La Montanita Gold Project, Colombia

Alder Resources Ltd has entered into a Letter of Intent to acquire an 80% interest in the La Montañita Gold Project (the “Project”) in Colombia. Pursuant to the letter of intent, the Company will acquire an 80% interest in the properties that comprise the Project in consideration for the issuance to the vendors of 5,000,000 common shares of the Company and expending a minimum of $1,000,000 in respect of the exploration and further development of the Project within two years following the date of the definitive agreement. 

The Project is situated in an area with a reported 100 year history of gold mining.  It is located in western Colombia approximately 220 kilometers from the Pacific Coast and 40 km from the city of Medellin. 

The Project encompasses approximately 1,000 hectares, including a 30 hectare mineralized mountain that the Company understands has been the subject of artisanal gold mining for over 80 years.  Historic mining consisted primarily of underground tunneling that followed reportedly high grade sub-vertical structures varying in width from 20 to 60 centimetres .  Current production at the Project continues on an artisanal basis targeting a high grade NE trending vein.

The Company intends to analyze the potential for a bulk tonnage open pit mine at the Project based on an understanding that the high grade veins at the Project appear to be part of a larger stock work, with four prominent fracture orientations within a granodiorite host rock. The Project does not currently host estimated mineral resources that are compliant with National Instrument 43-101 (“NI 43-101”) and it is uncertain if exploration activities will result in the delineation of a mineral resource.  Management believes the host rock, scope and mineralization style are comparable to the nearby Gramalote deposit, also located within the same batholith.  The Gramalote deposit is held by a joint venture between Anglogold-Ashanti and B2Gold Inc. and hosts a NI 43-101 compliant estimated inferred mineral resource of 74.4 million tonnes at an average grade of 1.00 g/t gold for a total of approximately 2.4 million ounces of gold.  The Gramalote property is less than 40 km from the La Montañita Project.