TECHNICAL REPORT

ON THE

3Ts GOLD PROJECT

Located in the Nechako Plateau Omineca Mining Division

NTS 93F/3E, 2W53˚ 02’ N Latitude; 125˚ 01' W Longitude

for

Independence Gold Corp.Suite 1410 - 650 West Georgia St., P.O. Box 11584

Vancouver, British Columbia, Canada V6B 4N8

and

Silver Quest Resources Ltd.Suite 1410 - 650 West Georgia St., P.O. Box 11584

Vancouver, British Columbia, Canada V6B 4N8

BY:

Allan Armitage, Ph. D., P. Geol. GeoVector Management Inc.David Pawliuk, B. Sc., P.Geo, Silver Quest Resources Ltd.

November 4, 2011

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TABLE OF CONTENTS PAGETABLE OF CONTENTS................................................................................................................................ 1 LIST OF FIGURES........................................................................................................................................ 1 LIST OF TABLES.......................................................................................................................................... 1 1 SUMMARY............................................................................................................................................ 2 2 INTRODUCTION................................................................................................................................... 3 3 RELIANCE ON OTHER EXPERTS ...................................................................................................... 3 4 PROPERTY DESCRIPTION AND LOCATION..................................................................................... 3

4.1 Tsacha Property............................................................................................................................ 7 4.2 Taken Property.............................................................................................................................. 7 4.3 Tam Property................................................................................................................................. 7 4.4 Tommy Lake Property................................................................................................................... 8 4.5 Surface Rights............................................................................................................................... 8

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPY..... 8 6 HISTORY .............................................................................................................................................. 8 7 GEOLOGICAL SETTING AND MINERALIZATION............................................................................10

7.1 Tommy Vein ................................................................................................................................10 7.2 Ted Vein ......................................................................................................................................14

8 DEPOSIT TYPES................................................................................................................................14 9 EXPLORATION...................................................................................................................................15 10 DRILLING........................................................................................................................................15 11 SAMPLE PREPARATION, ANALYSES AND SECURITY..............................................................15 12 DATA VERIFICATION ....................................................................................................................15 13 MINERAL PROCESSING AND METALLURGICAL TESTING.......................................................16 14 MINERAL RESOURCE ESTIMATE................................................................................................16

14.1 Tommy Vein ................................................................................................................................16 14.2 Ted Vein ......................................................................................................................................17

15 ADJACENT PROPERTIES .............................................................................................................18 16 OTHER RELEVANT DATA AND INFORMATION..........................................................................18 17 INTERPRETATION AND CONCLUSIONS.....................................................................................18 18 RECOMMENDATIONS...................................................................................................................19 19 REFERENCES................................................................................................................................21 20 CERTIFICATES OF AUTHORS - DATED AND SIGNATURES.....................................................22 21 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES & PRODUCTION PROPERTIES........................................................................................27

LIST OF FIGURES

Figure 1 Property Location Map .............................................................................................................. 4 Figure 2 3Ts Tenure Map ........................................................................................................................ 6 Figure 3 3Ts Property Geology with Drill Hole Locations......................................................................12 Figure 4 3Ts Property Geology with Drill Hole Locations in the Ted and Tommy Vein areas ..............13

LIST OF TABLES

Table 1 3Ts Tenure Data ....................................................................................................................... 5 Table 2 Tommy Vein (Tsacha Property) Inferred Resource Estimate (Wallis and Fier, 2002)............17 Table 3 Ted Vein (Tam Property) Inferred Resource Estimate (Wallis and Fier, 2004) ......................18

LIST OF APPENDICES

APPENDIX 1 Listing of Drill Holes Completed on the 3Ts PropertyAPPENDIX 2 Listing of Significant Drill Intersects from Drill Holes Completed on the 3Ts Property: Ted,

Tommy and Mint Veins

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1 SUMMARY

This report summarizes exploration work performed on the 3Ts Gold Project (the “ 3Ts Project”) in central British Columbia. Allan Armitage Ph.D., P.Geol., (“Armitage”) of GeoVector Management Inc. (“GeoVector”), was contracted by Silver Quest Resources Ltd. (“Silver Quest”) to prepare an independent National Instrument 43-101 ("NI 43-101") Technical Report to be filed with the application by Independence Gold Corp. (“Independence”) for a listing on the Toronto Stock Exchange (TSX) Venture Exchange.

Pursuant to the terms of a Letter Agreement between New Gold Inc. (“New Gold”) and Silver Quest Resources Ltd. (“Silver Quest”) dated October 17, 2011, New Gold will acquire Silver Quest’s 25% interest in the Davidson property and all of Silver Quest’s interest in the Capoose Project. Silver Quest will become a wholly-owned subsidiary of New Gold. All of Silver Quest’s properties in the Yukon as well as the 3Ts Project in central British Columbia will be transferred to Independence.

The 3Ts Project is located in the Nechako Plateau region of central British Columbia, approximately 120kilometres southwest of Vanderhoof. The 3Ts Project consists of four contiguous properties: the Tsacha,Tam, Taken and Tommy Lakes properties. Collectively, the 3Ts Project consists of eight mineral claimstotaling 3,105.5 hectares. Silver Quest owns a 100% interest in all properties subject to various NSR agreements ranging from 1 to 4%.

The 3Ts Project has seen exploration for gold and silver by Teck Corporation (“Teck”), Phelps DodgeCorporation of Canada (“Phelps Dodge”), Cogema Limited (“Cogema”) and Silver Quest since 1994.Work has included prospecting, trenching, soil sampling, geophysics and diamond drilling. This work has resulted in the discovery of a number of north-trending low sulphidation epithermal quartz-calcite veins containing significant gold-silver mineralization. The Tommy and Ted veins are the best-known veins within the 3Ts Project area. Inferred Mineral resource estimates have been calculated for both the Tommy Vein and the Ted Vein.

The Tommy Vein has an inferred resource (calculated only above the flat lying microdiorite sill that crosscuts the vein structure) of 552,500 tonnes grading 6.82 grams per tonne (“g/t”) gold and 60.9 g/t silver, at a 3.0 g/t gold cutoff. This equates to a gold equivalent grade of 7.83 g/t, using a 60:1 silver to gold ratio. The Ted Vein contains an inferred resource (also calculated only above the sill) of 273,800 tonnes grading 2.00 g/t gold and 133.0 g/t silver, that equates to a gold equivalent grade of 4.22 g/t. The combined inferred resource for the Tommy and Ted veins (above the sill only) prepared by Wallis and Fier (2002, 2004) was estimated at 826,300 tonnes grading 5.22 g/t gold and 84.8 g/t silver, a gold equivalent grade of 6.64 g/t, representing 138,800 ounces of gold and 2,252,000 ounces of silver.

The results of diamond drilling to date show that the mineralized Ted, Tommy and Mint veins are open at depth, below the crosscutting microdiorite sill. With further drilling there is potential to expand on the resource at the Ted and Tommy veins. With further drilling the potential also exists to define a resource for the Mint Vein. A $1.4 million diamond drilling program, comprising approximately 5,000 metres, continued baseline environmental studies, community consultation, etc. is recommended for the 3Ts Project.

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2 INTRODUCTION

This report summarizes exploration work performed on the 3Ts Project in central British Columbia. Allan Armitage Ph.D., P.Geol., (“Armitage”) of GeoVector Management Inc. (“GeoVector”), was contracted by Silver Quest Resources Ltd. (“Silver Quest”) to prepare an independent National Instrument 43-101 ("NI 43-101") Technical Report to be filed with an application by Independence Gold Corp. (“Independence”) for a listing on the Toronto Stock Exchange (TSX) Venture Exchange.

Under the terms of a binding letter of agreement between New Gold Inc. (“New Gold”) and Silver Quest Resources Ltd. (“Silver Quest”) dated October 17, 2011, New Gold will acquire the Silver Quests’s 25% interest in the Davidson property and all of Silver Quest’s interest in the Capoose Project. Silver Questwill become a wholly-owned subsidiary of New Gold. All of Silver Quest’s properties in the Yukon as well as the 3Ts Project on the Nechako Plateau in central British Columbia will be transferred toIndependence.

Armitage is an independent Qualified Person, and is responsible for the preparation of this technical report. David Pawliuk, B. Sc., P.Geo, (“Pawliuk”) is currently the Vice President of Exploration for Silver Quest and will be the Vice President of Exploration for Independence.

