Overview

Cream Minerals (TSXV:CMA) is a junior resource company focused on the exploration and development of  Nuevo Milenio a silver-gold project in Mexico.  The Company maintains a portfolio of four additional early stage exploration properties in Canada.

The 100% owned 2,560 Ha Nuevo Milenio is a silver-gold project located in Nayarit State, Mexico. It contains a NI 43-101 Inferred Mineral Resource of 54.6 million ounces silver equivalent with average grades of 251 g/t silver and 1.66 g/t gold. It is a low sulphidation epithermal system with silver and gold in quartz veins. There are three distinct zones of mineralization trending SE/NW which are open to the SE, NW and down dip. Access to infrastructure is excellent. Tepic, the capital of Nayarit State is only 27km’s by road (24km’s by paved and 3km’s by dirt road). As well, access to quality infrastructure is excellent with an airport, water, power and railway all within 14 km’s of the property.

Investment Highlights

• NI 43-101 Inferred Mineral Resource of 54.6 million ounces silver equivalent
• Average grades of 251 g/t Silver and 1.660 g/t gold
• 41,071,934.77ounces contained silver and  271,482.21 ounces contained gold
• Cut-off grade of 131 g/t silver equivalent
• 20,292 metre drill program completed in October 2011
• Revised NI 43-101 Resource Estimate Pending Q1 2012
• Strong Strategic Investors
• Pinetree Capital – 23,500,000 shares, 15.4%
• Sprott Asset Management – 24,500,000 shares,  16%
• To date exploration has been focused on 600 Ha’s of the 2,560 Ha property leaving substantial exploration potential

Key Properties

Nuevo Mileno Silver Gold Project, Nayarit State, Mexico

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Property Overview

Nuevo Milenio encompasses 2,560 hectares (Ha) and is located in Nayarit State, Mexico.  Nuevo Milenio is 27 km’s driving distance (24 km’s by paved roads, 3 km’s by dirt road) from Tepic, the capital of Nayarit State.  Tepic is an important commercial centre with a population of over 300,000 people located 150 km’s northeast of Puerto Vallarta.  Cost effective access to infrastructure is an important feature of Nuevo Milenio with easy access to power lines, water, a railway, highways, and an airport.

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Regionally, Nuevo Milenio is located within a caldera field located at the southern end of the Sierra Madre Occidental belt.  The Tepic area is overlain by the young volcanic of the Trans Mexican Volcanic Belt (a zone of historically intense volcanic activity).  The confluence of two historically active volcanic zones and proximity to large regional faults provides an intriguing geological setting.

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Nuevo Milenio Project Setting

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Nuevo Milenio is a low sulphidation, epithermal precious metal prospect containing silver-gold mineralization in quartz vein and quartz stock work zones.  In other words the silver and gold is hosted in quartz veins quartz stock work associated with intense volcanic activity and fluidization. The Project is is set in a collapsed caldera. Three principal northwest trending zones have been identified on the property, Dos Hornos – Veta Tomas, Once Bocas North, Once Bocas South and Cafetal – Chacuaco

Nuevo Mileno contains a NI 43-101 compliant Inferred Mineral Resource of 54.6 million ounces silver equivalent contained within 5.09 million tonnes.  The average silver grade is 251 g/t and the average gold grade is 1.660 g/t.

Revised NI 43-101 Report, dated December 24, 2008 by F.Holcapek, P.Eng

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Tonnes: 5,088,000 Ag: 251.09 g/t, Au: 1.660 g/t. Ag: 41,072,000 oz, Au: 271,500 oz.

Silver Equivalent (Gold – Silver price Ratio = 50:1): 54,647,000 oz (In Situ)

Metal prices employed were US$10.28 per ounce Ag and US$816.09 per ounce Au.  A cut-off grade of US$45.00 per tonne or 131g/t Ag equivalent was used.

The mineralization at Nuevo Milenio is contained within three broad zones that trend NW for a distance of almost five km’s. The three zones contain Dos Hornos – Veta Tomas, Once Bocas North, Once Bocas South and the Cafetal-Veta Olvidada, Cerro Chacuaco zones.

