Location:

The Guadalupe Project is located in Zacatecas State, four kilometres north of the city of Fresnillo and approximately 8 kilometres north of the Fresnillo (Proaño) Mine, the world's richest underground silver mine, operated by Fresnillo plc. within the Fresnillo Silver Trend. The Project is entirely surrounded by mining claims controlled by Peñoles (either through Fresnillo or other subsidiaries and partners). The Project is also approximately 11 kilometres northeast of the Juanicipio Joint Venture between MAG Silver Corp. and Fresnillo plc.

Deposit Model:

The deposit style at the Guadalupe Project is low sulphidation epithermal silver-lead-zinc mineralization within structurally controlled quartz-carbonate veins and breccias.

Ownership:

100% Yale Resources Ltd.

Size:

The Guadalupe Project consist of two mineral claims totaling 282.84 hectares (2.83 km² or 699 acres)

Status:

Currently under option to Silver America (OTCBB: SILA).

Summary:

The Guadalupe Project represents a mid-stage exploration project on a well defined mineralized target. Compilation work and underground mapping will define drill targets. To date no exploration drilling has been completed on the Guadalupe Project.

Historic records on the area reference the Santa Rita and San Antonio mines suggesting that both mines were important and reached their height of production between 1910 and 1920 to depths of over 200m. Most recent production was in the 1980's and continued to depths of 270 metres.

The exploration strategy at the Guadalupe Project is to outline remaining resources within the Santa Rita and San Antonio veins and model potential higher grade ore shoots to depth below the workings. There are several examples of this exploration strategy such as the recent drilling at the Valdecaña Vein on the Juanicipio joint venture that has identified significant mineralization to depths of 800 metres.

The first step is to acquire any historic records of the mines and re-construct underground grade model to determine where good grades remain and if any high grade ore shoots project below the existing workings. Additionally, a geophysical survey over the trend of the known veins will also help define lateral and depth extension of the host structure.

Geology:

Mineralized veins at Guadalupe Project are hosted in Cretaceous sedimentary rocks consisting mainly of carbonates and sandstones. The sedimentary sequence is intruded by Tertiary igneous rocks.

The vein system at Guadalupe trends northwest and is sub-parallel to the vein systems at the Fresnillo Mine and Juanicipio Project.

Results:

Highlight results are:

• 1.00 g/t Au and 946.9 g/t Ag over 1.1m
  • including 1.83 g/t Au and 1,800.0 g/t Ag over 0.5 m
• 0.30 g/t Au and 622.0 g/t Ag from a mineralized dump
• 0.59 g/t Au and 330.0 g/t Ag over 0.7 m
• 5.35 g/t Au and 1,189.0 g/t Ag from a mineralized dump

These values at surface combined with the known depth of the workings suggest that these vein systems have the potential to continue to much greater depths - as is the case at the Fresnillo mine (the world's richest underground silver mine at 900 vertical metres) located approximately 9 km to the south as well as at the Juanicipio Joint Venture (with intervals at a depth of 800 metres) located 11 kilometres to the southwest.

To date, four sub-parallel veins have been identified within the northern portion of the Guadalupe property. Highlights from the sampling these veins are:



Due to a greater amount of overburden, there is much less outcrop in the southern portion of the property. Sampling, therefore, concentrated predominately on mineralized dumps located at or near the historic workings.

These initial results indicate that there is a higher gold to silver ratio in the south of the property. Mineralized dumps sampled in the south of the property returned the following results:



Of note, the dumps that were sampled are associated with historically significant mines within the property -- the San Antonio and Santa Rosa located in the southern portion of the property.

The Deal:

To earn a 90% interest Gold American Mining Inc. will be required to pay Yale US $ 900,000, spend US $ 2,000,000 on exploration expenditures and issue 1,000,000 shares to Yale over four years. Cash payments will be due every six months and will increase to a final payment of US $355,000. Yale will act as the operator for the project. The minimum work commitment before June 30, 2011 is US $ 400,000 including a minimum of 2,000 metres of drilling.

Should the earn-in be completed Yale will retain a 10% participating interest in the property as well as a 2% NSR, which can be bought out in entirety for US $ 2,000,000.


Please read news releases for complete details regarding the Guadalupe Property.
Ian Foreman, P.Geo., is Yale Resources' Qualified Person, as defined by National Instrument 43-101, for the Guadalupe Property.