Rockstone Research VDR1 English

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High-grade – Higher-grade – Vendome-grade

A Candidate with Potential for the Largest Silver Discovery of the Century

Everything that was reported from the San Javier project by Vendome Resources was extraordinary, not to say sensational. It is rare to read in relevant media about surface rock samples yielding more than 1,000 grams of silver per ton. It is a different story with Vendome. Dozen of assays revealed a silvery glittering visage of a silver monster blinking through the surface. 2,000 grams, 4,000 grams, 8,000 grams, and even 15,000 grams of silver per ton were found in southern Mexico right next to a main road. Metal miners like Goldcorp and Nyrstar or explorers like Torex and Newstrike pro-ve that Guerrero – the province where Vendome has been searching and finding silver – is “the place to be“. More details in the report.

INITIATING COVERAGE Vendome Resources Corp. August 20, 2012

Type of Analysis: Initiating CoverageRecommendation: Speculative BuyPrice Target: C$0.55Price Target in view of: 6 months

Home Exchange: TSX Venture (Canada)Market Capitalization: C$11 millionCurrent Price: C$0.28 (08/20/12)Difference to Price Target: +96%

Analyst: Stephan Bogner (Dipl. Kfm)

Analyst: Dipl. Kfm. Stephan BognerResearch Label: Rockstone Research Ltd. Büro #504, 81 Oxford St. London W1D 2EU, England Phone: +44-20-8123-9832 [email protected] www.rockstone-research.com

Analyzed Company: Vendome Resources Corp. 133 Richmond Street West Suite 403 Toronto, Ontario, Canada M5H 2L3 Telefon: +1-647-932-1604 [email protected] www.vendomeresourcescorp.com

ISIN: CA9226261068 Home Exchange: Toronto Venture Exchange (Canada) Symbol: URS

Type of Analysis: Initiating CoverageInitiating Coverage: 08/20/12Recommendation: Speculative BuyPrice Target: C$0.55Price Target in view of: 6 MonthsCurrent Price: C$0.28Difference to Price Target: 96%52 Week High / Low: C$0.57 / C$0.18

Market Capitalization: C$11 millionShares (issued & outstanding): 39.84 million

Warrants („outstanding“ August 2012): approx. 5 million @ C$0.30

Cash: approx. C$600.000 Trading Volume (10 Day Average): 172,000

Moving Averages:21 Days @ C$0.2550 Days @ C$0.27200 Days @ C$0.23

Price Performance:7 Days: -0.01 (-2%)21 Days: +0.04 (+10%)30 Days: +0.06 (+20%)90 Days: -0.00 (-5%)180 Days: +0.03 (+8%)200 Days: +0.03 (+6%)

Month to Date: +0,06 (+20%)Quarter to Date: -0,00 (-5%)Year to Date: +0,12 (+62%)

www.rockstone-research.com 2

INITIATING COVERAGE August 20, 2012 Vendome Resources Corp. TSX.V: VDR Frankfurt: 9VR

VDR @ TSX.V(1 Year Linear in CAD)90 Day MA (blue)


Frankfurt Exchange (Germany):Symbol: 9VRWKN: A1CZ4PCurrent Price: €0.222012 High / Low: €0.27 (06.07.2012) / €0.12 (09.01.2012)52 Week High / Low: €0.27 (06.07.2012) / €0.06 (14.11.2011)

Price Performance / Average Trading Volume per Day:1 Woche: +3% / 123,5784 Wochen: +18% / 98,56852 Wochen: +135% / 60,652

Risk-/Trend-Values: 30 Days 250 DaysVolatility 99% 121%Momentum 0.90 2.35RSL-Levy 1.12 1.47

Moving Averages (MA):Period Average Difference Price / MA38 Tage €0.216 4%100 Tage €0.201 11%200 Tage €0.176 22%

Sources:

www.vendomeresourcescorp.comwww.sedar.comwww.tsx.comwww.edgaronline.comwww.vantagewire.comwww.quotemedia.comwww.canadianinsider.comwww.otcmarkets.comwww.deutsche-boerse.dewww.consors.de www.onvista.dewww.stockcharts.comwww.googlemaps.comwww.navdat.orgwww.canadaimg.com

Abbreviations:

