Royalties Inc (ROYIF)

[MWM]

Bilbao Ag-Zn-Pb-Cu Development Project

Project Overview

The Bilbao project is located in the Panfilo Natera Mining District, approximately 50 km east of the state capital, Zacatecas and consists of 1,406.7 hectares comprising nine exploitation concessions.



Drilling by Xtierra has outlined a resource (NI 43-101 compliant) of 9.68 million tonnes indicated resources at an average grade of 2.09% lead, 0.21% copper, 2.43% zinc and 59.40 g/t silver and 4.04 million tonnes of inferred resources at an average grade of 1.55% lead, 0.18% copper, 1.43 zinc and 53.64 g/t silver. Additional drilling completed in September 2010 is expected to add to the resource total.



The Bilbao deposit can be classified as a sulphide replacement deposit with a skarn overprint adjacent to the La Blanca granodiorite intrusive.



The Company owns a 100% ownership interest in the property subject to a 1.5% NSR royalty to a previous owner.



Xtierra is finalising a Feasibility Study on the deposit which includes a pilot plant-scale metallurgical test of the near-surface oxide mineralization and the confirmation of a flow-sheet and process for the recovery of lead, zinc, silver, copper and gold previously developed in bench-scale tests.