Exploration

Philippines

Following completion of due diligence in December 2006, Anvil elected to proceed with a detailed evaluation of the Itogon Suyoc Resources Inc. (“Itogon”) mineral properties in the Philippines.  The Company made a cash payment of $2 million to Itogon on February 16, 2007 and will provide funding to a minimum of $2 million in exploration expenditures and use its best efforts to complete the detailed evaluation within a two-year period.

The Baguio District has been the most significant gold producing district in the Philippines with historical production of 28 million ounces of gold and 2.3 million tonnes of copper.  It is located within a dilation zone at a change of direction of the Philippine Fault Zone, a major geological feature which transgresses the Philippine archipelago for a distance of more than 1,200 km.  A great number of the epithermal gold and porphyry copper deposits in the Philippines appear to be spatially related to this major fault zone.  The Philex Mine located 10 km to the southwest of the Itogon properties has historical production of 5 million ounces of gold, 5 million ounces of silver and almost 2 million tonnes of copper.