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| UPDATE ON ACQUISITION OF PICO MACHAY PROJECT - PERU |
| December 8, 2003 |
| On May 26, 2003 the Company announced that it had entered into an agreement
pursuant to which it has agreed to purchase 100% of the share capital of Minera
Calipuy S.A.C., a private company constituted under Peruvian law by issuing a total
of 2,400,000 million common shares in the Company. The acquisition is subject to
TSX Venture Exchange approval. Pursuant to TSX Venture Exchange policies the
Company is required to appoint a sponsoring broker for the trans action. The Company
is pleased to announce that it has appointed Dundee Securities Corporation in Toronto
to act as sponsoring broker.
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