Second Year Assessment Report

Of

Prospecting and Geochemical Investigations

On

Licence # 14438m

The Marilyn Three Property

Tote Hill area, NTS 12D/13/14, Newfoundland

By

Roland & Marilyn Quinlan

UTM coordinates of Northeast corner (5412000N; 6811000E) of Zone 21, NAD27

Work conducted March 21st , 2008 to February 16th , 2009

February 16th , 2009

Table of contents

i Introduction 1

ii Location and Access 2

iii Geology 3

iv Previous Work 4-5

v Newfoundland Geology 6-7

vi Conclusions And Recommendations 8

Illustrations

Fig.1 Location One page

Fig.2 Sample location One page

Fig.3 NFLD Geology One page

Fig.4 Regional Geology One page

Appendices

viii Statement of expenditures One page

ix Assay sheets One page

x Sample descriptions One page

xi References Two pages

1

Introduction

In the summer of 2006 during a fishing trip up the Bay D’Espoir highway a medium size,highly angular, quartz block was found in the ditch of the main highway. Although hematitestained and somewhat brecciated a complete lack of sulfides gave the sample a low priority inthe assay sequence.

But once assayed and with a gold value approaching five grams per ton, the sample wasgiven a closer examination. It was then determined that the sample in question more closelyresembled the low sulfidization type veining, more widely associated with the Neoproterozoicrocks of the Avalon zone rather then the typical epithermal type veining which can be found throughout the central Newfoundland region.

Consultations with Dave Copeland of Paragon Minerals and Norman Mercer of theDepartment of Mines and Energy in late 2007 helped to confirmed this thought. A couple ofmore trips were made to the area and more samples collected. Some of these samples wereshipped to St. John’s to be cut and polished. Replicas were sent to be assayed.

Unfortunately none of these samples were anomalous in gold although an additionalsample collected from the original quartz block approached the three grams per ton range. Uponreceiving back and viewing the cut and polished samples though, it was clearly evident that theauthor’s first assumption was correct and that the property is probably host to a low sulfidization,epithermal gold showing very similar to the Bergs prospect of the Avalon zone. With this inmind and to cover the immediate showing sixteen claim blocks were staked to become theMarilyn Three property.

Subsequent staking has increased the property to the north and south of the original claimblocks and work reports for these will be submitted later. Work this year consisted of revisitingsome of the areas already sampled to see if any differences could be found between the quartzblocks already submitted for assay. Other areas of the property were also visited and additionalquartz float discovered. Unfortunately all of the samples submitted this year had little or nogold.Work will continue on the property depending on available funding, new developments or asalways time constraints.

2

Location, Access and Topography

The Marilyn Three property consisting of sixteen claim blocks within license # 14438mis located in central Newfoundland, approximately 30 miles south of the town of Bishop’s Falls. For mapping purposes the property can be partially located in the far east-central portion of ntsmap sheet 2D/13 and partially in the far west-central portion of nts map sheet 2D/14.

Route 360 going south from the Trans Canada highway bisects the western extension ofthe property just to the east of the Great Rattling Brook. Minor forestry access roads originatingalong this route bisect the rest of the property in many other direction making access to and fromthe property very easy.

Topography is relatively flat with one exception. The northern portion of the property hasa very high hill which is known locally as Tote hill. It rises very abruptly form the river basin tolie about 100 meters above the rest of the property. The remaining countryside consists of lowlying lakes, minor rivers and streams with an occasional bog thrown in for good measure.

Wood cutting operations have long since ceased in the area and regeneration of the foresthas begun. Most of the regeneration is natural but there appears to have been some silviculturework performed. A fire also went through the area in the late 80's so the amount and type ofregrowth is quite varied.

Altogether though the property is above average in accessibility and ease of prospecting.Float and outcrop occurrences are quite good around the lakes and streams. Tote hill is mostlyoutcrop and the surrounding road cuts and many old abandoned pits in the area also providegood exposure to the underlying bedrock.

