Exploration

The geology of Haiti is prospective exploration terrain for epithermal gold-silver as well as copper-gold porphyry deposits, and consists of preserved remnants of a Cretaceous island arc assemblage situated along the northern margin of the Caribbean Plate. This geologic environment hosts numerous gold and copper occurrences in Haiti, as well as the Pueblo Viejo deposit in the adjacent Dominican Republic. Pueblo Viejo has 215 million tons of proven and probable reserves containing 20.4 million ounces of gold, 117.3 million ounces of silver, and 423.5 million pounds of copper as of year-end 2007 reporting (www.barrick.com). However, even though Haiti's mineral potential is similar to that found in the Dominican Republic, it has remained under-explored.

The recognition of Haiti's exploration potential, coupled with an improving business climate, resulted in EMX's establishment of an exploration program in early 2006. EMX's initial exploration successes in the La Miel and La Mine projects led to the establishment in 2008 of a Joint Venture and Regional Strategic Alliance (the "Agreement") with Newmont Ventures Limited ("Newmont") for exploration in the Republic of Haiti. The Agreement initially included a private placement, a joint venture on the La Miel gold project, and a regional strategic exploration alliance that covers northern Haiti. This Joint Venture has been exploring in northern Haiti as part of the Regional Strategic Alliance exploration program, and has reported encouraging results from multiple gold, copper, copper-gold and gold-silver occurrences and prospects. The Joint venture has since grown with the selection of the La Mine and Treuil licenses as designated projects in 2009, the addition of the Grand Bois project as a Designated Projects and the Platon project (Vert de Gris) which was selected as a Designated Project in 2010. Since then, Newmont Ventures Limited has selected the remaining EMX licenses in Haiti as Designated Projects. All of EMX's properties are now advanced to Designated Project status, with exploration sole funded and managed by Newmont. This is a major milestone in the advancement of the Joint Venture's exploration programs in Haiti, and represents a significant success in EMX's execution of the prospect generation business strategy.


EMX's exploration properties are now covered as six Designated Projects (i.e., La Miel, La Mine, Grand Bois and Surrounding Properties, Northwest Haiti, Northeast Haiti and North Central Haiti).

Newmont may earn a 70% participating interest in the new Northeast Haiti and North Central Haiti Designated Projects by solely funding the first US$10M in venture expenditures on, or before, six years from the date the government issues the mining convention and exploration licenses. If EMX elects for its interest to be financed, Newmont may earn an additional 5% interest in any specific Designated Project. Additionally, Newmont has agreed to reimburse EMX US $933,334 in satisfaction of the second payment made to Societe Miniere Citadelle for its obligations under the Grand Bois Agreement dated December 22, 2008. For more details concerning EMX-NEM Designated Project and Regional Strategic Alliance terms, please see Company news releases dated April 28, 2008, August 24, 2009, and September 7, 2010.

The JV's portfolio covers over 130 kilometers of strike length along northern Haiti's Massif du Nord mineral belt, and includes properties with historic gold and copper resources in addition to multiple early-stage gold and copper discoveries.


EMX and Newmont are aggressively exploring the Company's extensive property portfolio in what is gaining recognition as one of the world's premier, early stage gold-copper exploration terrains.