Indico Resources Limited

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Maria Reyna

Location & Concessions

The Maria Reyna property is located in the Andahuaylas-Yauri Belt of skarn-porphyry deposits in Cusco Region, Southern Peru, 100km south of Cusco and within 10km of Hudbay's Constancia Cu-Mo-Ag project which is currently under construction. The 3164 hectare concession block covers at least three significant skarn±porphyry systems along 10 kilometres of a northeast-trending structure. Mineralization is related to the regionally significant Andahuaylas batholith and later subvolcanic intrusions, which intrude carbonate rocks of the Yura Group. Skarn Cu-Mo±Au mineralization is common along the contact zones, and porphyry mineralization occurs within and adjacent to some of the subvolcanic dacitic intrusions. The same geology is present at several significant deposits in the Belt, including the Las Bambas skarn-porphyry cluster (1.7 billion tonnes of 0.60% Cu), Haquira (690 million tonnes at 0.59% Cu, Measured & Indicated), and the Constancia porphyry deposit (reserves of 450 million tonnes at 0.36% Cu), located only 10 kilometres southeast of Maria Reyna.

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Access

From the regional capital of Cusco, the property is reached by a 4.5 hour drive on paved and dirt roads. The nearest village for accommodation is Livitaca, which is about 45 minutes north of the south end of the property. Elevations range from 4000 to 4500 metres.

Terms of Agreement

The Parties have agreed to execute at the Closing Date the SPA under the following terms and conditions:

Acquisition	The acquisition by Indico of 51% of the Shares from the Seller.
Acquisition Price	US$ 2,000,000.00 (Two Million Dollars).
Payment of the Acquisition Price	The Acquisition Price shall be paid to the Sellers [within the next 120 days] to the Closing Date.
Option	The Sellers shall grant Indico an option to acquire the remaining 49% of the Shares.
Term of the Option	60 months.
Option Payments	In order to keep the Option in force, Indico shall made the following payments: No. Date Payment 1. On the Drilling Date 1,000,000  Indico Shares 2. 6 months after the Drilling Date 1,000,000  Indico Shares 3. 12 months after the Drilling Date 2,000,000  Indico Shares 4. 18 months after the Drilling Date 2,000,000  Indico Shares 5. 24 months after the Drilling Date 2,000,000  Indico Shares 6. 30 months after the Drilling Date 2,000,000  Indico Shares 7. 36 months after the Drilling Date 5 million Indico Shares 8. 48 months after the Drilling Date 5,000,000  Indico Shares 9. 60 months after the Drilling Date 10,000,000  Indico Shares and US$20,000,000.00
NSR Royalty	Upon exercise the Option, the parties have agreed to establish a 1% NSR Royalty (without cap) in favor of the Seller. The NSR Royalty shall be payable upon commencement of commercial production of any of the Mining Properties.

Surface Exploration

The property has numerous informal mining workings in high-grade skarn deposits, with the most active workings in the southern concessions. In 2010, Vale covered less than a third of the claims with a grid of 433 rock and 165 soil geochemical samples, as well as extensive ground geophysics (magnetics, radiometrics, and IP). The geochemical sampling defined two zones of interest: the SW Zone, with a strong copper and molybdenum anomaly that was subsequently tested with drilling, and the broader NE Zone, which remains to be drill tested. Skarn workings in the north extreme of the property were not covered by Vale.







Historic Drilling

In 2010, Vale completed 11 diamond drill holes (5585 metres) at Maria Reyna, targeting skarn and porphyry mineralization at the Southwest Zone (Figure 1). The drilling intersected both high-grade, shallow Cu-Mo skarn and breccia mineralization, and low-grade disseminated porphyry mineralization beneath. Intercepts greater than 0.2% and 0.3% Cu are summarized below. Highlighted in the tables are intersections of shallow mineralization with grades >0.4% CuEq, which will be targeted by future in-fill drilling to generate a near-surface resource. The Company cautions that it has not had the chance to fully verify the quality and accuracy of the relevant historic sampling and drilling results. The historic figures were generated from sources believed to be reliable, based on limited review of the drill core and outcrops in the field, but they have not been confirmed by a Qualified Person, as defined by NI-43-101.



Intervals were calculated with maximum of 10m of 0.1% CuEq internal dilution, 0.2% CuEq edge grade, minimum length of 15m. For CuEq calculations the following variables were used: $3.00/lb Cu, $15.00/lb Mo, $21.00/oz Ag; no allowances for metallurgical recoveries were made.

Intervals were calculated with maximum of 10m of 0.1% CuEq internal dilution, 0.2% CuEq edge grade, minimum length of 15m. For CuEq calculations the following variables were used: $3.00/lb Cu, $15.00/lb Mo, $21.00/oz Ag; no allowances for metallurgical recoveries were made.



The most significant intercept was in DH-011, which intersected 80m of 1.71% CuEq (0.80% Cu, 1711 ppm Mo) at a 0.3% CuEq cutoff in a hydrothermal breccia with a skarn component. This interval has an upper Cu-rich and a lower Mo-rich segment, in which the matrix of the breccia is filled with semi-massive chalcopyrite and molybdenite, respectively. The mineralization is constrained by adjacent hole DH-001 to dip northeast, and is open along strike to the northwest and southeast.

During a core review, where all significant mineralized intervals were inspected with assays in hand, it was noted that the northeast-directed holes (all but two) were not optimally oriented, and most stockwork veins are nearly parallel with the core. This is in agreement with surface measurement of structures found on Vale geology maps. Consequently, subsequent infill drilling will be directed mainly to the southwest, with an expected improvement in continuity of mineralization.