UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 20-F

[   ] REGISTRATION STATEMENT PURSUANT TO SECTION 12 (b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year endedDecember 31, 20072008

OR

[   ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to ____________

Commission file number333-78481

GREAT PANTHER RESOURCES LIMITED

(Exact name of Registrant as specified in its charter)

Not Applicable

(Translation of Registrant's Name into English)

British Columbia, Canada

(Jurisdiction of incorporation or organization)

2100-1177 West Hastings Street
Vancouver, British Columbia, Canada V6E 2K3

(Address of principal executive offices)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Securities registered or to be registered pursuant to Section 12(g) of the Act.

Common Shares Without Par Value

(Title of Class)

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Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act.

Not Applicable

Title of Class

Indicate the number of outstanding shares of each of the Registrant's classes of capital or common stock
as of
the close of the period covered by the annual report.

There were 80,744,35281,654,521 common shares, without par value, issued and outstanding as of December
31, 2007.2008.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. [   ] YES    [X] NO

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file
reports
pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
[X] YES    [   ] NO

Note – Checking the box above will not relieve any registrant required to file reports pursuant to Section
13 or
15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or
15(d)
of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period
that the
registrant was required to file such reports), and (2) has been subject to such filing requirements
for the past 90
days.
[X] YES    [   ] NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-acceleratednon-
accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the
Exchange Act. (Check one):

Large accelerated filer [   ]            Accelerated filer [X]        [X ]            Non-accelerated filer [ ]

Indicate by check mark which financial statement item the registrant has elected to follow.
[X] Item 17    [   ] Item 18

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in
Rule
12b-2 of the Exchange Act).
[   ] YES    [X] NO

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE
PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by
Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of
securities
under a plan confirmed by a court. [   ] YES    [   ] NO

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GLOSSARY OF TERMS

The following glossary, which is not exhaustive, should be used only as an adjunct to a thorough reading of the entire document of which it forms a part.

adit: A horizontal or close-to-horizontal tunnel, man-made for mining purposes.

Ag: The chemical symbol for silver on the Periodic Table.

andesite: A fine-grained brown or greyish intermediate volcanic rock.

Au: The chemical symbol for gold on the Periodic Table.

breccia: A course-grained rock, composed of angular, broken rock fragments held together by a mineral cement or a fine-grained matrix.

chloritization: A form of alteration of a rock involving the replacement by, conversion into, or introduction of chloride.

crosscuts: Mine openings or passageways that intersect a vein or ore bearing structure at an angle.

epithermal: Applied to hydrothermal deposits formed at low temperature and pressure.

Feasibility Study: A detailed study of a deposit in which all geological, engineering, operating, economic and other relevant factors are engineered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production.

felsic: Applied to an igneous rock having abundant light-colored materials.

hectare: A metric unit of land measure equal to 10,000 square metres or 2.471 acres.

hydrothermal: Relating to hot fluids circulating in the earth's crust.

Indicated Mineral Resource:As defined by the Canadian Institute of Mining, Metallurgy, and Petroleum, an Indicated Mineral Resource is part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.ⁱ

Inferred Mineral Resource:As defined by the Canadian Institute of Mining, Metallurgy, and Petroleum, an Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes.ⁱⁱ

Measured Mineral Resource: As defined by the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves, a Measured Mineral Resource is part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate

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application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit.

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The estimate is based on a detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes that are spaced closely enough to confirm both geological and grade continuity.

mineral: An inorganic substance having usually a definite chemical composition and, if formed under favourable conditions, having a certain characteristic atomic structure which is expressed in its crystalline form and other physical properties.

Mineral Resource:As defined by the Canadian Institute of Mining, Metallurgy, and Petroleum, a Mineral Resource is a concentration or occurrence of natural, solid, inorganic, or fossilized organic material in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

Mineral Reserve:As defined by the Canadian Institute of Mining, Metallurgy, and Petroleum, a Mineral Reserve is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mined.

mineral claim: The portion of mining ground held under law by a claimant.

mineralization: Implication that the rocks contain sulphide minerals and that these could be related to ore.

ore: That part of a mineral deposit which could be economically and legally extracted.

Probable Mineral Reserve:As defined by the Canadian Institute of Mining, Metallurgy, and Petroleum, a Probable Mineral Reserve is the economically mineable part of an Indicated, and in some circumstances a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

Proven Mineral Reserve:As defined by the Canadian Institute of Mining, Metallurgy, and Petroleum, a proven mineral reserve, is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

quartz: A common rock forming mineral consisting of silicon and oxygen.

rhyolite: A fine-grained volcanic (intrusive) rock of granitic composition.

sulfidation: The reaction of a metal or alloy with a sulfur-containing species to produce a sulfur compound that forms on or beneath the surface of the metal or alloy.

stockwork: A metalliferous deposit characterized by the impregnation of the mass of rock with many small veins or nests irregularly grouped.

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vein: A zone or belt of mineralized rock lying within boundaries clearly separating it from neighbouring rock. A mineralized zone has, more or less, a regular development in length, width and depth to give it a tabular form and is commonly inclined at a considerable angle to the horizontal. The term "lode" is commonly used synonymously for vein.

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CONVERSION TABLE

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PART I

This annual report contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expects", "plans", "anticipates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors" that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

As used in this annual report, the terms "we", "us", "our", and "Great Panther" mean Great Panther Resources Limited, and our subsidiaries, Minera Mexicana el Rosario, S.A. de C.V., Metalicos de Durango, S.A. de C.V., Minera de Villa Seca, S.A. de C.V., Exploraciones Mineras el Rosario S.A. de C.V. and/or New Age Investments Inc., unless otherwise indicated.

Unless otherwise indicated, all dollar amounts referred to herein are in Canadian dollars.

ITEM 1 Identity of Directors, Senior Management and Advisers

A.Directors and Senior Management

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This Form 20-F is being filed as an annual report under the Exchange Act, and, as such, there is no requirement to provide any information under this item.

B. Advisers

       C. This Form 20-F is being filed as an annual report under the Exchange Act, and, as such, there is no requirement to provide any information under this item.

C. Auditors

This Form 20-F is being filed as an annual report under the Exchange Act, and, as such, there is no requirement to provide any information under this item.

ITEM 2 Offer Statistics and Expected Timetable

Not applicable.

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ITEM 3 Key Information

A.Selected Financial Data

The following financial data summarizestables summarize certain of our key selected financial data for our Company prepared in accordance with Canadian generally accepted accounting principles for the five fiscal years ended December 31, 2007. Additionaldata. This information is presented to show the differences which would result from the application of United States generally accepted accounting principles to our financial information. The information presented below as at December 31, 2007 and 2006, and for each of the years in the three-year period ended December 31, 2007, is derived from our audited financial statements which are included in this Annual Report on Form 20-F. The information set forth below should be read in conjunction with our auditedthe more detailed financial statements and related notes included in this annual report and with the information appearing under the heading "Item 5. Operating and Financial Review and Prospects". The data is presented in Canadian dollars, unless otherwise stated.

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Selected Financial Data
(Stated in Canadian Dollars unless otherwise noted - Calculated in accordance with Canadian
GAAP)

Fiscal Year Ended December 31 (Audited)

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Selected Financial Data
(Stated in Canadian Dollars Unless Otherwise Noted - Calculated in accordance with US GAAP)

Fiscal Year Ended December 31 (Audited)

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1	Revenue and cost of sales have been restated to include treatment and processing charges as a reduction of revenue instead of an expense included in cost of sales – see“Restatement”in Item 5.
2	Excludes asset retirement obligations and future income tax liability.

Disclosure of Exchange Rate History

On March 20, 2008,18, 2009, the exchange rate in effect for Canadian dollars exchanged for United States dollars, expressed in terms of Canadian dollars, and based on the noon buying rates in New York City, for cable transfers in Canadian dollars, as certified for customs purposes by the Federal Reserve Bank of New York was $1.0269.$1.2715.

For the past five fiscal years ended December 31, 20072008 the average exchange rates were in effect, and for each of the period between December 1, 2007previous six months, the high and February 29, 2008, the followinglow exchange rates were in effect, for Canadian dollars exchanged for United States dollars and expressed in terms of Canadian dollars and based upon the exchange rate as determined above:dollars:

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B.          Capitalization and Indebtedness

Not Applicable

C.          Reasons for the Offer and Use of Proceeds

Not applicable

D.Risk Factors

Much of the information included in this annual report includes or is based upon estimates, projections or other "forward looking statements". Such forward looking statements include any projections or estimates made by our Company and our management in connection with our business operations. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.

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Such estimates, projections or other forward looking statements involve various risks and uncertainties as outlined below. We caution the reader that important factors in some cases have affected and, in the future, could materially affect actual results and cause actual results to differ materially from the results expressed in any such estimates, projections or other forward looking statements.

The common shares of our Company are considered speculative. You should carefully consider the following risks and uncertainties in addition to other information in this annual report in evaluating our Company and our business before purchasing shares of our Company's common stock. Our business, operating and financial condition could be harmed due to any of the following risks.

Risks Associated with Mining

AsOur reserve and resource estimates are based on interpretation and assumptions and may yield less mineral production under actual conditions than is currently estimated.

In making determinations about whether to advance any of our properties are in exploration,projects to development, and mining stages there is no assurancewe must rely upon estimated calculations as to the full extent that wemineral reserves and grades of mineralization on our properties. Until ore is actually mined and processed, mineral reserves and grades of mineralization must be considered as estimates only. These estimates are imprecise and depend upon geological interpretation and statistical inferences drawn from drilling and sampling which may prove to be unreliable. We cannot assure you that:

• Reserve, resource or other mineralization estimates will be establishing commercial discoveriesaccurate; or

• Mineralization can be mined or processed profitably.

Any material changes in mineral reserve estimates and grades of mineralization will affect the economic viability of placing a property into production and a property’s return on capital. Our reserve and resource estimates have been determined and valued based on assumed future prices, cut-off grades and operating costs that may prove to be inaccurate. Extended declines in market prices for silver, gold, zinc and lead may render portions of our mineralization uneconomic and result in reduced reported mineral reserves.

Any material reductions in estimates of mineralization, or of our ability to extract this mineralization, could have a material adverse effect on our properties.

Despite a 48-year historyresults of continuousoperations or financial condition. We cannot assure you that mineral recovery rates achieved in small scale tests will be duplicated in large scale tests under on-site conditions or in production at the Topia Mine, extensive exploration work on our mineral claims and current commercially profitable operations there, the full extent of the ore bodies has yet to be established in accordance with Canadian NI 43-101.

Similarly, at the Guanajuato Mine Complex, with its estimates of historic production ranging from 700 million ounces to 1.5 billion ounces of silver and 4 to 7 million ounces of gold since 1548, with extensive exploration work done to date, with current physical mining and with the production of increasing quantities of silver and gold concentrates, it is nevertheless too early to determine the full extent of the ore bodies in accordance with Canadian NI 43-101.scale.

Mineral operations are subject to government regulations which could have the effect of reducing or preventing us from exploiting any possible mineral reserves on our properties.

Mining and exploration activities are also subject to national and local laws and regulations governing prospects, taxes, labour standards, occupational health, land use, environmental protection, mine safety and others which currently or in the future may have a substantial adverse impact on our Company. In order to comply with applicable laws, we may be required to make capital expenditures until a particular problem is remedied. Existing and possible future environmental legislation, regulation and action could cause additional expense, capital expenditures, restriction and delays in the activities of our Company, the extent of which cannot be reasonably predicted. Violators may be required to compensate those suffering

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loss or damage by reason of our mining activities and may be fined if convicted of an offence under such legislation.

Mining and mineral exploration has substantial operational risks, which could prevent us from achieving profitable operations.

Mining and mineral exploration involves many risks, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. Operations in which we have an interest will be subject to all of the hazards and risks normally incidental to exploration, development and production of base, precious and other metals, any of which could result in damage to or destruction of mines and other producing facilities, damage to life and property, environmental damage and possible legal liability for any or all damage. The nature of these risks is such that liabilities could exceed policy limits of our insurance coverage, in which case we could incur significant costs that could prevent us from becoming profitable. Most exploration projects do not result in the discovery of commercially mineable ore deposits and no assurance can be given that any anticipated level of recovery of ore reserves will be realized or that any identified mineral deposit will ever qualify as a commercially viable ore body which can be legally and economically exploited.

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Our projects are located in Mexico where mining and exploration activities may be affected in varying degrees by political and government regulations, which could have a negative impact on our ability to continue our operations.

Mining and exploration activities in Mexico may be affected in varying degrees by political instabilities and government regulations relating to the mining industry. Any changes in regulations or shifts in political conditions are beyond our control and may adversely affect our business. Our operations may also be affected in varying degrees by government regulations with respect to restrictions on production, price controls, export controls, income taxes, expropriations of property, environmental legislation and mine safety. The status of Mexico as a developing country may make it more difficult for us to obtain any required financing for our projects. The effect of all these factors cannot be accurately predicted. Notwithstanding the progress achieved in restructuring Mexican political institutions and revitalizing its economy, the present administration, or any successor government, may not be able to sustain the progress achieved. While the Mexican economy has experienced growth in recent years, such growth may not continue in the future at similar rates or at all. If the economy of Mexico fails to continue its growth or suffers a recession, we may not be able to continue our operations in that country. We do not carry political risk insurance.

Our operations may be subject to environmental regulations which may result in the imposition of fines and penalties.

Our operations may be subject to environmental regulations promulgated by government agencies from time-to-time.time to time. There is no assurance that environmental regulations will not change in a manner that could have an adverse effect on our Company's financial condition, liquidity or results of operations. Environmental legislation is constantly expanding and evolving in ways that impose stricter standards and more rigorous enforcement, with higher fines and more severe penalties for non-compliance, and increased scrutiny of proposed projects. There is an increased level of responsibility for companies, and trends towards criminal liability for officers and directors for violations of environmental laws, whether inadvertent or not. The cost of compliance with changes in governmental regulations has a potential to reduce the profitability of our operations.

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While we maintain appropriate insurance for liability and property damage, we may become subject to liability for hazards that cannot be insured against, which if such liabilities arise, could reduce or eliminate profitability for our Company.

Our operations may involve the use of dangerous and hazardous substances. While extensive measures are taken to prevent discharges of pollutants in the ground water and the environment, and it is anticipated that we will maintain appropriate insurance for liability and property damage in connection with our business, we may become subject to liability for hazards that cannot be insured against or which we may elect not to insure ourselves against due to high premium costs or other reasons. Should such liabilities arise, they could reduce or eliminate the profitability of us, resulting in a decline in the value of our securities. In the course of mining and exploration of our mineral properties, certain risks and, in particular, unexpected or unusual geological operating conditions including rock bursts, cave-ins, fires, flooding and earthquakes, may occur. It is not always possible to fully insure against such risks and we may decide not to take out insurance against such risks as a result of high premiums or other reasons. Should such liabilities arise, they could reduce or eliminate any future profitability and result in increasing costs and a decline in the value of our securities.

There can be no assurance that title to any property interest acquired by us or our subsidiary is secured.

Although we have taken reasonable precaution to ensure that legal title to our properties is properly documented, there can be no assurance that our Company's, or our subsidiaries’, property interests may not be challenged or impugned. Such property interests may be subject to prior unregistered agreements or transfers or other land claims, and title may be affected by undetected defects and adverse laws and regulations.

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We have a limited operating history on which to base an evaluation of our business and prospects.

Since we have only relatively recently begun mining and furtherfurthering development of our mining properties, we only have a limited operating history on which to base an evaluation of our future prospects. Our operating activities from 2004 through 2006, consisted primarily of locating and acquiring the interest in the properties that we currently hold. In the first part of 2006, we commenced production at the Topia Mine and limited production at the Guanajuato Mine Complex, and only increased production at both locations in the second half of 2006. 2007 was the first year in which both mines were in full production. For the year ended 2007, we generated $17,487,070 in revenue, compared to $7,069,442 and $0 for the twelve month periods ending December 31, 2006 and 2005, respectively. Although we have prepared internal mining plans and cash flow analyses for the Topia Mine and Guanajuato Mine Complex, we have no way to evaluate the likelihood that we will be able to operate our business successfully or that our properties contain a sufficient amount of recoverable reserves. We recognize that if we are unable to generate significant revenues from our mining operations and any dispositions of our properties, we will not be able to earn profits or continue operations, potentially resulting in significant losses in the foreseeable future. At this early stage of our operation, we also expect to face the risks, uncertainties, expenses and difficulties frequently encountered by companies at the early stage of their business development. We cannot be sure that we will be successful in addressing these risks and uncertainties and our failure to do so could have a materially adverse effect on our financial condition. Aside from the professional track record of our Company’s management team, there is no history upon which to base any assumption as to the likelihood that our Company will prove successful and we can provide investors with no assurance that we will generate any net operating revenues or achieve profitable operations.

The fact that we have generated significant revenues for only two years raises some doubt about our ability to continue as a going concern.

We have generated revenues for two years since beginning our mining and exploration activities in Mexico. We may continue to incur greater operating expenses than revenues until all our mining properties are sufficiently developed to sustain commercial production and as a result, we may need to undertake further financing. There can be no assurance that we will be able to successfully mine, develop and explore our mining properties or that viable reserves exist on our properties for extraction. If we are unable to generate sufficient cash inflow to support our business activities during the fiscal year ending December 31, 2008, we may be forced to delay, scale back, or eliminate our mining and exploration activities.

Because we have only recently begun to earn revenue from our business, we may need to raise additional funds for the further exploration and development of our mining claims and to respond to unanticipated requirements or expenses. We do not currently have any arrangements for financing and we can provide no assurance to investors that we will be able to find such financing if it is required. The most likely source of future funds presently available to our Company is through the sale of equity capital. All of these circumstances raise some doubt about its ability to continue as a going concern. The report of the independent registered public accounting firm on our 2007 annual financial statements includes an additional explanatory paragraph that states that conditions or events exist, which raise substantial doubt about our ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of that uncertainty.

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Our properties are in the production, development and exploration stages; however, they have not all been proven commercially viable at this time and there is no assurance that commercially viable quantities of ore will continue to be discovered.

Our mineral properties are in the early production, development, and/or exploration stages and are not all commercially viable at this time. Despite extensive exploration work on our mineral properties and a long history of continuous production at both the Topia and Guanajuato mines, no known bodies of commercial ore or economic deposits have been established to the satisfaction of National Instrument 43-101 on any of the mineral properties. Mineral exploration involves a high degree of risk. There is no assurance that commercially viable quantities of ore will be discovered at our exploration sites, or that our exploration properties will be brought into commercial production. If we are not able to continue to locate sufficient quantities of commercially viable ore and bring our exploration properties into

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commercial production, we may not be able to continue operations and, as a result, our shareholders may lose any investment in our Company.

There is substantial risk that no commercially exploitable minerals will be found at our exploration properties and our business may fail.

The search for valuable minerals as a business is extremely risky. We can provide investors with no assurance that the mineral claims that we have an option to acquire contain commercially exploitable reserves. Exploration for minerals is a speculative venture necessarily involving substantial risk. The probability of an individual prospect having reserves and being commercially profitable is remote and, if a property does not contain any reserves, the funds we have spent or will spend on exploration of such property will be lost.

We are subject to environmental protection legislation with which we must comply or suffer sanctions from regulatory authorities.

If the results of our geological exploration program indicate commercially exploitable reserves and we decide to pursue commercial production of our mineral claims, we may be subject to an environmental review process under environmental assessment legislation. Compliance with an environmental review process may be costly and may delay commercial production. Furthermore, there is the possibility that we would not be able to proceed with commercial production upon completion of the environmental review process if government authorities do not approve our mine or if the costs of compliance with government regulation adversely affect the commercial viability of the proposed mine.

Mineral prices are subject to dramatic and unpredictable fluctuations.

The market price of precious metals and other minerals is volatile and cannot be controlled. If the price of precious metals and other minerals should drop significantly, the economic prospects of the projects in which we have an interest could be significantly reduced or rendered uneconomic. There is no assurance that, even if commercial quantities of ore are discovered, a profitable market may exist for the sale of same. Factors beyond our control may affect the marketability of any minerals discovered. Mineral prices have fluctuated widely, particularly in recent years. The marketability of minerals is also affected by numerous other factors beyond our control, including government regulations relating to royalties, allowable production and importing and exporting of minerals, the effect of which cannot be accurately predicted.

If we cannot locate qualified personnel, we may have to suspend or cease operations which will result in the loss of your investment.

Not all of our directors and officers have direct training or experience in metals exploration or mining and as a result, they may not be fully aware of any of the specific requirements related to working within the industry. Their decisions and choices may not take into account standard engineering or managerial

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approaches that mineral exploration companies commonly use. Consequently, our operations, earnings and ultimate financial success could suffer irreparable harm. As a result, we may have to suspend or cease operations which would result in the loss of your investment.

We cannot assure you that we will successfully acquire additional commercially mineable mineral rights.

Most exploration projects do not result in the discovery of commercially mineable ore deposits and no assurance can be given that any anticipated level of recovery of ore reserves will be realized or that any identified mineral deposit will ever qualify as a commercially mineable (or viable) ore body which can be legally and economically exploited. Estimates of reserves, resources, mineral deposits and production costs can also be affected by such factors as environmental permitting regulations and requirements, weather, environmental factors, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions.

Material changes in ore reserves, grades, stripping ratios or recovery rates may affect the economic viability of any project. Our future growth and productivity will depend, in part, on our ability to identify and acquire additional commercially mineable mineral rights, and on the costs and results of continued exploration and potential development programs. Mineral exploration is highly speculative in nature and is frequently non-productive. Substantial expenditures are required to:

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• Establish ore reserves through drilling and metallurgical and other testing techniques;

• Determine metal content and metallurgical recovery processes to extract metal from the ore; and

• Construct, renovate or expand mining and processing facilities.

