Andean American Mining Corp.

Sinchao Metals Corp., of which Andean American Mining Corp. owns 58%, was formed by Andean American in April 2006, in order to provide shareholders with the opportunity to participate in a true polymetallic project. Andean American acquired the Sinchao property in Cajamarca province, northern Peru, in 1996. Initial geological mapping, surface sampling, Induced Polarization and magnetometer surveys were completed in 1996, followed by over 8000 metres of drilling during 1997 and 1998. Results were very encouraging, however, metal prices were at all time lows and exploration was halted. Since 1998, Andean American consolidated the land position and in 2005 acquired 21 hectares contiguous with the existing Sinchao property to complete its land acquisitions.

Sinchao Metals now owns 100% of the Sinchao Property. Four mineralized systems have been identified on the Sinchao Property: the Skarn Zone, the Breccia Zone, the High Sulphidation Epithermal Zone and the Massive Sulphide Lenses. In 2006, the geophysical surveys were completed and integrated into the ongoing geological mapping. The 2007 exploration program involved an initial 5,000-metre diamond drill program to further test the continuity and limits of the Breccia Zone, and to test the High Grade Zinc in the Skarn Zone. The 2008 drill program concentrated on the Breccia zone as part of a 9,250 metre program leading to an estimation of Inferred Resources. Mineralization has been identified over an area of approximately 700 metres by 600 metres and to depths of up to 450 metres, with the mineralization remaining open in all directions.