Operations overview

Ovoca has three projects in the Magadan Region, Russia. The Magadan Region is located in the Far East part of the country, directly North of Japan. The region's total population is 170,000 and cities which are important for Ovoca's operations include Magadan (population 100,000), Susuman (7,800), Omsukchan (4,500) and Seimchan (3,700).

The Magadan Region in geography is marked by rolling mountains with a maximum height of 2,000 meters above sea level. The region is in a permafrost zone, and although there is vegetation consisting of various arctic trees and shrubs. The area's climate is continental with long winters up to seven months and a short dry summer. The minimum average air temperature for January is between -40 and -50 degrees Celsius and the maximum average air temperature for July is between +10 and +20 degrees Celsius. Snow cover is established in early October and melts by the end of May.

Because of the harsh climate and general poor infrastructure development of the region, exploration and mine building logistics are very seasonal. Equipment is moved to off-road sites before the winter thaw starts in April, so that frozen riverbeds can be used as a transport system and so that wet bogs do not hinder movement. While drilling and other operations can be conducted in winter, summer is a more effective time to work.

Ovoca's three properties in the Magadan Region are: Stakhanovsky, Rassoshinskaya, Nevsko-Pestrinskoye.

Stakhanovsky is located approximately 40 kilometres north of Susuman, the second largest city in the Magadan Region. It is accessible by year-round road and there is power infrastructure on site. Internal preliminary estimates suggest a gold resource (non JORC code nor Russian standard compliant) of over 700,000 ounces. The Company intends to put Stakhanovsky into production by 2013.

Rassoshinskaya is in the North Eastern part of the Magadan Region about 200 kilometres from the town of Simchan. There is no nearby infrastructure. Rassoshinskaya hosts an epithermal gold deposit named Olcha, which is the focus of Ovoca's exploration program. Olcha and nearby satellite deposits have the potential to host a high grade multi-million ounce gold resource.

Nevsko-Pestrinskoye is located in the central part of the Magadan Region near the town of Omsukchan. A year-round road and powerline are near the site. The license completely surrounds the Goltsovoye silver deposit, which was owned by the Company from 2006 - 2009 and sold to JSC Polymetal for US$47.7 million at the time of closing. Ovoca intends to investigate and explore known mineral occurrences that extend beyond the Goltsovoye license area onto Nevsko-Pestrinskoye.