In addition, if we discover ore, it would take several years form the initial phases of exploration until production is possible. During this time, the economic feasibility of production may change. As a result of these uncertainties, there can be no assurance that we will successfully acquire additional commercially mineable (or viable) mineral rights.

Risks Associated with our Business

We have limited financial resources and there can be no assurance that we will be able to obtain adequate financing in the future. Failure to obtain such financing may result in a delay or indefinite postponement of further exploration, development and mining of our projects.

We have limited financial resources and we have no assurances that additional funding will be available to be used for working capital, to further develop the Company’s mines and exploration properties, to fulfil certain contractual obligations and to fund corporate overhead costs. Although we have been successful in the past in obtaining financing through the sale of equity securities and, recently, through the sale of minerals, there can be no assurance that we will be able to obtain adequate financing in the future or that the terms of such financing will be favourable, or that our sale of minerals will generate sufficient revenues. Failure to obtain such additional financing could result in a delay or indefinite postponement of mining activities, exploration and development of our projects and the possibility of loss of such properties.

Fluctuation in foreign currency exchange rates may affect our results.

Virtually allThe Company maintains its bank accounts in Canadian dollars, U.S. dollars and Mexican Pesos. The Company expects its revenue will continue to be in U.S. dollars while certain of the goodsits costs are incurred in Canadian dollars and services required by us in connection with our operations in Mexico and costs for the further acquisition of interests in our properties, will be paid for in Mexican pesos or United States dollars. Prices for goods and services offered to members of the mining industry in Mexico, when quoted in Mexican pesos, are, for the most part, adjusted so as to remain competitive with prices offered in respect of the same goods and servicesPesos. An appreciation in the United States and Canada. Nonetheless, an increase in the value of the Mexican pesos or of the United States dollar relative toMexico Peso against the Canadian or U.S. dollar which is not followed by such an adjustment, may affect the ability of our Company to carry out our exploration and development programs and may substantiallywill increase the costs of such programs.carrying on operations. A decrease in the U.S. dollar against the Canadian dollar will result in a loss to the Company to the extent that the Company holds funds in U.S. dollars.

Variations in the market prices of metals may affect our ability to raise funding to continue exploration, development and mining of our properties. In addition, any significant fluctuations in metal prices will impact on our decision to accelerate or reduce our exploration activities.

Factors beyond our control may affect the marketability of any substances discovered. The prices of various metals have experienced significant movement over the last two years, and are affected by numerous factors beyond our control, including international economic and political trends, expectations of inflation, currency exchange fluctuations, interest rates and global or regional consumption patterns, speculative activities and increased production due to improved mining and production methods. The supply of and demand for metals are affected by various factors, including political events, economic conditions and production costs in major mineral producing regions. Variations in the market prices of metals may affect our ability to raise funding to continue exploration of our properties. In addition, any significant fluctuations in metal prices will impact on our decision to accelerate or reduce our exploration activities.

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We are dependantdependent on the services of certain key officers, namely Robert Archer, Kaare Foy and Charles Brown, and the loss of these certain key personnel may have a materially adverse effect on our Company.

While engaged in the business of mining and exploring mineral properties in Mexico, the nature of our business, our ability to continue our exploration of potential projects, and to develop a competitive edge in the marketplace, depends, in large part, on our ability to attract and maintain qualified key management personnel. Competition for such personnel is intense, and we may not be able to attract and retain such personnel. Our growth has depended, and in the future will continue to depend, on the efforts of our key

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management personnel such as Robert A. Archer, our President, CEO and a director, Kaare G. Foy, Executive Chairman, and Charles Brown, our Chief Operating Officer and Raakel Iskanius, our Chief Financial Officer. The loss of any of these people would have a material adverse effect on us. Currently, we have contracts with these key employees. We do not have key-man life insurance.

Conflicts of interest may arise as a result of our directors and officers being directors and officers of other natural resource companies.

Certain of our directors and officers may continue to be involved in a wide range of business activities through their direct and their indirect participation in corporations, partnerships or joint ventures. Situations may arise in connection with potential acquisitions and investments where the other interests of these director and officers may conflict with the interests of our Company. Our directors and officers with conflicts of interest will be subject to and will follow the procedures set out in the applicable corporate legislation.

Risks Relating to an Investment in our Securities

Trading in our common shares on the Toronto Stock Exchange (TSX) is limited and any sporadic trading may make it difficult for our shareholders to sell their shares or liquidate their investments.

The trading price of our shares has been and may continue to be subject to wide fluctuations. Trading prices of our shares may fluctuate in response to a number of factors, many of which are beyond our control. In addition, the stock market in general, and the market for gold and silver exploration companies in particular, has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of such companies. These broad market and industry factors may adversely affect the market price of our shares, regardless of our operating performance.

In the past, following periods of volatility in the market price of a company's securities, securities class-action litigation has often been instituted. Such litigation, if instituted, could result in substantial costs and a diversion of management's attention and resources.

Our By-laws indemnify our officers and directors against all costs, charges and expenses incurred by them.

Our By-laws contain provisions limiting the liability of our officers and directors for all acts, receipts, neglects or defaults of themselves and all of our other officers or directors or for any other loss, damage or expense incurred by our Company which shall happen in the execution of the duties of such officers or directors, as do indemnification agreements between us and our directors. Such limitations on liability may reduce the likelihood of derivative litigation against our officers and directors and may discourage or deter our shareholders from suing our officers and directors based upon breaches of their duties to our Company, though such an action, if successful, might otherwise benefit our Company and our shareholders.

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Investors' interests in our Company will be diluted and investors may suffer dilution in their net book value per share if we issue incentive stock options to our employees, directors, officers and consultants.

We have granted, and in the future may grant, to directors, officers, insiders, and key employees options to purchase our common shares as non-cash incentives to those persons. Such options have been and may in future, be granted at exercise prices equal to market prices, or at prices as allowable under the policies of the TSX. The issuance of additional shares will cause our existing shareholders to experience dilution of their ownership interests.

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Investors' interests in our Company will be diluted and investors may suffer dilution in their net book value per share if we issue additional shares or raise funds through the sale of equity securities.

As our operating expenses currently exceed our revenue from mineral sales, we may be required to issue additional shares to finance our operations and, depending on the outcome of our exploration programs and mining operations, may issue additional shares to finance additional programs and mining operations or to acquire additional properties. In the event that we are required to issue additional shares or decide to enter into joint ventures with other parties in order to raise financing through the sale of equity securities, investors' interests in our Company will be diluted and investors may suffer dilution in their net book value per share depending on the price at which such securities are sold. As at December 31, 2007,2008, there are also outstanding common share purchase warrants and options exercisable into 10,378,07410,623,074 common shares which, if exercised, would represent approximately 11.4%11.5% of our issued and outstanding shares. If all of these shares are exercised and issued, such issuance also will cause a reduction in the proportionate ownership and voting power of all other shareholders. The dilution may result in a decline in the market price of our shares.

We have a history of net losses and there is no assurance that we can reach profitability in the future.

We have a history of losses and there is no assurance that we can reach profitability in the future. We may require significant additional funding to meet our business objectives which include expanding our current mining facilities and operations, further developing our existing exploration properties and acquiring additional mineral properties. We may not be able to obtain additional financing on reasonable terms, or at all, depending on market conditions and the market sentiment towards the Company. If equity financing is required, then such financings could result in significant dilution to existing shareholders. If we are unable to obtain sufficient financing, we might have to dramatically reduce mining and exploration activities, and/or lose control of our projects. We have historically obtained the preponderance of our financing through the issuance of equity as there is no limit to the number of authorized common shares. There are no other plans to obtain financing, if needed, other than through equity financing.

U.S. investors may not be able to enforce their civil liabilities against us or our directors, controlling persons and officers.

It may be difficult to bring and enforce suits against us. We were incorporated under theCompany Act (British Columbia) and continued in the Yukon Territory under the Business Corporations Act(Yukon), and then continued to British Columbia under theBusiness Corporations Act (British Columbia) on July 9, 2004. All of our directors and officers are residents of countries other than the United States and all of our assets are located outside of the United States. Consequently, it may be difficult for United States investors to affect service of process in the United States upon those directors or officers who are not residents of the United States, or to realize in the United States upon judgments of United States courts predicated upon civil liabilities under the United States Securities Exchange Act of 1934, as amended. There is substantial doubt whether an original action could be brought successfully in Canada against any of such persons or us predicated solely upon such civil liabilities.

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Trading of our stock may be restricted by the SEC's "Penny Stock" regulations which may limit a stockholder's ability to buy and sell our stock.

The U.S. Securities and Exchange Commission has adopted regulations which generally define "penny stock" to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. Our securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and "accredited investors". The term "accredited investor" refers generally to institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouse.

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The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document in a form prepared by the SEC which provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction and monthly account statements showing the market value of each penny stock held in the customer's account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from these rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade our securities. We believe that the penny stock rules discourage investor interest in, and limit the marketability of, our common stock.

U.S. investors could suffer adverse tax consequences if we are characterized as a passive foreign investment company.

We may be treated as a passive foreign investment company, or PFIC, for United States federal income tax purposes during the 2008 tax year or in subsequent years. We may be deemed a PFIC because previous financings combined with proceeds of future financings may produce, or be deemed to be held to produce, passive income. Additionally, U.S. citizens should review the section entitled "Taxation-U.S. Federal Income Taxation - Passive Foreign Investment Companies" contained in this annual report for a more detailed description of the PFIC rules and how those rules may affect their ownership of our capital shares.

If we are or become a PFIC, many of the U.S. shareholders will be subject to the following adverse tax consequences:

We do not expect to declare or pay any dividends.

We have not declared or paid any dividends on our common stock since our inception, and we do not anticipate paying any such dividends for the foreseeable future.

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ITEM 4             Information on the Company

A.          History and Development of Great Panther

We were originally incorporated under theCompany Act (British Columbia) in 1965 under the name Lodestar Mines Ltd. Since that time, we have had the following name changes:

-in 1980, to Lodestar Energy Inc.

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- in 1985, to Controlled Environmental Farming Int'l Ltd.

-in 1987, to International Controlled Investments Inc.

- in 1991, to New Age Ventures Inc.

- in January 1998, to Great Panther Inc.

-in October 2003, to Great Panther Resources Limited.

On March 22, 1996 we continued under theBusiness Corporation Act (Yukon). On July 9, 2004, we continued to British Columbia under theBusiness Corporation Act (British Columbia).

We have offices located at Suites 350 and 2100, 1177 West Hastings Street, Vancouver, British Columbia, V6E 2K3, Canada. Our telephone number is 604-608-1766, and our facsimile number is 604-608-1744.

Our Company is currently a reporting issuer under the securities laws of British Columbia, Alberta and Ontario.

On June 18, 1980, our common shares were listed on the TSX Venture Exchange (formerly known as the CDNX, and the Vancouver Stock Exchange). Our trading symbol is "GPR", and until February 27, 2005, we were classified by the TSX Venture Exchange as a Tier 2 company.

On October 2, 2003, we consolidated our common shares whereby every ten common shares before consolidation became one common share after consolidation.

On February 11, 2004, we entered into an option agreement granting our Company the right and option, for a period of three years, to purchase 100% of the ownership rights in and to the Santo Nino Mining Concession located in the Guadalupe y Calvo Mining District, State of Chihuahua, Mexico by making staged cash payments totaling US$165,000 with no underlying NSR and no work commitments. We made cash payments totaling US$20,000 during the year ended December 31, 2004, cash payments totaling US$20,000 during year ended December 31, 2005, cash payments totaling US$30,000 during the year ended December 31, 2006 and cash payments totaling US$95,000 during the year ended December 31, 2007, thus fulfilling all conditions of the option agreement.

On February 28, 2004, we entered into an option agreement granting our Company the right and option, for a period of three years plus 30 days, to purchase 100% of the ownership rights in and to the San Taco Mining Concessions located in the Guadalupe y Calvo Mining District, State of Chihuahua, Mexico by making staged cash payments totalling US$965,000 with no underlying NSR and no work commitments. We made a cash payment of US$50,000 during the year ended December 31, 2004 and a cash payment of US$75,000 during the 2005 fiscal year in accordance with the option agreement. The Company elected not to make the required US$100,000 payment on February 28, 2006 and as a result forfeited all rights and options to the property.

On December 31, 2004, we entered into a letter of intent to acquire up to an 80% interest in certain mineral properties located in the Cerro Colorado Mining District of Pima County in southern Arizona. On February 4, 2005, we elected not to proceed with this proposed acquisition.

On June 13, 2005, we signed an option agreement to purchase 100% of the ownership rights in and to two mining claims designated as the Virimoa Property located in the Topia Mining District, State of Durango, Mexico. Terms of the agreement call for our Company to make four staged cash payments and share issuances totaling US$300,000 and 300,000 shares (100,000 issued), over a period of three years, to the property owner. If the option is exercised, the property owner will retain a 2% NSR, half of which can be purchased for US$1,000,000.

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In May 2005, we received title for an additional 2,184 hectares staked by us in the Guadalupe y Calvo Mining District of southwest Chihuahua State, Mexico, increasing the size of our San Antonio Project to 12,274.7 hectares.

On June 30, 2005, we entered into an agreement to purchase 100% of the ownership rights in and to all the fixed assets, machinery, equipment and Topia Silver-Lead-Zinc Mine located in the Municipality of Topia, State of Durango, Mexico. Upon signing the agreement, we paid a total of US$540,165 to the vendor and to two divisions of Peñoles, the latter being part of the assumed debt. The balance of the purchase price, approximately US$1.76 million, is divided between the vendor (US$946,000 owed) and La Cienega, a division of Peñoles. While the debt to the vendor will be paid in stages over the next three years, the debt to La Cienega will be paid effectively from the proceeds of production as a 10% NSR. We have the option of paying out the debt in full at any time. During 2006, a total of US$628,507 was paid in respect of the Topia Mine debt, being US$328,507 to La Cienega subsidiary of Peñoles and US$300,000 to the vendor, Cia Minera de Caneles y Topia S.A. de C.V (“Caneles”). During 2007, a total of US$1,135,986 was paid in respect of the Topia Mine debt, being US$486,067 to La Cienega and US$646,919 to Caneles. All debt with respect to the Topia Mine has been repaid at December 31, 2007.

On July 12, 2005 we incorporated Metalicos de Durango, S.A. de C.V. and on October 5, 2005 we incorporated Minera de Villa Seca, S.A. de C.V. These two operational subsidiaries of our Company are responsible for the day-to-day affairs and operations of the Topia Mine and Guanajuato Mine respectively.

On October 25, 2005, we signed a formal purchase agreement to acquire a 100% interest in a group of producing silver-gold mines in Guanajuato, Mexico. The total purchase price is US$7,250,000 which includes 1,107 hectares in two main properties, the 1,200 tonne-per-day plant, workshops and administration facilities, complete mining infrastructure, mining equipment, and certain surface rights (real estate). At December 31, 2005, we had paid US$3,650,000 of the total purchase price to the vendor. At December 31, 2006, we had made the final payment for the Guanajuato Properties.

Subsequent to December 31, 2005, we decided not to actively commit to further exploration of the San Taco property and as a result the value of the property as at December 31, 2005, was determined to be nil. As such, the acquisition costs associated with the property ($403,634) was expensed as part of the write down of property cost.

On February 28, 2006, the TSX Venture Exchange elevated our classification from a Tier 2 company to a Tier 1 company.

On March 8, 2006, we purchased a 100% interest in the Arcoiris concession. The agreement required a cash payment of US$20,000 upon signing of the purchase agreement (paid) and additional staggered payments totalling US$280,000 (US$180,000 paid) over a three year period. The 100 hectare Arcoiris concession contains portions of the strike extension and down-dip projection of the Dos Amigos Vein that the Company has already started developing on its own Topia Mine Property. In addition, the new claim contains much of the Don Antonio vein, from which Peñoles produced silver-lead-zinc in the past.

On May 24, 2006, we announced the purchase of 3.88 hectares of land adjacent to the plant at our Guanajuato Silver-Gold Mine Complex from Sociedad Cooperativa Minero Metalurgica Santa Fe de Guanajuato for a total of US $690,425. A payment of US$201,825 was made at the time of signing of the purchase agreement. The remaining US$488,600 was paid during the 5-month period that followed.

On June 1, 2006 we closed a private placement offering (the "Offering"), with Jennings Capital Inc. (“Jennings”), as underwriter, of 5,000,000 units of the Company ("Units"), on an underwritten basis, at a price of $2.00 per Unit to raise gross proceeds of $10,000,000. Jennings elected to exercise the over-allotment option to sell up to an additional 2,500,000 units at a price of $2.00 per unit for gross aggregate proceeds of $15,000,000.

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Each Unit comprises one common share and one-half of one transferable share purchase warrant. Each whole warrant entitles the holder, upon exercise, to acquire one common share of the Company at a price of $2.65 until June 1, 2008. After the expiration of the hold period the Company has the right to accelerate the expiry date of the warrants if the closing price of the Company's common shares on the TSX Venture Exchange exceeds $3.35 for a period of 20 consecutive trading days.

Jennings was paid a commission of $958,750 and received broker warrants equal to 6.5% of the number of units issued under the Offering. Proceeds from the Offering have been and will continue to be used to accelerate the ongoing exploration and development activities on the Guanajuato and Topia Mines, for evaluation of potential acquisitions and for general corporate purposes.

On June 23, 2006, we paid a cash instalment of US$50,000 and issued a second share allotment of 50,000 to its June 15, 2005 option agreement with Minera Aciero del Fuego S.A. de C.V. to purchase the Virimoa Property. The shares were subject to a holding period, which expired October 21, 2006.

On July 7, 2006, Great Panther appointed Mr. A. Michael Turko to its board of directors.

On September 11, 2006, we signed an option agreement to acquire a 100% interest in the Mapimi Project in eastern Durango State, Mexico. The project consists of 17 concessions comprising 3,508 hectares and hosts significant silver-lead-zinc-gold mineralization with excellent potential for a large bulk tonnage deposit. The property is bisected by paved highway approximately 100 kilometres from Peñoles' smelter at Torreon and as such, the infrastructure is considered excellent. Terms of the agreement call for the Company to make 6 staged cash payments and share issuances totalling US$3,000,000 (US$300,000 paid) and 500,000 shares (400,000 issued), over a period of 4 years. If the option is exercised, the vendors will retain a 3% NSR, each 0.5% of which, up to 2%, can be purchased for US$500,000.

On November 13,14, 2006, our common shares began trading on the TSX with the trading symbol “GPR”. Subsequently, we were de-listed from theTSX Venture Exchange.

On January 23, 2009 we closed a private placement offering of 5,125,000 units of the Company (“Units”) at a price of $0.20 per Unit to raise gross proceeds of $1,025,000. Each Unit comprises of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder, upon exercise, to acquire one common share of the Company at a price of $0.35 per share until January 22, 2010. The Company authorized and created 169,050 non-transferable share purchase warrants (the “Finder’s

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Warrants”) to purchase up to 169,050 common shares and entitling the holder to purchase one common share at a price of $0.35 until January 22, 2010.

Topia Mine

Effective February 2,18, 2004, we entered into the Topia Option Agreement, which granted us the right and option, for a term of one year, to purchase 100% of the ownership rights in and to all the fixed assets, machinery, equipment (includes the mill, buildings, offices, houses and quarters for the workers) and Topia Mining Concessions located in the Municipality of Topia, State of Durango, Mexico from Cia Minera des Canelas y Topia, as optionor, by making cash payments totalling US $1,737,084 as follows:

All payments due to the optionor were made as of December 31, 2007.

In addition to the payments to the optionor, we agreed to assume the debt encumbering the property, totalling US $814,594 upon signing of the purchase agreement. The debt owing was secured by the Topia Mine assets. The balance of the debt is repayable out of production from concentrate sales as a 10% Net Smelter Return. After the debt was repaid, there is no further NSR. As of December 31, 2007, the remaining debt balance was fully paid and there were no outstanding conditions to retain title to the property. The Company has surface rights for the land on which the plant sits and mineral rights for the rest of the property.

As at December 31, 2008, there are no Net Smelter Return royalties, or other royalties payable, and there are no work commitments.

On March 8, 2006, the Company purchased a 100% interest in the Arcoiris concession. The agreement requires cash payments of US$20,000 (paid) upon signing of the purchase agreement and additional staggered payments totalling US$280,000 (paid). The Arcoiris concession is a strategic claim that is contiguous with the existing Topia Mine Property. The 100 hectare concession contains portions of the strike extension and down-dip projection of the Dos Amigos Vein that the Company has already started developing on its own ground.

Guanajuato Mine

On October 25, 2005 we signed an optiona formal purchase agreement with Altair Ventures Inc. (“Altair”) whereby Altair has the optionSociedad Cooperativa Minero Metalúrgica Santa Fe de Guanajuato to earn 70% interest in four of our mining claims: San Antonio, Santo Nino, Iran, and Chirpa. The termspurchase 100% of the agreement stipulate that Altair will make three staged paymentsownership rights in a group of producing silver-gold mines in the Guanajuato Mining District. The total purchase price was US$7,250,000, which included 1,107 hectares in two main properties, the 1,200 tonne-per-day plant, workshops and share issuancesadministration facilities, complete mining infrastructure, mining equipment, and certain surface rights. At December 31, 2005 we paid US$3,625,000. In 2006, we paid the remaining balance of US$3,625,000.

On May 15, 2006, we announced the purchase of 3.88 hectares of real estate adjacent to Great Panther totalling US$200,000 and 200,000 shares over a period of 3 years. Overthe plant at our Guanajuato Silver-Gold Mine Complex. The land was purchased from the Sociedad Cooperativa Minero

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Metalúrgica Santa Fe de Guanajuato, the same period, Altair must spendCooperative from which the mines were purchased in 2006, for a total of US$1,000,000 in exploration on the project. Great Panther will be the operator of the exploration program. The agreement required Altair make a cash690,425. A payment of US$30,000 upon201,825 was made at the time of the signing of the purchase agreement (received) and issue 100,000 shares (received).

