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No.06 / February 2012

3
Vancouver abuzz with Colombia

Cisneros Project Report

Exploration News

Corporate News

10

The Colombia List

Colombia springs into 2012

he Colombia gold sector has started 2012 with a great deal of energy and interest, with a handful of IPOs advancing, financings, upward stock momentum and buzz around imminent resource statements. This was obvious at the Cambridge House Vancouver Resource Investment show, the first major mining investment event of the year. Vancouver is the home of the junior exploration sector and the appetite of the citys investors for gold remains strong judging by the line outside the Canadian Royal Mint (see photo). The Cambridge House show saw over 600 companies exhibiting and presenting, including at least 13 companies with projects in Colombia, at what is becoming an increasingly important event. Colombias perceived political risk profile is improving but newsletter writer Thom Calandra said he ignores political risk factors in countries such as Colombia for potential higher returns, advising the audience to follow the copper in 2012. In Colombia, he said this means Bellhaven Copper & Gold (TSXV: BHV), which is developing the La Mina copper porphyry project in Antioquia. BHV is drilling its last hole at the La Cantera target at La Mina and will switch its focus to the Middle Zone prospect where it hopes to release a NI 43-101 resource statement later this year. This will be separate from the existing NI 43-101 resource statement it issued last year for La Cantera. The Middle Zone is thought to be at least as big as La Cantera, although at lower grade and with more complex geology. The company will also undertake more work on the La Garrucha target in the eastern part of its concession, a target that straddles the concession boundary with its neighbour AngloGold Ashanti, so a deal may be done there. Near to La Mina, Colombia Crest Gold (TSXV: CLB) hopes to start drilling at its Arabia target in mid February. The company says coverage of the stock will soon be initiated by one bank and it hopes to obtain coverage from others later this year. In 2012, it has budgeted 20,000m for drilling with an initial 5,000m that it will follow up if initial drilling hits anything interesting. In has C$6M in the bank and C$2.1M due in IAMGOLD warrants, and if it gets drilling success it will look to do an institutional fund raise later in the year. CLB has identified five porphyry type systems on its
2012 Colombia Gold Letter. All Rights Reserved.

People queing at the Canadian Roal Mint in Vancouver properties, the type of target that the major mining companies love, according to Hans, and it will try to discover more as its exploration programme continues. Arabia has fantastic outcrops that will be drilled as part of the 5,000m programme, says CEO Hans Rasmussen. At Arabia there are two large drill targets: the first is 400m x 800m and the second 300m x 400m, which returned up to 3.8 g/t Au in rock chip samples and 0.04 g/t Au in soil samples. Further south in the Middle Cauca gold belt, all eyes are on Batero Gold (TSXV: BAT) as the long-awaited maiden resource statement for its Quinchia project in Risaralda is due any week now. BAT has been one of the successes of the Colombian gold story for investors and the stock is gaining momentum once again in anticipation of the release. The interest in the company is such that it gave two presentation sessions to interested investors. In 2011, it drilled 142 holes and 55,755m at Quinchia that continued to expand its porphyry target. Its area has about 2km of strike from Dos Quebradas through El Centro to La Cumbre, where at the latter it has extended the depth of mineralization to 756m. This has a deep oxide zone with a 1 g/t Au shell near surface in the centre of its ore body. The company has identified eight other porphyry targets on its concessions and exploration of these will continue in 2012. BAT will start a scoping study by the end of 2012, and with C$4M in cash it will need to do a financing soon in order to fund its C$17-20M budget for 2012. BATs neighbour to the south is Seafield Resources (TSXV: SFF) which is planning to update the resource statement of the Miraflores target at its Quinchia project, where it has found that the breccia widens as it gets deeper. The timing of SFFs update may come hot on the heels of the eagerly awaited maiden resource statement by BAT. A scoping study by SRK is expected in March for Miraflores, a project that already has a resource of about 1 Moz Au. In Caldas, Rio Novo Gold (TSX: RN) is waiting for permits to begin drilling its Toldafria project and hopes to be able to start up in February or March. This will have a 3,000m Phase I and a 5,000m Phase II follow up. It has an existing resource statement of 968,000 oz Au @ 2.38 g t Au based on sampling of tunnels and the drill programme will aim to confirm this. The company plans to update its resource mid year. Toldafria is a high grade vein system with a N-S strike and a stockwork vein

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No.06 / February 2012

News Feature
system around it. The drill holes will average 300m deep. Gran Colombia Gold (TSX: GCM) saw its stock price decimated in 2011 as a result of its merger with Medoro Resources. However, the company is fighting back and highlighting its strong gold production growth potential in the coming years. GCM aims to increase production from 90,000 oz Au in 2011 to 540,000 oz Au in 2016. It will expand production at its Segovia Operations from 65,000 oz Au in 2011 to 200,000 oz Au in 2014 via a two-phase project: Phase I will see the capacity of its Maria Dama plant increase from 750 tpd to 1,000 tpd to take production to 130,000 oz this year. Phase II sees the development of a new mechanised mine and 2,500 tpd plant at the Los Aves/Poma Rosa project to the west of the existing Providencia and El Silencio Mines. This will increase overall production to 200,000 oz Au in 2014. GCM expects to release a resource statement for its Segovia Operations in the coming weeks. Its main production jump will be at its Marmato project in Caldas from 2015. GCM will receive a prefeasibility study for Segovia at the end of March and will release an updated resource statement to provide greater definition about its plans to build a mine capable of producing an average 340,000 oz/y Au. Socialization work is underway with local communities and it hopes to make good progress on this front throughout 2012. this lower impact approach. The new project will target the high grade oxide ore body and the transitional ores. It is also drilling two other targets in the region. An updated resource statement and a scoping study are due within a few weeks with a prefeasibility study due in 3Q12. The company has about 3 Moz Au at Angostura.

