VARVARCO: Neuquen, Argentina

ARGENTINA IN THE PROVINCE OF NEUQUEN: THE VARVARCO GOLD-VEIN AND GOLD-PORPHYRY PROJECT

INTRODUCTION

Rome Resources Ltd. concentrates its exploration activities in Argentina and Mexico (Fig. 1). Emphasis is on acquisition and development of copper, tungsten, silver and gold properties. The main project in Argentina is the Varvarco Gold Vein and Porphyry Project in the Province of Neuquen. The following summarizes the geological setting and recent exploration activities on the Varvarco Gold-Vein and
Gold-Porphyry Project in the Province of Neuquen, Argentina.

General information on exploration of these projects is available in News Releases, etc., that are available on SEDAR and at www.RomeResources.com; click “News”. Specifically, the web site gives detailed geological descriptions and assays from the main properties; click “Projects” and select project of interest. Additonal tables, maps, etc., detailing with property ownership, geology, geophysics, geochemistry and drilling also are available in Rome’s Annual Reports for 2006 and 2007; click “Annual Reports”.

Figure 1. Rome’s exploration focus includes the: (i) Varvarco Gold-Vein and Gold-Porphyry Project in Neuquen, Argentina, (ii) Inguaran Valley Porphyry Copper-Tungsten Project in Michoacan, Mexico, (iii) La Colorada Bulk Gold-Silver Project in Sonora, Mexico, (iv) Los Muertos Bulk Silver-Gold Project in Sonora, Mexico, and (v) Don Luis Bulk Silver-Gold-Tungsten Greisen-Porphyry Project in Sonora, Mexico.

ARGENTINA PROPERTIES: VARVARCO GOLD-VEIN AND GOLD-PORPHYRY PROJECT

The Varvarco Gold-Vein and Gold-Porphyry Project (Table 1 & Figs. 1 & 2) is centered on a circular caldera feature, apparent on satellite imagery. The property totals about 17,390 hectares consisting of claims of different types, as defined in Table 1. The village of Varvarco is adjacent to the southwest side of the property.

Rome’s Varvarco property, hosted mainly within Permo-Triassic volcanics and intrusives, lies within a major northwest trending regional belt that is host to several precious and base metal deposits. Detailed geochemical surveys, geophysical surveys and limited trenching have been completed on three areas: (i) Santos High-Grade Gold-Silver Vein System, (ii) Auque Breccia Pipe Gold Porphyry System, and (iii) Auque Cap Gold Porphyry System. All three areas are ready for reconnaissance drilling. A track to the Santos area has been completed by the company and with assistance from the government. However, the areas of Auque Breccia Pipe Gold Porphyry System and Auque Cap Gold Porphyry System are difficult to access. The government is planning a road into this area. This improved access will advance the project substantially and will facilitate a drill program.

TABLE 1: Rome Claims (Fig. 2) in the Varvarco Gold-Vein and Gold-Porphyry Project in the Province of Neuquen, Argentina.

Figure 2: Rome claims (Table 1) over the Varvarco Gold-Vein and Gold-Porphyry Property in the Province of Neuquen, Argentina. The Auque Breccia Pipe Gold Porphyry System, on the eastern part of the Karina Pertinecias, is coincident with the satellite anomaly in white.

SANTOS HIGH-GRADE GOLD-SILVER VEIN SYSTEM

Santos High-Grade Gold-Silver-Vein System, situated in the south-central part of the Varvarco Gold Vein and Porphyry Project (Fig. 2), is generally covered with soil. Mineralization exposed by old hand-workings consists of pyrite-quartz veins. Previously reported assays include: (i) a panel sample of 20.80 g/t gold (0.61 oz/ton gold), and (ii) grab samples of 47.68 g/t gold (1.39 oz/ton gold), 45 g/t gold (1.3 oz/ton gold), and 160.96 g/t gold (4.69 oz/ton gold) with more than 200 g/t silver (>5.83 oz/ton silver). Soil-grid geochemical values on the property locally yield up to 0.4 g/t gold (0.01 oz/ton gold).

