Baroyeca Gold & Silver Inc. entered into two option agreements with Malabar Gold Corp. ("Malabar"), whereby Malabar has granted Baroyeca options to acquire a 100% interest in the Santa Barbara Property and the Falan Property, two mineral properties located in Colombia, South America, along with all of the machinery, equipment, surface rights, licenses, permits, data and records relating to the properties and held by Malabar. The Santa Barbara Property consists of 110.86 hectares located in the Municipality of San Martín de Loba, in Bolivar Department, Colombia. The purchase includes a facility that is being used to carry out bulk sampling on the Property. All permits are in place to conduct the sampling activities on the Property. The Property is subject to a 2.5% NSR retained by the vendor. The Property interests, equipment, operations and permits are all held through a group of four subsidiary companies of Malabar, two incorporated in Panama and two incorporated in Colombia (collectively the "Subsidiaries"). The option granted by Malabar to Baroyeca is to acquire 100% of the shares of the Subsidiaries. The Falan Property consists of 2,859.21 hectares, located in the Municipality of Falan, in Tolima Department, Colombia. Although substantially larger than the Santa Barbara Property, the Falan Property is less advanced, work being at the exploration stage. The Falan Property is subject to a 3.5% NSR payable to an underlying vendor of the Property to Malabar.