Gutain Davaa, Mongolia

Gutain Davaa Gold Project (ELs 5575x, 6155x)

HIGHLIGHTS

• Acquired 100% of 3,928 ha Gutain Davaa Gold Project from Troy Resources and private party in Mongolia in 2010;
• Gutain Davaa has six gold prospects with high grade surface samples that have seen limited testing;
• Drilling program on the Toordogiin Shil prospect completed 36 diamond drill holes in 2010 with spectacular results;
• Drill campaign outlined a mineralized strike length of 290 meters to a depth of 135 meters. The deposit is open in both strike directions and to depth
• Best intersections include 8.78 g/t Au over 28.6 m, 10.7 g/t Au over 8.05 m and 7.73 g/t Au over 16.0 m. Included high grade assays  as high as 62.8 g/t Au over 3.00 m.
• A second drill campaign started in late December 2010 and will continue through the winter.

PROJECT DESCRIPTION

Gold is hosted in quartz veins in granitic intrusions and sediments. The system appears to be epithermal with a partial remobilization of gold into brecciated zones caused by episodes of folding and faulting. High grade intersections often sit in envelopes of lower grade material.

The project is well situated with respect to infrastructure. The town of Batshireet, with basic supplies and power, is located approximately 25 kilometers from the project and water is readily available in a river that flows down the valley which is being alluvial mined by locals. The Onon River, a major waterway, is located five kilometers from the project

Mongolia has a good supply of technical and manual labour and drilling and assaying contractors with international reputations and standards are available.

TOORDOGIIN SHIL PROSPECT

The Toordogiin Shil prospect was discovered as high grade surface samples and has been  partially delineated on surface by soil sampling.

Troy Resources drill campaigns partially outlined a high grade gold mineralized zone to shallow depths over a short strike length.

Meritus has completed a total of 36 diamond drill holes (to December 1, 2010) over a strike length of 290 meters to a maximum vertical depth of 135 meters. The mineralization is open along strike to northwest, southeast and to depth.

Further drilling is continuing throughout the winter of 2010-2011

SIGNIFICANT DRILL RESULTS AT GUTAIN DAVAA

HOLE NO.	FROM (m)	TO (m)	WIDTH (m)	GOLD (g/t)
TSD001	7.0	14.3	7.3	4.39
incl	12.0	14.3	2.3	10.91
TSD002	33.2	61.8	28.6	8.78
Incl	33.2	42.0	8.8	23.41
TSD003	47.8	58.5	10.7	8.05
TSD004	11.1	41.8	30.7	3.92
incl	11.1	13.8	2.7	14.44
and	36.7	41.8	5.1	12.09
TSD005	57.6	61.3	3.7	3.07
TSD006	22.0	24.9	2.9	12.22
TSD007	53.7	63.5	9.8	2.99
HOLE NO.	FROM (m)	TO (m)	WIDTH (m)	GOLD (g/t)
TSD008	9.9	20.6	10.7	7.21
TSD010	35.0	51.0	16.0	7.73
incl	35.0	42.0	7.0	12.56
TSD013	55.0	67.0	12.0	7.53
incl	62.6	67.0	4.4	18.5
TSD017	92.0	102.0	10.0	1.77
incl	92.0	95.25	3.25	3.60
TSD019	38.6	40.0	1.4	7.21
TSD020	57.45	64.0	6.55	3.55
incl	57.45	58.0	0.55	17.62
TSD021	87.2	101.0	13.8	3.67
TSD023	115.2	117.1	1.9	10.50
TSD026	82.6	88.25	5.65	11.14
incl	86.3	88.25	1.95	28.31
HOLE NO.	FROM (m)	TO (m)	WIDTH (m)	GOLD (g/t)
TSD026 (cont’d)	122.7	126.0	3.3	9.94
TSD027	81.4	82.0	0.6	7.99
TSD028	99.0	102.6	3.6	4.77
TSD032	86.5	106.0	19.5	1.96
incl	100.0	102.15	2.15	9.37
	112.85	113.5	0.65	5.74