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GEOLOGIST’S REPORT ON THE PAYSTREAK MINE

Prepared for:

Marra/Majestic-Peters & Parker Partnership

29100 Hall Street, Solon, Ohio 44139 (440) 498-1000

By

Gene C. Rosenlund Mining Geologist

September 20, 2006

Integrated Geologic Services, LLC,

1700 E Lakeside Dr. #29, Gilbert, AZ 85234

Marra Majestic Peters & Parker Partnership, 29100 Hall Street, Solon, Ohio 44139 PAYSTREAK PROJECT

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TABLE OF CONTENTS

Property Description 3 Past Production 4 Current Development 4 Mine Geology 5 1. Host Rocks 5

2. Structural Control on Mineralization 5 3. Mineralization 5

Mineral Resource Reserves 7 Ore Processing and Recovery 9 Exploration Targets 10

1. Extension of Paystreak Vein 10 2. Stockwork in Rhyolite – Large Tonnage Low Grade 10

3. Victor Mine Area 12

References and Historical Documents 13

PROPERTY DESCRIPTION The Paystreak gold-silver property and associated mineral holdings are situated in the historic Walker Mining District of Yavapai County in central Arizona The small unincorporated community of Walker is approximately 12 miles by paved road south of Prescott, Arizona. The mine site is reached by traveling additional 2 miles west on gravel and dirt roads. Prescott is 95 miles north of Phoenix via Interstate 17 and State Route 69. By legal description, the claims occupy portions of: Section 31 and 32 of T13N, R1W and Sections 19 and 20 of T12.5N, R1W Gila and Salt River base and meridian. The property consists of 19 contiguous, unpatented lode mining clams: Paystreak 1 Paystreak 9 Paystreak 15 Paystreak 2 Paystreak 10 Paystreak 16 Paystreak 4 Paystreak 11 Paystreak 17 Paystreak 5 Paystreak 12 Paystreak 18 Paystreak 6 Paystreak 13 Paystreak 19 Paystreak 7 Paystreak 14 Paystreak 20 Paystreak 8

Several of the mines on the property have been producers in the past the most notable being the Victor, Blue John, Curtis, King Pin and Paystreak. The Victor and Blue John veins were accessed by shafts where as the Curtis, King Pin and Paystreak veins are accessed by westerly crosscuts. The property is owned by: Marra Majestic Peters & Parker Partnership 29100 Hall Street Solon, OH 44139 (440) 498-1000 Left Click on the Adobe Icon below to view the property map.

PropertyMap11x8.5.pdf


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PAST PRODUCTION Mining activity began in 1883 in the northern Bradshaw Mountains with the discovery of gold placers along Lynx Creek and in the Hassayampa River. Lynx Creek was one of the richest streams in the region for placer gold due to the number of gold-bearing veins near the granodiorite stocks, (V. Lindgren, 1926). The creek was mined for many miles downstream from Walker. Most of the richer gravels were depleted by 1900. No records are available to quantify this early production. In the upper reaches of the Lynx Creek drainage on the southern margin of the Paystreak property, is Nugget Canyon, so named for the occurrence of the larger gold nuggets discovered there. The largest producer in the district was the Sheldon mine followed by the Victor which is thought to be on the northerly extension of the Sheldon vein. Underground production from the Walker District between 1905 and 1924 was reported by Lindgren to be 35,695 tons that yielded 14,016 ounces of gold and 147,646 ounces of silver. District wide this would indicate an average grade of 0.393 opt Au and 4.14 opt Ag. Production records for the individual mines are not available.

CURRENT DEVELOPMENT Development efforts during the last 10 years have been focused on gaining access to the Paystreak vein through the construction of the Paystreak crosscut. The most recent drifting and raising efforts have revealed ore grade mineralization along the Paystreak vein on the 6780 level, which continues upward for 138 feet in Raise 1 North. The Paystreak vein is also exposed in various prospects on the ridge above the 6780 level. Left Click on the Adobe Icons below to view the geology and development on the 6780 level of the Paystreak mine.

