TECHNICAL REVIEW OF PROJECTS

TECHNICAL REVIEW OF PROJECTS Kieren Whittock Project Geologist Alexei Nicholls Exploration Geologist Date: 6/12/2012

TABLE OF CONTENTS TREBOLAR COPPER PROJECT... 1 LOCATION... 1 REGIONAL GEOLOGY... 1 EXPLORATION... 3 INESITA SILVER-COPPER-GOLD PROJECT... 27 LOCATION... 27 REGIONAL GEOLOGY... 27 EXPLORATION... 29 REFERENCES... 32 LIST OF FIGURES Figure 1: Trebolar Region Mining and Exploration Operations... 2 Figure 2: Drillholes and Geochemical Sampling at Ivone... 4 Figure 3: Ivone RTP Ground Magnetics and Drillholes... 5 Figure 4: Ivone Cross-Section 6764550N... 7 Figure 5: Regional Geochemical Sampling on the Ivone-Lucie Trend... 8 Figure 6: Trench and Rock Chip Sampling at Copper Trench... 10 Figure 7: Alegre RTP Magnetics and Drillholes... 12 Figure 8: Alegre Geochemical Sampling and Drillholes... 13 Figure 9: Alegre Oblique Cross Section Showing Cu (ppm)... 15 Figure 10: Bonita RTP Ground Magnetics and Drillholes... 16 Figure 11: Bonita Geochemical Sampling and Drilling... 18 Figure 12: Estrella Roja Cross-Section 341950E... 20 Figure 13: Colorada Complex Geochemistry and Drillholes... 22 Figure 14: Colorada Complex RTP Ground Magnetics... 23 Figure 15: Pingo Ramaditas Target Geochemistry... 25 Figure 16: Cortaderas Target Geochemistry... 26 Figure 17: Inesita Region Mining and Exploration Projects... 28 Figure 18: Inesita Geochemistry (Cu)... 30 Figure 19: Inesita Geochemistry (Ag)... 31

TREBOLAR COPPER PROJECT LOCATION The Trebolar Copper Project is located approximately 500 kilometres north of Santiago, and 110 kilometres north-east of the regional centre of La Serena in the Coquimbo region of northern Chile. The Trebolar project currently consists of a package of exploration and mining concessions that cover a total area of over 200km 2. Elevation within the project area ranges from approximately 2,000 to 2,800 metres above sea level. Two field camps have been established within the Trebolar project area, to service both the northern and southern concession groups. The northern camp is accessed by a series of gravel roads that lead east from the Pan American Highway, 30 kilometres to the north-west. The southern camp is accessed by approximately 10 kilometres of gravel tracks that lead north off the new sealed development road constructed by Barrick to service their Pascua Lama operations further to the east. Within the project area, access is achieved through a series of gravel tracks either historically constructed by artisanal miners or, more recently, by Serena to gain entry to identified target areas. REGIONAL GEOLOGY The Trebolar Copper project lies within the Andean Cordillera. The oldest rocks exposed in the area are the volcano-sedimentary units of the Early to Mid-Cretaceous Cerrillos Formation. This formation is comprised of porphyritic andesites, volcanic breccias, conglomerates, volcaniclastics, sandstones and shales and marks a shift to a continental depositional cycle dominated by andesitic volcanism. (Moscoso et al, 1982) The Cerrillos formation was subsequently intruded by granite, monzogranite, and tonalite of the Junta de Chingoles batholith. These intrusive rocks are of Late Palaeocene to Eocene in age. From a metallogenic perspective, the Trebolar Copper Project lies at the southern end of the Palaeocene-Early Eocene porphyry Cu-Mo belt of northern Chile (Moreno & Gibbons, 2007). Further to the north, this belt hosts the significant porphyry copper deposits of Spence (2,695 Mt @ 0.48% Cu & 117 ppm Mo) and Cerro Colorado (600 Mt @ 0.6% Cu). Closer to the Trebolar Copper Project this belt also hosts the Puquios-Pascuala porphyry copper deposit (29Mt @ 0.59% Cu), located only 10 kilometres to the south-west of Serena s southernmost concession boundary. Porphyry deposits in this metallogenic belt are commonly hosted both within the intrusive porphyry body itself, and within the overlying Cretaceous volcanic package, and are often associated with mineralised tourmaline breccia pipes (Moreno & Gibbons, 2007). A number of other significant copper and gold deposits are located within the Trebolar region, outside of the Palaeocene-Early Eocene metallogenic belt (Figure 1). The slightly older Cretaceous porphyry copper belt lies immediately to the west of the Trebolar Copper Project. The Dos Amigos porphyry copper deposit (41 Mt @ 0.43% Cu) is located within this belt 40 kilometres to the northwest of Trebolar, along with the copper and gold deposits of Andocollo (190 Mt @ 0.28% Cu) and Dayton (58 Mt @ 0.6g/t Au) 100 kilometres to the south-west. The Miocene Pascua-Lama gold deposit (655 Mt @ 1.14g/t Au) is also located approximately 50 kilometres due east of Trebolar. 1

