Plan of Operation for 2009 and Beyond

The approach for 2009 is to develop the infrastructure and ore drives in the vein systems where we have the highest level of confidence in the resource. This will allow us to convert as much as possible of the ore resource from Inferred to Indicated and Measured status.

In the process of infrastructure development, large tracts of orebody have been opened in preparation for stoping so that development stays well ahead of the planned stoping.

On the cost and materials management side, the management structure put in place at Maco Mine has established a number of systems to control expenditure and minimize wastage. These are already showing important improvements that indicate that Maco can be very successful as a low-cost producer with seemingly lower tonnage throughput than originally envisaged but with both higher grades and lower costs. This trend is expected to continue into 2009.

Staff training continues to be a major focus at Maco, that coupled with investment in new IT infrastructure over the next six to twelve months should provide the foundation for the projected growth of the operation over the next 2-5 years.