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July 6, 2017

Dear Fellow Shareholders,

We are very pleased to provide an update on Mexican Gold and its planned initiatives for the remainder of 2017. Since the start of the year, Mexican Gold has undertaken an aggressive financing and exploration program with the goal of unlocking the value of the Las Minas property and positioning the company for additional exploration success. These initiatives improved the corporate balance sheet, resulted in new discoveries at Las Minas, secured ownership of the property, and funded the commencement of an initial mineral resource estimate for the El Dorado/ Juan Bran and Santa Cruz zones. We believe Mexican Gold is now poised for additional success based on the positive results achieved to date, the pending release of the initial mineral resource estimate and our upcoming exploration programs.

Significant milestones achieved since the start of the year include: 


  • Raised aggregate gross proceeds of $3,647,081 in the equity markets with two successful financings.
  • Completed a debt settlement totalling $478,910.22.
  • Palisade Global Investments became a major shareholder with 16.87 % ownership on a non-diluted basis.


  • Completed a 3,000 metre diamond drill program at the El Dorado/Juan Bran and Cinco Senores zones. 
  • Infill/extension drilling at the El Dorado/Juan Bran zone expanded the zone and intersected mineralization.
  • Step-out drilling at the Cinco Senores zone intersected mineralization indicative of a potential parallel zone similar to the El Dorado/Juan Bran zone.
  • Sampling at the Pueblo Nuevo vein system yielded positive results and the discovery of a parallel vein.

Initial Mineral Resource Estimate

  • Initial mineral resource estimate currently underway for the El Dorado/Juan Bran and Santa Cruz zones and is scheduled for completion by late July.

Property Ownership

  • Completed definitive purchase agreement to acquire a 100% interest in the Pepe, Pepe Tres and San Jose concessions.
  • Acquired a 100 % interest in the Pueblo Nuevo and La Luz 1 concessions.
  • Mexican Gold owns 100% of the San Valentine concession.

Moving forward …

Mineral Resource Estimate

The second half of 2017 will see the completion of an initial mineral resource estimate for the El Dorado/Juan Bran and Santa Cruz zones, two of eight known mineralized zones at Las Minas. In April 2017, John T. Boyd Company, Mining and Geological Consultants, was engaged to complete the mineral resource estimate. The report is well advanced and scheduled for completion in late July. It is important to note that the mineral resource estimate is for only two of the eight known mineralized zones at Las Minas. Both zones remain completely open for expansion.  The planned upcoming 3,000 metre drill program is designed to further expand the mineralized zones at El Dorado/Juan Bran.

Geophysical Survey and More Drilling at Cinco Senores

One of the highlights of the Phase 1, 2017 diamond drilling program was the exciting intercept of 10.8 g/t gold, 41.7 g/t silver and 2.8% copper  in step- out hole LM-17-CS-04 drilled at Cinco Senores – see press release May 15, 2017. The hole, which intersected strong chalcopyrite mineralized magnetite at the targeted skarn elevation, is believed to be indicative of a potential El Dorado/Juan Bran type zone at Cinco Senores. As part of the Phase 2, 2017 exploration program, both ground magnetic and TDEM (time delay electromagnetic surveys) will be carried out at Cinco Senores to identify high priority drilling targets. We are excited about the potential for outlining a parallel El Dorado/Juan Bran type zone at Cinco Senores. Expansion of the known mineralized zone at Cinco Senores has the potential to increase the mineral resource at Las Minas.

Field Exploration Program at Pueblo Nuevo

The recent initial field exploration program at the Pueblo Nuevo concession, consisting of mapping, trenching, and sampling, was successful in identifying gold bearing veins. Sampling results included 19.09 g/t gold and 10.6 g/t silver over 0.72 metres at the Tamiagua 1 vein – see press release dated May 31, 2017. A new vein located parallel to the Tamiagua 1 vein was also discovered. The vein appeared to have been extensively mined. The consistent strike orientation of the veins at Pueblo Nuevo is suggestive of the potential for a series of parallel veins. The planned upcoming field exploration program will focus on trenching, sampling and mapping to extend the known veins as well as discover new parallel vein structures.

Field Exploration Program at Santa Cruz Zone

The Santa Cruz zone, which is characterised by high-grade drill intersection over significant widths, remains open for expansion. Recent field work identified highly mineralized boulders dislodged from the area above the drill sites. Additionally, in-situ mineralization has been identified in the upward extension area of the known mineralized zone. The area is also the site of a large magnetic geophysical anomaly. A field exploration work program, including trenching, sampling and mapping, will be carried out to identify the upward extension of the Santa Cruz zone. We believe the Santa Cruz zone has significant expansion potential.

Best regards,

Ali Zamani, Chairman

Brian Robertson, President  & CEO

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This letter includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about the timing for completion of an initial mineral resource estimate at Las Minas, magnitude or quality of mineral deposits, anticipated advancement of mineral properties or programs, future operations, results of exploration, prospects, commodity and precious metals prices, future work programs, anticipated financial and operational results, capital expenditures and objectives and the completion and timing of mineral resource estimates. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in Mexican Gold's disclosure documents available at There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this letter is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. Mexican Gold disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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