ASSESSMENT WORK REPORT

REPORT ON PROGRAM OF STRIPPING, TRENCHING,

SAMPLING AND GEOLOGICAL MAPPING

ON THE

HISTORIC MCINTYRE MCDONALD PROPERTY

OF

ROY ANNETT, PROSPECTOR,

IN

MACMURCHY TOWNSHIP, LARDER LAKE, M.D.

RECEIVED

March 2003 Toronto, ON

J.L. Tindale Geologist

UTM 487000E 5272000N

41P11SE2051 2.25403 MACMURCHY 010

SHEARD * DTU ERIN TWP. TWP-

LOCATION MAPSHINING TREE AREA CLAIMSDISTRICT OF SUDBURY, ONTARIO

INTRODUCTION

Roy Annett, a prospector from Shining Tree, Ontario, acquired by staking during June and July of 2002 a portion of the historic McIntyre-McDonald property in south-western Macmurchy Township, which came open for staking in early June due to non-payment of taxes. Shortly thereafter a program of linecutting, stripping and washing, trenching and sampling was commenced on the claims. The bulk of this work was concentrated in the area where previous operators in the period prior to 1920 had carried out extensive trenching and had sunk two shallow shafts on new Claim 1046148. This report describes the work carried out by Annett and his partners during the summer of 2002.

PROPERTY DESCRIPTION, LOCATION AND ACCFSS

The Annett property consists of two contiguous mining claims registered in the name of Roy Annett, Client No. 102630, details of which are tabled below.

Claim No.10461481046149

Units11

Record DateJune 4. 2002Julvl 0.2002

The claims straddle and are bisected by the waters of the western branch of the Montreal River. The land portion of the claims occupy mainly higher ground rising to a maximum of thirty metres above the river bottom land. The hills are forested with second growth softwoods such as poplar, birch, jackpine and spruce.

Access is gained by the old Violet Lake Road, which leaves Highway 560 about five kilometres east of Shining Tree village. The Violet Lake Road is followed easterly for approximately two kilometres to a short branch road constructed by Annett et al which leads onto Claim 1046148 where stripping took place in 2002. Figure No. 2, a claim map of southwestern Macmurchy Township shows the location of the Violet Lake Road and other topography features.

Historical Comments

The Annett Claims are part of the old McIntyre-McDonald claim group in the historic Wasapika section of the West Shining Tree gold area. A number of gold-bearing quartz veins were trenched and pitted on Claim TRS 2565 (now Annett's 1046148) in 1911. A 55 ft. shaft was sunk in the fall of 1912 at the site of Annett's north shaft stripping.

Gold was first discovered in the Shining Tree area in 1911 followed by a flurry of staking and prospecting which resulted in over a hundred recorded occurrences of native gold being found in quartz veins. Many of the occurrences were of a high-grade nature with some spectacular pockets being mined from shallow surface workings. These gold occurrences, however, never resulted in a mine but certainly created some fanciful and ill-advised developments where promoters would utilize the romance of some spectacular gold find to finance the building of a small mill and sink a shaft without the benefit of defining any ore

oy +t+rfr-r C*.*****

/ooo **.Fi&unis A/o. iCQ*

S.\A/-

-2-

reserves. Once the money ran out the project died. This has been the history of the Shining Tree camp. Granted the gold values may be erratic and the "nugget-effect" exaggerated, but never in the almost 100 years since gold was first discovered has a meaningful and well funded campaign been carried out to try and develop a meaningful reserve of gold mineralization been mounted.

Some noteworthy past and present properties in the Wasapika area are briefly discussed in the following and are illustrated in Figure No. 3.

(a) Rilmac Gold Mines Limited - located west of the Annett property, it was formed in 1934 by amalgamation of White Rock Mines, Harvey Kirkland Holdings, Atlas and MacVittie Estate to form a block of 6-patented mining claims covering about 300 acres. Development from 1934 to 1937 included sinking the existing shafts from 125 feet to a depth of 425 feet and carrying out lateral work on the Saville vein at the 65, 170 and 410 ft. levels. A small mill (^ 50 tpd) was also erected. Assay results from sampling carried out by Sylvanite Mines in 1940 show a 50' section on the 410 level, which assayed 0.22 ounces/t, gold. Two twenty-ton bulk samples taken from the 65 ft. level returned 0.72 ounces/t Au and 0.59 ounces/t Au respectively. Each sample was derived from the taking down of backs along twenty foot sections of the drift. Channel sampling of the drift back prior to extraction averaged less than 0.1 ounces per ton Au., a prime example of "nugget effect". The bulk of this work has been on the Saville vein a strong northwesterly striking quartz vein structure, which has been traced for over a mile. The extension of this vein projects onto the Annett property.

Also on the Bilmac property the Atlas tunnel was driven into the side hill below a spectacular showing of gold in a quartz vein. Twelve tons of high-grade are reported to have been bagged from this occurrence.

