COPPER-GOLD EXPLORATION & DEVELOPMENT IN SOUTH AMERICA

Highlights

• PFS Completed on Bi-provincial Project development alternative for a 24,000tpy/10yr., copper heap leach project in the Province of San Juan. (Quarry in the Province of Mendoza) (March 2012)
• Updated EIS submitted to incorporate a railway envisaged in the Bi-provincial Project (July 2012)
• After tax NPV of $133 million and after tax IRR of 29% (@ $2.80/lb copper) on Bi-provincial Project

Current Status

In Argentina, the Company is currently developing the medium size San Jorge porphyry copper-gold deposit, located in the Province of Mendoza. San Jorge is a development stage property with an established NI 43-101 reserve. Coro is acquiring the project from Franco Nevada.

The Company has filed an updated Environmental Impact Study ("EIS", July 2012) to incorporate the railway envisaged in the March 2012 Preliminary Feasibility Study ("PFS") on the San Juan Copper Leach Project ("Bi-provincial Project"), which involves the construction of an SX/EW heap leach operation in the neighboring province of San Juan. Current legislation (Law 7722) in the Province of Mendoza prohibits the use of sulphuric acid required in heap leaching of copper ore. Prior to the development of the SJ Project the Provincial Legislature of Mendoza, on August 24, 2011, had voted against ratifying the Company's Environmental Impact Declaration ("EID") for a float only project that had been approved by the Government on Mendoza in February 2011.

The vote took place prior to the elections, which were held on October 23, 2011 without the conclusions of the legislature's commissions who had spent a number of months evaluating the EID, and more pertinently, the validity of the process which led to its approval. Coro has completed a legal review of the process that led to the no ratification vote and believes it has grounds to file suit against the Mendoza government and certain individuals, involved in the process.

Law 7722 that prohibits the use of sulphuric acid and required the ratification of the EID for the float only project has been subject to legal challenges of its constitutionality by Coro and several other parties since its inception in 2007. Coro expects if the legal challenges to Law 7722 get resolved, Law 7722 could be declared unconstitutional, which could result in the removal of the ratification requirement of the Company's approved EID for the Float Only Project and the removal of the prohibition against the use of sulphuric acid in the Province of Mendoza.

Float Only Project - Environmental Approval:

The Provincial Legislature of Mendoza voted against ratifying the EID on August 24, 2011. The EID had been submitted by the Provincial Government of Mendoza, after they approved the EIS in February 2011. The Interdisciplinary Commission for the Environmental Evaluation of Mining Projects ("CEIAM" in Spanish) of the Province of Mendoza had recommended the Provincial Government approve the EIS after completion, compilation and evaluation of, amongst other things: the National Technological University ("UTN") of Mendoza Independent and Impartial evaluation (September 2009), that the EIS had satisfactorily complied with all national and provincial regulations; the Sectorial reviews (completed February 2010), a process coordinated and supervised by the Provincial Secretary of the Environment, which included more than 10 opinions from provincial bodies endorsing the project; the outcome of the public hearing and public consultation process; and the results of additional hydrological studies.

Economics:

The following table summarizes the economic studies undertaken to date on San Jorge. The Company had initiated a Leach Only Study in Mendoza prior to the implementation of 7722 law which banned the use of toxic chemicals including sulphuric acid in mining, in July 2007. As a result of the implementation of 7722, the Company proposed to develop a Float Only Project in Mendoza. As a result of the no ratification vote that occurred in August 2011, the Company evaluated the development alternatives available and completed a PFS on processing the oxide and enrichment blanket in San Juan (Bi-provincial Project).

Table 5: San Jorge Economic Evaluations		San Juan-Leach Only	Mendoza- Float Only	Mendoza- Leach Only
Base Case (NPV10%)	Pre-tax NPV	$260m	$291m	$159m
	Pre-tax IRR	41%	31%	28%
	After-tax NPV	$133m	$82m	$77m
	After-tax IRR	29%	18%	20%
	Price Deck	$2.80/lb Cu	$1.65/lb Cu and $600/oz gold
Average Cash Costs (Years 1 to 5)	Before Credits	$1.26	$0.91	$0.90
	After Credits	$1.26	$0.69	$0.55
Average Production (Years 1 to 5)	Copper (tonnes)	25,000	51,000	24,000
	Gold (ounces)	n/a	42,000	n/a
Mine Life		10	16	10
Initial CAPEX		$184	$277m	$162m
Prepared By		PROPIPE	GRD MINPROC	AUSENCO
Report Type		PFS	PEA	PFS Standard
Date		Mar 2012	April 2008	April 2008

For full details of the Bi-provincial Project reference should be made to the Company's News Release 12-04 dated March 5, 2012. For a full discussion of the results from the Float Only Project Preliminary Economic Assessment ("PEA"), reference should be made to the Company's News Release 08-09 dated April 22, 2008.

San Jorge Resources



Acquisition Terms:

Annual payments of $1.25 million, for 10 years, payable quarterly, commencing in the quarter ending March 31, 2012 ($0.9 million paid in October 2012). In addition a 7.5% net smelter royalty ("NSR") payable on all gold produced from the property. The annual payments are not payable when that payment is exceeded by the gold NSR payment. Coro may at any time, prepay the outstanding amount with a one-time payment equal to the net present value of the future payments, using a 5% discount rate. No other consideration, obligations, payments, or royalties are due, and Coro may withdraw from the Agreement at any time by not making the due payments.