This report is based upon publicly-available assessment reports and unpublished reports and property data provided by Silver Quest, as supplemented by publicly-available government maps and publications.Armitage personally inspected the 3Ts Project on October 27, 2011, accompanied by Pawliuk. Pawliuk has extensive personal knowledge of the 3Ts property from his management of exploration programs since August 2003.

3 RELIANCE ON OTHER EXPERTS

The Authors rely on information from reports prepared by Silver Quest which detail surface and drillresults and resource calculations, as well as other historical reports on the Property. The Authors have reviewed this material and believe that this data has been collected in a careful and conscientious manner and in accordance with the standards set out in NI 43-101. When appropriate, the Authors have relied upon information previously reported in historical reports, including text excerpts and direct reproduction of figure information to illustrate discussions in the text.

4 PROPERTY DESCRIPTION AND LOCATION

The 3Ts Project is located in the Nechako Plateau region of central British Columbia, approximately 120kilometres southwest of Vanderhoof (Figure 1). The 3Ts Project consists of four contiguous properties: the Tsacha, Tam, Taken and Tommy Lakes properties. Collectively, the 3Ts Project consists of eight mineral claims totaling 3,105.5 hectares (Table 1) (Figure 2).

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Figure 1 Property Location Map

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Table 1 3Ts Tenure Data

Tenure Number

Property Name

Property Owner Issue Date Renewal Date Area (hectares)

323457 Taken Silver Quest January 31, 1994 October 6, 2015 500

516422 Tsacha Silver Quest November 23, 1995 October 6, 2015 524.92

516843 Tsacha Silver Quest June 3, 1994 October 6, 2015 408.39

510136 Tam Silver Quest April 4, 2005 October 6, 2015 369.44

510137 Tommy Silver Quest September 13, 2003 October 6, 2014 155.47

516807 Tsacha Silver Quest May 31, 1994 October 6, 2015 408.18

516797 Tsacha Silver Quest January 28, 1994 October 6, 2015 311.14

517484 Tsacha Silver Quest June 3, 1994 October 6, 2015 427.94

Total: 3,105.48

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Figure 2 3Ts Tenure Map

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4.1 Tsacha Property

Pursuant to an agreement (the “Option Agreement”) with Teck Cominco Limited (“Teck”) dated April 2, 2002, Silver Quest earned a 100% interest in the five Tsacha claims (the “Tsacha Property”), subject to a net smelter return (“NSR”) royalty and a “back-in” right that were retained by Teck. The NSR royalty was a two-tiered arrangement that was tied to gold prices and gold production volumes. The rate of royalty ranged from a minimum of 2.5% at gold prices (per ounce) of US$325 or less to a maximum of 4.5% at gold prices of US$450 or more. In addition, the rate of royalty payable on gold production would have applied to all other metals that may have been produced. The royalty and back-in rights were also applicable to any production from adjacent claims (collectively, the“3Ts Project”) held by, or that might subsequently be acquired by, Silver Quest.

The provisions of the Option Agreement, particularly the back-in right, proved to be a significant impediment to raising funds to explore the property. As a consequence, for several years, the Tsacha Property was essentially placed on a “care and maintenance” program and only minor exploration programs were carried out.

On May 12, 2011 Silver Quest announced the terms of the Option Agreement had been amended.Pursuant to the amendment, the NSR royalty payable to Teck on gold and other metals produced from the 3Ts Project was reduced from the previous range of 2.5% to 4.5% to a flat 2.0% and the back-in right was extinguished.

As consideration for Teck agreeing to the amendments referred to above, Silver Quest: (i) issued one million of its common shares to Teck; (ii) will make a one-time payment to Teck upon the project achieving commercial production of an amount equal to $5.00 per ounce of gold multiplied by the number of ounces of gold in the reserve and resource categories reported in the feasibility study used to make the decision to place the project into commercial production; (iii) will pay a flat 2% NSR royalty on gold and all other metals produced from the project; and (iv) if before December 31, 2013, Silver Quest sells, leases or options the property to a third party, Silver Quest will pay to Teck 10% of the gross proceeds received by Silver Quest from such sale, lease or option.

4.2 Taken Property

Pursuant to a letter agreement (the “Agreement”) dated January 25, 2002, between Silver Quest and Phelps Dodge Corporation of Canada Limited (“Phelps Dodge”), Silver Quest earned a 100% interest in the Taken Property, which consists of one claim. Phelps Dodge retained NSR royalty on production from the claim. The royalty rate is a function of the gold price, as follows:

Gold price NSR rate

Less than $325 2.0%$325 to 375 2.5%$375 to 450 3.0%Greater than $450 4.0%

At any time, Silver Quest may reduce the NSR payable to 1.0% by paying Phelps Dodge $2,000,000 per 1%. Production from the property is also subject to the royalty payable to Teck pursuant to the terms of the Option Agreement discussed above.

4.3 Tam Property

Pursuant to a letter agreement dated October 25, 2001 between Silver Quest and Kleinebar Resources Ltd., Silver Quest acquired a 100% interest in the Tam 1 and Tam 2 claims. Kleinebar retained a 1% NSR royalty. Silver Quest may purchase one-half the royalty (i.e., 0.5% NSR) at any time by making a payment of $250,000. The Tam 1 and Tam 2 claims were subsequently merged into a single claim (Tam).

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Production from the property is also subject to the royalty payable to Teck pursuant to the terms of the Option Agreement discussed above.

4.4 Tommy Lake Property

Silver Quest owns a 100% interest in the Tommy Lake Property. This interest was acquired by staking.The only royalty payable on this property is the one payable to Teck pursuant to the terms of the Option Agreement discussed above.

4.5 Surface Rights

Surface rights over the properties comprising the 3Ts Project are owned by the Province of British Columbia. Exploration permits must be obtained from the British Columbia Ministry of Energy, Mines and Petroleum Resources prior to carrying out further mechanized exploration on the property. Roads and cat trails are present on the property and were constructed for mineral exploration and for logging. However, there has been no significant surface disturbance and no material environmental liabilities were noted during the Author’s field visit.

Exploration permits were obtained and Silver Quest implemented an exploration program on the 3Ts Project during the 2011 field season that involved an expenditure of approximately $550,000.

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

The 3Ts Project is located in central British Columbia, approximately 120 km southwest of the town of Vanderhoof (Figure 1). A network of logging roads provides access to the property. The Kenney Dam Road is first taken south-westerly from Vanderhoof for 25 km to the junction with the Kluskus Forest Service Road, which is then followed southwest to the 161.3 km marker. The Ootsa 9000 Road is then followed for 13 km to the southeast to reach the east-central part of the property area (Figure 2). Drill roads and bulldozer tracks lead from the end of the Ootsa 9000 Road into the property area. Driving time from Vanderhoof to the property is generally 3.5 hours. Most of the trip is along the Kluskus Forest Service Road, which carries a large volume of heavy industrial traffic (logging trucks) on week days.Vehicles travelling the Kluskus Forest Service Road should be radio-equipped, and should carry spare fuel.

The project area is within the Nechako Plateau of central British Columbia. Elevations in the property area range from about 1,050 metres to about 1,280 metres above sea level. The terrain consists of rounded hills separated by swamps and small lakes. Pine, spruce, aspen and alder trees grow in the property area. Most of the pine trees are dead or dying because of the mountain pine beetle infestation and the eastern third of the property area was incinerated by a forest fire in August, 2010. Thick glacial till covers the bedrock is most places, and outcrop exposure is sparse. Soils are poorly developed. Summer weather is cloudy with frequent showers, and winters are dry and cold.

6 HISTORY

Tipper (1963) mapped the geology of the region at 1:250,000 scale for the Geological Survey of Canada.More recently, detailed mapping in the property area was carried out by Diakow, Webster, Levson and Giles (1994) of the British Columbia Geological Survey.

The 3Ts Project area has been explored for gold since 1994, following the discovery of gold-bearing quartz veins by the British Columbia Geological Survey; samples collected from these veins contained up to 3.7 g/t gold and up to 41.8 g/t silver (Diakow and Webster, 1994). Teck Corporation (Teck) staked the occurrence in early 1994 as the TSACHA claim. Cogema Limited (Cogema) and Phelps Dodge Corporation of Canada (Phelps Dodge) staked adjoining ground to the east. Silver Quest restaked the Cogema property in 2001 as the Tam mineral claim.

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Teck delineated four veins and a vein-stockwork zone by prospecting and trenching during 1994 (Paulter and Weicker 2002). Follow-up work included further trenching, geophysical and geochemical surveys, and completion of 16,073.2 metres of diamond drilling in 81 holes throughout the property area by 1998.