3

Geology

The Marilyn Three property lies adjacent to and partially within the Mount Peyton IntrusiveSuite. This intrusive, consists dominantly of fine-grained, equigranular, massive to layeredgabbro. The gabbro is is in turn intruded by buff to pink, leucocratic biotite granite. This Suitehas been geophysically modeled as a number of inwardly dipping blocks that extend downwardfor five kilometers. Layered gabbro, in the southern part of the Mount Peyton Intrusive Suite, hasbeen dated at 424+-2 Ma . The majority of the intrusive and younger leucocratic granite occurs further to the east buta small plug occurs just to the north of the property along the structure that is thought to beresponsible for the known mineralization. Another, larger intrusive plug occurs to the southtowards the Rolling Pond area. This again is thought to follow the same structure. Also partially occupying the western portion of the property is a long linear belt of lateOrdovician to early Silurian siliciclastic rocks. This unit known as the Badger Group consists ofa shallowing-upward sequence of deep-to-shallow-water marine conglomerates and sandstones. These pass gradually upward into the continentally derived red arkoses of the SilurianBotwood group. Within this group the Wigwam formation which is interpreted to be a terrestrialsequence dominated by fluviatile sedimentation approaches the property from the west but todate has not been identified within the property.

.

4

Previous work

Very little if any work has been conducted in the immediate area of the Marilyn Threeproperty although in the larger region there has been substantial amounts of work by a number ofexploration companies. Initially the focus of the work was for magnesite and asbestos in theultramafic rocks directly to the south of the property but more recently, the focus has shifted tothe search for gold mineralization. Further to the west Meredian Gold (now Yamana gold) along with Rubicon Minerals(now Paragon Minerals) have conducted, geological, geophysical and geochemical surveyswithin the ultramafics of the Coy pond complex. This work was brought about by the discoveryin the late nineties of low grade gold over an extensive area by prospectors Roland and LarryQuinlan. Recent drilling has traced the mineralization over a kilometer in strike length and todepths of 200.meters. This very significant prospect has now been named the Huxter-Laneproperty and work is continuing Subsequently another discovery a few kilometers to the north by local prospector CyrilReid also resulted in a large amount of work by Linear Gold.. This culminated in a couple ofdrill programs with significant drill hole intercepts as well. Still further south in late nineties to early 2002 Gallery Resources conducted anextensive drilling program to try to identify the source of some high grade base metal bouldersdiscovered earlier near Bruce pond. This work was primarily focused around the volcanic andsedimentary units of the North Steady Pond Formation. To the east of the North Steady Pond Formation, Noranda Resources in the late eightiesto early nineties, spent a number of years in the Huxter Pond area with exploration programsrunning as far east as Gander Lake and beyond. Despite the emphasis at the time on base metals, the biggest success for Noranda in thelarger area surrounding the Marilyn Three property was to the far east of the property, across theMount Peyton batholith. Noranda after follow up work on a very large stream sediment antimonyanomaly, discovered several significant prospects. These were (collectively referred to as theHunan Line prospects) and after much work by a number of exploration companies culminatedin the definition of a significant resource and the eventual opening of the Beaver Brookantimony mine. Further to the north of the property in the late eighties, Noranda discovered alarge number of large, gold bearing quartz boulders just to the east of the community of BishopsFalls. They named the occurrence the Moosehead but after disappointing results the propertywas allowed to lapse. After a number of other companies had picked up and relinquished theproperty Altius Minerals in the late 90's staked the showing and began work in the area. This work program included not only the Moosehead property but also a large number ofclaim blocks near Rolling Pond and others near Paradise lake. Although work was conducted onall three areas, the most successful drilling program was at the Moosehead showing. Here anumber of drill holes were in the multi-ounce level over very significant widths but continuity

5

of the veins was the major stumbling block in defining a resource for the property. Work has and continues to be conducted in the larger area. Recently Golden DoryResources staked a large number of claims contiguous with but also to the west and north of theMarilyn Three property. Work is continuing within this large parcel of land but no work detailshave yet been released

6

Newfoundland Geology

Taken from Barbour D. and Churchill R., 1999.

