RIO CRISTAL RESOURCES CORP. Bongará Zinc Project NI 43-101 Technical Report i: COVER PAGE Prepared for: Rio Cristal Resources Corp. Prepared by: John Adrien Brophy, PGeo Effective Date: January 31, 2012 TABLE OF CONTENTS Page i: COVER PAGE .................................................................................................................................. 1 ii: SIGNATURE PAGE ....................................................................................................................... 2 iii: CERTIFICATE OF QUALIFIED PERSON ........................................................................................... 3 TABLE OF CONTENTS ........................................................................................................................ 4 SECTION 1: SUMMARY ..................................................................................................................... 8 1.1 Introduction............................................................................................................................ 8 1.2 RCR’s 2011 Exploration Program at Bongará ......................................................................... 8 1.3 Mineral Resource Calculation ................................................................................................ 8 1.4 Conclusions........................................................................................................................... 10 1.5 Recommendations ............................................................................................................... 11 1.5.1 Rio Cristal Estimated Exploration Budget ‐ 24 Months: ............................................... 13 SECTION 2: INTRODUCTION ........................................................................................................... 14 SECTION 3: RELIANCE ON OTHER EXPERTS .................................................................................... 17 SECTION 4: PROPERTY DESCRIPTION AND LOCATION ................................................................... 18 4‐1: LOCATION ............................................................................................................................ 18 4‐2: PROPERTY AND TITLE IN PERU ............................................................................................ 18 4‐3: ENVIRONMENTAL REGULATIONS ....................................................................................... 19 4‐4: TENURE ............................................................................................................................... 20 4‐4‐1: MINERAL CLAIMS ......................................................................................................... 20 4‐4‐2:AGREEMENTS .................................................................................................................... 22 4‐4‐3: ROYALTIES AND OTHER TAXES .................................................................................... 22 4‐4‐4: HOLDING COSTS ........................................................................................................... 23 4‐4‐5: SURVEY ......................................................................................................................... 23 4‐4‐6: SURFACE RIGHTS .......................................................................................................... 23 4‐5: ENVIRONMENTAL ............................................................................................................... 23 4‐6: SOCIOECONOMICS .............................................................................................................. 24 SECTION 5: ACCESSIBILITY, CLIMATE, LOCAL INFRASTUCTURE AND PHYSIOGRAPHY .................. 25 5‐1: ACCESSIBILITY ...................................................................................................................... 25 5‐2: CLIMATE .............................................................................................................................. 25 5‐3: LOCAL RESOURCES AND INFRASTRUCTURE ........................................................................ 25 5‐4: PHYSIOGRAPHY, FAUNA AND FLORA .................................................................................. 26 4 SECTION 6: HISTORY ....................................................................................................................... 27 SECTION 7: GEOLOGICAL SETTING AND MINERALIZATION............................................................ 29 7‐1: REGIONAL GEOLOGY ........................................................................................................... 29 7‐2: PROPERTY GEOLOGY ........................................................................................................... 30 7‐2‐1: LITHOLOGIES ................................................................................................................ 30 7‐2‐2: STRUCTURE .................................................................................................................. 32 7‐2‐3 ALTERATION .................................................................................................................. 37 7‐3: PROSPECTS AND OCCURRENCES ......................................................................................... 39 7‐4: MINERALIZATION ................................................................................................................ 52 7‐4‐1: PARAGENESIS AND ZONING ........................................................................................ 52 SECTION 8: DEPOSIT TYPES ............................................................................................................ 54 SECTION 9: EXPLORATION .............................................................................................................. 56 9‐1: SOIL SAMPLING ................................................................................................................... 57 9‐2: ROCK SAMPLING ................................................................................................................. 60 9‐3: STREAM SEDIMENT SAMPLING ........................................................................................... 64 SECTION 10: DRILLING .................................................................................................................... 67 10‐1: DRILLING, CRISTAL AND CHARLITA PROJECTS .................................................................. 67 10‐2: DRILLING, SAN JOSE PROJECT ........................................................................................... 71 SECTION 11: SAMPLE PREPARATION, ANALYSES AND SECURITY .................................................. 73 SECTION 12: DATA VERIFICATION .................................................................................................. 74 SECTION 13: MINERAL PROCESSING AND METALLURGICAL TESTING ........................................... 75 SECTION 14: MINERAL RESOURCE ESTIMATES .............................................................................. 76 SECTION 15: MINERAL RESERVE ESTIMATES ................................................................................. 78 SECTION 16: MINING METHODS .................................................................................................... 79 SECTION 17: RECOVERY METHODS ................................................................................................ 80 SECTION 18: PROJECT INFRASTRUCTURE ....................................................................................... 81 SECTION 19: MARKET STUDIES AND CONTRACTS .......................................................................... 82 SECTION 20: ENVIROMENTAL STUDIES, PERMITTING, SOCIAL IMPACT ....................................... 83 SECTION 21: CAPITAL AND OPERATING COSTS .............................................................................. 84 SECTION 22: ECONOMIC ANALYSIS ................................................................................................ 85 SECTION 23: ADJACENT PROPERTIES ............................................................................................. 86 SECTION 24: OTHER RELEVANT DATA AND INFORMATION ........................................................... 90 SECTION 25: INTERPRETATION AND CONCLUSIONS ...................................................................... 91 SECTION 26: RECOMMENDATIONS: ............................................................................................... 93 5 SECTION 27: REFERENCES .............................................................................................................. 95 APPENDICES ................................................................................................................................... 98 APPENDIX 1: DRILL DETAILS, 2008 DRILLING CAMPAIGN .......................................................... 98 APPENDIX 2 ‐ DRILL DETAILS, 2011 DRILLING CAMPAIGN ......................................................... 99 APPENDIX 3: QUALITY ASSURANCE, QUALITY CONTROL, ROCK SAMPLES .............................. 101 APPENDIX 4: QUALITY ASSURANCE, QUALITY CONTROL, SOIL SAMPLES ................................ 102 APPENDIX 5: QUALITY ASSURANCE, QUALITY CONTROL, DRILL CORE .................................... 104 TABLES Table 1‐1: Mineral Resource, Cristal Project 8 Table 4‐1: Land Tenure Details and Payments for Mining Concessions 19 Table 4‐3: Payment Schedule (Based on Third Amendment) 21 Table 9‐3: Rock Sampling