Soledad

Prospective for: Gold/Silver/Copper

Update:

On June 16, 2014, Mariana Resources Ltd. ("Mariana") completed a twelve hole, 2084m diamond drill program at Soledad that commenced in late April 2014.

The first stage of the drill program tested the surface targets. The first hole successfully confirmed historical results from Breccia #1. (33 m of 3.5 g/t Au, 22.8 g/t Ag, and 0.95% Cu).

Holes two and three tested the Cima Blanca zone, interpreted to be a high sulphidation epithermal zone. SDH-002 was drilled to a depth of 88.5m to test a prominent chargeability anomaly coinciding with a zone of argillic alteration at surface. SDH-003 was drilled approximately 100m east of SDH-002 in the centre of the argillic alteration zone to a depth of 273m, and returned 5m of 3.9g/t Au at 43m. Mariana interpret this interval in SDH-003 as the mineralization expected in the upper levels of a porphyry system.

SDH-004 and SDH-006 tested Breccia #3, an area of multiple sub parallel quartz-tourmaline breccias associated with EW trending structures. Both holes in Breccia #3 intersected minor zones of mineralization.

SDH-005 tested Breccia #6, and was drilled to 85.5m, with the first 76m similar to Breccia #1, exhibiting intensely mineralized breccia which tested 1g/t AuEq over the 76m. (76m of 0.53 g/t Au, 33.4 g/t Ag, and 0.02% Cu.) SDH-005 is about 100m higher in elevation that SDH-001, leading to speculation there may be a copper mineralized zone below.

SDH-007 tested Breccia #5, and returned 96m of 1.5 g/t AuEq (0.92 g/t Au, 15.2 g/t Ag, and 0.2% Cu. Gold-copper values are consistent, averaging 0.9g/t Au and 0.2% copper over the 96m.

SDH-008 tested Breccia #2, an area of sub parallel E-W quartz-tourmaline structures with breccias., and intersected 28m of moderately silicified andesite with tourmaline-pyrite, anomalous in Au, As, and Mo.

The objective of the latter stage of the drill program was to discover a breccia-hosted and/or porphyry hosted bulk tonnage mineralization at depth associated with the cluster of mineralized breccias expressed at surface.

SDH-009 tested Breccia #1 at depth, and was drilled at a steep angle (80°) below SDH-001, and from the same setup as SDH-001, in order to test for possible higher grade feeder zones and indications of underlying porphyry mineralization. SDH-009 intersected 174m of mineralized breccia (from 92m to 266m) that averaged 4.4 g/t AuEq (0.74 g/t Au, 114 g/t Ag, and 1.2% Cu). This hole intersected three zones of strong quartz-tourmaline-sulphide mineralization, and included 29m of 9.8 g/t AuEq (1.85 g/t Au, 301g/t Ag, and 2.1% Cu) starting at 236m.

Further drilling results are expected shortly for SDH-011 and SDH-0012; SDH-010 was abandoned after intersecting an aquifer at about 55m. Of particular interest is SDH-012, a near vertical hole, drilled to 437m depth in Breccia #5, to also test for possible higher grade feeder zones and indications of underlying mineralized porphyry associated with the cluster of mineralized breccias expressed at surface within the roughly 1 km diameter area of interest.

Mariana can earn a 70% interest in Soledad by completing cumulative exploration work of US$4 million, and making cumulative cash payments of US$1.1 million to Condor, prior to October 31, 2017.

Location:

The Soledad Property is located in the Cordillera Negra metallogenic province in the central Peruvian Andes and about 34 km to the south of the Pierina gold-silver mine operated by Barrick Gold Corporation.

Ownership:

The 7.13 sq km project was acquired by sealed bid auction in late 2011, and is 100% owned.

Previous Work:

The earliest documented work on the Soledad property dates back to the 1960's when it was explored for copper. In 1996, a junior exploration company carried out surface sampling, conducted an IP geophysical survey, and completed a drill program to test one of several hydrothermal quartz-tourmaline breccia pipes on what was then a much larger property. Five holes of a twelve hole program were drilled on the current Soledad property and the best three holes returned a 61.5m interval grading 1.92 grams per tonne (g/t) gold (Au), 145.8 g/t silver (Ag), and 1.82% copper (Cu); a 28.5m interval grading 5.0 g/t Au and 1.10% Cu; and a 33m interval grading 2.54 g/t Au. These holes were all drilled in Breccia #1; none of the other breccia pipes on the Soledad property have been drill tested.

Geology/Mineralization:

The property comprises a number of mineralized hydrothermal breccia bodies in an extensively altered system associated with abundant gossans and quartz veins, multiple quartz-tourmaline structures up to 500m long and 10m wide, as well as polymetallic veins with Ag-Cu-Pb-Zn mineralization. The alteration system now measures approximately two kilometers in diameter. Site visits and sampling by Condor geologists confirmed the potential high grade precious and base metal values within the principal breccia, Breccia #1, which had been partially drill tested in 1996, but also led to the discovery of an additional eight (8) similar breccia bodies, measuring up to 200m in diameter and also anomalous in gold and silver values. Samples from two of the new breccia zones returned anomalous precious metals values to 400 ppb Au and 102 g/t Ag. At least eight (8) quartz-tourmaline breccia structures were also noted, measuring up to 10m wide and 500m long.

Condor geologists believe that the Soledad project is a hydrothermal breccia complex along with a high sulphidation epithermal system at higher elevations, which carries anomalous gold and silver values, measuring some 650m by 450m. In addition, a case can be made for the presence of a potential gold-silver-copper mineralized intrusive at depth.

Recent activity:

A geophysical survey was completed by Condor in 2012, and comprised a total of 25.45 line kilometers of induced polarization (IP) and magnetics, along with prospecting, mapping and sampling. The prospecting and geophysics led to the discovery of a previously unrecognized zone of intense advanced argillic alteration system within the topographically highest elevations (4500m) in the northeastern sector of the property that so far measures 650m by 450m. Quartz-alunite is pervasive within this zone, along with vuggy quartz and local granular silica which is interpreted to represent a high sulphidation epithermal system possibly overlying silica ledges or breccias and an intrusive at depth. Geochemical rock chip samples are anomalous in gold and silver within this pervasive advanced argillic alteration zone. Sampling of a 30 cm wide drusy quartz veinlet swarm or silica fluidization structure within the broad zone of advanced argillic alteration returned peak gold values of 10.1 g/t, 17.4 g/t and 31.9 g/t Au and 79.5 g/t Ag.