On May 30, 2007, the remaining balance of US$488,600 was paid in the second half of 2006. The Company chose to forfeit all rights and optionshas clear title to the Virimoa Property locatedproperty. The decision to buy the extra land was taken in order to facilitate any future expansion of the Topia Mining District, State of Durango. No payments were made in 2007 with respectplant facilities and to protect the option agreement.

On August 2, 2007, we paid a cash instalment of US$100,000 with respect to its May 8, 2006 option agreement to purchase the Arcoiris Concession.

On August 28, 2007, issued a second share allotment of 200,000 and on September 6, 2007, we paid a cash instalment of US$200,000 with respect to its September 11, 2006 option agreement to purchase the Mapimi Project. The shares were subject to a holding period, which December 29, 2007.plant site from any possible development nearby.

On December 27, 2007, we signedthe Company purchased an agreement to purchase ofadditional 0.2804 hectares of land immediately adjacent to the plant and below our tailings dam at the Guanajuato Silver-Gold Mine ComplexComplex. The land was purchased from the Sociedad Cooperativa Minero MetalurgicaMetalúrgica Santa Fe de Guanajuato, the same Cooperative from which the mines were purchased in 2006, for a total of US$320,530. Payment will bePayments were made in two instalments, US$45,790 and US$274,740, on March 31, 2008 and June 30, 2008, respectively. The land was primarily purchased in order to protect the area from any possible development. The Company has received clear title to the new property.

As at December 31, 2008, there are no outstanding conditions to retain title to the property. The Company has mineral and some surface rights.

Mapimi Project

On September 11, 2006, the Company signed an option agreement to purchase 100% of the ownership rights to seventeen mining concessions collectively known as the Mapimi Project (formerly “Km 66”) in eastern Durango State, Mexico. In consideration for the right and purchase option the Company must make staged payments totaling US$3,000,000 and issue 500,000 common shares over a four year period. The vendors retain a 3% NSR of which, each 0.5%, up to a maximum of 2%, can be purchased by the Company for US$500,000. As at December 31, 2008, US$800,000 has been paid and 500,000 common shares have been issued.

The Concessions are valid for 50 years from the time of grant and most are valid until 2053.

San Antonio Project

(1) Santo Nino Concessions

Effective February 11, 2004, we entered into the Santo Nino Option Agreement, which granted us the right and option, for a period of three years, to purchase 100% of the ownership rights in and to the Santo Nino Mining Concession located in the Guadalupe y Calvo Mining District, State of Chihuahua, Mexico from Mr. Alfredo Rodriguez Chávez, as optionor, by making staged cash payments totalling US $165,000. All of the payments were made as of December 31, 2007.

On February 2, 2007, we signed an option agreement with Altair Ventures Inc. (“Altair”). Terms of the agreement allow Altair to acquire a 70% interest in the four mining claims named “San Antonio”, “Iran”, “Chirpa”, and “Santo Nino”, by making staggered cash payments of US$200,000, issuing a total of 200,000 Altair common shares to Great Panther and incurring a minimum of US$1,000,000 of exploration expenditures over a three-year period. As at December 31, 2008, US$60,000 and 150,000 shares of Altair have been received in accordance with the agreement.

There is no underlying Net Smelter Return royalty or other royalties and no work commitments on the concession.

(2) San Taco Concessions

Effective February 28, 2004, we entered into the San Taco Option Agreement, which granted us the right and option, for a period of three years plus 30 days, to purchase 100% of the ownership rights in and to

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the San Taco Mining Concessions located in the Guadalupe y Calvo Mining District, State of Chihuahua, Mexico from Carlos Teodoro Ortiz Rodriquez, Abelardo Garza Hernanadez and Minera San Miguel de los Tarros, S.A. de C.V., as optionors, by making staged cash payments totalling US$965,000.

As of December 31, 2005 we had paid US$125,000 in accordance with the above.

Subsequent to December 31, 2005, we decided not to actively commit to further exploration of the San Taco property, and as a result the value of the property as at December 31, 2005, was determined to be nil. As such, the acquisition costs associated with the property (US$403,634) was expensed as part of the write down of property cost and the expense was recognized in the year ended December 31, 2005.

During 2006, the Company elected to discontinue exploration of the San Taco property and abandoned the project.

Virimoa Project

On June 13, 2005, we entered into an option agreement to purchase 100% of the ownership rights in and to two mining claims designated as the Virimoa Property, located in the Topia Mining District, State of Durango, Mexico from Minera Acero del Fuego, S.A. de C.V., as optionor. Under the terms of the option agreement, we were to compensate the optionor of the Virimoa Property by making four cash payments totalling US$300,000 (US$50,000 paid) over a period of three years. In a concurrent agreement, we were required to issue a total of 300,000 common shares (150,000 issued) to the optionor. If we exercised this option, the optionor would retain a 2% NSR, half of which could be purchased by us for US$1 million.

On May 30, 2007, the Company provided notice that it was terminating the option agreement on the Virimoa property in Durango State.

B.           Business Overview

We are an active mining and exploration company listed on the Toronto Stock Exchange (“TSX”), trading under the symbol “GPR”. Our current activities are focused on the mining of precious and base metals from our two wholly owned mines in Mexico. In addition, we are also involved in the acquisition, exploration and development of other properties in Mexico that have a potential for success, based upon the recommendation of our technical director and professional advisors, and the assessment of our board of directors.

We have the following property interests:two primary mining properties: (1) Topia Mine and (2) Guanajuato Mine. We have two primary exploration properties: (1) Mapimi and (2) San Antonio.

C. Primary Mining Properties

(1) Topia Mine

The property is located in northwest Durango State and consists of threefour groups of exploitationmining concessions covering a total area of 1,555 hectares and one group of exploration concessions covering a total of 4,844 hectares, for a grand total of 6,399 hectares. All are owned 100% by our Mexican subsidiary, Minera Mexicana el Rosario, S.A. de C.V.

The largest groupproperty covers most of exploitation concessions, the Topia group,Mining District where mineralization consists of 39 claims covering 1,275 hectares. In addition to the Topia group are two satellite claim groups known as the Las Papas group and the Jarillal group and cover approximately 228 hectares and 52 hectares, respectively. The exploration concessions completely surround the Topia group.

We had conducted extensive work on the Topia property as far back as 2004. The diamond drill program conducted between June 2004 and February 2005 comprised 7,436 metresepithermal silver-gold-lead-zinc veins hosted in 30 surface holes with results evidencing high grade silver-lead-zinc mineralization. Five separate areas were tested with one or two main veins present in each area. The main goal of the program was to test the strike, dip and grade continuity of the veins beyond where they had been mined in the past in order to indicate the exploration potential of the property and to guide the short term underground development work with the goal of successfully re-opening the mine.

In December 2005, we commenced limited production at the Topia Silver-Lead-Zinc Mine in Durango, Mexico.

In March 2006, we reached a significant milestone in becoming a primary silver producer with our first shipment of concentrates from operations. In the second half of 2006, we commissioned our second ball mill increasing the plant’s production from 120 to 170 tonnes per day.

andesitic volcanic rocks. More than a dozen sub-parallel veins are known to exist at Topia and some extend for more than 4 kilometres along strike. During 2007, ongoing exploration development of the mine continued to demonstrate high grades of silver-lead-zinc in relatively narrow veins. In addition, new underground drilling and chip-sampling has demonstrated very good potential on the yet unmined parts of the Don Benito and La Dura veins.

Vein widths are typically narrow, (0.20.2 to 1.0 meter). The Company is successfully utilizingmetre.

Great Panther purchased the mine in 2005 and commenced mining in January 2006. In March 2006, we reached a resuing methodsignificant milestone in becoming a primary silver producer with our first shipment of stope

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concentrates from operations. Production was ramped up steadily until reaching approximately 3,000 tonnes per month in late 2007. Custom milling for local miners helps to utilize the plant’s capacity which operates at approximately 170 tonnes per day.

In the fourth quarter of 2008, we worked with the mine contractors to re-evaluate the mining whereby the waste material adjacentplan and optimize production capability and profitability. While 10 individual mines were closed during this period of re-evaluation, 8 of these were re-opened subsequent to the vein is mined first to provide the waste-rock floor onto which the narrow vein is cleanly mined.

Immediately behind the plant, a decline ramp from the main access adit (tunnel), Level 'A', has intersected the Argentina vein both on and above the Level 2. This is the top priority area foryear-end. Underground development and exploitation dueis now continuing on 12 mineralized vein structures.

In 2009, operating cash flow will be supplemented by revenues from increased custom milling for other small mines in the Topia District. Exploration is expected to its proximitybe restricted mainly to underground development on the mill andhigher grade veins. Little surface drilling is required at present as the presenceCompany has delineated sufficient resources for at least seven years of wider high grade silver-lead-zinc veins. A sub-level above Level 2 has been driven “on-vein” to explore the immediate area around the intersection of the closest surface drill hole (A04-04 from Great Panther's 2004 program that returned grades of 644 g/t Ag, 11.9% Pb and 3.1% Zn over 0.96 metres and 571 g/t Ag, 8.4% Pb, and 2.6%Zn over 0.40 metres in 2 closely spaced veins). The Level 2 and associated sub-level will provide the base for stope preparation and stoping during 2008.

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Deeper drilling from surface of the Argentina Vein was underwayoperation at the end of 2007 to outline the deepercurrent production levels, with potential to support further development ofincrease this with more detailed drilling in the mine to Levels 3, 4 and 5.future.

Production - Topia Mine

The production capacity of the processing plant has been increased to 200 tonnes per day (tpd) with the commissioning of the third and largest mill.

For the year ended December 31, 2008, cumulative ore throughput at the plant wasincreased 5% from 33,605 tonnes at a head grade of 300 g/tin 2007 to 35,318 tonnes in 2008. Metal production increased 10% from 625,726 Ag 0.71 g/t Au, 2.44% Pb and 3.04% Zn, or 21.85eq oz in 2007 to 687,238 Ag Eq per tonne.

Average recoveries of 86.1%eq oz in 2008 exceeding the 650,000 Ag eq oz production target for Ag, 84.3% Au, 89.6% Pb and 82.9% Zn were realized which resulted in the production of 279,441 oz Ag, 643 oz Au, 1,619,560 lbs Pb and 1,867,712 lbs Zn for a silver equivalent production of 625,726 ounces.year.

A summary of production at Topia for 20072008 is as follows:

Production continued to improve as the focus shifted to production stoping with exploratory development of higher grade mining areas of Argentina and Don Benito veins. New higher grade veins were accessed and explored including the east extension of the Cantarranas vein, and the Recompensa, San Gregorio and Rosario veins.

The average ore grade for 2008 was 0.84 g/t gold, 370 g/t silver, 2.72% lead, and 3.41% zinc compared to 0.71 g/t gold, 300 g/t silver, 2.44% lead and 3.04% zinc in 2007. Plant performance was also improved with metal recoveries at 84.9%, 87.1%, 91.1% and 85.6% for gold, silver, lead and zinc respectively, up from 84.3%, 86.1%, 89.6% and 82.9% in 2007. Concentrate quality was also improved with the silver content of the lead concentrate at 6,793 g/t, up from 5,831 g/t in 2007.

As a result of the temporary closure of 10 of the smaller mines, the overall tonnage from the Topia operation decreased by 23% in the fourth quarter, compared to the third quarter. Overall, head grades from the remaining mines increased, resulting in less metal output but doing so at an operating profit. The contracts for all mining contractors were terminated for the fourth quarter. Due to the rugged terrain

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at Topia, access to the mines is provided via tunnels into the sides of the mountains and there are no water issues, so closing individual mines is simply a matter of removing any mobile equipment and they can be reopened at any time.

In addition to the material processed for the Company’s account, an additional 11,14311,729 tonnes were processed for various local miners. Custom milling utilizes excess capacity and provides additional incomeincome.

Cash cost of sales was CDN$6,212,737$6,113,947 for 2007.2008. This includes costs the Company incurred in the direct purchase of minerals from various independent miners.

(2) Guanajuato Mine Complex

The Guanajuato Silver-Gold Mine Complexsilver-gold mine complex in Guanajuato, Mexico consists of three principal mines, the Valenciana, Cata and Rayas. These mines occupy the heart of the 25 kilometre25-kilometre long Veta Madre (Mother Lode) structure that controls the majority of the silver-gold mineralization in the Guanajuato Mine District. SilverThese mines are amongst the most historic and best known in Mexico as silver was discovered in the area in 1548 withand estimates of historical production rangingrange from 700 million to 1.5 billion ounces of silver, and 4 to 7 million ounces of gold.

LimitedGreat Panther purchased the mines in 2005, after many years of under-capitalization, and immediately set out to prove up new resources, rehabilitate the mines and refurbish the plant. Production commenced in June of 2006 and has increased steadily since that time. The plant is presently processing approximately 13,000 tonnes per month but has a capacity to more than double that.

From the fourth quarter of 2005 to the end of 2008, the surface diamond drilling program at Guanajuato was completedhighly successful in identifying and delineating new zones of silver-gold mineralization. These discoveries highlight the lack of previous exploration on the property and the potential for new zones to be found throughout the mine. In addition, the easy access to these zones from existing underground workings and the utilization of existing infrastructure means that these zones can be developed quickly and cost-effectively.

Underground drilling at Guanajuato during the same time frame has mostly been conducted in the 1980'sCata Mine area and 1990's which indicated that silver-gold mineralization continueswas designed to demonstrate the continuity of the Cata Clavo ore body to depth underbelow the existing mine workings. Based upon this work, a "reserve" and "resource" estimation, representing a possibility of 4.7 million ounces of silver and 38,000 ounces of gold was completed in 2000. This resource and reserve estimate is considered to be part of the global resource of 2,750,000 tonnes grading 1.56 g/t Au and 176 g/t Ag, established by the previous owners of the property. Neither of these disclosures follows the requirements for reserves and resources outlined in NI 43-101 and both are regarded as historical in nature.

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Mining at GuanajuatoThe program has been conducted since the year 1600, initially by the Spaniards but since 1939 by a mining cooperative. Production by the latter, from whom the Company bought the property, had dwindled to about 200 tonnes per day by 2005, despite the plant capacity of 1,200 tonnes per day. It stopped completelyextremely successful and will be continued in August of that year and Great Panther took possession of the mine in December 2005.2009.

In 2008, in addition to the Rayas and Cata Mines, mining is currently beingwas conducted in the San Vicente North, Promontorio and Guanajuatito areas, which are accessible by ramps. San Vicente North is adjacent to the southeast side of the old Animas Mine, where surface drilling by Great Panther in 2006 intersected zones of previously unknown high grade silver-gold mineralization. Mining at Guanajuatito is pursuing a zone of high grade mineralization intersected by the Company’s surface drilling in late 2005 and 2006. At Promontorio, development is progressing to access an area from where encouraging drill intersections were reported during 2007. At year-end 2008, mining at San Vicente and the development at Promontorio were temporarily on hold to preserve capital. Mining at the Cata Mine is focused on an area below the previously worked Cata Clavo where recent drilling results indicate that the high grade mineralization extends to a depth of at depth.least 600 metres.

In May 2006,2008, mining at Rayas focused on development and production from the recovery of higher grade remnants and pillars. The latter included the development of the flatter lying vein which splits off from the main Veta Madre in the formerly mined San Pio area of Rayas. Diamond drilling to explore for extensions of, and better define, the Cata Clavo and other higher grade areas will continue from stations located adjacent to current and planned underground workings.

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In fourth quarter of 2008, plant performance was excellent and metal recoveries were the highest to date. The quality of concentrates also improved in this quarter.

In 2009, the Company purchased an additional 3.88 hectaresexpects continued improved production and reduction in unit costs. Mine site exploration was temporarily suspended in the fourth quarter of real estate adjacent2008, but will be resumed as soon as practical, with the focus on the delineation of deep mineralization in the Rayas area. Deep drilling in the Cata Clavo in 2008 was very successful in extending high grade silver-gold mineralization to the plant at the Guanajuato Silver-Gold Mine Complex in order to facilitate any future expansiona depth of 600 metres and much of the plant facilitiesmine’s current production comes from this area.

Principal Capital Expenditures

On August 18, 2008, two underground loaders, known as scooptrams were purchased as part of the mine improvement plan. The units will assist the mine in achieving an expected 40% increase in production within the next 12 months. Capital lease obligations are $436,498 for 2009 and to protect the plant site from any possible development nearby. Great Panther already owns the land occupied by the plant and administration facilities and the Company has now received clear title to the new property.$456,788 for 2010 totaling $893,286.

From Q4 2005 to year-end 2007, the surface diamond drilling program at Guanajuato totaled 14,619 metres in 86 holes and was highly successful in identifying and delineating new zones of silver-gold mineralization. These discoveries highlight the lack of previous exploration on the property and the potential for new zones to be found throughout the mine. In addition, the easy access to these zones from existing underground workings and the utilization of existing infrastructure means that these zones can be developed quickly and cost-effectively.

In December 2007, the Company purchased an additional 0.2804 hectares of land immediately adjacent to the plant and below our tailings dam at the Guanajuato Mine Complex in order to protect the area from any possible development. The Company has received clear title to the new property.

Production - Guanajuato Mine Complex

After a period of preliminary plant and mine rehabilitation, Great Panther commenced production in June of 2006 on easily accessible low grade stockwork zones. The development of high grade zones did not proceed as quickly as originally anticipated however, and onlyanticipated. However, in 2007 these did these reach the point where they were contributing to production. As such, the average head grades at Guanajuato remained low for 2006 and only slowly improved through most of 2007. With increasing production from the higher grade areas of the mines and the vigilant implementation of grade control procedures, the average grade for the mine improved significantly such that in December 2007, grades were more than twice what they were at the start of the year.

The plant at Guanajuato contains three ball mills and themills. The Company initiated production with one ball mill, brought a second on stream in November 2006, and commissioned the third ball mill in 2007. A metallurgical testwork program, directed by a senior Canadian metallurgist, was initiated in the fourth quarter of 2007 to assess the plant upgrades necessary to improve plant recovery and concentrate quality. Improvements are already beingwere experienced in 2008 as a result of this program.

TotalFor the year ended December 31, 2008, cumulative throughput for 2007 amounted todecreased 24% from 203,968 tonnes in 2007 to 155,079 tonnes in 2008. However, metal production increased 58% to 1,122,482 Ag eq oz from 710,903 Ag eq oz in 2007 and exceeded the 2008 target of 1,100,000 Ag eq oz. The mining strategy, which had been changed towards the end of 2007, focused on production from the higher grade, cut and fill stoping in the Guanajuatito North Zone and the Cata Clavo which were supplemented by mining of ore remnants and pillars in the Rayas, San Vicente and Promontorio areas. Strict grade control procedures were implemented throughout which had the impact of limiting ore supply to the mill, but at anmuch improved grades.

The average ore grade of 108for 2008 was 1.40 g/t Aggold and 0.80203 g/t Au, or 4.76 oz of silver equivalent (Ag Eq oz) per tonne of ore mined. The recovered Ag Eq oz mill production totaled 710,903 Ag Eq oz.compared to 0.86 g/t gold and 113 g/t silver in 2007. Plant performance was also much improved with metal recoveries at 78.6% and 83.7% for gold and silver respectively, up from 71.0% and 72.8% in 2007, and concentrate gold and silver contents at 61 g/t and 9,476 g/t respectively, up from 31 g/t and 4,315 g/t in 2007.

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A summary of production at Guanajuato for 20072008 is as follows:

- 25 -As metal prices declined in the latter half of 2008, ore cut-off values increased, forcing several changes to the Guanajuato operations. A number of cost reductions were implemented and the cut-off grade was raised to 225 and 250 g/t Ag equivalent depending on the cost structure of individual mines. Production from the lower grade San Vicente Mine was terminated and production from the Promontorio Mine was also deferred as this area still requires some underground development and was not yet generating an operating profit. Contractors and their equipment were moved from these areas into the higher grade and profitable Rayas Mine. Both San Vicente and Promontorio are close to surface and accessible by ramp, such that no care and maintenance is required and they can be re-opened at any time in the future. In response to the increase in electricity rates, the Guanajuato plant is now operating at a higher daily throughput but only 4 days per week.

Two new 3.5 yard scoop trams were deployed in the higher grade areas of Cata and Guanajuatito at the end of the third quarter of 2008 and, as anticipated, have enhanced development and production efficiency from these areas such that the fourth quarter resulted in higher metal production.

Mining at Guanajuatito focused on the North Zone and, at Rayas, on development and production from the recovery of higher grade remnants and pillars. The latter included the development of a flatter lying vein which splits off from the main Veta Madre in the formerly mined San Pio area at Rayas. Diamond drilling to explore for extensions of, and better define, the Cata Clavo and other higher grade areas will continue from stations located adjacent to current and planned underground workings.

At Guanajuato, total production costs for FY07the fiscal period ended December 31, 2008 totalled CDN$9,903,896.$12,030,276. The Company anticipates 20072009 production costs, on a per silver ounce basis, at Guanajuato to be lower through mine site efficiencies as well as with the achievement of higher grades.

D. Geological Justification of the Exploration Project

Geological exploration at the Guanajuato Mine project is justified broadly based on the following. After a complete review of over 65 years of accumulated geological mapping, detailed sampling, and drilling by the former operator, the Company’s geological team outlined numerous areas in late 2005 for further detailed exploration either by surface or underground core drilling, detailed geological mapping and re-sampling. Key areas that were and continue to be explored are listed below. Core drilling related to immediate mine planning / exploitation is not considered in this review.

