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Property Tenure

Armadillo Resources agreed to purchase a 100% interest in the LD gold property in late July 2010 from a privately held group. The Company made an initial payment of $160,000, an additional $100,000 on September 24, 2010 and a final payment of $240,000 due on the completion of the next flow-through/non flow-through private placement to be participated in by associated parties. There will be a 3% NSR and the Company has the option of purchasing 1% of the NSR for $1,000,000.
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