(b) West-Tree Mine - adjoining the Bilmac on the north this property was also known as the Lake Gas well, Canadian Champion Reef and more recently was under the control of New Bedford Explorations and TUT Enterprises. Most of the development took place during the period 1924-1930 which included the sinking of a 520 foot shaft on the extension of the Saville Vein, numerous trenching campaigns on an up to thirty different veins with visible gold, and some diamond drilling. Only sixty feet of lateral work is recorded in the main shaft. During 1936-1937 development work on the 240-foot level reportedly opened up over 300 feet of strongly mineralized vein with "much visible gold" on what is assumed to be the Saville vein. The property came open for staking due to non-payment of taxes in June of 2000 and is now held by private interests.

(c) The Bennett claims - located south and east of Annett's property, gold was discovered in 1912 in a lenticular quartz vein confined to a strong northwest striking shear zone traced for about 400 feet. A one hundred foot shaft was sunk on the structure in 1935 and limited development work was carried out from the shaft bottom. Some spectacular gold has been reported. The property is presently in private hands.

Historical Property Names

1. West-Tree Mine2. BilmacGML3. Mclntyre-McDonald4. C. Featherstone5. R. Sissons6. Bennett

Wasapika

ANNETT CLAIMS

92' /J \

Evelyn or Sulphide

Saville vein425'

Bilmac GML250,000 T @ 0.34 oz/T Au

QueenElizabeth li, 40 Shaft

, Shaft

' Veins w/ Au

OMILES 'Fo/sey

L.MacMurchy Twp.

Fawcett Twp.

F,^*-J

ROY ANNETT PROSPECTMacMurchy Township

Property Location Map

-3-

HFOI OCirAT SFTTTNf;

Bedrock in southwestern Macmurchy Township is predominantly steeply dipping Archean age dark green basalts, often pillowed or amygdaloidal, which trend in a northwest- southeast direction. These basalts are interlayered with light greenish intermediate andesites and tuffs. Less common but also part of the layered sequence are felsic flows, which are grey to pink in colour and often porphyritic in texture.

Occasional remnant outliers of Huronian sediments unconformably cap the Archean lithology. Nipissing diabase sills have been noted south of the Wasapika area. North trending diabase dykes are common throughout the Shining Tree area.

Major faulting in the area are late stage events, which appear to offset the stratigraphy up to six kilometres. One of these faults, the Michiwakenda Lake Fault, is located about one kilometer west of the Wasapika area. This structure occupies a marked lineament traceable from Lake Wanapitae in the south to Timmins in the north. Many of the north trending quartz veins in the area appear to parallel this structure though its economic significance is unknown.

Shear zones are a common occurrence in the Wasapika area either paralleling the regional northwest-southeast trend of the country rocks or as tensional fracture zones perpendicular to the trend. The shears are often rusty, crenulated, sericitized, and carbonate-rich and host major quartz veins or quartz lenses and boudins. Pyrite is the most common sulphide in these shears though galena, sphalerite, and chalcopyrite have been noted. Gold is preferentially present in the quartz veining along with tourmaline and rarely galena and sphalerite.

T A RT .F OF FORMATIONS

PROTEROZOIC

Nipissing type mafic Intrusives - diabase, sills, dikes____ intrusive contact ^^

Huronian Supergroup - greywacke, quartzite, conglomerate

______ unconformity ^^ ^^

Diabase dikes - matachewan type

intrusive contact

ARCHEAN

Felsic metavolcanics - rhyolite, porphyritic flows, tuffsIntermediate metavolcanics - andesite, dacite, tuffsMafic metavolcanics - basalt massive, pillowed, amygdaloidal

M JW *WA y^wv l^^i'-X*,,T'hlvSr* *W ! v ?mi-' 7^*l-l\A'Vkiy l^™.^4^ svW#dwP\ zAAB^U^XV^ ^^i? it L^'-'^r /^^rr^'V'" ^P^T^ V^v©v-'V'fa&fcT rT7 ^0/Eji'jirA ,,^ .,(^V,,^u^.,,,JA,X IB

! *-- via (i i^-i.?/ i A ^^*(^o^fi^^T 20 •ft" ,^-\,;i , offiaSl * 0 ' /!V^3St^6iIp\

l I^/'^'P^t^ jj i. ^^t' *^'^nff^2i^*iM

W^rfto'.-W^'HA' \J

-4-

FXPrORATTON 2(102

During June, July and August 2002, Roy Annett and his partners in the venture carried out a program of mechanical stripping, outcrop washing, drilling and blasting trenches, linecutting, geological mapping and sampling on a portion of Claim 1046148. This area, in the southwest section of the claim, contains the historical workings of the McIntyre-McDonald holdings, which date back to 1912. Old shafts, pits and trenches with reported gold occurrences were overgrown as were the access routes. It was therefore decided to embark on the stripping program to uncover the reported gold bearing veins to determine the mode of occurrence of the mineralization, the size and distribution of the veins and the types of alteration accompanying them.

Three areas were stripped and washed over the course of this work and subsequently mapped and sampled. Results are plotted on Map No. l attached to this report. Sample descriptions and assay results are also appended.

A John Deere 31 OD backhoe owned by Robin Lowe, one of the partners, was utilized for the stripping program. A Honda high-pressure pump and an Atlas Copco plugger, also owned by Mr. Lowe, were used to wash the outcrops and drill the hole for the trenches. Messrs. Annett, Salo and Lowe carried out the stripping washing and drilling and blasting portion of the program. Jack Tindale, the writer guided some of the work, mapped the southwestern portion of Claim 1046148 and mapped and sampled the stripped areas. The exploration program is described in the following.