$ = U.S. Dollar € = Euro@ = At % = Percent& = And> = Above; more than< = Below; less thanAg = SilverAs = ArsenicAu = Gold

Ba = BariumB.C. = British ColumbiaC$ = Canadian DollarCAD = Canadian DollarCorp. = CorporationCu = CopperEUR = Eurog = Gram(s)ha = HectaresISIN = International Securities Identi-fication Numberkg = Kilogram(s)

km = KilometerLtd. = Limitedm = Meter(s)MA = Moving AverageMn = ManganeseNO = North-EastNSR = Net Smelter RoyaltyNW = North-WestOTC = Over The Counter ExchangeOz = Troy Ounce(s) (31.1034768 g)Pb = Lead RC = Reverse Circulation

Sb = AntimonySE = South-EastSW = South-Westt = Ton(s); (metric) TSX.V = Toronto Venture ExchangeUS$ = U.S. DollarUSD = U.S. DollarWKN = WertpapierkennnummerZn = Zinc


9VR @ Frankfurt(1 Year Linear in EUR) 90 Day MA (orange)

Evaluation & Prognosis

Toronto based Vendome Resources Corp. (“VDR“) is an exploration com-pany with 3 active projects in the world-class mining district Sierra Madre del Sur Precious Metal Belt of Mexico and 1 project (Ivanhoe) in Ontario.

The 3 Mexican properties San Javier (incl. the old San Javier Mine), La Diana and San Miguel are adjacent to eachother and cover a combined area of almost 18,000 ha in the province of Guerrero, where numerous prominent deposits rich in silver, gold, zinc and lead are located. The fa-mous Guerrero Gold Belt is around 150 km northwest, where Goldcorp (NYSE: GG; market cap $30 billion) operates the Los Filos Mine – the lar-gest Mexican gold mine (7.7 million oz @ 345.000 oz/year). In 2010, Fa-rallon Mining Ltd. brought its G-9 deposit into production some 210 km northwest (yearly output: 50,000 t zinc, 1.5 million oz silver and 20,000 oz gold). In 2011, the world’s largest zinc producer, Nyrstar from Belgium, took Farallon over for around C$400 million.

Thanks to the missing infrastructure in this part of Mexico, limited explo-ration was conducted in the past being the reason why many prospective areas are virtually untouched or solely small-scale and semi-professional mining was done at the most obvious mineral deposits cropping out at surface. However, the Mexican government has been investing large sums into the infrastructure during the last years (such as construction of streets, supply of water, electricity and telecommunications) which has made Guerrero substantially more attractive for exploration and mining.

Some examples for success in the province of Guerrero are Torex Gold Inc. (TSX: TXG; C$777 million market cap) whose share price rose strongly from C$0.15 (2009) to C$2.40 (2012) based on extraordinary drill results. Shareholders of Newstrike Capital Inc. (TSX: NES; C$199 million market cap) also had the chance to make some substantial profits during the 2 years when its share price rose some 3,000% (2009-2011).

The VDR-projects La Diana and San Miguel are virtually unexplored, whe-reas several consolidated findings were already made at San Javier. The grade and trend of mineralization at the old San Javier Mine is known as samples showed the Javier Vein averaging 2,070 g/t silver, 5.2% lead and 2.5% zinc in 2009, while the Ancha Vein returned 273 g/t silver and 0.2% lead and zinc and the Las Juntas Vein 172 g/t silver, 3.7% lead and 2% zinc. Samples from the old stock pile presented a mineralization of 463 g/t silver, 3.8% lead and 2.7% zinc.



Since December 2011, VDR sucessfully proves that a significantly more widespread and higher-graded silver mineralization occurs as previously expected. Apparently, only 300 m southwest of the old San Javier Mine an even larger vein system occurs at surface – the Veta Tajo Zone, which was discovered by VDR and which was obviously overlooked by earlier prospectors. In spring 2012, a total of 42 samples were collected here elating with an overall average of 925 g/t silver and up to 5% lead and 6% zinc (only 14 of the 42 samples had less than 100 g/t silver). The newly discovered Veta Tajo vein system even extends to the north and south. Additionally, numerous new veins were identified at several other locations of the San Javier property also showing high-grade mineraliza-tion at surface, such as 15,000 g/t silver.

