Mara Rosa

History

The Posse Deposit was discovered in 1982 by a predecessor of BHPBilliton, by drilling and testing a panned gold-in-soil anomaly in an area mined actively by garimpeiros. BHPBilliton sank a shaft and undertook small scale mining of the oxide ore before forming a joint venture with Western Mining Ltd. in 1988. In 1992, the property was sold to Western Mining. Western Mining operated an open pit from 1992 to 1995.

In total, it is estimated that 80,000 oz. of gold was extracted from Posse. Of this amount, approximately 31,000 oz. was extracted by Western Mining during this period, using heap leach and a 600t/d CIL plant. In 1998 Western Mining sold the deposit to Metallica Brasil Ltda. for US $1.5 million. Metallica conducted small scale drilling, compiled data and searched for extensions to the mineralization by mapping, soil sampling and ground geophysics.

Amarillo purchased the Posse Deposit from Metallica in October 2003 for US $450,000. The project carries a 1% NSR to BHP/Billiton, and a 1% NSR to Franco Nevada. Changes in management, the shareholder base and the purchase of the Mara Rosa property triggered an RTO (Reverse Take Over), from which the Company emerged in November 2005. Upon completing the RTO process, the Company immediately commenced drilling on the Posse Deposit.