ECUADOR

COLOMBIA

BRASIL

BOLIVIA

Proyecto
La Virgen

CHILE

ECUADOR

Minera San Simon is a gold producer with 3

PIURA

producing areas and 8 exploration targets

on a disseminated gold deposit with high
oxidation. (2M oz. resources)

Piura

Chiclayo

CAJAMARCA

Chachapoyas

Cajamarca

LA LIBERTAD
Trujillo

Proyecto La Virgen

With a $25 million capital injection, sales

Chimbote

will increase up to a 220,000 oz. run rate

during the 12 month period.

The

mining concession has over 3200

hectacres, located in the best producing
gold corridor of South America.

545Km
Lima

Located approx. 167 Km. from Trujillo, La

Libertad. Trujillo is located 545 Km from

Lima.

management has put into production

Minera San Simon (2002) with over 90,000
oz/yr and Comarsa (1992) 140,000 oz/yr.

Ounces Au

With over 20 years in the mining industry,

GOLD ANNUAL PRODUCTION

Production with financing

Historical production (Oz.)
Expected production under current conditions

GDP growth 9.8 %

(2008)

Economy committed
to commercial
integration
process

Favorable climate
for investment

Mining leadership

Country with sustainable growth over 5.5% since 2002

2009-2011 annual forecast above 6%
Exports tripled in 5 years
Investment is increasing at an average of 20% annually
Stable exchange rate (free)

32 free-trade agreements
Preferential access to USA (FTA), EU, MERCOSUR, Andean
Community, China (FTA), Korea (FTA), Canada, Chile (FTA)

Country with investment grade

Attractive framework for Foreign Direct Investment, free-flow of
capital, based on equality of local and foreign firms
Peruvian government encourages private investment
Income tax 30%, Royalties below 2% (tied to sales levels)

Leading producer of gold, zinc, tin and lead

Enforced environmental regulations since 1992
All of the worlds majors mining companies operate in Peru
Mining exports 2000 $18.5 billion (55% of total exports)
Announced investment over $23 billion for the upcoming years

Source: www.proInversion.gob.pe

GOLD PERU PRODUCTION 2008 (Oz)

Source: www.minem.gob.pe

Dots Show Producing Areas

10 Km.

 Minera San Simon exploits the deposit La Virgen

with 11 recognized targets, of which 3 are being

mined and 8 are being explored

La Virgen; located in the Libortad area, is part of

the gold corridor that holds 3 underground

operations, 6 open pits, and 6 well recognized
projects.

3D on TG2 Suro Sur

Gold mineralization, minable by open pit, occurs in

quartzite and volcanics

Geological regional model shows a N-W set of faults

creating the deposition of several high grade hot

spots of disseminated gold located in the mesozoic
quartzite, tertiary volcanic and intrusives.

Oxidation

surfaces deepen up to 300 meters

enabling the process of heap leaching of ROM
material, recoveries averaging over 60%.

3D on TG3 Alumbre

Mineral Resources Reports

(1998 2008)

PAD

TG1 North Suro

TG4 Escorpion

TG3 Alumbre

South Alumbre
Potencial

CONCESSIONS
MARIA AUXILIADORA
MARIA AUXILIADORA 1
GREEN DRESS 1
VIRGEN DE FATIMA N 1
VIRGEN DE FATIMA N 2
BONDADOSO 1
TOTAL

TG5

HECTACRES
500
200
700
799
599
400
3998.00

TG7

TG1

TG6
TG4

TG2
TG3

TG8

TG10

TG11

TG9

Currently
Currently
Mine Targets
Targets
Mine

TG7
CUYPAMPA
TG5
PALOQUIAN

TG1 / TG2
SURO

TG8
CERRO BLANCO

TG4
ESCORPION

TG6
ESCALERILLA

TG3
ALUMBRE

10

GOLD CORRIDOR

11

 Camp setup for 500 people.

Connection to the national power grid.

Infrastructure to give proper maintenance

for

heavy equipment.
Total of 60 Km of internal roads and 10 Km dirt

road to connect national paved system.

Satellite communication and networking with

offices in Lima and Trujillo.

Fully

operating carbon in-leach plant, ADR

process, 65 hectacres of PADS, and pumping of
25,000 cubic meters per day.

12

Equipment
ITEM

BRAND

MODEL

QUANTITY

Hauling Truck

Caterpillar

777F

10

Excavator

O&k Terex

RH90C

Drill Rigs 6 3/4

Ingersoll Rand

DM45

Dozer Tractor

Caterpillar

D10T

Wheel Dozer

Caterpillar

824H

Total

15

Facilities

13

 Increase Resources
Exploration (Analysis, Studies, Sampling)

$2.25M

Drilling (RCD & DDH)

$2.05M

Financing Costs
Reverse Merger Costs

$350,000

Placement Fees

$350,000

1st Round Total

US $5.00M

Production Support

$5.50M

PAD
Plant Maintenance
Equipment Maintenance
Increase Production

$13.00M

PAD
Plant
Energy Line
Mining Works
Environmental

$1.50M

Mitigation
Partial Mine Closure

2nd Round Total

US $20.00M

Total Investments

US $25.00M

14

Ounces Au

GOLD ANNUAL PRODUCTION

(2003 -2013)

Production With Financing

Historical Production (Oz.)

Expected Production Under Current Conditions

* 2008 Amec Report Total 2.2 Million Oz. Au (Measured+Indicated+Inferred)

15

EBITDA
US$ K

16

EBITDA
US$ K

17

For the period ended December 31, 2007 and 2008, in US$

18

19

 Fulfillment of commitments related to sustainable

development

Support to children education

Medical attendance for all the community.

Support of food to associations for motherhood (Club

de Madres)

Support to programs aimed to increase farmer

productivity

20

 Received 2 EIA from the Energy and Mines Ministry.

Permanent air and water quality internal and external

monitoring.
Top soil restoring system in place.

Efficient management of trash.

Fish farm and forest nurseries.

Permanent internal and external audits.

21

 Expected to double production in 12 months

Resources projected to increase to over 2M measured ounces.
Production track record with over 6 years experience.
Undervalued on a ounce resource basis.

Expected Market Cap (US$/oz) of Gold Resources

22

Operating Cash Cost

24

Debts & Liabilities March - April 2009, (Figures Thousands US$)

25

Financial Statement, For years 2008, 2007, 2006, 2005

26

Gold Production

Dor Bars Assays

Year

Au%

Ag%

2008

44,95

21,60

2009

52,66

38,82

Dore Bar

27

Investment in Property, Plant & Equipment

26

Projected Resources Increase

Saint Michael Mining Company Profit & Loss Statements

30

Experienced Peruvian
Gold Producer
Committed to Deliver
2009 2013 Expansion