Privates on parade

Santander

In Santander, CB Gold (TSXV: CBJ) drilled 31,500m in 2011 and will drill 55,000m in 2012 at its Vetas project. CBJ is exploring the 1-3m wide high grade veins that it has on its concessions where underground mining may be possible, and will look to produce a maiden resource statement by the end of the year. The area is an historical mining district and some of its concessions are already exploitation licences due to the presence of existing artisanal mines. Meanwhile Eco Oro (TSXV: EOM) is working on a feasibility study for an underground mine at its Angostura project with things moving along nicely on the political front according to interim president & CEO Ana Stylianides. The reconfigured project will not have a large pit nor use heap leach technology and will have much reduced plant and infrastructure. The company is starting to socialize its new project and hopes that local communities will be more accepting of

Private company Atico Minerals is expected to IPO on the TSXV in midFebruary having completed its fund raise. The company initially hoped to raise C$6M @ 50 but raised C$10M, testament to the continuing popularity of Colombia and also of people following the copper. Llaves de Oro is another private company that will IPO this year, with its Popales project in Antioquia, just to the north of Continental Golds (TSX: CNL) Buritica project. The company has planned a seven-hole drilling programme which it will begin once it has gone public and raised funds. The company was founded by Michael Smith, the original CEO of CNL when that company was formed in 2007. Atlantis Gold is another private company looking to go public in Canada in 2012. It has concessions in the Segovia Remedios region of Antioquia where Gran Colombia Gold is prominent. Atlantis has taken over 8,000 rock chip and stream sediment samples at its San Miguel property that have returned results of up to 43.7 g/t Au in rock chip samples. It has identified three corridors of mineralization about 8km long that trend NW-SE via soil geochemistry, veins and tunnels, with veins that look similar to those GCM mines to the south. These are on strike with GCMs El Silencio Mine. I think we have a good address here as we have Touchstone Gold (AIM: TGL) to the north and *GCMs+ El Silencio (TSX: GCM) to the south, said president and CEO Michael Terrell. Atlantis raised US$8M privately over the last two years and will look to raise C$6M @ 40 at its IPO financing in the coming months.

Concession status

Unfortunately it is not possible to report any conclusive progress about what is happening to the concession system in Colombia. A straw poll of explorers was reminiscent of the joke that if you put four lawyers together you get seven opinions. For what they are worth, opinions include: My spies tell me it is unlikely we will be

able to make applications in February and that another three month suspension is probable. Ingeominas Bogota will open for applications on 3 February and all concession applications will be dealt with in Bogota. One needs a PIN to make an application but no new PINs will be issued. It will be April before Ingeominas is functioning and there will probably be another six-month moratorim. Apparently no one is working at Ingeominas as their yearly contracts havent been renewed and there is just a skeleton crew there. The government needs to enforce the existing law, not make a new law. CGL

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No.06 / February 2012

Project Report

Gold production at Cisneros?

Antioquia Gold prepares exploration/development tunnel

espite being one of the early entrants to explore for gold in Colombia in 2007 Antioquia Gold (TSXV: AGD) has been something of a sleeping beauty, quietly advancing its flagship Cisneros project in Antioquia while its peers have made all sorts of noise. Rather than engage in an extensive marketing campaign about the fact that it owns exploration concessions in Colombia as some other explorers have done, AGD has focused on exploring for, understanding and defining high grade gold vein structures that can possibly be mined. The company has remained well under the radar in recent years but with its initial exploration target now at an advanced stage, the company is starting to be more vocal. Cisneros is one of the most promising geological addresses in Colombia. A couple of hours north of Medellin on a main highway and in a safe region that has good infrastructure and power availability. It sits in what many consider to be one of the most exciting gold districts in the country and has as its neighbours the Gramalote project of AngloGold Ashanti and B2Gold and Trident Gold with its Marquesa project. It is an interesting aside that all these companies obtained portions of their exploration properties via project generating company, Grupo de Bullet.

View north from Guayabito artesanal tunnel

Antioquia Gold Analysis

GYB11-059 GYB11-060 GCO11-009 GCO11-007

Expert partner for deposit type High grade over mineable widths Great infrastrucutre Low on cash

Latest Drill Results

3.0m @ 18.57 g/t Au 1.6m @ 26.93 g/t Au 3.5m @ 19.56 g/t Au 2.0m @ 34.08 g/t Au

Cisneros
Geologically, the majority of the Cisneros area is underlain by an intrusive body of granodiorite to quartz diorite composition called the Antioquia Batholith, which is

cut by two fault systems in the project area. The mineralization in the Guayabito zone can be classified as a structurally controlled mesothermal lode-gold deposit, thought to be similar to the Parcoy Mine in Peru

(amongst others) owned and operated by AGDs partner, Consorcio Minero Horizonte, the parent of AGDs partner, Desafio Minero. Initial exploration efforts focused in the central area of the concession block and to date AGD has drilled 30,000m in 153 holes, 60% of which are in the Guayabito and Guaico zones. These are areas where there are numerous artisanal miners exploiting the high grade gold veins. Guayabito has a number of parallel vertical structures that contain at least thirteen veins. Similar structures in other mining districts extend up to 1,000m deep. However, the companys drill holes have only penetrated up to about 300m deep, which means the deposit remains open at depth. The 18,000m 2011 drilling campaign focused