San Vicente and Animas: The 2005 review of historic data revealed that underground sampling with economically significant results had not been exploited. As this ore was readily accessible from surface, it was the first area to undergo geological mapping and re-sampling during 2005 and 2006. In 2006, a

Primary Exploration Properties

(1) Mapimi Project

The Mapimi Project (formerly Km66) is an advanced stage exploration project that hosts significant silver-lead-zinc-gold mineralization with excellent potential forand a largerecently discovered molybdenum deposit. The Company’s goal at Mapimi has been to define a bulk tonnage deposit. If continued work proves successful, it could be developed quickly with the goal of defining a new resourcedeposit amenable to open pit mining, thereby significantly enhancing Great Panther's growing portfolio of silver projects. The property consists of 17 concessions in northeast Durango State and is bisected by a paved highway approximately 100 kilometres from Peñoles' smelter at Torreon, so infrastructure is considered excellent.

On September 11, 2006, the Company signed an Option Agreement for the right to earn a 100% interest in the 3,508 hectare property, subject to a 3% Net Smelter Return (“NSR”). Terms of the agreement call for the Company to make staged cash payments of US$3,000,000 and share issuances totalling 500,000 shares, over a period of 4 years. If the option is exercised, the Company can purchase up to 2% of the NSR, for US$500,000 per 0.5% .

On September 28, 2006, the Company filed a NI 43-101 compliant resource estimate for the property prepared by Wardrop Engineering (“Wardrop”) of Vancouver, B.C., which is available for viewingExploration on the Company’s website atwww.greatpanther.com or under the Company’s profile atwww.sedar.com. The independently produced report estimated that the Palmitas and Gloria Zones together contain an Inferred Mineral Resource of 4,969,800 tonnes at a grade of 59 g/t Ag, 0.13 g/t Au, 0.81% Pb and 1.31% Zn. Wardrop calculated that these grades equate to a silver equivalent grade of 139 g/t using commodity prices (based upon 3 year averages) of US$7.70/oz for silver, US$471/oz for gold, US$0.41/lb for lead and US$0.69/lb for zinc and recoveries of 76%, 70%, 80% and 80%, respectively. This resource equates to a total of 22.3 million ounces of silver equivalent.

The resource estimate was based upon a comprehensive exploration program completed on theMapimi property by Coeur d'Alene Mines during 1997 and 1998, wherein they drilled 81 reverse circulation holes (7,515 metres & 3,614 samples) and 22 diamond drill holes (2,983 metres & 900 samples). The geological database also includes 422 surface channel samples. Coeur d'Alene returned the property to the vendor in 1998 due to depressed mineral prices prevailing at that time. The resource includes 2,643,600 tonnes of oxide material at a grade of 51 g/t Ag, 0.11 g/t Au, 0.73% Pb and 0.98% Zn for a silver equivalent grade of 113 g/t and 2,326,200 tonnes of sulphide mineralization at a grade of 68 g/t Ag, 0.16 g/t Au, 0.90% Pb and 1.69% Zn for a silver equivalent grade of 169 g/t. As the grade of sulphide mineralization is 50% higher than the 40-60 metre-thick oxide zone, the Company expects the overall grade of the resource to increase over time as the deposit is extended to depth.

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A first phase exploration program is underway and consistssince 2006 has consisted of detailed geological mapping and re-sampling of outcrops, adits and trenches; an airborne geophysical survey and a ground induced polarization geophysical survey; and a 5,000 metre12,448 metres of core drilling program,in 60 holes. The drilling on the La Gloria and Las Palmitas Ag-Pb-Zn Zones, which commenced in December 2006, has increased the confidence level of the initial resource, resulting in a new Indicated Mineral Resource estimated at 6,585,900 tonnes grading 28g/t silver, 0.09g/t gold, 0.41% lead and 1.14% Zn and an Inferred Mineral Resource at 2,027,900 tonnes grading 34g/t silver, 0.13g/t gold, 0.54% lead and 0.81% zinc.

In March, 2008 Wardrop delivered an updated NI 43-101 compliant mineral resource estimate for the La Gloria / Las Palmitas ZonesDrill-testing of other targets on the Company’s Mapimi. The new estimate effectively upgraded the previous resource of 22.3 million silver equivalent ounces (Ag Eq Oz) from the Inferred to the Indicated category and added an additional 6.3 million Ag Eq Ozproperty resulted in the Inferred category fordiscovery of a global resourceburied molybdenum deposit, named the Bulls-Eye Zone, and of 28.6 million recoverable Ag Eq oz.

The final report itself will be posted onhigh grade Ag-Pb-Zn mineralization in an area named the Company’s website and on SEDAR once it is received from Wardrop (anticipated by early April 2008).North Zone.

(2) San Antonio Project

The exploration and exploitationmining concessions comprising the San Antonio project cover an area of 12,274.711,946 hectares, and are located in the municipality of Guadalupe y Calvo, State of Chihuahua, Mexico, approximately 162 kilometres south-southwest of the city of Hidalgo de Parral, Chihuahua, and 265 kilometres southwest of the city of Chihuahua.

Multiple targets have been identified by Great Panther at San Antonio within a variety of geological settings, including gold-copper veins, breccias and stockworks, as well as silver-lead-zinc veins. A total of 20 separate mineralized structures have been identified to date. Underground sampling by the Company in 2004 along the Santo NinoNiño Zone returned an average grade of 7.75 g/t gold over an average width of 3.03 metres along a 25 metre strike length. Great Panther previously had an option to acquire a 100% interest in the Santo Niño concession and subsequent to year-end has exercised that right and is in the process of transferringtransferred the title. The

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Company now owns a 100% undivided interest in the entire San Antonio package. (During the year,(In 2007, the Company elected to discontinue exploration of the San Taco property, which previously formed part of the project).

On February 2, 2007, As the Company entered into an agreement with Altair Ventures Incorporated by which Altair was granted an optionproject is considered to earnbe a 70% interest in the San Antonio property. Altair may exercise the option by making staged cash payments of US$200,000, (of which $30,000 has been received by the Company during 2007), issuing 200,000 Altair common shares (of which 100,000 have been issued)non-core asset to the Company, and incurring a minimum US$1 million of exploration expenditures over a three-year period. Highlights of 2007 fieldwork are discussed in further detail in section G of this document.it has been optioned to Altair Ventures Incorporated.

Virimoa Project

The two Virimoa concessions are located in the Topia Mining District of Durango, Mexico. The project consists of two mining concessions comprising 148 hectares and hosts a zone of intense alteration, exposed for more than 350 metres. The Virimoa property is situated in the heart of the Sierra Madre Mineral Belt and is centrally located between several significant deposits. It lies approximately 17 kilometres southwest of the Company’s Topia Silver-Lead-Zinc Mine, which can be used for logistical support, and was identified as a result of Great Panther’s ongoing regional evaluation around the mine. In addition, Virimoa is approximately 30 kilometres west of La Ciénega, Mexico’s largest gold mine, currently in production and owned by Compañía Minera Peñoles.

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In March 2005, fieldwork commenced on the Virimoa Gold Property with initial exploration comprising detailed and extensive channel sampling and mapping focused on an exposure of intense iron oxide alteration. This work attempted to better define the controls on mineralization and to trace its extent. As the property has good road access, specific drill targets were generated for a diamond drilling program, the first ever, which was conducted in April, 2005. The diamond drill program outlined the presence of multiple zones of gold-silver-copper-zinc mineralization across a width of more than 250 metres.

On June 13, 2005, the Company signed an Option Agreement to purchase a 100% interest in the Virimoa Property located in the Topia Mining District, State of Durango, Mexico. Terms of the agreement call for the Company to make four staged cash payments and share issuances totaling US$300,000 and 300,000 shares, over a period of three years. If the option is exercised, the property owner will retain a 2% NSR, half of which can be purchased for US$1 million.

There was no work conducted on the Virimoa Project in 2006 as the Company focused its efforts on getting its two mines into production.

On May 30, 2007, the Company provided notice that it was terminating the option agreement on the Virimoa property. No field work was conducted on the property during 2007.

E. Revenues

The Company recognizes revenue from the sale of concentrates based on the market metal prices and mineral content when title to the concentrates transfers to the customer, which generally occurs on the date of delivery. Revenue is recorded grossnet of treatment and refining costs paid to counter parties under terms of the off take arrangements. Revenue from the sale of the concentrates are subject to adjustment upon final settlement based upon metal prices, weights and assays. Adjustments to revenue for metal prices are recorded monthly and any other adjustments are recorded on final settlement.

For the year ended December 31, 2007,2008, we earned $17,487,070$22,445,438 in revenue from our Topia and Guanajuato mining operations. Revenues for 20062007 were $7,069,442.$15,523,094.

Market Prices of Gold

The market prices of gold, silver and other precious metals have historically fluctuated widely and are affected by numerous global factors beyond our control. A decline in such market prices may have an adverse effect on revenues we receive from the sale of minerals. A decline in prices will also reduce our exploration efforts and make it more difficult to raise capital.

Seasonality of our Business

Our business is not expected to be seasonal and our mining and milling operations will be carried out year round.

Sources and Availability of Raw Materials

Other than water and power, both of which are readily available and do not experience any material price volatility, we do not require any raw materials with which to carry out our business.

Patents and Licenses; Industrial Commercial and Financial Contracts; and New Manufacturing Processes

In conducting our business operations, we are not dependent on any patented or licensed processes, technology, industrial, commercial or financial contracts or new manufacturing processes.

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Competitive Conditions

We compete with other mining companies, some of which have greater financial resources and technical facilities, for the acquisition of mineral interests, as well as for the recruitment and retention of qualified employees.

GovernmentalGovernment Regulations

The mining industry in Mexico is controlled by the Secretaria de Economia – Dirección General de Minas which is located and administered from Mexico City. Mining concessions in Mexico may only be obtained by Mexican nationals or Mexican companies incorporated under Mexican laws. Mexican law grants concessions under the denominations of exploration or exploitation. The construction of processing plants requires further governmental approval.

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The holder of an exploration concession is granted the exclusive right to explore a designated area. Exploration concessions are granted for a period of six years from the date of their recording in the Public Registry of Mining. Exploration concessions are not renewable after the end of the initial term. The holder of an exploration concession must file an application for an exploitation concession before the end of the six year term. If the concessionaire does not comply with this requirement, the concession will be cancelled. Exploitation concessions are granted for 50 years from the date of their registration with the Public Registry of Mining to the exploration concession holder as a matter of law if all regulations have been complied with. During the final five years of exploitation, the concession holder may apply for one additional 50 year period, which is automatically granted provided all other concession terms had been complied with.

In accordance with the Federal Duties Law ("LFD") the holder of an exploration or exploitation concession is obligated to pay biannual duties in January and July of each year based upon the number of hectares covered by the concession area. These fees are determined per hectare as follows:

Concessionaires for both exploration and exploitation must perform work each year that must begin within ninety days of the concession being granted. Concessionaires must file each May, proof of the work performed. Non-compliance with these requirements is cause for cancellation only after the Ministry of Mines communicates in writing to the Concessionaire of any such default, granting the Concessionaire a specified time frame in which to remedy the default.

The investment in exploration work must be at least equal to the amount resulting from applying the following table to the number of hectares covered by the exploration concession or by the grouping of mining concessions:

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In the case of groupings of exploration concessions, the additional fee per hectare is applied based on the date of issuance of the oldest concession which is part of the grouping.

The investment in exploitation work must be at least equal to the amount resulting from applying the following table to the number of hectares covered by the exploitation concession or by the grouping of concessions:

There are no limitations on the total amount of surface covered by exploration or exploitation concessions or on the amount of land held by an individual or company. Excessive accumulation of land is regulated indirectly through the duties levied on the property and the production requirements as outlined above.

Mexican mining law does not require royalties to the Government, except for the discovery premium related to National Mineral Reserves, Concessions in Marine Zones and Allotments to the Council of Mineral Resources.

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F.C.          Organizational Structure

As at the date of this annual report, we have five wholly-owned subsidiaries. They are:

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G.D.          Property, Plant and Equipment

We rent executive and administrative office space located at Suite 350 and Suite 2100-1177 West Hastings Street, Vancouver, British Columbia, V6E 2K3, Canada, for the sum of $11,200 per month.

Our Mexican subsidiary, Minera Mexicana el Rosario, S.A. de C.V. (“MMR”), rents office space at Camino del Amanecer 409, Los Remedios, Durango, DGO, Mexico, for the sum of $7,280 Mexican Pesos (approximately $660) per month.

Our Mexican subsidiary Minera de Villa Seca, S.A. de C.V., maintains office space at Hacienda de Bustos, Mineral de Cata, Guanajuato, GTO C.P. 36010. No rent is paid as the premises are owned by MMR.

Our Mexican subsidiary, Metalicos de Durango, S.A. de C.V., maintains office space at Boulevard La Sierra No. 1, Topia, Dgo. 34541. No rent is paid as the premises are owned by MMR.

We believe that our current office arrangements provide adequate space for our foreseeable future needs.

We rent land for the tailings dam located in Topia, DGO, Mexico, for the sum of US$1,060 (approximately CAD$1,051) per month.Mexico.

At present, our activities are focused on the mining, exploration, development and acquisition of precious and base metal properties located in Mexico.

Our Mineral Properties/ProjectsPrimary Mining Properties

1.(1)Topia Mine

a.Acquisition

Effective February 18, 2004, we entered into the Topia Option Agreement, which granted us the right and option, for a term of one year, to purchase 100% of the ownership rights in and to all the fixed assets, machinery, equipment and Topia Mining Concessions located in the Municipality of Topia, State of Durango, Mexico from Cia Minera des Canelas y Topia, as optionor, by making cash payments totalling US $1,426,919 as follows:

The property consists of three groups of exploitation concessions covering a total area of 1,555 hectares and one group of exploration concessions covering a total area of 4,844 hectares. The largest group of exploitation concessions, the Topia group, consists of 39 claims covering 1,275 hectares. Two satellite claim groups known as the Las Papas group and the Jarillal group cover approximately 228 hectares and 52 hectares, respectively. In addition to the exploitation concessions, the Topia 2 group consists of 14 exploration concessions, staked and owned 100% by our Mexican subsidiary, Minera Mexicana el Rosario, S.A. de C.V.

The Topia and the Topia 2 groups areMine is located in the municipality of Topia in the west central part of Durango State, Mexico; the Las Papas group is about 10 kilometres northeast of the town of Topia; and the Jarillal group is near the town of Torance about six kilometres east of Topia.Mexico. Access is gained by travelling north for roughly 200 km on paved highway #23 from Durango through the city of Santiago Papasquiaro, and then west on paved and gravel roads to the town of Topia, a distance of approximately 150 km. Total driving time from Durango City is about 8 hours. Most of the main roads in Topia are paved with concrete or cobblestones, and the town contains numerous stores, restaurants and hotels. A small airstrip on the east side of the town is serviced daily from Culiacán, Sinaloa by small aircraft. Flight time from Culiacán is less than an hour.

The property is located within the Sierra Madre Occidental Mountain Range. The terrain is quite steep and rugged with elevations ranging from approximately 600m600 metres in the river valleys in the western portion

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of the property rising to nearly 2,000m2,000 metres in the northeastern portion of the property where high level plateaus exist. The area is generally dry except during the rainy season when between 20-50cm of rain may fall. Mining operations and most exploration activities (especially underground exploration and development) can be conducted on a year-round basis. Access to the numerous mine entrances is via gravel roads that are narrow in the steep Sierra.

Refer to Exhibit 8.3 - Map of Topia Property.

b. History

Although the discovery of silver in the area dates back to 1538, the existing mine was not built until 1952, when Peñoles consolidated the mining concessions and built road access into the town. Great Panther purchased the mine in 2005 and commenced mining in January 2006.

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c. Geology and Mineralization

The Topia Mine lies within the Sierra Madre Occidental geological province of northwestern Mexico. The Sierra Madre is a prolific belt of mineral wealth hosting many significant gold and silver deposits. The silver-gold-lead-zinc veins of the Topia district have formed along the northeasta northeast-trending series of faults.faults and are of the epithermal type. Mineralized veins are limited to the lower series of andesitic lavas and interbedded pyroclastics known as the Topia andesites. These veins contain ore grade mineralization over a limited vertical extent of between 100 and 300 metres but this mineralized zone extends laterally along strike in individual veins for as much as four kilometres.

The workingsd. Mineral Resource and Mineral Reserve Estimates

There are no known reserves on the site are named according to the vein workedproperty and the name of the portal such as the Madre Vein on the Tres Varones level. Although some of the different veins are connected by crosscuts,proposed program is exploratory in general the individual veins have been developed individually on several levels. This has resulted in numerous adits being used for production purposes.nature.

The Victoria portal is one exception to this, whereby it was designed to be the focal point of the operation for veins east of the Victoria Fault. The Victoria portal is located at the 1,450 metre elevation well below most of the productive stopes. This adit crosses through the Victoria fault within a few hundred metres of its mouth and then extends 1,700 metres to the north intersecting the Oliva, Madre, Cantanranas and Argentina veins, all on the eastern side of the Victoria fault. It is at an elevation well below the mill requiring production ore to be hauled up the steep, narrow dirt roads. The ore dump at the Victoria portal has been washed out and will require some major repairs before it can be used again. This level also drains many of the upper levels with about 10 litres per second of water flowing out the portal. In operating times this water was pumped up to the mill for use as process water. The Victoria adit is currently being rehabilitated in order to facilitate the development of production stopes on the Argentina Vein.

(i) Veta Madre

The principle ore source at Topia has been the Veta Madre (“Mother Vein” or “Mother Lode”). This vein has been mined over a strike length of more than three kilometres. Early work was focused primarily east of the Victoria fault and then later from the Cocinera level west of the Carrizo fault. The most recent work on the Veta Madre is in 15-22 mine area which is accessed by the 15-22 (1,522m elev.), the Tres Varones (1,580m elev.) and Don Benito (1,622m elev.) levels. Although longitudinal sections are available for most of the other veins, the long section of the Veta Madre best shows the lateral extent of the mineralization and mine workings at Topia.

One of the prospects for ore is between the Tres Varones and Cocinera levels of the Veta Madre. This area has good vein widths and is relatively accessible. The longitudinal section of the Veta Madre shows many small remnant blocks that may be extracted from the 15-22 level. However, these small blocks will be costly to define and extract. Of greater interest however is the area to the west with one drill intercept. This intercept is west of a major dyke and about 200 metres west of any workings. There is also potential to the east where mineralization is thought to extend. However, there are no drill intercepts in this area. The Veta Madre is also unexplored in the area of the Victoria fault but the vein appears to be faulted into very small pieces in this area that might not permit efficient mining and may make it difficult to follow by drifting. This section of the vein is also directly below the town of Topia.

(ii) Veta Cantanranas

The Veta Cantanranas is the closest vein to the Veta Madre and in fact splays to the north from the Veta Madre looking toward the east. The Cantanranas vein tends to dip steeply to the south, somewhat different than the almost vertical Veta Madre. It has been stoped between sections 200 West and 2600 East and may extend to the Hormiguera mine at 3200 East. The gaps in stope locations on this vein may be due to the overlap of the Madre vein stopes.

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The combination and then splaying of these two veins makes following them difficult at times and there may be some instances where lost portions of economic veins remain in the walls.

(iii) Mina Argentina

The Argentina vein is located immediately north of the mill and has been exploited between sections 900 East and 1,600 East from six main levels. Vertically the stopes are located between 1,600 and 1,900 metres. Peñoles had postulated potential strike extensions to this vein and some drilling was done to test these theories. Four holes were drilled to the east from surface, in 1986 and in 1987.

The Argentina vein is the northern limit of surface exposure of Topia andesites as rhyolite outcrop is found making exploration of strike extensions difficult. There is potential for the Argentina vein to continue west of the Victoria fault similar to the Madre and Cantanranas veins.

(iv) Animas Vein

The Animas vein is south of the Madre vein and due to the lower surface elevation there seems to be mineralized sections missing due to the level of erosion. Other veins in this area and possible continuations may be the Oliva, La Dura, and Dos Amigos veins. To the north there are other minor veins stoped such as the Santa Cruz and Santa Juliana. Like the major veins all of these veins contain small remnant blocks beside, below and above existing stopes as well as the potential for strike extensions. The numerous faults and splays make following the veins difficult and there is potential for better veins in the wall rock in places where the wrong vein has been followed.

(v) Las Papas

The Las Papas area is located about ten kilometres northeast of Topia. There are 3 known veins with minor underground development and only the Vicente vein has been stoped. At Las Papas the veins occupy both the vein and main fault orientation seen at Topia. Another significant difference in this area is that the Ag:Au ratio is much lower being between 10 and 20 to one instead of the 300 to 1 seen typically at Topia.

(vi)Previous Exploration

Most of the historical exploration on the Topia property has been conducted by tunneling on veins found in either crosscuts or on surface. In the Peñoles era, veins were both mapped and sampled, but in the subsequent ten years little geological work seems to have been maintained. In total over 24 kilometres of horizontal tunnels exist on the various veins and connecting them.

d.Mineral Resource Estimation

On December 28, 2006,During 2008, Wardrop Engineering (“Wardrop”) of Vancouver B.C. delivered a NI43-101 compliantprovided an update to the ongoing mineral resource development at Topia. The 2008 resource estimate has increased over that of 2006, even after considering the last two years of production. Contained silver is up 11%, gold 25%, and lead by 6% while zinc stayed the same. At the current production rate of approximately 36,000 tonnes per year, management expects the resources to support a mine life of at least seven more years. This "rolling resource" is typical for our Topia Silver-Lead-Zinc Mine.underground mines as it is often not cost-effective to define a large resource/reserve in advance of mining.

The new estimate provides an update for the Argentina vein only, while the estimate delivered by Wardrop used a US$60 Gross Metal Value (GMV) cut-off grade rather than silver equivalents due toin 2006 for the high value of base metalsother veins on the property remains unchanged. The breakdown for the Argentina Vein and Other Veins on the property is given in the mineralization, reflecting current commodity prices. Silver equivalents can be calculated by dividingTable below. Wardrop capped the GMV above by the silver price of US$11.56grades and used metal prices and recoveries as indicated in the estimation. Doing this would yield a total Measuredtable in order to categorize the resources.

