Sinchao Metals Corp. was formed by Andean American Mining Corp. in April 2006, in order to provide shareholders with the opportunity to participate in a true polymetallic project. Andean American Mining Corp. acquired the Sinchao Property in Cajamarca province, northern Peru, in 1996. Initial geological mapping, surface sampling, Induced Polarization and magnetometer surveys were completed in 1996, followed by over 8000 metres of drilling during 1997 and 1998. Results were very encouraging, however, metal prices were at all time lows and exploration was halted. Since 1998, Andean American consolidated the land position and in 2005 acquired 21 hectares contiguous with the existing Sinchao Property to complete its land acquisitions.

Sinchao Metals now owns 100% of the Sinchao Property. Four mineralized systems have been identified on the Sinchao Property: the Skarn Zone, the Breccia Zone, the High Sulphidation Epithermal Zone and the Massive Sulphide Lenses.

EXPLORATION PROGRAM

The 2006 exploration program consisted of detailed mapping of the entire Sinchao Property, state of the art 3D Induced Polarization and ground magnetic surveys. The geophysical surveys were completed and integrated into the ongoing geological mapping.

The 2007 exploration program involved an initial 2,500 metre diamond drill program to further test the continuity and limits of the Breccia Zone, and to test the High Grade Zinc in the Skarn Zone.

The 2008 drill program concentrated on the Breccia zone as part of a 9,250 metre program. Mineralization has been identified over an area of approximately 650 metres by 450 metres and to depths of up to 450 metres, with the mineralization remaining open in all directions. The objective of the 2008 drill program is to define the mineralization at the Breccia and Skarn Zones and to allow an inferred resource estimate to be completed by the end of 2008.

Mr. Andrew Gourlay, P. Geol. and President of Sinchao Metals Corp. is a Qualified Person as defined in National Instrument 43-101 with the ability and authority to verify the authenticity and validity of the data. This document has been prepared under Mr. Gourlay’s supervision. Mr. Gourlay has verified the data disclosed in this document including sampling, analytical and test data underlying the information.