Property and Location

The 4800-hectare Santa Cruz silver gold property is located 50 kilometers south of Culiacan on the West coast of Mexico. Stroud can earn a 100% interest by making cash payments to the optionors of US$145,000 and by issuing to the optionors, subject to regulatory approval, 145,000 shares of Stroud over a 3-year period. The optioners will retain a 1.5% net smelter return royalty on the property of which the Company can purchase 1.25 percent for US$1,250,000 at any time. Stroud also has an agreement with owners of the surface rights, allowing Stroud to carry out exploration work on the property at no charge over the three-year period.