2008 Resource of 1,185,219oz of Ag Equivalent, an Indicated Resource of 2,440,384oz of Ag equivalent, and an Inferred Resource of 1,418,900oz of Ag Equivalent. The following table indicates the amount of each of the four commodities represented by the Wardrop resource figures.Update:

The Table below uses the terms “Measured Resources”, “Indicated Resources” and “Inferred Resources” We advise U.S. investors that while these terms are recognized and required under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them.U.S. investors are cautioned not to assume that any part of all of the mineral deposits in this category will ever be converted into reserves.

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Payable MetalThe mineral resources are reported at a US$60 RMV cut-off which is based on a US$40/t cost for mining and milling, US$15/t for general and administrative costs, and US$5/t concentrate handling cost.

The resources estimated in 2006 for the other veins on the property came largely from the verification of Peñoles' resources, and are still intact, as mining to date has come from new mine development on these veins. (Resources for the "other veins" were estimated by Wardrop Resource:using metal prices as reported in the 2006 report.) When combined with the 2008 Argentina resource, the new total contained metal for each of these categories is shown in the Table below.

Contained metal (all veins):

In orderDue to bring these resources into a reserve category, Wardrop would have to conduct a more detailed analysisthe steep topography and the nature of the costsnarrow veins at Topia, surface drilling is typically widely spaced and is used as a guide for underground development by locating and confirming structural continuity and grade, while development by drifting, sampling and some underground drilling along the Topia Mine.vein defines the measured and indicated mineral resources. As such, much of the surface drilling is used to determine additional Exploration Potential for the veins. This has been estimated in-house for the Don Benito and Argentina veins to demonstrate the potential mineral resources in these areas prior to mine development. According to NI 43-101, Exploration Potential must be reported as ranges and these are presented in the following table. The Exploration Potential is conceptual in nature and based on wide spaced exploration drilling at Argentina, and exploration drilling and two development levels at Don Benito. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the Exploration Potential being delineated as a mineral resource.

Exploration Potential:

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These tonnages include some of the drilling and development completed during the spring of 2008 (see Great Panther’s news releases dated February 19, June 2 and June 23, 2008) and could represent another 4-5 years of mine life with further definition. The Argentina vein remains open to expansion at depth and to the east for approximately 500 metres below old mine workings.

e.Exploration History

The Company has conducted extensive work on the Topia property as far back as 2004. The diamond drill program conducted between June 2004 and February 2005 comprised 7,436 metres in 30 surface holes with results evidencing high grade silver-lead-zinc mineralization. Five separate areas were tested with one or two main veins present in each area. The main goal of the program was to test the strike, dip and grade continuity of the veins beyond where they had been mined in the past in order to indicate the exploration potential of the property and to guide the short term underground development work with the goal of successfully re-opening the mine.

As known from previous mining, three of these areas (Las Trancas, Don Benito and Hormiguera) represent portions of the same veins that extend for more than four kilometres across the property, while the two other areas represent parallel vein systems approximately one kilometre to the northwest (Argentina) and two kilometres to the southeast (El Rosario). Several other veins are known and have yet to be drilled.

The intersections obtained are typical of vein deposits in general and the widths and grades are consistent with those mined in the past at Topia. Based upon the success of the drilling in the Argentina area,exploration program, the Company beganexercised its option to purchase the rehabilitation ofTopia Mine in July 2005. Once access was gained to the underground workings, here. Other areas such as El Rosario are proving to have similar potential. The drill program provided the Company with sufficient confidence that the veins have excellent continuityunderground mapping, sampling and therefore the potential to provide resources for a renewed mining effort.

Along the Animas vein, on Level 1550, underground channel sampling returned 1.62g/t Au, 338g/t Ag, 2.28% Pb, 1.53% Zn over 30 metres strike length, withdiamond drilling became an average width of 0.31m (average of 16 samples); and 1.4g/t Au, 429g/t Ag, 1.14% Pb, 6.23% Zn over 35 metres strike length, with an average width of 0.55m (average of 11 samples).ⁱⁱⁱ

In 2006, mine development continued along the Dos Amigos Vein system. New sampling of this vein from the east end of the ramp has returned average grades of 924 g/t Ag, 21.78% Pb and 16.16% Zn along a 30 metre strike length. Although the vein has an average width of only 0.21 metres along this length, we are use a mining method called 'resuing' which reduces dilution and maximizes the grade of the material being recovered.

Along strike of this high grade mineralization and to the northeast, lie the old La Dura Mine workings that areintegral part of the Company’s property. Recent sampling from the Dos Amigos Veinongoing exploration program at Topia. In December 2005, we commenced limited production at the southwest endTopia Silver-Lead-Zinc Mine in Durango, Mexico.

In March 2006, we reached a significant milestone in becoming a primary silver producer with our first shipment of La Dura has returned 475 g/t Ag, 1.01 g/t Au, 3.92% Pbconcentrates from operations. In the second half of 2006, we commissioned our second ball mill increasing the plant’s production from 120 to 170 tonnes per day.

During 2007 and 5.09% Zn over a strike length of 89 metres and an average width of 0.36 metres. Slightly lower grade mineralization continues for another 108 metres to the northeast, returning average grades of 265 g/t Ag, 1.19 g/t Au, 0.62% Pb and 1.21% Zn over an average width of 0.52 metres.

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There has been no underground2008, ongoing exploration development for approximately 200 metres between the southwest end of the La Dura Mine and the ramp mentioned above, so the potential to find more high grade mineralization is considered excellent. Collectively, the aforementioned results represent more than 750 metres of strike length along the Dos Amigos Vein and the mineralization is open to depth along this entire distance. Continuing development on this vein system will include stations for an underground drill program, which will enable the Company to more easily and quickly determine the overall potential of the vein and to delineate a new resource that can be added to the mine plan.

The Animas vein has continued to demonstrate good gold grades. For example, hole ST07-36, returned 2.58 g/t Au over 2.50 metres, while individual samples in other holes returned assays up to 12.70 g/t Au.

During 2006, mining on the Animas vein was conducted on three levels, 1420, 1430, and 1550 (note that levels are named according to metres above mean sea level, so level 1550 is 130m higher than level 1420). Underground sampling from levels 1430 down to 1380 showing excellent gold grades was reported on October 12, 2006 and the surface drilling is designed to test the vein along strike and to depth. Drill holes ST06-030, 031, and 032 targeted the Animas vein east of the 1430 workings, and below the 1550 level. All three holes were successful, with the best intersection in ST06-032 of 2.43g/t gold, 315g/t silver, 0.9% lead, and 9.0% zinc over 0.4m (see summary of results in the table below. Drill hole ST06-033 was a test of the Animas vein at depth, and intersected the vein at approximately the 1300 metre level, well below existing workings, with 2.85 g/t gold and 42.9 g/t silver over 0.55m.

Approximately 350 metres along strike to the east of these holes, ST07-034 and 035 intersected the Animas vein at the 1400 level in a previously untested area, returning low grade values in both drill holes. A further 200 metres east, hole ST07-036 intersected a silicified breccia zone returning 2.58g/t gold over 2.50 metres, as mentioned above. This brecciation likely occurs along the Animas vein structure, and will be further drill tested, both for the extent of the brecciation, and veining.

Hole ST07-037 was drilled east of a major fault and no recognizable structures were identified. ST07-038 did not reach its primary target, the Veta Madre, but did intersect a parallel, although very narrow (0.08m) structure, potentially the Hipolito vein, which returned 0.57g/t gold, 1080g/t silver, 2.8% lead, and 1.1% zinc. Due to the high silver grade of this vein, it will be tested farther along strike to see if it widens out.

In addition to the Animas vein drilling, the eastern and depth extent of the Veta Madre was targeted by two holes. Hole ST07-039 was lost due to bad ground but ST07-040 intersected the Veta Madre, returning 5.08g/t gold, 149g/t silver, 2.6% lead and 0.8% zinc over 0.6m.

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Highlights of Surface Drilling:

During 2006, ongoing westward development of veins continued to demonstrate high grades of silver-lead-zinc throughsilver-lead-zinc. In addition, new underground sampling, with deeper portions of the Madre, La Dura,drilling and Animas veins increasingly rich in gold with the westward development of the mine.

Systematic samplingchip-sampling has demonstrated very good potential on the deeper portionsyet unmined parts of the Animas vein demonstrated high grades of silver-lead-zinc and returned the following results (mine levels are named according to their elevation above mean sea level; therefore level 1380 is 50 metres below level 1430):

Level 1430: 1.47g/t Au, 186g/t Ag, 2.02% Pb, 4.43% Zn over 25 metres strike length with an average width of 0.19m (average of 5 channel samples).

Level 1420: 3.03g/t Au, 878g/t Ag, 3.19% Pb, 2.74% Zn over 38 metres strike length with an average width of 0.32m (average of 13 channel samples).

Level 1400: 5.08g/t Au, 679g/t Ag, 7.07% Pb, 6.32% Zn over 45 metres strike length with an average width of 0.42m (average of 16 channel samples).

Level 1390: 6.84g/t Au, 279g/t Ag, 2.17% Pb, 0.19% Zn over 15 metres strike length with an average width of 0.5m (average of 4 channel samples).

Level 1380: 5.92g/t Au, 304g/t Ag, 4.35% Pb, 12.72% Zn over 10 metres strike length with an average width of 0.45m (average of 3 channel samples).

The increase in gold grades in some of these veins will obviously enhance the economics of their development, particularly as historical gold grades at Topia have averaged less than 1.0g/t.

In addition, many of the sampled sections reported above represent the complete length of the current exposure, so the potential to extend the development of these veins is wide open. The deeper levels of the Animas vein are virtually untouched over a strike length of 1,000m and will be drill tested over the next six months.

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Along the Animas vein, on Level 1550, underground channel sampling returned 1.62g/t Au, 338g/t Ag, 2.28% Pb, 1.53% Zn over 30 metres strike length, with an average width of 0.31m (average of 16 samples); and 1.4g/t Au, 429g/t Ag, 1.14% Pb, 6.23% Zn over 35 metres strike length, with an average width of 0.55m (average of 11 samples).

Along the La Dura vein, mine development on Level 1495, returned 4.96g/t Au, 242g/t Ag, 8.32% Pb and 2.42% Zn over 38 metres strike length with an average width of 0.49m (average grade of 16 samples). Exploration potential exists above Level 1495 for approximately 150 metres vertical as this part of the La Dura vein was not previously developed.

The deepest access level on the Madre vein is the 1420 Level where sampling returned average grades of 5.7g/t Au, 49g/t Ag, 0.17% Pb, 0.18% Zn over a horizontal length of 45 metres and an average width of 0.32m (average grade of 12 samples). Further sampling is being completed with the recent cleaning and safety inspection of this level.

Immediately behind the plant, a decline ramp from the main access adit, Level 'A', has intersected the western edge of previous stoping on the Argentina vein. This is the top priority area for development and exploitation due to its proximity to the mill and the presence of multiple parallel, thick and high grade silver-lead-zincknown veins. A cross-cut from the ramp intersected the main vein wherein 3 channel samples returned grades of 2,060-2,640 g/t Ag and 29-36% combined Pb-Zn over 1.0 metre. The vein in the end of the westernmost stope is still approximately 1.0 metre wide and consists of quartz-barite with bands of galena and sphalerite. The distance from here to the closest surface drill hole (A04-02 from Great Panther's 2004 program that returned grades of 708g/t Ag, 4.0% Pb and 4.2% Zn over 1.8 metres) is approximately 300 metres, part of which contains former reserve blocks of Peñoles (now classified as Historical Resources). This represents a large block of potential high grade resources and will be targeted by an underground drill program.

An underground diamond drilling program in the deeper portions of the La Dura vein also is continuing to demonstrate high grades of silver, gold, lead and zinc, up to 55.7 oz/t silver equivalent* (Ag Eq). In particular, gold grades up to 7.21g/t in the drilling are significantly higher than the historical average (less than 1.0g/t) for the Topia Mine.

Eleven principal mineralized vein structures have been defined on the Topia Mine property, of which development and exploitation is presently taking place on five, including La Dura. Surface and underground drilling over the course of 2007 will target nine of the eleven veins in an effort to expand the Topia Mine mineral resource and the number of veins being developed and exploited. The nine-hole, 637.3 metre underground drilling program at La Dura is part of the plan to test a 165 metre vertical interval (between the 1420 and 1585 levels) along a 600 metre strike length. These holes represent a 200m horizontal by 50m vertical portion of that block. To date, there has been no exploitation below the 1625 level in this part of the La Dura Mine. (Note: Mine levels are named according to their elevation above mean sea level and the town of Topia sits at an elevation of 1650 metres, such that most mine levels are accessed via adits from the sides of the mountains).

Underground drill holes UT06-001 to 005 tested the La Dura vein and a series of splays and parallel veins within a zone complicated by cross faulting. One such vein in the hanging wall, called La Dura Alto, is the most consistent of these in terms of grade and continuity. Significant results from the first five holes include 0.6m @ 5.96g/t gold, 191g/t silver, 4.35% lead and 4.85% zinc (29.9 oz/t Ag Eq) in UT06-001; and 1.3m @ 3.03g/t gold, 194g/t silver, 3.51% lead and 11.4% zinc (41.0 oz/t Ag Eq) in UT06-004, both on the main La Dura vein.

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Holes UT06-006 to 008 successfully located the La Dura vein, with continuing high grades, east of a major fault and 85 metres below previous workings. Significant results from these holes include 0.55m @ 2.88g/t gold, 609g/t silver, 5.84% lead and 11.1% zinc (55.7 oz/t Ag Eq) in UT06-006; and 1.05m @ 1.24g/t gold, 539g/t silver, 10.1% lead and 4.21% zinc (39.0 oz/t Ag Eq) in UT06-008 (farthest east). Drill hole UT06-009 was used as an engineering hole and as such was not oriented to intersecting veins.

Highlights of La Dura Underground Drilling:

*Note: Silver Equivalents (Ag Eq) were calculated using prices of US$575/oz for Au, US$12.00/oz for Ag, US$0.60/lb for Pb and US$1.50/lb for Zn; and recoveries of 85%, 87%, 90% and 87%, respectively.

Production from the Argentina vein has begun on a small scale and will build as the veins are developed on multiple levels, allowing the Company to achieve its production targets.

Ongoing drilling from surface and underground in 2007 continued to extend high grade silver, gold, lead and zinc mineralization along strike and to depth on several of the veins that are currently being mined.

Surface drilling throughout the last two quarters of 2007 tested the down-dip and strike extensions of six veins. Highlights include down dip drilling on the Cantarranas vein, in hole ST07-061, which intersected 1,950g/t silver, 1.7g/t gold, 2.7% lead, and 3.01% zinc over 0.35 metres; and the strike extension of the Madre vein, in hole ST07-044, which intersected 502g/t silver, 3.78g/t gold, 3.91% lead, and 5.47% zinc over 0.40 metres.

Underground drilling in the 4^th quarter of 2007 focused on the re-discovered Don Benito vein and was highlighted by an intersection of 749g/t silver, 5.67g/t gold, 3.71% lead and 4.96% zinc over 1.27 metres, in hole UT07-011, including a higher grade portion of 1,400g/t silver, 6.84g/t gold, 4.54% lead and 3.43% zinc over 0.55 metres. Holes UT07-010 to 013 (results compiled in table below) were allcontinued into early 2008. Great Panther has now drilled from the

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same site along the Dos Amigos ramp area at approximately the 1500 level in a fan section, and intersected both the La Dura and the Don Benito veins (see maps on the company website atwww.greatpanther.com). (Note: Mine levels are named according to their elevation above mean sea level and the town of Topia sits at an elevation of 1650 metres, such that most mine levels are accessed via adits from the sides of the mountains).

Highlights of recent underground drilling:

Underground development on the Don Benito vein, accessed from La Dura level 1585, has opened 70 metres of continuous vein. Development to the east along 40 metres of strike returned 276g/t silver, 0.39g/t gold, 4.32% lead, and 2.69% zinc with an average width of 0.61 metres. Development to the west along 28 metres of strike returned 105g/t silver, 0.82g/t gold, 0.84% lead, and 2.48% zinc over an average width of 0.49 metres. Development along the vein is continuing.

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From a review of historic maps, and re-mapping of old workings, the Don Benito vein is open from the 1585 level upward to at least the 1700 level and, considering the recent underground drilling along Don Benito from the 1500 level, it is open downwards to at least the 1450 level. This implies a vertical extent of at least 250 metres. The known strike extent of Don Benito is approximately 300-350 metres. Underground drilling is continuing on the 1500 level, and this month several surface drill holes will test the Don Benito vein between the 1585 and 1700 levels.

Underground development and exploitation is presently taking place on eight mineralized vein structures on the Topia Mine property. This includes initial development along the Don Benito vein, continued development along the Recompensa, Argentina, Madre, Cantarranas, La Dura, and Animas veins and commencement of development along the San Gregorio vein.

Surface drilling during the second half of 2007 tested the dip and strike extent of the Madre, La Dura, Animas, Cantarranas, and Oliva veins. During 2007 a total of 3315,206 metres in 62 surface holes and 2,732 metres in 48 underground holes.

f. Total Costs Incurred to Date and All Planned Future Costs

As at December 31, 2008, total costs incurred on mineral properties, plant and equipment were completed totaling 7,422 metres. All$8,975,000. Total costs incurred on exploration were $8,201,000.

Planned costs for 2009 are approximately $0.8 million for capital investment and exploration.

g. Source of Power and Water that can be Utilized at the Property

Topia is connected to the national power grid. Artesian springs located above Topia provide water year-round by gravity to the town. Most of the surfacelower mine portals discharge water and underground holes presented herein will be includedthe Victoria adit has provided enough water to supply milling activities in the new resource report being prepared by Wardrop Engineering and expected in April, 2008.past.

In the eastern portion of the Perla area, on the Madre vein, five surface holes were completed to test the dip and strike extension of mineralization towards the Carrizo fault. Drill hole ST07-044 intersected 502g/t silver, 3.78g/t gold, 3.91% lead, and 5.47% zinc over 0.40 metres, while ST07-040 intersected 149g/t silver, 5.08g/t gold, 2.6% lead and 0.8% zinc over 0.6 metres. The deeper holes, ST07-045 to 047, intersected the Madre vein but with modest gold and lower silver, lead and zinc values.

The down dip extension of the Cantarranas vein was tested in the Jicara area. Two holes were drilled with ST07-061 intersecting 1,950g/t silver, 1.7g/t gold, 2.7% lead, and 3.01% zinc over 0.35 metres, while the more easterly ST07-062 intersected an old stope. Further drilling is planned for 2008 as access is facilitated by the use of a short ramp from existing infrastructure.

Three holes were drilled to test the down dip extension of the La Dura vein below the 1585 level. The drill holes reflect the grade of the underground development in this area, with the best results from ST07-042, which returned 307g/t silver, 1.88g/t gold, 0.13% lead, and 0.48% zinc over 0.3 metres.

Further west along the La Dura vein, in the Dos Amigos area, holes ST07-056 & 057 intersected the La Dura vein at about the 1400 level, and also discovered a new vein named the La Dura Alta. The best results are from ST07-057 where the La Dura Alta vein returned 1,040g/t silver, 2.27g/t gold, 0.3% lead, and 0.5% zinc over 0.2 metres, and the La Dura vein returned 39g/t silver, 5.25g/t gold, 0.3% lead, and 0.35% zinc over 0.35 metres. Underground development and exploitation in this area is ongoing from the 1420 level and 1500 level ramp.

Both the surface and underground drilling in the western part of the Topia District continue to demonstrate higher gold grades in addition to silver, lead and zinc. Given the typically narrow veins at Topia, the higher gold content makes a significant contribution to the value of the mineralization.

Highlights of the recent surface drilling are summarized in the table below and a plan map of veins and mine areas can be found on the Company website. Presently the surface drilling is testing both the Santa Cruz and Argentina veins in the northern part of the district and underground development is also continuing in this area. Following this, the surface drill will test the Cantarranas vein in the Jicara area, following up on ST07-061, and will further test the Don Benito vein. Results of this drilling will be reported when assay data is compiled.

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Highlights of recent surface drilling:

2.(2) Guanajuato Mine Complex

a.Acquisition

On October 25, 2005 we signed a formal purchase with the Sociedad Cooperativa Minero Metalúrgica Santa Fe de Guanajuato to purchase 100% of the ownership rights in a group of producing silver-gold mines in the Guanajuato Mining District.

b.Location and Accessibility

The Guanajuato Mine Complex is located alongside the city of Guanajuato, 380 km northwest of Mexico City in central Mexico. Guanajuato is situated in the Central Plateau of Mexico in the mountains of Sierra de Guanajuato at elevations ranging from 1,600 to 2,200 metres. The principle claim group is centred at approximately 21^o03’N latitude and 101^o15’W longitude (NAD 27, UTM coordinates

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2327500N, 265500E). The Guanajuato Mine Complex consists of 1,107.28Ha,1,107.28 hectares, made up of 28 non-contiguous concessions.

Excellent access is availed to Guanajuato with an international airport 30 minutes to the west near Silao/Leon. Toll free-waysfreeways skirt the city linking it with Leon, Guadalajara, and Mexico City. All of the facilities of the Guanajuato Mine are accessed from city streets.

The Guanajuatito ramp provides easy access to the mineralization throughout the Guanajuatito-Encarnación area where only a minor amount of mining has taken place in the past.

c.Refer to Exhibit 8.4 – Map of Guanajuato Property.

b. History

The Guanajuato Mining District was founded in 1548.