The 3,000 meters of mainly hand-dug trenches on the Santos High-Grade Gold-Silver Vein System, established in February and March 2005, were located based on soil geochemistry, VLF and magnetometer geophysics. Geochemical values for gold from the Santos trenches, combined with earlier data, define at least two anomalous gold trends (Fig. 3).

Figure 3. Geochemical results from trenches and soils on the Santos High-Grade Gold-Silver Vein System in Neuquen, Argentina. A gold factor from soil samples (statistically combined gold, arsenic, antimony and tungsten) is marked with yellow diamonds. Gold values for chip samples are marked with yellow stars. Colored contours are surface soil gold values (red = >10 ppb, yellow = 3 - 10 ppb, green is 1.5 - 3 ppb, blue = 0.5 – 1.5 ppb, and purple = <1.5 ppb). Clusters of known showings occur on the grid at: (i) the center of the southeast half, and (ii) about 300 m northeast of the center of the southwestern side.

A minimum of four holes are proposed to evaluate the two major trends indicated in Figure 3. Track access, established with government assistance, will facilitate drilling.

AUQUE BRECCIA PIPE GOLD-PORPHYRY SYSTEM

Auque Breccia Pipe Gold-Porphyry System, in the central part of the Varvarco Gold Vein and Porphyry Project (Figs. 2 & 4), is dominated by an oval 1.5 kilometer long by 0.5 kilometer wide zone of gold-copper-molybdenum-bearing hydrothermal volcanic breccias (Figs. 5 to 7). Its main potential is as a bulk tonnage gold-copper-molybdenum deposit. The pipe area is clearly defined on satellite images as an anomalous zone that is markedly bleached in field observation. The following positive features of the Auque Breccia Pipe Gold-Porphyry System are apparent:

1. The area is on a major satellite-visible circular structure (Fig. 2).
2. The main area of interest is marked by intense alteration and bleaching that is also visible on satellite images (Figs. 2 & 4).
3. There are more than three areas of significant brecciation with major dimensions (Fig. 5).
4. The main induced polarization chargeability anomalies are coincident with a major andesite-breccia body, felsic breccias, and gold - copper anomalies (Figs. 6 & 7).

Figure 4. Proposed priority drill holes on the Auque Breccia Pipe Gold-Porphyry System in Neuquen, Argentina. View is looking south. DH5200-1 tests anomalous gold associated with illitic alteration (white--with known visible gold by panning). The other drill holes test breccia bodies associated with chargeability anomalies. (See Figs. 5 to 7.)

Figure 5. Proposed priority drill holes (Fig. 4) and geology at the Auque Breccia Pipe Gold-Porphyry System in Neuquen, Argentina. Yellow = rhyolitic ignimbrite. Blue = felsic breccia. Olive = andesite breccia. Bright green = andesite and related sedimentary rocks. Breccias with associated alteration, the prime exploration targets, intrude both the andesite and the overlying rhyolitic ignimbrite.

Figure 6. Proposed priority drill holes (Figs. 4, 5 & 7) and induced polarization chargeability anomalies on the Auque Breccia Pipe Gold-Porphyry System in Neuquen, Argentina. Gradient array of survey predicts causative depth to be approximately 250 m.

Figure 7. Proposed priority drill holes superimposed on gold and copper geochemical soil analyses on the Auque Breccia Pipe Gold-Porphyry System, in Neuquen, Argentina. Contoured data is soil copper. (See Figs. 4 to 6.)

Auque Cap Gold-Porphyry System occurs about two kilometers east of Auque Breccia Pipe Gold-Porphyry System (Fig. 2). It is marked by intense alteration consisting mainly of pyrophyllite (Figs. 8 to 10), which is locally anomalous in copper, molybdenum, gold and arsenic (Fig. 11). Induced polarization anomalies (Fig. 12) have been identified and drill targets for porphyry type mineralization have been proposed (Figs. 10 to 12).

