New Zealand

Superior Mining International is consolidating alluvial gold properties and carrying out a comprehensive exploration program in the historical Ross alluvial goldfield located on the west coast of the South Island of New Zealand, approximately 20 km south of Hokitika. The company has acquired three properties at Ross: Victory, Victory North and Ross South.

Superior Mining has also entered into an option agreement to acquire an 80% interest in the copper-gold Otama property, which is located in New Zealand's northern Southland Province.

Millions of years ago, when the tectonic plates forced the Southern Alps to rise from the Tasman Sea, two precious minerals were brought to the surface in abundance: pounamu (jade) and gold. The Maori first discovered the dense glass-like jade, and prized it for carving mere, a hand-to-hand combat weapon, and for ornamental sculptures.

The Company has just completed a successful Phase 1 drilling program on its Victory property. Immediately adjacent to the property is the Birchfield mineral property, which is reportedly producing at a rate of approximately 20,000 oz Au per year.

Ross Goldfield

The West Coast of New Zealand's South Island has contributed approximately 25% of the country's annual gold production over the last 10 to 15 years. Total reported placer production is in excess of 9.0 million ounces. All of the gold produced in this region since the 1950s has come from placer deposits. The West Coast is a long narrow region confined between steep mountain ranges to the east and the Tasman Sea to the west. In between are foothills to the main ranges, terraced river valleys and a narrow, discontinuous coastal plain. Beach placers are found in present-day beaches, older post-glacial beach deposits, and the raised beach deposits of successive marine interglacials, which underlie the remnants of coastal terraces (Crown Minerals, 2008). Gold, always very fine, is concentrated with other heavy minerals into lenticular beach placers. Since 1980 there have been a large number of successful small and medium-scale gold recovery operations using hydraulic excavators and mobile gold recovery plants.

When Europeans started to arrive in the area en masse in the 1860s, many came for one thing alone: gold. Most of the towns on the West Coast, like Ross, owe their beginnings at least in part to those feverish days of the New Zealand Gold Rush. Ross is a gold-mining town and the last example of deep-level alluvial gold mining in New Zealand. The largest gold nugget ever found in New Zealand - the 'Roddy' nugget - was discovered in Ross. It was the size of a man's fist. Some estimates put about $700 million worth of gold remaining under the town. The goldfields are still rich in gold, and one of many local tourist attractions include gold panning as an activity for visitors.

Ongoing exploration on the Victory, Victory North and Ross South properties by Superior Mining has included drilling 61 reverse circulation holes, a trenching and test pit program with bulk sampling under way using a mobile bulk sample plant for evaluation. Production decisions on the Victory property will be made following completion of bulk sampling and a review of alluvial gold recovery technologies with respect to the particular gold-substrate conditions encountered on the property.

Otama

Superior Mining's Otama Property is a single elongate block located on the Permian Otama Complex, encompassing 1,784 ha of Cu-Au mineralization. Not yet drilled copper-gold mineralization has been located throughout the area.

The Permian Otama Complex of northern Southland is an igneous body that outcrops over an area of about 50 m². The complex has been classified as part of the Permian Dun Mountain Ophiolite Belt (DMOB). A wide variety of rock types make up this body and are subdivided into plutonic and volcanic types. The plutonic rocks such as the gabbro, norite and granitoids have been classified as part of the Dun Mountain Ultramafic Group. The more basic rocks, such as keratophyre, splilites and basalt, volcaniclastic breccia and diorite, form part of the Livingstone Volcanic Group.

In 2004, excavation of a small rock quarry to obtain material for a small farm road revealed malachite staining on some of the rock exposed by the excavation work. Subsequent sampling at the site and analyses returned values suggesting high copper mineralization. Sampling of gossanous outcrops on the property by historical explorers reported significant Cu-Au values.

Superior Mining entered into an agreement with Lodestar Resources Limited to acquire an option to purchase an 80% interest in the Otama property. The property covers two north-south trending horst fault blocks, with severe structural dislocation resulting in a series of metre- to kilometre-sized fault mélanges of intrusive and volcanic facies rocks, along with associated mylonization. Hydrothermal silica, argillic to advanced argillic and magnetite alteration is widespread. Copper and associated gold mineralization occurs in zones of bleached and silicified breccias/shear zones impregnated by up to 25% pyrite and trace to minor amounts of chalcopyrite, and sulfide disseminations within diorite and keratophyre intrusives. Outcrop mineralization of the former is highly weathered and interpreted as semi-gossans. The company has embarked on a costean and sampling program.