Figure 1: Trebolar Region Mining and Exploration Operations 2

EXPLORATION No significant historic exploration has been identified on the Trebolar Copper Project. Numerous small scale artisanal workings are present throughout the project area, where outcropping copper oxide mineralisation has been mined from small high grade structures. Exploration completed by Serena has focused on numerous target areas. During 2012 a reassessment of the exploration work completed was conducted which redefined a number of priority targets for further exploration work. These targets are described below. IVONE The Ivone project was initially identified as a priority target based on the identification of a roughly circular outcrop of fractured and altered andesitic volcanics with narrow magnetite veins and secondary copper oxides developed throughout. Initial identification of this target was followed by geochemical sampling which confirmed the presence of anomalous copper mineralisation, with rock chip samples returning up to 0.7% Cu 1 (Figure 2). Channel sampling was also completed in a road cutting on the western edge of the outcrop, returning a continuous interval of 22m @ 0.2% Cu. This initial geochemical sampling was followed by a ground magnetic survey that identified a discrete magnetic anomaly coincident with the mineralised outcrop (Figure 3). Based on these encouraging results, four RC drillholes were completed on the Ivone target in May-June 2011. Two of these completed drillholes were designed to directly test the below the mineralised outcrop and the coincident magnetic anomaly. These two drillholes intersected consistent low-grade mineralisation from surface to the end of the drillhole to give intersections of (Figure 4): SIV001: 200m @ 0.11% Cu SIV002: 250m @ 0.13% Cu Drillholes SIV003 and SIV004 were drilled to the south of the mineralised outcrop through shallow colluvial cover, outside the extent of the identified magnetic anomaly. These holes were designed to test whether mineralisation was in fact restricted to the area coincident with the magnetic anomaly. Neither of these drillholes intersected significant mineralisation, although anomalous copper assays were returned from 0 to 60m in SIV004 (60m @ 0.02 % Cu). The geology of the drillholes completed at Ivone consisted of porphyritic andesitic volcanics, which have been altered to various degrees. In SIV001 and SIV002 alteration is dominated by chloriteepidote-magnetite-actinolite. This assemblage gives way to sericite-silica-pyrite alteration in holes SIV003 and SIV004. Mineralisation within SIV001 and SIV002 was dominated by pyrite with lesser chalcopyrite. In these drillholes, the sulphide minerals displayed a strong spatial association with magnetite. Fine to coarse subhedral pyrite was dominant within SIV003 and SIV004. The variation in these alteration and mineralisation assemblages from north to south is suggestive of a laterally zoned alteration system. Further, the phyllic assemblage of silica-sericite-pyrite is commonly associated with the peripheries of known porphyry deposits. 1 All surface and drill samples collected from the Trebolar Project were submitted to ALS La Serena for analysis. Multi-element assays were completed by method ME-ICP41 and gold analysis was completed by method Au- AA23. Drillholes were sampled on a 1 metre basis, with every second metre submitted for assaying. Therefore variations in reported intersections may occur when the alternate samples are taken into account. 3