Plate2Paystreak6780LevelMap24x18.pdf

SurfaceTopoMineDev38x48.pdf


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MINE GEOLOGY Host Rocks The host rocks for the Paystreak vein are Precambrian in age, 1.7 to 1.8 billion years old and consist of submarine volcanic flows and volcaniclastic sedimentary rocks which have undergone low-grade greenschist metamorphism. In the immediate vicinity of the Paystreak mine more recent igneous activity intruded zones of structural weakness to form quartz monzonite and rhyolite dikes. Structural Control on Mineralization Horizontal compression has produced isoclinal folding in the Precambrian layered metasediments and flow units. Most of the veins and faults in the Paystreak mine area are aligned with the bedding. Late post mineral faulting occurs perpendicular to the bedding plains. Minor displacement of the Paystreak vein can be seen underground along the drift on the Paystreak vein. See Plate 2. The bedding plain faults also show post mineral movement and displace the Paystreak vein. Mineralization The Paystreak vein strikes north 20 to 30 degrees east, dipping 84 to 72 degrees northwest. Quartz is abundant as gangue as is silicification of the wall rock adjacent to the vein. An ore microscopy study of sulfides vein material from the Curtis Mine area performed by Russell M. Honea, in October of 1997 indicates that ore minerals include: electrum, arsenopyrite, pyrite, galena, sphalerite, chalcopyrite, acanthite, pyrrhotite, bornite, and covellite. The Curtis mine is on the northern extension of the Paystreak vein. A weighted average of 110 channel samples cut from the Paystreak vein at the surface and underground shows the tenor of the ore to be 0.3628 opt Au and 1.7677 opt Ag. The average vein width from this set of samples is 1.53 feet. Grades as high as 2.83 opt Au are included in the channel samples used for ore reserve calculations. As seen in the sample data listed on Plate 4, locally gold values change rapidly horizontally and vertically along the vein. Left Click on the Adobe Icon below to view the assay results from Raise 1 North on the Paystreak vein.

Raise1Results.pdf

Ore grade mineralization is consistent over significant distances (>200 feet) when detailed sampling is done to overcome the “nugget effect”. Weighted averages from samples taken at intervals of 5 feet along the Paystreak vein run between 0.7527 and 0.8652 opt Au for vein widths of 1.5 feet. Thirty five (35) grab samples taken from dumps along the Paystreak vein averaged 0.5147 opt Au and 1.7143 opt Ag.


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Photograph of Paystreak vein in stope above 6780 level at intersection between Paystreak crosscut and south drift along Paystreak vein. Dark gray at the left is Precambrian country rock, light gray is siliceous vein material and the white areas are sulfides.

Marra Majestic Peters & Parker Partnership, 29100 Hall Street, Solon, Ohio 44139

PAYSTREAK PROJECT

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MINERAL RESOURCE RESERVES Tons (S) Gold (opt) Silver (opt) Vein Width Measured 2,198 0.61 2.03 1.56 ft Indicated 2,981 0.54 1.97 1.53 ft Inferred 52,217 0.68 2.14 1.64 ft Left Click on the Adobe Icon below to review the details of the areas used for calculation of reserves.

Plate5B-BMineralResEst17x11.pdf

The resource estimate for the Paystreak Mine is made using current development data and sampling results from available surface and underground exposures. The following reserve criteria are applied:

Measured reserves extend 50 feet from sampled locations, exposures and current development workings. Indicated reserves extend 50 to 100 feet from measured reserves as geologic structure will allow. Inferred reserves extend the recognized reserve zones from the 6780 level to the surface. The vein has demonstrated continuity on the surface and sampling has indicated that the grade and structure does continue from the 6780 level to the surface. Inferred reserves are also present below the 6780 level. Other mines in the walker district have reported production from depths in excess of 600 feet.

