Location

The 13,350 hectare Santa Cruz Project in Durango Mexico is located in the western flank of the Sierra Madre Occidental Volcanic Province, a polymetallic belt that hosts several operating and past producing gold and silver mines. Santa Cruz is located approximately 170 km northwest of the Durango City in the Municipality of Ortaez, at an altitude of 1,500m above sea level.

Goldcorp's San Dimas epithermal gold-silver mine is one of the most significant precious metal deposits in Mexico. District-wide historical production is estimated at 655 million ounces (Moz) of silver and 9.33Moz of gold, confirming it as a world-class epithermal mining province. Fresnillo Plc's Ciénega mine, which produced an estimated 1.2Moz of silver in 2010*, is approximately 50km northwest of Santa Cruz. The Metates deposit (Chesapeake Gold Corp, TSX:CKG) is located 25km northwest of Santa Cruz and is one of the world's largest undeveloped gold-silver resources with 24.5Moz of gold equivalent ounces in the measured and indicated resources, and 3.6Moz in the inferred category.**


Climate

It is possible to work all year round at Santa Cruz. The climate is typical for the northern Sierra Madre Occidental with a distinct hot and wet season from June to September when daytime temperatures can reach up to 35oC, followed by a cooler dry season from October to May.


History

Mining at the historic Santa Cruz underground mine, located in the central part of the District dates back to the late 1700's, and exploited a rich ore shoot that extended to at least 300m over 17 levels. Production has occurred intermittently over the years by private companies, so accurate production statistics are unavailable. The property infrastructure includes a 50 tonne per day flotation plant at the Santa Cruz mine which is currently being used to process small scale production from the El Padre vein by the current owners, a local Mexican mining company.

Two types of ore were extracted historically; a tennantite/tetrahedrite-rich copper-gold-silver ore, suitable for direct shipping was hand cobbed without the need of processing through the flotation plant. This very high grade material assayed in the range of 30% copper, 3,200 g/t silver and 27 g/t gold. The remaining silver-gold sulphide ore was sent to the flotation plant for processing.

In 2005, Minco plc carried our 2,700m of drilling in the central and eastern part of the District, including four holes at wide spacings along the La Fragua-Orozco structure over a strike distance of 1.8km. All holes intersected mineralization, including narrow, high grade and wider, low grade disseminated intervals; e.g. 464 g/t Ag + 0.12 g/t Au + 2.71% Zn over 3.0m in Hole SC-2, (112m-115m), and 42.9 g/t Ag over 58m in Hole SC-8 (319m - 377m).

Historic Drill Intercepts -- San Pablo -- La Fragua -- Orozco (Minco 2005)


In April 2009 Orex Minerals completed a 12-hole drill program (3,063m) in the western part of the property along the historic Zambranena vein. Results were generally inconclusive for bonanza Au-Ag, however most of the drillholes intercepted breccia zones associated with stockwork and fault zones of which the northern-most hole -- SC-09-08 drilled 62.6m @ 42.1 g/t Ag, 0.3 g/t Au from 213m depth.


Geology and Mineralization

The Santa Cruz mining claims were previously described as a system of high-grade epithermal silver veins and breccias extending over a strike length of at least 9km, historically termed the West, Central and Eastern Districts. Focus' program is concentrating in the poorly explored central and eastern part of the Santa Cruz district where precious metal mineralization is typically hosted in breccias emplaced along a ENE trending corridor over 6 km long. Silver, gold and base metals are associated with mainly argentite, electrum and sulphosalts, with banded and smoky quartz (e.g. El Padre) along structures. Focus' work to date has allowed a re-interpretation of the mineralizing model at Santa Cruz and recognition of both high grade and bulk-style precious metal mineralization components over the claims.

An important part of Focus' evaluation strategy is the compilation of all available historic data into digital format. Field work currently underway includes 1:5,000 scale geological mapping, trenching, rock sampling and a grid-based soil geochemical survey. Approximately 5,300 rock, historic core and soil samples were analyzed by a portable spectrometer allowing alteration mapping characteristics to be mapped and interpreted. Fieldwork is ongoing and a drill program planned for Q2 2012.

A non-NI 43-101 geological field report on the structural geology at Santa Cruz by Telluris Consulting, a U.K. based Consulting firm specializing in structural geology, is available by clicking here.


San Pablo - La Fragua -- Orozco Trend

Silver and gold mineralization with minor copper and zinc can be traced over at least 2.2 km in surface rocks, old workings, soils and historic drillholes, as multiple ENE-trending shear zones hosting stockwork, disseminated and fine grained breccias with individual widths of up to 30m. Advanced argillic alteration consisting of dickite, kaolin and pyrophyllite occur in surface outcrops and drillcore with minor copper as tennantite.

Assay data from four holes drilled in 2005 to test for bonanza vein style mineralization at San Pablo, Las Trojas and Orozco was compiled. Although the Minco drilling was widely spaced and did not adequately test the across the complete width of the corridor, important mineralized intercepts were drilled in all holes (see Table above).