Figure 2: Drillholes and Geochemical Sampling at Ivone 4

Figure 3: Ivone RTP Ground Magnetics and Drillholes 5

In order to further the understanding of the geology at Ivone, a number of samples were submitted for petrological analysis. Four of the six samples submitted were described as porphyritic andesites characterised by large, fresh to strongly altered plagioclase feldspar phenocrysts. The groundmass of these andesites consists of variable albite-sericite-plagioclase-epidote-quartz-biotite, depending on the degree of alteration. The remaining two samples, both collected from depth in SIV002, were described as felsic lithologies, possibly dacitic porphyry. These felsic lithologies were heavily altered to albite-epidote-sericite-chlorite. Throughout a number of the petrological samples submitted, narrow veins of pyrite-chlorite-magnetite and biotite-magnetite-actinolite were identified. This petrological analysis further reinforces the presence of a laterally zoned alteration system. The identified alteration assemblages, consistent low grade sulphide mineralisation, and the presence of possible dacitic porphyry at depth is further justification of the exploration model of a porphyry-style mineralised system. Following completion of the drilling program, it was decided that a greater understanding of the surrounding geology was required prior to a second phase of drill testing. First phase geological mapping was completed over a 3.5km x 2km area, extending from the main Ivone target north to the Chingoles target. This was combined with reconnaissance rock chip sampling extending further to the north toward the Lucie prospect. This mapping identified a sequence of andesitic volcanics and volcaniclastic breccias interpreted to represent a stratabound volcanic sequence generally striking north-northeast. This sequence appears to have been dissected by a series of faults which are observed to locally re-orient the units. This volcanic sequence has been intruded by a series of granodioritic intrusive rocks, particularly in the east of the mapped area. The granodiorites to the west appear fresh and unaltered, displaying sharp linear contacts with the volcanic package, suggesting that these are faulted contacts. Much of the volcanic sequence has undergone alteration, dominated by a silica-epidote assemblage. This alteration is variable in intensity, but increases toward the centre of the mapped area. Heavy fracturing is associated with much of this alteration. The mineralised outcrop at Ivone is considered to be part of this alteration phase, but with the addition of quartz-magnetite veining. Following the alteration zoning away from this zone is somewhat hampered by extensive colluvial cover. Processed ASTER data for the Ivone area effectively delineates this zone. The data was processed using Short Wave Infra-Red (SWIR) spectral bands to map zones of alunite-pyrophyllite, kaolinite, illite, and propylitic group alteration minerals. A good spatial correlation was achieved between the mapped alteration and the ASTER defined propylitic alteration zone. This suggests that such ASTER imagery may be useful as an initial targeting tool for similar alteration systems within the Trebolar region. Reconnaissance rock chip sampling completed along a north-westerly trend north of Ivone returned a number of highly anomalous copper assays. Immediately north of the Ivone target, samples from the Chingoles target returned up to 2.4% Cu in veined and altered andesitic rock, hosting black and green secondary copper oxide mineralisation. Further north along this trend, assays from the Catherine target have returned up to 3.78% Cu. Samples from the Lucie target, 3.5 kilometres northwest from Ivone, also returned Cu assays of >1% Cu (Figure 5). This mineralised trend appears to follow the contact between the volcanic package to the east and a large intrusive centre to the west, and is roughly coincident with the mapped silica-epidote alteration zone. The geochemistry also 6

suggests the presence of metal zonation north from Ivone, with mean Ag-Pb-Mn increasing between the Ivone and Catherine targets. This potentially represents metal zonation trending toward the lower temperature peripheral Ag-Pb assemblage away from the copper rich core near to the main Ivone target. Figure 4: Ivone Cross-Section 6764550N 7

Figure 5: Regional Geochemical Sampling on the Ivone-Lucie Trend 8

An IP survey is currently planned for Ivone to assist with the development of drill targets for phase two drill testing. Detailed mapping will also continue to the north toward the Lucie target with the aim of identifying further targets for more detailed exploration. COPPER TRENCH The Copper Trench target lies within a north-south trending colluvium-filled valley surrounded by outcropping intrusives of predominantly granodioritic composition. This target was originally identified following the discovery of a series of trenches dug into the colluvium prior to Serena acquiring the Trebolar Project. These trenches exposed secondary copper oxide mineralisation developed in heavily altered granodiorite, and were subsequently sampled. Continuous channel sampling of these trenches returned intervals of 15m @ 0.65% Cu and 8.45m @ 0.35% Cu. Subsequent to this discovery, a further two trenches were identified 1.5 kilometres further to the south. Sampling of these trenches returned intervals of 15m @ 0.4% Cu and 11m @ 0.3 % Cu respectively (Figure 6). The identification of mineralisation developed below shallow colluvial cover in these two locations separated by a distance of 1.5 kilometres, raises the possibility that mineralisation may be more extensive than is currently exposed. Within the exposed trenches, the geology consists of altered, friable granodiorite, and tourmaline breccia. The tourmaline breccia is generally matrix supported, with angular clasts of granodiorite throughout. Mineralisation is in the form of copper oxides, most commonly chrysocolla, with consistent limonite developed throughout. Geological mapping of the wider Copper Trench area identified a number of granodioritic intrusives bounding the colluvium filled valley to the east and west. These intrusives are generally fresh, with a mineralogy consisting of variable amounts of plagioclase-quartz-horneblende-magnetite. On the western side of the valley, two phases of granodiorite were identified. Although compositionally similar, a fine grained phase, and a medium grained phase were identified, with a sharp contact observed between the two. On the eastern side of the valley, outcropping coarse-grained quartz-plagioclase-biotite granite was observed. A number of breccia bodies were identified within these intrusive units, concentrated on the western side of the valley. The matrix composition of these breccias varies between tourmaline and fine silica, with all exposures displaying clasts of granodioritic rock with variable degrees of alteration. The presence of both mineralised and barren tourmaline breccias throughout the prospect area is encouraging, as a known feature of porphyry deposits in the Palaeocene-Early Eocene porphyry Cu-Mo belt, is abundant tourmaline and tourmaline breccia, as described within the Spence mine located in northern Chile (Moreno & Gibbons, 2007). A number of rock chip samples have been collected peripheral to the mineralised trenches at Copper Trench. The first phase of this rock chip sampling identified samples with up to >1% Cu and 0.61 g/t Au. These samples were collected without geological supervision and the location of these samples is unknown. Subsequent sampling by Serena geologists was unable to replicate these results outside of the mineralised trenches. 9

