Cerro Jumil Project

Excellent Access and Infrastructure

The Cerro Jumil gold/silver project was acquired by the Company in May 2003 under a five-year option, which was exercised in October 2006. The property is located south of the city of Cuernavaca in the State of Morelos, Mexico. There is excellent access and nearby infrastructure.

Two Gold Zones Identified

In March 2005, the Company announced the discovery of gold and silver mineralization in drill holes in the West Zone. This was followed in July 2005 by the discovery of extensive surface gold mineralization which is now called the Southeast Zone. Drilling began November 2005 in this new area and this is now the primary target. Other encouraging targets have been identified for exploration later in 2008.

Gold and silver are associated with a variety of altered rocks around the periphery of a granitic stock that intruded into overlying limestones. The mineralized suite of rocks, collectively known as skarn, is well exposed at surface along the southern, eastern and western margins of the granite/limestone contact.

Each successive year has resulted in an expanded drilling effort. Over 22,000 meters of drilling has been completed through the end of 2007 and three drill rigs are currently active on the project.

Cerro Jumil Drilling Statistics

A large, bulk-tonnage deposit has been outlined that is expected to be expanded by drilling in 2008. Gold mineralization is found in multiple stacked horizons where individual horizons can be as thick as 115 meters but more typically range between 25 to 75 meters. Gold grades within the mineralized zones are between one and two grams per tonne although one drill hole (RCHE-07-47) had 12 meters of 7.03 gpt gold within a thicker 88-meter mineralized interval.

Expansion Drilling Will Lead to 2008 Resource Estimate

Drilling planned for the first half of 2008 is designed with three objectives:

The first objective will be to expand the Southeast Zone northward. Geophysical studies indicate potential to double the size of this zone and the initial drill holes have yielded significant gold mineralization.

The second and third priorities are to determine if the West and Southeast Zones connect, and to extend the West Zone to the north.

Esperanza is committed to continue drilling as long as the two zones are open. An initial resource estimate is anticipated in 2008.

Quickly Developing into a Viable Heap-Leach Project

A recent test study simulated heap leaching of drill-core material from the Southeast Zone. The test indicated a recovery rate of 72% on material crushed to a nominal 1 inch size and 73% for ¾ inch material. Further studies are proposed in order to optimize recovery rates.

Previously, composite samples of material collected from the West Zone and, separately, the Southeast Zone were sent to SGS-Lakefield Research Laboratories for preliminary metallurgical testing based on standard milling and recovery methods. Six tests were completed at various grind sizes and reagent concentrations. Gold recovery ranged from 92% to 95%, indicating the potential for good recovery by conventional processing technology.

Esperanza will continue studying heap-leach optimization while also examining the economic viability of conventional milling and processing.

The Qualified Person (QP), as defined by NI 43-101, for the Cerro Jumil project is William Bond, VP Exploration of Esperanza.