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No.06 / February 2012

Project Report
Gallera Mine vien provide the information necessary to at least double AGDs resource figure at some point later in 2012. With sufficient resources, and information about grade control, metallurgy and rock structure that the tunnel will provide, AGD says it could be in a position to start mining the high grade structures 18 months from this date, potentially at a rate of 350-500 tpd. on extending the Guaico and Guayabito structures, undertaking initial holes in the Los Planes area and putting the first drill holes in Mina Sur America area. The drilling undertaken to date has focused on just a small fraction (10%) of the 5,630 hectare concession area, which means the company still has an extensive area to explore. AGD is analysing the results to date to be able to define and describe specific mineralized systems. It is also working on a maiden NI 43-101 compliant resource statement that it anticipates announcing in 2012. AGD says it is focusing on grade rather than total ounces and it expects that the grade figure will be sufficient to warrant proceeding with the development of an underground exploration tunnel. Exploration results to date suggest that it may have the grade it hopes for as the published results became more interesting through 2011, such as 18.57 g/t Au over 3.0m in November. The company is developing a geological block model with its Peruvian partner Consorcio Minero Horizonte, a company that has considerable experience mining deposits similar to the Cisneros project that will be used to determine the geometry of a 300m long exploration tunnel at Guaico, near the Nus fault. This tunnel Antioquia Gold Shares Outstanding Warrants & Options Fully Diluted Market Cap @ C$0.16 will allow AGD to obtain more precise information about the mineralization for grade control purposes for an eventual mine development and extraction plan. The company has also begun the permitting process to build the tunnel and the aim is to open it at Guaico and continue on a westerly heading; tying-in as many gold-bearing structures in the Guaico-La Manuela areas as possible in the process. AGD anticipates that it the tunnel should be permitted during 1Q12; meanwhile social and community work is underway as well as land acquisition. The additional geological and sampling information the tunnel will generate could big an initial resource figure as possible quickly, even at very low grades. With the stock market seemingly fixated on a minimum resource figure of at least 1 Moz Au for a gold junior to be of interest, AGD feels that the market has not understood what it is doing: its strategy has been to identify a resource of sufficient size in order to be able to start mining, in order to generate cash flow and take advantage of current high gold prices, and use the cash generated to fund exploration of the remainder of its concession area, rather than return to the capital markets. Now that its Cisneros project is more advanced and the realization of the strategy is beginning to crystallize as it works towards a production scenario, the company is starting to step up its marketing efforts, hiring Helen Bilhete as their investor relations consultant. With its aggressive stand towards production Bilhete will be stepping up the marketing as AGD looks at financing options in the first half of 2012. CGL
Cutting channels for sampling with a rock saw

Corporate
Throughout its history AGD has not been one of the more aggressive companies when it comes to marketing and TSXV: AGD 100.4M 6.4M 106.8M C$16.1M promotion. Company executives say this is because the nature of its story is different to that of typical junior explorers that drill aggressively in order to get as

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No.06 / February 2012

Exploration News

Eco Oro Minerals (TSX: EOM)

It looks as though Eco Oro Minerals could face a challenge to get community approval for an underground mining operation at its Angostura project in Santander. In soliciting bids to develop an environmental impact assessment (EIA) for an underground mining operation EOM required bidders to partner with a local university. The winning bidder partnered with Universidad Industrial de Santander (UIS). However, barely had EOM awarded the EIA project than pressure by an anti-mining contingent within the university led the chancellor of the university to decide that UIS could not participate in the development of the study. The winner bidder will most likely partner with another Colombian university. It seems that voluntarily withdrawing its proposal to develop an open pit mine, and completely changing its board of directors, management and name to chart a more community and environmentally friendly course have not been sufficient to allay the concerns of the local communities.

Gran Colombia Gold (TSX: GCM)

Announced the discovery of a deep mineralization trend below the preliminary pit outline at its 12 Moz Au Marmato project in Caldas. Highlights from an additional 82 drill holes totaling 24,697m included 357m @ 1.4 g/t Au & 6.4 g/t Ag in hole MT-1455A and 239m @ 1.4 g/t Au & 2.3 g/t Ag in hole MT-1445. Drilling included deep intersections that extend mineralization approximately 300m below the preliminary pit outline, for a total vertical interval extent of +1,040m. GCM also reported it acquired 67% of the 15 mining titles it requires since an acquisition programme began in November 2011. It also reached agreements with 65% of the 76 artisanal mines at Chaburquia, Echandia and Cien Pesos, allowing them to continue to operate for up to two years until GCM begins to build its mine. GCM anticipates that negotiations will be completed by the end of 1Q12. GCM engaged international consultants Social Capital Group, BSD Consultants and Replan to develop the Marmato town resettlement plan. During a conference call executive chairman Serafino Iacono debunked the myth that small miners and the Marmato community are against its aim to

develop a large-scale mining operation. The community understands that *the GCM development+ has a better potential for giving a better life to the community. The majority of people that work in these mines make less than the minimum wage; we will pay a lot more than that. The community is aware of that. Hundreds of jobs that are created from this kind of organized mining, he said. GCM also completed a diamond drill programme totaling 32,470m in 86 holes at its Segovia Operations. This focused on defining new resources by following the downward -plunge extension of the ore shoot in the Providencia Mine, and tested Las Aves Vein System, never drilled before. Bonanza gold grades were intersected on both vein systems with maximum grades of 161 g/t Au and greater than 100 g/t Ag over 0.4m reported on the Providencia Vein, and 249 g/t Au with 162 g/t Ag over 0.4m on the Silencio Sur Vein, part of the Las Aves vein system. The results confirm the downward-plunge extension of the high grade Providencia Mine ore shoot for a further 200m below Level 10, currently the deepest level, and remains open. Drilling on the Las Aves Vein System confirmed a strike length of 3,500m and is still open at depth. The southern continuation of the Silencio Vein was drilled near its intersection with Las Aves and returned grades up to 0.4m @ 249.1 g/t Au. A new mechanized mining operation will extract ore from Las Aves and Providencia vein systems, starting mid -2013. SRK (UK) is undertaking a resource estimate for the Providencia and Las Aves Vein System based on the results of this drill programme, which is expected in February.