(a) South Shaft Area

An area approximately 60 metres long by 8 to 10 metres wide was stripped and washed along the strike of the old trenching in a northwesterly direction commencing at the original old McIntyre-McDonald shaft. The shaft is reported to be 50 feet deep and was sunk in 1911. The shaft is capped with a concrete slab. The stripping program exposed a strong undulating grey to transparent to white quartz vein varying in width from 25 cm to 50 cm striking in a northeasterly direction and dipping vertically. Black needle-like intergrowths of tourmaline are noted in the vein along with talc lined partings and inclusions of carbonate. Pyrite as cubes and fine dustings is present in the vein and the wallrock. Branching off of the main leader vein are irregular and discontinuous veins and veinlets.

The veining is hosted by a rusty, silicified, dark green, carbonate-rich shear zone varying in width from 3 metres to up to 6 metres. The shear zone has been injected with boudins and lenses of quartz, 1-2 cm wide, along the shear planes. Pyrite is common throughout the zone. Away from the main shear the intensity of alteration lessens, foliation is minor and irregular discontinuous quartz veins and lenses are apparent. Host rock is a dark green basalt. Sub-parallel to the main zone shear is a 10-20 cm wide, very fine grained, diabase dike.

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Two trenches were blasted across the main vein and its accompanying shear zone. The more southerly trench is about two metres long, .5m deep by .5 metres wide. The trench exposes rusty sheared, party crenulated, wallrock injected with narrow lenses and stringers of quartz on either side of the main vein, which is about 40 cm wide at this location. Assay values ranged from 0.3 gm/t Au to 6.17 gm/t Au in the wallrock and the vein ran 3.84 gm/t as depicted on the accompanying stripping map.

The northerly trench was a little over 6m long, .5m deep and .5m wide. Most of the trench exposed the rusty shear zone with the main quartz vein being about 30 cm wide at this location. Minor chalcopyrite was noted in the wallrock. Assay values of the vein ran 5.73 gm/t Au across a one-metre chip and 4.39 gm/t Au from a grab of the vein material. Values in the sheared wallrock ranged from 0.53 gm/t Au in chip sample adjacent to the vein to 0.16 gm/t Au away from the vein.

A sample of the vein at the north extremity of the stripping assays 11.25 gm/t Au in chip sample across l metre. The vein continues strong to the north and its trace is indicated by a deep line of trenches for a further 100 metres as noted on our geological mapping.

It is noteworthy that a thorough examination of our samples did not reveal any visible gold in the quartz veins. Either the gold is exceedingly fine-grained or it is tied-up in the pyrite. Assay sheets and detailed sample descriptions are appended to this report.

(b) North Shaft Area

Stripping centered around a 55' shaft sunk in 1912 on a reported gold-rich quartz vein. An area approximately 30 metres long in a north-south direction and 10 metres wide was stripped and the outcropping so exposed was washed by the high-pressure pump. The old muck pile obscured the northerly extension of the main vein.

The shaft was sunk on an irregular grey to translucent white 10 to 20 cm wide quartz vein, which strikes roughly north-northwest, and dips steeply to the west. Pyrite is an obvious accessory mineral in the quartz as cubes and fine-grained dissemination. Minor carbonate inclusions are noted. Talc lined the fractures in the vein and chlorite is common along the vein border. Visible gold as smears and blebs in the quartz is common. Occasional blebs of galena were noted in the vein. A branch off of the main vein just south of the shaft carries much visible gold and swells to 30 cm in places.

The wallrocks adjacent to the main vein are rusty and sheared and carry disseminated pyrite. The shearing is not as well developed as at the south shaft and tends to peter out a meter or so away from the veining. Minor carbonate alteration is present in the wallrock. At the north end of stripping well-developed pillows are noted in the dark green mafic volcanic outcroppings.

-6-

White quartz fragments are strewn throughout the shaft dump and visible gold can easily be found in this material. It is possible the old timers encountered a blowout of quartz while sinking the shaft, which would account for the unusual amount of quartz present.

A three metre long trench was blasted across the quartz vein about three metres south of the shaft. The trench is about .5 metres deep and .5 metres wide. A chip sample of the wallrock over 2m assayed 1.32 gm/t Au and a 1m chip across the vein assayed 6.10 gm/t Au. A 1m chip across the branch vein 2m west of the shaft assayed 96.0 gm/t Au. A selective grab of the quartz vein fragments in the dump assayed 35.93 gm/t gold.

The gold-enriched veining at the North Shaft appears to have limited strike extent. Surface mapping in the area of the stripping failed to pick up any old trenching along the strike of the veins. Further prospecting and stripping to the north may turn up new leads as shearing is evident in an outcrop of mafic volcanics near the northend of the stripping. A plan of the stripping is shown on Map No. l enclosed with this report.

(c) No. 3 Vein Stripping

This stripping is located 40 metres south and west of the North Shaft and exposes a narrow ( 15 cm) grey quartz vein which strikes north of east and dips steeply to the south. The stripping measures 20 metres long (east-west) and 5m wide. A two metre long trench. .5 metres wide and deep, was blasted across the vein exposure.