Figure 6: Trench and Rock Chip Sampling at Copper Trench 10

The rock chip sampling completed largely concentrated on the mapped tourmaline breccia units. While no consistently anomalous Cu or Au was identified from these samples, many display elevated Ag-As-Bi-Sb-Hg. This geochemical signature is characteristic of magmatic derived hydrothermal fluids, but is not evident in the assay data from the trench sampling, although Ag is elevated in the northern trenches, with a mean of 3.55 g/t Ag. In the southern trenches this is significantly lower, at 0.15 g/t Ag. This is suggestive of metal zonation within the Copper Trench area, but further investigation of this is currently hampered due to the lack of outcrop, with the current dataset not supporting a detailed interpretation. Copper Trench is currently a priority for follow up exploration work. This will initially consist of a substantial program of trenching within the colluvium filled valley to determine the extent and potential controls of the mineralised zones below the colluvial cover. This will be followed by a ground magnetic survey to assist in both geological interpretation, and the development of drill targets for an initial phase of drill testing. ALEGRE Alegre is the largest of a series of leached cap porphyry targets identified within the Trebolar Project, which are clearly evident in air photo and satellite imagery as significant colour anomalies. Alegre was one of the first targets identified by Serena at Trebolar, and has subsequently had significant exploration work completed upon it. Eight RC drillholes, rock chip sampling, channel sampling, and a ground magnetic survey have been completed upon the Alegre target to date (Figure 7; Figure 8). No significant copper intersections were made during the drilling at Alegre (Figure 9). While this was disappointing, recent re-assessment of this first phase of exploration by Serena geologists has suggested that the target has not been fully tested and that potential remains for Alegre to host a porphyry-style copper deposit at depth. The eight drillholes completed at Alegre were completed over a strike length of approximately 2.5 kilometres. These holes were drilled into a large area of limonitic leached capping. Such leached capping is considered highly prospective for porphyry-style copper deposits. In a porphyry environment, such leached capping forms in zones of hydrothermal alteration and sulphide mineralisation. In such zones, sulphide, predominantly in the form of pyrite becomes exposed to oxidised meteoric water through uplift and erosional processes, which oxidises the pyrite to create sulphuric acid, which in turn causes intense leaching of the overlying rock. Such processes may result in the downward transportation of copper into supergene enrichment zones below the base of oxidation, and above the hypogene sulphide zone. The first phase of drilling at Alegre was completed using this exploration model, targeting both supergene enrichment and hypogene mineralisation. Final drillhole positioning was based on a compromise between the ground magnetic survey completed across the target area, ease of access due to the rugged terrain, and proximity to the access road that had been constructed prior to the magnetic survey. All the drillholes completed intersected intensely leached profiles, often with complete textural destruction of the primary lithologies. These leached profiles consist of clay rich intervals, and intervals of vuggy microcrystalline silica. The intensely leached profiles are dominant in all drillholes with the exception of 11

ALG001 and ALG002 which pass into a sericite-pyrite alteration zone with variable epidote-chloritemagnetite. Despite the intensely leached profiles, assay results for a number of the completed drillholes display a consistent increase in copper with depth, albeit at sub-economic levels. In drillholes ALG001 and ALG002, elevated copper assays are present from the start of the drillhole, with a maximum of 558 ppm, including 42m of ALG002 returning an average of 106 ppm Cu (173m-215m). The down-hole geochemistry is generally characterised by anomalously low Ca-Mg-Al, which reflects the intense leaching. Small zones of weakly anomalous Mo are also recognised, but with a maximum of 53 ppm. Figure 7: Alegre RTP Magnetics and Drillholes 12

