Millrock cautions that these drill results are historic and have not been (and cannot be) verified by the qualified person that is responsible for the contents of this disclosure. The results reported in Table 1 are taken from the 1996 report written by F.M. Johnson. While it is known that the drill samples were assayed at a well-known, reliable, laboratory (Bondar – Clegg of – at the time – 130 Pemberton Avenue, North Vancouver, B.C. Canada V7P2R5), the Millrock qualified person has not seen the assay certificates. No drill sample chips, rejects, or pulps were retained by Western Mining from the 1996 drilling program and the qualified person has therefore not viewed or resampled any of the rock drill samples that were assayed. The qualified person has visited the project site, observed vein structures in rock outcrop and old workings and believes that the reported drill intersections are likely to be accurate. The holes were drilled vertically, and therefore the reported intersections are apparent thickness. True width is likely to be approximately 65% of the reported apparent width.
Millrock has an option to purchase a 100% interest in La Navidad from Western. To complete the purchase, US$2,500,000 in option payments to Western may be made over a four-year period. An initial payment of US$125,000 has been made. Three further option payments of US$125,000 each may be made at annual intervals. A final option payment of US$2,000,000 could be made to complete the purchase of the mineral rights. During the option term, at least US$3.0 million must be spent on exploration on La Navidad in order to exercise the purchase option. The first year commitment is US$500,000. Millrock, with Centerra concurrence, may withdraw from the option agreement at any time.
Through its agreement with Millrock, Centerra has the option to earn an 80% interest in La Navidad by funding the all of the financial obligations in the underlying agreement between Millrock and Western. At vesting, a joint venture would be formed. Millrock may participate by contributing its pro-rata share of costs, or it can elect to be diluted to a 2.0% Net Smelter Return royalty.
The technical information within this document has been reviewed and approved by Gregory A. Beischer, President, CEO and a director of Millrock Resources. Mr. Beischer is a Qualified Person as defined in NI 43-101.