• 1548: The1548, with the first discovery of silver veinin the area. Estimates of historical production ranging from 700 million to 1.5 billion ounces of silver, and 4 to 7 million ounces of gold.

  Mining at San Bernabé (La Luz)Guanajuato has been conducted since the year 1600, initially by the Spaniards and subsequently by Mexican, British and American companies. Since 1939, the property now owned by Great Panther was discoveredowned and operated by a local mule driver. Silver oreMexican mining cooperative. Production by the latter, from whom the Company bought the property, had dwindled to about 200 tonnes per day by 2005, despite the plant capacity of 1,200 tonnes per day. Grades had dropped and the cooperative was hand minedlosing money. Operations stopped completely in August of that year and transported by mule to Zacatecas to be milled.

• 1550: Juan de Rayas discovered the Veta Madre system at the site where the present day Rayas shaft is located. This triggered an exploration rush which saw the discoveryGreat Panther took possession of the La Valenciana, Tepeyec, Mellado, Catamine in December 2005.

  c. Geology and Sirena silver occurrences.

• 1726: Production was very limited in early years as the method of extracting ores was the fire method where the rock face was heated with a fire and then quickly quenched with water, the rapid cooling resulting in the shattering of the rocks. It was not until gun powder was introduced by Don Jose de Sardeneta y Legaspi in 1726 that production became significant. Construction began on the Rayas shaft.

d.Mineralization

Three major fault systems with associated mineralization occur in the Guanajuato Mining District; La Luz, Sierra, and the Veta Madre systems, the largest being the 25 km long Veta Madre. The principal mineralizing event is thought to be late Oligocene in age +27 Ma, which has created three identifiable stages of mineralization according to Clark (2005); “1) pre-ore, 2) ore, 3) post-ore and the ore can be divided into three zones; upper ore, lower ore, and deep ore.” The upper ore is defined as being >2,100m a.s.l., lower ore is found between 2,100m and 1,700m a.s.l. and deep ore as being <1,700m a.s.l.

All historic descriptions of the mineralization contain the term “ore”. In most cases, the terminology applies to previously mined mineralization. Historic authors have generally agreed that there are three separate zones of mineralization; upper ore, lower ore and deep ore. Normally this categorization refers to areas now mined out but in other cases, it refers to horizons of un-mined material that may contain mineralization that would not be considered as “ore” as defined by NI 43- 101Standards of Disclosure for Mineral Projects adopted by the securities regulators in Canada. The authors have chosen to use the same language to be consistent with the historic documentation and are not implying that the mineralization will ever become ore that can be mined at a profit.

The Veta Madre systems strike northwesterly and dip 45⁰ to 65⁰SW. The bulk of the mining production has come from a five-kilometre section of the Veta Madre stretching between the Valenciana shaft of our Company’s ground in the northwest to the Sirena shaft on Peñoles ground in the southeast. In this five kilometre area, the vein stockwork averages approximately 20m20 metres in width but can be as wide as 90m.90 metres. Most of the historic production has come from the economically important lower ore level (2,100m(2,100 metres to 1,700m1,700 metres a.s.l.) and is typically associated with faults and both footwall and hanging wall stockwork vein systems.

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The argentiferous mineralization is hosted in quartz veins with gangue mineralogy of quartz, calcite, pyrite, adularia, and sericite. The principal silver bearing mineralization is acanthite (argentite), aguilarite and naumannite while gold occurs as free gold and as electrum. The gold to silver ratios vary from approximately 1:70 to 1:200. Base metal mineralization is not common; when it occurs it is observed as chalcopyrite, sphalerite and galena. The exception is the “deep ore” in the Rayas mine which is associated with chalcopyrite and galena.

The economic mineralization is hosted in quartz-carbonate-adularia veins and stockwork systems with identifiable “ore-shoots” that carry the bulk of the economic mineralization. The ore shoots are discontinuous, 10-40m10-40 metre wide and typically equal in vertical dimensions to strike length. The discontinuous nature of the ore-shoots has made ongoing underground and surface exploration challenging and not necessarily well understood. On average, approximately 20% of the volume of the individual veins becomes ore. The higher grade portions of the veins range in width from less than a meter up to 90m in width, historic average grade in the Veta Madre are 450g/t Ag and 2.5g/t Au.

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e.d.Mineral Resource and Mineral Reserve Estimates

There are currently no reserve or resource estimates conforming to NI 43-101Standards of Disclosure for Mineral Projects adopted by the securities regulators in Canada. The most recent,A noncompliant, resource estimate was made in 2000 by Sociedad Cooperativa Minero-Metalurgica Santa Fe de Guanajuato with most of the resource located in the lower levels of the mine. Since purchasing the mine, Great Panther has been compiling information from its own drilling and sampling and has estimated mineral inventories in areas of the mine where it is working or plans to work. While these mineral inventories are used for mine planning, it is often not cost-effective to define these in the detail required to make them NI43-101 compliant. The Company is, however, working on a new compliant resource estimate for the Cata Mine area, expected in March-April of 2009.

f.e.Exploration History

Since acquiring the Guanajuato Mine in 2005, Great Panther has completed 88 surface drill holes totaling 15,222.0 metres and 37 underground holes totalling 7,791.00 metres.

The Company commenced a surface diamond2005 drilling program in 2005. The drilling program intersected bonanza grade silverwas completed under and above average gold withinnorthwest of the Guanajuatito ramp along the trend of the Veta Madre, vein structure. Highlightsapproximately one kilometre northwest of the program include 692 g/t silver and 5.17 g/t gold over 5.8 metres and 1,096 g/t silver and 4.15 g/t gold over 2.5 metres.

The drilling, comprising 1,163.3 metres in six holes,famous Valenciana Mine (owned by Great Panther). It was designed to duplicate and surround a lone 1989 drill hole (#317) that intersected a 5.35 metre wide zone grading 3.34 g/t Au and 81.5 g/t Ag, including 10.65 g/t gold and 165 g/t silver over 1.55 metres. The drilling was completed underprogram intersected bonanza grade silver and northwest of the Guanajuatito ramp along the trend ofabove average gold within the Veta Madre approximately one kilometre northwest of the famous Valenciana Mine (now owned by Great Panther).

The holes were drilled on four section lines at 50 metre intervals, covering a strike length of 150 metres. Two styles of mineralization were noted in the drill holes: silver-gold mineralization in the Veta Madre itself and a previously unrecognized zone of gold-arsenic-antimony mineralization in the hanging wall. Both zones are epithermal in nature, and likely represent separate pulses of mineralization.

In this part of the mine complex, the Veta Madre is manifested as a silica breccia at the contact between the hanging wall diorite and the footwall sediments. Hole GTTO-05-004 was drilled to test the zone of mineralization in hole 317, mentioned above. Hole 004 intersected a 7.3 metre wide vein breccia, interpreted as the Veta Madre, of which 5.8 metres (4.1 metre true width) assayed 692 g/t silver and 5.17 g/t gold. Fifty metres along strike to the southeast, hole GTTO-05-005 intersected a 3.4 metre thick section of the same Veta Madre breccia, with a 2.5 metre (1.77 metre true width) portion assaying 1,096 g/t silver and 4.15 g/t gold. A further 50 metres along strike to the southeast, hole GTTO-05-006 intersected 7.5 metres of the Veta Madre breccia with a 1.5 metre (1.06 metre true width) portion assaying 209 g/t silver and 1.55 g/t gold. The most northwesterly holes, GTTO-05-001 & 002, as well as GTTO-05-003, drilled 50 metres updip from hole 004, did not intersect the Veta Madre breccia. Details of significant intersections are listed below.

The gold-arsenic-antimony mineralization consists of a 10-30 metre thick (estimated true width) zone of quartz-pyrite veinlets within an extensive stockwork/breccia in the hanging wall diorite and was intersected in all six holes. Although gold values in this zone were mostly below 1 g/t in the drilling, the holes may be too high in the epithermal system, with the possibility of better mineralization at depth. As such, the hanging wall diorite breccia is a significant, previously un-assayed, gold target which will be followed up by surface and underground mapping, rock geochemistry and further drilling. Elsewhere in the mine, stockwork/breccia zones can achieve thicknesses of 30 metres or more and have historically provided substantial tonnages of silver-gold mineralization amenable to bulk underground mining methods.

The Company concluded that the Veta Madre breccia forms the more appealing target as the drill holes show that it continues with excellent widths and grades below previous workings at the Guanajuatito ramp. The aforementioned intersections occurred at a vertical depth of 100 -120 metres below surface. The Veta Madre is known to extend more than 700 metres vertically (approximately 1,000 metres down dip) from surface. Mineralized “shoots” within the structure are often continuous to depth, which bodes well for these new intersections, as there has been no drilling or underground development below them. The Guanajuatito ramp provides easy access to this high grade mineralization and only a minor amount of mining has taken place in the past. The underground workings here will be re-sampled and surveyed as part of the Company's ongoing silver-gold resource evaluation.

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An extensive underground sampling program continued through 2006 at Guanajuato. Preliminary sampling in the first quarter of 2006 has returned spectacular bonanza grades from the Valenciana Mine. Silver grades ranged from 1,100 g/t (32 oz/t) to 30,468 g/t (889 oz/t) and gold grades ranged from 19 g/t (0.6 oz/t) to 177 g/t (5.2 oz/t) in 27 selective grab samples taken by the mine staff. These results yield an arithmetic average of 11,036 g/t (322 oz/t) Ag and 62 g/t Au (1.8 oz/t). Using a silver-to-gold ratio of 60:1, this equates to a silver equivalent grade of 430 oz/t or a gold equivalent grade of 7.2 oz/t. The samples also contained, on average, 0.34% Cu, 0.24% Pb and 0.87% Zn.

The samples were taken from the walls of old6 different stopes above and below the 285 metre level over a total strike length of about 500 metres in a part of the mine that has historically been mined by hand, dating back to the early 19th century. As such, there has been very little, if any, mechanized mining here, and stopes are typically small and erratic in shape. The sampling was carried out as a first-pass assessment of the tenor and distribution of mineralization that has been left behind by these historic mining campaigns. Consequently,While grades from the various stopes were comparable, it is presently unknown just how representative these grades may be from a mining standpoint.

Significantly, the sampling came from 6 different stopes above and below the 285 metre level over a total strike length of about 500 metres. Grades from the various stopes were comparable. Five of these stopes lie within 200 metres of the Valenciana shaft and there has only been limited development below this level, approximately 150 metres, to the bottom of the shaft. The sixth stope, number 1414, lies 400 metres southeast of the shaft and has been partially developed between the 285 and 320 metre levels. There has been no development above this for at least 100 metres and there does not appear to have been any work done below it at all, suggesting that the mineralization is totally open to depth.- 35 -

In addition, initial surface rock sampling on the Promontorio claim, southeast of the Rayas Shaft, has identified a gold-rich zone of mineralization along more than 100 metres of the Veta Madre structure. Two channel samples across this zone returned 5.2 g/t Au over 3.2m and 7.6 g/t Au across 3.0m. A further 100 metres along strike to the southeast of the above, an exposure of silica breccia and a footwall shear were sampled over a 25 by 45 metre area, yielding anomalous to "ore-grade" (as defined by the current operators) gold and silver values. In the Promontorio area the Veta Madre and associated stockwork and shear zones form topographic dip slopes making for easy drill targets and are readily accessible for potential surface exploitation. Elsewhere in the mine complex, these mineralized stockworks can reach widths of 30 metres or more and locally exceed 100 metres in strike length and down-dip extent allowing for bulk tonnage underground mining methods to be used.

Initial evaluations of underground workings near the Promontorio Shaft, and approximately 150 metres vertically below these surface outcrops, indicated the presence of similar gold-dominated mineralization. Compilation of the underground data is ongoing, as will be the evaluation of the extent of former mining, and re-sampling of stopes and levels. There is more than 300 metres of strike length to the southeast of Promontorio that has apparently seen only limited exploration and underground development, such that the potential for previously unrecognized mineralization in this area is excellent. Overall, the property encompasses more than four kilometres of strike length on the Veta Madre structure, much of which has seen little to no exploration.

In June 2006, we commenced the first phase of our underground diamond drilling program, which is to comprise of a minimum of 3,000 metres in approximately 45 holes.program. The purpose of the drilling was to better define zones of silver-gold mineralization for production purposes and for the preparation of a NI43-101 compliant resource. TheThis drilling focused mainly on San Vicente North.

In October 2006, we commenced a second phase of our diamond drilling program and completed extensive underground sampling at the limits of the silver-gold mineralization in the Guanajuatito Mine. The work to date in this northwest area of the Guanajuato Mine Complex has included the collection of

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more than 1,000 underground channel samples and is leading to a better understanding of the distribution of silver-gold mineralization. It has been observed that, while the Veta Madre quartz breccia is fairly consistent and is present in almost every hole, silver and gold grades vary somewhat, with higher grades tending to cluster in pockets with lower grade material in between, a typical feature of precious metal vein deposits. As such, even low grade intersections of vein material in drill holes spaced 50 metres apart are important as they indicate the continuity of the zone. Continued detailed sampling underground and/or follow-up drilling on a closer spacing will be needed to better define the actual grade of the zone.

Further underground development is already underway and this part of the mine is providing about 150 tonnes per day to the mill. Underground mapping and sampling is continuing in this area and the surface drilling is continuing in the Animas and Promontorio area in the Cata and Rayas shaft areas to the southeast. Results for these areas will be released in due course.

While all eight holes in the Animas drilling intersected silver-gold mineralization, the most significant results include 1.5 metres averaging 505g/t silver and 1.98g/t gold within 4.5 metres averaging 219g/t silver and 0.86g/t gold in GTT-06-020, and 2.1 metres of 658 g/t silver and 1.7 g/t gold in hole GTT-06-023. Mineralization in these holes, as well as that of hole GTT-06-21, is hosted within a portion of the Veta Madre structure that extends into the footwall shale. Approximately 125 metres further south from GTT-06-20 and 21, GTT-06-022 intersected 230g/t silver and 1.28g/t gold over 3.0 metres in a hanging wall stockwork. Fifty and seventy metres, respectively, deeper than hole 22, GTT-06-026 intersected 121g/t silver and 1.05g/t gold over 7.8 metres, and GTT-06-024 intersected 89g/t silver and 0.33 g/t gold over 9.0 metres. Both the intersections in GTT-06-024 and 026 as well as the narrower intersections in GTT-06-025 and 027 are within stockwork zones in hangingwall rocks.

In early 2006, we commenced a Phase II surface diamond drilling program designed to test three separate areas along a 4 kilometres of strike length along of the Veta Madre. The drill program was to follow-up on the successful drilling at Guanajuatito, in the northwest part of the property, as well as to test the Animas, and Garrapata areas which are farther along strike to the southeast. The 6,753 metres drilled in 34 holesprogram was highly successful in identifying and delineating three new zones of silver-gold mineralization in the northwest, central and southeast parts of the mine property. These discoveries accentuate the previous lack of exploration on the property and the potential for new zones to be found throughout the mine. In addition, the easy access to these zones from existing underground workings means that they can be developed and mined quickly and cost-effectively.

In the Guanajuatito-Encarnación area, results of the diamond drilling program provided further definition of a new zone of silver-gold mineralization. Extensive underground sampling also confirmed the extension of the silver-gold mineralization. Both the drilling and sampling were part of a comprehensive, ongoing exploration program at Guanajuato to help better understand and delineate the silver-gold mineralization in area. A total of 3,205 metres was completed under and northwest of the Guanajuatito ramp, and in the adjacent Encarnación area along the trend of the Veta Madre, approximately one kilometre northwest of the famous Valenciana Mine (now owned by Great Panther). The program was initially designed to surround the 2005 drilling that intersected 692 g/t silver and 5.17 g/t gold over 5.8 metres and 1,096 g/t silver and 4.15 g/t gold over 2.5 metres. A total of nineteen holes have now been drilled in this area at approximately 50 metre intervals, covering a strike length of 400 metres and a vertical extent of 100 to 150 metres.

The work in the northwest area of the Guanajuato Mine Complex has included the collection of more than 1,000 underground channel samples and is leading to a better understanding of the distribution of silver-gold mineralization. It has been observed that, while the Veta Madre quartz breccia is fairly consistent and is present in almost every hole, silver and gold grades vary somewhat, with higher grades tending to cluster in pockets with lower grade material in between, a typical feature of precious metal vein deposits. This is illustrated on the level plan maps on the Company’s website. As such, even low grade intersections of vein material in drill holes spaced 50 metres apart are important as they indicate the continuity of the zone.

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Continued detailed sampling underground and/or follow-up drilling on a closer spacing will be needed to better define the actual grade of the zone.

Significant results from the 2006 drilling include 2.87 metres of 651g/t silver and 3.16g/t gold in hole GTT-06-015, located approximately 50m vertically below GTT-05-005 (1,096 g/t silver and 4.15 g/t gold over 2.5 metres). Drill hole GTT-06-015 helps define a high grade zone of silver-gold mineralization below the Guanajuatito ramp in the section 2800N area. Drill hole GTT-06-014 intersected 9.5m of anomalous Veta Madre mineralization including 6.0 metres of 111g/t silver and 1.55g/t gold under the Guanajuatito level +45 (mining formerly took place above level +45). Drill hole GTT-06-010 intersected 6.0m of anomalous Veta Madre with 1.0 metre of 82g/t silver and 0.35g/t gold. GTT-06-010 is 40 metres vertically below the high grade GTT-05-004 (692 g/t silver and 5.17 g/t gold over 5.8 metres). Drill hole GTT-06-013 intersected 8.2m of anomalous Veta Madre, while GTT-06-019 intersected a broad zone of silica breccia with 1.0 metre of 77g/t silver and 0.59g/t gold. This hole is 60m northwest of former mining on the Encarnación sublevel 45.

As in the 2005 drilling, two styles of mineralization were noted in the 2006 holes: silver-gold mineralization in the Veta Madre itself and a zone of gold-arsenic-antimony stockwork mineralization in the hanging wall. Although only the Veta Madre style has returned grades of an economic level so far, the stockwork style often contains anomalous levels of gold and will be evaluated underground to better understand the distribution of the mineralization.

Highlights of Diamond Drilling:

* designates results released Dec 1, 2005.

The continued drilling and sampling have helped us better define a zone of silver-gold mineralization (the Guanajuatito Zone) that appears to plunge off to the southwest. This zone is approximately 200 metres along strike and could extend for at least 400 metres down-plunge as it appears to join up with mineralization intersected in deep drilling from the 1980's. Structurally, this appears to be a new trend to mineralization in the mine complex and may be related to the contact between a dioritic intrusive that forms the hanging wall in the Guanajuatito area and the "Guanajuato Conglomerate" which is the hanging wall unit along strike to the southeast.

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Plan maps for the Guanajuatito +45 level and Encarnación +15 level (all mine levels are referenced to the '0 metre' elevation at the access to the Rayas shaft) have been included on the Company’s website. Re-sampling of these levels (2450N - 2750N sections) returned some excellent values associated with the Veta Madre silica breccia. Mineralized intersections in GTT-06-013, 014 and 019 imply further potential in this area and have helped to define the western limits to the Encarnación Zone, which appears to follow the more common southeast plunge and is open to depth. Continued evaluation of this part of the mine will be conducted from underground as is will be more cost-efective than drilling from surface.

On the Guanajuatito +45 level, 31.6% of the samples assayed greater than 55 g/t silver equivalent (AgE) using US$525/oz gold and US$10.50/oz silver. These samples averaged 178 g/t AgE (143 g/t AgE using an 80% historic mill recovery rate). On the Encarnación +15 level, 57.1% of the samples assayed greater than 55 g/t silver equivalent (AgE) using the same prices. These samples averaged 231 g/t AgE (185 g/t AgE using an 80% historic mill recovery rate). On both levels, the higher grade values cluster into distinct zones as seen on the level plans.

The second portion of the 2006 drill program focused on testing a gap in historical production, known as the Animas area, between the Cata Mine and San Vicente North Ramp. It represents a section of the Veta Madre vein structure approximately 175 metres in strike length by 150 metres vertical, immediately below surface and accessible by ramp. As such, the newly defined mineralization presents an immediate target for stope development and mining.

While all eight holes in the Animas drilling intersected silver-gold mineralization, the most significant results include 1.5 metres averaging 505g/t silver and 1.98g/t gold within 4.5 metres averaging 219g/t silver and 0.86g/t gold in GTT-06-020, and 2.1 metres of 658 g/t silver and 1.7 g/t gold in hole GTT-06-023. Mineralization in these holes, as well as that of hole GTT-06-21, is hosted within a portion of the Veta Madre structure that extends into the footwall shale. Approximately 125 metres further south from GTT-06-20 and 21, GTT-06-022 intersected 230g/t silver and 1.28g/t gold over 3.0 metres in a hanging wall stockwork. Fifty and seventy metres, respectively, deeper than hole 22, GTT-06-026 intersected 121g/t silver and 1.05g/t gold over 7.8 metres, and GTT-06-024 intersected 89g/t silver and 0.33 g/t gold over 9.0 metres. Both intersections in GTT-06-024 and 026 as well as the narrower intersections in GTT-06-025 and 027 are within stockwork zones in hangingwall rocks. The latter two were the deepest of the eight holes and may represent a pinching of the zone at this point. Highlights of Diamond Drilling:

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As there still remains a portion of the Animas area that is inaccessible for surface drilling, additional holes to test this gap are being completed in an underground drill program.

The styles of mineralization at Animas are somewhat different from the quartz breccia at Guanajuatito in the northwest end of the property. At Animas, gold-silver mineralization is hosted in quartz-carbonate stockwork zones in hanging wall conglomerate; in the Veta Madre silica breccia located along the contact between the hanging wall conglomerate and footwall shales; and in silica flooded (stockwork and breccia) footwall shale. These styles of mineralization are well displayed in the surface drilling and in underground workings in the various shallow levels of San Vicente North. The fact that the Animas mineralization is located virtually from surface down to about the 170 metre level underscores the fact that the upper levels of the Guanajuato Mine Complex have not been mined out.

