Oroco holds a 100% interest in two contiguous mineral concessions in Guerrero, Mexico; Celia Generosa and Celia Gene, totaling 193 hectares and together called the Xochipala Project. This interest acquired in 2007 and was registered with the Mexican Public Registry of Mining (the “PRM”) in August of 2012.

“The Xochipala claims cover ground in the Guerrero Gold Belt sufficient to potentially generate reserves greater than 1 million ounces gold in ore bodies similar to the productive high-grade ore bodies that have been discovered in the past within the region.” (Report on the Xochipala Property “Morelos” National Reserve District, Guerrero, Mexico, Prepared by Tawn Albinson F., M.Sc., for Britannia Gold Corporation, 1997, the “Albinson Report.” The Albinson Report is based on historic exploration data, and is not to be understood as NI 43-101 compliant in any way. )

Oroco’s Xochipala Project is located in the southeast extreme of the original Morelos National Mining Reserve, a 47,600 ha federal mineral reserve which includes the most promising and expanding gold reserves in Mexico. This region encompasses a northwest trend of intrusions with associated gold bearing iron skarn deposits and is part of a wider area which has come to be known as the Guerrero Gold Belt (the “GGB”). The GGB is currently the focus of aggressive exploration, delineation, development, and mining by a number of mining companies. Leagold, Torex Gold Resources, Agnico Eagle Mines, and Alio Gold are exploring and delineating gold reserves in the GGB and to date have discovered in excess of 16 million ounces of gold with significant recent discoveries likely to increase the defined gold resource in the region.

The modern history of the GGB reportedly commenced in 1924 with the discovered of gold at Xochipala by the Franco Urias Family, who operated a small family owned mine and mill on the property.

Regionally, several multi million ounce gold deposits related to skarns along the peripheries of felsic to intermediate intrusions have recently been identified. These include the Ana Paula deposit, the El Limon and Los Guajes deposits, as well as the Nukay (historical) deposit, and approximately two kilometres from the Xochipala Project boundary, Leagold’s Los Filos-El Bermejal mine, produced 231,000 ounces of gold in 2016 and 89,983 oz of gold during the six-months ended June 30, 2017.

Oroco’s Celia Generosa and Celia Gene concessions contain mineralization in very well defined structures that outcrop for over one kilometre and were the site of some of the earliest gold mining in the region from a number of small underground workings. These concessions host intrusives of similar age and composition and several areas of skarn mineralization with significant associated gold assays.

The intrusion contained within the boundaries of Oroco’s Xochipala is the last in the region as yet untested during the modern era.

Past work, including exploration and artisanal mining, has focused on the high grade showings on the properties. Future exploration at Xochipala will focus on the high grade showings on the properties and potential for medium to lower grade deposits amenable to open pit mining. The project area is well served by a network of local roads and the principal centers of population are Xochipala just one kilometre from the property boundary, and the State capital of Chilpancingo approximately 30 kilometres away by good paved road.

The district is served by hydroelectric power from the Caracol dam and water is locally available. A large trained labour pool is locally available.

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These historical resource estimate models are based upon historical resource estimates prepared by John Thornton in 2011. While, in the opinion of Dane A. Bridge, author of the revised NI 43-101 standard technical report, Geology, Mineralization and Exploration of the Santo Tomas Cu-(Mo-Au-Ag) Porphyry Deposit, Sinaloa, Mexico dated April 21, 2020 (the “Report”), reliable estimation practices were used, in order to upgrade or verify the historical estimations, resampling and assay of historical drill samples, twinning of historical drill holes, and a new program of regularly spaced drilling is required. No qualified person has undertaken sufficient work to classify the current mineral resources or mineral reserves upon which these models are based and the Company is not treating the estimates as current estimates of the mineral resources. The Company gives no assurance that either these models or the historical resource estimates upon which they are based are accurate, and does not undertake any obligation to update the models or to release publicly any update or revisions of the resource estimates except as required by applicable securities law. The reader is cautioned not to rely upon these models or the historical resource estimates upon which they are based.

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