New World Resource Corp. - Overview

Overview Lipeña/Bonete Pastos Grandes Corporate Social Responsibility Disclosure

Bolivia is located in central South America and borders Brazil in the northeast and east; Paraguay in the east and southeast, Chile by the south west, Argentina in the south, and Peru in the west and northwest. Bolivia is a diverse country positioned between the Andes and the Amazon.

Bolivia has a rich mineral history that dates back to the sixteenth century when the Potosí silver mines were discovered and became a source of wealth for the Spanish colonizers. Mining continues today to be one of Bolivia's most important economic activities and currently the extraction of minerals and hydrocarbons accounts for 14.1% of GDP. Principal metals and minerals include zinc, silver, tin, gold, lead, antimony, and copper.

Significant foreign capital is being injected into the Bolivian resource sector and Bolivia has gone from the ninth largest producer to the fifth largest producer of silver in the world with the advancement of three major modern silver mines built within the past four years. Japanese owned Sumintomo Metal Mining now operates the San Cristobal silver-lead-zinc mine located in the north-west corner of Bolivia close to the borders of Chile and Argentina. San Cristobal is the world's third largest silver and sixth largest zinc output producer. Empresa Minera Manquiri, a wholly owned subsidiary of Coeur d'Alene Mines Corporation (Coeur), operates one of the world's largest pure silver mines near Potosí, Bolivia. Pan American Silver also operates the San Vicente silver-mine located in the southern end of Bolivia, which is expected to produce 2.8 million ounces of silver annually.

In addition to silver production, Orvana Minerals Corp. is currently in production at the company's Tojas project, with a total measured and indicated resource of 27,440 ounces of gold. Orvana produced over 420,000 ounces of gold at the Lower Mineralized Zone prior to its depletion in July 2009. New World Resource's Lipeña/Bonete copper-gold project is located in southwest Bolivia. This project has generated significant copper and gold mineralization the last time the project was drill tested. Drill hole 06DLP-47 intersected 2.57 g/t gold and 1.48% copper over 212 metres (reported September 23, 2006).

According to the U.S. Geological Survey and U.S. Department of the Interior, Mineral Commodity Summaries, January 2011, lithium resources for Bolivia in 2010 is estimated to be 9 million tonnes while the identified lithium resource worldwide is estimated to be 33 million tonnes. Bolivia contains over 25 percent of world's identified lithium resource and is known to host the world's largest undeveloped lithium (Li) brine resource within the Salar de Uyuni.

The Salar de Uyuni is located in the Bolivian Altiplano. This area in the Altiplano is also home to New World Resource's Pastos Grandes project and is part of a series of alkaline-saline lakes and salt crusts known as salars. Salars are composed of brines and salts rich in many minerals including lithium, potassium and boron. Brines have quickly become an increasingly important source of lithium.

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