Yet the exploration focus of VDR is not only limited to the 253 ha sized San Javier property, but also on the highly prospective neighbor proper-ties San Miguel (2,000 ha) and La Diana (14,722 ha). Hence, the explo-ration potential of all 3 properties is extraordinarily high with no other project around in this promising and unexplored part of district being on the same page as VDR.

We are not aware of any other active silver exploration company having recently started with an aggressive exploration program based on that many and high-grade samples from surface. We rate the prospects for an exploration success as exquisitely high. With a current market cap of solely C$11 million, we categorize the shares of Vendome as “underva-lued“. Shortly before drill targets are defined and rigs being contracted, we anticipate a fast and strong stock price appreciation being based on the speculation of a drilling success. For the next 6 months, we set our price target at a minimum of C$0.55 – which represents a market cap of C$22 million with 40 million shares issued and oustanding. Should one drill hole confirm even roughly the same mineralization grades as the rock samples from surface, we expect a market cap of at least C$50 milion (C$1.25/share).

The reason we consider such a fast and strong share price appreciation as probable is that such kind of polymetallic vein deposits (in contrast to most other deposit types) can be brought into production relatively fast and inexpensively.


Disclaimer & CopyrightAt the time of publication of this document or its content, the respective author holds shares of Vendome Resources Corp. and may sell them any time without notice. The companies that are analyzed or mentioned here did not pay any monies or other tangible or intangible valuables (e.g. securities such as shares or stock-options) to Rock-stone Research Ltd., the respective analyst or any persons affiliated with Rockstone to conduct this content. All information that is provided just represents the opinion, thoughts & intuitions of the author & do NOT reflect an advise or any kind of consultation. The provided analysis of especially markets & companies are solely for the pur-pose of information & education – in no way it is to be construed as a de facto buy-, hold- or sell-recommendation for any kinds of securities, physical goods or markets; hence the provided content does NOT represent an act of consultancy, advise or an offer to buy, hold or sell anything being mentioned here. Rockstone Research & the respective author can NOT provide any guarantee for the accuracy, completeness & currentness of data being provided & mentioned here; hence any kind of liability is ex-cluded & impossible. Rockstone shall not be liable for any information contained in or activities conducted through the websites of any other companies which are hyper-linked by Rockstone. The author and/or Rockstone is not responsible & liable for any external links to websites that are published under the name of Rockstone, nor for any content that is published by Rockstone as it is evident that the content was not produced by Rockstone or its respective author but by external parties and/or suppliers. The information in this document or website relating to securities & financial services has been reviewed exclusively as to compliance with the laws of the European Union. In other jurisdictions, the furnishing of any such information may be restricted by law. The information is not intended for persons or entities resident, located or registered in jurisdictions that restrict the distribution of such material. Consequently, the provided information does not constitute, and may not be used for the purposes of an of-fer or invitation to acquire or sell any securities to any person in any jurisdiction: (1) in which any such offer or invitation is not authorized; (2) in which Rockstone Research is not qualified to make such offer or invitation; or (3) in which it is unlawful to make any such offer or invitation. In particular, the provided information is not intended to & does not constitute an offer or invitation to acquire or sell securities to persons especially in the United Kingdom & within the territories of the United States of America. Accordingly, any offer from any such person will not be accepted. Anyone accessing this information from a jurisdiction in which any such restrictions apply should inform themselves about, and observe, such restrictions. The securities referred to on this website have not been & will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States except pursuant to any exemption from, or within the framework of a transaction not subject to, the registration requirements of the Securities Act. Therefore, the securities listed in the following information may not be sold to U.S. nationals or otherwise be trans-ferred to the United States unless the relevant transaction is not subject to registration requirements under U.S. law. Every content (not only texts but as well tables, graphics, pictures & charts) being provided here and/or published elsewhere or elsehow under the name Rockstone Research is copyrighted. However, this content is free to be published if solely the source “www.rockstone-research.com” is mentioned. Changing of the texts, charts, graphics or tables is NOT allowed without prior written permission by the author and/or Rockstone Research. We would welcome contacting us if or after you quoted or published content by Rockstone.


San Javier

The San Javier property has a size of 253 ha and is located within the prolific Sierra Madre del Sur Precious Metal Belt in the municipality of Malinaltepec (Guerrero province) in southwestern Mexico.

