found to be incomplete and the results were considered to be no longer current although they
clearly show the mineralization to be leachable in sulphuric acid.

At the time of the initial resource estimate (Hennessey and Puritch, 2006), Global Hunter had completed
no metallurgical testwork. Although as of the writing of the resource report, a consultant metallurgist had
been retained to advise the company on a program of work.

Global Hunter commissioned metallurgical test work to assist in evaluating the heap leach potential at Las
Posadas. This work, as presented by Scheffel (2008), is summarized below.

1.24 Recent Metallurgical Test Program

Scheffel (2008) prepared a Commercial Metallurgical Test Program proposal in May 2006 to assist in
evaluating the heap leach potential at Las Posadas. Centro de Investigacion Minera y Metalurgia

53
Tecnologias y Servicios (CIMM), a Santiago-based testing laboratory provided a commercial quote to
complete this test program in June 2006.

GHC drilled an additional 29 HQ diamond drill core holes totaling about 9050 m in 2007 to provide in-fill
drilling for resource definition and to provide the core necessary to complete the recommended test
program.

The initial test program envisioned a three-phased program:

Phase I - Bottle-roll testing to prove the level of acid-soluble copper extraction,

Phase II 2 m, small diameter column testing on archived core from earlier drilling programs to
provide the earliest possible information on the potential to heap leach this ore, and

Phase III Commercial depth, i.e., 6 m to 8 m, column testing, which could provide the necessary
engineering details required of a feasibility program provided the results proved positive.

Due to delays beyond the control of GHC, the program was delayed until after the core became available
in late 2007, so the test program was modified to eliminate the Phase II testing. A new proposal from
CIMM was provided July 11, 2007, Cotizacion UGMET 101074105, which forms the basis of the current
testing which GHC committed to in early 2008.

The Phase I bottle-roll testing began August 20, 2007 and was completed in November 2007. CIMM
issued its report, Informe Fase 1 - Proyecto 31-1014 Pruebas de Lixiviacion Acida en Botellas Agitadas
para Global Hunter Chile, Ltda, Proyecto Las Posadas, August 2008. The s preliminary conclusions from
these tests was presented in the Memorandum of November 30, 2007, resulting from a meeting in
Vancouver to review the core drilling results and recommend the composites for the tall column testing.
The conclusions regarding the bottle-roll test results were:

1. The ore may be a moderate to medium-high acid consumer depending on the ore grade, but the
nature of the samples are such that it is not clear how representative the various samples are of
the minable reserve.

A similar bottle-roll test program conducted on another project showed the bottle-roll acid
consumption was about 66% higher than the final tall-column test program. On that basis, the
indicated net acid consumption on a commercial basis may range from 23 to 28 kg acid per tonne
of ore treated.

Because of the high variability in regard to acid consumption versus crush size deposit-to-deposit,
it is best GH wait to achieve the final tall-column net acid consumption before finalizing this
estimate for LP.

2. The recovery against total copper averaged about 69%, but again this is highly dependent on the
grade and source of the sample and limited by the short leach time of the bottle-roll test, i.e. 72
hours.

3. The recovery of the 20 C acid-soluble copper ranged from about 80 to 95% with an average
closer to 90%. This suggests fairly good liberation of the oxide minerals at 2 mm. Only further
testing at the suggested commercial crush size of 12 mm and 19 mm can quantify how the
coarser ore will behave.

The bottle-roll results were sufficiently positive with respect to the high level of the acid-soluble copper
being recoverable, even though the acid consumption appeared moderate-to-medium-high, depending on
the ore grade, that it was concluded to proceed to the tall column test program.

54
The subsequent report finalized by CIMM and distributed in August 2008, confirms the overall preliminary
conclusions stated above regarding the Phase I bottle-roll tests.

They issued to Global Hunter a report entitled, Las Posadas Copper Oxide Deposit Preliminary Results
Tall Column Test Program in July 2008.

This report up-dates the above report and represents the final reporting on the Phase II, Tall Column Test
Program to include the final back-calculated head and ripios assaying and resulting final recovery.

Conclusions and recommendations:

The major objectives of this test program where achieved regarding the following:

Crush size sensitivity up to 15 mm,


The net acid consumption per tonne ore and the specific acid consumption in kg acid per kg
copper recovered,

The general level of recovery that can be expected in a commercial heap leach facility,

The general level of impurities that may be expected, and

The potential to use sea water if necessary.

There were no fatal flaws from a leaching and/or processing perspective that were discovered.

However, economic unit costs will be closely tied to achieving a moderately high soluble copper grade in
sufficient tonnage to justify the capital costs.

Recovery at a crush size up to P80 15 mm crush size will most likely be in the range of 80 % to 90 % of
the acid soluble copper for ore grades above 0.5% AsCu. Below this acid-soluble ore grade, the 5 %
sulfuric acid, 20 C, -hour digestion may not be sufficient to fairly represent the actual solubility for the
low acid-soluble assays near to the cut-off grade. Therefore, a grade versus recovery formula should be
applied to these assays in determining the recoverable copper for each ore block in the ore reserve
model.

