Regional Exploration and Production:

The claim group is contiguous to the Horwood group of claims and lies within a prospective belt of mafic and andesitic flows with known porphyries and a historical past producer the Tionaga Mine. The Tionaga Mine lies within the central portion of the claim group. Tionaga Gold Mines was incorporated in 1937 and proceeded with shaft deepening to 731 feet with two additional levels. An amalgamation mill on site processed 6,654 tons of ore and produced 2,299 oz of Au and 404 oz of Ag. From 1939, the property was essentially dormant until the Orofino Resources Ltd. option in 1983. In 1984 Orofino drilled ten vertical holes around the mine workings. The conclusions reached from the drill results indicated spotty values and that the ratio of silver to gold becomes greater on the extensions to depth and to the west. Best values came from hole #8 with .38 oz/t Au over 5 feet at a vertical depth of 229 feet.

Other Local Exploration:

The Tionaga is the Company's tenth gold project located within the Timmins/West Timmins district. Within Porcupine Mining Division, adjacent to our Horwood Gold property which we are currently drilling. The Tionaga property is located approximately 65 km SW of Lake Shore Gold discovery of 12.75 g/t gold over 83.4 meters, along DPFZ -- Destor Porcupine Fault Zone.

Property Geology:

The property occurs along what may be a splay off the prolific gold-bearing Destor Porcupine Fault Zone ('DPFZ'). The DPFZ hosts the world famous Timmins gold camp as well as other gold deposits in the Harker-Holloway area of Ontario.

A thick sequence of pillowed andesitic flows, minor intercalated tuffs and pyroclastics cut by thin lamprophyre dykes. The succession of flows abut against a quartz feldspar porphryry on the north. Quartz veins hosting gold post date the flows and porphyry.

Historical Highlights:

The Tionaga Mine with 2,299 ounces of gold produced in 1937 and a drillhole on the Tionaga Mine drilled in 1984 with .38 oz/t Au over 5 feet.

Earlier geophysical work indicates two strong east west structures traversing the length of the property. These structures require investigation for possible gold mineralization.

As well, the property requires investigation of the possibility of porphyries on the property as the Tionaga Mine is influenced by a porphyry. Consideration may be given to acquiring the Tionaga mine as well and investigating further with diamond drilling around the existing mine workings.