MIning exploration project

Gringo Viejo
Executive summary

1. INTRODUCTION

GOLD AND GEMSTONE MINING DE MEXICO SRL DE CV COMPANY, A subsidiary of GOLD AND GEMSTONE MINING
INC, as the new owner of the exploration and exploitation rights of the Gringo Viejo mining concession, located in
the municipality of Batopilas, Chihuahua, Mexico; Will carry out exploration work on the aforementioned lot, being
considered as the first stage in the project of exploitation and benefit of minerals until its commercialization.El
objetivo del Proyecto Gringo Viejo es de confirmar y determinar la forma, el volumen, el tonelaje y el contenido
metálico de las posibles zonas mineralizadas en el área de estudio; de manera que se pueda estimar las reservas
de oro, plata y otros metales.

The Project contemplates carrying out a geological research campaign that is purely superficial and does not
generate significant changes in the environment, to evaluate the sites of mineral interest for the development of a
program of diamond drilling within the 383 Ha, which includes the exploration area . The number of workers will be
5, and will be included in the project in a gradual way, most of them in the town of Batopilas and the capital of the
state of Chihuahua.

The Gringo Viejo project is located west of the state of Chihuahua, Mexico, 30 km from the mining town of Batopilas,
the property is located 8 km along the Loreto-Batopilas river in the area called the Golden Belt and 12 km from El
Project "El Sauzal" by Goldcorp Inc.

2. BACKGROUND

2.1 Presence of environmental liabilities.

Gold and Gemstone mining de Mexico SRL de CV. Has collected a lot of information from the area, information
that has been filed since the 1950s by the Mexican geological service and information from various publications
made by companies that have worked in the area, finding some mining works, geochemical, geophysical,
geological, aeromagnetic studies And environmental inventories, without finding relevant environmental liabilities
at the site of interest.

2.2 PERMITS

Gringo Viejo has enough information as a basis to justify an advanced exploration at the site of interest, because
all this information indicates that it is located in an area rich in gold and silver. It is a new exploration project in the
sense of an advanced exploration. The exploration and exploration rights of the lot were obtained through a
concession contract, formalized before a notary public and registered before the public registry of mining,
government agency.

Gold and Gemstone Mining de Mexico SRL de CV 1/8 Mining exploration project Gringo Viejo
• Environmental evaluation

The planned exploration does not require environmental permits until the diamond drilling stage.

• Formation of the company Gold and Gemstone Mining de Mexico, SRL de CV

The mining company Gold and Gemstone Mining of Mexico SRL of CV is legally constituted under the Mexican
legislation, with admission of foreigners in its statutes, registered before the general mining direction, registered
before the Tax Administration Service, before the national registry of Foreign investment, and is a subsidiary of Gold
and Gemstone Mining Inc, a company incorporated in the United States of America. (See Annex No. 01).

• Mining Rights

The Gringo Viejo Project contemplates explorations, in the following mining concessions:

No Title Length Name Owner

001 242162 383 Ha Gringo Viejo Leonel Arturo Quezada

The rights of exploration and exploitation of the title having been transferred by means of a contract of assignment
of mining rights, stipulating an amount as payment of consideration and a payment of 20% of the minerals
extracted and sold.

• Use of Surface Property

The property Gringo Viejo is outside agrarian well-known in the area for that reason only proceeds to give notice
to the National Agrarian Registry (RAN) and in terms of easements of passage, the property has existing access
roads that do not affect or cross lands Individuals who may be affected. (See Annex No. 02).

• Water use permit

The exploration process will not require water permits until the drilling stage, it is important to mention that the lot
runs along a perennial river, for this reason water is feasible throughout the year (See Annex No. 03).

3. DESCRIPCIÓN DEL ÁREA DEL PROYECTO

3.1 General Components

3.1.1. Political and Geographic Location

The Gringo Viejo Exploration project is located in the municipality of Baopilas, in the state of Chuhuahua, Mexico,
30 kilometers from the mining town of Batopilas. See Plan No. 01. The Gringo Viejo project is 470 meters above sea
level (m.s.n.m) with a reference point 26 ° 48'19.09 "north latitude, 107 ° '45" 10 west longitude.

3.1.2. Access roads

There are 2 access routes to the mining lot of Gringo Viejo. The first access is from the city of Guschochi east of the
mining lot and the second access is through the municipality of Choix, state of Sinaloa, both by dirt roads (See Plan
No. 02)

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3.1.3. Nearest towns and services

The project is near the town of Batopilas where there are hotel services, food stores and basic products; Is also 65
km from the town of Guachochi where there are fast food services, accommodation, medical service and local
airport.

3.1.4. Mining Concessions

The exploration program will be developed over a specific area south of the Gringo Viejo mining concession,
covering an area of 383 hectares.