No adjustment for dilution is made/applied to accommodate mining width as this will change depending on the economics of the method selected. Those methods are discussed in a Mining Engineer’s Report on the Paystreak Mine that can be provided on request. Once the mining method has been selected the tonnage and grade can easily be adjusted. The vein was assumed to be vertical (projected into the vertical longitudinal section) for resource calculations. This has resulted in a conservative tonnage estimate which may be as much as 7 percent low. No attempt was made to correct for this due to the variability in the strike and dip of the vein. Reserves have not been extended beyond the fault located 30 feet northeast of Raise 1 North. This fault has displaced the vein. After crossing the fault the vein narrows and splits into 2 or three veins, therefore, no reserves are assigned to the area between the two faults just south of reserve area K.


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Left Click on the Adobe Icon below to view PLATE 3 Cross Section A-A’ to review the attitude of the vein as well as Raise 1 North and sample locations.

Plate3CrossSectionA-A8.5x11.pdf

The calculations for mineral reserves and assays of samples taken from the property are available upon request.

Photograph of Raise 1 North showing ore in right rib


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ORE PROCESSING AND RECOVERY Ore grade material from the drift on the Paystreak vein was provided to Mountain States R&D international, Inc., for Metallurgical testing. More than 97% of the gold was recovered using a fine grind and flotation. The metallurgical report is included for your review. Left Click on the Adobe Icon below to view the metallurgical report.

MetallurgicalReport.pdf

Marra Majestic Peters & Parker Partnership, 29100 Hall Street, Solon, Ohio 44139

PAYSTREAK PROJECT

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EXPLORATION TARGETS Extension of Paystreak Vein The Paystreak vein is a strong well mineralized vein that is present at the surface for over 1000 feet. The vein is open to the south and north. Geologic mapping and sampling may reveal that the vein extends farther in these directions than is now known. Stockwork in Rhyolite – Large Tonnage Low Grade A large body of rhyolite on the ridge 250 feet south of the Paystreak vein shows abundant fracturing that has been silicified. Pyrite and galena were identified as well as abundant hematite and limonite staining. Additional geologic mapping and sampling in this area may reveal significant low grade tonnage.

Photograph of rhyolite hosting stockwork quartz veining with abundant pyrite, galena, hematite and limonitic staining. This zone is approximately 80 feet wide and runs across the ridge.


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Photograph showing a vein adjacent to stockwork rhyolite. Samples taken from this site returned the following results:

Sample Number

Length Sample Type

Descriptions - Remarks Au Opt Ag Opt

4621 2.50 CHNL North end of south prospect west of rhyolite plug 0.1500 0.410 4622 ???? GRAB "Ore" on dump; box work quartz, FeOx Stained

pyrite 0.2390 0.400

4623 3.00 CHNL North end of upper prospect 0.1270 0.170 4624 ???? GRAB "Ore" on dump of North end of upper prospect 0.2730 0.780


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Victor Mine Area Significant potential exists at the Victor mine for additional tonnage at grades similar to those cited in this report for the Paystreak vein. The vein has been developed by a shaft to depths in excess of 500 feet with lateral workings along the vein. The shaft is currently inaccessible. Two samples of unselected dump material adjacent to the shaft taken by David R. Morgan, P.Eng. returned assays of 0.769 & 0.720 opt gold. The Victor vein has a potential strike length of 3,000 feet on property held by Marra Majestic Peters & Parker Partnership.


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REFERENCES AND HISTORICAL DOCUMENTS Available on Request

