First Year Assessment Report of

Prospecting Activities on

Licence 017432m

Lakeside East Property

NTS Map Sheets 2D/15 Zone 21 NAD 27

Work Conducted Between March 2010 & March 2011

Report Written and Compiled by Eddie Quinlan

April 2011

Table of Contents

Page Summary 1-3 Introduction 3-8 Location and Access 8 Physiography 9 Property Description 9 Regional Exploration History 10-19 Previous Property Exploration 19-21 Newfoundland Geology 21-22 Regional Geology 22-23 Property Geology 22-23 Current Program and Results 23-24 Conclusions and Recommendations 24-25 References 26-30

TABLES Table 1: Property Information FIGURES Figure 1: Property Location Map (017432m) Figure 2: Newfoundland Geology Figure 3: Regional Geology Map Figure 4: Sample Location Map (017432m) Figure 5: Showing Location Map Figure 6: Rubicon Rock Sample Location Map

Figure 7: Rubicon Minerals Au in Soils Map Figure 8: Rubicon Minerals As in Soils Map APPENDICES Appendix 1: Expenditures – Licences 17432m Appendix 2: List of Personnel & Contractors Appendix 3: Analytical Certificates Appendix 4: Sample Descriptions

Summary

The Lakeside East property was staked after the ground was dropped by previous owners. Licence 017432m consist of eight contiguous map staked claims, which was staked in February of 2010 to cover prospective geology and the possible strike extension of the Joe Batt's Pond Linear trend (H Pond Trend). The Gander Lake property lies wholly within the turbiditic sediments of the Davidsville Group, including intervals of slate, siltstone and sandstone-greywacke. A wide gold bearing quartz vein system that is well exposed only along Gander Lake had not been systematically explored until the property was optioned by Rubicon Minerals Corporation of Vancouver, B.C. Coarse gold discovered by Rubicon personnel in 2002 in angular float may be sourced from this vein system and emphasized the need for a serious exploration program. Since that time, field work has included prospecting, rock sampling and systematic soil sampling. A total of 37 rock samples of mineralized quartz float and outcrop were collected during the 2005 field season by Rubicon personnel. Of the total, 20 samples were elevated above background (5 ppb Au), and five samples assayed over 1 g/t Au. The highest gold value was returned from an outcrop quartz sample (RNF39009) with 7.9 g/t Au. A 346 sample B-horizon soil recce grid was completed to ensure coverage of the entire property by completing eight sample lines orientated 300-120 and spaced 200 meters apart. This orientation was chosen to perpendicularly intersect the Joe Batt’s Pond Linear, a regional structure that is closely associated with gold mineralization. Of the total, 12 samples assayed greater than the background gold value of 5 ppb, and four assayed greater than 50 ppb. A pattern to the gold mineralization is not visually obvious, however a plot of the arsenic values shows a distinct cluster of elevated samples creating an anomaly up to 200 meters wide and 1000 meters long orientated approximately 30-210. This anomaly is directly related to the Joe Batt’s Pond Linear and may define a halo around significant mineralization. The results of this work show the potential of this property and indicate a need for further detailed exploration, including follow-up prospecting, trenching and ultimately drilling. Regional magnetics indicate a magnetic low that correlates with the location of the vein system on Gander Lake and is comparatively similar to the magnetic low that can be observed on the H-Pond-Pocket Pond mineralized Trend, thus a detailed property airborne magnetics survey may also be considered for future exploration. The most recent work along the JBP Trend has discovered several bonanza grade quartz boulders that contain abundant visible gold (up to 798.8g/t Au). These boulders are 2.7 km's along trend from the main H Pond and Pocket Pond showings. Most of these showings consisted of float and subcrop boulder containing visible gold, arseneopyrite,

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pyrite and sulphosalts. The majority of the mineralization was discovered on the north side of the Trans Canada Highway. Since the main discovery several high grade showings in outcrop and float have been discovered on the south side of the Trans Canada Highway. Visible gold was found in float on the shores of Gander Lake which is eleven kilometres along strike from H Pond. Numerous showings have been found just south of the Trans Canada Highway along this same trend. The H Pond, Pocket Pond Trend areas have been trenched, drilled and significant soil sampling programs have been emplaced over the property over the past few years. The main Target at The JBP Linear property is turbidite-hosted, mesothermal gold deposit. Highlights of exploration within the JBP Linear Trend

• Major mineralized system traced over 15 kilometres; surface samples up to 798 g/t gold.