The quartz vein is hosted by a rusty, carbonate-rich, sheared mafic volcanic with disseminated pyrite common throughout. The vein itself is a grey to translucent quartz vein, which pinches and swells across the outcrop. Minor narrow stringers stringers of quartz branch off of the main vein. Pyrite, chalcopyrite and galena as blebs and fine disseminations are noted in the vein. A grab sample of the vein from the trench assayed 6.10 gm.t Au, 1.5 gm/t Ag, 728 ppm Pb and 961 ppm Zn. No visible gold was noted. A plan of the stripping is shown on Map No. l enclosed with this report

(d) Geological Mapping

The writer mapped the area encompassed by the southwestern portion of Claim 1046148 on August 23, 2002 assisted by Roy Annett. A cut and chained 368 metre long baseline at an Az of 3600 was established by Annett and Larry Salo on August 15, 2002 and this control was used to turn off flagged lines at 50 metre intervals during the mapping.

The geological map at a scale of 1:1000 forms part of Map No. l enclosed with this report. Topographic features such as the access road, the stripping areas, claim lines and posts are presented along with the estimated location of important veins and workings on the adjoining Bilmac Property to the north and west.

The mapped area is underlain by mainly dark green, massive mafic volcanics (basalts).

-7-

Pillow structures in this rock type were noted at the North Shaft stripping and on the large outcrop at the north end of the basalts. Some reasonably fresh coarse grain, reddish flecked, gabbro was noted in the easterly portion of lines 50 and 100 north.

The large outcrop along the western claim boundary south of the mouth of West Shining Tree Creek is streaked with a porphyritic reddish coarse-grained felsic volcanic (diorite?). This appears to be part of the same sequence as mapped on the Bilmac zone close to their Main Shaft adjacent to the Saville vein.

Narrow fine-grained north to northwesterly striking diabase dikes were noted along the west boundary and crossing the access road.

Remnants of old trenching are scattered over the mapped area. The most obvious of these is the long, deep excavation, which apparently traces the northeasterly extension of the South Shaft vein.

Quartz veins are fairly common in the mafic volcanics and a number of these were sampled during the course of the mapping. Assay results are appended to the report along with the vein descriptions.

Work by Annett and his partners during the summer of 2002 has confirmed the presence of gold bearing quartz veins at at least three locations on Claim 1046148. At the South Shaft workings a very strong vein systems carries appreciable gold along the entire 60-metre strike exposure. The vein system is open for extension to the north for a further 100 metres along the trace of old deep trenching.

The north shaft workings expose considerable visible gold in quartz veins though the strike length of the veins appear to be limited.

Promising gold values were returned for the No. 3 stripping from relatively narrow quartz structures.

The initial program of stripping has been proven warranted and a continuation of this work along the strike of the South Shaft vein structure is recommended.

Respectfully submitted

Toronto, Ontario /^ J. L. Tindale March, 2003 Geologist

-8-

RTRT lOHRAPHY

Baycroft, C.

Carter, M.W.

Finley, F.L.

Hopkins, P.E.

Jeckell, A.W.

Laird, H.C.

Londry, J.

Meyer, W.

Stewart, R. B.

1924; Report on the West-Tree Mine. Canadian Champion Reef Mining Co. Ltd.; Kirkland Lake OGS files.

1977; Geology of Macmurchy & Tyrell Townships; OGS ReportNo. 152.

1926; Wasapika Section, West Shining Tree Gold Area; Ontario Dept. of Mines Volume XXXV, Part IV.

1920; West Shining Tree Gold Area; Ontario Dept. of Mines Volume XX l X, Part 111.

1937; Report on Lake Caswell Mines Property; Kirkland Lake OGS Files.

1934; Geology of Makwa-Churchill Area; Ontario Dept. of of Mines Volume XL 111, Part 111.

1974; Report for New Bedford Exploration Limited, Macmurchy Township; Kirkland Lake OGS files.

1984; Report on a Gold Vein Sampling Program and a General Evaluation on the TUT Enterprises Property, prepared for W.D. Harrison, Falconbridge Limited; Kirkland Lake OGS files.

1912; West Shining Tree Gold District, Ontario Bureau of Mines, Report No. 22.

1937; Gold Ore From Lake Caswell Mines; Report of Ore Dressing and Metallurgical Labs; Dept. of Mines and Resources, Ottawa.

1935; Brochure on Bilmac Gold Mines Limited; Kirkland Lake OGS files.

-9-

APPFNDTX

Sample Descriptions and Assay Results

JUNE 14, 2002 SAMPLE LOG

PROPERTY: McIntyre-McDonald, Macmurchy Township

Grab samples taken from the North and South Shaft dumps during initial stripping program by Annett and partners.

No. 55855 Grab of rusty, friable, schistose rock from South Shaft dump. Minor fragments of quartz noted. Assay Au, ICP.

No. 55856 Grab of white to translucent quartz vein material from North Shaft. Pyrite and flecks of galena visible in quartz. Assay Au, Ag.

