Pecoy Project

Pre-Pecoy Exploration

Prior to the Pecoy Copper consolidation, the project was independently explored as two adjoining properties with different owners and project names as follows:

• The northern sector was called the Pecoy Project (Old Pecoy Project) and was explored by the Trafigura Group (Cormin) and Pembrook Copper Corp (Pembrook).
• The southern sector was called the Arirahua Project, a name originally assigned by Minera Andina de Exploraciones S.A.A. (Minandex). Subsequently, it was referred to as the Ocaña Project by Indico Resources Ltd. (Indico) under a purchase option agreement signed with Minandex in 2010 and later renamed the Irmin Project in June 2015; however, the agreement was not finalized, and the property reverted to Minandex.

The historical exploration works carried out by Indico, Pembrook and Cormin are described below. The two show a summary of the results obtained from the historical surface sampling and the historical drill holes.

*Cormin includes superficial sampling of other companies (Angloamerican, Teck, Minarsa, Orion) carried out at Pecoy Project during his administration or prior to Cormin (370 samples).

History to the north sector of the Pecoy Project (Old Pecoy Project)

The Barreno 1 and Barreno 2 concessions were obtained in the early 1980’s by the Carlessi Family, who own the Arirahua Mine (MINARSA), located 6.5 km east of Cerro Pecoy.

The Carlessi Family only carried out a minimal amount of prospecting on the property, including the collection of 178 rock samples in the mid 90’s. Subsequently, companies such as Teck Comico Ltd., Anglo and Noranda carried out surveys and sampling. In the database, Pembrook has identified 97 rock samples collected by the first 2 companies. Additionally, magnetometer and induced polarization (IP) geophysical surveys were conducted by Teck.

In 2008, the Trafigura Group (Urion México Holdings) optioned the Pecoy property, and together with the Carlessi Family, formed Pecoy Sociedad Minera (51% and 49%, respectively). Trafigura became the operator of the Project and analyzed the existing geochemical and geophysical data, conducted further mapping and sampling and undertook a drilling program in 2009.

Trafigura’s diamond drilling campaign consisted of 11 drill holes totaling 3,454.80m. The results of the program were encouraging with porphyry-type mineralization defined, but only one drill hole intersected significant mineralization. The exploration group from Trafigura (Cormin) proposed another exploration phase, but it was never completed.

In 2012, Trafigura organized a site visit for various companies with the aim of optioning the property.

Pembrook showed interest in the Project and after some coordination with Trafigura conducted a regional geological mapping exercise at a scale of 1:2000, in November 2012. Pembrook eventually signed the Subscription, Option and Shareholders’ Agreement and mining assignment agreement with the concession holder, Pecoy Sociedad Minera on August 28, 2013.

History to the south sector of the Pecoy Project (Ocaña Project)

Minera Andina de Exploraciones S.A.A. (Minandex) the initial owner of the south Sector of Pecoy Project, signed in 2010 a contract with a purchase option with Inversiones Minerales S.A.C. (Inversiones Minerales), who renamed the project the Ocaña Project. Subsequently, this company was associated with the company Indico Resources Ltd. (Indico) and in May of 2015, Indico in turn associated with the Company Aruntani S.A.C.(Aruntani), to continue developing the Project, establishing the company called Irmin S.A.C., in which Aruntani has the 70% participation and Indico the remaining 30%.

Indico developed exploration works as part of the contract with a purchase option; however, in 2015, the full right of the contract between Minandex with Inversiones Minerales was terminated, so the Ocaña Project returned to Minandex administration.

There is no recorded history of work on the Ocaña concessions prior to Indico acquiring them. There is artisanal mining throughout Peru and, based on the existing activity on the edges of the concessions, there would likely have been some activity historically. However, no records are available, and there is little surface evidence, other than a couple shallow excavations on the slope south of camp.

Initial exploration has been performed on the adjoining, non-Indico Resources, Barreno-1 and Barreno-2 concessions, administered by Pembrook Copper Corp. (Pembrook).