Interest:In December 2011, VDR’s wholly-owned Mexican subsidiary (Vendome Minas S.A. de C.V.) has entered into an agreement to acquire from Can-sim Minas S.A. de C.V. an earn-in option for a 50% undivided interest.

In total, VDR must make to Cansim aggregate cash payments of C$325,000, issue 3 million shares over a 2 year period, and incur C$3 million in exploration expenditures over a 3 year period.

In late February 2012, it was negotiated with Cansim that a new total of C$2.6 million must be invested into exploration by VDR. For this expenditu-re credit of C$400,000, VDR must issue 800,000 shares to Cansim – thus, one share of VDR is considered to be worth C$0.50 respectively VDR was valued by the seller with C$0.50/share (current share price: C$0.28).

Deposit Type:Silver-gold-lead-zinc epithermal vein mineralization typical of polymetal-lic deposits found within the Sierra Madre del Sur Precious Metal Belt.



Mineralization: Mineralization consists of sulphides, mainly pyrite, chalcopyrite, ar-gentite, galena, sphalerite and arsenopyrite. The wall rocks hosting the stockwork vein system showed kaolinization and sericitization alteration which is considered to be crucial. The stockwork vein system is thought to be similar to rift related epithermal low-sulphidation systems that are host to numerous world-class silver mines in Mexico, e.g. those located near Taxco.

Past Production: Local artisanal miners operated a small mine during 1970-80s. Mine wor-kings (including an 85 m deep shaft and a small processing plant) are located on the property, however limited mining has been carried out and historical estimates of tonnage and grade recoveries are unknown.

Past Exploration:To the best of the management’s knowledge, no modern exploration techniques have ever been utilized at the property.

In conjunction with the preparation of 43-101 in November 2009 by the previous optionor, chip samples were collected from various minera-lized structures and stock piles identified on the property under the supervision of a qualified person. Highlights of the laboratory analyses were reported as follows:

During a VDR staff reconnaissance field trip in August 2010, a qualified person collected chip/grab samples from several veins identified on the property returning grades up to 15,042 g/t silver, 3.2% zinc, and 3.4% lead - which represent the best ever recorded samples at San Javier.

In December 2010, a qualified person associated with the previous optionor of the San Javier Mine collected channel samples with a rock saw from exposed quartz veins within the principal mine area of the property. Samples were cut across the exposed vein perpendicular to strike. The assays are listed on the right and show the mineralzation of such veins: on average more than 1.8 kg silver per ton (world-class).



Current Exploration:In December 2011, VDR conducted a property visit identifying a wides-pread quartz vein stockwork system with veins widths up to 1.5 m and estimated strike lengths of 400-500 m collecting grab samples from se-veral veins located distally from the main adit portal on the property. Results of the analyses are as follows:

These results have considerably expanded the known areal extent of the property’s stockwork vein system, as shown in the December 2010 as-says. Apart from the presence of galena and sphalerite, VDR field staff have noted that the higher values of silver, lead and zinc obtained in la-boratory analyses tend to be directly related to vein samples containing high concentrations of pyrite and arsenopyrite. VDR management must be extremely encouraged by these new results in that new distal stock-work vein exposures located through prospecting continue to yield high-grade silver, lead and zinc values.

In March 2012, VDR began a multi-phase exploration program. The company’s consultant, A.C.A Howe International Ltd., has recommended an initial program designed to determine optimal targets for future dril-ling. Specifically, the program focuses on thoroughly sampling the vein systems. A control grid is being established for magnetic surveys and soil sampling. Induced polarization (IP) surveys are being done in selec-ted areas to map alteration zones and possible disseminated sulphides within vein system wall rocks. Detailed and property-scale mapping is also being done, besides structural analysis from satellite imagery of the San Javier concession.

Franz Kozich, President of VDR, stated:“We are very excited to begin this exploration work as there is no recorded former systematic surface exploration of the San Javier Mine property. We feel that this program has the potential to identify new vein exposures yielding high grade

polymetallic values as well as lower grade bulk mineralization in the altered wall rocks that host these veins.”