Swastika Laboratories LtdEstablished 1928 Assaying - Consulting - Representation

Assay Certificate 2W-1450-RA1

Company: JACK TINDALE Dale: JUN-21-02Project: McIntyre/MacDonald Ann: J.Tindale/R.Annett

We hereby certify the following Assay of 2 Rock samples submitted JUN-15-02 by .

Sample Au Au Check Ag Multi Number g/tonne g/tonne g/tonne Element

55855 5.90 5.69 - Results55856 72.55 62.13 14.2 to

follow

One assay ton portion used.

Certified by_

l Cameron Ave., P.O. Box 10, Swastika, Ontario POK l TO Telephone (705) 642-3244 Fax (705) 642-3300

JACK TINDALEAttention: J.Tindale/R.Annett

Project: McIntyre/MacDonald

Sample: Rock

Swastika Laboratories Ltd.l Cameron Ave.. Swastika, Ontario. POK l TO

Tel: (705) 642-3244 Fax: (705) 642-3300

MULTI-ELEMENT ICP ANALYSISAqua Regia Digestion

Report No

Date

2W1450 RJ

Jul-12-02

Sample Number

55855

Ag Al As Ba Be Bi Ga ppm 'ft ppm ppm ppm ppm %

Cd Co Gr Cu ppm ppm ppm ppm

Fe K%

Mg Mn Mo ppm ppm

1.6 0.13 10 10 -co.s •e 5 3.87 el 10 175 16 3.57 0.07 1.06 725

Na o*,

0.02

Ni P Pb Sb Se Sn Sr ppm ppm ppm ppm ppm ppm ppm

Ti V W Y Zn Zr "A ppm ppm ppm ppm ppm

22 50 76 10.01 13 28

Up to 100 ppm Gr contamination due to sample grinding.

A 5 gm sample is digested with 5 ml 3:1 HCI/HN03 at 95c for 2 hours and diluted to 25ml with D.I H20.

Page 1 of 1 Signed

JULY 9, 2002 SAMPLE LOG

PROPERTY: McIntyre-McDonald, Macmurchy Township.

West Stripping

No. 55857 White to grey. e.g. qtz vein. 6" wide, pyrite occurs as cubes and aggregates along fracture planes llel to vein edges, traces of galena, wall rock and vein fractures stain rusty carbonate-ankerite; trace cpy with galena; styolitic partings lined with greenish talc; Note: galena quite prominent as well formed xls and masses of fine blades: Assay Au, Ag. ICP.

North Shaft Stripping

No. 55858 Chip 2m. east of vein, wall rock only; grey to gn.gy med. to fine grd. vole; soft; probably carbonate altered; minor strs. and veinlets wh. qtz. lenses w hvy. chl. on edges; minor diss. cubes of pyrite, possible trace cpy; Assay Au, Ag, Whole Rock.

No. 55859 Chip 1m. across H.G. vein and west wall rock; vein 6" wide; wall rock gy to gy gn with mottled texture, soft, talcy, pyrite cubes; vein is clear to white to gy. e.g. qtz w pyrite cubes along fractures; sericite mica and gn. talc along fractures; wall rock carb-rich; Assay Au, Ag.

No. 55860 Chip 1m. across vein, V.G. noted; vein material; vein 12" wide; white to translucent, e.g., qtz with hvy intergrowths of pyrite along styolitic partings and fractures; trace talcy gn. partings; Assay Au, Ag.

No. 55861 Grab of white, e.g. qtz w hvy pyrite as cubes and aggregates; alongfractures and partings; some talcy gn. along vein edges and fractures; very irregular fractures like styolites; Assay Au, Ag.

South Shaft Stripping

No. 55862 Chip sample along west side of trench 600 cm; mostly white to clear translucent qtz, e.g., with course pyrite cubes and aggregate masses along fractures with talcy gn material; pyrite 1*^6; vein appears banded white and grey white in part; wall rock is gn.gy. fg. talcy soft chlorite-rich vole; Assay Au, Ag.

No. 55863 Chip across 1.7m between veins; gy.gn, soft, f.g., vole streaked with hairline bl. to white qtz strs. llel to shistosity; pyrite also common as cubes along foliations; veins up to l" present with wh. qtz, pyrite, talcy, edges; zone probably carb, rich; Assay Au, Ag, Whole Rock.

No. 55864

No. 55865

No. 55866

No. 55867

No. 55868

No. 55869

No. 55870

No. 55871

No. 55872

No. 55873

No. 55874

No. 55875

Chip across .6m, main vein, minor wall rock; white, eg. qtz: with talcy gn. intergrowths and inclusions; minor pyrite: minor tourmaline masses and needles; very talcy edges; Assay Au. Ag.

Chip of wall rock across .5m; gn.gy schistose, soft, vole, with minute hairline qtz. stringers and pyrite along fracture planes; carb-rich; rusty stained surface; talcy and soft; veins to l cm irregular; Assay Au. Ag.

Chip of vein blowout 1m; pure white, e.g. qtz over .5m with hvy. schistose rusty wall rock and veins; oxidization of wall rock very hvy; extreme schistosity; little pyrite mineral left; Assay Au. Ag.