• Significant gold drill intercepts at the H-Pond and Pocket Pond prospects with visible gold in 20 of the 54 drill holes.

• Strong similarities to the Bendigo-Ballarat Mining District in Australia - 22 million ounces of past gold production

• The JBP Linear property is located 15 kilometres northwest of the town of Gander in central Newfoundland. The property consists of 10 mineral licences (469 claims) for a total area of 11,725 hectares. Six of the ten mineral licenses were optioned from local prospectors and are subject to NSR agreements. Exploration for gold in the area prior to 2002 consisted mainly of grassroots exploration to the west of the JBP Linear property area, where sporadic exploration work was completed in the late 1980's through the 1990's. The property area is underlain by sedimentary rocks of the Davidsville Group, a thick sequence of north-northeast trending grey to black slate and siltstone with minor red slate and sandstone units. The sedimentary rocks have been variably folded and faulted and metamorphosed to lower greenschist facies. Significant gold-bearing quartz veins have been identified at the H-Pond Prospect and Pocket Ponds Prospect. These two areas, located about 2.2 kilometres apart are found along what appears to be a major mineralized gold system that has been traced over 15 kilometres. Paragon has completed a total of 9,880 metres of diamond drilling in 54 holes on the property. H-Pond Prospect - Thirty-two diamond drill holes (5,766 metres) have tested the H-Pond mineralized quartz veins over strike length of 800 metres and to a depth of 250 metres. Multiple, broad (up to 24 metre wide) gold-bearing zones containing on average 25% quartz vein material with individual veins reaching from <1 to 190 cm in thickness. The veining typically consists of variably stylolitic, partly vuggy quartz-iron carbonate veins and often contains visible gold. Associated sulphides consist of up to 15% porphyroblastic pyrite and arsenopyrite that occurs adjacent to the veining. Significant drill intercepts include:

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HP-04-01 : 0.75 g/t gold over 44.45 metres including 12.39 g/t gold over 0.50 metres; HP-04-03 : 11.70 g/t gold over 3.40 metres including 16.27 g/t gold over 2.40 metres; HP-05-09 : 2.08 g/t gold over 3.75 metres including 9.02 g/t gold over 0.80 metres; HP-05-11 : 5.47 g/t gold over 2.35 metres including 6.91 g/t gold over 1.85 metres; HP-05-15 : 3.40 g/t gold over 3.80 metres including 9.79 g/t gold over 1.15 metres; HP-06-29 : 2.41 g/t gold over 4.80 metres including 6.58 g/t gold over 1.00 metres; HP-06-35 : 6.15 g/t gold over 2.30 metres including 12.29 g/t gold over 1.05 metres. Pocket Pond Prospect - Fifteen drill holes (2,529 metres) have been completed at the Pocket Pond Prospect and the mineralization has been exposed in two surface trenches. Drilling has traced mineralized quartz veined zones over a strike length of 950 metres and to a depth of 250 metres. Alteration and mineralization is similar to that at H Pond with up to 10% combined pyrite-arsenopyrite in the quartz vein zones. Significant drill intercepts include: HP-04-07 : 6.63 g/t gold over 1.70 m including 25.23 g/t gold over 0.40 metres; HP-05-28 : 5.37 g/t gold over 1.55 m including 13.99 g/t gold over 0.40 metres; HP-07-39 : 1.89 g/t gold over 12.60 metres including 14.36 g/t gold over 0.50 metres; HP-08-44 : 12.43 g/t gold over 3.40 metres including 84.77 g/t gold over 0.50 metres; HP-08-48 : 11.11 g/t gold over 11.90 metres including 255.0 g/t gold over 0.50 metres. To-date, wide-spaced drilling (mainly 100 metres spacing) at Pocket Pond and H-Pond prospects has demonstrated excellent continuity of the quartz vein zones from hole to hole. At both prospects, the drilling has outlined a gold-bearing quartz vein zone over strike lengths of up to 950 metres and 800 metres, respectively and to a depth of up to 250 metres. Of particular note is the coarse-grained nature of the gold at the JBP Linear property. Visible gold is commonly observed in surface grab samples (quartz float) with assays up to 25 oz/t gold (798 g/t gold), and is also observed in 20 of the 54 drill holes completed to date. The quartz vein zones are typically enveloped by broader corridor of moderate to strong hydrothermal alteration that can be traced along strike. The zones remain open laterally and to depth at both prospects, and are separated by approximately 900 metres of strike length. It is interpreted that these two quartz vein zones form part of a 15 kilometre long linear trend with high gold potential extending to the northeast and southwest (the JBP Linear). The strike potential of this mineralized trend is evidenced by numerous gold bearing float occurrences, coincident gold soil anomalies and outcropping altered wallrock.

