As part of Farallon's commitment to responsible mining, a high level of environmental planning and awareness has been maintained during all of the Company's activities at Campo Morado. In addition to routine air, meteorological and water quality monitoring (groundwater, surface and potable), a comprehensive environmental plan has been approved by the Mexican authorities. Farallon is working under the supervision of the National Program for environmental auditing -- "programa nacional de auditoria ambiental" -- to obtain clean industry certification. The Company's environmental team is led by an individual with 20 years of experience in environmental management, two forestry engineers and one agronomist.

Furthermore, Farallon has been steadfastly carrying out reclamation activities at old drill sites and roads. More than 30 kilometers of roads and 114 drill sites have been reclaimed using native plant species grown in nearby nurseries. The Company is in the process of developing an astonishing 100,000 tree nursery, the products of which will be used during the next rainy season for reforestation projects and for distribution to local communities in the region. Other environmental initiatives currently underway include water and soil conservation projects.