Mexico Exploration

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In Mexico, Esperanza is leveraging its expertise and familiarity with Cerro Jumil and is now actively exploring in the Guerrero-Morelos Gold Belt. Cerro Jumil is at the northern end of this belt. This newly emerging metallogenic province already contains more than 15 million ounces of gold from at least five known gold skarn deposits including Cerro Jumil. Our exploration activities have led to the staking of more than 38,000 hectares (100% controlled by Esperanza) within this belt. In 2011, the Company will focus on advancing these properties through to drill-readiness while continuing to generate new prospects.

In addition, Esperanza has been actively exploring elsewhere in Mexico, in particular the Altiplano region of central Mexico.  This activity has resulted in the staking of one new project, Gallos Blancos, which we are currently actively taking to the drilling stage.  Mapping and sampling have already been done; geophysics at Gallos Blancos will commence shortly.  Present plans are to be drilling at Gallos Blancos during the third quarter of 2011.  In addition to project work, Esperanza continues to generate new prospects within Mexico, maintaining our project pipeline.