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Introduction

The property was staked in March of 2010. Licence 017432m consist of eight contiguous map staked claims. The ground was staked to cover prospective geology and the possible strike extension of the Joe Batts Linear trend (H Pond Trend). Numerous gold showings (The Knob, Bullet, Bowater, The Dome, H-Pond, Pocket Pond, Lachlan, The Mustang and recently discovered visible gold showing The Lakeside Vein on the property adjacent to lic. 017432m. The prospects have been found around the Gander Lake area properties over the past twenty years. A brief description of some of the closest gold showings and prospects follows. The Bullet prospect which is located 3.0km's to the northwest of the property is hosted by slightly graphitic, greyish-green shales and siltstone of the Davidsville Group. The gold mineralization comprises a narrow, quartz-carbonate vein set developed within a northeast-trending, steeply south dipping, dextral shear zone (Evans, 1991). The shear zone has a maximum width of 50 cm and an exposed strike length of 24 m. The shear dies out quickly towards the northeast. To the southwest the shear and quartz veining are offset approximately 1 m by a sinistral shear zone. Movement along this zone appears to have been coincident with quartz vein development as the vein cuts this shear and was offset by and folded into the plane of the shear. There appears to have been late movement on the shear which hosts the main quartz veins as these veins are broken and reoriented. The quartz veins are generally less then 15 cm thick and comprise milky-white quartz with disseminated pyrite, arsenopyrite, boulangerite and minor base metals. The gold occurs as specks and clusters of free gold. Channel and grab sample assay results from the Bullet include 11.9 g/t Au over 0.5 m, 43.2 g/t Au over 0.8 m, 456 g/t Au, 702 g/t Au, 28.7 g/t Au and 78.4 g/t (Gower and Tallman, 1989). Diamond-drill assays are presented below (data from Gower and Tallman, 1989). Hole # Interval (m) Au (ppb) GLN-88-04 13.0-17.0 870 13.0-15.5 1140 28.0-32.0 1134 29.0-30.0 4050 GLN-88-05 39.3-41.1 460 GLN-89-06 39.3-39.6 17300 42.7-44.6 460 46.0-48.0 4400 46.0-46.7 8970 The Knob prospect which is 3.0km's northwest of the property consists of mesothermal auriferous quartz veins hosted within a variably deformed northeast-trending shale and greywacke unit of the Davidsville Group (Collins, 1991; Evans, 1993). The greywacke is in fault contact with an unmineralized and visibly unaltered