Figure 8: Alegre Geochemical Sampling and Drillholes 13

Although no significant copper intersections were identified at Alegre, there are a number of observations which suggest that it may remain relatively untested. The drillholes completed at Alegre were all vertical, and generally drilled into topographic high points. This may have created larger intervals of leached capping to drill though before intersecting either supergene or hypogene mineralisation. The trend of increasing copper with depth may be another indicator that copper mineralisation may occur at greater depths than have so far been reached. The two drillholes completed at the lowest topographic levels, ALG001 and ALG002, intersected a sericite pyrite alteration zone below a much shallower leached profile. ALG001 was collared at 1,882m above sea level, which is 405m lower than ALG003 which was collared at 2,287m. This suggests that these topographically lower drillholes are intersecting the alteration system at a much greater depth, in a zone of greater un-roofing through faulting and erosion. Therefore, further work should focus on targeting the topographically lower parts of the leached capping. The results from the ground magnetic survey and surface geochemistry add further weight to the south-western portion of the leached capping at Alegre being prospective for follow-up exploration. A roughly east-west trending magnetic anomaly is present where the drilling has been completed. Coincident with this magnetic anomaly, weakly elevated copper results have been achieved in rock chip sampling, with up to 329 ppm Cu in rock chip samples and 614 ppm in channel sampling. When considered in the context of the leached capping, the copper values identified in these samples may be significant. Other zones of magnetic anomalism and geochemistry are present within the leached capping at Alegre which warrant follow up work. The drilling at Alegre was completed prior to any geological interpretation being completed in the area. Therefore, prior to any further work being completed, detailed mapping will be completed over the prospect. This mapping will be focused on alteration zones with particular attention paid to subtle differences in limonite composition. Such variations have proven to be important within leached capping overlying porphyry copper deposits, such as at Escondida where higher grades and greater thicknesses of supergene mineralisation are known to be associated with areas of secondary hematite, whereas thinner zones and lower supergene grades are associated with jarosite zones within the leached capping (Garza, Titley & Pimentel, 2001). If any zoning can be identified within these iron oxide minerals, it may add further justification to future drill targeting at Alegre. Detailed mapping will also provide insight into the structural setting of the Alegre project. Faulting in particular may be important at Alegre in dissecting any possible mineralised system, and uplifting certain portions relative to others. This may assist in targeting shallower levels of any mineralised system. 14

Figure 9: Alegre Oblique Cross Section Showing Cu (ppm) 15

BONITA The Bonita target is located in the central portion of the Trebolar Project, and is the second of a series of leached cap porphyry copper targets within the Trebolar Project. As with Alegre, Bonita was identified as a target based on a significant colour anomaly which is readily identifiable in air photo and satellite imagery. This colour anomaly is thought to represent a leached cap possibly overlying a porphyry style copper deposit. The area of leaching covers an area of roughly 1 kilometre x 1.5 kilometres. Initial exploration at Bonita consisted of a ground magnetic survey, minor rock chip sampling, and the drilling of two vertical RC drillholes into the leached zone, for a total of 453 metres of drilling (Figure 9; Figure 10; Figure 11). Results of this drilling were disappointing, with the best copper intersection returned consisting of 8m @ 0.13% Cu in BNT001 from 159-167m. However, as with Alegre, following a re-assessment of the data by Serena geologists, it is considered that potential remains at Bonita, as a large proportion of the area of interest remains untested. Figure 10: Bonita RTP Ground Magnetics and Drillholes 16

The drilling completed at Bonita intersected intensely leached profiles from surface, consisting of vuggy silica, and clay. At Bonita, this intensely leached zone passes relatively quickly into a sericitesilica assemblage that continues to the end of both drillholes. This alteration assemblage includes significant fine grained subhedral disseminated pyrite below the base of oxidation. Assays from this drilling show a weak increase in copper at depth, an effect which is more pronounced in drillhole BNT001. This is mirrored by assays for sulphur, suggesting that an increase in sulphide abundance accounts for this rise. Following completion of this drilling, mapping was completed across the Bonita target area in an attempt to begin to develop a geological interpretation of the area to assess any remaining prospectivity. This was accompanied by minor rock chip sampling. Mapping of the Bonita target identified a sequence of andesitic volcanics and volcaniclastics, striking between 150-170, and moderately to steeply west dipping. These units appear to grade into each other over small distances. In zones of intense leaching, determination of lithology is difficult due to textural destruction of the primary lithologies. Remnant clastic textures are generally preserved however, leading to the interpretation that these units are part of volcano-sedimentary package. Surrounding the leached zone, a number of granodioritic intrusives are present, particularly to the west and southwest. These are generally fresh and consist of plagioclase-quartz-horneblende-magnetite. To the north of the leached zone, a series of small, discrete dacitic porphyries were identified over an east-trending 700m zone. The ground magnetic survey completed on the Bonita target identified a series of weak magnetic highs to the south of the leached zone, which correspond to unaltered, magnetite bearing granodiorites. The units corresponding with the central leached zone are characterised by a generally muted magnetic response with the exception of a north-south trending zone of elevated magnetic response through the centre. Drillhole BNT001 is roughly centred on the southern extent of this lineation, with the northern extents roughly coinciding with the mapped location of the dacitic porphyries. A comparatively small amount of geochemical sampling has been completed on the Bonita prospect, with a total of 10 rock chip samples being collected. A maximum of 437 ppm copper was obtained from these samples, from limonitic rock with secondary copper oxide staining associated with a narrow structure near to BNT001. Copper assays of up to 289 ppm were also identified associated with copper oxides on the fractures of a granodiorite unit in the south of the prospect area. The density of geochemical sampling at Bonita is not sufficient to draw any conclusions regarding any metal or alteration zoning effects. The magnetic lineament identified in the Bonita ground magnetic data is potentially associated with a series of dacitic intrusives observed during mapping. Although BNT001 was drilled into this magnetic lineament, it is possible that it did not reach the required depth to intersect any supergene enrichment zone, or potentially mineralising intrusive rock. Further, as with Alegre, all the drillholes at Bonita were drilled vertically at topographic high points, suggesting that greater thicknesses of leached capping must be drilled before intersecting either supergene or hypogene mineralisation. Any future drilling at Bonita should concentrate on testing this system at lower topographic levels, possibly along the identified magnetic lineament. 17

