Cancana Outlines Comprehensive 2015 Exploration and Development Program for the BMC Joint Venture - Seite 2

Field mapping and excavations have confirmed that the colluvial mineralisation is sourced from deeper, structurally controlled hydrothermal veins. The better individual vein zones observed to date can be approximately 1 - 3m wide, and exhibit a predominant ENE strike orientation and steep dips. Subordinate N and NW strike trends have been locally observed. Testing the resource potential of the bedrock mineralisation will be a key exploration objective in 2015 and onwards.

Ground geophysical programs have commenced over select prospects to confirm the effectiveness of various techniques in targeting under-cover vein mineralisation. To date, the trials have involved 104 line km of ground magnetic surveys, 6 line km of Dipole-Dipole IP surveys, 5km² of Gradient Array IP surveys, and 17 line km of ground penetrating radar surveys. Induced polarisation surveys appear to be particularly effective, with resistivity data highlighting the position of the host structures (Figure 2, also located at www.cancanacorp.com). Associated chargeability anomalies, 100 - 500m long, provide exploration targets for bedrock vein mineralisation (note that targets defined by geophysical anomalies are preliminary in nature and are not conclusive evidence of the likelihood of the occurrence of a mineral deposit).

Geophysical programs will extend into the 2015 period following the conclusion of the wet season, with CGG to conduct a regional HeliTEM aerial survey and the ground surveys to be continued. Highly ranked targets will be evaluated through trenching and drilling activities planned for 2015. The initial focus of activity will be on areas where higher levels of past colluvial production have been recorded, and/or wider zones of veining are identified. Some prospects of particular interest include São Filipe, Eduardo Mendes, Ademir, Gomes Floresta, and structural corridors around the Jaburi and Rio Madeira plant areas (Figure 3, also located at www.cancanacorp.com). Additional targets are being developed and will be prioritised following aerial and ground geophysical programs. The Company is awaiting assessment of various technical reports by the DNPM to facilitate access to some of these areas, and is liaising with government agencies and landholders on permitting for its programs⁵.