Lone Star Gold, Inc. is an exploration-stage company. The Company is engaged in the business of gold and mineral exploration, acquisition and development. The La Candelaria property covered by the Concessions is located approximately 125 miles southwest of the city of Chihuahua, Mexico, in the municipality of Guachochi. The Tailings are located in the town of San Antonio del Potrero, Mineral de Jal, consists of approximately 75 hectares. The Tailings pile is approximately 200 meters from a paved state highway in San Antonio del Potrero. The Tailings pile is registered with the San Antonio Ejido and the city of Hidalgo del Parral. The Company’s consultants have estimated that the Tailings weigh 1.2 million tons. The Company’s consultants derived the factor of 1.25 tons of material per cubic meter by weighing trucks filled with the Tailings material.