Figure 11: Bonita Geochemical Sampling and Drilling 18

COLORADA COMPLEX / ESTRELLA ROJA The Colorada Complex is the third of the leached cap targets within the Trebolar Project. This area was initially identified as a target due to the presence of a roughly 3 kilometre by 2 kilometre colour anomaly indicating the presence of leached and limonitic rock. This colour anomaly has a northwesterly trend, and essentially forms a south-easterly extension to the Bonita target. Estrella Roja refers to the far north-western end of this target area. Estrella Roja was the first target to be drill-tested by Serena Resources. Four vertical RC drillholes were completed on this target for a total of 535m of drilling. Only samples from CLD001 and CLD002 were submitted for assaying, and CLD003 was abandoned at 12m due to mechanical problems with the drill rig. No significant copper results were achieved from this drilling, although assay results from the two drillholes assayed display an increase in copper with depth, attaining a maximum of 834 ppm in CLD002 (Figure 12). The top 20m of CLD001 displays highly elevated Mo-As-Sb, giving 24m @ 104 ppm Mo (0-24m), with a maximum of 480 ppm Mo, 4710 ppm As, and 228 ppm Sb. Mo and As are also elevated throughout CLD001 with respect to CLD002. Metal zonation is also evident from the Zn assays which are elevated in CLD002 with respect to CLD001. Geological logging of the completed drillholes identified a zone of silicification with well-developed limonite from surface, which grades into a zone of argillic alteration with variable pyrite. In CLD001, this alteration zone persists to the end of hole. In the drillholes peripheral to CLD001, this argillic alteration zone in turn passes into a propylitic alteration zone consisting of chlorite-epidote-pyrite. In CLD001, the change from the siliceous limonitic leached alteration sequence to the argillic phase roughly corresponds with the beginning of the elevated copper assays. Likewise, in CLD002, the change from the argillic alteration phase to the propylitic phase corresponds with the beginning of the interval of elevated copper results. Based on the geological logging of CLD001, there is nothing to suggest what the zone of highly anomalous Mo-As-Sb may be related to, but it may be associated with mineralised veining that was not differentiated from the leached, siliceous limonitic rock. The alteration and metal zonation apparent in the drillholes completed at Estrella Roja may assist in vectoring toward future drill targets within the Colorada complex as a whole. The geological logging of CLD001 suggests that the propylitic alteration phase is not intersected, despite large intervals being present in drillholes CLD002 and CLD004. Also, the elevated Mo in CLD001 with respect to CLD002, and the elevated Zn in CLD002 with respect to CLD001, suggests the presence of welldeveloped metal zonation. Zn is known to be associated with the peripheries of porphyry systems, whereas elevated Mo may indicate a more proximal position to a mineralised body. CLD001 is also drilled at a topographic high point, within the most obvious colour anomaly at Estrella Roja. This suggests that CLD001 may be nearer to the centre of a mineralised system, and further work should focus along the northwest-southeast trend of the colour anomaly at Estrella Roja and the Colorada complex as a whole. 19

