Pucamayo

Prospective for: Gold/Silver

Update:

Dr. Jeffrey W. Hedenquist visited the Pucamayo Project in 2017, accompanied by Ever Marquez, VP Exploration. Mr. Hedenquist's full report can be found on our website, at www.condorresources.com/i/pdf/Observations-on-the-Pucamayo-Prospect-July-2017.pdf

In January 2017 Condor and Sandstorm Gold Ltd. ("Sandstorm") finalized a transaction that included the sale of a 0.5% NSR to Sandstorm on all but 6 sq km of the Pucamayo project.

Location:

The Pucamayo project is located 180 km SE of Lima at an elevation of 3800 to 4200 m, in the Department of Ica, and in the Tertiary volcanic belt hosting several major epithermal gold deposits in Peru. Pucamayo is about 56kms south-south west of the Corihuarmi gold-silver mine of Minera IRL Limited, and about 25 kms east of the Cerro Lindo lead-zinc-copper mine of Compañía Minera Milpo S.A.A.

Ownership:

At March 1, 2016, the Pucamayo project consisted of 4 concessions totalling 19 sq. km. Three of the concessions were acquired by staking or assignment (Tinco 101, Anta Rumi, and Sandra IMG), with the Company having a 100% interest. The Pucamayo 14 concession was acquired by purchase agreement in August 2007, as amended in February 2009, and the Company has an 85% interest, with the seller of this concession holding a 1% NSR.

In late 2016/early 2017, the Company concluded a concession swap, and acquired 12 additional concessions. In 2018 one more concession was acquired, bringing the total area of the Pucamayo project to 115 sq km.

Condor and Sandstorm finalized a transaction in January 2017, and part of that transaction included the assignment to Sandstorm of the buyback right on the Pucamayo 14 concession's 1% NSR. If Sandstorm exercise the buyback right, the 1% NSR in favour of the vendor will be replaced with a 1% NSR in favour of Sandstorm.

The January 2017 transaction with Sandstorm also included the sale of a 0.5% NSR on the balance of the concessions at Pucamayo project (107 sq km), where the Company holds a 100% interest.

Previous Work:

• A new discovery by Condor geologists in late 2009, highlighted by two distinct zones.
• In the East Zone, channel samples up to 0.95 g/t Au and 343 g/t Ag over 5m.
• High grade 'bonanza-style' gold-silver mineralization with channel samples up to 86.6 (g/t) Au over 3 meters (m) and 5.85 g/t Au over 10m in the West Zone.
• The size of the targets and the extensive anomalous gold and silver mineralization suggest potential for the discovery of one or more economic gold-silver deposits.
• Phase 1 drill program at Pucamayo West was completed in March -- April of 2011.
• Highlights of the drill program included values of 340.9g/t Ag, 0.62g/t Au, 1.80% Cu, 1.77% Pb, and 2.27% Zn over 2.2 m in hole PUC-004.
• The majority of the drill holes successfully intersected the quartz-carbonate veins surrounded on the hangingwall and footwall by silicification with quartz-sulphide veinlets.
• In June 2015 the Pucamayo West concessions were dropped to conserve cash.
• In January 2017, the Pucamayo West concessions, and more, were recovered in a concession swap deal.

Geology/Mineralization:

At Pucamayo East, alteration and mineralization is hosted in hydrothermal breccias outcropping as an erosion window which has partially exposed a high sulphidation epithermal system with disseminated precious metals mineralization covering a target area approximately 1200m long by 200m to 700m in width, and a surrounding series of at least seven quartz epithermal veins classed as intermediate sulphidation. The hydrothermal breccias are exposed in outcrop over an area of 350m by 100m and continue below recent glacial fluvial sediments. Mapping and sampling has identified precious metal values hosted in vuggy silica, and a porphyry system with anomalous gold and copper values.

The Company has made the decision, subject to financing, to advance the Pucamayo project without a partner. Recently announced changes to the mining regulations in Peru indicate that the previously expired Declaración de Impacto Ambiental ("DIA") issued for drilling at Pucamayo east, will be granted an extension to its expiry date. These recently announced changes are not in effect yet.