Lara Property

The 1,800 hectare Lara property is favourably located 400kms southeast of Lima within the Southern coastal copper belt of Peru. The property hosts a twin headed Porphyry copper-molybdenum system measuring 6km by 2 km. Drilling has tested only a small portion of the system with copper mineralization identified to date being located near surface, which is amenable to low cost, open pit mining.

Drilling at Lara has been conducted on three separate occasions from May 1997 to 1999, totaling 2,742m of reverse circulation holes and 134m of diamond core. This work resulted in the release of an independent NI 43-101 technical report authored by John Nebocat, Project Engineer, dated February 9, 2004 and revised March 31, 2005 entitled "Summary of Exploration, Metallurgy and Scoping Studies on the Lara Porphyry Copper Property and Proposed 2005 Exploration Program, Rio Viscus, Palpa, Peru". The report estimated an inferred mineral resource of 18.6 million tons grading 0.53% copper using a 0.2% copper cut-off.

In 2007 two vertical diamond drill holes were completed aiming to confirm the historic resource. Hole LA-07-01 was to a depth of 127.7 meters and Hole LA-07-02 was drilled to a depth of 292.1 meters. The first intercepted an interval of 20 meters averaging 1.2% Cu. The second intercepted 13.7 meters averaging 0.93% Cu. Both intercepts occurred within a zone of secondary sulfide enrichment. (See Table 1)

The Redzone technical team believes that previous modeling conducted has under estimated the potential of the system. Redzone believes that the limits of the Lara porphyry complex have not been adequately defined and the potential for expanding the system is favourable.