Large scale 40,000 tpd project

• 10.7 MM oz Au Eq* total resource

Attractive project economics

• ~200,000 oz Au & ~50 MM lb Cu average annual production over 19 yr mine life
• US$81/oz Au cash cost (net of Cu credits)
• Standard flotation process producing a saleable Cu concentrate

Good location in a mining jurisdiction

• Emerging modern mining district
  • 55 MM oz Au of historic production
• Substantial infrastructure (roads, water and power)
• Gov. encouraging investment and sustainable growth
• 16% corporate tax rate
• Streamlined permitting process

Excellent Value Proposition vs in-country peers

• Gabriel Resources – $2.4 billion market cap
• European Goldfields – $2.7 billion market cap
• Carpathian Gold – $238 million market cap

The Rovina License lies within the Metalliferi Mountains, in the southern part of the Apuseni Mountains, in the area known as the Golden Quadrilateral. The License is strategically located approximately 20 km outhwest of Rosia Montana and adjacent to the western border of the Apuseni 1 license. This license hosts porphyry copper-gold targets and Rosia Montana deposit style (+15,000,000 million ounces).

Initial reconnaissance mapping and sampling was completed in late 2005. This license includes 5 known mineralized prospects. Mapping and sampling by Carpathian identified copper-gold mineralized potassic-porphyry style alteration outcropping at two of these prospects, Rovina and Colnic, which lie 2.5 km apart.

The copper-gold mineralization at the Rovina and Colnic prospects is hosted in altered porphyritic microdiorite containing magnetite in thin veinlets and as disseminated granular agglomerates and secondary biotite consistent with potassic alteration at the core of gold-rich porphyry hydrothermal systems. This alteration is cut by quartz-chalcopyrite-pyrite stock work veinlets. Geologic mapping has identified large halos of pyrite-sericite alteration (phyllic alteration) typically associated with porphyry systems.

In 2006, a total of 66 drill holes were completed for 24,140 metres between the Colnic and Rovina Porphyry systems, along with metallurgical testwork, and a detailed QA/QC program. In addition, in 2006 a generative exploration program was completed, comprised 24 square km of ground magnetic survey in the northern part of the Rovina License including the Rovina and Colnic Porphyry systems, 15 line kilometres of Induced Polarization Surveys, 12.7 line km of soil geochemistry surveys, and reconnaissance mapping and outcrop sampling covering an area of 5 square kilometers. This program identified a minimum of three new porphyry targets (coincidental geophysical, geological, porphyry style alteration and stock work systems with Au & Cu mineralization), within a prospective 6.5 km long volcanic belt inclusive of the Colnic and Rovina porphyry systems. These are the Galaxy target (2.2 km west of the Rovina porphyry); the Ciresata target (4.5 km south-southwest of the Colnic porphyry); and the Baroc target (200 m to the west of the Rovina porphyry).

From the 2006 drilling program an initial National Instrument 43-101 compliant Resource Estimate, has been provided to Carpathian by independent consultants AMEC Americas Limited’s (“AMEC”) for both the Colnic and Rovina porphyries. For both porphyries the Mineral Resources reported are confined to a Whittle 4x-generated conceptual pit shell to determine the amount of potentially mineable open pit mineralization using various economic assumptions. The Colnic resource estimate is divided into gold-copper (“Au-Cu”) mineralization (with block model of Cu grades greater than 500 ppm) and gold (“Au”) only mineralization (with block model Cu grades less than 500 ppm). The Rovina resource estimate is entirely comprised of Au-Cu mineralization.

During 2007, 86 diamond drill holes were completed for a total of 32,500 metres on the Rovina Exploration License. This drilling program included definition drilling on both the Rovina and Colnic porphyries, as well as drilling on the Galaxy and Ciresata porphyry targets that were discovered during the previous generative exploration program and generative exploration drilling on additional targets. 

During Q3 2008, field work on the Rovina Exploration License was comprised predominantly of diamond drilling. This drilling program consisted of 4 diamond drill holes (2,511 m) on the Ciresata Porphyry and 3 diamond drill holes (1,114 m: one drill hole on each porphyry) for the collection of core samples to be submitted at a later date for further metallurgical test work studies. During the quarter, approximately 4,111 core samples were collected and submitted for assay analysis, QA/QC analysis, check sample analysis, metallurgical test work and rock density analysis. Additionally geological modelling and preparation work for the updated Mineral Resource Estimate was completed.

On a year to date basis in 2008, drilling has been primarily concentrated on the Rovina Porphyry and the newly discovered Ciresata Porphyry located approximately 4 km south of the Colnic Porphyry. To date in 2008, the Corporation has completed 31 diamond drill holes on the Rovina License for a total of approximately 14,720 metres of which 16 diamond drill holes (7,625 m) were completed on the Rovina Porphyry and 14 drill holes (6,830 m) on the Ciresata Porphyry and 1 hole (270 m) on the Colnic Porphyry. All three deposits are in close proximity to one another and could be processed from one central facility. PEG has estimated the Mineral Resource for each of the Colnic, Rovina and Ciresata porphyry deposits, utilizing approximately 62,700 m of diamond drill hole data from the 2006, 2007 and 2008 drilling campaigns. The resource estimate takes into account all drilling information for the Rovina and Colnic deposits up to the end of April 2008 and on the Ciresata deposit up to the middle of September 2008.

The following table summarizes the weighted average result of the resource estimates for all three porphyry deposits reported at a base case cut-off grade of 0.30% copper equivalent (“Cu eq”) for the Rovina deposit, 0.45 g/t gold equivalent (“Au eq”) for the Colnic deposit and 0.70 g/t Au eq for the Ciresata deposit, as of September 30, 2008. The base case cut-off grades chosen for each respective deposit were determined by giving consideration to the characteristics of each deposit, envisioned mining methods, approximate mining and milling costs derived from internal studies as well as comparable porphyry-type deposits, results from early metallurgical test work and the reasonable potential for them to be economic.

Rovina Valley Project Mineral Resource Estimate (as of September 30, 2008)

Resource	Tonnage	Au	Cu	Au eq*	Gold	Copper	Au eq*
Category	(Mt)	(g/t)	(%)	(g/t)	(Moz)	(Mlbs)	(Moz)
Measured	22.0	0.55	0.24	1.00	0.39	117.0	0.70
Indicated	171.1	0.49	0.17	0.80	2.68	642.0	4.39
Total Measured + Indicated	193.1	0.49	0.18	0.82	3.07	759.1	5.09
Total Inferred	177.7	0.68	0.17	0.99	3.89	663.1	5.66

* To estimate Au-eq (Gold Equivalent) a gold price of US $1,000 and a copper price of US $3.00/lb is used. The Au-eq at these commodity prices is similar to previous Au-eq. calculations used by the Corporation at a gold price of US $675 and a copper price of US $1.80.

Rovina Porphyry Mineral Resource Estimate (as of September 30, 2008)

Colnic Porphyry Mineral Resource Estimate (as of September 30, 2008)

Ciresata Porphyry Mineral Resource Estimate (as of September 8, 2010)