Etruscan Resources Inc. - Mali

Mali

Finkolo Gold Project Mali West Land Package

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Etruscan has been actively exploring in Mali since 2001. The Company has developed two principal land packages, one in Mali South and the other in Mali West which provide a comprehensive pipeline of projects and targets from early stage geochemical anomalies to 43-101 compliant resources under feasibility study. In Mali South, Etruscan is working in joint venture partnership with Resolute Mining Ltd. on the Finkolo Gold Project on the Syama Gold Belt, as well as exploring several earlier stage properties on its own. A feasibility study is currently underway on the Tabakoroni deposit on the joint venture ground which may provide satellite feed to the Syama Gold Mine (6 million ounces) which Resolute has put into production. The Mali West land package comprises over 500 km² and covers the southern strike extension of the favourable geological formations bordering the eastern contact of the Mali West Shear Zone which host the Sadiola gold deposit (14 million ounces) and in 2006, Etruscan announced the discovery of a new gold deposit at Diba on the poorly explored western side of the shear zone.

Finkolo Gold Project, Mali South

The Tabakoroni Deposit is located 30 km south of Syama and is under feasibility study.

Etruscan's most advanced project in Mali is on the Finkolo exploration permit located in Mali South approximately 300 kilometers southeast of Bamako. The Finkolo permit is contiguous with the Syama holdings of Resolute Mining Ltd. which hosts the 6 million ounce Syama Gold Mine. Resolute has earned a 60% interest in the project and is managing and funding the exploration and development programs on the joint venture holdings. Under the terms of the joint venture agreement Resolute must fund all costs of the joint venture until production of a feasibility study and Etruscan will reimburse Resolute from 50% of its share of future project cash flow.

Tabakoroni Deposit Resource

The latest 43-101 compliant resource estimate was provided in July 2009 on the Tabakoroni deposit and at a 0.5 g/t cutoff is summarized as follows:

Measured

Indicated

Measured & Indicated

Inferred

Tonnes
(m)

g/t

Oz (k)

Tonnes
(m)

g/t

Oz (k)

Tonnes
(m)

g/t

Oz (k)

Tonnes
(m)

g/t

Oz (k)

3.3

2.3

242

6.8

2.0

445

10.1

2.1

687

6.7

1.4

301

Feasibility Study

In 2008 a feasibility study was initiated on the Tabakoroni deposit to determine the optimal processing and mining options, including consideration of custom milling of Tabakoroni ore at the existing facility at Syama. Tabakoroni is situated 30 kilometers southwest of Syama. The Tabakoroni feasibility study is scheduled to be completed in the second quarter 2010.

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Mali West Land Package

In Mali West, Etruscan has over 500 km² that is contiguous with the Sadiola property of AngloGold Ashanti and IAMGOLD. It covers the southern extension of the Mali West Shear Zone along strike of the 14 million ounce Sadiola Mine in the Kofi Formation as well as prospective ground to the west in the Keniebandi Formation. The most important gold deposits in Mali West (Sadiola, Yatela, Loulo and Tabakoto-Segala) all occur in rocks of the Kofi Formation in proximity to the eastern boundary of the Mali West Shear Zone.

In the Keniebandi Formation, Etruscan made a significant gold discovery at Diba in 2006. Diba is characterized by disseminated gold in a broad low grade (0.1 to 0.5 g/t) halo over 20 to 50 meters in thickness with narrow bonanza grade intercepts of 60-900 g/t over 1 to 2 meters. Mineralization is hosted in an arkosic sedimentary package which is open downdip to the east. A number of reconnaissance holes northwest of the main deposit intercepted wide zones of low-grade gold mineralization in a series of intrusive rocks.

The discovery at Diba and subsequent confirmation by diamond drilling of similar mineralization 10 kilometers to the south at Kobokotosou has provided sufficient results to drill the remaining target in this land package at Keniebandi situated 30 kilometers south of Diba. Drilling at Keniebandi will be carried out in 2010.

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