Silver Quest optioned the Tsacha property from Teck in early 2002 and carried out a total of 951.6 m of diamond drilling in seven holes during 2002. Six of these holes were drilled on the Tommy Vein, and one hole was drilled on the Larry Vein (McIvor, 2002). Wallis and Fier (2002) calculated an Inferred Resource for the Tommy Vein. The Tommy Vein contains an Inferred Resource of 470,700 tonnes at a grade of 7.4 g/t gold and 65.22 g/t silver. Contained ounces are 112,000 ounces of gold and 987,000 ounces of silver.

Rhys (2003) studied the structural setting and character of the mineralized veins on the property, and Ross (2003) carried out petrographic studies of rock samples from the property.

During September 2003 Silver Quest briefly prospected the area west of the Tommy Vein, where Rhys (2003) had identified an area of altered rock. The area north of Tommy Lake was also prospected, in an attempt to discover the presumed northern extension of the Tommy Vein structure (Pawliuk, 2003). In addition, a small vein quartz boulder was discovered along the creek that flows eastwards from the eastern end of Tommy Lake during November, 2003. This boulder contained 70 parts per billion (ppb) gold and 9.6 parts per million (ppm) silver. The bedrock source of this boulder is unknown, but may be the northern extension of the Tommy Vein.

Prospecting and geochemical sampling by Phelps Dodge and by Cogema during 1994 resulted in the discovery of the Mint Showing, containing 5,060 ppb gold, and the Ted Showing, with 1,490 ppb gold (Fox, 1996). Both of these showings are located on the Tam property.

Phelps Dodge optioned the Tam property from Cogema in 1995 and carried out prospecting, line cutting, geological mapping, trenching and soil sampling. Phelps Dodge drilled a total of 1,263.1 metres in nine holes during 1996. Two of these holes tested the north end of the Mint Vein, and seven holes tested the Ted Vein. Hole 252-09 on the Ted Vein returned an intersection grading 8.88 g/t gold and 393.6 g/t silver across a true width of 6.46 m (Fox, 1996).

Phelps Dodge performed geochemical soil sampling, induced polarization surveying, rock trenching and excavated six test pits during 1998. The rock trenching was done in the northern part of the Tam property, north of the Mint Vein. Trench chip sampling results returned an average of 4.7 g/t silver, 680 ppm copper, 1,810 ppm lead and 637 ppm zinc across 29.5 metres. The mineralization exposed in the trench was thought to be characteristic of the upper levels of an epithermal vein system (Fox, 1999).

Silver Quest staked the Tam property in October 2001. Silver Quest performed linecutting, resistivity surveying and diamond drilling of 360.9 m in four holes on the Tam property during late 2002 (McIvor, 2002).

Silver Quest drilled a total of 1,541.8 m in fourteen holes on the Tam property during March and April of 2003; this drilling was done on both the Ted Vein and the Mint Vein (McIvor, 2003).

The Ringer Target was discovered during 2003 prospecting of the Tam property area. Eight samples of Ringer mineralized vein material contained an average of 19.01 g/t gold and 140.1 g/t silver (see Silver Quest news release dated September 24, 2003 and posted on www.SEDAR.com).

Silver Quest drilled a total of 1,859.87 m in nine holes on the Tam property during November and December 2003. This drilling was done to test the Ted Vein, mainly down-dip and to the south of earlier drill holes.

Wallis and Fier (2004) calculated an Inferred mineral resource of 273,800 tonnes grading 2.0 g/t gold and133 g/t silver, for the upper part of the Ted Vein.

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Subsequent to the NI 43-101 inferred resource calculations on the Ted and Tommy Veins, diamond drilling was completed on the Ted Vein in April 2006, and again during December 2006, and on the Tommy Vein from November 2004 to March 2005 on behalf of Silver Quest. This drilling is described below.

7 GEOLOGICAL SETTING AND MINERALIZATION

The 3Ts Project is located within the southern Nechako Plateau. Igneous and sedimentary rocks of the Jurassic to Tertiary age Stikine Terrane underlie the region.

The 3Ts Project is within the Fawnie Creek map-area. This area is located along the southern margin of the Nechako Uplift, which is a northeast-trending, structurally raised block. The structural uplift provides a window through younger cover rocks to the underlying, regionally extensive, volcanic and sedimentary rocks of the Lower to Middle Jurassic Hazelton Group, and to the Late Jurassic Bowser Lake Group.These stratified rocks are intruded by granodiorite to granite of the Late Cretaceous Capoose Batholith.Eocene volcanic rocks of the Ootsa Lake and Endako Groups locally overlie the older rocks. Younger, Miocene olivine basalt of the Chilcotin Group forms rare cappings on hills within the Nechako Uplift.

Quartz- and feldspar-phyric rhyolite (“RQFP”) tuffs and flows of the Entiako Formation are locally the most abundant rock unit and host the mineralized epithermal gold-silver veins (Figure 3). The Entiako Formation is the lowermost rock unit within the Hazelton Group. Naglico Formation andesite flows locally conformably overlie the Entiako Formation rocks. Late Cretaceous microdiorite sills and dykes intrude the above rocks, and cut the mineralized veins.

Mineralization on the property is contained within numerous north-trending low sulphidation epithermal quartz-calcite veins and includes the Tommy, Ted, Mint, Hidden, Johnny, Billy, Hidden and Goofy veins(Figure 3). These veins are generally located within the central part of the 3Ts Project area.

The Tommy and Ted veins are the best-known veins within the 3Ts Project area (Figure 4). These quartz-calcite veins strike north-northwesterly and have subvertical dips. The veins are described in detail in reports by Pawliuk (2004 and 2005).

7.1 Tommy Vein

The Tommy Vein is a north-northwesterly striking, subvertical quartz-calcite vein located within the central portion of the Tsacha mineral claim (Pawliuk 2004). The vein formed by open space filling along a fault with small right-lateral displacement (Rhys, 2003). Local bends in the fault can create dilational jogs where the vein may widen to fill the resulting openings. Vein breccia fragments indicate that faulting occurred during vein formation. The vein breccia fragments, local crustiform banding and comb crystal structures indicate that the Tommy Vein has an epithermal character, and formed at a shallow depth.

The Tommy Vein is comprised of from 30 to 65% quartz and from 35 to 70% calcite. The vein is mottled; its colour varies from pale grey to creamy white to pale pink to pinkish red. The Tommy Vein has been brecciated and rehealed; the vein material observed in drill cores appears to have undergone at least three or four such episodes of veining and brecciation. The early vein fragments within the brecciated intervals vary from light grey to off-white to pale reddish brown in colour, and are locally rimmed by pyrite grains up to 2 mm across. These pyrite grains themselves are sometimes rimmed by dark sulphosalt(?).

Calcite within the Tommy Vein is generally granular in texture but also occurs in late, crosscutting veinlets.

The Tommy Vein is generally medium to fine grained, granular and sugary with faint, centimetre scale, alternating bands of quartz and calcite. The vein is locally finely banded on a millimetre scale. The vein usually contains from 10 to 40% variably silicified and assimilated RQFP fragments. The RQFP fragments

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are crosscut by light grey quartz veinlets, which are themselves crosscut by a younger phase of TommyVein material in drill hole TS-04-90.

Open cavities up to 10 mm across are lined by pale grey, subhedral quartz or calcite crystals.

The RQFP is generally pervasively silicified, bleached, brecciated and healed by quartz-calcite veins and veinlets across widths of up to about 10 metres along both the upper and lower contacts with the Tommy Vein. In addition, the RQFP wallrock contains up to 3% pyrite as round blebs up to 3.5 mm across; these blebs sometimes contain radiating pyrite crystals.

The Tommy Vein contains traces to locally about 1% combined pyrite and dark sulphosalt(?). The sulphides occur as dusty disseminated masses with faint margins, and as small grains. Pyrite is the most abundant sulphide. Grey, sooty sulphosalt(?) forms hairline, stylolitic veinlets in vein quartz in drill hole TS-04-97.

About 3% combined sulphosalt(?), brown sphalerite, galena and pyrite occur across 75 cm in RQFP wallrock in hole TS-04-97. The sphalerite here occurs as subhedral crystals up to 7 mm across with sulphosalt(?) and traces galena. Rare traces of blonde sphalerite occur as very fine grained, disseminated blebs elsewhere within the Tommy Vein.

The Tommy Vein contains about 1% bright red hematite as dusty disseminated masses, spots and veinlets with faint margins. Irregular, stylolitic veinlets of hematite +/- pyrite locally occur within the Tommy Vein. Irregular veinlets of pink rhodochrosite(?) also occur locally.

