Ann: General Security Agreement, page-404

The owner of the concessions are held under the J.V Company that was formed 'El Zorro S.C.M' which is a company limited by shares which Tesoso Mining Chile currently owns 70% (hopefully 85%) next week.



Good query you raised regarding which entity owns the new concession.

If it's held under El Zorro S.C.M, it's an even more bullish indicator of a sale of the asset or acquisition of the company, because, to realize any value in the new concessions, we need to undertake and expend further capital for exploration and drilling, meaning, after Feb 2022, if we decide to raise capital to explore those prospects, the Vendor is on the hook to contribute or be diluted, we may find something, we may find nothing and if we did find something, more capital will need to be expended for more drilling. Don't think he is that stupid to take the risk to be on the hook to contribute millions. Because, remember, he had the option for a negotiate buyout of his 20% (cash in his pocket). I just don't see and can't put together a logical reason why he would give that up to be on the hook to contribute millions (cash out = bye bye millions) for no near term ROI, unless, he knew the outcome was going to be better.

I can't seem to find in the ann where it says we are undertaking sampling at the other concessions. Can you point me to it please? I know in interviews and in previous anns that Zeff stated we were/may delineate some targets there.

I'm not too fussed which way we go. TO or Mine as long as we reach fair valuation at a minimum. The first anchor for fair valuation in the MRE. The Second will be the financials in the scoping study as ultimately our valuation will be based on the Net Asset Value. Lastly, will be the upgraded final resource and feasibility study improving on the MRE & Scoping Study.

With relations to the other assets. The immediate district targets, toro gordo, drone hill, buzzard etc, i think we can add some upside valuation if some of the drills we plug into the targets show promise. With relations to the new concessions, I'm not sure what value we can add with the limited funds available, perhaps some surface sampling and a GAIP survey over them.