Tectonostratigraphic setting: The Appalachian Orogen in Newfoundland is composed of fournortheast-trending late Precambrian to lower Paleozoic tectonostratigraphic zones. The zones aretermed Humber, Dunnage, Gander and Avalon Zones and were classified on the basis of distinctstructural, depositional, tectonic and volcanic-plutonic characteristics. Portions of these zoneswere deformed during the Precambrian Avalonian Orogeny, the middle Ordovicianpenebscot/Taconic orogeny, the lower to middle Silurian Salinic Orogeny, the DevonianAcadian orogeny, and finally during the Carboniferous Alleghanian Orogeny.

The Humber Zone records the development and subsequent destruction of an Atlantic-typepassive continental margin on the southeast margin of Laurentia. The Dunnage Zone representsvestiges of the Iapetus Ocean and later accreted island arc systems and melanges. Rocks of theGander Zone record the development and destruction of a continental margin located in the eastof the Iapetus Ocean and possessing Celtic affinities. The rock record of the Avalon Zone relatesto either rifting and subsequent opening of the Iapetus during Precambrian times, or to asubduction cycle that predated opening of the Iapetus. The zone was a stable marine platformduring Cambro-Ordovician time, characterized by shallow water deposition of platformalcarbonates and siliciclastic rocks.

With the exception of the Gander-Avalon boundary, malanges and ophiolite complexescharacterize the boundaries between the other zones. The Humber-Dunnage boundary isdelineated by the Baie Verte - Brompton Line - Long Range Fault system along which ophioliticslivers such as the Flatwater Pond Complex are found. The Gander River Complex separates theGander and Avalon Zones. The Avalon-Gander boundary, the Dover Fault - Hermitage Flexureis delineated by subverticle to vertical faults that contain broad zones of ductile deformation.

Siesmic data for the Baie Verte - Brompton Line and the Gander River Complex show that thesemajor breaks do not extend to deeper crustal levels reaffirming earlier suggestions that theDunnage Zone may be allochthonous on Humber and Gander Zone basement rocks. In addition,major structures such as Baie Verte - Brompton Line and Gander River Complex have shallowlydipping geometries consistent with ramp-flat style deformation.

Within the Dunnage Zone volcanic, plutonic and sedimentary rocks record the development andeventual destruction of the Iapetus Ocean during the early to middle Paleozoic. The northwesternsection of the Dunnage Zone, the Notre Dame Subzone, is underlain by a mixed volcanic-sedimentary package that was intruded by alkalic granitic bodies. The geometry of the NotreDame Subzone is dominated by a northeast-southwest trending belt of predominantly Ordovician

7

aged, arc-related mafic to felsic volcanic rocks and subsidiary volcaniclastic to sedimentarylithologies.

The southeastern part of the Dunnage Zone, the Exploits Subzone, is characterized by deepmarine sedimentary rocks of Ordovician age and Silurian, shallow marine to fluviatilesedimentary rocks and subaerial volcanic units that have subsequently been intruded by Siluro-Devonian gabbroid and granitoid rocks.

The boundary between the Exploits and Notre Dame Subzones is delineated by a late rectilinearfault or fault system termed the Red Indian Line which, in some areas, is manifested as amylonite zone locally punctuated by intrusions.

8

Conclusions and Recommendations

The Marilyn Three property was staked basically for its potential to host epithermal lowsulfidization gold. Over the two years since the original discovery, this property has beensubjected to a number of visits and during this time a number of samples have been taken.Unfortunately or fortunately depending on the perspective taken, the majority of these samplesconsisted off chalcedonic quartz and were very low in gold values.

Although disappointing to a degree, the fact that a couple of samples from a largebrecciated quartz block have gold numbers approaching the 5g/t range is somewhat encouraging.Another thing to consider is that all of the other samples except one banded vein were takenfrom chalcedonic quartz and if the system is true to the model then these samples would not beexpected to carry gold values of any significance.

After discussions with Department of Mines personnel and identifying the need formethodical sampling in epithermal environments it was decided to revisit some of the areas ofquartz float within the property to see if any subtle differences could be distinguished betweenthe various samples.

