BACKGROUND

• Located in the Taviche silver-gold district, 43 kilometers south of the city of Oaxaca in southern Mexico.

• High-grade silver/gold mineralization is hosted by a system of epithermal quartz veins and hydrothermal breccias.

• Vein system is exposed for 3 kilometers on the surface, within Continuum’s property limits.

• Historically, only 800 meters of strike length, to a maxi- mum depth of just 130 meters below the surface, have been exploited.

• Two historic exploration drill holes were completed in 2001 beneath the lowest mine workings, and confirmed the depth potential of the ore body. One of the holes intersected a 25.6 meter core interval grading 3.25 gpt Au and 436 gpt Ag, within which a 12.4 meter interval aver- aged 5.66 gpt Au and 730 gpt Ag. The second hole inter- sected 6.5 meters averaging 3.31 gpt Au and 540 gpt Ag.

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EXPLORATION APPROACH AND OBJECTIVES

• The vein system at San Jose can be traced at surface for a dis- tance of 3 kilometers, all within the limits of Continuum’s land position. In addition to the underground ore accessed by the Trinidad shaft, other mineralized centers occur along the strike extent of the vein system to the south (for example San Ignacio, Corona, etc.). Our principal goal is to indicate, by drilling, sufficient ore at San Jose to support a viable under ground mining operation.

• Our approach over the past year has been to drill test the Trinidad ore shoot (13 surface holes), while mapping and sampling the accessible underground workings in detail.

• Our objective has been to develop a geologic model for the Trinidad mineralization, from which we can better plan our future exploration of the additional centers of gold-silver mineralization, along the southern extension of the hydrothermal system.

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ACTIVITIES AND RESULTS

• Surface mapping and geochemistry have shown the hydrothermal system to be exposed continuously along the 3-kilometer length of the property.

• Surface diamond drilling, focused on the Trinidad ore shoot, has outlined a much larger body of gold-silver mineralization than indicated by historical
underground mining.

• Underground mapping and sampling of the new Level 6 workings has allowed us to identify the nature of the mineralization in detail, and to identify three distinct hosts of gold and silver: the N-S Fortuna vein, the SE-
trending Bonanza vein, and a wide stockwork zone between them.

• Initial metallurgical tests have shown excellent recoveries of 97% for both gold and silver.

• Results from drilling and underground sampling were used in a preliminary resource calculation for the Trinidad ore shoot only.

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NEXT STEPS

• Infill drilling program on the Trinidad ore shoot to increase the level of confidence in the ore reserves.

• Drill test numerous target zones along the southern strike of the system with the objective of identifying additional ore shoots.

• Carry out additional metallurgical testing and other pre-feasibility studies as a basis for final feasibility.