Further column testing at a coarser crush size will be necessary to determine the recovery for secondary
or primary crush size, if this is deemed a potentially beneficial capital cost offset.

It is also recommended that optimization column tests be conducted if GHC advances the project to full
feasibility. Besides testing a coarser crush size, the iron behavior and optimal acid addition approach
must be better quantified.

The net acid consumption will be in the range of 45 kg per tonne to 50 kg per tonne with the specific
acid consumption being nearly 15 kg acid per kg copper recovery for an ore grade of 0.5 % AsCu. The
specific acid consumption is also highly sensitive to the AsCu grade and any block modeling must
include this relationship. An empirical acid consumption test should be conducted on appropriate
composites and included along with the AsCu ore grade in any block modeling.

There appear to be no impurities that could be overly problematic to processing, but there is indication the
iron level in PLS could be higher than typical if there is not tight control on the acid pre-treatment of the
ore. Further column testing in series would be necessary to ensure this behavior is fully appreciated in
advance of commencing a commercial leaching facility.

Sea water appears to be an acceptable process alternative if fresh ground water or surface water is not
available. However, the capital cost of such an operation will be higher.

55
MINERAL RESOURCE ESTIMATE
This resource estimate is an update to a 43-101 resource estimate completed for Global Hunter in 2006
(Hennessey and Puritch, 2006), the results of which were reported on June 09, 2006. The estimate was
prepared by Micon International Limited using a Whittle optimized pit shell at various copper prices.
Results are as follows:

Base Case Mineral Resources: $1.61 /lb copper at a cutoff of 0.16% CuS:

Indicated 8,490,000 tonnes grading 0.614% CuS (0.73% CuT) containing 114,900,000 pounds of
soluble copper (CuS)

Inferred 4,600,000 tonnes grading 0.489% CuS (0.561% CuT) containing 49,400,000 pounds of
soluble copper

All of the indicated resources fell within the oxidized domain while the inferred were found in both the
oxidized and mixed domains. No resources were found within the unoxidized domain.

GeoVector has been contracted by Global Hunter to provide an updated resource for the Project. To
complete the updated resource GeoVector assessed the raw database, and the resource modeling data
that was available from the 2006 resource estimate and incorporated the data from diamond drill holes
completed by Global Hunter during the 2007 drill program.

The update Indicated and Inferred Mineral Resource was estimated by Allan Armitage, Ph.D., P. Geol.,
and Joe Campbell, BSc, P. Geo., of GeoVector. Armitage and Campbell are independent Qualified
Persons as defined by NI 43-101. Practices consistent with CIM (2005) were applied to the generation of
the resource estimate. There are no mineral reserves estimated for the Property at this time.

Inverse distances squared interpolation restricted to mineralized domains were used to estimate gold
grades (g/t) into the block models. Indicated and Inferred Mineral Resources are reported in summary
tables in Section 14.9 below, consistent with CIM definitions required by NI 43-101 (CIM, 2005).

1.25 Drill File Preparation

The Las Posadas updated mineral resource estimate is based on 47 Reverse Circulation (RC) and 35
diamond drill holes (NQ) totaling 18,884 metres, with 8,596 assays (Table 13). Holes were drilled by
Global Hunter and others in six drill campaigns conducted between 1994 and 2007 (Table 10 and 11).
This includes an additional 29 diamond drill holes totalling 9,038 metres completed on the Deposit in
2007. A total of 4,052 assays were collected from these 2007 drill holes.
The 82 drill holes completed in the Deposit (Figure 6) are spaced primarily 50 to 100 metres apart along a
strike length of approximately 1700 metres. The drill holes primarily tested to a vertical depth of 150 to
200 metres, with a few holes testing to a vertical depth of 300 metres in the central parts of the Deposit.
In order to complete the resource, GeoVector was provided with a drill hole database which included
collar locations, down hole survey data, assay data, lithology data and specific gravity (SG) data (Table
14). A preliminary resource model and a surface model separating the oxide and sulphide mineralization
was provided to GeoVector. As well, a topography surface and an overburden surface file were provided.
The database was checked for errors. The assay database was checked for sample overlaps and gaps in
intervals. The database was checked for typographical errors in assay values and supporting information
on source of assay values was completed. Generally the database was in good shape and was accepted
by GeoVector as is. Verifications were also carried out on drill hole locations, down hole surveys,
lithology, SG, and topography information.

56
Figure 6 Isometric view looking northwest showing the drill hole distribution in the
Deposit area.

Table 13 Summary of the drill hole data used in the resource modeling and resource
calculation

Number of drill holes 82


Total metres of drilling 18,884
Total number of litholology intervals 982
Total number of drill assay samples 8,596
Total number of SG samples 2,505
Total number of drill hole survey points (2007 holes) 167
Total number of 2 metre compoites 9,465

1.26 Resource Modelling and Wireframing

For the 2006 resource estimate, a geological domain model was constructed to control grade
interpolation (Hennessey and Puritch, 2006). Three domains were created as follows: oxidized, mixed
and unoxidized. The oxidized domain occupies a dominant portion (the upper portion) of the overall
package of mineralization, while the mixed domain occupies a relatively small portion of the lower
mineralization package. The unoxidized domain lies below this and is open at depth.

