Mr. Gordon Aldcorn reports

THE ARCO DE ORO TARGET -- THE "ARC OF GOLD"

San Lorenzo Gold Corp. has provided stakeholders a summary of its Arc of Gold target. The target is located within its flagship Salvadora property in the mega-porphyry belt of northern Chile.

Summary

San Lorenzo's Arco de Oro -- or Arc of Gold target is a "hidden gem" located within the boundaries of San Lorenzo's 86.6-square-kilometre Chilean Salvadora property.

The Arc of Gold, as San Lorenzo's management refers to it, runs from the mid-southern edge of the Salvadora property boundary to the upper the northwest property boundary -- a distance of approximately eight km.

Historically, abundant shallow surface artisanal mining has occurred on the Arco de Oro trend as well as deeper mining from adits at the historical Santa Cecilia mine located in the northwest quadrant of the trend. The Santa Cecilia mine is reported to have produced significant amounts of high-grade gold. Numerous shallow surface artisanal workings are evident all along the trend -- in the upper oxidized layer of the system. Those workings serve to delineate the curved feature of the Arc very well and, of course, guided San Lorenzo's exploration efforts that consist of sampling, IP and drilling.

Due to budget constraints, San Lorenzo has only drilled a small part of the Arco de Oro trend to date. Those efforts were focused generally in the middle of the trend -- in the general area where the Feliz Retiro trenches are located. Surface and mine trench sampling conducted by San Lorenzo returned significant gold grades. Those grades and the type of associated alteration motivated a limited IP program and the drilling of five holes in total.

Every one of the five holes encountered mineralization with very significant grades of gold together with copper and silver. Importantly, the last hole drilled, which was a stepout to the northwest, targeted the vein system at a significantly deeper depth than the first four holes. That last hole intercepted the system at a vertical depth of 290 metres confirming that the veins evident at surface continue to a significant depth -- at least in the area of that hole. The hole encountered disseminated and semi-massive sulphides. It cut 22.5 metres of mineralization that would be considered significant in that gold grades averaged 4.74 grams per tonne over 22.5 metres. However, within that interval, grades of 16.27 g/t gold over 6.5 metres were obtained and within that was a high-grade core zone that cut 58.18 g/t gold over 1.5 metres. Interestingly, the disseminated to semi-massive pyrite and chalcopyrite were entered at a depth 160 metres in an area where San Lorenzo's IP shows an interesting conductivity anomaly.

San Lorenzo is pleased with the results of that hole that confirmed the significant depth potential of the system.

General discussion

The Arco de Oro target is a belt of multiple vein systems that trend in a curved SE (southeast) to NW (northwest) orientation. This belt is characterized by multiple epithermal veins that are evident at surface. Surface artisanal workings have been extensively sampled at surface and within shallow artisanal trenches. That sampling, combined with drilling conducted by San Lorenzo, has confirmed a strike length of over two km so far. The curved trend features the Santa Cecilia mine in the NW quadrant of the trend. Over all, within the San Lorenzo's Salvadora property boundary limits, the Arco de Oro trend has artisanal mining evident at surface for over five km.

The trend features many individual vein systems that are several to tens of metres wide within a belt that is up to 500 metres wide in areas. Drilling has established high-grade core zones within individual systems. Those grades, when combined with mineralization encountered in wall rock, may provide overall grades that make the system bulk mineable. San Lorenzo notes that its limited drilling has not established that to be the case as of yet.

The most recently drilled hole on Arco de Oro -- SAL 04-22 -- was designed to test the system at depth. San Lorenzo was pleased that that hole cut semi-massive sulphides and returned intercepts with excellent grades. Results confirmed that in that area, the vein system extends to a depth of at least 290 metres. This was a significant achievement for San Lorenzo as it provided yet more evidence to management that Arco de Oro hosts a mineralized system over a long strike length that extends to depth which presents a combination of scale and grade that may allow San Lorenzo to build a significant high-grade gold resource -- with copper and silver included that will contribute to the economics of mining in the future.

Prior sampling

Surface soil geochemical sampling has returned strongly anomalous gold values over the majority the Arco de Oro trend.

