Cautionary Notes

Forward-Looking Statements

Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "creating”, "pursuit”, "realization”, "plans”, "intends”, "targeting”, "anticipates”, "will”, "would”, "should”, "estimates”, "expects”, "believes”, "indicates”, "suggests”, "further” and similar expressions. This website and documents within this website contain forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions and involve known and unknown risks, uncertainties and other factors.

Information concerning mineral resource estimates and the interpretation of exploration programs and drill results also may be considered forward-looking statements, as such information constitutes a prediction of what mineralization might be found to be present and economically mineable if and when a project is actually developed. Information from the 2011 PEA Update may also be considered forward-looking information. The 2011 PEA Update was prepared to broadly quantify the Malku Khota Project's capital and operating cost parameters and to provide guidance on the type and scale of future Project engineering and development work that would be needed to ultimately define the Project's likelihood of a positive feasibility determination and optimal production rate. It was not prepared to be used as a valuation of the Project nor should it be considered to be a final feasibility study on which a commercial production decision could be made. The criteria, methods and estimates were preliminary and involved a high level of subjective judgment.

Readers are cautioned not to place undue reliance on these statements as the Company's actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company's business, or if the Company's estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize.

Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements include, but are not limited to:

• The risks of mineral exploration industry which may affect the advancement of the Escalones project, including::
  • possible variations in mineral resources or grade and metal prices
  • availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms
  • timely receipt of required permits
  • availability of equipment and qualified personnel
  • failure of equipment or processes to operate as anticipated
  • road access to the property
  • changes in project parameters as plans continue to be refined
  • political, regulatory, environmental and other risks of the mining industry; the international arbitration processmetal prices,
• The political and economic climate in Bolivia, including the attitudes and actions of the Bolivian government related to foreign investment in Bolivia and the response of the Bolivian government to the filing of the Notice of Arbitration
• The advancement of the international arbitration process in a customary manner
• The outcome of the international arbitration process
• Other risks more fully described in the Company's Annual Information Form filed and publicly available on SEDAR at www.sedar.com.

The material assumptions that were applied in making the forward-looking statements in this website or referred in this website include, but are not limited to:

•  Execution of the Company's existing plans and further exploration and development programs for Escalones which may change due to changes in the views of the Company or if new information arises which makes it prudent to change such plans or programs, including road access to the property, the timely receipt of required permits for exploration activities, the availability of equipment and qualified personnel, the continuing support for mining by local governments in Chile, and the availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms to advance the Escalones project.
• The accuracy of current mineral resource estimates and interpretation of drill, metallurgical testing and other exploration results. New information or new interpretation of existing information may result in changes in the Company's expectations.
• The ability of the Company to realize value from its investment in Bolivia pursuant to the international arbitration process.
• The advancement of the international arbitration process in the customary manner
• The availability of new attractive exploration targets at a cost acceptable to the Company

Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.

Reserve and Resource Estimates

Readers should note that the estimation of quantities of resources and reserves is complex, based on significant subjective assumptions and forward-looking information, including assumptions that arise from the evaluation of geological, geophysical, engineering and economic data for a given ore body. This data could change over time as a result of numerous factors, including new information gained from development activities, evolving production history and a reassessment of the viability of production under different economic conditions. Changes in date and/or assumptions could cause reserve estimates to substantially change from period to period. No assurance can be given that the indicated level of mineral will be produced. Actual production could differ from expected production and an adverse change in mineral prices could make a reserve uneconomic to mine. Variations could also occur in actual ore grades and recovery rates from estimates.

Unless otherwise indicated, all resource estimates have been prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum Definition Standards for Mineral Resources and Mineral Reserves ("CIM Definition Standards”). Canadian standards, including NI 43-101, differ significantly from the requirements of the SEC, and resource information may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource” does not equate to the term "‘reserves”. Under SEC Industry Guide 7 mineralization may not be classified as a "reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. SEC Industry Guide 7 does not define and the SEC's disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources”, "indicated mineral resources” or "inferred mineral resources” or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves” by U.S. standards in documents filed with the SEC. U.S. investors should also understand that "inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an "inferred mineral resource” will ever be upgraded to a higher category. Under Canadian rules, estimated "inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral resource” exists or is economically or legally mineable. Disclosure of "contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves” by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of "reserves” are also not the same as those of the SEC, and any reserves reported by us in the future in compliance with NI 43-101 may not qualify as "reserves” under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable to information made public by companies that report in accordance with United States standards.

Other Information