Domain boundaries were determined by observations of lithology, mineralization style and structure from
visual inspection of drill hole sections and drill logs although the hanging wall and foot wall of the
mineralized domains were influenced by a grade boundary interpretation. There were 30 drill sections
created, spaced at 50-m intervals over a strike length of 1,450 m.

57
The domains were physically created by computer screen, 3D digitizing on drill hole sections in Gemcom.
On each section, polyline interpretations of the mineralized shear zone were digitized from drill hole to
drill hole, following the overall trends of mineralization from adjacent sections. The mineralized zone was
separated into the oxidized, mixed and unoxidized domains established to represent the three styles of
mineralization in the deposit and to prevent mixing of data and grade from one domain into the other.

The polylines from each section and domain were wireframed in Gemcom into 3D solids. The resulting
domains were used for rock coding and grade interpolation purposes.

For the updated resource estimate GeoVector was provided with updated resource models and a surface
model separating the oxide and sulphide mineralization. As well, a topography surface and an overburden
surface file were provided. It was decided by Global Hunter that a mixed zone not be broken out for the
updated resource. Global Hunter concluded based on the 2006 resource that the mixed zone formed a
minor portion of the overall resource and the grades for CuS and CuT were not much different from the
oxide zone grades. A mixed zone was not broken out during the 2007 drill logging.

For the updated resource GeoVector reviewed the oxide and sulphide resource models, and overburden
surface on 50 metre sections in Gemcom GEMS 6.3 software. After making minor revisions, the models
were accepted as representative of the Deposit (Figure 7). The Deposit extends for 1550 metres, trends
north-south and dips approximately 70 to the west. The oxide zone extends for up to 200 metres below
surface and mineralization has been modeled to a maximum depth of 400 metres below surface.

Figure 7 Isometric view looking northeast showing the Deposit oxide and sulphide
resource models.

58
1.27 Composites

A total of 8,596 drill assay samples were available from the drilling on the Deposit. Average width of drill
core samples is 1.88 metres, within a range of 0.15 metres to 5.03 metres. Of the total assay population
88% of the samples were 1.5 to 2.0 metres in length. Only 61 assay samples (0.37%) were greater than 2
metres. As a result, 2 metre composites were used for the resource. Composites were generated starting
from the collar of each hole and totalled 9,465. From this, a composite population was generated and
constrained to the resource model which totalled 2,527 composite samples (Table 15) including 2,149
samples in the oxide model and 369 samples in the sulphide model.

Table 14 Summary of the drill hole assay and composite data for drill holes within
the Deposit area.

Assay Data CuT (%) CuS (%)


Number of samples 8,596 8,596
Minimum value 0 0
Maximum value 11.63 10.63
Mean 0.19 0.09
Median 0.05 0.01
Variance 0.30 0.14
Standard Deviation 0.54 0.38
Coefficient of variation 2.81 4.08
99 Percentile 2.42 1.64

Composite Data CuT (%) CuS (%)


Number of samples 9,465 9,465
Minimum value 0 0
Maximum value 9.57 6.64
Mean 0.15 0.07
Median 0.03 0.01
Variance 0.21 0.09
Standard Deviation 0.46 0.31
Coefficient of variation 2.99 4.29
99 Percentile 2.05 1.41

59
Table 15 Summary composite data from within the oxide and sulphide resource
models.

Oxide Resource Model CuT (%) CuS (%)


Number of samples 2,149 2,149
Minimum value 0 0
Maximum value 9.57 6.64
Mean 0.47 0.28
Median 0.22 0.08
Variance 0.54 0.32
Standard Deviation 0.74 0.56
Coefficient of variation 1.58 2.03
99 Percentile 3.76 2.63

Sulphide Resource Model CuT (%) CuS (%)


Number of samples 369 369
Minimum value 0 0
Maximum value 8.46 1.59
Mean 0.53 0.05
Median 0.20 0.02
Variance 1.03 0.01
Standard Deviation 1.01 0.11
Coefficient of variation 1.91 2.39
99 Percentile 6.44 0.35

1.28 Grade Capping

Based on a statistical analysis of the composite database from within each resource model, it was
decided that no capping was required on the composite populations to limit high values (Table 15).
Histograms of the data indicate a log normal distribution for both CuT and CuS with very few outliers
within the database. Analyses of the spatial location of outlier samples and the sample values proximal to
them led GeoVector to believe that the high values were legitimate parts of the population and that the
impact of including these high composite values uncut would be negligible to the overall resource
estimate.

1.29 Specific Gravity

The specific gravity (SG) values used for the initial resource (Hennessey and Puritch, 2006) at Las
Posadas were taken from measurements made by Global Hunter geological personnel on 222 samples
taken from 5 drill holes that fell within the constraining domains. Due to the sparse nature of this data,
average domain bulk densities were coded to the density model. The oxidized and mixed domains were
3 3
coded with a bulk specific gravity of 2.7 t/m , while the unoxidized domain was coded with 3.0 t/m .