Other areas of the property were also visited and more quartz float located. Again, almostall of the float located to date is chalcedonic in nature and when assayed revealed little if anygold. The thought is now that the float is derived from a large silica cap somewhere to thesouthwest. The presence of highly anomalous gold in one quartz block and the banding inanother large and local block suggest that somewhere within or adjacent to the property thereexists the potential of an epithermal low sulfidization gold system.Work will continue in tryingto locate the source of the float.

Table 1The Marilyn Three PropertySample DescriptionLicense # 14438MNTS Map Sheet 2D/13/14Zone 21 Nad 27

Sample#

Type Rocktype

Mineralization Au(ppb)

As(ppm)

Utm coordinates

15951 float quartz chalcedonic 5 21 609140:5411174

15952 float quartz chalcedonic 5 15 609148:5411187

15953 float quartz chalcedonic 5 5 609145:5411219

15954 float quartz chalcedonic 5 7 609176:5411215

15955 float quartz chalcedonic 5 5 609234:5411245

15956 float quartz chalcedonic 5 14 609180:5411501

15957 float quartz chalcedonic 5 5 609191:5411567

15958 float quartz chalcedonic 5 7 609225:5410598

15959 float quartz chalcedonic 5 5 609368:5410654

15960 float quartz chalcedonic 5 5 609877:5410431

15961 float quartz chalcedonic 5 5 609904:5410443

15962 float quartz trace hematite 59 211 610962:5410265

References

Barbour D and Churchill R1999: First Year Assessment Report Coverng Prospecting, Mapping and Geochemical Samplingon the Paradise Lake Property, Central Newfoundland. Map Staked Licences 6091M, 6092Mand 6401M, NTS sheets 2D/12 and 13. Altius Resources Inc., Rodney Churchill and DavidBarbour, 1999.

Colman-Sadd, S P, Swinden, H S, and Gibbons, R V 1982: Geology and mineral potential of south-central Newfoundland. Mineral DevelopmentDivision, Department of Mines and Energy, Government of Newfoundland and Labrador Report82-08, 109 pages. [GSB# NFLD/1311]

Dickson, W L 1991: Geology of the Eastern Pond [NTS 2D/11W] map area, central Newfoundland. In Reportof Activities 1991. Geological Survey Branch, Department of Mines and Energy, Government ofNewfoundland and Labrador In Report of Activities, pages 9-13. [GSB# NFLD/2489]

Dickson, W L 1992: Ophiolites, sedimentary rocks, posttectonic intrusions and mineralization in the EasternPond [NTS 2D/11W] map area, central Newfoundland. In Current Research. Geological SurveyBranch, Department of Mines and Energy, Government of Newfoundland and Labrador Report92-01, pages 97-118. [GSB# NFLD/2495]

Grady, J C 1953: The geology of the southern half of the Serpentine Belt in east-central Newfoundland.Unpublished report [GSB# 002D/11/0005]

Kean, B F 1974: Notes on the geology of the Great Bend and Pipestone Pond ultramafic bodies. In Reportof Activities, 1973. Mineral Development Division, Department of Mines and Energy,Government of Newfoundland and Labrador In Report of Activities, pages 33-42. [GSB#NFLD/0772]

MacKenzie, L 1990: Second year assessment report on geological and geochemical exploration for licence3443 on claim block 15568 in the South Great Rattling Brook area, central Newfoundland.Newfoundland Gold Corporation Unpublished report, 55 pages. [GSB# 002D/12/0245]

Mercer, B J 1988: First and second year assessment report on geological, geochemical and geophysicalexploration for licences 2751, 2753, 2774-2777, and 3270 and 3272 on property in the GreatBend area, Newfoundland. Atlantic Goldfields Incorporated and Jascan Resources IncorporatedUnpublished report, 66 pages. [GSB# 002D/11/0169]

Zwicker, E J and Strong, D F 1986: The Great Bend Ophiolite, eastern Newfoundland: field investigations. In CurrentResearch. Mineral Development Division, Department of Mines and Energy, Government ofNewfoundland and Labrador Report 86-01, pages 324. [GSB# NFLD/1607]