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lmcat

07/11/12 7:30 PM

#13320 RE: forrealb #13312

The Rizzo report also suggests that further drill testing should be done and it will be when revenues are received.

There are many other targets (as oxide copper) in the Chloride Mine area that warrant investigation:
1. Palaeochannels are known to be the main framework of Chloride mineralization. One such channel is known to exist to the south of the current pit.
2. Following various geophysical study results, search for additional palaeochannels.
3. Mineralization is known to continue to the west, along the strike.
4. Source of the Chloride mineralization is known to exist to the east and northeast of the area. It has been speculated between 10 and 20 million tons of ore may be found in these areas.
5. Areas surrounding the existing pit.
6. Possible porphyry copper mineralization at depth.

In all future exploration-evaluation, the structural controls of mineralization, as well as, the relationship between alteration and mineralization should be carefully reviewed. Furthermore,
Gila Conglomerate is the host to mineralization at Chloride. It is necessary to define if this signifies any litho-chemical or litho-stratigraphic control to mineralization. This could have an
important bearing on future exploration.

http://www.sierragroupinc.com/wp-content/uploads/2012/05/L10-Chloride-Copper-Resource-Report.pdf