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Garibaldi Resources Hi-Tech Exploration Strategy

Garibaldi Resources Corp.'s new management group targeted Mexico's prolific Sierra Madre mineral belt as the best place to focus a novel exploration strategy based on newly-emerging remote sensing technology in early 2005. Aside from the low country risk and Mexico's 500-year history of resource extraction, a series of world class discoveries in the preceding decade evidenced the reality that many underexplored mining districts in Mexico, which had never had any modern exploration, were emerging as potential hosts for large bulk tonnage epithermal gold and silver deposits. This fact and Mexico's low foliage, desert-like environment allowing for greater surface exposure of outcrop, perfectly suited the first generation of commercially available and cost effective spectrometers, putting NASA technology within the reach of junior exploration company budgets for the first time ever.

Most of the major discoveries in Mexico since 1995 have significant alteration features in common, and these zones of advanced alteration are visible from a new satellite imaging platform called the "Advanced Space borne Thermal Emission and Reflection Radiometer" (ASTER). Launched by NASA, "ASTER" first went live in 2000. In general, many people in the exploration industry equate modern remote sensing with the crude Landsat technology of the early 1980s, but as surely as there is constant progress and advancement in technology, the newest remote sensing applications are quantum leaps over anything that came before. In early 2006, Garibaldi's management team made a decision to commit to a strategy that would redefine how a junior resource exploration company prioritizes its acquisition, exploration and development strategy, weighing heavily on the balance of probabilities with cutting-edge technology.

By the end of 2007, Garibaldi had acquired over 300,000 hectares of strategically located concessions in the Chihuahua, Sonora and Durango states. All of the company's projects covered broad areas of alteration in key mining districts in Mexico and MacDonald Dettwiler's and Associates had introduced Garibaldi to HyVista Corporation of Australia to contract a fixed wing hyperspectral survey of its properties. HyVista's spectrometer has 128 bands across the reflective solar wavelengths, and can discriminate between the unique spectral signatures of specific mineral suites, since no two minerals have the same spectra. Garibaldi would fly a high resolution fixed wing hyperspectral survey over the alteration zones on its concessions that were originally defined by low resolution satellite ASTER imaging to further define the mineralogical constituents of each anomaly. The strategy required capturing the hyperspectral images of a number of known deposits in each mining district, compiling a library of comparative signatures against which to prioritize exploration on Garibaldi's ground.

After a significant delay in acquiring permitting from aviation authorities, Garibaldi completed the first high resolution fixed wing hyperspectral survey by a junior exploration company in Mexico in June of 2008. The processing of raw data was completed by the end of 2008, and the analysis of this data will continue throughout 2009 and 2010. The volume of data is immense, and unfortunately these milestones did coincide with the greatest global financial turmoil in living memory. Garibaldi will now initiate a program of ground truthing to prioritize or eliminate targets, and reduce its vast land position down to project areas around hyperspectral target anomalies, to develop a pipeline of projects to joint venture to other companies. Garibaldi owns its own NQ diamond drill and where the target is attractive enough to potentially define a company-making deposit, Garibaldi will drill test such high priority targets

The end results have generated multiple targets over the company's district scale land holdings that require "boots on the ground" follow up, but Garibaldi believes that its exploration protocol has saved its shareholders a significant amount of time and money by utilizing technology that is just entering commercial availability. Actions always speak louder than words; since Garibaldi's first exploration program in Mexico began in early 2006, management has achieved the following:

• Acquired one of the largest strategic land packages by a junior in Mexico's Sierra Madre.

• Raised over $5,000,000 and launched the first hyperspectral survey by a junior exploration company in Mexico.

• With Garibaldi's first transaction in Mexico, the company acquired 6,000,000 shares of Paramount Gold & Silver and $400,000 USD by selling Garibaldi's interest in the Temoris project.

• Recovered half of the cost of the hyperspectral survey by selling proprietary data to Paramount Gold & Silver, Coeur d'Alene Mines Corp. and Agnico-Eagle Mines Limited.

• Implemented Garibaldi's "Rapid Assessment Protocol" saving shareholders millions of dollars in exploration costs in the development of a portfolio of projects that management believes is an exceptional leveraged exploration opportunity.

All of this was accomplished after experiencing a year's delay in launching the hyperspectral survey, as well as surviving a global financial meltdown that began in 2008 and continues to generate turmoil in our capital markets. Still, because of the application of modern technology, much has been accomplished during the last 36 months in Mexico and as risk aversion abates Garibaldi's management looks forward to the challenge of unlocking value in the pipeline of projects generated with these new hi-tech tools. Indeed, Garibaldi is investigating the next generation of spectrometers that promise even greater resolution and bandwidth with which to hunt for the next great discovery.