The third portion of the 2006 drill program focused on an unexplored area along strike from the mine workings at the Promontorio shafts. The area represents a section of the Veta Madre vein structure approximately 150 metres in strike length by 150 metres vertical, immediately below surface and accessible by the San Vicente South Ramp.

While all seven holes in the Promontorio drilling intersected silver-gold mineralization, the most significant results include 149g/t silver and 2.2g/t gold across 5.4 metres of the Veta Madre in hole GTT-06-031; and 141g/t Ag and 0.54g/t Au across 2.24 metres of the Veta Madre in GTT-06-034, located 40 metres northwest of hole 31. Another 120m northwest of GTT-06-034, near the Promontorio shaft, GTT-06-028 intersected 92g/t Ag and1.08g/t Au across 3.65 metres.

Parallel zones to the Veta Madre are also well developed, including a hanging wall silica stockwork developed in conglomerate. Apparently, this zone was partially exploited in the past as holes GTT-06-030 and 032 were unexpectedly lost in unrecorded stopes. However, the remaining hangingwall stockwork in GTT-06-032 assayed 43g/t Ag and 0.95g/t Au across 4.9 metres.

Of particular note is that a footwall stockwork is locally developed in the porphyritic diorite. This new zone has been traced for approximately 150m of strike length with notable intersections of 92g/t Ag and 0.53g/t Au across 4.3 metres in GTT06-028 and 197g/t Ag and 0.57g/t Au across 1.52 metres in GTT-06-034.

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Additional holes in the Promontorio area will be completed by the underground drill commencing in early 2007.

The styles of mineralization at Promontorio, as seen in the surface drilling and surface outcroppings, include silver-gold mineralization hosted in several quartz-carbonate stockwork zones in the hanging wall conglomerate; silica breccia in the Veta Madre located along the contact between the conglomerate and footwall diorite porphyry; and in silica flooded (stockwork and breccia) footwall diorite. Detailed geological mapping and rock sampling of underground workings in this part of the mine are ongoing.

In early 2006, preliminary sampling returned spectacular bonanza grades from the Valenciana Mine. Silver grades ranged from 1,100 g/t (32 oz/t) to 30,468 g/t (889 oz/t) and gold grades ranged from 19 g/t (0.6 oz/t) to 177 g/t (5.2 oz/t) in 27 selective grab samples taken by the mine staff. These results yield an arithmetic average of 11,036 g/t (322 oz/t) Ag and 62 g/t Au (1.8 oz/t). Using a silver to gold ratio of 60:1, this equates to a silver equivalent grade of 430 oz/t or a gold equivalent grade of 7.2 oz/t. The samples also contained, on average, 0.34% Cu, 0.24% Pb and 0.87% Zn.

The samples were taken from the walls of old stopes in a part of the mine that has historically been mined by hand, dating back to the early 19th century. As such, there has been very little, if any, mechanized mining here and stopes are typically small and erratic in shape. The sampling was carried out as a first-pass assessment of the tenor and distribution of mineralization that has been left behind by these historic mining campaigns. Consequently, it is presently unknown just how representative these grades may be from a mining standpoint.

Significantly, the sampling came from 6 different stopes above and below the 285 metre level over a total strike length of about 500 metres. Grades from the various stopes were comparable. Five of these stopes

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lie within 200 metres of the Valenciana shaft and there has been only limited development below this level to the bottom of the shaft, approximately 150 metres below. The sixth stope, number 1414, lies 400 metres southeast of the shaft and has been partially developed between the 285 and 320 metre levels. There has been no development above this for at least 100 metres and there does not appear to have been any work done below it at all, suggesting that the mineralization is totally open to depth. Longitudinal sections of the mine are available for viewing on the Company's website atwww.greatpanther.com.

The Company is continuing to better determine the extent of this mineralization or to quantify any potential volumes. The most important issue in doing this is in evaluating the safety level of any procedure that could be implemented to extract this material from the historic workings. Any mining below these levels, however, would be in virgin rock and could be developed using modern techniques and safety standards.

With these grades, this material would not need to be processed at the on-site plant, but would be shipped directly to the smelter for processing, thereby decreasing the production costs and increasing the net value.

The Valenciana Mine has always been known for its high grades. Mineralization was first discovered here by the Spanish in 1768, and the ore was so rich that Valenciana quickly became the most productive silver mine in the world in the second half of the 18th century (Elizabeth Emma Ferry, Cultural Anthropology, 2002). Of the 3 operating shafts on Great Panther's property, Valenciana is the deepest, at 500 metres, and limited diamond drilling in the 1980's suggest that the mineralization continues below this for at least another 200 metres.

The Company continued surface diamond drilling in 2007 and intersected four new silver-gold zones and provided further definition on the three previously known zones of silver-gold mineralization in the Promontorio area. All zones are sub-parallel and occur within 70 metres of the main Veta Madre. Having several zones within close proximity like this will significantly lower their development costs and plans are already in preparation for the exploitation of this area. The new mineralization lies between 70 and 150 metres below surface and is accessible by ramp.

This portion of the 2007 drill program comprised 2,135.8 metres in eleven holes (SG07-035 to SG07-045) and was focused on defining mineralization in the Promontorio / Garrapata area - the southern most area of exploitation in the Guanajuato Mine Complex. Previous results from this part of the mine were announced on Dec. 12, 2006. Mineralization in this area is now known to comprise at least seven parallel zones: the main Veta Madre, a hangingwall zone (‘HW’ – above the Veta Madre) and five footwall zones (‘FW’ – below the Veta Madre). The Veta Madre quartz breccia occurs at the fault contact between hangingwall conglomerates and a footwall mix of metasediments, metavolcanics, and intrusions. The hangingwall zones occur as quartz stockworks in the conglomerates. The footwall zones have been divided into the FW #1a, #1b, #1c, #2, and #3 zones and are associated with quartz stockworks and breccias. The FW #1 and #2 zones are hosted within diorite and quartz-feldspar porphyry intrusions, while the #3 zone occurs at the lower contact between the intrusions and footwall metasediments.

The HW zone was cut by drill holes SG07-035 to 037, and 040 to 045 and displays a higher gold:silver ratio than other zones. Examples of this include 21.2g/t gold and 52g/t silver over 0.88 metres in SG07-035; 11.1g/t gold and 13g/t silver over 1.15 metres in SG07-036; 9.95g/t gold and 477g/t silver over 1.05 metres in SG07-037; and 23.45g/t gold and 45g/t silver over 2.45 metres in SG07-043. The HW zone has been traced for more than 150 metres along strike and up to 100 metres down dip.

The Veta Madre itself was intersected in all holes except SG07-041, which was lost in an old stope. Signs of former mining along the Veta Madre were noted in seven of the eleven holes in this program, however no signs of previous mining were observed in the FW zones. Parts of the Veta Madre have been left in place as evidenced by several mineralized intersections, including 1.98g/t gold and 77g/t silver over 2.59 metres in SG07-038 and 2.39g/t gold and 202g/t silver over 3.55 metres in SG07-043. As such, an in situ and well mineralized portion of the the Veta Madre zone has been traced for more than 150 metres along strike and up to 150 metres down dip.

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The FW #1a zone was described in the last Promontorio news release (Dec 12, 2006) as the footwall #1 zone in drill holes SG06-033 and 034. The 2007 drilling has added to this with intersections in holes SG07-036 through 040, 042, 044, and 045. FW #1a is located 5-10 metres below the Veta Madre. Noteable intersections include 18.28g/t gold and 104g/t silver over 2.16 metres in SG07-036; 4.58g/t gold and 312g/t silver over 3.09 metres in SG07-037; and 2.02g/t gold and 265g/t silver over 3.60 metres in SG07-040. The FW #1a zone has been traced for more than 100 metres along strike and up to 100 metre down dip.

The FW #1b zone is located only 5 metres below the FW #1a zone, and was intersected in holes SG07-035, 036, 039, 040, and 042 to 045. Highlights from this zone include 0.93g/t gold and 181g/t silver over 2.47 metres in SG07-039 and 2.35g/t gold and 430g/t silver over 2.42 metres in SG07-040. To date, the FW #1b zone has been traced for more than 50 metres along strike and up to 75 metres down dip.

The FW #1c zone is located 5-10 metres below the FW #1b zone, and was intersected in SG07-036, 039, 040, and 045. Noteable intersections include 0.78g/t gold and 266g/t silver over 5.61 metres in SG07-036 and 1.26g/t gold and 292g/t silver over 3.10 metres in SG07-040. This zone has been traced for 50 metres along strike and up to 75 metres down dip.

A new footwall zone (designated FW zone #2) has been discovered approximately 50 metres below the Veta Madre and was intersected in holes SG07-035, 038, 039, 040, 042, and 045. This zone appears to be significantly thicker than some of the others with intercepts such as 6.15 metres of 1.20g/t gold and 206g/t silver in hole SG07-042 and 5.60 metres of 0.71g/t gold and 115g/t silver in SG07-045. The FW zone #2 has been outlined for more than 50 metres along strike and up to 50 metres down dip.

A second new discovery (designated FW zone #3) lies approximately 70 metres below the Veta Madre and was intersected by holes SG07-042 and 043a, approximately 25 metres apart. These holes returned 2.97g/t gold and 175g/t silver over 1.10 metres and 1.55g/t gold and 194g/t silver over 2.31 metres, respectively.

There is no indication from drilling or a review of underground survey maps that the footwall zones have been previously mined. Drill hole spacing in this program was approximately 30 metres on average. At this spacing, the mineralized zones are observed to vary in thickness, and grades are also quite variable. Detailed drilling to further delineate and extend the zones will be required and will be carried out from existing underground workings that are now being re-habilitated.

The discovery of these new zones at Promontorio is significant, not only because of the near term potential for development but also because they imply that much of the footwall and hangingwall to the Veta Madre has been largely unexplored and, therefore, undeveloped. With more than 4 kilometres of strike length existing on the mine property, the potential for additional zones to be found is excellent.

Highlights of Diamond Drilling:

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In September 2007, a deep underground drilling program commenced in the Cata area of the Guanajuato Mine. The program iswas designed to twin, then fill in between, diamond drill holes completed in the 1980’s and 1990’s by the previous owners that indicated the continuation of silver-gold mineralization for approximately 200 metres below the existing mine workings.

Intercepts reported from this historic drilling included 863 g/t Ag and 4.33 g/t Au over 3.30 metres, 347 g/t Ag and 1.69 g/t Au over 3.05 metres, 377 g/t Ag and 20.0 g/t Au over 0.40 metres and 141 g/t Ag and 7.4 g/t Au over 0.60 metres. As both the drill core and drill logs for these holes are incomplete and assay certificates were not kept at the time, the results cannot be used for NI 43-101 purposes and cannot be relied upon. This has been one of the major limiting factors in why the Company has not been able to produce a new NI 43-101 compliant resource for the Guanajuato Mine. Similarly, most of Great Panther’s surface drilling cannot be used for this purpose due to the inability of an independent engineer to validate the location of the boundaries of old mine workings around the holes. This limits the ability to calculate volumes, and therefore tonnages, of mineralized rock. New, deep holes will have no such limitations and can then be used to calculate a new NI 43-101 compliant resource.

Six drill stations have been prepared on the 345 level (345 metres below surface) just southeast of the Cata shaft. As several holes can be drilled from each station, 30 core holes are currently planned, representing 7,000 metres. The full 4.2 kilometre strike length of the Guanajuato orebody is open to depth and previous drilling indicates significant potential to expand the mine below the existing workings. As additional drill stations have yet to be prepared elsewhere in the mine, it is anticipated that this will be an ongoing program and the Company hopes to add a second drill once the underground infrastructure is in place to support it.

In addition, the final holes of the 2007 surface program expanded the previously discovered mineralization in the Promontorio area with intercepts such as 12.5 metres of 3.79 g/t gold and 71 g/t silver plus 4.41 metres of 6.26 g/t gold and 256 g/t silver in SG07-065, as well as intersecting new extensions of historic zones near the Cata plant such as 7.10 metres of 1.10 g/t gold and 155 g/t silver in hole SG07-54.

This portion of the 2007 drill program comprised 5,274 metres in twenty-three holes (SG07-046 to SG07-068) and tested the near surface parts of the Veta Madre system near the Tepeyac Shaft (south of the

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historic Valenciana workings), the Maravillas Shaft (north of the historic Cata workings) and additional drilling in the Promontorio Shaft area following up on the recent discovery of new mineralized zones in that area. A final tally of 7,408 metres of surface drilling has been completed in 2007 at Guanajuato in 34 holes.

While previous drilling in the Promontorio area showed that mineralization here comprises at least seven parallel zones - the main Veta Madre, a hangingwall zone (‘HW’ – above the Veta Madre) and five footwall zones (‘FW’ – below the Veta Madre) – the follow up drilling has indicated that some of these zones locally appear to coalesce into one large zone, or “clavo”. This is best displayed in the aforementioned hole SG07-65 where sampling above and below an old stope on the Veta Madre returned 3.79 g/t gold and 71 g/t silver over 12.5 metres plus 6.26 g/t gold and 256 g/t silver over 4.41 metres, respectively immediately adjacent to the stope. As this hole was drilled somewhat obliquely to the orientation of the vein, the true width of the zone, including the mined out portion appears to be 9.79 metres. Other significant parts of the Veta Madre have been left in place as evidenced by the intersection of 2.25 g/t gold and 96 g/t silver over 5.75 metres in SG07-064.

Also following up on the last round of Promontorio drilling, additional assays were received from several of the previously drilled holes in this area and some of the mineralized zones were widened in the process. The best example of this is hole SG07-43 where 11.20 metres grading 2.83 g/t gold and 47 g/t silver was sampled adjacent to an old stope on the Veta Madre. The footwall side of the same stope assayed 2.39 g/t gold and 202 g/t silver over 3.55 metres (previously reported). As such, thetrue width of this zone, including the mined out portion, appears to be 9.54 metres, consistent with the 9.79 metre width observed in hole 65.

The HW zone at Promontorio was expanded southward in this program, and highlighted with intersections of 0.77 g/t gold and 216 g/t silver over 2.2 metres in SG07-059 and 2.14 g/t gold and 152 g/t silver over 8.34 metres in SG07-063. The FW zones were not significantly expanded in this program, however, and may be a local feature, possibly related to a dilational part of the Veta Madre structure. Additional intersections can be found in the table below.

Drill holes SG07-053 to 058, inclusive, tested the area close to the old Maravillas Shaft, just north of the plant at Cata. Results here were highlighted by the aforementioned 7.10 metres of 1.10 g/t gold and 155 g/t silver in hole SG07-54, while holes 53 and 55 returned similar grades over narrower intervals. The Tepeyac area did not return any significant results.

Highlights of Diamond Drilling:

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All of the mineralization intersected in the 2007 surface program lies between 70 and 160 metres vertically below surface. The Promontorio Zones represent approximately 150 metres of strike length and 200 metres of down-dip extension. They are accessible by ramp and existing underground workings are currently being re-habilitated. As soon as possible, detailed drilling to define and further extend the

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Promontorio area mineralization will be carried out from underground. Mineralization in the Maravillas area will be assessed by the mine staff to determine how best to develop this area.

In November, 2007 the new underground development and deep diamond drilling at the Company's wholly-owned Guanajuato Mine in Guanajuato, Mexico confirmed the depth extension of high grade gold and silver mineralization. New underground development on the 430 metre level, 13 metres below the old workings just southeast of the Cata Shaft, has cut the extension of a zone known as the Cata ‘Clavo’, while the first hole of the deep underground drilling program has intersected two silica breccia zones, approximately 13 metres apart, beginning at the 460 metre level.

The Cata ramp, which starts on the 345 level, has been extended from the 417 level (deepest previous workings) down to the 430 level to investigate the down-dip continuity of the Cata Clavo, and drifts and cross-cuts have been started on that level to sample the mineralization. Channel sampling (16 samples) of the advancing face of a central drift (#430-690 drift), driven parallel to the strike of the lower zone returned 0.63 g/t gold and 202 g/t silver over an average width of 3.63 metres and strike length of 38.3 metres. At the same time, a small cross-cut, driven perpendicular to the strike of the lower zone in the footwall direction, encountered continuous and higher grade mineralization that has been sampled on both walls (15 samples) over a length of 10.30 metres and averaged 8.16 g/t gold and 2,017 g/t silver. (Gold and silver assays are uncut and, due to the high values, some samples have been sent for re-assay, the results of which are pending). Adding this to the mineralization in the drift gives a minimum horizontal width of approximately 14 metres to the zone, which is still open in all directions. A plan map of the sampling can be found on the Company website atwww.greatpanther.com.

The first hole of the deep underground program, EUG07-001, was drilled to test an area below the 417 level in the Cata Clavo, with the upper zone being 40 metres, and the lower zone 65 metres vertically below the 417 level, respectively. The upper zone is developed along the lower contact of a diorite intrusion and host sediments, while the lower zone is hosted entirely within the sediments. The zones consist of silicification, brecciation, and quartz vein flooding approximately 10-20 metres in thickness with bands of pyrite and argentite.

The Upper Zone returned 3.63 metres of 1.01 g/t gold and 279 g/t silver, including a core of 0.55 metres assaying 4.47 g/t gold and 1,250 g/t silver, while the Lower Zone returned 3.24 metres of 1.91 g/t gold and 609 g/t silver, including 1.25 metres of 2.97 g/t gold and 1,010 g/t silver. This compares favourably with historic hole 291, drilled in the late 1980’s by the previous owner of the mine, which reported only the lower zone of 3.65 metres of 3.92 g/t gold and 781 g/t silver. A drill section and longitudinal map are also posted on the Company web-site.

As the data from the historic drilling cannot be verified for NI 43-101 purposes, the Company can only use it as a guide in re-drilling this highly prospective area. As such, it is significant that there appears to be such a good correlation between the old intersection and the new drilling. Historic drill data indicates that the silver-gold mineralization in this area extends for at least 150 metres below the existing workings and over a strike length of approximately 300 metres.

The deep drilling at the Guanajuato Mine is testing the area between the 400 and 650600 metre levels (dip length of 350300 metres) along a strike length of 1,000 metres between and below the Cata and Rayas shafts. This drilling will be conducted under the historically high grade Cata and Rayas “Clavos”, which contained strong gold-silver mineralization down to the 417 metre and 450 metre levels, respectively. This ongoing program, now budgeted at 16,000 metres in 68 holes, is expected to beDrilling on the Cata Clavo was completed in 2008, and successfully confirmed the 3^rd quarter 2008.depth extension of high grade gold and silver mineralization. Mining development on the 430 and 460 metre levellevels of the Cata Clavo is continuing and the ramp will be extended to lower levels of the Cata Mine area. The program was suspended temporarily in order to conserve cash and will resume in the Rayas area in 2009.

Details of drill hole intersections:f. Total Costs Incurred to Date and All Planned Future Costs

As at December 31, 2008 total costs incurred on mineral properties, plant and equipment at the Guanajuato mines were $15,191,000. Total exploration costs were $6,291,000.

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Further deep diamond drilling results from core drill-holes EUG07-002 to 007 confirmedPlanned costs for 2009 are approximately $2.1 million for capital investment and exploration.

g. Source of Power and Water that can be Utilized at the extension of high grade gold and silver mineralization to a depth of approximately 600 metres. This is 170 metres below the current lowest workings and highlights the potential for a major continuation of this world class orebody. Given the historical production of approximately one billion ounces of silver from the upper 400 metres of this deposit, the possibility of extending it by at least another 50% has major implications.Property

These six holes, plus the first hole reported in November 2007, were all drilled from the same underground drill site on the 345 level. They tested the down dip continuity, as well as the northwestern limit of the steeply southeast plunging Cata Clavo high grade ore shoot. Seven sub parallel zones of economic grade have been intersected in the drilling, and are named the Hanging Wall 1 (HW 1), Contact, Madre 1 through 4, and Footwall 1 (FW 1). The hanging wall rocks are intrusive diorite in contact with footwall argillites. The contact zone is located closeelectricity supply to the diorite-argillite contact whileoperations in our Guanajuato unit is provided through the Madre 1-4national power grid administered by CFE. The water supply is carried out through groundwater of our mines and FW-1 zones are within the argillite. All zones contain pyrite and argentite (silver sulphide), and are hosted within a package of intense silicification, brecciation, and quartz vein flooding up to 60 metres in thickness. The zones vary in thickness and grade from hole to hole but most are present in every hole.rainwater filtrations.

The shallowest holes (EUG07-004 and 005) intersected the mineralized zones immediately under the 417 level, while EUG07-001, 006 and 007 tested the zones 60-70 metres down dip of the 417 level, and EUG07-002 tested the zones 200 metres down dip (~600 level). Hole EU07-003 was stopped prior to reaching the mineralized zones due to a temporary change in priorities but will be completed at a later date. The 417 level was the deepest level of previous mine workings, while current mining on the 430 level is the deepest exploitation in this part of the Guanajuato Mine Complex.Primary Exploration Properties

Hole EUG07-004 intersected 683g/t silver and 3.12g/t gold over 1.96 metres in the Contact zone, 1,033g/t silver and 2.88g/t gold over 1.47 metres in the Madre 1 zone and 329g/t silver and 0.92g/t gold over 8.38 metres in a composite of the Madre 2, 3, and 4 zones. At the same elevation, but further northwest, EUG07-005 intersected 1,810g/t silver and 20.6g/t gold over 0.26 metres in the Contact zone, and 203g/t silver and 0.82g/t gold over 5.05 metres in the Madre 2 zone.