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Figure 3 3Ts Property Geology with Drill Hole Locations

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Figure 4 3Ts Property Geology with Drill Hole Locations in the Ted and Tommy Vein areas

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7.2 Ted Vein

The Ted Vein is mottled; its colour varies from pale grey to light greyish brown to creamy white to medium grey to greyish blue. The Ted Vein has been brecciated and re-healed; the vein material observed in drill cores appears to have undergone at least three or four such episodes of veining and brecciation.

Ted Vein quartz is locally finely banded on a millimetre scale. The vein usually contains from 10 to 40% variably silicified and assimilated RQFP fragments. The vein generally contains 5 to 10% pale brown to brownish white to pale pink-orange calcite, often as late vein material cementing brecciated vein quartz fragments. Open cavities up to 20 x 8 mm across are lined by pale grey, subhedral quartz or calcite crystals; these cavities form up to 2% of the rock volume. Some cavities lined by euhedral quartz crystals are infilled by later calcite. Pinkish orange rhodochrosite(?) forms about 1% of the Ted Vein within drill hole TT-03-30 (Pawliuk, 2004).

The RQFP wallrock is generally pervasively silicified, brecciated and healed by quartz-calcite veins and veinlets across widths of up to about 10 metres along both the upper and lower contacts with the Ted Vein..

The Ted Vein usually contains about 0.5% combined sulphide minerals. The most abundant sulphide is pyrite, which occurs mostly as finely disseminated, subhedral grains. Grey, sooty pyrite(?) forms hairline, irregular, stylolitic veinlets crosscutting vein quartz in drill hole TT-03-30 (Pawliuk, 2004). Variable amounts of chalcopyrite, blonde or grey sphalerite, dark bluish, metallic sulphosalt(?) and galena also occur within the Ted Vein. The chalcopyrite occurs as occasional, irregular, wispy masses that are generally rimmed by sulphosalt(?). Subhedral sphalerite blebs, usually 2 to 5 mm across, are also rimmed by sulphosalt(?). Sulphosalt(?) within the Ted Vein mostly occurs as rims around sulphide mineral grains, or as irregular, branching masses up to 3 or 4 mm across. Galena occurs as rare disseminated grains.Early vein quartz fragments within the Ted Vein breccia generally contain more abundant sulphosalt(?) and sulphide minerals than do later generations of vein quartz or calcite within the vein structure.

Bright red, dusty disseminated hematite locally occurs within the Ted Vein.

The Ted Vein structure within the southernmost two drill holes, TT-03-34 and TT-03-35, is a breccia with 70 to 85% RQFP wallrock fragments cemented by 15 to 30% vein quartz. Local, irregular, off-white to pale pinkish calcite veinlets, up to 6 mm wide, form up to 0.5% of the rock volume. The Ted Vein breccia here has gradational contacts with the adjacent RQFP wallrock (Pawliuk, 2004).

The Ted Vein is offset by brittle, post-mineral faults that are marked on surface by prominent topographic lineaments and gullies. These post-mineral faults strike east-northeasterly.

8 DEPOSIT TYPES

The quartz-calcite veins on the 3Ts Project formed by open space filling along faults with small right-lateral displacement (Rhys, 2003). Local bends along a fault can create dilatational jogs where the vein may widen to fill the resulting openings. Vein breccia fragments indicate that faulting occurred during vein formation. The vein breccia fragments, local crustiform banding and comb crystal structures indicate that the veins have an epithermal character, and formed at shallow depths.

The general geological and mineralogical characteristics of the quartz-calcite veins on the 3Ts Project are typical of low sulphidation epithermal gold-silver deposits (Hedenquist, Arribas and Gonzalez-Urien, 2000).

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9 EXPLORATION

Subsequent to the NI 43-101 inferred resource calculations on the Ted and Tommy veins, diamond drilling was completed on the Ted Vein in April 2006, and again during December 2006, and on the Tommy Vein from November 2004 to March 2005 on behalf of Silver Quest.

Two diamond drill holes in June and July 2011 tested the Ted Vein at depth, and a third hole tested the vein structure along strike to the north. Seven holes were drilled in the Mint Vein – Ringer Target area. Prospecting was also performed at the 3Ts property from June to September 2011. The best assay to date from the mineralized vein boulders sampled during 2011 is 8.31 g/t gold with 56.3 g/t silver (see Silver Quest news release dated July 26, 2011 and posted on www.SEDAR.com).

The 2005, 2006 and 2011 drilling is described briefly below. A complete list of drill hole locations is presented in Appendix 1. A list of significant gold-silver intercepts for the Ted, Tommy and Mint veins is presented in Appendix 2.

10 DRILLING

Silver Quest performed diamond drilling on the Tam property in April 2006, and again during December 2006. These diamond drilling programs tested the Ted Vein structure at depth, below a crosscutting microdiorite sill. The Ted Vein intercept in hole TT06-38 assayed 2.68 g/t gold and 152.1 g/t silver across an estimated true width of 17.2 m, and the intercept in TT06-40 assayed 2.78 g/t gold and 450.2 g/t silver across an estimated true width of 3.1 m (see Silver Quest news releases dated April 25, 2006 and February 20, 2007 posted on www.SEDAR.com).

Two diamond drill holes in June and July 2011 tested the Ted Vein at depth, and a third hole tested the vein structure along strike to the north. One vein intercept assayed 5.33 g/t gold and 50.6 g/t silver (weighted average) from 301.85 m to 326.03 m depth, across an estimated true width of 14.0 m in hole TT11-47.

Diamond drilling (12 holes, 3,130 m) was performed on the Tsacha property from November 2004 to March 2005. Most of this drilling tested the Tommy Vein structure at depth, below a crosscutting microdiorite sill. Two of the drill holes tested the Larry Vein below the same sill. The best Tommy Vein intercept assayed 10.89 g/t gold and 60.2 g/t silver from 220.56 m to 229.42 m depth, across an estimated true width of 6.0 m in hole TS05-108 (see Management’s Discussion & Analysis dated July 29, 2005 and posted on www.SEDAR.com).

11 SAMPLE PREPARATION, ANALYSES AND SECURITY

Sample preparation, analyses and security for sampling on the 3Ts Project were supervised by Pawliuk from November 2003 through July 2011, with the exception of the December 2006 drill program. Sample preparation, analyses and security for sampling on the 3Ts Project prior to 2003 are described in Pautler and Weicker (2002) and McIvor (2002, 2003). The writers have determined and are confident that adequate sample preparation, analyses and security procedures for drilling on the 3Ts Project were all performed in accordance with industry standards.

The geochemical analyses and assays of the core and rock samples from the 3Ts were all performed by certified laboratories, in accordance with industry standards.

12 DATA VERIFICATION

Data verification for rock and core samples on the 3Ts Project was completed by Pawliuk from November 2003 through July 2011, with the exception of the December 2006 drill program. Data verification of samples on the 3Ts Project prior to 2003 is described in Pautler and Weicker (2002). The writers have

16

determined and are confident that the data for drilling on the 3Ts Project has been verified and analytical procedures were performed in accordance with industry standards.

13 MINERAL PROCESSING AND METALLURGICAL TESTING

It is believed that no metallurgical test work has been completed on the 3Ts Project.

14 MINERAL RESOURCE ESTIMATE

Pautler et al, (1998) reported a previous resource for the Tommy Vein above the sill as 478,000 tonnes at a grade of 8.72 g/t gold and 82.3 g/t silver at a 3 g/t gold cutoff. This estimate is considered historical and may not meet the definitions as required by NI 43-101.

Mineral resource estimates have been calculated for the Tommy Vein (Tsacha Property) and the Ted Vein (Tam Property) (Figures 3, 4) and are described below. The estimation of these resources has been prepared according to accepted industry standards using accepted practices and the work completed has been both thorough and as accurate as possible given the available database.

14.1 Tommy Vein

Sundance Ventures (“Sundance”) was retained by Silver Quest to complete a resource estimate and an independent NI 43-101 Technical Report on the Tommy Vein (Wallis and Fier, 2002).

Sundance received data from Teck in the form of a partial Gemcom database (PXDBTS) and in Excel spreadsheets that were imported into the database. Validation of the database included checking for duplicates and drill hole locations electronically. Plans and sections generated in Gemcom were crosschecked with hand copies of previous work to confirm the accuracy of drill hole placement and down-hole intercepts.