Tolima Gold (TSXV: TOM)

Commenced operations at its 100 tpd San Pablo gold processing plant in Remedios, Antioquia and will upgrade it to 300 tpd capacity. TOM entered into a six-month contact with Gran Colombia Gold (TSX: GCM) to process ore produced at its recently inaugurated Carla mine, with gold sale proceeds to be spilt 70/30. The agreement allows TOM to run San Pablo at full

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No.06 / February 2012

Exploration News
capacity whilst developing its San Pablo and La Bartola mines to be able to feed the plant. The San Pablo mine is under development with new galleries being added to access mineralized structures, including a new shaft and four additional levels. La Bartola mine will be sampled and rehabilitated. TOM will start a 6,000m 30 -hole drilling campaign at the San Pablo, La Bartola and La Gabriela areas of its Remedios project programme at the end of January. TOM aims to ensure continuity at depth of quartz veins, locate new veins and to increase gold resources. TOM will continue exploratory drilling at its other properties such as Ancal with 7,500m to be drilled in 16 holes to define the presence of disseminated mineralization. Drilling is planned for the Nortol area to establish the presence of mineralization and vein type formation at depth and consolidate the geological and mining potential of the areas it has in northern Tolima. TOM expanded the number of concessions at its Nortel project via the acquisition of Panamanian company Sun Lakes Advisors for US$5.1M and 3.3M shares to obtain Papayo Gold, a company with 2,000 hectares of concessions and applications around TOMs 18,000 Nortol hectares. TOM has taken over 100 channel samples from the properties and has found veins ranging from 0.50m to 6.0m in width.

CuOro Resources (TSXV: CUA)

Announced results from 12 drill holes from its Santa Elena Cu-Au project with assays including 102.9m @ 1.44% Cu, 0.07 g/t Au, 2.4 g/t Ag & 0.23% Zn in SEDDH-39. This hole was orientated to test the down dip continuity of the massive sulfide body and two distinct massive sulphide zones were encountered, with sulphide stringer zones located between and below them. CUA has two drill rigs operating as part of a 25,000m Phase I drill programme of which 42 holes have been completed with approximately 8,000m drilled. A third drill rig is expected in late January or early February.

Seafield Resources (TSXV: SFF)

Reported nine drill holes from the Miraflores prospect of its Quinchia gold project in Risaralda. Highlights included 110.4m @ 1.31 g/t Au in hole QM-DH-16 and 167.2m @ 0.73 g/t Au in hole QM-DH-23. SFF has completed 11,617m in 25 holes at Miraflores and is currently drilling to improve the confidence of the resource and confirm the location of the breccia pipe contact at depth. Miraflores contains an NI 43-101 compliant measured and indicated resource of 1.1 Moz Au @ 0.9 g/t Au and an inferred resource of 354,512 oz Au @ 0.9 g/t Au.

CB Gold (TSXV: CBJ)

Provided drilling results from its Vetas project in Santander with highlights that included 16.87m @ 17.07 g/t Au and 10.48m @ 2.31 g/t Au that extend a new mineralized zone at Real Minera. Results are pending for holes that contain visible gold at both the Real Minera and El Dorado Zones. In October 2011 CBJ announced the discovery of a new mineralized zone at Real Minera. Its 2012 drilling programme will focus on the along strike and vertical extension of this new zone, and drilling of additional targets generated by the geophysics, structural geology study and drilling results from 2011. CBJ also announced it received confirmation from the National Geological Service of Colombia (formerly Ingeominas) that its 100% owned Real Minera property has been converted to a concession contract with an initial 20-year duration.

Calvista Gold (TSX: CVZ)

Announcd additional assay results in its newly acquired El Carmen property in Santander. Highlights include 7.62m @ 9.86 g/t Au and 13.73m @ 5.93 g/t Au. Phase I drilling has been completed with 9,836m drilled in 24 holes to add to the 13 holes drilled in 2010, for a total of 14,692m in 37 holes. CVZ expects to have a NI 43-101 resource estimate ready in 1Q12. The recent drill programme connected the mineralized structures at the west end of its licenses with the main mineralized zone to the east belonging to AUXs La Mascota mineralized zone. This trend has a strike length of approximately 700m on CVZs licenses. Drilling also discovered a second mineralized structure related to hydrothermal breccias starting from the surface, as well as disseminated gold mineralization within the porphyry itself.
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No.06 / February 2012

Exploration News

Cliffmont Resources (TSXV: CMO)

Entered into a definitive purchase agreement to acquire an 100% interest in the 2,623 hectare San Luis property in Huila by acquiring Tarana Resources that owns property owner Sociedad Del Alto. CMO will pay C$2.0M, issue 10M shares and commit to C$2M in work expenditure. The San Luis project encompasses multiple epithermal Au and Ag targets in an historical mining district, with over 31 historical mines located on the property. Au and Ag mineralization has been traced on surface for over 3 km along various vein structures. CMO plans an exploration programme comprising underground and surface sampling, geophysics and drilling.

Bellhaven Copper & Gold (TSXV: BHV)

Announced multiple Au-Cu intercepts in the Middle Zone prospect at its La Mina project in Antioquia. The results show that the surface mineralization footprint at the Middle Zone extends at least 175m east-west by 270m north-south. The results indicate that the system extends further to the south-SE, significantly increasing the potential volume of Middle Zone mineralization. The Middle Zone is one of 11 gold and copper targets at La Mina. The principal prospect, La Cantera, contains 1.0 Moz Au. BHV expects to publish an NI 43-101 resource for the Middle Zone in 1H12.