In May 2012, it was announced that “an exploration program targeting the property‘s mineralized systems is now well underway. In excess of 600 chip and channel samples have been collected from existing and newly exposed mineralized showings at the property. The company‘s consultant A.C.A Howe International Limited is presently conducting de-

tailed field mapping and reconnaissance. The preliminary results of this mapping appear to have enlarged the known mineralized envelope of the vein system and field staff believes that the San Javier vein system may be a hydrothermal system related to regional volcanism. Chip and channel samples have been submitted to SGS Laboratories in Durango, Mexico.“

Franz Kozich, President of VDR, commented:“We are very excited with the indications of the initial explora-tion work at the San Javier Mine Property. New vein exposures with the potential to yield high grade polymetallic values have

been identified by our field staff, as well as lower grade bulk mineralization in the altered wall rocks that host these veins. The scale of the mineralized system at San Javier continues to

grow.“

In early July 2012, it was announced that “the spring 2012 exploration program targeting the property‘s mineralized systems is now complete. Sampling focussed on the Veta Tajo area located 300 m southwest of the historical San Javier mine workings. The company‘s consultant, A.C.A. Howe International Ltd., believes the Veta Tajo is a previously unrecog-nized, unexplored and unexploited area of significant visible stockwork quartz veining that spans an 80-100 m vertical rise in the west bank of the river valley that transects the central property area. A total of 42 grab samples were collected from exposed vein material. Values for silver ran-ged from <2 g/t to 7,212 g/t, with an average grade of 925 g/t.

Of the 42 grab samples:- 4 returned silver values less than 10 g/t,

- 10 returned silver values between 10-100 g/t, - 18 returned silver values between 100-1,000 g/t,- 10 returned silver values greater than 1,000 g/t.

Additionally, values for lead in these grab samples ranged from 0.1-5%, and zinc ranged from 0.1-6%.

Quartz veining in the Veta Tajo is stacked, horizontal to shallow-dipping and consists of:

- a set of 0.8-1 m thick veins dipping 40-60° to the east - a second set of 25-40 cm thick veins dipping 25-35°

- a third set of 2-5 cm thick veins dipping 0-15°.



Veining appears to be associated with east-west structures cross-cutting a host rock previously identified as “old granite“, which Howe has re-interpreted as strongly silicified felsic volcaniclastics. Howe‘s field work also indicates that veining extends into areas north and south of Veta Tajo.“

In late July 2012, VDR announced that “chip channels were typically 2-3 cm wide and 1 cm deep and were cut using a hammer and moil. Labora-tory analysis of these samples returned silver values ranging from <2 g/t to bonanza grades in excess of 2,000 g/t.

Vendome management must be extremely encouraged by these chip results in that the potential for bulk silver mineralization in wall rock, in addition to high grade narrow vein mineralization has been confirmed.

This material found at surface makes it extremely amenable for low cost open-pit mining methods. The source of silver has been previously unrecognized at the San Javier Mine property, and may be similar to other large scale silver mines in Mexico.

The next phase of work at San Javier will be to test for Veta Tajo mine-ralized extensions at depth and along strike, and to complete airborne surveying and reconnaissance prospecting with a view to developing drill targets over the next weeks.



La Diana

The La Diana property covers 14,722 ha and surrounds VDR‘s option of the San Javier property on 3 sides (see map on page 4).

La Diana is virtual unexplored – no modern exploration techniques have ever been utilized. In July 2010, VDR‘s management and geological team visited the property as part of their due diligence process. New upgrades to area access will allow VDR to initiate a multi-phase exploration pro-gram in the second half of 2012.

VDR‘s President and CEO, Franz Kozich, commented: “When we were presented with satellite and other data for

the property, we found it to be quite impressive. This led us to decide to personally visit the property and see the situation

first-hand. The site visit only increased our level of enthusiasm toward the strong merit of the La Diana property and we look

forward to advancing this project.“

In November 2010, VDR announced an agreement in principal to acquire a 50% interest in the La Diana property from Cansim Minas. Under the terms of the agreement, VDR must pay Cansim C$250,000 in cash and issue 3 million shares. Specifically, VDR will pay C$200,000 and issue 1 mlion shares upon obtaining regulatory approval.

A further payment of C$50,000, within 6 months of regulatory approval, subject to the close of a minimum financing of $500,00 by VDR. In addi-tion, VDR is to issue 1 million shares on the first year anniversary of the executed agreement date, and a third tranche of 1 million shares on the second year anniversary of the executed agreement. VDR will be required to incur C$3 million in exploration expenses by the third year anniversary.