The resource estimation considered only the upper-portion (above the sill) of the Tommy Vein, as there was insufficient intercepts to estimate a resource below the vein at the time. The other veins such as the Larry and Johnny (Fig. 3) also lacked sufficient data to statistically complete an estimation. The raw drill hole assay data was statistically reviewed and a top-cut of 30 g/t gold was determined. Compositing of the mineralized intervals was completed on 0.3-meter intervals that reflect the geologic and grade constraints of the vein. A geologic shape (solid) was created based on a 1 g/t gold cutoff in any given drill hole or trench. Lithologic, gold and silver modelling was completed within this shape. No accurate surface topographic map was supplied for estimation; therefore, an approximation of the surface was made.

ID5 interpolation was used to create a gold and silver block model using a density of 2.65 (from Teck references). ID5 is considered suitable for narrow vein systems and will not result in an unusually large spreading of high-grade values. A 5 m x 5 m x 5 m block size, with a search radius of 100 metres down dip, 50 metres along strike and 25 metres along the width and an arbitrary Nugget Effect with a sill of 0.2 and an equivalent search radius as above was used. The minimum number of sample points required to generate a grade model were 2, with a maximum of 12.

In addition, grade-thickness block models of the Tommy Vein were generated for both gold and gold equivalent based on a ratio of 1:60 gold to silver. This ratio is based on a price ratio alone (US$5.00/ounce silver and US$300/ounce gold) and does not take into account variations in metallurgical recoveries or other smelter charges. The gold equivalent model clearly shows the presence of two intersecting shoots. The resource estimate at a variety of cutoff grades is given in Table 2.

17

Table 2 Tommy Vein (Tsacha Property) Inferred Resource Estimate (Wallis and Fier, 2002)

Cutoff Volume Density Tonnes Gold Silver Gold Silver (g/t Au) (m3) (t/m3) (t) (g/t) (g/t) (ozs) (ozs)

>10 22,151 2.65 58,700 17.14 80.1 32,351 151,167 5 124,309 2.65 329,419 8.61 67.2 91,199 711,905 4 177,631 2.65 470,722 7.40 65.2 112,005 987,154 3 208,497 2.65 552,517 6.82 60.9 121,163 1,081,406 2 252,395 2.65 668,847 6.07 55.2 130,543 1,186,289 1 318,104 2.65 842,976 5.14 49.6 139,321 1,344,695

0.5 318,104 2.65 842,976 5.14 49.6 139,321 1,344,695 <0.5 356,977 2.65 945,989 4.58 44.2 139,313 1,344,460

Using a 4 g/t gold grade cutoff, Sundance estimates the Tommy Vein contains an Inferred Resource of 470,700 tonnes at a grade of 7.4 g/t gold and 65.22 g/t silver . Contained ounces are 112,000 ounces of gold and 987,000 ounces of silver.

The classification of the resource as Inferred Mineral Resource meets the definitions of Inferred Mineral Resources as stated by NI 43-101 and defined by the CIM Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM council on August 20, 2000.

14.2 Ted Vein

Sundance was retained by Silver Quest to complete a resource estimate and an independent Technical Report to meet the requirements of NI 43-101 on the Ted Vein, Tam Property in British Columbia (Wallis and Fier, 2004).

At the time of the resource calculation, the Ted Vein had been tested with 28 drill holes including 252-3 to 252-9, TT-02-10 to TT-03-21 and TT-03-28 to TT-04-36 (Appendix 1). Of these, 14 had significant intercepts based on a minimum width of 1.5 m and a cutoff grade of 4 g/t gold equivalent.

All the available data was compiled and entered into a Gemcom database (GCEOSR). This data was primarily retrieved from Silver Quest databases. During data review, the continuity of data for the Ted Vein was found to have discrete boundaries of gold and silver mineralization. These boundaries were established within the modeling program and used statistically and geostatistically for resource estimation. A geologic shape (resource shape) of the vein was estimated as defined by geologic interpretation supported by sampling results.

The following assumptions were used for estimation:

o Raw data was composited to statistical relevant lengths of 1 m or less

o Block dimensions of 2.5 m x 2.5 m x 5 m were used based on geologic constraints and potential future mining method

o ID5 interpolation method was used to create the gold and silver models. Variography is recommended for future interpolation

18

o Block models were classified into Inferred Resources according to appropriate criteria based on sample sets and search radii

o A specific gravity of 2.69 was assumed based on limited analyses carried out by Silver Quest

o A search ellipse of 100m x 100m x 100m in the x, y and z direction was used for interpolation

High-grade values were cut to 34 g/t gold and 1,000 g/t silver based on the statistical review of a log probability plot on the raw data.

At an average grade of 4.2 g/t gold equivalent, the Inferred Mineral Resource is stated as 273,800 tonnes grading 2.0 g/t gold and 133 g/t silver containing approximately 17,400 ounces of gold and 1,172,000ounces of silver (Table 3). The gold equivalent based is based on a ratio of 1:60 gold to silver, assuming 100% recovery.

Table 3 Ted Vein (Tam Property) Inferred Resource Estimate (Wallis and Fier, 2004)

Cutoff Volume Density Tonnes Gold Silver Gold Silver

(g/t AuEq) (m3) (t/m3) (t) (g/t) (g/t) (ozs) (ozs)

9.2 5,762 2.69 15,500 6.3 172 3,100 85,300 8.0 20,297 2.69 54,600 4.4 214 7,800 375,000 5.0 67,286 2.69 181,000 2.6 146 15,300 849,000 4.2 101,784 2.69 273,800 2.0 133 17,400 1,172,000

The estimation of the resource as stated above was prepared according to accepted industry standards using accepted practices and that the work completed has been both thorough and as accurate as possible given the available database. The classification of the resource as Inferred Mineral Resource meets the definitions of Inferred Mineral Resources as stated by NI 43-101 and defined by the CIM Standards on Mineral Resources and Reserves Definitions and Guidelines adopted by the CIM council on August 20, 2000.

15 ADJACENT PROPERTIES

There is no information on properties adjacent to the 3Ts Project necessary to make the technical report understandable and not misleading.

16 OTHER RELEVANT DATA AND INFORMATION

There is no other relevant data or information available that has not been included in this report.

17 INTERPRETATION AND CONCLUSIONS

The 3Ts Project has been explored for gold and silver by Teck, Phelps Dodge, Cogema and Silver Questsince 1994. Work has included prospecting, trenching, soil sampling, geophysics and diamond drilling. This work has resulted in the discovery of a number of north-trending low sulphidation epithermal quartz-calcite veins containing significant gold-silver mineralization. The Tommy and Ted veins are the best-

19

known veins within the 3Ts Project area. Inferred Mineral resource estimates have been prepared for both the Tommy Vein and the Ted Vein.

The Tommy Vein has an inferred resource (calculated only above the flat lying microdiorite sill that crosscuts the vein structure) of 552,500 tonnes grading 6.82 g/t gold and 60.9 g/t silver, at a 3.0 g/t gold cutoff. This equates to a gold equivalent grade of 7.83 g/t, using a 60:1 silver to gold ratio. The Ted Vein, based on 17 drill holes, has an inferred resource (also calculated only above the sill) of 273,800 tonnes grading 2.00 g/t gold and 133.0 g/t silver, that equates to a gold equivalent grade of 4.22 g/t. The combined inferred resources for both the Tommy and Ted veins (above the sill only) prepared by Wallis and Fier (2002, 2004) was estimated at 826,300 tonnes grading 5.22 g/t gold and 84.8 g/t silver, a gold equivalent of 6.64 g/t gold, representing 138,800 ounces of gold and 2,252,000 ounces of silver. This inferred resource does not incorporate the results of subsequent drilling.

The results of diamond drilling to date show that the mineralized Ted, Tommy and Mint Veins are open at depth, below the crosscutting microdiorite sill. With further drilling there is potential to expand on the resource at the Ted and Tommy veins. With further drilling the potential also exists to define a resource for the Mint Vein.

The bedrock source of the mineralized vein boulder float at the Ringer Target remains unknown, but is presumed to be an overburden-covered vein located within the 3Ts Project area, to the west of the mineralized boulders. Glacial ice moved from west to east across the 3Ts Project during the last glacial event (Diakow, Webster, Whittles, Richards, Levson and Giles, 1995). The bedrock sources of certain other mineralized vein boulders are also unknown, but are also presumed to be overburden-covered veins located within the 3Ts Project property area. With further exploration, the potential exists to discover additional mineralized veins and to expand the total resource on the 3Ts Project property.

18 RECOMMENDATIONS

ProgramIt is strongly recommended that the resource estimates for both the Tommy Vein and the Ted Vein be updated to incorporate the results of diamond drilling completed since the inferred resource estimates by Wallis and Fier in 2002 and 2004.