During the 2007 drill program, Global Hunter completed an SG evaluation of all assay samples collected
from drill holes LP-066 to LP-087. The database supplied to GeoVector included 2,505 SG samples
including 382 samples from within the oxide resource model and 159 samples within the sulphide
resource model. The SG data was analysed based on samples which occur within or outside of the
mineralized domains. The average value for the oxide resource model is 2.77t/m3 and for the sulphide
resource model a value of 2.89t/m3. Samples which fall outside of the mineralized domains averaged 2.82

60
t/m3 for un-mineralized, non-oxidized rocks (1153 samples) and 2.73 t/m3 for un-mineralized oxidized
rocks (811 samples).

1.30 Block Modeling

For the 2012 resource update, a block model (Figure 8) was constructed using 5 m x 5 m x 2 m blocks in
the x, y, and z direction respectively. The block model area was created within UTM coordinate with an
origin at 49800E, 48750N, and an elevation of 315m above sea level. Grades for CuS and CuT were
2
interpolated into the blocks by the inverse distance squared (ID ) method using a minimum of 4 and
maximum of 20 composites (within a minimum of two drill holes) to generate block grades in the Indicated
category and a minimum of 2 and maximum of 20 composites to generate block grades in the Inferred
category.

A 3D semi-variography analysis of mineralized points was completed for each of the mineralized
domains. The analysis did not effectively design an acceptable search ellipse. As a result, a search
ellipse was interpreted based on drill hole (Data) spacing, and orientation and size of the resource
models. The long axis of the search ellipse was oriented to reflect the observed preferential long axis
(geological strike trend) of the resource model. The short Y direction reflects the model in the direction
normal to the longer axis. The dip axis of the search ellipse was set to reflect the observed trend of the
mineralization down dip.

For the Indicated resource, the search ellipse was set at 75 x 37.5 x 75 in the X, Y, Z direction
respectively; for the Inferred resource, the search ellipse was set at 200 x 75 x 200 in the X, Y, Z direction
respectively. The Principal Azimuth for the search ellipse is oriented at -270, the Principal dip is oriented
at -70 and the Intermediate azimuth is oriented at -90.

Figure 8 Isometric view looking northeast showing the Deposit oxide and sulphide
resource models.

61
1.31 Model Validation

The total volume of the blocks in each resource model, at a 0 cut-off grade value compared to the volume
of each wireframe model was essentially identical. The size of the search ellipse and the number of
samples used to interpolate grade achieved the desired effect of filling the resource models and very few
blocks had zero grade interpolated into them.
2
Because ID interpolation was used, the drill hole intersection grades would be expected to show good
correlation with the modelled block grades. Visual checks of block grades of CuT and CuS against the
composite data on vertical section and in 3D showed excellent correlation between block grades and drill
intersections. The oxide and sulphide resource models are considered valid.

1.32 Resource Classification

The Mineral Resource estimate is classified in accordance with the CIM Definition Standards (2005). The
confidence classification is based on an understanding of geological controls of the mineralization, and
the drill hole pierce point spacing in the resource area. The resource estimate in areas with drill spacing
of less than ~80 m is classified as Indicated. The remainder of the total resource is classified as Inferred
due to the sparse drill density (> 100 metre) in parts of the resource area.

1.33 Resource Reporting

The grade and tonnage estimates contained herein are classified as Indicated or Inferred Resource given
CIM definition Standards for Mineral Resources and Mineral Reserves (2005). As such, it is understood
that:

Inferred Mineral Resource:

An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality
can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but
not verified, geological and grade continuity. The estimate is based on limited information and sampling
gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and
drill holes.

Due to the uncertainty that may be attached to Inferred Mineral Resources, it cannot be assumed that all
or any part of an Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral
Resource as a result of continued exploration. Confidence in the estimate is insufficient to allow the
meaningful application of technical and economic parameters or to enable an evaluation of economic
viability worthy of public disclosure. Inferred Mineral Resources must be excluded from estimates forming
the basis of feasibility or other economic studies.

Indicated Mineral Resource

An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality,
densities, shape and physical characteristics can be estimated with a level of confidence sufficient to
allow the appropriate application of technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade
continuity to be reasonably assumed.

Mineralization may be classified as an Indicated Mineral Resource by the Qualified Person when the
nature, quality, quantity and distribution of data are such as to allow confident interpretation of the
geological framework and to reasonably assume the continuity of mineralization. The Qualified Person
must recognize the importance of the Indicated Mineral Resource category to the advancement of the

62
feasibility of the project. An Indicated Mineral Resource estimate is of sufficient quality to support a
Preliminary Feasibility Study which can serve as the basis for major development decisions.

GeoVector has estimated a range of Indicated and Inferred resources at various Total Copper (CuT) cut-
off grades for the oxide and sulphide resource models (Table 16). The Las Posadas resource is reported
at a 0.20% Total Cu cut-off grade.

Las Posadas Mineral Resources at a cut-off of 0.20% CuT:

Oxide Zone
Indicated: 23.2 Mt grading 0.59% CuT (0.36% CuS) containing 299.1 Mlb CuT including 184.0
Mlb CuS.

