Junin Mineral Property: Location, Title & Acquisition

Location

The Junin project lies on the Western flanks of the Andes in the Cordillera Occidental. This belt located in the Sierra is known as the Toisan Mountain Range. The topography is rugged comprising steep sided hills and occasional plateau. Within the project area elevation ranges from some 1,500 m to 3,000 m. Vegetation is a mixture of tropical forest with areas cleared for subsistence farming and for plantations of sugar cane, bananas and maize in the lower sectors.

The project is comprised of three contiguous concessions, the Golden 1 and Golden 2, and Magdalena 1, located in the parishes of Peñaherrera and Garcia Morena, canton of Cotacachi, province of Imbabura in northwest Ecuador, approximately 135 kilometres north-northwest of the capital city of Quito.

Description

⁽¹⁾ The concessions are renewable at that time.

Title and Acquisition

By an assignment of mining rights dated March 29, 2004, and registered April 28 2004, the original holder of the Golden 1 and 2 concessions, Dr. Bustamante, transferred the Golden 1 and Golden 2 concessions to Ascendex in consideration of the minimum annual payments and the NSR royalty described below. By an assignment of mining rights dated September 17, 2004, Ascendex transferred the Golden 1 and Golden 2 concessions, to Ascendant Ecuador. The Promissory Note was issued in consideration of the assignment of the mining rights to the Golden 1 and Golden 2 concessions to Ascendant Ecuador by Ascendex as well as for equipment and a deposit on the purchase of a 60 ha farm known as the Florida Farm described below. The Promissory Note in the amount of $418,668 (refer to Note 7(a) to the consolidated financial statements attached hereto) has no specified terms of payment and bears no interest.

In addition, Ascendant Ecuador paid US$5,000 to Dr. Bustamante for the transfer of the concessions from Ascendex to Ascendant Ecuador, pursuant to the terms of the assignment of mining rights dated March 29, 2004. Ascendant now holds the Golden 1 and Golden 2 concessions (through its wholly-owned subsidiary, Ascendant Barbados and its wholly-owned subsidiary, Ascendant Ecuador), and has the right to prospect, explore, exploit, benefit, process, smelt, extract, refine and commercialize the minerals that might exist and be obtained from the Junin concessions.

By assignment of mining rights dated February 24, 2005 and registered on March 2, 2005, Ascendex transferred the Magdalena 1 concession to Ascendant Ecuador in consideration of reimbursement of the costs incurred by Ascendex in acquiring the Magdalena 1 concession.

On February 24, 2005 Ascendex transferred to Ascendant Ecuador the title for the Florida Farm. The Florida Farm is located on the access road to and approximately 8 km from the Junin project. The purpose of the acquisition of the Florida Farm is to give Ascendant a local presence and to use it as a demonstrative farm to teach the local inhabitants improved farming techniques. Ascendant has refurbished the farmhouse that had been abandoned and left to waste and has rehabilitated the land for planting. As income of local inhabitants of the area is based primarily on rudimentary farming, Ascendant began introducing new techniques for increasing productivity and new cash crops for increased profitability. On April 1, 2005, Ascendex transferred title to a one ha area adjacent to the Florida Farm, known as "Las Palmas de Llurimaguas" to Ascendant Ecuador.