• Rights to mine in exchange for royalty fee.
• High grade projects progressing to production.

Champinon Iron Ore Project

Tara has the right to mine the 150 hectare Champinon iron ore property located in Mexico. The host structure has been estimated, through surface mapping and sampling, to be at least 40 m wide, 1.5 km in length and open in all directions. Surface grab samples returned assays ranging from 62.0% to 68.9% iron ore. Tara has committed to extract and sell a minimum of 60,000 tons every 6 months.

The property is located 12 km from the Don Roman mill in the Municipality of Choix, State of Sinaloa, Mexico. The agreement gives Tara the right to mine Champinon for a period of 10 years and has an automatic renewal clause upon expiration. Tara will pay the concession holder a royalty of $5, plus any Value Added Tax, for each ton of material sold. The concession holder has been paid $175,000, plus Value Added Taxes, and will be advanced funds, against the minimum royalty, on a monthly basis. Tara anticipates that it can initially reach production rates of a minimum of 30,000 tonnes per month, scaling up to over 50,000. Local concession roads are being upgraded to handle the hauling traffic. Tara is also reviewing contractors to carry out the mining, processing, and hauling work. Discussions with concentrate buyers are confirming a strongly priced market for high-grade iron ore material over 62%.

Tania Iron Ore Project

Tara has the right to mine the 3,233 hectare Tania iron ore property located in Manzanillo, State of Colima, Mexico. Tara has the right to remove 6 million tonnes of salable concentrate from the property, with perpetual renewal rights, extending through the life of the property. Tara will pay the vendor $6 per salable tonne for the first 500,000 tonnes removed from the property and $7 per tonne thereafter. A total of $100,000 will be advanced to the vendor against future royalty payments.

The Tania property is located 33 km from the port of Manzanillo. The Iron is contained within decomposed granite with little overburden. On the surface, the mineralized zone is estimated to be 2 km wide and approximately 1 km in length. The zone is continuous and sampled 30-40% Iron. The property has not been subjected to modern exploration methods or concentrating processes.