Geology:
Gray sandstone, medium to fine grain, 98% purity.

Results:
RESERVES:  estimate based on 500 m of length by 500 meter width, by 50 m thickness and density of 2.6 = 32,500,000 metric tons Probable and possible reserves may reach 50,000,000 tons.

Detail Location:
Fadgoy mining area 2 km SE from the village of Pachicutza, 15 km toward the
SE of Guayzimi.

Report on the Pachicutza Silica Deposits
Michel Rowland, Geologist:
Introduction: An in situ inspection of the Fadgoy mining area was made September 5-6, 2000 by Ing. Darwin Suri and Geologist Michel Rowland to
report on the silica exploitation in said area.

Location: Fadgoy mining area is located 2 Km southeast from the village of Pachicutza, 15 Km toward the southeast of Guayzimi. UTM Coordinates from
the departing point are X=763000 Y=9541300 Z=920.

Access: From Loja to Pachicutza, four and an half hours, the Loja-Zamora leg
is paved. Between Zamora and Zumbi is a second grade CARRETERO LASTRADO. Between Zumbi-Paquisha leg is awful. Last leg is acceptable.

From Pachicutza to the silica deposit there is a 5 meter wide 5 Km long pilot
road built by TVX Mining. UNKNOWN WORDS" EMPALIZAR LASTRAR. 4M3 trucks can go through with no problem but to the stretch leading tot he mine,
which is not ready.

Weather. Humid, warm temperatures from 20º y 30º. Rain: 3000 mm a year.

Reserves are estimated in 500 m of length by 500 meter width, by 50 m thickness. With a density of 2.6 this means 32.500.000 metric tons. Probable and possible reserves may reach the 50,000,000 tons.

Works needed: Dig trenches of an orientation of N-40-F 50 meters long from
the existing road to define the thickness of the cover and verify the quality
of the sandstone.

Get representative samples for granulometry, impurities and other attached minerals and give them out among potential buyers as marketing tactics.

Conclusions and recommendations:
It is an excellent-quality gray sandstone, medium to fine grain, good for the multiple uses already indicated. The existence of an access road to the mine
is a plus for the realization of such a project. The ease for exploitation will reduce the operational cost to a maximum.

The only negative factor is the considerable distance from the market. Transportation cost will increase the final price. I would suggest to shop
for stockholders among buyers of the raw material.

Analytical Report:
SiO2 = 98.32%
Al2O3 = 0.151%
FO2O3 = 0.014%