Figure 12: Estrella Roja Cross-Section 341950E 20

Geochemical sampling to date is relatively sparse across the Colorada complex as a whole (Figure 13). A number of rock chip samples have been collected in this area, with copper assays of up to 761 ppm returned. Anomalous Mo-As-Sb are also locally identified in the rock chip sampling, however due to the sparse nature of the sampling, no spatial relationships can be readily identified. A stream sediment sampling program was also completed, with samples collected from drainage systems to the south, west, and north of the Colorada complex. This program identified a number of copper anomalies, the most evident of which is to the west of the Colorada complex, in streams draining a strongly limonitic zone to the east. A ground magnetic survey was partially completed over the north-western end of the Colorada Complex, covering the Estrella Roja target area (Figure 14). The results of this survey show a muted magnetic response corresponding to the silicified and leached zone. However, this incomplete survey only covers a small portion of the Colorada Complex, and therefore it is difficult to draw any conclusions from the current data. Despite the disappointing results achieved from the drilling completed at Estrella Roja, this represents the testing of only a very small portion of the Colorada complex as a whole. Numerous anomalous results from the sparse geochemical sampling that has been completed on this target area suggest that a number of zones warrant follow up work. Initial follow up work will consist of detailed geological mapping across the whole of the Colorada Complex, accompanied by further geochemical sampling to increase the sample density. The incomplete ground magnetic survey should also be completed across the whole of the target area. It is hoped that the combination of this work will provide vectors toward potentially mineralised zones within the Colorada complex. SECONDARY TARGETS A number of secondary targets have also been identified within the Trebolar Project which are not currently the focus of exploration activities. Many of these targets are peripheral to the main target areas, and despite locally high grades of Cu and Au being identified, these are generally considered to be associated with narrow vein or fracture zones. The Ramaditas/Pingo prospects are located on the south-western periphery of the Colorada Complex. Initial rock chip sampling at Pingo identified copper results of up to 2.55% Cu (Figure 15). Similar sampling at Ramaditas returned assays of up to 1.4 g/t Au. Following identification of these prospects, minor trenching was completed to assess the nature of the identified mineralisation. This trenching intersected a 2-3m wide structure consisting of veined and silicified rock hosted within heavily weathered granodiorite. This structure was observed to be sub-vertical and strike southwest, with Ramaditas interpreted to be the south-western strike extension of the structure observed at Pingo. 21

Figure 13: Colorada Complex Geochemistry and Drillholes 22

Figure 14: Colorada Complex RTP Ground Magnetics No significant results were achieved from sampling of the completed trenches at Pingo, although elevated Zn, Pb, and Mn, and minor elevations in Cu, Mo, and Ag were noted associated with the structure. At Ramaditas, significant gold mineralisation was identified, returning a continuous interval of 4m @ 4.13 g/t Au, including 1m @ 15.45 g/t Au, associated with the silicified structure. Elevated Bi, As and Sb were also noted. Despite the high gold grades, mineralisation was shown to be narrow and structurally controlled, with no parallel structures or disseminated mineralisation identified within the host granodiorite. While these prospects are not considered to be significant in themselves, the geochemical signature is suggestive of an epithermal style of mineralisation which may be peripheral to a larger porphyry system, potentially to the east within the Colorada Complex. 23

The Cortaderas prospect is located on the south-eastern periphery of the Colorada Complex. This area was identified as a prospect through outcropping copper oxide mineralisation. Rock chip sampling returned assays of up to 6.68% Cu, and 1.25 g/t Au (Figure 16). Sb up to 242 ppm was also identified associated with the higher copper grades. While these results are highly anomalous, sampling at a wider scale in the area has shown that the anomalism is generally confined to a small area of outcrop. Lack of outcrop due to colluvial cover has made determination of the extent of this mineralisation difficult. Although a low priority, follow up work over the greater Colorada area should focus on detailed geological mapping and trenching near to the mineralised outcrop, as currently the geology and geological setting of this prospect is poorly understood. As with Pingo/Ramaditas, it is possible that the Cortaderas area may represent peripheral mineralisation to a larger system within the Colorada complex. 24

