The southern sector of the Maricunga Gold Belt is characterised by the presence of very large porphyry gold deposits and a smaller number of high grade epithermal systems. Large porphyry gold deposits include Caspiche and Cerro Casale. These have published resources (Measured, Indicated and Inferred) in excess of 30 Moz and 40 Moz gold equivalent respectively, with gold content being 24 Moz and 30 Moz – the balance is in copper.

Processed satellite images of the Southern Maricunga prepared by Laguna Resources, demonstrated the presence of a series of iron-clay anomalies, many of which are known zones of hydrothermal alteration, and some mineralised. In addition, geological interpretation indicates the possible presence of a poorly developed collapse feature associated with the centrally-located Cadillal stratavolcano (Nevado de Aguas Blancas Volcanics - Upper Tertiary) intersecting regional north-west and north-east structural features, which may account for the cluster.

Laguna Resources has identified this as a highly prospective area to identify, explore and develop a large scale gold project. To that end, it has signed an option agreement on two three properties, Cachitos and Maricella. The company has also "pegged" ground in its own right in the area.

Crosta image of the Southern Maricunga mineralised cluster showing alteration (clay-iron anomalies) and major zones of alteration

Cachitos
The Cachitos gold prospect is located on the south-western flanks of the Cadillal stratavolcano. It is accessed by an all weather road that passes through the Rio Turbio river valley to the border with Argentina. It is about 160 km south-east of Copiapo.

Location of Cachitos relative to the proposed collapse feature associated with the Cadillal stratavolcano (Nevado de Aguas Claras volcanics) and mineralised cluster.

Cachitos was identified as prospective because of its location on major gold-bearing structures within the highly productive Southern Maricunga sector, clay-iron anomaly, and the presence of high grade gold-bearing breccias and epithermal vein sets, some of which are exploited by artisanal miners.

Schematic interpretative cross-section through the Aguas Claras volcanics, showing Cachitos relative to Cerro Casale.

Inspection of the property confirmed the presence of gold mineralisation in hydrothermal breccias (1 to 2 g/t Au in rock chips) and other features which indicate potentially widespread mineralisation. Early exploration work by Laguna Resources will involve geological mapping, a geochemical grid, and IP/resistivity and magnetic surveys to identify targets for drilling.

Laguna Resources is targeting 2 to 4 million ounces of gold mineralisation on this project.

Maricella

Maricella is an advanced exploration project covering 450 hectares, located 17km east of Cerro Casale (40 Moz Au equivalent) and 20 km SE of Caspiche (30 Moz Au equivalent); on same structure as these major deposits, and in the same zone and access route as Laguna's Cachitos Gold Project (30 km to the south-west). The target is five million ounces of gold.

The Maricella mineralisation is marked by a prominent 800 x 800 metre hydrothermal alteration zone, which was prospected in the 1990s. Previous work includes 4.5 km of trenching and road cuts and eight reverse circulation drillholes. Trenches displayed continuous mineralisation laterally up to 648 metres on surface. Drilling (2328 metres) penetrated the centre of the alteration zone, and generated mineralised intersections 50 to 250 metres from surface at grades of 0.3 to 0.7 g/t gold, with the best intersection 118 metres at 0.68 g/t Au. Copper is present, and is considered a prime target for grade enhancement with depth, an important factor in grade at both Cerro Casale and Caspiche.

Photograph of the Maricella alteration zone (centre).

Historical drill intercepts show mineralisation extending from surface is deep-seated and remains open with depth.

These grades are consistent with grades at Cerro Casale (1874 Mt at 0.51 g/t gold and 0.21% copper) and Caspiche (1473 Mt at 0.51 g/t Au and 0.20% Cu), characterised by long mineralised intersections which increase in grade with depth. Maricella has the potential to host similar mega-ounce mineralisation as those deposits, and 5 Moz is considered to be an achievable target.

