Geologix established a QA/QC program for the drilling at the Tepal and Tizate mineralized zones in an attempt to provide adequate confidence that sample and assay data could be used in resource estimation. Procedural documentation pertaining to sample collection, field preparation, sample dispatch, assay laboratory sample preparation, sample analysis and collation of assay results was presented and reviewed.

The review of sampling and assaying procedures indicates that an adequate system is in place to maximize the quality of drill hole samples and to assess the reliability, accuracy and precision of subsequent assay data for use in resource estimation.

The QA/QC program consisted of:

·The inclusion of CRM’s in sample batches sent to ALS to assess analytical accuracy (1 per 30 samples).

·The inclusion of field blanks and pulp blanks to assess laboratory sample preparation and analytical accuracy (1 per 30 samples).

·The inclusion of field duplicates and externally assayed pulp duplicates to assess sample preparation and precision (1 per 30 samples).

Approximately 20% of all samples submitted to the laboratory were quality control samples.

CRM samples were prepared from mineral matrices that contain gold and copper values similar to the grades found in the zones at the Tepal Project. Standard statistical techniques were used to assign a recommended assay value with associated 95% confidence interval. The CRM’s were prepared by CND Laboratories Langley, BC and Ore Research and Exploration Pty Ltd. of Australia

CRM samples were routinely submitted for assaying with core at a ratio of up to 1:30, totalling 4% of all samples. Initial drilling utilized CDNCGS-21, CDNCGS-23, 50pb and 52pb, while the 2011 used 52c, 151a, 152a and 153a. Error plots for each CRM for gold and copper can be found in the Micon- Tepal technical report.

The majority of the CRM for both gold and copper fell well within the ±2 standard deviations of the expected value. Of the failed CRMs (±3 standard deviations), there were a total of 733 samples that were associated with the failed CRMs.

Out of that total, there were 377 samples within the mineralized zones and 356 samples considered to be waste. These samples have been sent for re-assay. Assay results from roughly two-thirds of the samples have shown little change in their respective original assays. The re-assay data were entered in the database.

In general, the submitted standard samples showed good repeatability for both low and high gold and copper grades. Standards CGS-23, 52Pb, 53Pb, 52c, 152a and 153a appeared to consistently report above the expected value for gold, but well within the accepted value for each of the standards. Standard CGS-23 also appeared to consistently report above the expected value for copper. Standards 52c and 153a seem to have a very narrow range for gold while CGS-21 to have a very narrow range for copper but well within the accepted value for each of the standards.

Micon’s QP reviewed the procedures that were in place for the Geologix CRMs and reported in their Tepal technical report and believed that they were to industry standards and the resultant assays reflect the mineralization within the Tepal deposits.Geologix established a QA/QC program for the drilling at the Tepal and Tizate mineralized zones in an attempt to provide adequate confidence that sample and assay data could be used in resource estimation. Procedural documentation pertaining to sample collection, field preparation, sample dispatch, assay laboratory sample preparation, sample analysis and collation of assay results was presented and reviewed.