Samaranta Mining (TSXV: SAX)

Received a detailed geological compilation, air photo interpretation and initial sample results from a Phase I field programme at its Guadalupe property in Segovia, Antioquia. It identified significant areas of hydrothermal alteration with variable concentrations of sulphide mineralization. Two of the most promising areas appear to be projected extensions of veins currently mined at the San Nicholas Mine and an area of extensive hydrothermal alteration associated with airborne geophysical anomalies. SAX is designing a mechanised trenching programme to test priority areas of mineralization and create access for a subsequent drill programme.

Sunward Resources (TSXV: SWD)

Announced drilling results from the Cerro Vetas zone of its Titiribi project in Antioquia. Highlights included drill hole CV058 that yielded the highest-grade gold intercept encountered to-date, that intercepted 38.1m @ 3.02 g/t Au & 0.5% Cu (weighted average). The higher-grade zone is near surface and has been traced over a length of approximately 100m and remains open to the NE and SW. SWD also discovered a new zone of higher -grade Au and Cu mineralization, grading in excess of 2 g/t Au within a new area of the Cerro Vetas mineralized body; the west -central sector. Mineralization occured at a vertical depth of approximately 500m, and at a similar width and grade of 31.0m @ 2.15 g/t Au & 0.64% Cu (weighted average). This suggests the possibility that the higher grade zone may extend over a significant distance down -dip toward the NW within the core of the overall Cerro Vetas mineralized body.

AuRo Resources (TSXV: ARU)

Is undertaking stream sediment and rock chip sampling, and airborne magnetic and radiometric surveys at its Surata project in the California-Vetas-Surata mining district in Santander. ARU has completed 100 stream sediment and rock chip samples and expects to receive initial assays by the end of January.

Midasco Capital (TSXV: MGC)

Received a preliminary report from its first geological visit to the Santa Rosa Canelos area in Bolivar. MGC identified two main distinct structures that transcend the entire area. 25 samples were taken from vein workings covering an area 1,500m by 400m, of which eight assayed over 1 g/t Au while four assayed 69.38 g/t Au, 11.81 g/t Au, 8.63 g/t Au and 6.84 g/t Au.

Red Eagle Mining (TSXV: RD)

Announced drill results from its initial 15 holes at its Santa Rosa project in Antioquia. In the first of four major targets, 23 holes

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No.06 / February 2012

Exploration News
totaling 6,811m have been completed in the SE Sector. Significant intercepts from the San Ramon shear zone include 39.7m @ 1.59 g/ t Au in hole SR-003 and 58.9m @ 1.00 g/t Au in hole SR-011. The San Ramon shear zone has been drill tested to a length of over 1.8km, to a depth of over 250m with an average grade approx imately 1 g/t Au, and it remains open to the east. Gold appears to be associated with quartz and pyrite. Interpretation of airborne magnetic, radiometric and geochemistry surveys potentially extend the strike length to over 5km. RD is undertaking a 20,000m drill programme at Santa Rosa in addition to a 5,000m drill programme at Pavo Real in Tolima. We've only released the first five holes at Santa Rosa but they all hit an ore body which was one of five targets there, says CEO Ian Slater.

Cabia Goldhills (TSXV: CGH)

Completed 694 line km of airborne geophysics at its 6,946 hectare Mejia project in Bolivar and has identified four areas with mineraliz ation potential; two with the presence of vein type mineralization and the two with Cu-Mo-Au potential. CGH commenced a soil sampling programme over the southern portion of its concession, adjacent to the La Gloria Mine where previous sampling returned up to 171.5 g/t Au. It expects to receive geochemical sampling results within the next month, following which targets for follow -up exploration will be defined.

Colombian Artisanal Gold (Private)

Private company Colombian Artisanal Gold intends to list on the Canadian National Stock Exchange (CNSX) as a gold milling company. It has an option to acquire 70% of a 7,700 hectare mining claim in Bolivar where there is significant artisanal mining activity mining high-grade gold veins. The remaining 30% can be acquired. The company plans to build a 50 or 100 tpd mill to process ore from small mines in the area while it explores and develops the property. The company is undertaking an initial financing. CGL

Exploration News

Trident raises US$1.3M

Private Canadian company Trident Gold completed a US$1.3M financing to continue exploration of its Marquesa property package in Antioquia obtained from Grupo de Bullet at the end of 2011. Mid-tier gold producer Yamana Gold participated in the financing to acquire an approximate 5% ownership stake in Trident. The funds will be used for the next exploration phase of its Floresta project one of four areas outlined within the Marquesa package - to define drill targets. Exploration to date - including 36,000 line km of geophysics and extensive stream sediment and rock chip sampling - have identified what is potentially a large porphryry gold system in addition to high grade veins. These include veins 3m wide @ 16 g/ t Au & 32 g/t Ag, with 50m of stockwork @ 0.25 g/t Au, that demonstrate continuity over +300m of strike length. We have excellent geophysics results and great geochemical results and see striking similarities with Anglogold Ashanti/B2Golds Gramalote discovery, says CEO Tim Russell.

A NI 43-101 technical report on the Floresta property has been drafted which will serve as the qualifying property as part of a TSX IPO planned for 2012. With the listing the company plans to raise sufficient cash to undertake a drilling programme on the most attractive prospects.

C$0.15, with each unit consisting of one share and a half warrant exercisable at C$0.30 for two years. Mid-tier gold producer Yamana Gold increased its participation in QIA to approximately 12.86% by purchasing 5M shares. It now holds 11M shares.