Figure 15: Pingo Ramaditas Target Geochemistry 25

Figure 16: Cortaderas Target Geochemistry 26

INESITA SILVER-COPPER-GOLD PROJECT LOCATION The Inesita Silver-Copper-Gold project is located approximately 30 kilometres north-east of El Salvador and 175 kilometres north-east of Copiapo in the Atacama region of northern Chile (Figure 17). The project is accessible by 54 kilometres of unsealed gravel road from El Salvador. Travel time from El Salvador is approximately 2 hours. Currently no field camp has been established. The elevation of the Inesita Project ranges from between 3,200-3,800m above sea level. The project lies within the northern extension of the Maricunga belt, a Miocene geological province which hosts numerous world-class porphyry Au-Cu and epithermal Au-Ag deposits including Caspiche (1,646 Mt @ 0.16% Cu and 0.44g/t Au), Cerro Casale (1,336 Mt @ 0.53g/t Au) and Maricunga (474 Mt 1.26g/t). The Inesita Project is also approximately 25 kilometres north-east of the El Salvador (2 962Mt @ 0.47% Cu and 0.12g/t Au) deposit, which lies within the older Eocene- Oligocene porphyry copper belt, and just 5 kilometres north of the historic Ines Chica mining district where artisanal miners have historically exploited epithermal Au-Ag veins. REGIONAL GEOLOGY The geology of the Inesita area consists of a Cretaceous-Tertiary volcanic-sedimentary sequence including andesites, rhyolites and volcaniclastics. This volcanic package dips slightly to the west and has been intruded to the east by granodioritic and tonalitic intrusive rocks. Both the volcanic and intrusive rocks are cut by various dykes, ranging in composition from aplitic to mafic. Highly localised hydrothermal breccias are also identified in the region. In the centre of the project area, a large zone of intensely leached and limonitic rock is observed roughly oriented along a north-south trend. This alteration zone was the initial justification for proceeding with exploration of the Inesita Project, as it was considered prospective for porphyry Au style systems, similar to other deposits within the Maricunga belt. Common ex-sulphide casts are present within this alteration zone, indicating that primary sulphide mineralisation was present within this rock prior to oxidation and leaching. A weak propylitic overprint is present throughout much of the volcanic package, and is locally developed within the intrusive lithologies. This alteration assemblage consists of chlorite-sericite, which is observed replacing the mafic minerals, and to a lesser extent the feldspars. Epidote veining was also noted, and highly localised zones of potassic alteration were identified occurring in the intrusive units as narrow vein selvedges or on the peripheries of aplitic dykes. 27

Figure 17: Inesita Region Mining and Exploration Projects 28

EXPLORATION Minimal historic exploration is known to have been completed on the Inesita Project prior to the acquisition by Serena. Minor trenching and surface sampling is thought to have been conducted, but the results of this work are unknown. A number of very small artisanal working have been located on the eastern edge of the property where local miners exploited narrow gossanous quartz-calcite veins, probably for silver. Since acquiring the project, work completed by Serena has consisted of reconnaissance geochemical sampling and geological mapping. This work has subsequently identified a series of mineralising events at Inesita. Numerous rock chip samples collected during reconnaissance returned anomalous copper results. Two samples collected exceeded 1 % Cu 2, one of which was taken from the propylitically altered granodiorite with patchy potassic alteration associated with the periphery of an aplitic dyke (Figure 18). The second sample was collected from a quartz-calcite vein containing visible copper oxide mineralisation which was observed to cut the host volcanic package. Rock chip sampling taken from the gossanous veins to the east of the project returned silver assays of up to 92.9g/t with associated elevated Mo, Pb, Zn, Sb, As and Hg (Figure 19). This geochemical signature is indicative of the presence of a polymetallic epithermal system. Both of the rock chip samples that returned copper in excess of 1% displayed a Cu-Bi association, which seemingly differentiates them from the epithermal event identified to the east. Two lines of soil sampling were also completed across the main zone of leached limonitic rock at Inesita. This sampling was completed to test for any response over this zone to determine whether a larger scale soil survey would be beneficial to exploration. All the samples collected were sieved to - 80# on site prior to being submitted for assaying. The results of this work did not return any significant anomalism. Further exploratory work is warranted at Inesita to advance development of a geological interpretation, and to develop an understanding of the mineralisation events that have occurred there. Further work should focus on delineating the extent of the epithermal systems to the east of the project area and assessing the potential for the project to host porphyry Au-Cu deposits. 2 All rock chip samples collected at Inesita were submitted to ALS La Serena for assaying. Multi-element analysis was completed using method ME-ICP41, with gold analysis completed using either method Au-AA23 or Au-AA24. Multi-element analysis of soil samples was completed using method ME-ICP61, with gold analysis completed using Au-ICP21. 29

Figure 18: Inesita Geochemistry (Cu) 30

Figure 19: Inesita Geochemistry (Ag) 31

REFERENCES Garza R.A.P, Titley S.R. & Francisco P.B. 2001. Geology of the Escondida Porphyry Copper Deposit, Antofagasta Region Chile, Economic Geology, 96, pp307 324 Moreno T. & Gibbons W. (Eds). 2007. The Geology of Chile. The Geological Society, London. Moscoso D. Nasi P. & Salinas Z. 1982. Hoja Vallenar y Parte Norte De La Serena, Regiones De Atacama y Coquimbo. Servicio Nacional de Geologia y Mineria, Santiago. 32