The 100% owned Nevlje Project covers 69 square kilometres, and is located approximately 10 kilometres south of Dimitrovgrad in southeast Serbia. The project is adjacent to and immediately across the border from Teck and Euromax's Trun gold project in Bulgaria. Nevlje lies within the early Tertiary arc that contains the economically important Timok volcanic complex that hosts the Bor, Veliki Krivelj and Majdanpek porphyry-high sulphidation epithermal systems in Serbia where past production has been estimated at some 6 million tonnes copper, more than 20 million ounces of gold and 40 million ounces of silver according to the BRGM and the Serbian Geoinstitute. Nevlje also lies approximately midway between the Bor complex and the Panagjurishte porphyry district of Bulgaria that includes Assarel-Medet, Elatsite (estimated combined 1 billion tonnes at 0.4% copper) and Chelopech which contains more than 3 million ounces of gold (source Dundee Precious Metals).

Past exploration at Nevlje, limited to surface prospecting, airborne magnetic surveys, induced polarizations surveys, trenching and two short drill-holes, has identified copper mineralization with trench assay values up to 1.7% copper in hydrothermally-altered volcanic rocks in an area known as Borovo. Limited exploration work took place over seventy years ago, however the two dill-holes were drilled in the 1960s and both contained copper; however, neither hole was drilled deep enough to intersect the buried anomaly identified by the geophysical surveys. Drill-hole B1 yielded three intervals with enhanced results for copper: 10-15 metres with 0.27% copper, 35-40 metres with 0.66% copper and 150-155 metres with 0.32% copper. The second hole reported 38 metres of 0.1% copper to the end of the hole at 158 metres. Neither the core, nor the trench locations are available for checking. Past work also reportedly identified stockwork mineralization at Nevlje. The foregoing information is historical Serbian state data based on work completed by the Nis branch of Yugoslav Geological Survey and the Geological Department of the Copper Institute in Bor, which were compiled in a 1967 report by Jadranin D. and others. Columbus Copper cautions readers not to state undue reliance on this data, as a qualified person has not done sufficient work to classify this data as a current mineral resource or reserve, and Columbus Copper is not treating this data as a current mineral resource or reserve.

Work performed by Columbus Copper includes a ground magnetic survey to validate the reported anomaly, as well as soil sampling. Copper anomalism was identified from three separate areas and confirms results of historical exploration. Although andesites might have a role to play in the magnetic anomaly, modelling suggests a deeper and larger source. Magnetic susceptibility tests are required on the volcanics at surface. Rock sampling gave three samples with significant copper content, including a limestone skarn grading 3.88% copper.

Columbus Copper followed up these results with a three profile 100 metre dipole-dipole IP/resistivity survey. All three profiles identified anomalous chargeability over areas with enhanced soil copper. The Report recommends drilling to 400 metres in the section where copper was intercepted in historical drill-hole B1. These results are encouraging enough to develop drill targets, subject to better definition deep geophysical surveys by a specialist contractor to help targeting. The conclusion reached at this stage by both Columbus Copper and the Report's author is that surface and near-surface copper showings possibly relate to a deeper porphyry/skarn source that is also possibly responsible for the strong magnetic anomaly.

The recommended work program proposed in the Report and endorsed by Columbus Copper is as follows:

• One validation drill-hole at the location of drill-hole B1, but extended to at least 400 metres in depth.

• The acquisition of more detailed magnetic susceptibility data and remodelling the magnetics in the context of a deeper porphyry model.

• More geological mapping, particularly of alteration assemblages, combined with rock sampling and trenching as required.

• Carry out deep sounding IP and/or CSAMT to confirm the IP anomalies prior to drilling.

• Additional drill testing as determined by the deep-sounding geophysics, with drill-holes at least 1,000 metres apart and designed to test for porphyry 'footprint' in the first instance.

Columbus Copper's Qualified Person, David C. Cliff, BSc (Hons), MIMMM, C Eng, FGS, also Columbus Copper's President & CEO, has reviewed and approved the content of this project description.