Tolima Gold completes RTO

Tolima Gold (TSXV: TOM) - formerly FMX Ventures - completed a reverse take-over transaction in December and began trading on the TSVX under the ticker TOM. It raised C$25.0M via a private placement at C$0.65, with each unit consisting of one share and a half warrant exercisable at C$0.85 for two years. Jaime Lopez is CEO, COO and director; Andrew DeFrancesco is executive chairman and director; John Martin is CFO; and Ron MacMicken and Augusto Lopez are directors.

Mineros invests in Quia

Colombian alluvial gold producer Mineros SA purchased 6.7M units of Quia Resources (TSXV: QIA) for C$1.0M. Each unit consists of one share and a half warrant exercisable at C$0.30 for four years. Mineros also signed an agreement with GoldSands Development Company (GSDC.OB) to evaluate the potential of its properties and to obtain two exclusive options to acquire up to an 85% interest in 50 concessions in Peru. Mineros will conduct due diligence on the properties through 30 April 2012.

Quia raises C$3.5M

Quia Resources (TSXV: QIA) raised C$3.5M via a non-brokered private placement at

RJ initiates Colombia coverage

Investment bank Raymond James has initiated coverage of three Colombian

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No.06 / February 2012

Corporate & Financial News

On the Move

AuRo appoints Redwood

AuRo Resources (TSXV: ARU) appointed Dr Stewart Redwood as technical advisor to its board. Redwood is an independent geological consultant specializing in minerals exploration and project evaluation. He has considerable experience working in Colombia and was formerly VP exploration for Colombia Goldfields where he worked on the Marmato project in Caldas.

GCM names sustainability dir

Gran Colombia Gold (TSX: GCM) appointed Luca Altamura as director of sustainability to manage its social and community relations, and corporate social responsibility. Altamura was formerly associate protection field officer for United Nations Commissioner for Refugees in Caquet.

exporation companies: Batero Gold (TSXV: BAT), Continental Gold (TSX: CNL) and Galway Resources (TSXV: GWY). BAT and GWY have Strong Buy ratings with target prices of C$3.60 and C$2.50 respectively, whilst CNL has an Outperform rating with a target price of C$12.50.

Stifel covers CNL

Seafield Resources (TSXV: SFF) appointed Elina Chow as VP corporate development. Bellhaven Copper & Gold (TSXV: BHV) Chow was formerly director investor appointed Patrick Highsmith as CEO and relations at Continental Gold (TSX: CNL) and director. Highsmith has more than 22 years Colossus Minerals (TSX: CSI). in exploration, mining, and business development, including positions at Rio Tinto, BHP Billiton and Newmont Mining.

Seafiled appoints Chow

Bellhaven names new CEO

Investment banking firm Stifel Nicolaus has initiated coverage of Continental Gold (TSX: CNL) with a Buy rating and target price of C$12.00. Only a small portion of the Buritic property has been drill tested to date. Management plans to drill a number of step-out targets in 2012, including Guacamaya (January) and La Mano (February), it said.

Interbolsa covers CNL

Insider Trades
With many junior stocks mauled by the market in 2011, several company owners have taken the opportunity to increase their holdings. According to data obtained from Canadian Insider, notable insider trades in the December 2011January 2012 period saw: Bullet Holdings (Robert Allen) purchase 200,000 shares of Solvista Gold (TSXV: SVV) Executive chairmen Serafino Iacono and Miguel de la Campa purchase 100,000 shares a piece of Gran Colombia Gold (TSX: GCM) Cesar Lopez, CEO purchase 100,000 shares of Seafield Resources (TSXV: SFF).

Colombian brokerage house Interbolsa initiated coverage of Continental Gold (TSX: CNL) with a speculative buy rating and a target price of C$12.53 for 2012. Continental Gold currently trades at 0.63x of our top Price for 2012, a value we consider to be an opportunity for investors, considering the fundamentals of the Buritic project, it said.

Sunward completes obligation

Minister Tweets from Davos

Colombia ratings boost

Mining and Energy minister Mauricio Cardenas met with executives from companies such as AngloGold Ashanti, Glencore and Chiles state-owned copper company, Codelco, in Davos, Switzerland at the annual World Economic Forum meeting, according to his Twitter account. Meanwhile, Colombia Punto Medioan NGO that believes that there is an equilibrium between economic development and human rights, the environment and community welfarerequested that Cardenas not participate in the PDAC confernece in Toronto, Canada in March, until the ministry has got its house in order. As part of this latter effort, MinMinas is preparing a tender for 30-month contracts to fiscalise mining properties. It anticipates that two and four firms will be chosen to undertake mine fiscalization visits to provide support to the National Mining Agency. The tender documents will be published in February with contracts awarded in April, said La Republica.

Ratings agencies Moodys and Standard & Poors both reaffirmed the robustness of the Colombia economy. Moodys sees Colombias investment grade outlook as stable with a positive perspective, whilst Standard & Poors said Colombia has taken a number of significant steps to improve the local economy in recent years which is why it has received investment grade.

Sunward Resources (TSXV: SWD) completed its remaining obligation regarding the original Titiribi project in Antioquia by issuing 5.0M shares to Gold First Invest ments. The shares had been held in reserve pending the achievement of certain expenditure obligations. Gold First owns 46.4M shares, 32.96% of SWD outstanding shares. Titiribi hosts an NI 43-101-compliant indicated resource of 2.2 Moz Au @ 0.480 g/t Au & 0.148% Cu and an inferred resource of 6.08 Moz Au @ 0.507 g/t Au & 0.078% Cu.

Eco Oro exends warrants

Peru goverment urges social fund

Eco Oro Minerals (TSX: EOM) extended the term of 63,500 warrants by four years as a show of good faith to the property owners and communities in the areas around the Angostura project. All other provisions of the Warrants will remain unamended.

