A-T Properties Mexico

Successful Explorers, Great Geology

The properties were optioned from Exploraciones del Altiplano and Compañia Minera Terciario (Altiplano/Terciario), two privately-held and related Mexican companies with a long history of successful exploration in Mexico, having dedicated the last 15 years towards building a portfolio of exploration properties in the geological region they know well – northern Mexico.  (See map)

The properties lie within the highly prospective Sierra Madre and Altiplano regions of Durango and Chihuahua states -- home to some of the country's most recent gold and silver discoveries, including Pitarilla and La Platosa. Our new properties increase Esperanza's Mexican exploration portfolio to ten.

A Win-Win Partnership

The partnership combines Altiplano/Terciario’s regional expertise and success together with our geological experience and ability to manage and finance drill programs and subsequently find operating partners to take properties into production.

Option Terms

Esperanza will make periodic payments for each property in cash and common shares over the four year term of the option period. Any property can be acquired by payment of US$350,000 and issuance of between 450,000 and 1.2 million common shares dependent on the price of Esperanza shares at the time. Altiplano/Terciario will retain a 2% net smelter royalty.

There is also a commitment to drill a minimum of 1,200 meters per property within 12 months of obtaining drill permits.

The Properties

Based on historical data, field work by Altiplano/Terciario and our own examination, the following is a summary description of the properties.

Coronado

• Geology: a multi-stage igneous stock intruded into limestones.
• Geologic evidence suggests a porphyry system with a well-defined geochemical bull's eye with inner copper anomalies and outer lead, zinc and silver anomalies.
• Targets include a 30-40-meter-wide sheeted veinlet zone along the limestone/igneous stock contact, and possible porphyry-copper style mineralization within the stock.
• Five to six drill holes will be used to test these targets; drilling is underway.

Buenavista

• Geology: a historic high-grade-vein district. The principal targets are bonanza ore bodies beneath old mined areas in the Buenavista vein below the Upper and Lower Volcanic Series contact – a noted horizon for bonanza ore bodies in other Mexican vein districts which is untested at Buenavista.
• One existing drill hole (above the contact) intersected a 2.4-meter vein averaging 0.3 g/t gold and 400 g/t silver with a higher grade portion assaying 9 g/t gold.
• Five to six drill holes are planned in the first round of drilling which is expected to start before year end.

Campana-Tepalcateño

• Campana geology: a well-developed, complex vein/fault system, with significant geochemical anomalies, that covers two nearby historic mining districts.
• The property is on federal-reserve land recently released for exploration, consequently no modern exploration has been carried out.
• Three to four drill holes are planned for the first round of exploration in 2008.
• Tepalcateño geology: a historic silver-gold vein producer.
• Three to four drill holes are planned here in 2008.

San Isidro

• Geology: San Isidro is a well developed vein swarm that has had minor historic production.  The targets are silver/gold/base-metal vein ore bodies.
• There has been no modern exploration.
• Five to seven drill holes are planned to commence before year end.

Sabinas

• Geology: a 7 kilometer-long fault system forming one side of the Rodeo Graben – a regional tectonic feature that formed coincident with many major vein systems in Mexico.  The area was historically mined for mercury, a known indicator for precious metals.
• There have been three shallow drill holes with results including 1.2 meters averaging 5 g/t gold and 9.5 g/t silver.
• Plans are for a series of deeper (250- to 350-meter) drill holes in 2008 to evaluate the possibility of deep bonanza ore bodies in the central area.

Tablado-Savonarola

• Tablado geology: an extensive jasperoid zone, with related barite, stibnite and fluorite veinlets, associated with an east-west-trending fault zone. It has not been tested to date.
• Three to four relatively deep (300-meter) drill holes will be needed to evaluate this area.
• Savonarola geology: a historic limestone-replacement silver district where a total of 100,000 tons were mined at grades estimated between 500 g/t and 1,000 g/t silver.
• A target zone at a shale/limestone contact remains unexplored and is a target for drilling.

Catedrales

• Catedrales geology: a strongly-altered rhyolite-flow dome intruded into Upper Series volcanic rocks.  Limited outcrops indicate that the contact zone is geochemically anomalous.
• Additional mapping and sampling are needed in order to determine possible drill targets.