ATLAS EXPLORATION PROJECTS

Consistent with Atlas’ tactical strategy to enhance the viability of the Carmen Copper Project, Atlas Exploration Inc.’s (AEI) activities in 2006 were focused on the mine dump sites, and the possible extensions and satellites of the Lutopan Orebody, Carmen Orebody and Biga Orebody. If exploration results on the dump sites should turn out to be favorable, given the unprecedented copper price, they could potentially become a large near-surface mineral resource which could serve as a source of low-cost ore. The mine dumps could also reduce the sensitivity of the mine project to any unforeseen delays in the development of the Carmen Underground Mine. Likewise, the exploration for possible extensions / satellites of the known Orebodies is intended to increase the mineral resources of Atlas’ Toledo Copper Complex in Cebu.

A Five-Year Exploration Program and Budget has been prepared, which includes the exploration of the Maypay Copper and Gold Prospect in Balamban, Cebu; Diwata Gold Prospect in northeastern Mindanao and gold prospects in northern and southern Luzon as well as the acquisition of other mineral properties like magnetite sand, cement raw materials and other high-value minerals to diversify Atlas’ mineral holdings / portfolio.