COSIGO SHAREHOLDERS,

Recently we released the assay results from our initial drill program on the Machado Project in southeastern Colombia. Seventeen of our twenty drill holes intersected gold mineralization. Several of these intersected high-interest gold mineralization such as:

13.72m of 2.53 g/t Au in hole 13MR018,
3.04m of 17.19 g/t Au in hole 13MR007 and
21.34m of 1.11 g/t Au in hole 13MR001.

An additional dozen drill holes had intercepts of greater than 1 g/t Au.
(See Cosigo News Releases dated December 20, 2013, January 27, 2014 and February 4, 2014).

Since releasing the assay results, our share-price performance has very much reflected the mood of the resource markets. We are currently experiencing some of the most challenging times on record for the exploration and mining industry. Countless junior companies are fighting for survival while many of the majors have ceased their exploration activities after suffering widespread write-downs and impairments. While I empathize with our shareholders, who are feeling the pressure of a falling share price, I would point out that we view our assay results as very encouraging and this view is shared by many exploration geologists in the industry.

Although interpretation is still ongoing, our results indicate that the Machado Project is underlain by wide-spread strata-bound gold mineralization. This is supported by our earlier MMI (Mobile Metal Ion) survey, which showed a 5 km long zone of anomalous gold at the centre of our property. As many of you likely know, the significance of wide-spread strata-bound mineralization is the potential for a very-large deposit.

The Taraira Gold Belt is a new gold district. The exploration to date shows that Machado ridge is geologically similar to our North Traira (At Castanho ridge, 30 km N of Machado) and South Traira (At La Vera ridge, 20 km SE of Machado) projects on the Brazilian side of the border. In both of these areas, preliminary surface sampling has revealed high-grade, strata-bound, gold mineralisation over hundreds of meters of strike-length. Cosigo has secured exclusive rights to both areas through agreements with indigenous communities.

Our initial drill program at Machado was subject to numerous new environmental restrictions drawn up by the Ministry of Environment prior to the commencement of drilling. Our team is now working to obtain permits for a second, more comprehensive, phase of drilling on the Machado Project.

In Brazil, the communities and Cosigo are working to receive permits for a pilot exploration project, which would include drilling. With support from the State Government this project appears close to implementation. A bulk-sampling program for North Traira is planned for the near future.

Since the end of the initial Machado drill program, we have lowered our corporate burn rate in order to conserve capital as much as is practical and possible. Nonetheless, our continued exploration efforts will require additional funding. Against the sobering backdrop of the current market climate we are fortunate to have high quality projects with large-scale potential. We are currently considering both equity and/or asset financing alternatives.

On behalf of our teams in Canada, Brazil and Colombia, I wish to express our appreciation for your patience and support as we work to define what is potentially one of the largest unexplored gold districts in the world: The Taraira Gold Belt.

Sincerely,
Dennis W. Milburn
President & CEO
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