Inferred: 2.2 Mt grading 0.41% CuT (0.24% CuS) containing 19.4 Mlb CuT including 11.7 Mlb
CuS

Sulphide Zone
Indicated: 4.0 Mt grading 0.57% CuT containing 50.7 Mlb CuT.

Inferred: 14.3 Mt grading 0.50% CuT containing 158.0 Mlb CuT.

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political,
or other relevant factors that could materially affect the mineral resource estimate herein.

63
Table 16 Las Posadas Resource

Oxide Zone

Total Cu Indicated Inferred


(%) CuT (%) CuS (%) CuT (%) CuS (%)
Tonnes Tonnes
Cut-off Grade lbs Grade lbs Grade lbs Grade lbs

0.10 % 28,438,896 0.51 317,005,277 0.30 190,302,869 2,937,446 0.34 21,959,603 0.19 12,408,826

0.15 % 26,116,251 0.54 310,545,714 0.33 188,304,539 2,611,971 0.37 21,058,011 0.21 12,145,408

0.20 % 23,157,060 0.59 299,097,620 0.36 183,991,873 2,174,727 0.41 19,417,474 0.24 11,653,387

0.25 % 20,036,240 0.64 283,625,224 0.40 176,959,794 1,524,192 0.48 16,198,588 0.30 10,203,924

0.30 % 17,132,310 0.70 266,076,803 0.45 168,401,437 1,131,129 0.55 13,827,180 0.37 9,236,329

0.35 % 14,696,511 0.77 248,667,128 0.49 159,364,589 721,862 0.69 10,917,818 0.49 7,779,524

0.40 % 12,589,372 0.83 231,289,565 0.54 150,130,852 551,645 0.78 9,493,615 0.57 6,963,960

Sulphide Zone

Total Cu Indicated Inferred


(%) CuT (%) CuT (%)
Tonnes Tonnes
Cut-off Grade lbs Grade lbs
0.10 % 5,341,114 0.47 55,079,350 16,918,882 0.45 167,682,461
0.15 % 4,819,246 0.51 53,643,194 16,060,182 0.47 165,133,629
0.20 % 4,038,383 0.57 50,676,696 14,274,363 0.50 158,351,221
0.25 % 3,552,109 0.62 48,276,625 10,788,595 0.59 140,443,308
0.30 % 3,112,095 0.67 45,616,671 7,333,713 0.74 120,323,097
0.35 % 2,741,607 0.71 42,964,514 6,688,857 0.78 115,655,285
0.40 % 2,259,212 0.78 38,970,625 6,078,349 0.83 110,631,973
0.50 % 1,743,853 0.88 33,815,833 2,999,079 1.20 79,184,266
0.70 % 1,018,667 1.08 24,309,469 1,886,231 1.57 65,462,520
1.0 % 424,364 1.45 13,579,604 1,280,571 1.91 53,827,992

64
1.34 Pit Optimization and Economic Evaluation

Global Hunter has requested that GeoVector complete a preliminary evaluation of the economic viability
of the Las Posadas Deposit. In order to do this, GeoVector has made the assumption that open pit mining
with processing by heap leaching of soluble copper would be employed to exploit the resource. To
optimise the Deposit, Gemcom Whittle was used to identify the pit that will maximise the cash flow from
the operation. The results of the Whittle pit optimisation may also help target areas for future drilling.

The base case optimisation utilises the resource model and inputs as set out in Table 17. The base case
Whittle pit optimisation was completed at a copper price of $3.25/lb and a recovery rate of 80% of soluble
copper. The copper price of $3.25/lb approximates the 3 year trailing average (2009-2011). The recovery
rate of 80% CuS is based on recent metallurgical test work completed by Global Hunter. Pit design, and
capital and operating costs were provided by Global Hunter and approved by GeoVector.

Results from the base case optimization are tabulated in Table 18 and presented in Figure 9. Based on
the resource model and inputs at the time of optimization, including a $3.25/lb copper price, it was
identified that 10.4 Mt at a grade of 0.575% CuS for a total of 105.2 Mlbs of CuS would be recovered from
an open pit. A strip ratio is in the order of 3.23 (~3:1). A mine life of 3.75 years is based on an estimated
mill rate of 8,500 tpd. The pit results in a discounted cash flow of $79.6 million. All of the material within
the pit fell within the oxidized domain, and approximately 94% of the material within the pit is categorized
as Indicated mineral resource.

GeoVector was also asked to investigate the sensitivity of the economic viability of the Deposit to
changing copper price. Additional Whittle pit runs were completed at copper prices of $3.00, $3.50 and
$3.75. A copper price of $3.75 approximates the 24 month trailing average. The results of the sensitivity
analysis is presented it Table 19 and Figures 10-12. As is expected, an increase in the copper price
results in an increase in the mine life, a decrease in the strip ratio, and an increase in pounds of soluble
copper produced, as well as improved discounted cash flow and improved internal rate of return.