The Mint Vein structure should be tested by further diamond drilling below the crosscutting microdiorite sill. Drilling should begin both down-dip and north of hole TT11-50, with one hole approximately 275 m in length, and two holes each approximately 425 m in length in the first phase.

The Ted Vein structure should be tested by further diamond drilling below the microdiorite sill. Drilling should begin south of holes TT04-37 and TT11-47, with two holes approximately 325 m and 425 m in length in the first phase. As well drilling should test the Ted Vein north of hole TT06-43, with one hole approximately 375 m in length in the first phase.

Additional drill holes will be considered based on results, to test these vein structures, both down-dip, and along strike. Continued exploration across the property is encouraged as there is high potential to discover additional mineralized veins.

BudgetA proposed budget for 2012 phase 1 exploration program at the 3Ts Project area is outlined below.

Resource Evaluation $15,000.00Diamond Drilling5,000 m NQ diamond drilling $1,000,000.00Assays $10,000.00

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Excavator:drill pads, road building $25,000.00

Engineering, supervision, reporting $45,000.00Baseline Environmental StudiesWeather station, water sampling, etc. $60,000.00Community ConsultationsFirst Nations consultations, permitting, etc. $20,000.00

Sub-Total $1,175,000.00Contingency (10%) $117,500.00Administration (10%) $117,500.00Total $1,410,000.00

21

19 REFERENCES

Craig, F. and Jackman, N. (2005) An archaeological impact assessment of mining exploration in the Tommy Lakes area, Heritage Inspection Permit 2004 – 311; private report prepared by Traces Archaeological Research & Consulting Ltd. for Southern Rio Resources Ltd.

Diakow, L.J. and Webster, I.C.L. (1994): Geology of the Fawnie Creek map area (NTS 93F/3); in Geological Field Work 1993, British Columbia Ministry of Energy, Mines and Petroleum Resources Paper 1994 – 1, pages 15 - 26.

Diakow, L.J., Webster, I.C.L., Levson, V.M., Giles, T.R. (1994): Bedrock and surficial geology of the Fawnie Creek map area (NTS 93F/3); British Columbia Ministry of Energy, Mines and Petroleum Resources Open File 1994 – 2.

Fox, P.E. (1996): Diamond drilling, geological and soil sampling report on the Tam property, Phelps Dodge Corporation of Canada Ltd.; British Columbia Ministry of Energy, Mines and Petroleum Resources assessment report 24710.

Fox, P.E. (1999): Geological, geochemical and geophysical report on the Taken property, Phelps Dodge Corporation of Canada Ltd. on behalf of Paramount Ventures & Finance Inc.; British Columbia Ministry of Energy, Mines and Petroleum Resources assessment report 25810.

Hedenquist, J.W., Arribas, A.R. and Gonzalez-Urien, E. (2000): Exploration for epithermal gold deposits; Society of Economic Geologists, Review 13, pages 245 – 277.

McIvor, D.F. (2002): Summary Report, The spring 2002 diamond drilling program on the Tsacha property, Omineca Mining Division, central B.C.; report prepared for Southern Rio Resources Ltd.

McIvor, D.F. (2003): Summary Report, The spring 2003 diamond drilling program on the Tam property, Omineca Mining Division, central B.C.; engineering report prepared for Southern Rio Resources Ltd. and filed on SEDAR July 18, 2003.

Mitchell, S. and Wadley, G. (2007): A preliminary environmental assessment of the 3Ts exploration area; report prepared by Nortec Consulting for Silver Quest Resources Ltd.

Paulter, J.M., Smith, S. and Lane, R.A. (1998): Exploration and geology of the Tsacha epithermal gold deposit; Exploration and Mining in British Columbia - 1998, British Columbia Ministry of Energy, Mines and Petroleum Resources annual report, pages B-1 to B-10.

Paulter, J.M. and Weicker, R.F. (2002): Geological report for Southern Rio Resources Ltd. on the Tsacha property; technical report prepared for Southern Rio Resources Ltd. and filed on SEDAR February 6, 2003.

Pawliuk, D.J. (2003): 3Ts Project, exploration progress report on geochemical rock and soil sampling, prospecting, excavator trenching and geological mapping; report prepared for Southern Rio Resources Ltd.

Wallis, C. S., and Fier, N. E. (2002): TECHNICAL REPORT ON THE TSACHA PROPERTY, BRITISH COLUMBIA, Nechako Plateau, Omineca Mining Division, British Columbia for Southern Rio ResourcesLtd.. (available at www.SEDAR.com), 25 p

Wallis, C. S., and Fier, N. E. (2004): TECHNICAL REPORT ON THE TAM PROPERTY, BRITISH COLUMBIA, Nechako Plateau, Omineca Mining Division, British Columbia for Southern Rio Resources Ltd.. (available at www.SEDAR.com), 31 p

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20 CERTIFICATES OF AUTHORS - DATED AND SIGNATURES

27

21 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES & PRODUCTION PROPERTIES

The Property is currently at an exploration stage. Consequently, there is no information applicable to this section of the Technical Report.

APPENDIX 1

Listing of Drill Holes Completed on the 3Ts Project

Hole No. Easting Northing Elev. (m) Length (m) Azimuth Dip95-01 363654.5 5877184.4 1180 75.20 270 -4695-02 363655.5 5877069.2 1177 76.50 270 -4595-03 363672.8 5876963.9 1186 51.90 270 -4495-04 363672.8 5876963.9 1186 114.30 270 -7095-05 363683.7 5876920.8 1198 58.10 270 -4595-06 363683.7 5876920.8 1198 127.10 270 -7095-07 363709.1 5876923.8 1198 93.00 270 -4595-08 363703.9 5876859.9 1207 94.00 270 -4495-09 363703.9 5876859.9 1207 121.10 270 -5895-10 363727.0 5876742.6 1207 88.10 270 -4595-11 363720.9 5876637.2 1213 46.50 270 -4595-12 363734.9 5876688.3 1207 76.40 270 -4595-13 363734.9 5876688.3 1207 110.30 270 -6095-14 363653.4 5877021.2 1183 55.80 270 -4595-15 363653.4 5877021.2 1183 105.80 270 -6795-16 363519.3 5876923.8 1222 108.20 270 -4595-17 363510.5 5876988.3 1213 142.30 270 -4595-18 363606.6 5876685.9 1234 37.90 270 -4595-19 363614.2 5876781.7 1219 70.30 90 -6095-20 363727.0 5876742.6 1207 118.50 270 -6095-21 363739.9 5877053.3 1155 226.20 270 -4595-22 363772.1 5877058.8 1154 99.70 110 -6095-23 363813.1 5877060.7 1149 334.80 270 -4595-24 363864.9 5876802.7 1180 445.20 270 -4095-25 363802.4 5876691.4 1198 180.10 270 -4595-26 363768.0 5877305.9 1158 197.40 270 -4595-27 363713.5 5876781.4 1204 233.80 270 -4595-28 363713.5 5876781.4 1204 194.20 270 -5595-29 363611.8 5876638.3 1234 164.00 90 -4595-30 363611.8 5876638.3 1234 266.40 90 -5595-31 363641.4 5876579.8 1222 128.80 90 -4595-32 363641.4 5876579.8 1222 75.60 90 -7095-33 363606.9 5876536.6 1222 144.60 90 -4595-34 363606.9 5876536.6 1222 106.10 90 -6595-35 363626.5 5876540.3 1218 44.30 270 -4596-36 363017.3 5876896.9 1210 215.50 85 -4596-37 363017.3 5876896.9 1210 99.60 85 -6596-38 363018.6 5876996.5 1193 81.80 87 -4796-39 363018.6 5876996.5 1193 97.75 87 -6296-40 363018.1 5876796.8 1208 67.30 88 -4796-41 362946.2 5876895.1 1197 197.20 85 -48