Perus government said mining companies must set up a social inclusion fund as part of future contracts in order that development projects are not derailed by anti-mining protests due to social development concerns. Such a fund would pay for any environmental damage that affects the population. Peru is to receive US$50B in mining investment in the coming years but projects face increasing public resistance due to concerns about their environmental impact, forcing some companies to shelve their projects. The government will also create an office in charge of settling social conflicts related to mining and other industries.

Red Rock Q411 production up

Red Rock Resources (AIM: RRR) saw its gold sales increase 1.5% to 1,425 oz in 4Q11 from its El Limon mine in Antioquia, up from 1,404 oz in 3Q11. RRR sold 509 oz Au in October, 523 oz Au in November and 394 oz Au in December. An infrastructure upgrade will continue through 1Q12.

2012 Colombia Gold Letter. All Rights Reserved.

www.ColombiaGoldReport.com

No.06 / February 2012

The Colombia List / Updated 30 January 2012

Micro Cap: <C$10M

Company
Alder Resources Arcturus Ventures AuRo Resources Bandera Gold Cabia Goldhills Caerus Resource Midasco Capital Orofino Gold Red Rock Resources Samaranta Mining Stoneshield Capital Wesgold Minerals

Ticker
ALR.V AZN.V ARU.V BGL.V CGH.V CA.V MGC.V ORFG.PK RRR.L SAX.V STS.V WSG.V

Fully Shares Diluted (M) (M)

40.7 39.6 63.3 80.6 34.9 29.3 45.1 N/A 724.0 36.9 24.5 10.3 51,3 53,3 70,1 99.0 43,3 34.0 54.6 N/A 763.5 46.0 45.1 6.5

Price
0.10 0.04 0.09 0.05 0.23 0.19 0.06 0.05 0.03 0.09 0.10 0.90

Mkt cap ($M)

8.5 1.6 5.7 4.0 8.0 5.6 2.7 0.0 3.4 3.3 2.5 9.3

Cash ($M)
N/A N/A 2.0 N/A 3.0 N/A N/A N/A N/A 2.5 400k 0.1

Debt ($M)
0 0 0 0 0 0 0 0 0 0 0 0

Moz AuEq
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

EV/oz ($)
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Warrants

5M @ $0.10-0.12 Mar 2012 / 3.7M @ $0.14 Dec 2012 / 4.8M @ $0.14 Dec 2012 / 1.4M @ $0.14 Jan 2013 / 40k @ $0.14 Jan 2013 15.8M @ $0.33 2012 N/A N/A 8.6M @ $0.30-$0.50 Nov 2012 N/A N/A N/A 357k @ $0.33; 5.0M @ $0.50 May 2013; 800k @ $0.50 May 2013 5M @ $0.25 Dec 2013 143k @ $0.30 Oct 2012

Small Cap C$10-100M

Company
Antioquia Gold Bellhaven Copper & Gold Calvista Gold Colombia Crest Gold Colombian Mines Condoto Platinum Cosigo Resources Cuoro Resources Quia Resources Red Eagle Mining Rio Novo Gold Rugby Mining Seafield Resources Solvista Gold South American Gold Touchstone Gold Waymar Resources

Ticker
AGD.V BHV.V CVZ.TO CLB.V CMJ.V CPD.AX CSG.V CUA.V QIA.V RD.V RN.TO RUG.V SFF.V SVV.V SAGD.OB TGL.L WYM.V

Fully Shares Diluted (M) (M)

100.8 108.3 48.7 85.5 32.6 33.7 72.6 30.3 62.2 35.9 113.1 34.7 168.9 53.4 79.2 103.7 45.9 119.9 140.2 51.4 114,2 44,8 49.0 98.7 38.8 25.5 50.0 139.1 41.1 229.0 65.2 87.9 N/A 61.6

Price
0.14 0.49 0.54 0.30 0.40 0.80 0.21 1.66 0.17 0.65 0.80 0.72 0.21 0.50 0.20 0.19 0.43

Mkt cap ($M)

14.1 53.1 26.3 25.7 13.0 27.0 15.2 50.3 10.6 23,3 27,8 25,0 35,5 26,7 15,8 19,7 19,7

Cash ($M)
N/A 10.9 13.1 N/A 4.0 2.0 4.0 20.0 3.2 15.0 37.0 6.5 17.0 N/A 0.7 N/A 12.1

Debt ($M)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Moz AuEq
N/A 38.5 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 2.15 N/A N/A N/A N/A

EV/oz ($)
N/A N/A

Warrants

522k @ $0.30 Dec 2011; 5.8M @ $0.25 Mar 2012; 550k @ $0.25 26.1 Mar 2012; 7.0M @ $0.25 Apr 2012; 4.2M @ $0.80 Apr 2012; 375k @ $0.64 Apr 2012; 4.6M @ $0.80 May 2013 N/A 8.7M @ $1.40 May 2013 N/A 4.5M @ $1.00; 6.7M @ $0.75; 65K @ $0.50; 23.0M @ $0.45; 250K @ $0.44; 1M @ $0.40

N/A 4.1M @ $1.20 Mar 2012; 4.8M @ $1.15 Mar 2013 653k @ $1.15 Mar 2013 N/A N/A N/A 16.4M@ $0.35 Apr 2013; 7.1M @ $1.00 Apr 2014

N/A 4.0M @ $1.20 Apr 2013; 3.3M @ $2.30 May 2013 N/A 11.7M @ $0.30 Jan 2014 N/A 5.7M @ $1.50 Jun 2013 N/A 14.1M @ $2.25 N/A N/A 18.8 319k @ $0.175 Jun 2012 / 11.1M @ $0.25 Jun 2012 / 1.7M @ $0.50 Dec 2012 / 30.0M @ $0.75 Dec 2012