65
Table 17 Whittle Pit Optimisation Parameters.

Bench Height used or Reblocking used


Original Block Size 5m x 5m x 2m
Reblocking Size of Blocks 10m x 10m x 2m

Slope used for Zone Type:


Overburden 30
Oxyde 48
Sulphide 48

Density within Block Model (t/m3)


1.80
2.77 (ore) & 2.74 (waste)
2.89 (ore) & 2.81 (waste)

Mining Cost: (Tonne or BCM)


Mining Recovery Fraction Used: 1.00
Mining Dilution Fraction: 1.00
Overburden Mining CAF (for different rock type) $0.90
Ore Rock Mining CAF (for different rock type) $2.50
Waste Rock Mining CAF (for different rock type) $2.50

Processing Cost (/Tonne)


Treatment Cost $7.16
General and Administrative Cost $1.25

Overall Recovery 80%

Selling Cost
Copper Price (36 month trailing average price) $3.25/lb

Optimization:
# of nested pit shells 86

Initial Capital Cost $75,000,000.00


Terminal Value $0.00
Replacement Capital Costs $0.00
Discount Rate per period (%) ( in years ) 5.00%

Mining Limit (tonne)


Processing Method Limits (Tonne) 2,762,500 tpy
8,500 tpd

66
Table 18 Results of the Base Case and Sensitivity Analysis Whittle Pit Optimisation
Results.

Base Case Sensitivity Analysis


Copper Price per lb $3.25 $3.00 $3.50 $3.75
Pit No. 36 36 36 36
Mine Life (years) 3.75 3.38 4.33 4.66
Strip Ratio 3.23 3.19 2.97 2.88
Total Mined Rock 43,815,197 39,108,501 47,457,772 49,804,121
Waste Mined 33,442,256 29,777,594 35,475,918 36,918,886
Process Tonnes 10,373,117 9,331,064 11,982,056 12,885,441
CuS (%) Milled 0.575 0.602 0.53 0.501
CuS (%) Recovered 0.460 0.482 0.424 0.401
CuS (lbs) Insitu 131,494,299 123,839,007 140,002,895 142,320,289
CuS (lbs) Recovered 105,195,439 99,071,206 112,002,316 113,856,231
Discounted Cash Flow
$ 79,648,000.00 $ 56,601,000.00 $ 103,784,653.00 $ 128,822,880.00
(Best)
Internal Rate of Return
75.4 57.5 89.6 104.29
% (Best)

Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA
Is preliminary in nature, and is based partially on Inferred mineral resources that are considered too
speculative geologically to have the economic considerations applied to them that would enable them to
be categorized as mineral reserves. There is no certainty that the PEA will be realized.

67
Figure 9 Results of Whittle Pit Optimisation at $3.25/lb Copper Price for the Las
Posadas Deposit.

Discounted Cash Flow (Best)

Pit 36

68
Figure 10 Results of Whittle Pit Optimisation at $3.00/lb Copper Price for the Las Posadas
Deposit.

Discounted Cash Flow (Best)

Pit 36

69
Figure 11 Results of Whittle Pit Optimisation at $3.50/lb Copper Price for the Las
Posadas Deposit.

Discounted Cash Flow (Best)

Pit 36

70
Figure 12 Results of Whittle Pit Optimisation at $3.75/lb Copper Price for the Las
Posadas Deposit.

Discounted Cash Flow (Best)

Pit 36

71
ADJACENT PROPERTIES

There is no information on adjacent properties necessary to make the technical report understandable
and not misleading.

OTHER RELEVANT DATA AND INFORMATION


There is no other relevant data or information available that is necessary to make the technical report
understandable and not misleading.

72
INTERPRETATION AND CONCLUSIONS
The Property was initially the subject of a National Instrument 43-101 (NI 43-101) Technical Report for
Global Hunter. The report described previous exploration activities completed by prior exploration groups
and opined on a proposed mineral exploration program consisting primarily of reverse circulation (RC)
and diamond drilling on the Deposit. Global Hunter completed a Phase I exploration program in 2005
and retained Micon International Limited (Micon) to prepare a NI 43-101-compliant mineral resource
estimate for the Deposit using the drill results of the 2005 and previous programs.

Micon used this database and Global Hunters acquired knowledge of, and geological model for, the
Deposit to estimate a mineral resource for the Deposit after a due diligence review. A summary of the
mineral resources for the Deposit, as determined by Micon, are set out below. The estimate was current
as of April 16, 2006.

Las Posadas Mineral Resource Summary (Micon):

Base Case Mineral Resources: $1.61 /lb copper at a cutoff of 0.16% CuS:

Indicated 8,490,000 tonnes grading 0.614% CuS (0.73% CuT) containing 114,900,000 pounds of
soluble copper (CuS)

Inferred 4,600,000 tonnes grading 0.489% CuS (0.561% CuT) containing 49,400,000 pounds of
soluble copper

All of the indicated resources fell within the oxidized domain while the inferred were found in both the
oxidized and mixed domains. No resources were found within the unoxidized domain.

Global Hunter drilled an additional 29 diamond drill holes totalling 9,038.45 m during the 2007 exploration
program. The primary objective for the Phase II program was to further define the resource and
economics of the Deposit. The Company planned to use the results of the 2007 Phase II program to
complete a revised NI 43-101 resource calculation, which is the basis for this report.