Table Nº 01 - UTM coordinates of the vertices of the concession

“Gringo Viejo”

UTM 13 R
VERTICE
EAST NORT
1 230696.87 2965568.608
2 229386.57 2965568.608
3 229386.57 2965368.608
4 227686.57 2965368.608
5 227686.57 2966268.608
6 225986.57 2966268.608
7 225986.57 2968368.608
8 226986.57 2968368.608
9 226986.57 2966968.608
10 227986.57 2966968.608
11 227986.57 2965968.608
12 228686.57 2965968.608
13 228686.57 2965668.608
14 230696.87 2965668.608

3.1.5. Area of influence

Area of Direct Influence

The Area of Direct Influence, is inperceptible, is constituted by the area that occupies the concession where the
explorations will be carried out, that is to say "Gringo Viejo" all this without generating environmental impacts due
to the level of exploration intended.

Area of Indirect Influence

Due to the level of exploration, it is not considered an area of indirect influence.

3.2. Physical Aspects

The project is located at an altitude of 470 m above sea level.

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3.2..1. Topography and Geomorphology

The relief of the area is rugged product of the spur of the mountainous region of the western mountain range
between 600 and 400 meters above sea level. In the area of interest, with moderate elevations. Also the lot is extinct
along a perennial river.

3.2.2. Climate and Weather

Due to the differences in altitude the climate of the municipality is extremely contrasting, in the highlands of the
mountains it is very cold and the temperature increases as it descends towards the bottom of the ravines, where
there is a tropical climate, at altitude Of the municipal head of 501 meters above sea level are registered maximum
temperatures of 46.3 ° C and minimum of 1 ° C and humidity up to 75%.

In the upper area the flora is represented by pine and oak, while in the lower area, tropical trees such as avocado,
banana, lemon, guava, guayacan or brazil wood. The most representative fauna consists of deer, wild boar, puma,
quail, etc.

3.2.3. geology

Based on studies developed around the area have an estimate of the regional geology taking from the technical
file of the Mexican geological service as a base, the results of the report of the visit to the virginia mine, 9 km south
40 ° west Of the lot Gringo Viejo.

Although the current project explotarion plans to have an advanced geological study, we rely on studies and
sampling of the region surrounding the old grigo project to have greater certainty and security against the costs of
exploration arising from this project, To detail the following geological information that is detailed in the previous
paragraph together with the geoquimico sampling:

A) Rock encasing. - The rock encasing in the west part of the area is a very altered andesite and in the east
predominates the shales of gray color.

B) Structural.- In the west part of the area is a mineralized body approximately 20 meters wide, Coon a general
course E-W and made 75 ° to the south, recognized in a length of about 200 meters to the east; In this body they
come to form bags that vary from 1 to 3 meters in diameter across the width and probably along the structure.

Probably the vein located in the eastern part of the area is the continuity of the aforementioned body or some
detachment from it since they have similar structural and mineralogical characteristics.

C) MIneralogy and Alterations.- The mineralization is represented by argentita, native silver, prargirite, querargirita
and galena; Barley minerals are represented by quartz, pyrite, calcite and calcine pyrite.

The alterations are represented by kaolinization, epidotization and silicification.

Sampling

A representative sample of the existing works and some of the outcrops was made, to be analyzed by Ag, Au, Pb,
obtaining the following results:

Sample
Width Gr Au/MT Gm Ag/ MT %Pb
number
1A 0.70 6.00 344 6.5
1B 1.50 - 20 -

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 1C 0.80 - 32 -
2A 1.00 4.00 3176 6.5
2B 1.20 - 60 0.2
2C 0.80 10.00 6080 9.2
3A 1.00 - 30 -
3B 1.00 6.00 1684 4.2
3C 0.90 1.50 628 1.3
4 M. Patio 9.00 2220 5.2
5 Shards - 40 0.2

Average quality of Au = 2.64 gr/MT

Average quality of Ag = 1200.85 gr/MT

Average quality of Pb = 2.69%

3.2.4. Biological Aspects

3.2.4.1. Flora

The vegetation consists of ceiba, cypress, guayacan, palo brasil, willow, anana, avocado, banana, lemon, guava,
elm, white palo, walnut, guamuchilla, fresno, royal palm, granadillo and grasses. In the high Tarahumara: pine and
oak

3.2.4.2. Fauna

The fauna is made up of: deer, wild or wild turkey, wild boar, tigrillo, tlacuache, badger, puma, hare, rabbit, birds
such as guacamaya, hummingbird, quail, mountain dove, among others.

3.2.4.3. Protected natural areas

The Gringo Viejo project is located outside protected natural areas.

3.2.5. Areas of Social Influence of the project

The Social Direct influence zone comprises:

- The town of Guachochi, is a population of the Mexican state of Chihuahua, located in the Sierra Madre
Occidental. It is the main urban settlement and head of the municipality of the same name, one of the
most important in the territory of the Rarámuri or Tarahumara nation, in the center of the Sierra Tarahumara,
with a population of 14,500.

- Closer to the project is the town of San Miguel de Arriba, located in the municipality of Guachochi (in the
state of Chihuahua). It has 14 inhabitants. San Miguel de Arriba is at 2420 meters of altitude.

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 - In the locality there are 8 men and 6 women. The ratio of women to men is 0.75. The fertility rate of the
female population is 4.50 children per woman. The percentage of illiteracy among adults is 7.14% (12.5%
in men and 0% in women) and the level of schooling is 4.10 (3.83 in men and 4.50 in women).