Dos Hornos – Veta Tomas

The Dos Hornos – Veta Tomas zone has a drill defined strike length of approximately 1,200 metres.  It consists of three quartz veins quartz stock work within a 150 metre wide zone.  Dos Hornos 1 and Dos Hornos 2 are faulted segments of the same vein.  Veta Tomas is a separate vein moved on strike with Dos Hornos 1 and Dos Hornos 2. The Dos Hornos – Veta Tomas system is open to the northwest, southeast and down dip.

Once Bocas North

Once Bocas North is a broad, moderate to intense argillic alteration zone. It contains four nearly parallel quartz veins and quartz stock work. The current drill defined strike length is 450 metres, a vertical dimension over 150 metres, and a surface width of approximately 100 metres.  It remains open to the NW.

Once Bocas South

Once Bocas South is separated from Once Bocas North by a local fault.  Like Once Bocas North, it is a moderate to intense argillic alteration zone that includes numerous well developed quartz veins and quartz stock work zones. Drilling has defined a strike length of 230 metres and a width of 100 metres. It remains open to the SE and has a surface mapped strike length of 600 metres.

Cafatel – Veta Olvidada

Cafate – Veta Olvidada is characterized by variable intensity silica flooding containing quartz stock work and quartz veins.  Higher grade quartz veins separated by quartz stock work are contained within the zone.  Drilling has defined a minimum width of 30 metres and a length of 400 metres.  It is contained within the larger Area Cafetal which has surface mapped dimensions of approximately 500 metres by 300 metres.

Cerro Chacuaco – Mina Perdida /Mina Nanche Structure

Cerro Chacuaco cut by Veta Nanche – Veta Perdida, Veta Cerro Chacuaco and Veta Perdida 3, quatz veins.  These veins are hosted by lithic rhyolite tuff.  The upper elevations show strong silica flooding.  Mina Perdida and Mina Nanche, old Spanish workings (1.20 metres wide) consisting of adits, shafts and trenches define a vein system 450 metres in length.

The Dos Hornos Veta Tomas veins sets are contained within the east wall of the caldera. They represent underground mining potential. The Once Bocas North, Once Bocas South, Area Caetal (containing Cafetal-Veta Olvidada) and Cerro Chacuaco are located on the floor of the caldera. Dependent on the cut-off grade employed Once Bocas North could represent underground mine or open pit mine potential. The remaining zones represent open pit potential.

Summary

Cream began a diamond drill program on February 6, 2011.  The Company completed the drill program in October 2011 ahead of schedule and on budget. Drilling totalled  20,292 metres representing 89 drill holes. The program was comprised of 13,500 metres of infill drilling intended to upgrade the Inferred Mineral Resource. A further 6,792 metres of exploration drilling was completed. In-fill drilling was focused on the Dos Hornos – Veta Tomas as well as Once Bocas North. Step-out drilling tested extensions of Once Bocas North, Once Bocas South, Cafetal-Veta Olvidada and Cerro Chacuaco.

Management

Christopher Hebb, LLB, Chairman of the Board of Directors

Mr. Hebb is President and CEO of Cavell Capital Corporation, a Vancouver based investment Management Company. Mr. Hebb holds an LL.B. from the University of Toronto and was licensed as a lawyer in Alberta and British Columbia focusing on corporate and securities law and international business transactions. Mr. Hebb’s career includes substantial experience at a senior management level in investment management, expansion capital, private client wealth management, diamond exploration, consumer products, real estate development, steel manufacturing and fabrication, coal mining, and oil and gas exploration and production.

Michael E. O’Connor, President, Chief Executive Officer and Director

Mr. O’Connor has over twenty years experience in the financial services industry including experience in brokerage, banking, corporate development and corporate finance, investor relations and corporate communications positions .Mr. O’Connor is an experienced capital markets and communications professional with national and international contacts and has a strong background in the financing of development stage companies.

Dwayne L. Melrose, Director

Mr. Melrose is a graduate of the University of Waterloo, Ontario and has over 30 years’ experience as an exploration and mine geologist. He has been involved in all aspects of exploration from grass roots to the mine definition/feasibility stage and open pit mine geology. Mr. Melrose has worked globally with Cameco/Centerra’s Gold companies’ exploration departments spending over two decades in Canada, the USA, and Kazakhstan. He also served as Exploration Manager at the Kumtor Gold Mine in the Kyrgyz Republic where he was directly responsible for the discovery of the high grade SB Zone, significantly increasing the reserves and resources of the Kumtor Mine and extending its life of mine.

