Pucamayo

Prospective for: Gold/Silver

Update:

In late 2016/early 2017, the Company concluded a concession swap, and acquired 12 additional concessions, bringing the total area of the Pucamayo project to 113 sq km.

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:

In 2015 the Company's holdings at Pucamayo East consisted of 2 concessions covering 12 sq km: the original Pucamayo 14 concession, and Tinco 101, both 6 sq km. The Company has an 85% interest Pucamayo 14, and the vendor holds a 1% NSR and a 15% interest carried to commercial production. The Company has a 100% interest in the Tinco 101 concession.

In 2015, the Company acquired the 3 sq km Anta Rumi concession, located south of, and contiguous to, the southern border of the Pucaymayo 14.

In early 2016, the Company acquired the 4 sq km Sandra IMG concession south of, and contiguous to, the southern border of Anta Rumi 101, bringing the total project holdings at that time to 19 sq km.

In late 2016/early 2017, the Company concluded a concession swap, and acquired 12 additional concessions, bringing the total area of the Pucamayo project to 113 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.
• 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.
• In the East Zone, channel samples up to 0.95 g/t Au and 343 g/t Ag over 5m.
• 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.

Geology/Mineralization:

Pucamayo East has an intermediate to high sulphidation potential disseminated bulk tonnage target measuring 1.2 km long by 200m to 700m in width.

The East Zone is characterized by an erosion window which has partially exposed a high sulphidation epithermal system with disseminated precious metals mineralization covering an area approximately 1.2 km long by 200m to 700m in width and a surrounding series of at least seven epithermal quartz veins. The East Zone remains open in all directions. Part of this target is comprised of a quartz vein stockwork and hydrothermal breccias with vuggy silica and silicified fissures or ledges with pervasive disseminated secondary iron oxides. The hydrothermal breccias are exposed in outcrop over an area of 350m by 100m and continue below recent glacial fluvial sediments. A total of 119 chip and channel samples were collected over the East Zone and results range from negligible to a high of 0.96 g/t gold and 554 g/t silver. Channel samples within the breccias returned values of up to 0.95 g/t Au and 343 g/t Ag over 5m, 0.93 g/t Au and 394 g/t Ag over 5m, and 0.53 g/t Au and 216 g/t Ag over 4m. A 1m channel sample across one of the banded quartz-carbonate veins returned 0.36 g/t Au, 554 g/t Ag, 1.40% Cu, 29.20% Pb and 21.20% Zn.