The Tapian Main property lies several kilometers south of the Tapian-San Francisco property, and 35 kilometers south of Surigao City in the province of Surigao Del Norte. It is located near the villages of Tagbuyawan and Tapian, within the municipality of Mainit. The property is bordered by Lake Mainit to the east and by the Mindanao Sea to the west, and straddles the north-south ¬trending mountainous belt known as the Western Range.

The Tapian Main is covered by two Exploration Permits that collectively cover an area of 1,296 ha. Mindoro has earned 75 percent direct and indirect interest in the project and has the option to acquire a further 25 percent interest from its Philippine partner at feasibility stage. Part of the project is subject to 1.5 percent Gross Royalty to the original claim holder, subject to a buy-out provision.



Prior to World War II the Tapian Surigao Gold Mines, located in the southeast portion of the Tapian Main property, were operated by Tapian Surigao Gold Mines Incorporated using underground mining methods. They employed a 100-ton-per-day cyanidation mill which commenced operation in March 1939. Production records have not been found and presumably they were lost during the war. An account by Jonson (1987) states - "The pre-war mine workings were substantial, about 9,000 feet (ft) of drifting and crosscuts, 560 ft of raises and 1,260 ft of exploratory tunnels were developed in over two years of operation. Most of the development work was done on the Rosario vein system.

The Mt. Tapian prospect was identified in 1997 as a result of strong gold and copper anomalies in stream sediment samples from the southern portion of the property. A soil geochemical survey conducted over the Mt. Tapian prospect generated strong Au and Cu anomalism. The Au soil anomalies form broadly NE-SW-elongate zones that are termed the Rosario and Samson Zones, plus a smaller zone further to the southeast called the Southeast Zone. The Au anomalies are broadly associated with the margins of mapped intrusions

A strong IP chargeability anomaly, coincident with intrusives, soil geochemical anomalies and alteration, extends over an area of 1.4 km by 600 m, covering the Rosario and Sampson Zones, and is open to the south.

The Rosario Zone soil anomaly is about 500 m by 200 m and open to the north. It includes extensive pre-World War Two underground development of a vein system, which reportedly had a 100 ton per day mill. The workings are inaccessible and production is unknown. Very incomplete records suggest the average grade was 8.3 g/t gold- but this is very uncertain.

The adjacent Samson Zone soil anomaly is about 600 m by 200 m. Encouraging gold values from rock sampling were obtained over widespread areas in this zone. Copper soil anomalies greater than 150 ppm and up to 1,192 ppm are associated with both the Rosario and Samson zones.

TECHNICAL REPORTS

April 25, 2005

Independent Geological Report on the Surigao Property Group