Aurogin Resources Ltd.

Incorporated in 1986, Aurogin Resources Ltd. is a junior mineral exploration company engaged in the acquisition, exploration and development of properties in Guatemala, the United States and Canada. The company presently has two core projects, namely, the El Sastre gold project in Guatemala and the Lone Mountain gold project in Nevada.

El Sastre Gold Project

On August 4, 2004, Aurogin entered into an agreement with a private Guatemalan company to earn a 50% interest in the El Sastre property, located 30 km northeast of Guatemala City. El Sastre hosts four mineralized gold zones in central Guatemala that lie close to a major highway on scrub-covered, marginal grazing land. Drilling, trenching and other technical examinations by the company and previous owners defined several mineral-rich zones, as well as evidence suggesting the possible association of these properties. The four zones are known as the El Sastre Main zone, the Lupita zone, the Bridge zone and the El Arenal zone.

During 2005, sufficient infill drilling and test pitting were carried out to complete an NI 43-101 compliant resource estimate. A bulk sampling and metallurgical testing program showed the material was amenable to heap leaching and an Environmental Impact Assessment was prepared and approved by the Guatemala Ministry of the Environment.

Gold resources at the El Sastre Main zone currently stand at 49,251 ounces of indicated resource with 370,000 tonnes grading 4.14 grams per tonne (gpt) gold and 117,265 ounces of inferred resource based on 1,165,000 tonnes grading 3.13 gpt gold. In addition, Aurogin has defined 518,000 ounces of inferred resource with 13 million tonnes grading 1.25 gpt gold at its Lupita zone, located 600 metres west of the El Sastre Main zone.

During 2006, Aurogin completed detailed engineering on the El Sastre project and commenced the construction of a heap-leach pad and metallurgical plant in April 2006. These facilities were designed to bring the high-grade, near-surface oxide Main zone gold deposit into commercial production by the end of 2006. In July 2006, the company’s Guatemalan subsidiary received the final operating permit on the project.

Mine construction was completed in October 2006. Approximately 20,000 tonnes of ore were loaded onto the leach pad area and leaching commenced on October 17, 2006. Management stated that the El Sastre mine is on target to have its first gold poured during the quarter ending December 31, 2006.

A diamond drilling program is currently underway at the El Sastre Main zone in order to upgrade the existing inferred resource to indicated status and facilitate the completion of detailed mine production plans. The company also intends to conduct further exploration drilling elsewhere on the property in order to further expand its overall gold resource.

In September 2006, strong gold grades were reported near surface from the most recent four holed drilled in a program at the Bridge zone, located 4 km west of the El Sastre Main zone. Also, an initial phase of a drill program at El Arenal, located 2 km southeast of the El Sastre Main zone, was completed in early October 2006 and results are expected to be available in the near future.

Lone Mountain Gold Project

In April 2005, Aurogin entered into an agreement whereby the company can earn a 100% interest in the Lone Mountain gold property in Eureka County, Nevada. The Lone Mountain property is located 25 km northwest of Eureka, Nevada on the southern part of the Northern Nevada Rift Zone. The 59 original claims cover a mineralized fault zone that truncates Lone Mountain and is now largely buried by the alluvial plain. To date, Aurogin has completed surveying, mapping and surface geochemical sampling on the property. In addition, gravity and airborne magnetic data covering the property have been acquired.

On July 21, 2006, the company signed a letter of intent to acquire 29 additional claims adjacent to the Lone Mountain property. To earn a 100% interest, the company must issue the vendor 200,000 common share purchase warrants exercisable at $0.30 for two years, spend US$175,000 over 4 years and make advance royalty payments of US$50,000 per year for 5 years thereafter and US$100,000 per year after that. In the event of production, certain royalties become applicable.

Several potential drill targets have been identified on both the original and newly acquired claims. Permitting and environmental bonding for 12 exploration drill holes ranging from 150 to 200 meters in depth is nearing completion after which drilling will commence. The initial drill program is expected to cost approximately US$100,000.

Financing

In April 2006, Aurogin completed a $1.1 million private placement through the issuance of 5.0 million units at a price of $0.22 per unit. Each unit consisted of one common share and one common share purchase warrant, with each warrant entitling the holder to purchase one additional common share at a price of $0.36 per share until April 20, 2008.