Altar Project, San Juan Province, Argentina NI 43-101 Technical Report October 4, 2010 Amended March 21, 2011 Prepared by: Nilsson Mine Services Ltd. & Geosim Services Inc. PEREGRINE METALS LTD. TECHNICAL REPORT - ALTAR PROJECT SAN JUAN PROVINCE, ARGENTINA TECHNICAL REPORT ALTAR PROJECT, SAN JUAN PROVINCE, ARGENTINA Prepared for Peregrine Metals Ltd. 201-1250 Homer St. Vancouver, British Columbia, V6B 1C6 Canada Report by Ronald G. Simpson P.Geo. Geosim Services Inc. 1975 Stephens St. Vancouver, British Columbia, V6K 4M7 John Nilsson P.Eng. Nilsson Mine Services Ltd. 20263 Mountain Place Pitt Meadows, British Columbia, V3Y 2T9 Canada W. Joseph Schlitt, P.Eng., Q.P. Hydrometal, Inc. Post Office Box 309 Knightsen, California, 94548 United States OCTOBER 4, 2010 AMENDED MARCH 21, 2011 HYDROMETAL, Inc NMS - Nilsson Mine Services Ltd. GeoSim Services Inc. IMPORTANT NOTICE This report was prepared as a National Instrument 43-101 Technical Report for Peregrine Metals Ltd (Peregrine Metals) by Nilsson Mine Services Ltd. (NMS), Geosim Services Inc. (Geosim) and Hydrometal, Inc. (Hydrometal). The quality of information, conclusions, and estimates contained herein is consistent with the level of effort involved in NMS, Geosim, and Hydrometal’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by Peregrine Metals. Peregrine Metals has permission to file this report as a Technical Report with Canadian Securities Regulatory Authorities pursuant to National Instrument 43-101, Standards of Disclosure for Mineral Projects. Except for the purposes legislated under provincial securities law, any other uses of this report by any third party is at that party’s sole risk. PEREGRINE METALS LTD. TECHNICAL REPORT - ALTAR PROJECT SAN JUAN PROVINCE, ARGENTINA C ONTENTS 1.0 EXECUTIVE SUMMARY .................................................................................................................. 1 1.1 Introduction .......................................................................................................................... 1 1.2 Geology and Mineralization ................................................................................................. 3 1.3 Exploration History .............................................................................................................. 3 1.4 Drill Hole and Assay Database ............................................................................................ 4 1.5 Metallurgical Testing ............................................................................................................ 4 1.6 Resource Estimate .............................................................................................................. 6 1.7 Conclusions & Recommendations ...................................................................................... 7 2.0 INTRODUCTION .............................................................................................................................. 9 2.1 Terms of Reference ............................................................................................................. 9 3.0 RELIANCE ON OTHER EXPERTS ................................................................................................ 11 3.1 Introduction ........................................................................................................................ 11 3.2 Mineral Tenure .................................................................................................................. 11 3.3 Surface Rights, Access and Permitting ............................................................................. 12 3.4 Environmental and Socioeconomics ................................................................................. 12 4.0 PROPERTY DESCRIPTION AND LOCATION .............................................................................. 14 4.1 Location ............................................................................................................................. 14 4.2 Overview of Argentina ....................................................................................................... 14 4.2.1 Metal Mining in Argentina ..................................................................................... 14 4.2.2 Mining Industry and Legislation ............................................................................ 16 4.2.3 Mineral Property Title ........................................................................................... 18 4.2.4 Royalties and Taxes ............................................................................................. 20 4.2.5 Surface and Private Property Rights .................................................................... 21 4.2.6 Environmental Regulations .................................................................................. 22 4.3 Property Description .......................................................................................................... 23 4.3.1 General ................................................................................................................. 23 4.3.2 Tenure History ...................................................................................................... 29 4.3.3 Surface Rights ...................................................................................................... 29 4.4 Environment ...................................................................................................................... 31 4.5 Permits ............................................................................................................................... 32 4.6 Socioeconomics ................................................................................................................ 32 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ........................................................................................................................... 33 5.1 Accessibility ....................................................................................................................... 33 5.2 Climate ............................................................................................................................... 33 5.3 Local Resources ................................................................................................................ 34 5.4 Infrastructure ..................................................................................................................... 35 5.4.1 Regional ............................................................................................................... 35 5.4.2 Local ..................................................................................................................... 35 5.5 Physiography ..................................................................................................................... 36 5.5.1 Relief..................................................................................................................... 36 5.5.2 Water .................................................................................................................... 36 5.5.3 Flora...................................................................................................................... 37 5.5.4 Fauna ................................................................................................................... 37 5.5.5 Seismicity ............................................................................................................. 38 6.0 HISTORY ........................................................................................................................................ 39 7.0 GEOLOGICAL SETTING ............................................................................................................... 40 HYDROMETAL, Inc. NMS - Nilsson Mine Services Ltd. TOC iii GeoSim Services Inc. PEREGRINE METALS LTD. TECHNICAL REPORT - ALTAR PROJECT SAN JUAN PROVINCE, ARGENTINA 7.1 Regional Geology .............................................................................................................. 40 7.1.1 Cordillera Principal ............................................................................................... 40 7.2 Property Geology ............................................................................................................... 41 7.2.1 Permo–Triassic Choiyoi Group Volcanic Rocks ................................................... 41 7.2.2 Miocene Pachon Formation – Andesites and Volcaniclastics .............................. 42 7.2.3 Colluvium and Alluvium ........................................................................................ 44 7.3 Alteration............................................................................................................................ 46 7.4 Structure ............................................................................................................................ 47 7.5 Lithology Codes ................................................................................................................. 48 8.0 DEPOSIT TYPES ........................................................................................................................... 51 8.1 High-Sulphidation Epithermal