Property and Location

The Santo Domingo project consists of two mining concessions totaling 135 ha and is located 90 km northwest of Guadalajara, Mexico. Santo Domingo has excellent infrastructure with all weather road access and a high voltage transmission line that runs through the property. Water is also available from the Santiago River which flows through the property.

The Santo Domingo Project has the potential to contain 300 million ounces of silver. The project is located in a similar setting to a number of 100 million ounce plus silver-gold deposits in Mexico.

Recent Developments and Proposed Exploration Program

Three holes were drilled in 2006, (please see Press Releases section for details) and a new drill rig and equipment was purchased in 2007 for use on the Santo Domingo Property. Diamond drilling on the Santo Domingo Project in 2007 and 2008 outlined a continuous mineralized structure over 500 metres in length. The zone is open along strike and up and down dip.

A NI-43-101 technical report on the Santo Domingo silver gold project was completed on January 10, 2010. This report was based on 26 diamond drill holes.

Classification	Tonnes	Gold (g/t)	Silver (g/t)	Gold Ounces	Silver Ounces	Silver Equivalent Ounces
Measured	1,846,352	0.46	90	27,306	5,342,557	6,108,424
Indicated	2,501,382	0.39	88	31,364	7,077,092	7,881,531
Measured & Indicated	4,347,734	0.42	89	58,670	12,419,649	13,989,955
Inferred	3,424,622	0.33	83	36,817	9,135,864	10,013,898

 

Stroud drilled an additional 15 holes in 2011. These holes have not been added to the NI 43-101 report to date. Subject to financing Stroud intends to recommence drilling in 2012 and carry out metallurgical and environmental studies as well as update the NI-43-101 report on the project which will lead to a preliminary economic assessment of the project.