N/A 10.0M @ $1.10 Apr 2013; 1.8M @ $1.10 Apr 2013 N/A N/A N/A N/A N/A 4.9M @ $0.55 Jun 2012 / 500k @ $0.75 Jun 2012 / 5.8M @ $1.50 Feb 2013

ABOUT COLOMBIA GOLD LETTER: Colombia Gold Letter is published twelve times a year during the first week of each month. The information contained herein is derived from sources believed to be reliable but no warranty expressed or implied exists between the recipient and the Publisher that this information is accurate. The contents of Colombia Gold Letter are intended for information purposes only based on news and information obtained and/or researched by the Publisher and is not intended to be construed as advice to buy or sell shares in any security or asset. The Colombia Gold Letter is intended to be authoritative, critical and independent. The Publisher is not a stock tipper or promoter and is not paid, sponsored, provided with stock options or otherwise enticed to write positive pieces about the companies covered. The Publisher does invest in some of the companies active in the Colombia gold sector and ends up with dogs as well as winners. The Publisher has shares in: CNL, WYM, SVV, BAT, CLB, CMJ, SFF and QIA. The Publisher has been involved in mining information research, analysis and publication for over ten years including roles such as investor relations, media relations, senior reporter and research consultant for companies involved in mining and exploration, and reputable industry information providers. The Publisher is not a registered securities professional and as such is not qualified to give personal or individual investment advice. Resource investing is risky and you could lose part or all of your investment. Consult a registered investment professional before making any investment in any security. For more information contact please write to Paul.corresponsal@gmail.com. COPYRIGHT: 2012 Colombia Gold Letter. All Rights Reserved. Unauthorized duplication or distribution of all content herein prohibited. This document is copyright protected and may not be copied, disseminated or distributed without the prior express consent of the publisher.

2012 Colombia Gold Letter. All Rights Reserved.

10

www.ColombiaGoldReport.com

No.06 / February 2012

The Colombia List / Updated 30 January 2012

Medium Cap >C$100M

Company
B2Gold Batero Gold CB Gold Continental Gold Eco Oro Minerals Galway Resources Gran Colombia Gold Sunward Resources

Ticker
BTO.TO BAT.V CBJ.V CNL.TO EOM.TO GWY.V GCM.TO SWD.V

Fully Shares Diluted (M) (M)

382.5 49.2 144.2 108.1 84.2 125.1 382.0 142.1 382.5 67.3 185.8 123.5 93.4 142.3 623.0 195.3

Price
3.79 2.83 1.21 8.70 1.77 1.62 0.59 2.12

Mkt cap ($M)

1,449.7 139.2 174.5 940.5 149.0 202.7 225.4 301.3

Cash ($M)
76.8 7.0 18.9 81.0 68.8 24.6 81.0 62.8

Debt ($M)
0 0 0 0 0 0 87.0 0

Moz AuEq
N/A N/A N/A 3.3 2.7 N/A 14.1 11.4

EV/oz ($)
N/A N/A

Warrants

N/A 2.7M @ $2.35 Oct 2012; 383k @ $1.60 Oct 2012; 713k @ $2.35 Oct 2012 N/A 28.9M @ $0.70 266.0 2.3M @ $0.98 Mar 2012; 6.1M @ $7.50 Sep 2012 71.0 63,500 Jan 2016 N/A 18.1M @ $0.75-$1.50 Nov 2011 to Feb 2013 11.5

3.5M @ $0.75. Jul 2012; 312k @ $1.00 Sep 2012; 560k @ $2.25 Oct 2012;

158.0M @ $2.60 Aug 2015 / 1.5M @ $5.00 Dec 2012 / 3.7M @ $3.75 Jun 2013

30.0 38M @ $1.65 Jan 2014

BAT

CNL

EOM

GCM

GWY

SWD

CBJ

1,000 900 800 700 600 500 400 300 200 100 00

Colombia Gold Letter Index

Market Cap >C$100M

Medium Cap

140 120 100 80 60 40 20 00

Colombia Gold Letter Index

60 50 40

Market Cap C$10-100M

Sep 11

Oct 1 1

Nov 11

Dec 11

Jan 12

30
20

Small Cap
AGD BHV CLB CMJ CMO CSG CUA CVZ RE RUG SAGD SFF SVV TGL TOM

Now

Last

Change

10
00

117.8

94.5

+24.7%

12

10 08
06 04 02
ALD

Market Cap <C$10M

The Colombia Gold Letter Index, an index of exploration stocks active in Colombia, provides a means to track the collective performance of Colombian gold resource stocks. Developed in collaboration with Rick Langer, VP & Sr Investment Advisor at Canaccord Genuity who determined the weighting forumla, the index is comprised of 16 stocks from The Colombia List, that meet the following criteria:

Micro Cap
BGL CA

Majority of projects or activity in the Colombia gold sector Stock price over 10 cents Minimum market cap of C$10M Minimum 20M shares outstanding Must be liquidity

MGC

ARU

QIA

AZN

SAX

WSG

CGH

00

Applying these criteria, the following list is generated: AGD, BAT, BHV, CVZ, CBJ, CLB, CMJ, CUA, EOM, GWY, GCM, QIA, SFF, SVV, SWD and WYM. The index gives a weighting to the market capitalization of the stocks based on their proportion of the aggregate market capitalization. This weighting is used to adjust the change in market capitalization over the period from which the index is calculated. CNL is excluded as an outlier due to its high market cap.

2012 Colombia Gold Letter. All Rights Reserved.

11