Chaucha Mineral Property: Overview

• Chaucha 43101 Compliant Report - Click Here to View
• copper/molybdenum, silver–gold porphyry
• 3,000 ha (7,400 acres) located in southern Ecuador
• historical geologic resource estimate: 216 million tonnes 2.2 billion lbs copper and 122 million lbs molybdenum at 0.2% Cu cut-off
• currently drilling to test for higher grade, +1% Cu

In June 2007, a nineteen-hole, 4,507 meter core-drilling program was completed by Ascendant on the Naranjos and Gur Gur mineralized sectors of the project area has preliminarily defined a supergene enrichment zone for each sector with wide aerial extent and about 40 meters thick. Copper equivalent values in this enrichment zone exceed 0.50%. In addition, drilling has begun to define what appears to be a large copper porphyry system underlying the five principal mineralized sectors of the Chaucha concession.

At the Naranjos mineralized sector, three core holes were drilled into a previously-identified inferred copper-molybdenum resource. Hole NA-03 encountered a 112 meters grading 0.54% copper and 0.029% molybdenum. Hole NA-02 reported 104 meters of 0.41% copper and 0.023% molybdenum. Hole NA-01 had 42 meters at the bottom of the hole that averaged 0.40% copper and 0.015% molybdenum.

The seven additional core holes (NA-04 through NA-10) were drilled over a horizontal distance of 1,200 meters to the north and east of the Naranjos mineralized sector. All holes showed copper and molybdenum mineralization. The results are summarized in the drill hole summary sheet set out below:

Naranjos

A nine-hole, 1,341 meter core drilling program recently completed on the Gur Gur mineralized sector of the Chaucha property intersected large widths of high-grade copper-molybdenum mineralization within envelopes of lower grade mineralization. To date, five of the nine holes have been analyzed.

The holes analyzed to date were drilled into a previously inferred copper-molybdenum resource as estimated by BHP Billiton Ltd. (“Billiton”) in 1998. Billiton’s resource estimate was prepared prior to the creation of the CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum. Existing logs report that Billiton drilled five holes totalling 931 meters with one of the Billiton drill holes, Ch-03, intercepting 105 meters that graded 0.63% copper and 0.02% molybdenum, but this has not been independently confirmed by the Company by re-assaying. Ascendant’s drill hole GG-02 intercepted 70 meters of 0.39% copper, which included 36 meters that graded 0.54% copper, GG-03 included 172 meters of 0.40% copper and drill hole GG­05 encountered 140 meters grading 0.35% copper, which included 60 meters grading 0.52% copper. Assay results from the five holes are set out in the table below. True thickness is estimated to be equal to drilled thickness.

Drilling will next test soil geochemical anomalies and structural targets west of the main Naranjos mineralized sector in the area called Loma de Tunas.

Ascendant has analyzed and reinterpreted the work completed by past operators of the Janeth 1 concession. At present, there is some uncertainty regarding copper grade due to poor recovery in some drill holes, and a difference between copper values obtained from adit sampling and subsequent re-sampling. Despite the uncertainties, previous work, to the extent available, is relevant and clearly outlines a series of mineralized bodies that are targets for further exploration. While these estimates are conceptual in nature, Ascendant believes that further work is justified, and its reinterpretation has resulted in estimates of potential target size for each of the mineralized zones summarized in the table below.

Estimates of Potential Mineralization on the Janeth 1 Concession

(1) Taken directly from the Billiton Historical Resource Estimate included on page 35 of the NI 43-101 compliant Technical Report dated April 8, 2005, and amended August 5, 2005, Review of the Quartz Porphyry-Hosted Copper-Molybdenum Mineralisation at Chaucha, Cuenca, Ecuador as prepared by Qualified Persons, Paul D. Gribble, C. Eng., Senior Mineral Resources Geologist, and David T. Wells, Senior Metallurgist, of Micon International Co Limited (“Micon”) (the “Chaucha Report”).

(2) Not estimated

Ascendant discloses these estimates under section 2.3(2) of NI 43-101 as possible mineral deposits targeted for further exploration.

Due to the uncertainty that may attach to these preliminary estimates, it cannot be assumed that all or any part of the mineralization will be upgraded to a mineral resource category as a result of continued exploration.

See “Risk Factors” for a discussion of how the estimate of mineral resources may be materially affected.