PS HIST DOC 1 -- A geological report on the Victor Claims Property of Avance International Inc. situated in the Walker area 6.5 miles south of and 4 miles east of Prescott, Yavapai County, Arizona, U.S.A. Morgan, David R, P. Eng. – May 5, 1988 PS HIST DOC 2 -- Genetic Importance of Walker Mining District Gold Placer Deposits to the “Mineral Belt” Mineralization on David Peters Mining Properties, Yavapai County – Arizona Franklin W. Mack, Consulting Mine Geologist - April 1992 PS HIST DOC 3 -- Walker Mining District Regional Geology and Associated Mineral Occurrences, Yavapai County-Arizona, Franklin W. Mack, Consulting Mine Geologist - April 1992 PS HIST DOC 4 -- Supplementary Geologic Report and Ground Magnetic Survey for and area including the Curtis Crosscut – Paystreak – King Pin Mines, Walker Mining District, Yavapai County, Arizona, Franklin W. Mack, Consulting Mine Geologist - March 1992 PS HIST DOC 5 -- Ore microscopy -- Results of polished section examination of 2 sulfide samples from the Curtis Mine area. Russell M. Honea, Consulting Geologist, October 3, 1997 PS HIST DOC 6 -- Assays and Results of milling tests performed on ore from the Paystreak mine by Colorado Minerals Research Institute, Metallurgical & Mineral Processing Consultants. Walter G. Statler, Mineral Assayer, April 14, 1997 PS HIST DOC 7 -- Department of Mineral Resources, State of Arizona, Field Engineers Report, Curtis Property, Walker Mining District, Yavapai County, Arizona. Carl C. Barth Jr., March 9, 1940 PS HIST DOC 8 -- Assay results and Victor Mine Dump map. James F. Park, Mining Geologist, October 1993 PS HIST DOC 9 -- A second progress report of Geological Investigations relative to the Curtis Cross-Cut/Pay Streak Development and Victor Dump evaluation. James F. Park, Mining Geologist, November 2, 1993 PS HIST DOC 10 -- Paystreak Mine, Work Plan Outline, James F. Park, Mining Geologist, November 18, 1993


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PS HIST DOC 11 -- Summary Report of Geological Investigations and Recommendations for the King Pin and Pay Streak Vein Areas, Walker Mining District, Arizona. James F. Park, Mining Geologist, November 30, 1993 PS HIST DOC 12 -- Progress Report on the King Pin – Paystreak Project, USFS Plan of Operations and Mining Claim Location. James F. Park, Mining Geologist, March 16, 1994 PS HIST DOC 13 -- Paystreak Project Activity Summary, August 1994. James F. Park, Mining Geologist, September 9, 1994 PS HIST DOC 14 – Paystreak Project, Status Report, January 1995. James F. Park, Mining Geologist, January 25, 1995 PS HIST DOC 15 -- Results of Metallurgical Test work Performed on a second Gold Ore sample Received by MSRDI (Mountain States R&D International, Inc. John A. Plaisted, Metallurgical Consultant, December 20, 2005 PS HIST DOC 16 -- Geologic Ore Reserve Potential, Paystreak Mine, Walker Mining District, Yavapai County, Arizona. James F. Park, Mining Geologist, December 23, 2005 PS HIST DOC 17 – Map of Paystreak vein in Raise 1 North showing sample locations. James F. Park, Mining Geologist, January 18, 2006 PS HIST DOC 18 – Paystreak Mine, Walker Mining District, Arizona. James F. Park, Mining Geologist, January 18, 2006 PS HIST DOC 19 -- Preliminary Map of the Curtis Crosscut Area, Walker Mining District, Yavapai County, Arizona, Scale 1:480, James F. Park, Mining Geologist, November 29, 1993 PS HIST DOC 20 -- Preliminary Map of the King Pin – Paystreak Mine Area showing outcrop geology, Mine workings, access roads, claim boundaries and sample locations, Walker Mining District, Yavapai County, Arizona Scale 1:480 January 5, 1995 with revision September 9, 1999 James F. Park, Mining Geologist PS HIST DOC 21 -- King Pin Cross-Cut Geologic Plan and Section (looking North) Scale 1:240 Revised September 9, 1999. James F. Park, Mining Geologist PS HIST DOC 22 – Extension of King Pin Cross-Cut Geologic Plan and Section (looking North) Scale 1:240 Revised September 9, 1999. James F. Park, Mining Geologist


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PS HIST DOC 23 -- King Pin Cross-Cut, Paystreak mine, Map of Geology and Sample Locations along the Paystreak Vein. Scale 1:240 July 17, 2005 James F. Park, Mining Geologist, PS HIST DOC 24 -- Paystreak Mine and Workings, Vertical Longitudinal Section, North 30 degrees east (looking west) Preliminary Ore Reserve Estimate, Scale 1:1200 December 16, 2005 James F. Park, Mining Geologist PS HIST DOC 25 -- Assay Results for the Paystreak Property Charley Majestic & James F. Park, Mining Geologist,