Mina da Boa Vista, in Distrito da Extracao, Diamantina, Minas Gerais State.

Minerex has acquired 6,800 hectares with undulating topography excellent access to water and the following assets:

• Concrete dam, with two flood gates 40m x 6.8m, and a storage capacity of 350 thousand cubic metres.
• Concrete dam without floodgates, 80m x 4m, storage capacity of 280 thousand cubic metres.
• 1,400 m landing field.

The region that covers the area is inserted in the tropical, subwarm, semi-wet climatic domain, with annual dry period of 4 to 5 months of duration, according to the systematic classification contained in NIMER (1989). In this domain, there is at least one month with average temperature below 18ºC, the annual average temperature is almost always below 22ºC. The summer, in spite of not presenting very high daily maximum temperatures, is warm, with average temperature above 22ºC.

BOA VISTA mine M.G BRASIL

The Boa Vista mine is an area of 6800Ha and the area, close to Diamatina, has been mined in a small way since the 1890’s.The mine area is now owned by Minerex. The company contracted Geomil from Belo to evaluate the property and they completed the first stage of a three part program which they designed.

A reserve of 22million carats was established comprising two parts of different material and grade. Firstly the weathered gravelly material about 10metres thick and a volume of 42.3 million cubic metres, with grade of 0.261ct/m3, containing 11.05 million carats worth approximately an average of $170/ct. and secondly the Taua conglomerate, approximately 5metres thick, with a grade of 0.143ct/m3 and volume of 78.8 million m3, containing 11.275 million carats. The largest stone recovered was 85 carats and there is a record of 11 stones over 10 carats. But usually the stones are under 1ct.

The higher grade material will be cheaper to process and should yield higher profit than the conglomerate rock. There is also a smaller volume of greenish chlorite rich conglomerate of high grade but it lies beneath all the other material.

Previous production costs were around $70/ct, from small volumes.

Used processing equipment is available from South Africa and a 50tph complete plant is available for 8.5 million Rand.

An environmental and rehabilitation report would be required before production could proceed. At present there is a bulk sample permit only ,as far as I can determine, for 50,000tons. However the area has a grandfather clause to allow for production under Regime of permission for Artisan extraction,but I cannot find any paperwork on this.

Total carats 22.325 million @$170 per carat = 3.795 Billion
Extraction cost $70 per carat = 1.6 Billion
Potential profit 2.2 Billion
Used extraction plant in S.A. 8,75 million Rand

Compiled by Phil Brown, A.R.S.M, mining Geologist, from Geomil reports and mine documentation, researched by Luiz Carlos Terto mining engineer from Belo H for Geomil.

• Founded in 1897, it started operations in November 2008. The Boa Vista mine has been mined in a small way since the 1890’s.The mine area is now owned by Minerex..
• Minerex hired 3rd party geological company to provide details regarding recovery, organization and description of previous drill cores. They carried out a preliminary geologic study to be used as basis for hiring the excavation meshes and samplings of prospection and exploration determined that approximately $9 million of additional investment is required to upgrade/replace equipment and modernize operations. Estimated reserves have been calculated at 22,325,611.54 cts. .
• Right now we have an exploration license with a completed first phase. We have requested an extension on the second the second phase to develop the pilot plant that will start giving profits to the project. This plant will have to be licensed with the proper authorities to obtain the necessary operation licenses and permits. The mine has no need for explosives, its process is hydraulic or drilling and excavation..
• Seller actively seeking a buy-out arrangement. Seller willing to work with the Buyer on a contractual basis to ensure that there is a smooth hand-over..
• Both in a 70% commercial / 30% industrial proportion. The region' history is for predominantly commercial diamonds. .
• Variety of stone sizes recovered. The biggest stone found to date was 85 carats..
• Average cost per carat for production is US$170. This number can be altered with different equipment. .
• The mine has been found to hold gold and other mineral reserves as well. .
• The results of the drilling program that was done by the independent consultants will be provided as a part of Due Diligence information sharing..
• Total carats calculated by Geomil for the Boa Vista Mine Location are 22.325 million @$170 per carat (current market value) - $3.795 BB.

Geologist Report April 9, 2014

Compiled by Phil Brown, A.R.S.M., mining Geologist, Ontario, Canada from Geomil reports and mine documentation researched by Luis Carlos Terto,
mining engineer from Belo H for Geomil.

• Seller actively seeking a buy-out arrangement and willing to work with the Buyer on a contractual basis to ensure that there is a smooth hand-over.
• Right now we have an exploration license with a completed first phase. We have requested an extension on the second the second phase to develop the pilot plant that will start giving profits to the project. This plant will have to be licensed with the proper authorities to obtain the necessary operation licenses and permits. The mine has no need for explosives, its process is hydraulic or drilling and excavation.
• The mine has been found to hold gold and other mineral reserves as well.
• The results of the drilling program that was done by the independent consultants will be provided as a part of Due Diligence information sharing.