Fredonia Project Summary

On December 6, 2009, Eaglecrest executed a Letter of Intent to purchase up to a 75% interest in the mineral title of the Fredonia Area, located in Antioquia, Colombia. Fredonia is a property package owned by Grupo de Bullet, S.A., which consists of approximately 18,000 hectares (180 square kilometres) of mineral title. This is the first of several projects the Company is evaluating for acquisition in a 300-kilometre long gold belt that extends from the La Colosa gold resource owned by AngloGold-Ashanti through Medellín.

The Fredonia Project Area is located in the Cauca River Valley, between the Eastern and Western Cordillera of the Andes Mountains, northwestern Colombia. Situated approximately 40 km south of the city of Medellín, in Antioquia, the property is positioned within one of the most prospective and productive gold belts of Colombia, one that has more than 500 years of gold mining history combined with a number of significant modern day discoveries.

Fredonia is a large area of principally unexplored ground in close proximity to several significant proven gold resources, which along with Management’s preliminary geologic work, indicates a high-probability for the discovery of one or more large porphyry-style gold deposits.

Surrounding the Fredonia property to the north and south are a number of projects currently being advanced by multi-national exploration and mining companies such as the Anglogold Ashanti /B2Gold’s Quebradona project, which is located to the south of the Fredonia Project. Located within the northern portion of Fredonia are the multi-million ounce districts with producing mines of Titiribi, Cerro Vetas and El Zancudo. Farther south of Quebradona and in the same geologic belt lies the famous 500-year-old, 10+ million ounce Marmato mining district.

Eaglecrest plans to begin geophysics work on Fredonia by Q2 2010, followed by on-ground exploration work on key areas of the asset and then drilling select targets by Q3 2010. A one million dollar exploration budget, which includes drilling, is planned for Fredonia in 2010.