Mr. Melrose served VP, Exploration, Minco Silver Corporation, where his responsibilities included managing the exploration program which increased and defined 157 million ounces of silver at the Fuwan project. Mr. Melrose then advanced Fuwan through the initial Preliminary Economic assessment stage to the completion of a successful and positive Feasibility Study. In addition Mr. Melrose also served as VP Exploration for Minco Gold Corporation, adding 1 million ounces to the resources (all categories) of the Changkeng gold property by December 31, 2008. Currently Mr. Melrose serves as the President, COO and Director of Riverstone Resources Inc.

Gerry Feldman, C.A., Director

Mr. Feldman is a Chartered Accountant and is the Vice-President of Corporate Development of Pinetree Capital Ltd. and the CFO of each of Pinetree Capital Ltd., Brownstone Ventures Inc. and Waymar Resources Ltd.

Ferdinand Holcapek, P.Eng., Director and General Administrator Cream Minerals de Mexico, S.A. de C.V.

Mr. Holcapek, a graduate of the University of British Columbia in geology and geophysics, has been active in the mineral exploration business since 1962. He has extensive experience in the acquisition, management and exploration of mineral deposits in Canada, Mexico, Nicaragua, USA, Australia and Africa.

From 1970 to 1978 as Exploration Manager he was responsible for all projects of Agilis Engineering Ltd., a Vancouver based consulting and management group, in Canada, Australia, Nicaragua, Mexico and USA. From 1979 to 1982 he was Director of Exploration for the Nicaraguan Government responsible for cataloguing and evaluating mining properties in Nicaragua and for production of the existing mines. From 1982 to 1990 he was the principle of Pace Geoex Services Ltd.

Since 1991, Mr. Holcapek has acted as exploration and administrative manager in Mexico for the Lang Mining group of companies. More recently, Mr.. Holcapek assisted in the incorporation of Cream Minerals de Mexico and the acquisition, management and exploration of Cream’s Nuevo Milenio gold and silver property near Tepic in the state of Nayarit, Mexico. Mr. Holcapek is Director General of Cream Minerals de Mexico, and is in charge of exploration in Mexico.

Robin Merrifield, C.A. (S.A.), Director

Robin Merrifield is a chartered accountant with substantial international experience, gained in Canada, USA, Southern Africa and five Central Asian countries. Subsequent to his obtaining his professional designation at Deloittes in Cape Town, South Africa, he became the local group financial manager of a large UK shipping and industrial group.

He has worked in the mining industry for more than 30 years where he has held a variety of executive financial positions. His corporate and operational experience, with both precious and base metals, was gained with the Anglo American group, the predecessor to Centerra and other Canadian public companies. In addition, he has worked in the uranium industry for more than 10 years with both Cameco and Uranium One.

He is currently an Executive Vice President of Uranium One, having also recently served as its CFO for four years. He is also a Director of a number of junior Exploration mining companies.

Sargent H.Berner, LLB, Director

Mr. Berner has served as a Director of the Company since 1995, and is also a director of ValGold Resources, Emgold Mining and Sultan Minerals. He has been a partner of the Vancouver law firm of DuMoulin Black Barristers and Solicitors since 1976, and served as Managing Partner of that firm from 1994 to 1996. From 1968 to 1976, he was a Professor of Law and member of the Faculty of Law of the University of British Columbia.

He was a member of the British Columbia Corporate and Financial Services Commission (predecessor to the British Columbia Securities Commission) in 1975-1976, and was a member of the Vancouver Stock Exchange Advisory Committee in 1992-1993. He earned a B.A. in English and Economics from the University of British Columbia, and LL.B. from the University of British Columbia, and an LL.M. from the London School of Economics.

Ronald Lang, Director

Mr. Lang is a businessman and consultant with over twenty years’ experience working with companies in the junior resource sector.

Angela Yap, C.A., Chief Financial Officer

Ms. Yap, a chartered accountant brings over thirteen years of accounting and financial management experience to Cream Minerals. Ms. Yap began her career at KPMG in the resource group auditing mining and forestry companies, after which she transferred to KPMG’s tax group. In 2003 Ms. Yap moved to private industry and has held successively senior positions, most recently as Director of Corporate Accounting with the Anthem Properties Group.