Preliminary Economic Assessment (PEA)

(last updated 03/08/2009)

Introduction

Chlumsky, Armbrust and Meyer, LLC (herein "CAM") was engaged by Antares Minerals Inc. (herein “Antares"), a TSX-V-listed company, to prepare a Preliminary Economic Assessment (PEA) and a new 43-101-compliant Technical Report for its Haquira copper project (herein the “Project”) in southern Peru. Technical Reports had previously been prepared by CAM in 2005, March 2006, and December 2007 (CAM 2005, 2006, 2007), defining Inferred and Indicated Resources, based on all geologic and drilling data through the end of 2006.

CAM undertook a Preliminary Economic Analysis (PEA) of only the leachable secondary copper portion of the Haquira project, including an analysis of mining Inferred Resources in the mine production schedules. Inferred Resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Reserves under the standards set forth in NI 43-101; while Inferred Resources may be included in a PEA.

Results of Preliminary Economic Analysis

The basic scenario for the PEA was an open-pit mine, with recovery of copper from oxide ores and acid leachable sulphide ores, via acid heap-leaching. Copper cathodes produced on-site by electrowinning would be trucked to a Peruvian port. Mining and processing are designed to treat 18.25 million tonnes per year of mineralized material, with a mine life of approximately 11 years, plus eighteen months of engineering, procurement, construction and development, two additional years of leaching, 3 years for closure and reclamation, for a total project life of 15+ years.

CAM utilized the MicroMODEL mine planning software which uses the block model economic values to determine the ultimate economic limits of the pits. The mine operating cost, for use in the block model, was estimated to be $1.75 per tonne. A pit slope of 45 degrees was assumed for the entire pit, since no pit slope geotechnical studies have been completed to date. A standard bench height of 10 meters was assumed. Based on preliminary metallurgical tests the copper recovery is estimated at 75 percent.

The PEA is calculated on a project basis, assuming 100 percent equity financing, and a base case copper price of US$2.00 per pound. A Peruvian NSR royalty of 3 percent and corporate tax rate of 30 percent have been used in the cash flow analysis. Employee profit sharing at 8% of profit before corporate taxes is also included. Sunk costs to date are not included, but mine-life working capital allowance has been included. Capital costs are assumed to include costs subsequent to completion of the pre-feasibility study, to be completed at end of 2008. All prices and costs are stated in first-quarter 2008 US dollars. All analyses are on an after-tax basis.

Economic analyses indicate the Project has a positive rate of return at a copper price of US$2.00 per pound. Results of the base case cash flow evaluation are summarized in Table 1 showing life-of-mine totals; with a project payback period is 2.9 years.

Table 1: Economic Evaluation Summary.

Sensitivity analysis has been applied to the base case cash flow by varying the copper price, operating costs, and capital costs. The IRRs and NPVs at an eight percent discount rate for sensitivity to these variables are presented in Table 2 and Table 3. No variables were changed together, all are single effects.

Table 2: Copper Price Sensitivity (after tax).

Table 3: Capital and Operating Cost Sensitivities (after-tax @ $2.00 / lb Cu).

Interpretations and Conclusions

This PEA report focuses only on the oxide and secondary supergene sulphide leachable copper mineralization occurring at the Haquira deposit. No primary sulphide mineralization has been taken into account in this analysis.

Exploration on the Haquira Property by PD Peru and Antares has been successful in revealing the existence of a large tonnage of secondary (supergene) copper mineralization of economic interest, that has been confirmed by extensive drilling on the property; Antares has further delineated an underlying porphyry copper system with primary (hypogene) values in Cu, Mo, and Au of potential economic interest. The primary mineralization has been investigated by drilling to only a limited degree so far. A PEA was carried out using the latest available cost data.

Conclusions from the PEA include:

1. Significant potential exists for expanding the metals inventory in primary porphyry-style mineralization, with potential for expanding secondary mineralization as well.

2. The methods used by Antares and contractors for drilling, sampling, prepping and assaying of copper mineralization are of adequate quality for preparation of a database for mineral Resource estimation.

3. The Haquira drill hole database has been verified to be of sufficient spacing and reliability to estimate mineral Resources and Reserves.

4. Standard estimation methodologies involving a kriged block model yielded estimates of large tonnages of potentially leachable copper mineralization, at acceptable copper grades.

5. Bottle-roll tests on crushed secondary mineralization from drill hole samples showed recoveries on the order of 75% of Total Copper in a 360-hour leach period.

6. Additional drilling of both in-fill and step-out types are likely to be successful in expanding the Resource of both secondary and primary mineralization.

7. Antares' 2006 exploration and drilling program met its original objectives of expanding the secondary (leachable) mineral inventory, discovering promising intercepts of primary mineralization, and defining the favourable acid-leach characteristics of the secondary mineralization.

8. This PEA, based on the mineral resource at the end of December 2007, demonstrates that the supergene mineralization has significant economic potential to support development of, and sustain a copper cathode production mine and facility for a period approaching 13 years.