96-42 363157.6 5876862.8 1222 158.00 91 -4596-43 363761.8 5876839.5 1193 182.10 276 -4796-44 363802.7 5876742.6 1197 208.20 275 -4696-45 363848.2 5877010.4 1149 72.20 273 -4596-46 363992.3 5876923.9 1152 75.30 84 -4596-47 364028.9 5876908.9 1147 60.90 107 -4796-48 363853.7 5876962.8 1156 33.10 260 -4596-49 364008.2 5876916.9 1149 44.80 100 -4596-50 364201.7 5876830.7 1144 102.90 90 -4596-51 364221.7 5876807.7 1147 163.70 270 -4596-52 364099.0 5876832.5 1163 154.50 276 -4596-53 364044.2 5876608.9 1182 148.20 94 -4596-54 363766.3 5876577.7 1198 156.90 270 -4596-55 363878.0 5876917.2 1158 96.60 260 -4696-56 363406.0 5876390.4 1224 221.60 119 -4596-57 363683.8 5876485.6 1206 226.80 88 -4896-58 363701.5 5876413.6 1192 196.70 268 -4597-59 363229.7 5879635.3 1245 283.46 268 -4597-60 363578.8 5879440.7 1238 206.35 269 -4597-61 363586.0 5879447.2 1238 200.25 90 -4597-62 363680.6 5879305.7 1228 30.48 270 -4597-63 364154.6 5878453.0 1195 261.21 270 -5597-64 364536.6 5878660.6 1222 105.77 90 -4597-65 364787.1 5878667.1 1225 273.41 89 -4597-66 364611.6 5879462.1 1250 224.64 89 -4598-67 363281.8 5876974.8 1215 434.30 90 -5598-68 363375.3 5876987.2 1218 550.77 90 -5098-69 363485.6 5876998.7 1215 545.35 90 -5098-70 363663.4 5876978.9 1190 550.77 90 -5098-71 363663.4 5876978.9 1190 540.41 90 -6098-72 363675.9 5876919.5 1197 550.77 270 -5098-73 363656.1 5877020.7 1185 550.77 90 -5098-74 363713.8 5877209.9 1152 41.76 90 -4598-75 363743.2 5877105.1 1155 47.85 90 -4598-76 363837.0 5876972.2 1160 93.57 270 -4598-77 363875.3 5876917.0 1158 361.79 270 -5098-78 363877.9 5876917.2 1158 456.28 270 -6098-79 363826.3 5876859.3 1178 407.51 270 -6398-80 363865.9 5876793.4 1180 304.19 270 -6098-81 363865.9 5876793.4 1180 373.98 270 -55DDH252-1 364946.1 5877142.9 1082 139.30 270 -45DDH252-2 364953.7 5877142.4 1085 44.80 270 -55DDH252-3 364845.7 5876678.5 1104 169.80 235 -45DDH252-4 364845.8 5876678.4 1104 99.70 235 -60DDH252-5 364845.9 5876678.3 1104 224.70 235 -80DDH252-6 364888.0 5876634.5 1111 145.40 250 -45DDH252-7 364888.2 5876634.4 1111 108.80 250 -60

DDH252-8 364949.6 5876587.0 1114 169.80 235 -45DDH252-9 364888.3 5876634.2 1111 160.80 200 -45TK04-01 365593.0 5877005.0 1085 46.94 270 -45TK04-02 365539.0 5877007.0 1084 102.41 270 -55TK04-03 365539.0 5877007.0 1084 81.99 270 -69TK04-04 365560.0 5877050.0 1078 132.28 270 -55TK04-05 365557.0 5876978.0 1079 102.41 268 -54TK04-06 365558.0 5876978.0 1079 123.75 268 -65TK04-07 365457.0 5877010.0 1081 114.96 90 -59TK04-08 366175.0 5876959.0 1084 246.88 93 -55TK05-09 366031.0 5876961.0 1087 144.78 88 -49TK05-10 366221.0 5877424.0 1097 70.41 89 -48TK05-11 366074.0 5877239.0 1106 80.62 270 -48TK06-12 365605.0 5877004.0 1085 35.96 270 -50TK06-13 365660.0 5877002.0 1096 142.04 270 -56TS02-82 363690.4 5877663.3 1102 155.20 270 -50TS02-83 363743.4 5877505.8 1113 194.77 270 -50TS02-84 363635.9 5877105.5 1181 48.80 270 -50TS02-85 363668.1 5876864.9 1203 60.70 270 -43TS02-86 363899.4 5876835.5 1172 106.40 270 -45TS02-87 363744.3 5877469.6 1119 203.45 300 -50TS02-88 363740.2 5877661.7 1109 182.58 240 -50TS04-89 363816.4 5876689.4 1195 169.16 80 -45TS04-90 363937.6 5876768.1 1191 439.98 267 -56TS04-91 363688.5 5876920.1 1196 344.72 80 -58TS04-92 363160.2 5876801.3 1224 187.14 270 -58TS04-93 363148.3 5876957.1 1203 136.86 260 -42TS04-94 363145.5 5876865.7 1220 141.73 267 -45TS04-95 363191.4 5876964.3 1207 230.43 265 -48TS04-96 363176.0 5876867.8 1225 248.41 269 -53TS04-97 363895.4 5876681.9 1194 557.00 274 -62TS04-98 363886.0 5876641.0 1195 474.57 276 -60TS04-99 363923.0 5876653.0 1196 431.90 274 -54TS05-100 363827.0 5876655.0 1198 226.47 280 -49TS05-101 363886.0 5876675.0 1195 144.78 270 -40TS05-102 363875.0 5876675.0 1196 105.77 270 -43TS05-103 363795.0 5877014.0 1160 260.91 276 -43TS05-104 363795.0 5877014.0 1160 328.27 272 -53TS05-105 363751.0 5877021.0 1148 254.51 266 -61TS05-106 363662.0 5877167.0 1182 322.22 84 -64TS05-107 363663.0 5877071.0 1174 297.18 94 -65TS05-108 363819.0 5877059.0 1147 247.80 267 -56TT02-10 364927.6 5876592.8 1117 136.28 240 -45TT02-11 364913.4 5876528.8 1188 84.73 240 -45TT02-12 364935.7 5876537.9 1184 27.40 240 -55TT02-13 364943.0 5876489.1 1125 112.50 240 -45TT03-14 364894.1 5876639.2 1113 126.80 240 -55

TT03-15 364894.1 5876639.2 1113 150.90 240 -41TT03-16 364932.0 5876534.8 1119 190.20 240 -45TT03-17 364892.4 5876566.1 1123 62.80 240 -45TT03-18 364919.7 5876475.7 1128 78.05 240 -45TT03-19 364958.4 5876435.3 1127 108.54 240 -45TT03-20 364983.4 5876388.9 1127 145.10 240 -45TT03-21 364861.2 5876787.1 1099 145.10 240 -45TT03-22 365097.8 5876945.2 1070 85.07 270 -45TT03-23 365056.7 5876946.1 1070 78.05 270 -45TT03-24 365018.2 5876944.5 1071 87.20 270 -45TT03-25 364981.9 5876964.7 1073 93.30 270 -45TT03-26 365052.2 5877053.1 1075 108.50 270 -45TT03-27 365007.0 5877047.0 1075 109.30 270 -43TT03-28 364791.3 5876432.3 1149 220.37 60 -55TT03-29 364803.6 5876486.2 1151 208.18 60 -50TT03-30 364806.4 5876404.2 1147 157.04 60 -55TT03-31 364784.8 5876391.1 1153 239.57 60 -56TT03-32 364830.2 5876377.3 1146 156.36 60 -53TT03-33 364813.4 5876333.6 1155 230.12 60 -57TT03-34 364840.5 5876293.3 1146 277.06 60 -54TT03-35 364866.0 5876251.5 1140 221.89 60 -56TT03-36 364827.8 5876770.2 1101 129.84 240 -50TT04-37 365021.0 5876612.0 1107 419.71 240 -59TT06-38 365021.0 5876612.0 1105 328.27 261 -56TT06-39 364980.2 5876388.6 1131 207.26 55 -46TT06-40 365041.6 5876622.4 1105 355.70 245 -43TT06-41 365007.2 5876673.1 1124 428.85 255 -63TT06-42 365007.2 5876673.1 1124 290.47 255 -49TT06-43 365007.2 5876673.1 1124 341.38 255 -55TT06-44 365015.1 5876714.0 1086 314.86 255 -60TT06-45 364999.4 5876714.5 1087 344.42 255 -65TT11-46 365019.0 5876663.0 1075 274.00 273 -49TT11-47 365028.0 5876628.0 1075 370.00 240 -55TT11-48 364867.0 5876790.0 1075 300.00 240 -60TT11-49 365142.0 5877052.0 1075 105.00 90 -48TT11-50 365152.0 5877049.0 1075 342.00 270 -47TT11-51 365199.0 5877045.0 1075 90.00 90 -48TT11-52 365291.0 5877062.0 1075 60.00 90 -50TT11-53 365490.0 5877052.0 1075 0.00 270 -50TT11-54 365453.0 5877024.0 1075 0.00 270 -50TT11-55 365094.0 5877045.0 1075 115.00 270 -50