At the El Arbolito/La Fragua end of the San Pablo- La Fragua - Orozco trend in the vicinity of drillholes SC-5 and SC-8, mineralized surface outcrops, soil and trench samples have highlighted an area at least 200m wide and some 600m in length and open to the east and west. A total of 26 rock samples of brecciated, stockworked and andvanced argillic altered andesites (dickite-kaolinite-pyrophyllite) with mainly disseminated sulphides averaged 118 g/t Ag and 0.51 g/t Au (values from 13 - 539 g/t Ag and trace to 4.57 g/t Au, with copper and zinc assays up to 4.7% and 2.8% respectively. A trench dug immediately south of the main workings at La Fragua adjacent to a soil anomaly assayed 65.8 g/t Ag and 0.22 g/t Au (values very consistent in Ag between 30.5 g/t and 163 g/t Ag). The location of the trench is more or less consistent with the surface projection of the mineralized interval drilled in the last part of hole SC-8, which intersected 58m @ 42.9 g/t Au from 319 - 3778m depth hosted within a stockworked porphyritic dacite.

In the south-west of the corridor around historic holes SC-1 and SC-2 (Las Trojas) surface rock sampling of hydrothermal brecciated and stockworked andesites analogous to La Fragua assayed from trace to 59.2 g/t Ag and trace to 0.83 g.t Au. Pink, crystalline alunite was observed in the upper weathered profile of holes SC-1 & 2 and possible represents the remnants of a now-eroded advanced argillic lithocap.

This area is high priority for further trenching to test the strong silver in soil anomalies immediately south followed by drilling.


Don Blas Area

The Don Blas area is characterized by a large area of argillic alteration in andesites approximately 1km to the south east of the La Fragua area along a steeply incised valley. A strong silver in soil anomaly occurs in the south of the area which is some 600m long (across with up to 35 g/t Au in soils. Three historic holes were drilled in the northern part of area in an area of relatively weak silver soil geochemistry with no significant intercepts reported. Trenching by Focus in the south and north of the anomaly gave 12m @ 34.7 g/t Ag and 6m @ 445 g/t Ag respectively. Further trenching and drilling is required to test the strong soil anomaly in the south of the Don Blas area.


El Padre

The El Padre ENE trending vein-breccia is a new discovery located 1.4 km to the east of Don Blas that is undergoing small scale, artisanal production by the claim owners, a local Mexican mining company. Focus geologists have traced the structure for over 1 km on surface by outcrops, soil anomalies, trenches and old workings. Sampling of underground tunnels by Focus over 230m along strike of the structure has returned high grade assays over widths from 0.5 up to 3m.


Sample Highlights


As in other parts of the property, the host unit at El Padre is a hydrothermal breccias developed in argillized andesites, with the "vein" reflecting a post-mineral fault structure. Drilling is planned to test the depth continuity of the high grade and also for lower grade disseminated potential in the breccias.

Trenching and soil sampling to the north of El Padre recognized several parallel structures (El Padre Norte) These require further ground definition and drilling. One such trench some 600m west of El Padre yielded 8m @ 3.75 g/t Au, including 2m @ 8.42 g/t Au. Other high priority targets include a 40 -- 100m wide >1,000 ppb silver in soil anomaly that occurs over 1.2km strike length (4 soil lines) that occurs 1km to the north of el Padre along a parallel structure.


Rest of Claims

A regional exploration program is also planned to assess other satellite targets adjacent to and within the property boundaries of this extensive land package.


Agreement

Under the terms of the Agreement with a local Mexican mining company, Focus has the option to acquire 80% of the Santa Cruz Project by defining 15Moz of Silver Equivalent resources in the Inferred Category within 4 years, and by paying the owner a total of $20,000,000 cash, of which $40,000 is payable on signing of the agreement (paid), and $20,000 is payable every 6 months while the option is outstanding. Upon exercise of the option, Focus must pay the owner the remaining cash balance owing and grant the owner a 3% NSR on future production. The Agreement also grants Focus right of first preference to the historic Santa Cruz and Zambraneña mines (201 hectares) located in the west and central parts of the Santa Cruz Project. A finder's fee is payable of consisting of US$15,000 cash (paid) and the issuance of up to 3.0 million warrants exercisable at a price of CAD$0.30 for a period of 5 years. The majority of the warrants may not be exercised until Focus has exercised its option to acquire the property.


Qualified Person

The above scientific and technical information was prepared under the supervision of Mr. David Cass, Focus's President, who is a member of the Association of Professional Engineers and Geoscientists of British Columbia, and a "Qualified Person" in accordance with NI 43-101.


Sampling Quality Analysis and Quality Control

Focus' samples were prepared at ALS Chemex' preparation facility in Zacatecas and analyzed in Vancouver, Canada. Silver was determined by multi-acid digestion and ICP-AES, with fire assay gravimetric finish. Gold was assayed by Atomic Adsorption Spectrometry with fire assay gravimetric finish. Lead and zinc were determined by ICP with Atomic Absorption with volumetric finish. ALS Chemex's quality control system complies with International Standards ISO 9001:2000 and ISO 17025:2005. Analytical accuracy and precision are monitored by the analysis of reagent blanks, reference material and replicate samples. Quality control is further assured by Focus's own QA/QC program which involves the insertion by Focus personnel of blind certified standards and blanks into the sample stream at regular intervals in order to independently assess analytical precision and accuracy of each batch of samples as they are received from the laboratory.



* http://www.fresnilloplc.com/operations.aspx
** Refer to Sedar: June 4, 2010 Technical Report NI 43-101, compliant resource estimate prepared by Independent Mining Consultants of Tucson, Arizona). Equivalent Gold= Gold+Silver/65 Measured Resource: 216, 199 ktonnes @0.923 g/t Eq Au; Indicated Resource: 719,938 ktonnes @ 0.775 g/t Eq Au; Inferred Resource: 135,315 ktonnes @ 0.821 g/t Eq Au.