San Miguel

The San Miguel property is approx. 2,000 ha in size and is surrounded by the La Diana property (14,722 ha). San Miguel is virtual unexplored – no modern exploration techniques have ever been utilized.

VDR‘s President & CEO, Franz Kozich, commented: “We are very excited about the potential acqui-sition of the San Miguel property, as it further demonstrates the type of enthusiasm we have

for the region.“

In August 2010, VDR announced that its wholly-owned Mexican subsidiary (Vendome Minas, S.A. de C.V.) has entered into an agreement to acquire a 100% interest in the mineral rights in the San Miguel property from Santa Claws Minas S.A. de C.V. VDR must pay C$25,000 in cash and issue 2.5 million shares to Santa Claws Minas.


Ivanhoe

In August 2010, VDR‘s Exploration Manager, Warren Hawkins (P.Eng), also a Geological Engineer for Hawk Exploration Consultants, commen-ted as follows on this property in Ontario, Canada:

“The property is located just south of Highway approximately 10 km west of the village of Foleyet, Ontario, and just west of the northern tip of Ivanhoe Lake. The property consists of 5 claim units, centred on a 9 to 10 channel Geotem EM conductor associated with a strong magnetic high. The anomaly is circular in morphology with an approximate dia-meter of 250 to 300 metres.

The Ivanhoe Lake Cataclastic Zone, a major structural feature in the area borders the western margin of the anomaly. A secondary fault strikes northeast through the approxi-mate anomaly centre. During a visit to the property, the author noted that the immediate area of the anomaly is a topographic low with few outcrops. According to OGS regional mapping, the ap-proximate anomaly area coinci-des with a leucogabbro intrusive unit that hosts pyrite, pyrrohtite and chalcopyrite mineralization. The OGS reported no surface grab assay values. The surround-ing country rocks are mapped as Proterozoic granodiorites. A re-view of recent assessment file in-formation indicates that no signi-ficant exploration was completed on this anomaly, which Noranda

held as part of a large block of claims in the area in the 1970’s. Noranda later pulled out of mineral exploration in Canada and the ground was subsequently dropped.

The ground was only recently re-staked; the only reported intervening work being that of the OGS Geotem survey in 1989. The author confir-med the presence of the anomaly on both the Noranda airborne survey map and OGS Geotem survey map.“

Under the terms of the option agreement to acquire these claims, VDR must pay the vendors C$32,000 in cash and issue 830,000 shares. The ven-dors received a 3% net smelter royalty (NSR), whereas VDR may purchase 50% of the NSR at any time for a payment of C$3 million to the vendors.


Ivanhoe Lake, Provincial Park, Ontario, Canada (Source: Canadaimg.com)


Management

Franz Kozich-Koschitzky - CEO & President

Mr. Franz Kozich-Koschitzky studied communications in 1969. He spent one year in Cardiff, UK expanding his knowledge in electronics. In 1972, he re-ceived his trading business licenses and started a wholesale and retail busi-ness in the fashion and textile business. In early 1991, he started to focus on venture capital business in junior mining companies trading on the Toronto Stock Exchange and the TSX Venture Exchange. Since 2005, he has been serving on the board of Richmond Minerals Inc. as an independent director. He is also a board member of ArtKing Engineering Ltd., a Hong Kong based mining exploration company, responsible for public relations.

Thomas Sutherland - Director

Mr. Thomas Sutherland is a resident of Burlington, Ontario and is a former Delegate to the United Nations, where he spoke on behalf of Canada in the General Assembly. He is a Queens Counsel lawyer. Mr. Sutherland sat as an Alderman for the City of Burlington for 8 years as well as served as Acting Mayor. Mr. Sutherland has served on the Board of Directors of the Chamber of Commerce, as Chairman of the Solid Waste Advisory Committee, Chair-man of the Visitor and Convention Bureau of Burlington and is a past Direc-tor of the Halton Law Association. His extensive experience and expertise in the areas of law and national/international politics is a valuable asset to our Company’s management team and Board of Directors. Member of the Board Of Directors of the Salvation Army. Big Bothers association for the past 25 years. Chairman of the Visitor Convention Committee. Member of the Canada Day Committees for Burlington and Ontario. Past Member of the Advisory board of Nova West Resources Inc.

