About Midasco Capital

Midasco Capital Corp. is a publicly traded exploration and development company, based in Vancouver, British Columbia. Midasco has elected to concentrate it’s gold exploration efforts in the Republic of Colombia, with the acquisition of seven (7) exploration licenses (“Titulos”) covering approximately 10,000 hectares in the southern portion of Bolivar State.

We entered into an Option Agreement dated April 11, 2011 (the “Option Agreement”) with two private Colombian individuals (the “Titleholders“) to purchase 100% interest in seven mineral licenses covering approximately 10,000 hectares in the southern portion of the State of Bolivar, Colombia. Southern Bolivar is located on the Serrania de San Lucas, the northern foothills of the Cordillera Central of Colombia and has geological continuity with the mining districts of north-eastern Antioquia. Southern Bolivar is recognized as an important mining district, with more than 10,000 mines and artisanal operations.

Several active mines with significant mineralized structures are known to continue onto several of the licenses to be held by us. The area surrounding these licenses has an extensive history of vein-type as well as alluvial gold mining. No systematic exploration has ever been carried out over the area.

On August 23, 2011, a formal Payment Agreement was reached with the Secretary of Energy and Mines for the Government of the State of Bolivar to bring current the Surface Canon arrears and to make all the regulatory filings (PTO’S, EIA’s and Insurance documents) on each license. To transfer a 100% interest of the seven licenses, the Company agreed to pay approximately COL$1,013,901,317 or approximately $537,415 as follows:  35% of the total cost of the surface right fees in arrears by September 23rd, 2011 (paid – $192,114), an additional 21% within 6 months after the first payment (paid – $121,231) and the remaining 44% within 3 months following the second payment.  Under the Payment Agreement the Company made the first two payments directly to the bank account of the State of Bolivar and requested the transfer of the first four licenses. The remaining payment due was not accrued nor paid because the Titleholder failed to cooperate with facilitating the transfer of the first four titles and the Secretary of Mines Bolivar refused even after many false promises to transfer the licenses for these first two payments.

In April 2012, we received notice from the Titleholder of the seven licenses under the Option Agreement that he was unilaterally terminating the agreement due to non-payment of certain monies due to him under the Option Agreement.

Through our law firm Colombian legal counsel, we notified the Titleholder that we would honour the payments under the Option Agreement and Payment Agreement should he assist us in having the titles transferred to the Company. The Company also notified the Titleholders that it would seek arbitration under Clause 13 of the Option Agreement and seek an order instructing the Secretary of Mines, Bolivar to affect the transfer of titles 582, 583, 269 and 585.  The Company has also asked the Canadian Embassy for assistance in dealing with the promises made by the Bolivar government under the Payment Agreement. Should the Company be successful in having the titles registered in our name, a contingent liability may exist for the transfer of these titles.

Details of the License Area

The Cerro Largo Project is located in the Monte Cristo Tiquisio area and comprises licenses 269, 270,271 & 272 covering approximately 4,893 hectacres.  According to the latest census conducted in this area there are about 600 gold mines and around 3,000 people working theses mines. Several have legal licenses while others are operating small illegal operations.

The Rio Caribona Project is located in the Cinnamon Zone of the Santa Rosa Canelos area and comprises licenses 582, 583 and 585 covering approximately 5,183 hectacres. There are several mines operating in this area, with the Mina Penon and Mina Walter directly adjacent to license 583. Anglo Ashanti adjoins the western border and HudBay Minerals has an interest on the north-east border of 583. Also Mineros S.A. (the largest mining company in Colombia) has a license bordering 585.  During our first property visit the geological crew identified two main structures and obtained 25 samples from vein workings covering an area 1500 m in length and 400 m in width. Of the 25 samples fire assayed 8 samples assayed over 1.0 g/t gold (SMI-S-001 – 69.38 g/t gold, SMI-S-002 – 11.81 g/t gold, SMI-S-009 – 8.63 g/t gold, SMI-S-010 – 6.84 g/t gold, SMI-S-020 – 3.42 g/t gold, SMI-S-023 – 4.24 g/t gold, SMI-S-024 – 4.53 g/t gold and SMI-S-025 – 1.11 g/t gold)

Southern Bolívar is located on the Serrania de San Lucas, northern foothills of the Cordillera Central of Colombia and is the geological continuity of the mining districts of northeastern Antioquia, which has become a “potential gold mine” for serious exploration companies seeking to invest in this region.