Chip of branch vein Imw wall rock; white, e.g. qtz with abundant pale gn talcy sericite mica along fractures and as aggregates in vein; minor e.g. cubic pyrite, carb-rich rusty alta; Assay Au, Ag. Vein 12".

Chip of wall rock 1m. w qtz lenses; rusty, carb-rich, pale gn. matted texture, soft vole; highly altered; streaked with qtz lenses up to 2cm: Au, Ag.

Chip 1m. of vein in trench westside; white to translucent, e.g. qtz with abundant pale gn sericite mica along partings, as aggregates and along vein border; inclusions of ankerite carbonate giving bn.red stain; e.g. pyrite rare; Assay Au, Ag.

Chip 2m. of wall rock along trench; gy.gn schistose to well foliated; looks almost porphyritic; with minor qtz stringers; pyrite common along foliation; Au, Ag Whole Rock.

Chip 1.5m of wall rock adjacent to vein; pale gn.gy talcy, soft highly altered and schistose, carb-rich, wh.qtz lenses; hairline veinlets along schistosity; pyrite cubes common. Assay Au, Ag.

Chip 2.0m. along wall rock; carb-rich, rusty, gy.gn talcy, soft vole, w qtz lenses, streaks; pyrite cubes common; talcy partings; Assay Au, Ag.

Chip across main vein .7m; very rusty wh. qtz, e.g., in highly sheared wall rock, pyrite common; carb-rich wall rock; Assay Au, Ag.

Grab of white qtz veining with hvy gn. sericite mica in vein fractures.Assay Au, Ag.Pyrite cpy common. From same area as No. 55869

Chip across .7m at north end of stripping, vein .3m; e.g. wh. to translucent qtz w black splashes of tourmaline (?); very rusty, sericite mica common in vein frac, also cubes pyrite; wall rock highly schistose, carb-rich; Assay Au, Ag Whole Rock.

Established 1928

Swastika Laboratories LtdAssaying - Consulting - Representation

Assay Certificate

Company: JACK TINDALEProject: McIntyre/MacDonaldAttn: J.Tindale/R.Annett

We hereby certify the following Assay of 19 Rock samples submitted JUL-11-02 by .

2W-1737-RA1

Date: JUL-22-02

SampleNumber

5585755858558595586055861

5586255863558645586555866

5586755868558695587055871

55872558735587455875

Au Au Check g/tonne g/tonne

6.1.6.

96.35.

6.0 .3 .0.

20.

0.0.5.0 .0.

0.2 .4 .

11 .

.10

.32

.10

.00 101.49

.93 40.66

. 1729840330 19.68

3704730853

1674 2.643925

Ag g/tonne

1.0 .1.

12 .5 .

1 .0 .0.0 .3 .

0 .0 .1.0.0.

0.0.1.1 .

. 5

.2

.4

. 0

. 5

.6

.2612

22031

1434

Mult i WRA Element

Results Resultsto to

follow follow

One assay ton portion used for Au.

Certified by_

l Cameron Ave., P.O. Box 10, Swastika, Ontario POK l TO Telephone (705) 642-3244 Fax (705) 642-3300

JACK TINDALEAttention: J.Tindale/R.Annett

Project: McIntyre/MacDonald

Sample: Rock

Swastika Laboratories Ltd.l Cameron Ave., Swastika. Ontario, POK l TO

Tel: (705) 642-3244 Fax: (705) 642-3300

ICP Whole Rock AssayLithium Metaborate Fusion

Report No

Date

2W1737 RL

M-19-02

Sample Number

55B58 55863 55870 55875

SiO2 AI203 Fe2O3 CaO MgO Na2O TJO2o/ n/ p/ n/ o/ o/ pt

42.23 9.97 6.86 16.78 2.25

45.17 9.70 9.21 10.20 5.16

41.75 11.59 10.64 9.37 5.67

73.10 5.58 5.76 4.10 2.16

0.07

0.20

0.24

0.06

0.92

0.58

0.71

0.29

^0

3.172.772.961.52

MnO P2O5

0.23 0.07

0.17 -cO. 01

0.19 0.02

0.12 -:0.01

LOI Ba 'fa ppm

17.1016.2216.196.96

320300270120

Sr Zr Se Y Be Co ppm ppm ppm ppm ppm ppm

90

120

90

10

60

30

40

20

35

35

40

20

25

15

15

10

5

5

5

^

60

55

65

35

Cr Cu ppm ppm

225305315

415

105

60115

60

Ni V Zn ppm ppm ppm

^ 295135 245^ 290<5 135

135807550

R b Nb Total ppm ppm *k

300

200

400

100

40 99.82

20 99.54

10 99.50

10 99.76

Sample is fused with Lithium metaborate and dissolved in dilute HNO3.

Page 1 of 1 Signed:

JACK TINDALEAttention: J.Tindale/R.Annett

Project: McIntyre/MacDonald

Sample: Rock

Swastika Laboratories Ltd.l Cameron Ave., Swastika. Ontario. POK 1TO

Tel: (705) 642-3244 Fax: (705) 642-3300

ICP Whole Rock AssayLithium Metaborate Fusion

Report No

Date

2W1737 RL

Jul-19-02

Sample Number

55858

55863

55870

55875

Si02 AI2O3 Fe2O3 CaO')fe * *k "k

42.23 9.97 6.86 16.78

45.17 9.70 9.21 10.20

41.75 11.59 10.64 9.37

73.10 5.58 5.76 4.10

MgO Na2O TiO20/0

2.25

5.16

5.67

2.16

Ok

0.07

0.20

0.24

0.06

•x,

0.92

0.58

0.71

0.29

K2Oafo

3.17

2.77

2.96

1.52

MnO P2O5 LOI% O/ Ol

fO fo

0.23 0.07 17.10

0.17 -;0.01 16.22

0.19 0.02 16.19

0.12 -:0.01 6.96

Ba Sr Zr Se Y Be Coppm ppm ppm ppm ppm ppm ppm

320

300

270

120

90

120

90

10

60

30

40

20

35

35

40

20

25

15

15

10

5

5

5

^

60

55

65

35

Crppm

225

305

315

415

Cu Ni Vppm ppm ppm

105 ^

60 135

115 ^

60 ^

295

245

290

135

Znppm

135

SO

75

50

Rb Nb Totalppm ppm "ft

300

200

400

100

40 99.82

20 99.54

10 99.50

10 99.76

Sample is fused with Lithium metaborate and dissolved in dilute HN03.

Page 1 of 1 Signed:

AUGUST 23, 2002 SAMPLE LOG

PROPERTY: McIntyre-McDonald Property

Sample of vein material taken while mapping southwest section of Claim 1046148 in the Waspika section of Macmurchy Township. Assisted by Roy Annett.

No. 55886 Grab from trench beside new road of qtz. Maybe the extension of theSouth Shaft vein. White to transparent coarse xline qtz. w brown stained carbonate along vein border and inclusions in veins. Black intergrowths of tourmaline. Trace of pyrite. Assay Au, Ag.

No. 55887 Grab of qtz vein on line IN, 1+OOE. White to transparent qtz, 6" wideapprox. in sheared granular gn.gy mafic vole showing red feldspar grains: carbonate as brown stained inclusions and along vein edges; vein fractured and infilled w talcy green serpentine, no sulphides noted. Assay Au, Ag.

No. 55888 Grab of qtz vein on cross line @ 1+25E 2+25N. White qtz, coarsegrained, with brown carbonate along fractures and as inclusions; rusty; aplite-like inclusions along vein edges; about 6" wide. Assay Au, Ag.

Swastika Laboratories LtdEstablished 1928 Assaying - Consulting - Representation

Assay Certificate 2W-2314-RA1

Company: JACK TINDALE Date: SEP-09-02 Project: (^/9^U^^^. ^,^t(^~Attn: J. Tindale

We hereby certify the following Assay of 3 Rock samples submitted AUG-26-02 by .

Sample Au Au Check Ag Number g/tonne g/tonne g/tonne

55886 0.95 0.84 0.255887 0.04 - 0.155888 0.13 - 0.1

Certified by

l Cameron Ave., P.O. Box 10, Swastika, Ontario POK l TO Telephone (705) 642-3244 Fax (705) 642-3300

ONT&RJO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

ction No:ling Date:

p al Date:

W0380.00618

2003-APR-11

2003-MAY-12

Work Report Summary

Status: APPROVED

Work Done from : 2002-J U N-02

to: 2002-AUG-23

Client(s):

102630

Survey Type(s):

ANNETT, ROY

ASSAY GEOL LG PSTRIP

Work Report Details:Perform Applied Assign Reserve

Claim* Perform Approve Applied Approve Assign Approve Reserve Approve

L 1046148 517,080 317,080 34,000 34,000 34,000

Due Date

4,000 39,080 39,080 2009-JUN-04

L 1046149

External Credits:

Reserve:

SO

317,080 317

SO

S9,080

59,080

SO 34,000 34,000 SO 0 SO 30 2009-JUL-05

,080 S8.000 38,000 34,000 S4.000 39,080 S9,080

Reserve of Work Report#: W0380.00618

Total Remaining

Status of claim is based on information currently on record.

41P11SE2051 2.25403 MACMURCHY 900

2003-May-14 11:00 Armstrong_d Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date:2003-MAY-12

Ministers du Developpement du Nord et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

ROY ANNETT GENERAL DELIVERY SHININGTREE, ONTARIO POM 2X0 CANADA

Tel: (888) 415-9845 Fax:(877)670-1555

Dear Sir or Madam

Submission Number: 2.25403 Transaction Number(s): W0380.00618

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.

NOTE: An excellent report, maps and detailed breakdown of costs accompanied this submission.

If you have any question regarding this correspondence, please contact BRUCE GATES by email at bruce.gates@ndm.gov.on.ca or by phone at (705) 670-5856.

Yours Sincerely,

Ron GashinskiSenior Manager, Mining Lands Section

Cc: Resident Geologist

Roy Annett (Claim Holder)

Assessment File Library

Roy Annett (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18280

MIOVINCUU. MINIM

Mininn t anrl Tannramining Lanu i enure

481000E 4B2000E 4B4000E 4B5000E 4800006 46MOOE 4B9000E 491 OWE 492000E 493000E

6276000N

827SOOON

5270000N

S268000N

926BOQON

5266000N

UTM Zone 17 1000m add

5275000N

5274000N

5272000N

5270000N

5286000N

481000E 4820006 483000E 484000E 486000E 490000E 492000E 493000E 494000E

e **ni,ia tosl**tf nliwig EJ*lm) iBoiiW tumuli wttMfw Pwftrt.UI Mni*rc ReeonlpiV OTIIco r/l tho MmMv Ol Wonnurn

maliaii rmv *lto tra eblobDti IhwiMh Un bcal Land Tttta or Ftegbtty Otfito.oi Ilw Minfeto ol Malunl Roiui*™-,,

General Information and LimitationsCanton) Informal to tv

Crvrat. AHucoAum Mid tonuw and Ijrrt us** thai tujlncl ar Mohibd (nut anUv tBvbitn m-Hf^j ilatrm

Date / Time of Issue: Mon May 12 10:16:03 EDT 2003

TOWNSHIP 7 AREA PLAN MACMURCHY O-0988

ADMINISTRATIVE DISTRICTS l DIVISIONS

Mining Division Larder LakeLand Titles/Registry Division SUDBURYMinistry of Natural Resources District TIMMINS

TOPOGRAPHIC Land Tenure

aa in[i]

[i [fia ID

aEl

tw Amt Mli too W

* Wltf Us Only

LAND TENURE WITHDRAWALS.'•'•'" """ "'"'

i I!** - \ h*** WNMrifNfl

iV'mrr (ud.if*,iJt( nrii*j"AW*W'* W^ll'lM ttkJttNiClVtWlR&t*

Wm w^^wonvwyw™^

w i IMPORTANT NOTICES

LAND TENURE WITHDRAWAL DESCRIPTIONS

W6 Jan

,aooi 400 rt suiv*cn m ALONG THE 8HOBC6 6T ALL LAKES a

MNHt&SbKVU WHU UWAft. 400 FT W33BRV*TIDM AROUND ALL IkKES X RiVERS

Wu Jin fs, 19SB SBC. M IWO W-t-Jt/W Wff W J*N!D SWWsm Jut 4,30.2 Sw; 35 Us O iwto fcdninf am) *ur1.Vf R* nw JwW M, 2l3CttWsm Fit 39, 2002 "a fm'*'1 Mlp.''vn*w,tmdm.t)4v^n.Went Fab M, 1002 ci ItmF:" wiy^'vvw^.imlincwiv.tirtws Nevie.ciX'j eEe,•^a'7aw9e/i•?^f<^^'f^/7^ ORO tWflfT

2.25403 ASSAY PSTRIP GEOL

o o

Hin o M H ra

AN Sample 55857 (Grab)

Au 6.1 g/T Ag1.5gfT Pb 728 ppm Zn 961ppm

6"gy, wh, qv, py.tr cpy PbS common

metres

PLAN No. 3 STRIPPING AREA Claim 1046148, MacMurchy Twp.

ocd K;

-2+50N

O

Sample 55861 (Grab^qv, py)

\ \

meration minor rusty card alt poorly sheared, py

AN

gn, mg, mv \ , carb-rich, sheared, py

Sample .AssaysNo. Au g/T Agg/T Type55858 1.32 0.2 2.0m chip55859 6.10 1.4 1.0m chip55860 96.00 12.0 1.0m chip55861 35.93 5.5 grab

5m

metres

PLAN OF NORTH SHAFTSTRIPPING a WASHING AREA

Claim 1046148, MacMurchy Twp.

10H O

TRS 2534

No. 4 Post

N

\A Shaft

2+00 N

Sample 55887 ny shear w ,

41P11SE2051 2.25403 MACMURCHY 220

MCINTYRE MacooNALD PROJECTROY ANNETT PROPERTY

Geological Plan of Part of Claim 1046148 Showing Location of Stripping and Gold Veins

Date: February, 2003 Drawn: JLT

CL 1167258No. 1 Post CL 1167258 "7

O 50n

metres

Ncfc c/fte

Sample Assays

No.1413121110987654321

Sample No.5587555874558735587255871558705586955868558675586655865558645586355862

Aug/T11.254.392.740.160.530.085.730.400.3720.30.33.840.296.17

AggfT1.41.30.40.10.10.31.00.20.23.20.10.60.21.6

Type1.0m chipgrab0.7m chip2.0m chip1.5m chip2.0m chip1.0m chip1.0m chip1.0m chip0.5m chip0.5m chip0.6m chip1.7m chip0.6m chip

foliated gnmv

ftvy shearing rusty, carb alt boiiains S i strsqtz ;

A/a 2 Trench

/hvy shearing veined, carb

/ v. rusty qv, canb./y

, si foliated gn mv

rusty, carb-rlch~

/ Main Vein

Main Shear Zone

dk gn, silicified, carb-rich sheared mafic volcanic py common throughout lenses, boudins, Blue-gy qtz along shear planes

South Shaft (capped

Sample 55855

wh, eg, qtz w/ needles and blotches of tourmaline, mice, talc chl along vein edges py cubes common

O

metres

PLAN OF SOUTH SHAFTSTRIPPING A WASHING AREA

Claim 1046148, MacMurchy Twp.

41P11SE2051 2.25403 MACMURCHY 230