Itogon

The Itogon Project is located in the Central Cordillera of Luzon, approximately 8km SE of Baguio City, Benguet Province in the Philippines. The Project area totals approximately 29 km2 and comprises a contiguous group of tenements including patented claims, an approved mineral lease contract and applications for an EP and MPSA (Figure 1 & Table 1 below) held by Itogon Suyoc Resources Inc. (ISRI).

Table 1: Itogon Project Tenements

The Project covers the historic Itogon Gold Mine that is based on a composite array of epithermal quartz veins and lodes (Itogon Vein System) that trend NE-SW and with linking E-W structures. In essence, the Itogon Vein System represents the eastern extension of Benguet Corporation's Acupan Gold Mine, the Philippines second largest gold mine after Antamok (Figure 2). Historically, the Itogon Gold Mine produced 1.22Moz of gold in two mining phases: pre-war 1926-1941 (0.35Moz) and post-war 1951-1996 (0.87Moz) from underground workings and is currently on care and maintenance. The production and recovered grades for the post-war phase was 6.29Mt @ 5.0g/t gold and 2.1g/t silver. The majority of this production was sourced from five major vein structures - Frog, Taka Barr, Gilkison, Sesame and Idol. Benguet's adjacent Acupan Mine has produced approximately 5.80Moz of gold to date, thus collectively the Acupan-Itogon mineralised system has produced 7.02Moz of gold to date.

In July 2009, Indophil acquired Anvil Philippines Mining Ventures Inc. (APMVI) which held conditional rights to the Itogon Project under an Exploration and Development Agreement (EDA). AMPVI was subsequently renamed Indophil Itogon Mineral resources Inc. (IIMRI), a wholly-owned subsidiary of Indophil. IIMRI is currently in the 'detailed evaluation' phase of the EDA, requiring a minimum expenditure of US$2 million. Assuming significant results from this evaluation (ie. the definition of a JORC compliant resource), the Company is then required to complete a Feasibility Study into the potential recommencement of gold mining operations within a further period of two years. IIMRI can acquire 100% ownership rights through a payment of US$0.5 million and the payment of an NSR royalty for any gold, silver or copper produced from the Project area. The rate of the NSR royalty for gold varies from 1.5% to 4.5% depending on the gold price.

Since 1994, various parties have calculated residual resource estimates for the Itogon Vein System, most being somewhat optimistic and none in compliance with JORC guidelines. However, the Company believes that there is significant scope to establish a potential cumulative 1Moz resource estimate with ongoing exploration and evaluation (the current exploration target), especially given that many of the producing vein structures were actively mined to and extend beyond L1300. Of special note is that underground workings on some of the significant vein structures in the adjacent Acupan Mine extend approximately 400m deeper than Itogon. Much of the historical mining at Itogon was selective non-mechanised underground mining with cut-off grades somewhat higher than would be applied at current gold prices. There appears to be significant scope for mechanised bulk-tonnage underground mining of either thicker vein sections or closely-spaced multiple vein zones or intersections. One obvious target is the potential 600m strike length of the Frog Central Vein section below L1300 where irregular cross-cut sampling over a 200m section of Frog Central at this level recorded the following gold assay runs (not true width): 16.38m @ 3.06g/t, 7.58m@ 3.63g/t, 14.01m @ 3.28g/t, 31.38m @ 4.42g/t and 21.34m @ 4.29g/t. The re-plotting of historical mine data is well advanced and will be used to create wire-framed structural models to assist in the definition and prioritisation of exploration and evaluation drill targets.

An approximate 3,300m program of exploration diamond drill is currently underway on selected targets. The original objectives of the program were to focus on drilling targets in shallow and potentially open pittable portions of the Frog, Taka Barr, Sesame and 23-32 Vein systems. This program has recently been modified to include an approximate 100 x 50m drill-out of a shallow section of the Frog and Frog Footwall vein systems over an approximate 350m strike length at RL's extending from L875 to the surface. If successful, this should lead to a feasibility study into a possible stand-alone underground mining operation of modest scale to be undertaken concurrently with ongoing exploration of other targets. Drilling results to date are shown in Table 2 (below), a location diagram in Figure 3 and a longitudinal section of the Frog Vein as Figure 4.

Table 2: Significant Assays - Itogon project - Current Drilling program

Note: Cut-off grade for intersection selection 0.5g/t Au, internal search distance 2.0m

In addition to gold potential associated with narrow vein systems, the Itogon Project holds significant potential for the discovery of porphyry copper-gold mineralisation. Strong analogies, especially in terms of regional structural setting, can be drawn between the Itogon Project area and the Santo Tomas porphyry copper-gold deposit located 9 km to the SSW. With a pre-mined resource of 370Mt @ 0.31% copper and 0.63g/t gold, Santo Tomas (Padcal) is the largest porphyry-copper deposit in the Baguio district. Exploration to date at the Itogon South prospect has located two coherent soil geochemical anomalies within which are encouraging rock chip assays from mineralised structures. Both of these anomalies (targets) could represent the surface expression of porphyry copper style mineralisation at depth.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Chris Middleton. Mr Middleton is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration for the reporting of Exploration Results to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Middleton consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.