James W.G. Turner - Director

James W.G. Turner, age 45, is a self-employed consultant and entrepreneur with over 18 years of experience founding and growing technology and ser-vice companies. His track record includes being one of the founding officers of two companies, including LMS Medical Systems Ltd., a private company in which he was Vice President, Sales and Marketing, from 1993 to 2001. This company subsequently went public through an acquisition with a CPC in 2004, with resulting issuer, LMS Medical Systems Inc., being listed on the Exchange (TSXV: LMS). Prior to the creation of LMS, Mr. Turner created Ray-mark Xpert Business Systems in 1987. In 2005, Mr. Turner became a found-ing executive team member of VideoPresence Inc., a private company that is bringing to market a video conferencing system. Mr. Turner was also a director of Vendome Capital Corp a CPC company which closed its qualify-ing transaction in August 2008 and now trades as Axiotron Corp. under the symbol AXO. Mr. Turner has had a wide range of real world experience that includes supervising implementation and development for a wide range of products and running corporate operations for numerous companies. Mr. Turner obtained a Bachelor of Science from McGill University in 1987. He will devote approximately 5-10% of his time to the affairs of the Corporation.

Warren Hawkins, P.Eng - Exploration Manager

Geological Engineer for Hawk Exploration Consultants.

J. Andrew McQuire - CFO

Mr. J. Andrew McQuire received a mining engineering degree from Queen’s University in 1970 and went on to earn his masters degree in mining engi-neering in 1974, and a CMA in 1980. Between 1972 and 1978, Mr. McQuire worked with Placer Dome as a mining engineer. He went on to join Sunlife Financial as a portfolio manager and analyst until 1987, and was a senior gold analyst with RBC Financial Group until 1990. Mr McQuire joined Broad Oak Associates as Executive Vice President until 1996. Since 1996, Mr. Mc-Quire has worked as a private consultant and is a director of a number of public companies.



Technical Analysis

Between mid-2010 and late 2011, the share price of VDR at the TSX.V fluctuated within a red-green triangle.

In late 2011, some smaller breachings of the lower (green) triangle leg occurred, yet the price managed to break above the upper (red) leg at approx. C$0.15 in December – and a so-called breakout followed to approx. C$0.19, whereafter a so-called classical pullback to the red-green triangle apex occurred.

Thereafter, the final movement out of the 20-month tri-angle started: the so-called thrust – a strong upward-trend (highlighted in lightgreen).

Principally, the goal of a thrust is to rise above the high of the triangle or breakout, transform it into a new support in order to start with a new and long-term upward-trend thereafter.

The high of the 20-month triangle was between C$0.28-0.33 which means that the current goal of the thrust since early 2012 is to transform this resistive level into new sup-port. To achieve this, the price is using another sideways consolidation which was also forming along a red-green triangle since early 2012. As early as May, breakouts began, and numerous pullbacks followed, whereas all of them held successfully in the triangle (sell-signal when breaching the green leg). As most thrusts generally start at 3/4 before the apex, the thrust may have started already in July 2012 – with the goal of breakingt the final resistance at C$0.33, transform it into new support in order for a new and sustai-nable upward-trend to typically start thereafter.

The RSI (Relative Strength Index) is in neutral territory at the moment. Relatively to the HUI minig index, the VDR stock performs significantly better, whereas a tringle formed as well out of which the thrust began in late 2011 currently attempting to transform the high of the triangle (0.0006 points) into new support in order for a new and strong upward-trend to start thereafter. The MACD generated a buy-signal recently. The ROC indicator fluctuates sideways along the red-green triangle out of which numerous break-outs and pullbacks statrted since few months, whereas the final thrust may alrady have started. The MFI (Money Flow Index) moves within an upward-trend and is currently in neutral areas. Ther TSI (True Strength Index) moves within a red-green triangle out of which numerous breakouts and pullbacks followed in late 2011. As soon as the darkred re-sistance currently at approx. 0 points is broken, we antici-pate a strong thrust.





Financials

Excerpt from the Condensed Consolidated Interim Financial Statements of February 29, 2012:

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