Historical trench intercepts show that mineralisation is also extensive laterally:

The immediate focus of exploration is to test the system for large scale mineralisation. Exploration work planned includes validation of the geology, re-sampling of road-cuttings and trench cuts, geophysics (IP/resistivity and magnetic) for drill target generation, followed by 2000 metres of deep drilling to test the extent of mineralisation and potential for higher grade zones.

Laguna Resources is targeting 5 million ounces of gold mineralisation on this project.

Cerro Iman

Laguna Resources has an option on 1900 hectares on a property known as Cerro Iman-Romero in the Southern Maricunga, 60 km from Copiapo and 50 km to east of Cachitos. The concession comprises several artisanal workings revealing a number of epithermal veins and hydrothermal breccia pipes, together with gossans and gold mineralisation.

Laguna Resources has added 5200 hectares of claims in its own name to the initial option area.

No exploration has been conducted on this property previously, but Laguna Resources will be conducting geological mapping and sampling, to be followed by an IP/Resistivity survey to generate drill targets for a late-2010 programme.

In terms of geology, the gold mineralisation on the Cerro Iman concession is hosted by series of hydrothermal breccias emplaced along an east-west structure. These breccias are related to hydrothermal activity associated with Lomas Bayas – El Durazno caldera, which is emplaced within the Carrizalillo mega-caldera (Paleocene – Early Eocene).

Mina Iman which is the focus of immediate exploration by Laguna, is an artisanal working, which has been channel sampled, with a section grade of 54 metres at 1.2 g/t gold, or 6 metres at 3.4 g/t gold, and individual values of up to 14 g/t gold.

The principal mine at Cerro Iman occurs within an alteration halo, with the dimensions of the pipe (central, outcropping zone outlined by inner circle) at 450 metres wide (for scale). The outer black and blue haloes represent the possible sub-surface extent of the hydrothermal pipe.

At the mine, gold mineralisation occurs disseminated within a hydrothermal breccia which has a continuous outcrop extent of 60 x 300 metres. The observed breccia comprises poorly sorted fragments of volcanic rock in a gritty matrix. Alteration is argillic-silicic with sericite and tourmaline. The outcrop is gossanous, with relict pyrite and minor chalcopyrite. There is evidence of a cap to the breccia pipe, indicating that Mina Iman is high in the system, with its greatest potential lying below. There are also other artisanal workings based on gold veins on the concessions and in close proximity to the hydrothermal pipe at Mina Iman.

The geological model is that an epithermal gold deposit comprising mineralised hydrothermal pipes and veins, which expand and coalesce with depth into a large scale mineralised system.

Exploration on the Cerro Iman project has commenced with geological mapping and geochemical sampling underway. The Company intends to lead the campaign with geophysical (IP/resistivity and magnetics) to generate targets for drilling in late 2010.

The combination of the Iman mine, Romero and other hydrothermal pipes on the concessions generates a potential for 2 to 4 million ounces of gold mineralisation, based on target of 30 to 60 Mt grading between 1.5 and 2.0 g/t gold.

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.

The Exploration Target presented for Cachitos is 2 to 4 million gold ounces of in mineralisation grading between 1.0 and 2.0 g/t gold equivalents. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

The Exploration Target presented for Maricella is 5 million gold equivalent ounces of potential gold mineralisation grading about 1.0 g/t gold. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

The Exploration Target presented for Cerro Iman is 2 to 4 million gold ounces of potential mineralisation grading between 1.5 and 2.0 g/t gold. The potential quantity and grade is conceptual in nature. There has been insufficient exploration to define a Mineral Resource under the JORC Code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Gold equivalence in grams per tonne (AuEQ) is estimated as AuEQ = Au + Cu*EQ, where Au = gold content, Cu = copper content and EQ = equivalence factor, which is calculated as the ratio of copper price (per gram) to gold price (per gram) * ratio of copper metallurgical recovery to gold metallurgical recovery assumed here at 100% each. EQ = PCu/PAu * RCu/RAu = 0.000173, based on long-range prices of gold at US$900/oz & copper US$5000/t.