Genco Makes Strategic Investment in Two Silver-Gold Mines

Market Wire, March, 2008

Genco Resources Ltd., (TSX: GGC) announced today it has made a strategic investment in the ownership of two formerly producing silver-gold mines, Burgin Mine and Trixie Mine, and a concentrator plant, in Utah owned by Chief Consolidated Mining Company.

Brian Mountford, P. Eng., a director of Andover Ventures Inc. (TSX VENTURE: AOX) and an independent mining consultant, has been involved in the assessment of Chief's assets for over the past two years. It is intended that Chief will continue to rely on his knowledge and experience with these assets. Mr. Mountford has advised Genco that, "I believe this is an outstanding group of properties with high grade mineralization and large scale targets. I am looking forward to being involved on a 'hands on' basis with these assets as they are developed."

Terms of the Acquisition

Genco's acquisition was made through the purchase of approximately 65% of the outstanding shares of Chief, a US publicly traded company based in Eureka, Utah incorporated in 1909, from Chief's largest shareholder, Dimeling, Schreiber & Park Reorganization Fund II, L.P. pf Philadelphia, Pennsylvania, for a purchase price of approximately USD ($) 4.9 million.

On closing, Genco's Chairman, Robert C. Gardner, was appointed to Chief's board of directors. As soon as the requisite US securities filings are made by Chief, it is intended that Genco will appoint a further two directors to Chief's Board. Chief's existing President, Richard R. Schreiber will remain as President and a director of Chief as will Steven G. Park. A third director resigned to make room for the appointment of Mr. Gardner.

Plans for Chief's Assets

Genco has entered into negotiations with Andover for the sale of all or part of its investment in Chief and its assets. Any agreement will be reached through the negotiations of independent board committees. It is contemplated that the transaction will involve the issuance of shares of Andover and a silver production royalty over all of Andover's properties, including its Sun polymetallic property in Alaska, with Genco having back-in rights and rights of first refusal over the properties and a pre-emptive right to maintain its pro rata share ownership.

Chief's Assets

In its filings with the United States Securities and Exchange Commission (SEC), Chief has disclosed the following.

Overview

Chief owns or controls approximately 16,000 acres of mining land in Utah and Juab counties in Utah. These properties include

- the Burgin Mine, whose mining rights are held by Chief's 75% owned subsidiary Tintic Utah Metals, LLC, a Colorado limited liability company, and

- the Trixie Mine, held by Chief's 100% owned subsidiary Chief Gold Mines, Inc., a Delaware corporation.

Of these 16,000 acres, approximately 6,000 acres are subject to being sold, as discussed below, pursuant to a Consent Decree with the United States Environmental Protection Agency (EPA). Neither mine is currently in production but are subject to development efforts as further described below.

Tintic Utah (75% owned subsidiary)

Tintic Utah was organized in 1996 under the Colorado Limited Liability Company Act as a joint venture for the development of properties that Chief contributed to Tintic Utah.

Pursuant to the terms of the Operating Agreement for the joint venture, Chief holds a 75% interest and Korea Zinc Co. Ltd. holds a 25% interest. Management of Tintic Utah is controlled by them through a Management Committee. Each member has a voting representative on the Committee and voting is in proportion to each member's respective membership percentage interest. A majority vote is required to approve a program and budget that describes the exploration, development, mining and other operational activities of Tintic Utah. As such, Chief will be able to determine the decisions of the Management Committee because it holds a majority of the percentage interests. However, the approval of a production program and budget for the development, rehabilitation and construction to bring the Burgin Mine back into production requires the affirmative vote of both Chief and Korea Zinc.

Burgin Mine

The Burgin Mine, located in the East Tintic Mining District of Utah, is owned by Tintic Utah.

The Burgin Mine had previously been leased by Chief to Kennecott Corporation. It developed various mining shafts and other capital improvements previously on the properties, including underground access by means of the Apex Number 2 Shaft. After the Burgin Mine was removed from the Unit Lease in 1978, Chief leased the Burgin Mine to the Sunshine Mining Company in 1980. Sunshine rehabilitated the Apex Shaft, together with the connecting drifts and drill stations, at a cost of approximately $6 million. The Burgin Mine was returned to Chief in 1992.

The Burgin Mine is not currently in production. Chief cannot proceed with production at the mine unless it can dewater the mine.

Chief has applied for permission, as described further below, to appropriate water from the Burgin Mine and this application is currently pending before the Utah State Engineer. If the Utah State Engineer approves Chief's application, it may then begin construction of a water treatment facility to be used as the means for disposing of the water pumped from the lower levels of the Mine, enabling Chief to proceed with development and production programs. Although there were objections to Chief's application, it has been in negotiations regarding the terms of an agreement with the main objectors. The Utah State Engineer will issue a decision on the application and Chief would have the right to appeal any adverse decision to a court. Chief is unable to predict whether an agreement with the objectors will be signed or when the Utah State Engineer will render his decision.