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The Arqueros gold-silver deposit is located in the La Coipa sector of the northern part of the Maricunga district of the Atacama Region of Chile. The Maricunga Gold Belt hosts in excess of 90 million ounces of gold in resources and is considered to be highly prospective for large scale gold deposits. In 2009, the Marcunga Gold Belt produced 465,000 ounces gold equivalent from two mines, Maricunga (formerly Refugio) and La Coipa, both operated by Kinross Gold Corporation. Several large scale projects are in progress, including Cerro Casale (30 Moz gold, Barrick/Kinross), Marte-Lobo (6 Moz gold, Kinross), Caspiche (26 Moz Au, Exeter) and Volcan (10 Moz gold, Andina Minerals).

The project at 7,052,500mN 482,500mE, 4,100 metres above sealevel, is linked by an all-weather road to Copiapo, a regional mining service 800 km north of Santiago.

Regional infrastructure is reasonable, with good road access and grid power already supplied to nearby large scale mining complexes such as La Coipa which is 20 km to the south.

The deposit is hosted within a zone of multiple alteration zones and geochemical anomalies known as the Esperanza project, discovered in the 1981 as part of a regional exploration programme conducted under the auspices of Minera Anglo American Chile Ltda (now Anglo American Norte S.A.).

The Chimberos silver deposit which is part of Esperanza and only 1 km from Arqueros, was mined by Compañia Mantos de Oro (Kinross) from 1998 to 1999, producing 34 Moz silver over 13 months. Subsequently, the high grade zones within Arqueros were mined underground from 2000 to 2004 by a local Chilean company who over the five years extracted 288,000 ounces gold equivalent from 1.2 million tonnes of ore, which it processed at an average grade of 1.34 g/t gold and 365 g/t silver (7.4 g/t gold equivalent), using a 4.5 g/t gold equivalent cut-off grade.

Laguna Resources commenced field activities in November 2009, with the objective of ascertaining the size and quality of the mineralisation at Arqueros, and to expand and upgrade that resource, and scope out the development for feasibility study in 2011.

Laguna Resources has completed 11,500 metres of drilling, which in addition to over 100,000 metres of production drilling has allowed the company to define a Mineral Resource in excess of over one million gold equivalent ounces. This could be mined by open-cut methods and processed using traditional agitation leaching with cyanide, and will be the focus of development activities.

Panorama of Arqueros looking east from the haul-road to La Coipa plant.

Arqueros Sur showing portals, silicified structures and drill roads.

Geology

Gold and silver mineralisation at Arqueros is hosted by a high sulphidation epithermal system, associated with regional N60W and N10-20E structures hosted in Tertiary acid volcanics, tuffs and breccias, overlying folded Paleozoic marine sediments, and intruded by dacite stocks. It is part of the Cerro Bravos – Esperanza volcanic complex (25-22 Ma). The deposit has a similar style of mineralisation to La Coipa, and shares the structural relationships of the Maricunga Gold Belt.

The principal controls for alteration and mineralisation are the presence of dacite and rhyolite porphyry stocks, and zones of structural weakness, associated with north-east trending regional structures.

Hydrothermal alteration is strongly silicified and argillic, with kaolinite clays, cryptocrystalline quartz, and in places barite, alunite and abundant jarosite. Textural destruction is partially complete.

Mineralisation occurs two distinct but overlapping domains, a sub-horizontal silicified silver layer and a series of sub-vertical gold-silver bearing silicified structures:

• Stratabound silver mineralisation dips 5-10°N, and is associated with zones of high primary porosity in breccia and tuff horizons, forming a blanket, or "mantos", over twenty metres thick. High-grade zones occur within the mantos, near the top and related to sub-vertical silica structures where they intercept and merge with the mantos.
• Gold and silver mineralisation is associated with sub-vertical (80°W) silicified structures trending N10-20°E, and a silicified vuggy breccia composed of leached and argillised fragments of fine tuff, stained with jarosite. Vein thicknesses are 3 to 10 metres.

The ore mineralogy for gold and silver may be considered oxidised, comprising mostly cerargyrite (AgCl), with minor argentojarosite (AgFe₃(SO₄)₂(OH)₆), native silver, argentite (Ag₂S), electrum and native gold in the size range of 0.5 to 50 micrometres. In the primary zone, below the current water table, other ore minerals include pyrite (relatively abundant at depth) with traces of chalcopyrite, sphalerite, galena, enargite and marcasite.

There is potential for resource expansion of the gold domain at depth and along strike at the Huantajaya deposit.

Plan view of grade distribution in the mantos'

Longitudinal view of grade distribution in the Vicuña structure

JORC Resource

The processing of assay data retrieved from historical exploration and production datasets resulted in the estimation and release of a maiden JORC Inferred Resource in November 2009: 783,000 gold equivalent ounces (16 Mt @ 0.5 g/t Au & 64 g/t Ag, or 1.5 g/t gold equivalent) was a significant result, confirming the potential for the resource to achieve a minimum of one million ounces net of historical mine production.

