Bluestone Resources Inc. focused on the development of the Cerro Blanco Gold Project. A recently completed Feasibility Study demonstrated a robust, rapid pay-back, high-grade operation that will produce 2.6 million ounces of gold over the life of mine at a first quartile all-in sustaining cost. Bluestone has made significant progress in advancing the Cerro Blanco Project and as a result has drawn attention from certain anti-mining groups, that are known in the region for spreading misinformation on the impacts of development projects, such as Cerro Blanco.

The Company is aware of a referendum that was held in the Municipality of Asuncion Mita that was organized by anti-mining advocates. These anti-mining groups formed a biased commission (the "Commission") to organize a referendum that unfairly portrayed public opinion on future mining activities within the municipal limits. The Commission responsible for the vote is fully comprised of individuals with an anti-mining agenda.

During the referendum process several biased and illegal activities were observed. Bluestone has been advised by its legal counsel that the referendum will not be legally binding. Furthermore, a legal injunction was filed against the referendum and a Judge in department of Jutiapa, where the project is located, ruled that it be suspended.

Regardless of this ruling, the Commission holding the illegitimate vote continued to proceed against the orders of the court. Due to the injunction against the vote, the Company did not actively participate. The referendum is against the recommendations of the Central Government, no entity other than the relevant federal governmental agencies have the legal jurisdiction over mining licenses in Guatemala.

The governing electoral body of Guatemala (Supreme Electoral Tribunal) has refused to participate and has even refused to provide a registered list of voters. Furthermore, it is believed that voting results contained a number of votes from unregistered individuals residing outside of the area of influence. Additionally, the Commission that was comprised of individuals with anti-mining agendas was responsible for counting the votes.

International accepted standards for a vote of this nature were not followed or considered. The results reflect an outcome that is not transparent or in line with the Company's understanding of the sentiment towards the project.