Metallica Resources Inc. is a gold and silver producer focused on the exploration and development of precious and base metal properties throughout the Americas. The Company has two principal mineral properties: the 100%-owned Cerro San Pedro gold and silver project in Mexico and the 30%-owned El Morro copper-gold project in Chile. The Cerro San Pedro project contains estimated mineral reserves of 85.8 million tons grading 0.55 grams per ton gold and 22.5 grams per ton silver at a waste-to-ore ratio of 1.26 to 1. This equates to 1.5 million ounces of gold and 62.1 million ounces of silver. Construction of the process plant and related facilities for the Cerro San Pedro project is substantially complete. Commissioning of the process plant began in January 2007. The El Morro project is subject to an exploration agreement with Xstrata Plc, which allowed for Xstrata to earn a 70% interest in the project. It also provides that Xstrata must complete a feasibility study by September 14, 2007.