Exploration

The Company continues drilling at its CSH Mine for the purpose of exploring for higher grade mineralization down depth

and mineralization in between the two open pits, where previous drilling was limited due to very broken ground. As at

June 30, 2012, the Company has successfully completed approximately 4,600 meters of its planned 10,200 meter drilling

for the year.

The 2010 drill program was completed at the Jiama Mine in December 2010 with 76 drill holes totaling 45,537 meters.

The 2010 drill program defined and upgraded a significant amount of Jiama’s inferred resources to measured and indicated

resources. As a result, the total measured and indicated resources increased by 443% from 185.1 million tonnes

mineralized materials averaging 0.74 percent copper and containing 1.38 million tonnes of copper to 1,006.0 million

tonnes averaging 0.41 percent copper and containing 4.08 million tonnes of copper.

Mineral Reserves

The reserve for the Jiama Mine will be updated following completion of the ongoing feasibility study that will define the

scope and scale of the Phase II mine expansion at the Jiama Mine.