GeoVector Management Inc. (GeoVector) was contracted by Global Hunter to complete an updated
resource estimate for the Deposit and to prepare a technical report on it in compliance with the
requirements of NI 43-101. GeoVector has estimated a range of Indicated and Inferred resources at
various Total Copper (CuT) cut-off grades for an oxide and sulphide resource model. The Las Posadas
resource is reported at a 0.20% Total Cu cut-off grade.

Las Posadas Mineral Resources at a cut-off of 0.20% CuT (GeoVector):

Oxide Zone
Indicated: 23.2 Mt grading 0.59% CuT (0.36% CuS) containing 299.1 Mlb CuT including 184.0
Mlb CuS.

Inferred: 2.2 Mt grading 0.41% CuT (0.24% CuS) containing 19.4 Mlb CuT including 11.7 Mlb
CuS

Sulphide Zone
Indicated: 4.0 Mt grading 0.57% CuT containing 50.7 Mlb CuT.

Inferred: 14.3 Mt grading 0.50% CuT containing 158.0 Mlb CuT.

The Las Posadas updated mineral resource estimate is based on 47 Reverse Circulation (RC) and 35
diamond drill holes (NQ) totaling 18,884 metres, with 8,596 assays. Holes were drilled by Global Hunter
and others in six drill campaigns conducted between 1994 and 2007. These 82 drill holes are spaced

73
primarily 50 to 100 metres apart along a strike length of approximately 1700 metres. The drill holes
primarily tested to a vertical depth of 150 to 200 metres, with a few holes testing to a vertical depth of 300
metres in the central parts of the deposit.

GeoVector completed a preliminary evaluation of the economic viability of the Las Posadas Deposit. In
order to do this, GeoVector made the assumption that open pit mining with processing by heap leaching
of soluble copper would be employed to exploit the resource. To optimise the Deposit, Gemcom Whittle
was used to identify the pit that will maximise the cash flow from the operation. The results of the Whittle
pit optimisation may also help target areas for future drilling.

The base case Whittle pit optimisation was completed at a copper price of $3.25/lb and a recovery rate of
80% of soluble copper. The copper price of $3.25/lb approximates the 3 year trailing average (2009-
2011). The recovery rate of 80% CuS is based on recent metallurgical test work completed by Global
Hunter. Pit design, and capital and operating costs were provided by Global Hunter and approved by
GeoVector.

Based on the resource model and inputs at the time of optimization, including a $3.25/lb copper price, it
was identified that 10.4 Mt at a grade of 0.575 CuS for a total of 131.5 Mlbs of CuS would be extracted
from an open pit. A strip ratio is in the order of 3.23 (~3:1). A mine life of 3.75 years is based on an
estimated mill rate of 8,500 tpd. The pit results in a discounted cash flow of $79.6 million.

As a test to the sensitivity of the economic viability of the Deposit to changing copper price, additional
Whittle pit runs were completed at copper prices of $3.00, $3.50 and $3.75. As is expected, an increase
in the copper price resulted in an increase in the mine life, a decrease in the strip ratio, and an increase in
pounds of soluble copper produced, as well as improved discounted cash flow and an improved internal
rate of return.

RECOMMENDATIONS

The technical report and subsequent economic evaluation demonstrates that the Deposit has sufficient
value to support a decision to advance to a pre-feasibility (PFS). The essential objective of the PFS will
be to confirm that a potentially viable project worthy of further examination in feasibility study (FS) exists.
This will involve identifying and evaluating obstacles to the project, collecting additional information and
examining and selecting between development alternatives.

It is recommended that the following areas are addressed in the PFS as they have the greatest potential
to impact project outcomes.

Carry out infill drilling of the deposits in the early stage of the PFS to ensure that sufficient Inferred
Resources are promoted to Measured and Indicated categories to support the decision to proceed to FS.
An initial program of six to eight large diameter, infill diamond drill holes drilled to approximately 200
metres depth should be completed. This work will test the variability between drill holes spaced at 100
metre, 50 metre and 35 metres respectively and should provide sufficient material for metallurgical
testwork.

Maintain a focus on metallurgical and materials testwork.

Carry out the following work related to open pit mining:

Bring all leach pad material within the pit boundaries to Indicated or Measured resource
categories in order to allow the tonnages to be used in the Pre-Feasibility study.

Undertake ARD testwork on all expected waste materials to ensure that no longterm waste
storage issues exist.

74
Carry out geotechnical test work on all the pit areas as well as foundations of the proposed waste
dump locations, considering different rock types, wall slope orientations, and potential faulting.

Develop rock strength parameters suitable for accurate blasting estimation and crusher design.

Assemble a comprehensive cost database for labor, explosives and equipment.

Carry out trade-off studies pertaining to the electrification of the pit for the shovels and drills for
operating cost optimizations.

Carry out PFS-level investigations and engineering studies into: Important infrastructure aspects,
specifically power supply, water supply, transport and logistics.

hydrological, hydrogeological and geotechnical aspects of the site to facilitate detailed design and
cost estimating.

Advance environmental and social baselining to ensure that sufficient data is gathered in advance
of the ESIA process starting in earnest (minimum 12 months required).

Other shear zones should be tested by reverse circulation or diamond drilling. If successful, these targets
could be developed into additional mineral resources.

