The Company recently arranged for two people from a Montreal-based engineering company to visit the Telamayu mill site in Bolivia. The purpose of the trip was to undertake a due diligence review on behalf of the Company. Telamayu is the site of BacTech’s proposed tailings reclamation project.

The following benefits were identified by the engineers:

Availability of ample space in the existing plant

Water in sufficient quantity

Good power costs and availability ($0.04-0.05/kWh)

New tailings site to be built at a small distance from the existing mill

Qualified manpower available locally

Space for offices and housing is available

The engineers made the following recommendations for the project:

Sonic Vibracore drilling of 5 holes twinning COMIBOL test pits dug in 2004

Subsequent coring, sampling and analysis of the tailings (500 meter program), confirming the concentrations of tin and gold, in addition to silver and copper

Preparation of a 400 kg sample for new metallurgical test work

Completing an NI 43-101 resource estimation, report and recommendations

Special attention will be given to the tin content of the tailings. Additional sampling and analysis will determine whether the high tin concentrations generated by COMIBOL in 2004 exploration wells are, in fact, correct, in which case the tin values would rival the silver values and greatly enhance the economics of the project.