Malbex Resources

Del Carmen, the Company's flagship project, is located near the southern end of the El Indio Gold Belt. The Del Carmen concessions host two large hydrothermal alteration systems visible as colour anomalies on satellite imagery and known as Del Carmen Norte and Del Carmen Sur. These alteration systems are the focus of our exploration.

Del Carmen Norte

At Del Carmen Norte, preliminary exploration by Malbex during the 2008/2009 field season revealed widespread gold-silver mineralization on surface within the 9 square kilometer (km2) alteration zone, principally associated with siliceous black-matrix, hydrothermal breccias that are commonly controlled within north-east striking structures and which cut massive to vuggy silicification. The style and mineralogy of alteration (quartz, alunite-rich) at Del Carmen Norte is typical for high-sulphidation epithermal gold-silver systems with hydrothermal alteration zoned around cores of massive and vuggy silica, similar to the Veladero gold-silver mine and the Pascua-Lama deposit currently in development.

In addition to 4,710 metres of diamond drilling in 32 holes, a variety of other exploration testing has been completed at Del Carmen Norte, including geological mapping, mechanical trenching and geophysical surveying (ground magnetics and CSAMT). Drill targets identified to date via mapping and sampling include:

• Rojo Grande/Lion King - subhorizontal silicification ±alunite, locally prominent vuggy textures and red-brown discolouration; gold accompanies hydrothermal breccias that cut massive to vuggy silica;
• Quebrada Pedegrosa - narrow bands of silicification and veinlets of jarosite (±quartz-hematite) within quartz-alunite alteration;
• Naciente Quebrada Pedegrosa - silicified tuff and hydrothermal breccia with northeast-striking zones of silicification and veinlets of jarosite (±quartz-hematite) with local high grade gold (several samples >100 g/t Au), poorly exposed due to widespread talus and steep slope;
• Brecha Límite Norte - locally prominent northeast-striking fracture (vein) controlled mineralization with commonly significant copper minerals (chalcocite, enargite, malachite, azurite) conformable within a zone of strong silicification and alunite;
• Ladera Sur de los Tortólas - silicified dacite tuff with bands of east-southeast-striking hydrothermal breccias, silicification and quartz-alunite veinlets that locally host Au-Ag-Cu mineralization with significant Ag and Cu grades;
• Brecha Límite - northeast-striking bands of alunite and gold mineralization within massive to vuggy intense silicification; local barite crystals and breccia textures;
• Cresta del Gallo - northeast-striking band of intense to moderate silicification (locally vuggy) with a narrow envelope of quartz-alunite within (above) a broad zone of argillic (illite, kaolinite, pyrite) alteration; controlled by a northeast-striking structure;
• Brecha Oportuna - roughly north-striking, narrow bands of silicification and siliceous breccias within quartz-alunite alteration;

Malbex's first ever drilling campaign has yielded numerous intercepts of near-surface gold-silver±copper mineralization on six of the seven targets tested at the Del Carmen Norte alteration system. The grades encountered in these drill holes are comparable to the large El Indio Gold Belt deposits at Pascua-Lama and Veladero. While Malbex's early drilling was at the margins of the alteration system, the results of the drilling have shifted the focus to the central area of the alteration system around Rojo Grande, which is the most prospective for hosting bulk tonnage mineralization.

Highlights from the drilling program to date include:

Target	Hole ID	from (m)	to (m)	length (m)	Au (g/t)	Ag (g/t)	Cu (%)	Au Equivalent (g/t)
Rojo Grande	DDHC-10-32	22	164.15	142.15	0.88	13.7	-	1.11
	Including2	23	57	34	1.27	13.6	-	1.50
	Including1,2	124	164.15	40.15	1.45	19.6	-	1.78
	DDHC-10-017	9.0	50.0	41.0	1.18	31.2	-	1.70
	Including	19.0	30.0	11.0	3.42	67.2	-	4.54
	DDHC-10-020	5.5	130.0	124.5	0.57	8.8	-	0.72
	DDHC-10-0201	167.0	190.4	23.4	0.13	10.9	-	0.31
N.Q.Pedegrosa	DDHC-10-023	41.0	46.0	5.0	2.71	0.1	-	2.71
	DDHC-10-023	71.0	92.0	21.0	1.69	0.1	-	1.69
	including	71.0	77.0	6.0	4.32	0.2	-	4.32
	DDHC-10-023	128.0	177.0	49.0	1.11	0.2	-	1.11
	including	146.0	149.0	3.0	9.02	0.1	-	9.02
	DDHC-10-023	189.0	205.0	16.0	2.64	6.1	-	2.74
Brecha Limite	DDHC -10-08	18.0	53.0	35.0	2.22	42.9	-	2.94
	including	38.0	42.0	4.0	6.99	191.3	-	10.18
Brecha Limite Norte	DDHC-10-15	29.0	32.0	3.0	2.60	368.7	2.46	8.75
Ladera Sur Tortolas	DDHC-10-11	23.0	25.0	2.0	1.77	201.0	2.14	5.12
1 ends in mineralisation. 2 based on a 0.5 g/t cut-off
Complete drill results are available by accessing the Assay table. Mineralised intercepts are based on a 0.1 g/t Au cutoff, with no more than 3 metres of internal dilution. Au EQ is calculated using 60 g/t Ag = 1 g/t Au (based on the 3-year average gold:silver price ratio) and assuming 100% metallurgical recovery. Cu is not included in the AuEq calculation. There has been insufficient drilling to date to reliably calculate the true widths of the intercepts above

Over the months of June-August 2010, the geological team plans to build a 3-D model of Del Carmen Norte incorporating geological, geochemical and geophysical results in order to define drill targets for the coming season beginning in fall 2010. The goal of the next field campaign is to demonstrate continuity of mineralization in the central area of the system and to advance the Del Carmen project towards resource definition.

Del Carmen Sur

With the initial focus on Del Carmen Norte, Malbex geologists only began exploration at Del Carmen Sur in December 2009. During the 2009/2010 field season, first-pass geological mapping was completed at 1:10,000 and 886 rock chip samples were collected. On March 5, 2010 chip sample results from Del Carmen Sur were announced, with the best being 4.24 g/t Au, 43.5 g/t Ag and 4.57% Cu over 2 metres from the Filo Ventoso target. Malbex geologists will compile all results from the latest field season with the goal of defining the variations in alteration style and identifying potential regions for geophysical surveying and targets to be drilled in the next field season.