75
REFERENCES

Bogdanic, T., (1998); Geologic Report on the Los Choros Project, for SMP S.A. Haynes S., (1975); The
Tectonics of Central and Northern Chile, from PanAmerican Resources web page
(www.panamericanresources.com)

Hennessey, B.T. and Puritch, E. (1996); A Mineral Resource Estimate for the Las Posadas Deposit, La
Corona De Cobre Project, Near La Serena, Region IV, Chile, A Technical Report prepared for
Global Hunter Corp. and filed on SEDAR (www.sedar.com) 92p.

Hitzman, M., (2000); Iron Oxide-Cu-Au Deposits: What, Where, When, And Why: In Porter, T. M., (Ed.),
Hydrothermal Iron Oxide Copper-Gold And Related Deposits: A Global Perspective. Australian
Mineral Foundation, Adelaide, pp. 9-25.

Leahey, T. A., (1997); Exploration Resource Analysis for Las Posadas Project, Peru (sic, Corrected to
Region IV, Chile in a cover letter)), A report prepared for Golden Bear Minerals Inc., Newport,
Australia, 6p.

McIntyre, J., (2000); Memorandum of Information, Corona de Cobre Project, for Latin American Copper
Group.

Savell, M., August, (1996); Interoffice Memo Re: Las Posadas - Phase II Drill Program Results, for
Noranda Exploracin Chile Ltda.

Savell, M., (1996); Exploration Report on the Las Posadas Project, for Noranda Exploracin Chile Ltda.

Savell, M., November (1996); Exploration Report on the Las Posadas Project - Update, for Noranda
Exploracin Chile Ltda.

Sillitoe, R. H., (2003); Iron Oxide-Copper-Gold Deposits: An Andean View: Mineralium Deposita, v.38, p.
787-812.

Sookochoff, L. (2005); Technical Report And Proposed Exploration For La Corona De Cobre Property,
Region IV, Chile, A Technical Report prepared for Global Hunter Corp. 59p.

Taylor, G. K., (1999); Paleomagnetism Applied To Magnetic Anomaly Interpretation: A New Twist To The
Search For Mineralization In Northern Chile: Mineralium Deposita: v. 35, p. 377-384.

76
DATED AND SIGNATURE PAGE
This report titled Technical Report on the Updated Resource Estimate and Economic Evaluation for the
Las Posadas Copper Deposit, La Corona De Cobre Project Located near La Serena, Region IV, Chile,
dated July 31, 2012 (the Technical Report) was prepared and signed by the following authors:

Dated effective October 22, 2012

Signed by:

Allan Armitage, Ph. D., P. Geol.

Joe Campbell, B.Sc., P. Geo.

77
CERTIFICATES OF AUTHORS

78
QP CERTIFICATE - ALLAN ARMITAGE
To Accompany the Report titled "Updated Resource Estimate and Preliminary Economic
Assessment for the Las Posadas Copper Deposit, La Corona De Cobre Project" Located near La
Serena, Region lV, Chile, dated October 22nd,2012lthe "Technical Report").

l, Allan E. Armitage, Ph. D., P. Geol. of #35, 1425 Lamey's Mill Road, Vancouver, British Columbia,
hereby certify that:

1. I am a consulting geologist with GeoVector Management lnc., 10 Green Street Suite 312 Ottawa,
Ontario, Canada l<2J 3ZG

2. I am a graduate of Acadia University having obtained the degree of Bachelor of Science - Honours
in Geology in 1989; I am a graduate of Laurentian University having obtained the degree of
Masters of Science in Geology in 1992; I am a graduate of the University of Western Ontario
having obtained a Doctor of Philosophy in Geology in 1998.

3. I have been employed as a geologist for every field season (May - October) from 1987 to 1996. I

have been continuously employed as a geologist since March of 1997.

4. I have been involved in mineral exploration and resource modeling for gold, silver, copper, lead,
zinc, nickel, uranium and diamonds in Canada, Mexico, Honduras, Bolivia, Chili, and the
Philippines at the grass roots to advanced exploration stage, including resource estimation since
1991.

I am a member of the Association of Professional Engineers, Geologists and Geophysicists of


Alberta and use the title of Professional Geologist (P.Geol.).

6. I have read the definition of "Qualified Person" set out in National lnstrument 43-101('Nl 43-101')
and certify that by reason of my education, affiliation of my professional association and past
relevant work experience, I fulfill the requirements to be a "Qualified Person" for the purposes of Nl
43-101.

7. I am responsible for the preparation of all sections of the Technical Report.

B. I personally inspected the Property and drill core during a property visit from the 11lh to the 12rh of
June,2012.

9. I have had no prior involvement with the property that is the subject of the Technical Report.

10. I am independent of Global Hunter Corp. as defined by Section 1.5 of Nl 43-101.

11. As of the date of this certificate, to the best of my knowledge, information and belief, the Technical
Report contains all scientific and technical information that is required to be disclosed to make the
Technical Report not misleading.

12. I have read Nl 43-101 and Form 43-101F1 (the "Form"), and the Technical has been
prepared in compliance with Nl 43-101and the Form.

13.

Armitage,