Figure 8. View looking south of the alteration associated with the Auque Cap Gold- Porphyry System in Neuquen, Argentina. White alteration is dominantly pyrophyllite.

Figure 9. Pyrophyllite-dumortierite alteration associated with the Auque Cap Gold- Porphyry System in Neuquen, Argentina. White = pyrophyllite and blue = dumortierite. Alteration of this type is associated with the tops of some major porphyry deposits.

Figure 10. Three proposed diamond drill holes are superimposed on the geology of Auque Cap Gold-Porphyry System prospect in Neuquen, Argentina. From youngest to oldest the geological units are: cream = felsic ignimbrite; tan = felsic block breccia; purple = purple lapilli tuff with accretionary lapilli; red = altered felsic rock (pyrophyllite, dumortierite & silica); green = andesite and related volcanic sedimentary rocks. The base of the red unit is at an unconformity. Drill holes generally test intensely altered areas. Thin contours are topography.

Figure 11. Proposed diamond drill holes superimposed on arsenic (contoured) and gold (square yellow bubble plot), Auque Cap Gold-Porphyry System in Neuquen, Argentina. DH-1 and DH-3 target geochemical anomalies. DH-2 is associated with intense pyrophyllitic alteration.

Figure 12. Three proposed diamond drill holes superimposed on IP chargeability Auque Cap Gold-Porphyry System in Neuquen, Argentina. The pole-dipole induced polarization survey yielded several pant-leg anomalies. The chargeability contoured is the average of the top three chargeability readings (n = 1, 2 & 3) that focuses on the causative area. All holes are in induced polarization chargeability anomalies.

Drilling proposed on the Varvarco Gold-Vein and Gold-Porphyry Project explores a number of attractive targets marked by: (i) VLF geophysical anomalies at the Santos High-Grade Gold-Silver-Vein System with coincident geochemical anomalies, (ii) silicified bodies of hydrothermal breccias at the Auque Breccia Pipe Gold-Porphyry System, (iii) intense alteration associated with breccias and unconformities at the Auque Cap Gold-Porphyry System, (iv) striking induced polarization chargeability anomalies at the Auque Breccia Pipe Gold-Porphyry System and the Auque Cap Gold-Porphyry System, and (v) anomalous soil geochemical values that include gold, arsenic and copper on all properties. Continuing programs will examine in detail by drilling the three significant prospect areas that have not been previously drilled—in part, because of lack of access. The exploration targets are gold-sulfide veins and bulk-mineable gold+copper+ molybdenum+silver mineralization of the porphyry style.

FUTURE DEVELOPMENTS ON THE VARVARCO GOLD AND PORPHYRY PROJECT

Ongoing exploration on the Varvarco Gold Vein and Porphyry Project in the Province of Neuquen, Argentina involves: (i) completion of drill access roads to the Auque Cap Gold-Porphyry System and Auque Breccia Pipe Gold-Porphyry System areas, and (ii) drilling of the Santos High-Grade Gold-Silver-Vein System, Auque Breccia Pipe Gold-Porphyry System and Auque Cap Gold-Porphyry System. It is anticipated, given construction of the roads, that the drill-ready targets can be diamond drilled in the near future.

QUALIFIED PERSON & CAUTIONARY NOTE

Colin I. Godwin, PhD, PEng, PGeo, is a Professor Emeritus of the Department of Earth and Ocean Sciences. He is President and Director of the Rome Resources Ltd., and is a qualified person as defined in National Instrument 43-101. He has verified the technical data disclosed in this description of the Varvarco Gold-Vein and Gold-Porphyry Project.

Rome Resources Ltd. is in the process of exploring its resource properties and has not yet determined whether the properties contain minerals or mineral reserves that are economically recoverable. The recoverability of the amounts shown for resource properties and any related deferred costs is dependent on the existence of economically recoverable mineral reserves, and the ability of Rome to obtain the necessary financing to complete the development and future profitable production from the properties or proceeds from the disposition thereof.