Tumi Resources

[Ed Monton]

Its interesting that you say it looks like Peru since Mexico and Peru also have an abundance of silver in common.

Here is the management discussion from late May:

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Management Discussion
5/23/03

MANAGEMENT DISCUSSION AND ANALYSIS

Tumi Resources Limited (the 'Company') is a junior mineral exploration company engaged in the acquisition and exploration of precious metals on mineral properties located in Mexico and Peru. The Company is a reporting issuer in British Columbia and Alberta and trades on the TSX Venture Exchange under the symbol TM.

Property Updates

a) Mexico Properties

i) Cinco Minas The Phase 1 drilling program commenced in early March 2003 to test a number of prospects along the 5 kilometre long Cinco Minas epithermal vein with the focus on the open pit potential at the historic El Abra mine area that was mined in the 1920's (1.08 million tonnes at 3.2 g/t gold and 476 g/t silver). The drill program is budgeted to consist of twenty holes totaling 1,500 metres of drilling on the El Abra, El Abrita and Cerro Colorado zones. The Company initially encountered some technical difficulties with the drill rigs supplied. This has now been rectified. First drill results have been received from five holes completed at El Abra and three from Famosa and San Pedro. A number of very significant intersections have been drilled at El Abra. Due to the very slow progress of the diamond drill rig previously used on site, the Company is now using the reverse circulation rig to drill through the zone of interest in a number of areas rather than pre-collaring for the diamond drill. Drilling will continue at El Abra, El Abrita and Cerro Colorado.


the drill results table won't post properly so I have removed it

The initial drill hole results are extremely encouraging and confirm the open pit potential of the area around the historic El Abra mine. Further drilling to expand the known area of mineralization will be undertaken. The drill program has confirmed the Company's underground channel sampling program undertaken late last year. Drill samples for assay are being prepared in Mexico and assayed at IPL Laboratory in Canada. Samples greater than 1 g/t gold are being check assayed and the Company is submitting a known standard (about one in every ten samples submitted) for check analysis. All bulk samples of RC chips and one half of drill cores along with all sample rejects prepared by GM Lacme sample preparation laboratory in Mexico are stored for verification purposes. The Company's consulting geologist, Mr. John Nebocat, is the Qualified Person for the Cinco Minas Project.

Through an agreement with Minera San Jorge S.A. de C.V., the Company is earning a 60% interest and will have the right to purchase the remaining 40% in the Cinco Minas Project.

ii) Gran Cabrera In October 2002, the Company was granted an option to earn a 60% interest in mineral claims covering 3,950 hectares ('Gran Cabrera'), located in Jalisco, Mexico, in consideration of making a US$45,500 payment for past property taxes (paid), conducting exploration expenditures totaling US$2.5 million and issuing 750,000 common shares (250,000 shares issued) over a three year period. In March 2003, the Company was granted an option to earn a 60% interest on three additional mineral claims (the 'Cabrera Group'), totaling 392 hectares . The Company has agreed to issue 270,000 fully- paid common shares over a period of three years to complete the transaction. There are 90,000 shares to be issued in the first year. The Cabrera Group claims are located within the Gran Cabrera claims, bringing the total area under control by the Company to 4,342 hectares. The number of rich historic silver-gold mines within the Gran Cabrera-Cabrera Group claims now totals twenty. The acquisition of the Cabrera Group is subject to acceptance of filings with the TSX Venture Exchange.

(b) Peruvian Properties

i) Los Lomas Property During fiscal 2002, the Company attempted to complete a drill program to meet its work commitment. The Company was unable to gain access to implement the program and declared force majeure, as allowed under the option agreement. In February 2003, the Company notified the optionor that it had terminated the Los Lomas heads of agreement. Accordingly, the Company wrote off $15,000 acquisition costs and $82,720 exploration expenditures in fiscal 2002.

ii) Tinka Property On February 19, 2003, the Company entered into a heads of agreement (the 'Tinka HOA') with Tinka Resources Ltd. ('Tinka Resources'), a publicly-traded company, of which certain of its directors and officers are also directors of the Company, whereby the Company, upon receipt of approval from the TSX Venture Exchange, has agreed to grant a 70% interest in the option on the Tinka property. Under the option, Tinka Resources has agreed to assume the Company's share issuance obligations through the issuances of a total of 500,000 common shares of Tinka Resources'share capital over three years. Tinka Resources must also fund a total of US$2.5 million in exploration expenditures, including underlying option payments and government taxes, over a three year period.

Operations and Liquidity

During the year ended December 31, 2002, the Company completed its qualifying transaction and commenced activities in the exploration of mineral properties. Accordingly the Company experienced a significant increase in activities and, in 2002, reported a loss of $253,757 ($0.09 per share) compared to a loss of $10,199 ($0.01 per share) in 2001.

At this stage of its development, the Company has no source of operating revenues. Interest income is derived solely from cash and cash equivalents held by the Company. During 2002, the Company reported interest income of $5,459 compared to $12,676 in 2001, due to lower levels of each held throughout 2002 compared to 2001.

General and administrative expenses of $161,496 was reported in 2002, an increase of $138,621 from $22,875 in 2001. Many of the Company's costs increased due to increased accounting, consulting, legal, regulatory and other costs associated with the Company's transition from that of a capital pool company to a junior mineral exploration company. During 2002, the Company also commenced the monthly payment of $2,000 to the President of the Company. During 2002, $16,000 was paid, of which $10,500 was expensed and $5,500 was capitalized to mineral property costs. Ongoing review of prospective property acquisitions also attributed to increased costs in 2002. In addition, during 2002, the Company adopted, on a prospective basis, the new CICA recommendations on accounting for stock options. The Company recorded a non-cash charge of $20,212 relating to options granted to consultants. In addition, as allowed by the CICA recommendations, the Company has disclosed, on a pro-forma basis, a further amount of $38,942 relating to the fair value of stock options granted to its employees and directors.

Since its reorganization in May 2002, the Company has negotiated a number of option agreements to earn various interests in mineral properties in Mexico and Peru. During 2002, the Company incurred $528,203 on mineral property payments and exploration expenditures. In addition, the Company issued 675,000 common shares, with a value of $202,500, pursuant to mineral property option agreements. During 2002, the Company wrote-off $97,720 in mineral property costs relating to its abandonment of the Los Lomas option agreement.

During the year ended December 31, 2002, the Company raised $697,800 cash from the issuance of common shares from private placements conducted and options and warrants exercised. These proceeds were utilized to conduct mineral property acquisitions and exploration expenditures and to pay ongoing corporate costs. As at December 31, 2002, the Company had a working capital of $338,569. Subsequent to December 31, 2002, the Company completed an initial private placement financing on 528,000 units at a price of $0.90 per unit, for proceeds of $528,000.

Investor Relations

The Company provides information packages to investors; the package consists of materials filed with regulatory authorities. The Company updates its web site (www.tumiresources.com) on a continuous basis.



CONTACT: TEL: [phone] Tumi Resources Limited

FAX: [phone]

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