Surface rock chip samples taken from old workings and outcrops along the vein systems range from 8.2 g/t Au and 15.5 g/t Ag over 0.9 metre all the way up to 154.5 g/t Au and 18.2 g/t Ag over 1.3 metres -- again, at surface.

Prior mining

Until as recently as 2014, mining on the Arco de Oro trend occurred from an adit at the Santa Cecilia mine from which the owners reported production of high-grade oxide ore containing up to 20 g/t of gold. It is located on trend 900 metres to the northwest of the last hole -- SAL 04-22 -- drilled by San Lorenzo. Management of San Lorenzo considers it very reasonable that continued drilling on trend for 900 metres toward the Santa Cecilia mine -- at both shallow and deeper depths on lands 100 per cent owned by San Lorenzo -- may yield a substantial increase in the established strike length of the mineralized system. Continuing onward past the Santa Cecilia mine in a northwesterly direction, the trend continues for approximately three more kilometres until reaching San Lorenzo's property boundary -- again with artisanal mining evident along the trend. Management is of the opinion that San Lorenzo has the potential to define a substantial resource at Arco de Oro by virtue of the long strike length and having now confirmed that in at least one area, the vein system extends down to at least 290 metres. Management is also of the view that continued drilling to the southeast of hole SAL 04-16 -- the southeastern most hole drilled by San Lorenzo to date and where long sections of surface artisanal mining are evident -- is also warranted in that it has the potential to significantly extend strike length in that direction as well -- by as much as two additional kilometres until the property boundary is reached. It is intended that drilling, when conducted, will target the vein system in the shallower oxidized area and at depth as well -- with at least one hole targeting the system at depths deeper than 290 metres.

Prior drilling

The three drilling programs carried out to date involved just five holes. Three of the holes were over 400 of strike in the Feliz Retiro vein system and cut high grade gold-copper-silver mineralization grading 4.55 g/t Au over seven metres to 11.69 g/t Au over three metres at vertical depths from 50 to 75 metres. A fourth hole focused on the parallel Arco Primero vein system and retuned an intercept of 9.95 g/t Au over two metres. Included in that two-metre interval were significant copper grades of 0.47 per cent and silver grades of 12.7 g/t. The fifth hole, which was the most recent hole, was a stepout on the Feliz Retiro system to the northwest which targeted the vein system at a much deeper depth. The objective was to determine to what depth the vein system evident extended down to. That SAL 04-22 hole cut semi-massive sulphides at a depth of 290 metres from surface after having encountered disseminated to semi-massive pyrite and chalcopyrite beginning at 160 metres of vertical depth. The mineralization encountered in hole SAL 04-22 coincides with the conductivity anomaly identified by San Lorenzo's IP.

Regarding grades, it is management's view that the grades encountered on the Arco de Oro trend would be generally regarded to be very economical to mine and San Lorenzo may be able to report a large-scale resource on the Arco de Oro with more confirmatory drilling needed to meet National Instrument 43-101 disclosure requirements.

The attached table highlights the mineralized intercepts from the five holes drilled to date by San Lorenzo on Arco de Oro.

Prior geophysics

San Lorenzo has completed limited IP over the Arco de Oro system. That survey, completed over the southeastern 60 per cent of the Arco de Oro trend, identified a moderate to strong underlying chargeability anomaly from 150 m depth which is open at depth and to the northwest. The sulphide zone intersected in hole SAL 04-22 coincides well with the chargeability anomaly.

About San Lorenzo Gold Corp.

San Lorenzo Gold is involved in the exploration and advancement of mineral properties in the Mega porphyry Cu-Au and the Costal IOCG (iron-oxide-copper-gold) belts of Chile. The Salvadora property is located in the Mega porphyry Cu-Au belt and is being explored for large-scale copper-gold porphyry deposits and high-grade epithermal gold-silver-copper vein type deposits.

The company has two other properties: Nancagua, a high-grade mesothermal gold-silver prospect, and Punta Alta, a copper-gold-silver-cobalt prospect with related disseminated and vein style copper-gold-silver-cobalt mineralization in the Coastal IOCG belt.

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