The intermediate depth holes include EUG07-001 which was previously reported (November 29, 2007) as containing an Upper Zone (now interpreted as the Contact Zone) of 279 g/t silver and 1.01 g/t gold over 3.63 metres, including a core of 0.55 metres assaying 1,250 g/t silver and 4.47 g/t gold, and a Lower (Madre 2) Zone that returned 609 g/t silver and 1.91 g/t gold over 3.24 metres, including 1.25 metres of 1,010 g/t silver and 2.97 g/t gold. EUG07-001 was drilled to test an area below the 417 level in the Cata Clavo, with the upper zone being 40 metres, and the lower zone 65 metres vertically below the 417 level, respectively. EUG07-007 was drilled to the northwest and intersected 1.56 metres grading 324g/t silver and 1.2g/t gold in the Madre 1 zone and 1.74 metres grading 165g/t silver and 0.5g/t gold in the Madre 2 zone. EUG07-006 drilled farther to the northwest intersected the various zones but with low grades, and likely reflects the northwest limits of the Cata Clavo ore shoot. Drilling is continuing to the southeast.

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The deepest hole in this series is EUG07-002, which intersected all seven zones near the interpreted northwestern edge of the Cata Clavo oreshoot, and was highlighted by a one metre intersection grading 5,773g/t silver and 15.45g/t gold in the HW 1 zone. This intersection lies at an approximate depth of 600 metres, 170 metres vertically below the current mine workings and 240 metres down-dip. This opens up a very large area at depth for resource development and exploitation.

The validation of the widely spaced and poorly sampled historical drill holes is important in that 1) those holes indicated a strike length of approximately 300 metres for the Cata mineralization, 2) similar results were obtained below the Rayas and Valenciana Mine and 3) most of the 4.2 kilometre strike length of the Great Panther property has not been explored to depth.

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Highlights of drill hole intersections:

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*previously reported.

Drill-holes EUG07-008 to 012 were all collared 50 metres southeast of holes EUG07-001 to 007 on the 345 level cross cut to test the down dip and strike continuity of the Cata Clavo. All drill holes intersected significant mineralization in multiple zones with some demonstrating excellent widths and others, excellent grades.

Hole EUG07-008 intersected 1.7 metres grading 395g/t silver and 2.13g/t gold in the HW1 zone but had to be abandoned prematurely due to technical reasons. Significant widths of mineralization were intersected in the Veta Madre zone in holes EUG07-009 and EUG07-010, while in EUG08-011 the Veta Madre consisted of several mineralized splays. EUG07-009 intersected 7.36 metres grading 135g/t silver and 0.47g/t gold, while EUG07-010 intersected 10.82 metres grading 174g/t silver and 0.75g/t gold (including 3.52 metres grading 362g/t silver and 1.58g/t gold) in the Veta Madre zone. Holes EUG07-008 to 010 were drilled to intersect the mineralized zones just below the existing workings on the 430 metre level in order to guide mine development in this area. EUG08-011, drilled below the previous three, intersected 0.33 metres grading 4,280g/t silver and 13.1g/t gold and 1.03 metres grading 176g/t silver and 6.01g/t gold in Veta Madre 1 and 2, respectively.

The HW1 zone was further tested to a vertical depth of 500 metres, in EUG08-012, with three intersections, the best of which returned 1.42 metres grading 1,482g/t silver and 5.14g/t gold. This interval matches well with the high grade intersection located 50 metres to the northwest and down dip in previously reported (Feb. 26, 2008) EUG07-002 which intersected 1.0 metre grading 5,773g/t silver and 15.45g/t gold in the HW1 zone. Highlights are detailed in the table below and maps and sections can be viewed on the Company’s website atwww.greatpanther.com.

Holes EUG08-013 to 016 were also drilled from this second station and assays are being compiled. Drilling is now continuing from the third of six underground stations, located another 50 metres to the southeast of the second site. To date, every hole in the deep drilling at Cata has intersected good mineralization and the program is confirming wide spaced historic drill data that indicated the extension of silver-gold mineralization in this area for at least 150 metres below the existing workings and over a strike length of approximately 300 metres. Seven sub-parallel zones of economic note have now been identified within a system of intense silicification, brecciation, and quartz vein flooding up to 60 metres in thickness.

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Highlights of drill hole intersections:

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3.(1) Mapimi Project

a.Acquisition

On September 11, 2006, the Company signed an option agreement to purchase 100% of the ownership rights to seventeen mining concessions collectively known as the Mapimi Project (formerly “Km 66”) in eastern Durango State, Mexico. In consideration for the right and purchase option the Company must make staged payments totaling US$3,000,000 (US$100,000 paid) and issue 500,000 common shares (200,000 shares issued) over a four year period. The vendors retain a 3% NSR of which, each 0.5% up to a maximum of 2% can be purchased by the Company for US$500,000.

The Concessions are valid for 50 years from the time of grant and most are valid until 2053.

b.Location and Accessibility

The Property is situated in the northern plateau region of Durango State. It is located approximately 66 kilometres west of the town of Bermejillo and 100 kilometres north-west from the city of Torreon and San Pedro de las Colonias, in Coahuila State. The property is easily accessible and the infrastructure is considered excellent, since the property is bisected by paved highway approximately 100 kilometres from Peñoles’ smelter at Torreon.

Airports are situated in the city of Torreon as well as the city of Durango. Both airports have scheduled daily flights to and from Mexico City, Mazatlan, Monterrey and Houston, Texas.

The municipality of Mapimi is on an electrical power grid and has telephone services provided by TelMex. Water and drainage systems are also present.

c.Refer to Exhibit 8.5 – Map of Mapimi Property.

b. History

In 1995, Minera Apolo, S.A. de C.V. (“Apolo”) acquired the property and optioned the property to Coeur d’Alene Mines Inc. in late 1996. Between 1997 and 1998, Coeur D’Alene carried out regional and geological mapping in some areas of the property. They completed a total of 397 metres of trenching, a gravity survey, 81 reverse circulation drill holes, 22 diamond drill holes and 422 surface channel samples. Coeur d’Alene returned the property to the vendor in 1998 and Great Panther optioned it in September 2006.

d.c. Geology and Mineralization

The structural fabric of the Mapimi Project appears to be complex. Rhyolite sills intrude sandstones, calcareous siltstones, and limestones of the Cretaceous Caracol Formation, a common host to many of the world class silver-lead-zinc deposits throughout the Mexican Silver Belt. Pre-mineral faulting and fracturing is intense within and adjacent to the mineralized zones, providing excellent porosity for mineralizing fluids. Post-mineral faulting is also common and offsets mineralized zones in places.

Mineralization at Mapimi includes three distinct types. Two adjacent & related zones called La Gloria and Las Palmitas contain lead, zinc, and silver minerals with lesser amounts of gold and copper minerals. The mineralization at MapimiThis style is associated with hydrothermal breccias and stockworks related to a cluster of rhyolite domes, and shows a strong similarity to the historic Real de Angeles District in Zacatecas State, Mexico. An upper, oxidized portion (~40-60m)40-60 metres) of the mineralization at Mapimi consists of jarosite and hematite; with sulphides consisting of pyrite, silver sulfosalts, sphalerite and galena at depth.

The breccias have a general orientation of N40E, and a steep northwest dip. The largest breccia to date has known dimensions of 250 by 45 metersmetres but is open in all directions. More than 20 breccia bodies have been identified in 5 main sectors. The focus during the late 1990's was on the Carmen,

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A second type of silver-lead-zinc mineralization occurs approximately three kilometres north of La Gloria and Palmitas sector breccias, with no drilling done on the others. As the topographyappears to be of the carbonate replacement type. Called the North Zone, mineralization here is narrow but high grade and appears to be related to the rhyolite-sediment contacts. It is hosted in the Caracol Formation but there may be potential for better widths and grades in the underlying Aurora Limestone.

The third style of mineralization at Mapimi was discovered in 2008 and consists of molybdenite in quartz veins within a zone of skarn alteration. Named the Bulls-Eye Zone because it is highlighted by a strong magnetic anomaly, the mineralization starts at a depth of about 40 metres and extends over an area of about 250 metres in diameter and is very subdued, other breccias may well have been overlookedapproximately 200 metres thick. The Bulls-Eye Zone lies between La Gloria and the extensive property contains excellent potential for additional mineralization.North Zone.

e.d. Mineral Resource and Mineral Reserve EstimateEstimates

There are no known reserves on the property and the proposed program is exploratory in nature. The Company does have a resource estimate as described below.

During 2006, the Company commissioned Wardrop Engineering (“Wardrop”) of Vancouver, B.C. to prepare a NI 43-101 compliant resource estimate for the property. The independently produced report

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estimated that the Palmitas and Gloria Zones together contain an Inferred Mineral Resource of 4,969,800 tonnes at a grade of 59 g/t Ag, 0.13 g/t Au, 0.81% Pb and 1.31% Zn. Wardrop calculated that these grades equate to a silver equivalent grade of 139 g/t using commodity prices (based upon 3 year averages) of US$7.70/oz for silver, US$471/oz for gold, US$0.41/lb for lead and US$0.69/lb for zinc and recoveries of 76%, 70%, 80% and 80%, respectively. This resource equates to a total of 22.3 million ounces of silver equivalent.

The resource estimate was based upon a comprehensive exploration program completed on the property by Coeur d'Alene Mines during 1997 and 1998, wherein they drilled 81 reverse circulation holes (7,515 metres &and 3,614 samples) and 22 diamond drill holes (2,983 metres &and 900 samples). The geological database also includes 422 surface channel samples. Coeur d'Alene dropped the property in 1998. The resource includes 2,643,600 tonnes of oxide material at a grade of 51 g/t Ag, 0.11 g/t Au, 0.73% Pb and 0.98% Zn for a silver equivalent grade of 113 g/t and 2,326,200 tonnes of sulphide mineralization at a grade of 68 g/t Ag, 0.16 g/t Au, 0.90% Pb and 1.69% Zn for a silver equivalent grade of 169 g/t. As the grade of sulphide mineralization is 50% higher than the 40-60 metre-thick oxide zone, the Company expects the overall grade of the resource to increase over time as the deposit is extended to depth.

In March 2008, Wardrop delivered an updated NI 43-101 compliant mineral resource estimate for the La Gloria / Las Palmitas Zones on the Company’s Mapimi Project in northeastern Durango State, Mexico.Zones. The new estimate effectively upgraded the previous resource of 22.3 million silver equivalent ounces (Ag Eq Oz)eq oz) from the Inferred to the Indicated category and added an additional 6.3 million Ag Eq Ozeq oz in the Inferred category for a global resource of 28.6 million recoverable Ag Eq Oz.eq oz.

The new estimate includes the twenty-nine core holes, representing 6,298 metres, completed during Great Panther’s Phase I drilling program in the first half of 2007(see2007 (see below in Exploration). This program consisted mostly of fill-in holes focused on the La Gloria Zone and adjacent Las Palmitas Zone in an effort to confirm, expand, and better delineate the previous Inferred Mineral Resource of 4,969,800 tonnes at a grade of 59g/t Ag, 0.13g/t Au, 0.81% Pb and 1.31% Zn estimated in 2006 by Wardrop from reverse circulation and core drilling of Coeur d’Alene Mines Corp., completed in 1997-98 (GPR news release, September 18, 2006).Resource.

The 2007 Phase I drilling at Mapimi has increased the confidence level of the resource, resulting in a new Indicated Mineral Resource estimated at 6,585,900 tonnes grading 28g/t silver, 0.09g/t gold, 0.41% lead and 1.14% Zn and an Inferred Mineral Resource at 2,027,900 tonnes grading 34g/t silver, 0.13g/t gold, 0.54% lead and 0.81% zinc. A breakdown of the resources by zone, type (oxide or sulphide) and category can be found in the tables below. The final report itself will be posted on the Company’s website and on SEDAR once it is received from Wardrop (anticipated by early April).

In the new resource estimate, Wardrop has used different parameters than in 2006, such that the new estimate is considered to be more robust. In keeping with the previously reported resource estimate,

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Wardrop has applied a cut-off grade of 50g/t silver equivalent (Ag Eq).equivalent. Metal prices and recoveries used were US$9.55/oz and 76%, respectively, for silver, US$530/oz and 70% for gold, US$0.63/lb and 80% for lead and US$1.00/lb and 80% for zinc. Statistically higher grade samples were also removed by capping the assay data at 150g/t for silver, 3.0g/t for gold, and 4.5% for each of lead and zinc. Wardrop used Ordinary Kriging and Inverse Distance Squared to estimate the resource, with blocks of 5m X 5m X 5m being used for the three-dimensional model. Metallurgical recoveries used are the same as for the 2006 resource estimate, which were based upon tests conducted by Silver Standard Resources Inc. in 1999 as part of a property review.

The new resource represents a total of 22,297,800 Ag Eq Oz in the Indicated category and 6,305,000 in the Inferred category. The uncapped resource would represent a total of 23,661,200 Ag Eq Oz in the Indicated category and 6,714,200 in the Inferred category. With the benefit of the added drill holes, Wardrop has reinterpreted the geological model of the mineralized zones and, while this has increased the confidence level, it has placed greater physical constraints on the model and, in particular, reduced the interpreted size of the Las Palmitas Zone.

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The delay in releasing the updated resource estimate was due to the fact that, as part of the review process, it was found that while Great Panther’s Phase I drilling compared favourably with the reverse circulation (RC) drilling completed by Coeur d’Alene, the latter’s diamond drilling returned significantly higher silver and lead grades. This apparent inconsistency necessitated the re-assaying of some of the Coeur d’Alene drill core and a thorough check of all databases, statistics, calculations and interpretations. The Company is now satisfied that all assays are valid and that the difference in assay levels between drilling programs is due to the fact that the Coeur d’Alene diamond drill holes were mostly drilled into what is now interpreted as a higher grade core of the mineralized zone, while their RC holes and Great Panther’s diamond drill holes were mostly drilled outside of this core, on a more systematic basis.

The effect of the higher commodity prices used in the current resource estimate compared to those used in 2006 is that lower grade material now becomes potentially economic, which thereby lowers the average grade of the resource while increasing the tonnage. Thus, the new resource represents an increase in tonnage of approximately 73% while the average grade of the Indicated and Inferred Resources is now 105g/t Ag Eq and 97g/t Ag Eq, respectively, compared to 139g/t Ag Eq in the 2006 resource. As such, the estimated recoverable ounces of silver equivalent have increased by approximately 28%.

Table 1: Resource Grades (Capped)

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Table 2: Contained Metal and Recoverable Ag Eq

Great Panther’s 2007 Phase I drilling determined that the La Gloria and Las Palmitas Zones are structurally complex and fault-bounded on all sides, including to depth where a shallow dipping fault system appears to cut off the mineralization at depths of 100-200 metres. The La Gloria resource represents approximately 360 metres of strike length with widths of up to 150 metres and may still be open to the southwest. Las Palmitas extends for approximately 200 metres of strike length and is up to 50 metres wide. The width of both zones is greater near surface and appears to pinch at depth, a shape that lends itself well to open pit mining. The level of oxidation lies at 60 to 80 metres below surface.

The work to date on La Gloria and Las Palmitas has resulted in a well-defined resource that can now be modeled for extraction by open pit mining methods. An in-house scoping study has been initiated that will examine basic issues such as permitting, metallurgy, transportation, mining, milling and construction costs, etc. While this will lay the groundwork for later feasibility studies, it is still the Company’s objective to increase the size of the overall project resource by drilling targets outside of La Gloria/Las Palmitas. The Mapimi Project comprises approximately 15,000 hectares, muchrecently discovered North Zone and the Bulls-Eye molybdenum mineralization may add to the viability of which is still unexplored.

the project. We advise U.S. investors that while these terms “Resource Estimate” and “Inferred Mineral Resource” are recognized and required under Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part of all of the mineral deposits in this category will ever be converted into reserves.

f.e. Exploration History

Mapimi is viewed as an advanced stage exploration project that could be developed quickly with the goal of defining a new resource amenable to open pit mining, thereby significantly enhancing Great Panther's growing portfolio of silver projects. A first phase exploration program was implemented at Mapimi in late 2006 and consisted of an airborne geophysical survey and ground induced polarization geophysical survey follow-up; detailed geological mapping and re-sampling of outcrops, adits and trenches; followed by a 6,000 meter core drilling program focused on confirming previous Coeur d’Alene drilling results in the Palmitas and La Gloria zones.

Highlights of the first 11 core holes (2,395 metres) Great Panther’s 2007 drilling program include 155 g/t Ag Eq over 46.75 metres (including 262 g/t Ag Eq over 16.00 metres and 208 g/t Ag Eq over 3.30 metres) in hole SK07-04 in the La Gloria Zone and 173 g/t Ag Eq over 62.40 metres in hole SK07-09, also in La Gloria. Drilling on the Las Palmitas Zone was highlighted by 147 g/t Ag Eq over 16.95 metres in hole SK07-01.

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Additional details of the intersections, including individual assays for silver, gold, lead and zinc are presented in the table of results below. A plan map of the Las Palmitas and La Gloria Zones with drill hole locations is posted on the Great Panther website atwww.greatpanther.com.

Multiple mineralized intervals have been detected within each of La Gloria and Las Palmitas. They appear to be steeply dipping and elongated northeast-southwest so holes are typically drilled at angles of 45-60 degrees. While the mineralization starts at surface, it has been intersected to vertical depths approaching 200 metres. To date, the holes have been drilled between grid sections 350N and 550N at a horizontal spacing of approximately 50 metres with respect to other Great Panther and Coeur d’Alene drill holes. They are also designed to intersect the mineralized zones at a similar vertical spacing. and are confirming previous results of Coeur d’Alene

The mineralization at Mapimi is associated with hydrothermal breccias and stockworks related to a cluster of rhyolite domes intruding sandstones, calcareous siltstones, and limestones of the Cretaceous Caracol Formation. While the upper 40-60 metres is typically oxidized, deeper sulphide mineralization consists of pyrite, silver sulfosalts, sphalerite and galena. An alteration halo exhibiting strong silicification and disseminated pyrite extends outward for hundreds of metres around the silver-lead-zinc zones, providing a larger target that should be detectable by induced polarization (I.P.) geophysics.

As the topography of the area is very subdued and 95% of the property is overburden covered, there is a strong possibility that similar mineralized breccias may lie under cover and have been overlooked in the past. The current geophysical program is designed to detect such buried zones and provide additional targets for drill testing.

Highlights of recent drilling include:

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*Silver equivalent ounces (Ag Eq Oz) for the intercepts above were calculated using prices of US$600/oz for gold, US$12.00/oz for silver, US$0.60/lb for lead, and US$1.50/lb for zinc and recoveries of 70%, 76%, 80% and 80%, respectively. Wardrop Engineering used the same recoveries but different pricing in their 2006 resource estimation.zones.

During February 2007, Great Panther contracted Aeroquest Limited to fly a 550 line kilometre airborne electromagnetic (EM)(“EM”) and magnetic geophysical survey over the Mapimi project. Numerous EM and magnetic targets were detected and field work to validate the various features is on-going. The interpretation of this survey, in conjunction with surface mapping, provided a geological framework for a103 kilometres of detailed induced polarization (“I.P. survey.

”) geophysics. While some of the geophysical anomalies outlined by the airborne survey are directly related to regional geological features, others appear to be related to known mineralization or are spatially associated with zones of strong alteration. The cluster of rhyolite domes associated with the silver-lead-zinc mineralization in the La Gloria-Las Palmitas area has a magnetic response that is replicated in at least two other areas on the extensive 3,508-hectare property. Each of these anomalies is approximately one kilometer in diameter.

Highlights of the second batch of drill holes (SK07-012 to 019, representing 1,454 metres) include 168 g/t silver equivalent (Ag Eq) over 78.65 metres in hole SK07-012; 212 g/t Ag Eq over 21.95 metres in hole SK07-015; and 372 g/t Ag Eq over 32.93 metres in hole SK07-018. All eight holes were drilled in the La Gloria Zone.

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Additional details of intersections from these eight holes, including individual assays for silver, gold, lead and zinc are presented in the table of results below. A plan map showing the new La Gloria drill-hole locations is posted on the Great Panther website atwww.greatpanther.com.

Twenty three core holes, representing 4,745 metres, have been completed to date with assays pending on the last four holes. Results for holes SK07-001 to 011 were announced on April 16, 2007. Aside from the first three holes of the program, which were drilled into the smaller Las Palmitas Zone, drilling by Great Panther has focused on the La Gloria Zone in an effort to expand and better delineate mineralization intersected by Coeur d’Alene Mines Corp., in 1997-98. Data from Coeur’s drilling was used by Wardrop Engineering to calculate the current NI 43-101 Inferred Mineral Resource on these two zones (Great Panther news release September 11, 2006), of 22.3 million oz Ag Eq, contained in 4,969,800 tonnes at a grade of 59 g/t Ag, 0.13 g/t Au, 0.81% Pb and 1.31% Zn (139 g/t Ag Eq).

Consistent with previous drilling, multiple mineralized intervals have been intersected within the latest holes at La Gloria. The mineralization consists of sphalerite, galena, pyrite and minor pyrrhotite in the matrix of hydrothermal breccias and as fracture fillings and disseminations in porphyritic rhyolite. Silver grades show an excellent correlation with lead, while zinc and gold do not correlate with any of the other metals. As relative grades of the four metals can be quite variable, silver equivalents are calculated primarily for comparative purposes.

The structural fabric of the Mapimi Project appears to be complex. The rhyolite intrudes sandstones, calcareous siltstones, and limestones of the Cretaceous Caracol Formation, a common host to many of the world class silver-lead-zinc deposits throughout the Mexican Silver Belt. Pre-mineral faulting and fracturing is intense within and adjacent to the mineralized zones, providing excellent porosity for mineralizing fluids. Post-mineral faulting is also common and offsets mineralized zones in places. While the La Gloria Zone appears to be fault-bounded to the northeast, it is still open to the southwest and Great Panther is currently testing the strike extent of the zone in that direction.

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Highlights of recent drilling include: