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002E/02/1829

Second Year Assessment Report of Prospecting and Soil Sampling,

on Licence 18724M, NTS 02E02

Central Newfoundland

Submitted by:

Keith Kelloway

Work year: 2012/04/08 to 2013/04/08 Total claims: 5

Total Expenditures: $1336.79

Table of Contents

Introduction 01 Location, Access and Physiography 01 Geology 01 Previous Work 04 Current Work 05 Results and Recommendations 07 References 07

Figures and Tables

Figure 1. Newfoundland Location Map Licence 18724M 02 Figure 2. Claims Location Map 18724M 03 Figure 3. Sample Location Map 06 Table 1. Sample Data 05

Appendices Appendix A: Geochemical Report 1 page Appendix B: Statement of Expenditures 1 page

01

Introduction Licence 18724M was staked for its gold potential. The Zonte Metals’ Wing Point South Property lies north of and adjacent to this licence. That company recently announced positive results from IP geophysical work done there.

Location, Access and Physiography Licence 18724M is located within NTS topographic map area 2E/02 in central Newfoundland (Figure 1.). It is accessed from the Trans Canada Highway by taking a gravel forestry road located just west of Glenwood and driving 24 km northeast (Figure 2.). This road is called the Salmon Pond access road. The topography is relatively flat. The land has been cut over by commercial forest harvesting giving areas in various stages of tree growth. There is about 10% outcrop exposure which occurs on the roadside.

Geology The western ¾ of the property is underlain by siliclastic marine sandstones of the Outflow Formation. The eastern ¼ is underlain by siliclastic marine shales of the Hunts Cove Formation. Both formations belong to the early to late Ordovician Davidsville Group of rocks. The Davidsville Group forms the basal sedimentary division in the eastern part of the Dunnage Zone. Southward, the group passes along strike into the Baie d'Espoir Group and north-eastward, the group has been mapped to the coast. The basal part of the Davidsville Group is structurally imbricated with the Gander River Complex.

02

Figure 1. Newfoundland Location Map Licence 18724M NTS 02E/02 NAD 27 Zone 21

03

Figure 2. Claims Location Map 18724M

NTS 02E/02 NAD 27 Zone 21

04

Previous Work

The property has been included in properties previously staked by Crosshair Exploration, Rubicon Minerals, Noranda exploration, and Fort Knox gold Resources. The following history of exploration in the area was taken from the MODS description of the Grid 69 gold prospect (National Mineral Inventory Number: 002E/02 Au 010). According to Strickland and Sheppard (1991), the area was first visited in the 1800's by Murray and Howley. Government geological mapping ensued in 1963, and 1964. In the 1970's, International Mogul Mines Limited explored for base metals through geophysics and diamond drilling near Weir's Pond. Anomalies revealed minor pyrrhotite, pyrite and chalcopyrite mineralization associated with mafic volcanic and gabbroic rocks. Minor work was also done by Minorex. In 1978 mapping began in the Gander River (2E/2) map area by the Provincial Department of Mines and Energy. This study determined that the main focus for economic potential would be the Gander River Complex. In 1984, Duval International Limited conducted geological mapping, geophysics, soil and till sampling and analysis of panned concentrates in the Jonathan's Pond area. In 1986, Esso Minerals Canada conducted geological mapping, geophysics, soil sampling, trenching and diamond drilling in the vicinity of Weir's Pond, Values from silicified mafic volcanics assayed up to 750 ppb Au. In 1988, a regional lake sediment survey was undertaken in the Botwood (2E) map sheet. Between July 1990 and July 1991 Gander River Minerals Inc conducted an exploration program on the property which included diamond drilling and geological mapping. During the first year of ownership by the author, six sedimentary rock samples were collected and sent to Eastern Analytical Ltd for Au fire assay and ICP-30 analysis. Three silicified black shales with rusty surfaces gave 28, 68 and 154 ppb Au. 05

Current Work

In 2013 Zonte Metals announced partial results for IP geophysical work done on its Wings Point Property. These are two grids, F and G, which are located on their South target area and located about three kilometres from Licence 18724M. The South target area is contained in a set of claims that is north of and adjacent to Licence 18724M. The geophysical survey identified several targets including one coincident with known bedrock mineralization in an area of known gold mineralization. Twelve soil samples were collected and sent to eastern Analytical Ltd. for gold fire assay and ICP-30 analysis. The sample data is given in Table 1. and the sample locations are shown in Figure 3.

ID Easting Northing Description (cm) ppb Au

MAYLEX 01 671 445 5 445 502 20 brown 5MAYLEX 02 671 254 5 445 613 20 brown 5MAYLEX 03 671 226 5 445 678 20 brown 6MAYLEX 04 671 038 5 445 827 20 brown 5MAYLEX 05 671 082 5 445 888 20 brown 8MAYLEX 06 671 129 5 445 964 20 green-brown 5MAYLEX 07 671 172 5 446 011 20 green-brown 5MAYLEX 08 671 226 5 446 110 20 brown 95MAYLEX 09 671 244 5 446 177 20 brown 5MAYLEX 10 671 196 5 446 360 20 red-brown near outcrop 191MAYLEX 11 671 205 5 446 348 20 red-brown near outcrop 11MAYLEX 12 671 236 5 446 471 20 brown 5

Table 1. Sample Data 06

Figure 3. Sample Location Map All samples prefixed MAYLEX

07

Results and Recommendations

Two soils gave positive results: MAYLEX08 = 95 ppb Au, and MAYLEX10 = 191 ppb Au. MAYLEX10 was collected on an outcrop of sheared, rusty sedimentary rock. Next year’s work will consist in continuing the soil survey and getting samples of the outcrop where MAYLEX10 was collected.

References

Blackwood, R. F 1982: Geology of the Gander Lake [2D/15] and Gander River [E2] area. Source: Government of Newfoundland and Labrador, Department of Natural Resources, Mineral Development Division, Report 82-04, 1982

Davenport, P.H., Nolan, L.W., Butler, A.J., Wagenbauer, H. A., and Honarvar, P

1999: The Geoscience Atlas of Newfoundland, Government of Newfoundland and Labrador, Department of Natural Resources, Geological Survey, Open File NFLD/2687, version 1.0

ONeill, P and Blackwood, F 1989: A proposal for revised stratigraphic nomenclature of the Gander and Davidsville groups and the Gander River Ultrabasic Belt, of northeaster Newfoundland [NFLD/0001778]

Moore, P J and Smith, P A

2003: First, second, third and fourth year assessment report on prospecting and geochemical and geophysical exploration for licences 7180M-7181M, 7912M, 8477M, 8600M-8606M and 8608M-8609M on claims in the Gander River area, central Newfoundland, 2 reports

Newfoundland Department of Natural Resources, Mineral Occurrence Data Sysytem, Inventory # 002E/02 Au 010. http://gis.geosurv.gov.nf.ca/mods/

Froude, T

2005: Third year assessment report on prospecting and geochemical and trenching exploration for licences 10926M and 10937M-10938M on claims in the Gander River area, central Newfoundland

Appendix A

Au Fire Assay/ICP Geochemistry CertificateClient: Keith KellowayGeologist: Eastern Analytical LimitedProject: P.O. Box 187Sample: Soil Little Bay Road Signed by:______________________

Springdale, NLDskFile: 616-1305066 A0J 1T0 (Concentrations in assay range

may cause interferences in DateIn: April 16, 2013 Phone: 709-673-3909 associated elements.)DateOut: April 18, 2013 Fax: 709-673-3408

Email: info@easternanalytical.ca------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ --------Sample Au Ce Sr Ba Fe P Hg Mg As V Na Mo Al Be Ca Zn Cu Sb Ag Pb Bi Ti Cd Co Ni W La K Mn Sn CrNumber ppb ppm ppm ppm % % ppm % ppm ppm % ppm % ppm % ppm ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm % ppm ppm ppm----------------------------- ------------------------------------------ ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- --------- --------Blank - Au 5 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---Std - GS - P7H 811 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---Blank --- 10 1 10 0.01 0.01 1 0.01 5 1 0.01 1 0.01 0.5 0.01 1 1 5 0.2 2 2 0.01 0.5 1 1 10 10 0.01 5 20 1LKSD-2-STD --- 135 25 184 3.23 0.10 1 0.56 8 38 0.03 1 1.47 0.7 0.55 186 34 5 0.8 30 2 0.05 1.3 16 18 10 32 0.20 1521 20 26Maylex 01 5 62 9 16 4.89 0.03 1 0.32 17 39 0.01 1 1.63 0.5 0.05 38 29 5 0.2 10 2 0.01 1.1 11 15 10 10 0.03 861 20 36Maylex 02 5 74 7 38 3.67 0.05 1 0.67 17 27 0.01 1 2.36 0.6 0.03 84 38 5 0.2 7 2 0.01 0.9 14 41 10 10 0.07 916 20 39Maylex 03 6 71 7 33 4.19 0.07 1 0.68 19 29 0.01 1 2.66 0.6 0.01 104 38 5 0.2 7 2 0.01 1.0 17 41 10 10 0.06 1010 20 39Maylex 04 5 49 7 19 4.65 0.05 1 0.49 21 32 0.02 1 4.13 0.7 0.03 96 27 5 0.2 5 2 0.01 1.0 14 31 10 10 0.03 684 20 49Maylex 05 8 67 7 21 4.23 0.03 1 0.63 30 31 0.01 1 2.76 0.6 0.02 77 38 5 0.2 7 2 0.01 1.0 18 36 10 10 0.03 956 20 39Maylex 06 5 57 5 19 3.07 0.03 1 0.56 18 20 0.01 1 2.06 0.5 0.02 67 37 5 0.2 7 2 0.01 0.7 14 33 10 10 0.03 670 20 31Maylex 07 5 66 6 32 3.67 0.04 1 0.66 14 25 0.01 1 2.78 0.6 0.02 90 39 5 0.2 4 2 0.01 0.9 13 44 10 10 0.05 687 20 41Maylex 08 95 57 6 35 3.81 0.08 1 0.28 21 30 0.01 1 2.16 0.5 0.02 72 22 5 0.2 7 2 0.01 0.9 12 20 10 10 0.03 1481 20 34Maylex 09 5 55 6 27 3.76 0.09 1 0.33 19 28 0.01 1 2.38 0.5 0.02 73 20 5 0.2 5 2 0.01 0.9 12 20 10 10 0.04 930 20 34Maylex 10 191 31 10 12 7.09 0.04 1 0.31 58 29 0.02 2 3.64 0.6 0.02 109 53 9 0.2 21 2 0.01 1.6 26 21 10 10 0.04 817 20 38Maylex 11 11 31 9 16 5.98 0.05 1 0.37 33 26 0.02 4 >5.50 1.3 0.03 91 79 6 0.2 20 2 0.01 1.4 26 31 10 10 0.03 546 20 41Maylex 12 5 81 9 28 5.46 0.06 1 0.90 19 38 0.02 1 3.99 0.8 0.02 132 49 5 0.2 7 2 0.01 1.3 21 42 10 10 0.04 1493 20 47

Appendix B

Statement of Expenditures Prospecting Keith Kelloway 2 days @ $100 $200.00 Andrew Kelloway 2 days @ $50 $100.00 Meals: 2 meals @ $ 20 $40.00 Vehicle 2 trips @ $60 $120.00 > 150 km $50 $50.00 ATV 2 @ $40 $80.00 Report Writing; 2 days @ $100 $200.00 Geochemical EAL Report 5066 $355.95 Sample Shipment $16.48 Subtotal = $1162.43 Admin(15%) = $174.36 Total = $1336.79