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Cehegn Iron Ore Concessions Spain

Project Overview The 1,030 hectare Cehegn iron ore property is located in the province of Murcia, in south-eastern Spain. The property is comprised of 62 separate concessions, formally owned by the Spanish ironworks company Altos Hornos de Vizcaya S.A. The property produced a premium grade of iron ore (+65% Fe) up until 1989, closing when the market declined. The historical documented records and research, which includes 38,000 meters of drilling, can confirm mineral reserves sufficient to undertake an exploitation project. Three of the sixty-two concessions are of an immediate interest, as they can be quickly moved into full production.

Proven Historical Reserves and Production Data Cash-flow - past producing open-pit mine Maria has a production permit in place with proven reserves & 3:1 strip ratio Initial 62 concessions cover 1,030 Ha Solid currently applying for extension to the concessions of up to 7,000 Has Simple option - No cash or share payments Solid earns 100% upon exercise Excellent year around weather

Historical measured reserves* of 27 million tons on only 5% the property. Potential for 100 + million tons Infrastructure: roads, hydro, water in place Rail 12 km away connecting to deep sea Port of Cartagena Port of Cartagena 100 km from the Cehegn concession, ability to handle 400,000 ton iron ore freighters Strong regional and local support for the project High quality magnetite iron ore recognized globally as the premium grade of iron ore with the lowest impurities
*Not NI 43-101 compliant

Cehegin

Chemical Analysis for Concentrate, Altos Hornos de Vizcaya, SA 1981 Concentrate %

Iron

65.44

Silica 3.60 Phosphorous 0.035 Manganese 0.13 Alumina + Titanium Oxide 1.54 Calcium Oxide 0.55 Magnesium Oxide 2.02 Sulfur 0.036 Potassium 0.048 Sodium 0.12 Concentrates of this grade and nonexistent impurities receive a considerable premium. Iron concentrates are priced at 62%, with each additional 1% receiving a premium of $3.50 - $5.00

Primary Crushing Plant Mina Maria M

Tailings at Mina Maria Plant

Deep Water Port of Cartagena The Port of Cartagena, connected by rail and an excellent toll-free highway, is 104 Km`s away from the Cehegin Iron Ore Concessions. The recently completed Escombreras Solid Bulk Terminals have four new quays with berthing capabilities of loading the worlds largest iron ore carriers of up to 400,000 tons.

Historical Analysis With 3D Models


3D Model of Soledad concession shows Orebody open to East & West Several holes were drilled to over 200 meters, which intersected many magnetite layers at depth The focus of the original operating company was to only prove out sufficient quantity and grades for open pit operations of up to 30 meters Potential of 100+ million tons Anticipated grade from Cehegin concessions: 65% to 70% Fe make this a premium product to enter the market. Strategic location in Europe High grade/low impurity iron ore concentrate European market would significantly reduce transportation costs Excellent infrastructure in place Spanish authoritys are anxious to expedite production