Name: Santander mine.

Location: The Santander mine is located on the western edge of the Altiplano, which forms the Western Cordillera of the Andes, in the Central Peruvian polymetallic belt.

Controlling Company: Trevali Mining Corporation.

Brief History: Trevali Mining Corporation, through its Peruvian subsidiary, Trevali Peru, has the exclusive right for 50 years (with an automatic 50-year extension) to engage in exploration, development, exploitation, processing and commercialisation activities at the Santander property from Compañia Minerales Santander. The agreement also allows for the exclusive use of the existing infrastructure.

Brief Description: Santander is a formerly producing property and consists of 66 mineral concessions covering 950.7 ha and six petitorios covering 3 504 ha. Underground development at the Santander mine started in mid-2012, with about two kilometres of 5 m x 4 m ramp and decline completed at the end of the year. Three portals have been constructed to accommodate between 4 000 t/d and 5 000 t/d of mining from the three Magistral deposits.

Mining Method: High-speed, one-way trackless mining.

Products: Silver-lead and zinc concentrates.

Major Infrastructure and Equipment: Infrastructure at the mine includes a historic 1 000-person camp, which has been fully refurbished into a modern 500-person camp and associated support facilities. Glencore International, as part of the formal agreement, is providing and will operate a modern 2 000 t/d concentrate plant to produce silver/lead and zinc concentrates. Additionally, the Tingo hydroelectric generating facility is located about 17 km down valley to the west and is connected to the mine site.

Geology/Mineralisation: Santander is underlain by a package of Cretaceous clastic and carbonate sedimentary rocks that have been tightly folded into a series of north-west-trending anticlines and synclines. A large number of north-east to east-west-trending faults and fractures and represent important mineralisation controls. At a regional scale, the intersection of these faults and the north- west-trending fold structures are the loci for intrusion of subvolcanic stocks, hydrothermal activity and associated polymetallic mineralisation.

Mineralisation at the property can be classified as a carbonate replacement deposit or a high temperature carbonate deposit type. Such deposits contain significant silver mineralisation and are frequently observed in Mexico and Peru, the world’s top two silver producers, respectively.

Silver, lead, zinc, copper and iron sulphide mineralisation on the property is intimately associated with garnet-rich skarn and/or associated lower-temperature gangue, which forms pipe-like and replacement or ‘manto-type’ concentrations. The main mineralised concentration discovered to date, the Santander pipe, occurs as an annular ring of massive to semimassive sphalerite, with accompanying argentiferous galena, pyrrhotite and minor chalcopyrite that surround a central core of garnetiferous skarn.

There are at least four other mineralised zones known on the property, termed the Magistral, which includes the North, Central and South deposits and the Puajanca prospect. These zones are more replace- ment or manto-like in character and were being explored and developed when operations ceased at the property in August 1992. Exploration of the Magistral deposits resumed in late December 2007.

Resources: As at July 31, 2012, the total indicated mineral resource estimate for Magistral North, Central-South and Puajanca South, using a 3.0% zinc equivalent cut-off grade, was 6.264-million tons containing 43 g/t silver, 1.30% lead, 3.62% zinc and 0.07% copper.

The total inferred mineral resource estimate, using a 3.0% zinc equivalent cut-off grade, was 13.845-million tons containing 21 g/t silver, 0.40% lead, 4.62% zinc and 0.11% copper.

Prospects: Ongoing development at Santander is in the final phase.

Contact Person: VP investor relations and corporate communications Steve Stakiw.

Contact Details:
Trevali Mining Corporation
tel +1 604 488 1661,
fax +1 604 4087499, email info@trevali.com, and
website http://www.trevali.com.