The current JORC resource upgrade was completed following an 11,500 metre surface and underground drilling campaign conducted by Laguna Resources from December 2009 to April 2010:

• 1.26 million gold equivalent ounces at 1.24 g/t gold equivalent (0.5 g/t gold equivalent cut-off grade), or
• 1.09 million gold equivalent ounces at 1.49 g/t gold equivalent (0.7 g/t gold equivalent cut-off grade), or
• 845,000 gold equivalent ounces at 1.95 g/t gold equivalent (1.0 g/t gold equivalent cut-off grade).

Gold equivalence based on equivalence ratio of 60: AuEQ60 = Au + Ag/60.

Resource Drilling

Surface Drilling

From late November 2009 through to early February 2010 when the surface programme was completed, 8398 metres of reverse circulation holes were drilled, logged and sampled in 43 holes. 6813 samples were assayed for gold, silver and in some cases, copper. In addition, 840 metres of diamond drilling was completed in 8 holes for geotechnical purposes.

Highlights of the surface reverse circulation campaign include:

• AR09-03 37 metres at 1.3 g/t Au eq. including 12 metres at 2.7 g/t Au eq.
• AR09-05 13 metres at 3.5 g/t Au eq. including 4 metres at 7.1 g/t Au eq.
• AR09-06 26 metres at 1.1 g/t Au eq. including 3 metres at 3.9 g/t Au eq.
• AR09-07 15 metres at 1.8 g/t Au eq. including 6 metres at 3.1 g/t Au eq.
• AR09-09 111 metres at 1.23 g/t Au eq. including 12 metres at 4.6 g/t Au eq.
• AR09-10 26 metres at 1.7 g/t Au eq. including 6 metres at 3.8 g/t Au eq.
• AR09-12 24 metres at 1.6 g/t Au including 2 metres at 6.6 g/t Au eq.
• AR09-16 18 metres at 2.8 g/t Au including 3 metres at 7.3 g/t Au eq.
• AR09-24 34 metres at 1.4 g/t Au eq. including 5 metres at 4.9 g/t Au eq.
• AR09-37 81 metres at 1.63 g/t Au eq. including 8 metres at 3.8 g/t Au eq.

The drilling results of the surface campaign demonstrated the continuity of grade and extent of the silver-bearing mantos, and reconciliation with the historical data.

Underground Drilling

Underground diamond drilling was undertaken from five locations on the main drive along the axis of Arqueros Sur, targeting the gold and silver-bearing structures which cross-cut the silver domain.

Underground drilling commenced in late February and was completed by mid-April. In all, 1420 metres of diamond drilling (NQ) was completed in 15 drillholes, on sections N1300 to N1700. 866 samples were assayed for gold and silver. Results confirmed that sub-vertical structures where consistently mineralized with grades of the order of 1 to 2 g/t Au equivalent and the presence of pods with high grade gold mineralization (>3 g/t Au). This is consistent with historical data.

Highlights of the underground diamond drilling campaign include:

• VC10-01 10 metres at 2.2 g/t Au eq. and 9 metres at 2.3 g/t Au eq. including 3 metres at 4.7 g/t Au eq.
• VC10-03 15 metres at 3.5 g/t Au eq. including 5 metres at 6.3 g/t Au eq.
• VC10-05 12 metres at 2.2 g/t Au eq. including 3 metres at 5.6 g/t Au eq.
• VC10-07 11 metres at 2 g/t Au eq. including 3 metres at 4.3 g/t Au eq.
• VC10-10 3 metres at 3.8 g/t Au eq. and 29 metres at 3.3 g/t Au eq. including 17 metres at 4.5 g/t Au eq.
• VC10-13 3 metres at 3.5 g/t Au eq
• VC10-16 6 metres at 2.3 g/t Au eq. including 2 metres at 5.3 g/t Au eq.

Technical Studies

Exploration work is being complimented by supporting technical studies in metallurgy, process design, geotechnical assessment of rock properties and conceptual mine planning. In addition, fundamental issues such as mine site infrastructure, environmental impact assessment, water, power and licensing are being reviewed and acted upon.

COMPETENT PERSONS STATEMENT

Dr Nicholas Lindsay is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Lindsay is the Managing Director of Laguna Resources NL and consents to the inclusion in this release of the matters based on his information and information presented to him in the form and context in which it appears.

CONSENT

The Mineral Resource has been estimated by Mr P Ball (Director of DataGeo Geological Consultants) from information provided by Laguna Resources NL and its agents. Mr Ball is a member of the Australian Institute of Mining and Metallurgy and has sufficient experience relevant to the style of mineralisation under consideration to qualify as a competent person as defined in the 2004 edition of the "Australian Code of Reporting of exploration results, mineral resources and ore reserves". Mr Ball consents to the inclusion of the mineral resource estimate in the form and context in which it appears based on the information presented to him.

DISCLAIMER

This document contains certain forward-looking statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, some of which are outside the control of Laguna Resources NL, which could cause actual results to differ materially from such statements.

Gold equivalence (AuEQ60) is estimated as AuEQ60 = Au + (Ag*EQ60), where Au = gold content, Ag = silver content and EQ = equivalence factor, which is calculated as the ratio of gold price to silver price * ratio of gold metallurgical recovery to silver metallurgical recovery. EQ60 = PAu/PAg * RAu/RAg = 60, based on long-range prices of gold at US$900/oz & silver US$15/oz, and recoveries of gold at 83% and silver at 82% respective.