- Also located is the town of San Miguel de Abajo, is located in the Municipality of Guachochi (in the State
of Chihuahua). It has 7 inhabitants. San Miguel de Abajo is at 2400 meters of altitude.

3.2.6. Archaeological Areas Documented by the National Institute of Culture

No cultural evidence of archaeological type was identified

4. DESCRIPTION OF ACTIVITIES TO BE CARRIED OUT

4.1. EXPLORATION AREA

The exploration area is delimited by the same polygon that limits the project Gringo Viejo, with an area of 332
hectares.

4.2. TECHNIQUES AND WORKS OF EXPLORATION TO BE DEVELOPED

The works will consist of the following:

Topography, mapping, sampling, testing and final report in NI43-101F1 format with feasibility report.

4.2.1. WORK PROGRAMME

4.2.1.1. GEOLOGY

I. Review of existing information

II. Field survey visit preparation of report and technical file of conclusions and recommendations

III. Surveying topographic detail of the surface

IV. Detailed geological survey of the surface

V. 30 cards every 30 meters to check structure continuity

VI. Systematic sampling of the surface, 400 samples

VII. Geological engineering and technical supervision

VIII. FINAL REPORT, FOR NI 43-101 F1 AND CERTIFICATION BY THE "QP"

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4.2.1.2. WORKS OF EXPLORATION

The exploration works will be determined on the basis of this exploration project, to determine more accurately the
program of drilling.

4.3. ESTIMATION OF THE AREA TO DISTURB

The disturbances in the area by the works carried out will be insignificant until the drilling stage.

4.4. ESTIMATED NUMBER OF WORKERS

For the development of the present exploration project, it is estimated that will be used:

- A geologist sr

- A geologist jr

- Four assistants

- A draftsman

The tasks to be performed and the remunerations are detailed in an a conological table. (Annex No. 04)

4.5. SCHEDULE OF ACTIVITIES

Days

I. Review of existing information

II. Field reconnaissance visit
III. Surveying topographic detail of the surface
IV. Geological survey to detail the surface
V. 30 cards every 30 meters
VI. Systematic sampling of the surface, 400 samples
VII. Geological engineering and technical supervision
VIII. FINAL REPORT, FOR NI 43-101 F1

5. POTENTIAL IMPACTS OF THE ACTIVITY

At this stage of exploration there will be no significant physical, biological, social or indirect impacts. For this reason
there is no environmental management plan.

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 6. ESTIMATED INVESTMENT FOR EXPLORATION PHASE 1:
MATERIALS LABORATORY
TIME GEOLOGIST ASSISTANT GEOLOGICAL ADMINISTRATIVE
ACTIVITY GEOLOGIST PICK UP GAS LODGING FOOD OF ANALYSIS DRAFTSMAN OTHERS GRAN TOTAL
(DAYS) Jr. (x4) PASSAGES POSITION
Sr OPERATION (X 200)
COST
(USD) +
16%
325 200 20 100 50 60 75 50 35 1200 1500 25 (+ 12%)
VALUE-
ADDED
TAX
PHASE 1

REVIEW OF EXISTING INFORMATION 2 750 NA NA 200 150 250 120 150 NA 1200 NA 100 2920 350.4

VISIT OF FIELD RECOGNITION

DEVELOPMENT OF REPORT AND
3 975 600 120 300 150 180 225 150 NA NA NA 75 2775 333
TECHNICAL DATE CONCLUSIONS AND
RECOMMENDATIONS STEP 1

GEOLOGICAL SURVEY TO SEMIDETALLE

AND TOPOGRAPHIC TO DETAIL
RECOGNITION OF POTENTIAL AREAS
IDENTIFICATION OF MINERALIZED 11 3575 2200 880 1100 550 660 825 275 7000 NA 1500 137.5 18702.5 2244.3
ZONES ROCK SAMPLING IN GRINGO OLD
LOT, LETTERS TO EVERY 30 METERS; IN
APPROXIMATELY 300 HAS

FINAL REPORT PHASE I FOR NI 43-101 F1

INCLUDES POSTERIOR FIELD REVIEW 6 1950 1200 NA NA NA 180 450 300 NA 1200 3000 NA 8280 993.6
AND CERTIFICATION BY "QP"

$32,677.50

7. ACTIVITIES TO BE CONTEMPLATED FOR THE NEXT STAGE OF EXPLORATION (PHASE 2):

Determination of potential of each zone, elaboration of geological maps and geochemical geological report,
conclusions proposed of additional work plan

Geological survey to detail construction of trenches and sampling; Development magnetometry program
proposed drilling plan technical report and maps

MAG / IP geophysical study

Environmental study: Technical study Rationale

Development, roads and stations, drilling: development of drilling program, generation of geological sections,
generation of geological-mineral model, mining plan and work development

The following exploration project (PHASE 2) will contemplate environmental processes and physical, social and
indirect impacts, as well as management of soil removed, erosion controls, sludge management, clearing, water
occupation and wastewater management; Handling and characteristics of storage areas; Personnel protection
plan; Closure and post-closure measures.

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