APPENDIX 2

Listing of Significant Drill Intersects from the Drill Holes Completed on the 3Ts Property:

Ted, Tommy and Mint Veins

Hole No. Remarks From To Length (m) Gold (g/t) Silver (g/t)Ted Vein

252-3 23.00 48.00 25.00 0.34 16.30252-3 Including 43.00 44.00 1.00 1.99 31.70252-4 61.00 69.00 8.00 1.16 16.80252-4 Including 61.00 62.00 1.00 7.15 72.50252-4 70.40 72.00 1.60 0.52 11.20252-4 79.00 80.00 1.00 0.81 4.20252-6 39.00 40.00 1.00 1.02 2.90252-6 48.40 59.00 10.60 0.38 58.80252-6 Including 53.00 54.00 1.00 1.01 154.80252-7 90.00 99.00 9.00 1.43 15.90252-9 110.00 133.00 22.00 8.88 393.60252-9 Including 128.00 129.00 1.00 128.08 114.60

TT02-10 96.00 115.20 19.20 1.69 315.00TT02-10 123.50 123.90 0.40 4.16 59.20TT02-10 127.00 127.50 0.50 13.46 152.10TT02-11 40.65 52.00 11.35 1.35 341.30TT02-11 62.36 62.88 0.52 3.71 39.80TT02-11 77.58 78.37 0.79 5.32 42.80TT02-13 85.80 98.00 12.20 2.81 55.10TT02-13 104.00 108.30 4.30 3.10 23.40TT03-15 78.00 78.80 0.80 0.92 20.90TT03-15 85.80 95.80 10.00 1.08 198.60TT03-15 Including 85.80 89.80 4.00 2.31 435.50TT03-15 109.00 109.80 0.80 1.30 272.00TT03-16 100.00 128.00 28.00 3.78 137.50TT03-16 Including 100.00 104.00 4.00 1.36 278.00TT03-16 and 112.00 127.20 15.20 6.20 142.90TT03-17 21.00 38.70 17.70 0.83 170.70TT03-17 23.00 26.00 3.00 1.47 252.00TT03-17 32.00 38.70 6.70 1.12 281.20TT03-18 49.30 53.00 3.70 1.21 122.00TT03-18 Including 50.80 52.00 1.20 2.64 314.00TT03-19 80.70 82.00 1.30 0.84 13.50TT03-28 153.40 164.90 11.50 3.22 86.10TT03-28 Including 154.40 159.40 5.00 6.51 173.30TT03-29 114.80 115.20 0.40 7.67 365.00TT03-29 117.30 134.40 17.10 3.83 364.70

TT03-29 148.30 150.10 1.80 5.53 317.40TT03-30 147.30 151.05 3.75 3.34 194.40TT03-30 154.40 154.80 0.40 2.18 264.00TT03-31 187.10 193.10 6.00 8.31 181.00TT03-32 137.50 141.88 4.38 1.13 50.20TT03-33 193.24 208.88 16.54 1.04 23.80TT03-35 187.66 188.66 1.00 3.71 7.70TT04-37 388.30 399.30 11.00 3.74 59.30TT06-38 289.00 319.60 30.60 2.68 152.10TT06-40 250.51 269.14 18.63 1.71 271.10TT06-40 Including 257.29 263.01 5.72 2.78 450.20TT06-40 275.65 277.04 1.39 5.64 15.10TT06-41 380.84 383.59 2.75 1.45 53.40TT06-41 399.12 401.96 2.84 1.13 102.80TT06-43 280.60 314.94 34.34 1.19 101.20TT06-44 257.60 271.60 14.00 0.81 61.90TT06-44 Including 257.60 260.60 3.00 1.64 131.70TT06-44 and 260.60 267.60 7.00 0.46 24.30TT06-44 267.60 271.60 4.00 0.79 75.30TT11-46 232.20 236.00 3.80 0.37 32.30TT11-46 Including 234.20 235.10 0.90 1.02 68.20TT11-46 238.50 249.04 10.56 0.89 111.50TT11-47 301.85 326.03 24.18 5.33 50.60TT11-47 Including 303.00 311.00 8.00 8.57 63.40

Tommy Vein95-02 59.50 60.10 0.60 1.00 9.8095-03 38.20 46.90 8.70 9.57 73.0095-04 89.30 106.60 17.30 4.24 41.3095-05 41.00 53.40 12.40 5.53 64.6095-06 85.60 87.10 1.50 5.39 45.6095-07 83.10 84.10 1.00 1.68 7.2095-08 78.50 96.80 18.30 1.83 15.3095-08 87.20 94.00 6.80 4.69 36.9095-09 111.70 122.30 10.60 2.85 67.9095-09 114.90 121.70 6.20 4.57 113.6095-10 79.60 89.10 9.50 6.90 46.3095-10 81.80 88.10 6.30 9.43 55.8095-11 39.60 42.05 2.45 1.27 17.4095-11 41.70 42.05 0.35 1.92 86.4095-12 67.60 78.90 11.30 2.51 28.1095-12 72.90 76.40 3.50 6.26 75.2095-13 100.70 110.90 10.20 1.08 19.0095-13 104.50 109.70 5.20 1.79 33.0095-13 Including 105.40 109.70 4.30 2.02 35.3095-14 51.20 55.80 4.60 6.03 124.3095-14 53.50 55.80 2.30 10.18 225.7095-19 56.00 70.30 14.30 8.38 69.50

95-19 63.00 68.70 5.70 16.70 151.2095-20 112.50 118.50 6.00 5.97 75.3095-25 175.10 180.10 5.00 1.63 37.9095-27 91.50 97.20 5.70 1.01 14.9095-28 122.20 128.00 5.80 9.99 105.9095-30 133.30 142.30 9.00 2.30 17.5095-32 63.10 67.80 4.70 1.82 2.2095-32 71.90 74.70 2.80 0.75 10.3096-43 174.80 182.20 7.40 8.62 85.5096-43 Including 174.80 176.10 1.30 18.03 180.9096-44 190.70 198.20 7.50 1.18 6.1096-44 Including 191.60 194.50 2.90 2.67 13.3096-54 144.10 145.40 1.30 0.04 0.9096-57 97.30 98.30 1.00 0.25 1.0096-58 135.50 137.00 1.50 0.67 0.8098-77 337.00 338.10 1.10 6.71 6.6098-78 438.40 439.90 1.50 2.40 3.8098-78 441.50 443.20 1.70 4.18 10.0098-79 395.30 402.70 7.40 3.10 22.9098-79 Including 398.60 402.40 3.77 4.06 24.8098-81 339.80 365.20 25.40 2.46 20.8098-81 362.70 365.20 2.50 8.86 30.20

TS02-83 143.22 147.77 4.55 0.68 7.20TS02-84 32.30 35.30 3.00 0.62 7.30TS02-85 22.30 30.20 7.90 4.53 28.50TS04-90 394.60 407.05 12.45 8.83 62.60TS04-97 512.50 513.50 1.00 1.86 2.00TS04-98 436.00 436.63 0.63 2.57 25.20TS04-99 417.66 418.17 0.51 1.04 3.40TS04-99 426.70 428.76 2.06 4.50 34.50TS05-104 314.35 314.68 0.33 0.40 4.90TS05-105 208.20 209.00 0.80 2.98 25.20TS05-108 220.56 229.42 8.86 10.89 60.20

Mint Vein252-1 21.00 22.00 1.00 0.10 25.40252-2 18.10 19.00 0.90 0.31 4.30252-2 21.60 34.60 13.00 0.95 28.20252-2 Including 21.60 22.60 1.00 2.31 45.70252-2 and 26.60 27.60 1.00 2.33 10.20

TT03-22 63.00 64.00 1.00 1.25 0.10TT03-22 67.00 67.30 0.30 0.76 0.80TT03-23 18.10 19.30 1.20 5.18 26.20TT03-24 45.50 46.20 0.70 1.27 64.80TT03-25 28.00 30.00 2.00 5.45 127.30TT03-25 34.50 35.00 0.50 0.47 10.60TT03-25 55.20 56.70 1.50 3.98 42.60TT03-26 18.40 19.00 0.60 1.31 10.30

TT03-27 56.10 65.70 9.60 4.15 45.80TT03-27 Including 60.00 61.00 1.00 10.70 68.90TT11-50 268.50 276.00 7.50 7.69 84.20TT11-50 Including 269.50 270.60 1.10 16.30 223.00TT11-50 291.30 291.54 0.24 0.27 23.60TT11-50 266.50 267.50 1.00 0.18 7.00