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sequence of shale. The host rocks strike to the northeast, dip steeply to the northwest, and are overturned (Squires, 2005). The host rocks also form the structural footwall to the mineralized package. Faulting also appears to have offset the mineralized veins. Two types of quartz veins are present: 1) pyrite-arsenopyrite-rich veins that contain low values of gold, and 2) milky-white massive and smaller sheeted quartz veins that contain coarse free gold and relatively minor amounts of pyrite, chalcopyrite and a steel-grey mineral identified by Collins (1991) as boulangerite. Both vein types are shear-controlled and are hosted by structures that crosscut the greywacke at a high angle. The veins are typically less than 50 cm wide and exhibit pinch-and- swell textures. It is not known if or how the two types of veins are related. Extensional veins (tension-gash veins) are also developed within the greywacke within and adjacent to the main shear zones. Wallrock alteration around the milky-white veins comprises both silicification with disseminated pyrite and arsenopyrite, and rusty weathering, intensely deformed zones. The mineralization occurs as free gold in quartz veins, and is also associated with adjacent carbonate-altered and arsenopyrite-bearing sedimentary rocks that are given grades of up to approximately 5 g/t (D. Mullen, personal communication, 2004). Much extra trenching has been performed in recent years, and provides excellent exposure for determining vein morphology. Although veining occurs in all rock types, it is best developed in greywacke units, possibly due to the structurally more competent nature of these units (Squires, 2005). Selected channel sample assay results from The Knob prospect (data from Collins, 1991). Trench # Interval (m) Au (g/t) T-90-01 13.00 (sheared greywacke) 6.26 0.81 (quartz vein within 81.53 the sheared greywacke) T-90-01A 3 - 4 (sheared greywacke) 1.72 3 - 4 (sheared greywacke) 1.05 T-90-01B 2.78 (sheared greywacke) 12.08 0.60 (quartz vein within 631.34 sheared greywacke) Diamond drill assay results from The Knob prospect (data from Springer Resources Limited, Press Release, 1991). Hole # Interval (m) Au (oz/t) GLN-90-11 35.85-42.30 1.124 40.00-42.30 3.092 40.00-40.58 12.015 GLN-90-13 16.90-19.50 0.580 17.90-19.50 0.939

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The following is a summary of Diamond Drilling for 1993. Hole # Interval Assay True Width(m) Au g/t GLN-93-14 1.51 1.80 1.08 0.75 0.54 0.87 2.69 0.79 GLN-93-16 1.03 3.80 1.66 0.48 GLN-93-17 10.13 8.98 2.16 27.58 0.54 102.20 1.29 24.38 GLN-93-18 1.19 0.12 0.42 0.94 4.74 0.44 1.08 1.03 GLN-93-19 1.22 8.12 0.76 12.06 0.30 24.02 GLN-93-20 2.81 0.64 2.37 0.70 1.08 1.08 (Sheppard, 1993). The 1994 Phase III DDH Summary follows. Hole # True Width (m) Assay (Au g/t) GLN-94-21A 0.23 6.85 GLN-94-21B 1.62 0.85 GLN-94-22 0.27 1.93 GLN-94-23 0.61 0.84 0.23 0.76 GLN-94-24 0.84 0.69 0.68 0.86 0.80 0.78 GLN-94-25 0.38 0.76 GLN-94-26 1.06 0.63 (Sheppard, 1994). Spectacular gold grades have been recovered in recent years, e.g., 631 g/t over 0.6 m (Evans, 1996). The most recent work along the JBP Trend has discovered several bonanza grade quartz boulders that contain abundant visible gold (up to 798.8g/t Au). These boulders

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are 2.7 km's along trend from the main H Pond located 7.7 km's northeast from the property and the Pocket Pond showings which is located 4.5km's northeast along trend from the property. Most of these showings consisted of float and subcrop boulder containing visible gold, arseneopyrite, pyrite and sulphosalts. The majority of the mineralization was discovered on the north side of the Trans Canada Highway. Since the main discovery several high grade showings in outcrop and float have been discovered on the south side of the Trans Canada Highway. Visible gold was found in float on the shores of Gander Lake which is eleven kilometres along strike from H Pond. Numerous showings have been found just south of the Trans Canada Highway along this same trend. A drill program is still ongoing in this area, no results have been released. The H Pond, Pocket Pond Trend areas have been trenched, drilled and significant soil sampling programs have been emplaced over the property over the past few years. A reconnaissance drilling program (1,396 metres, 8 holes) was commenced on the H-Pond project in the late Summer of 2004, located 10 kilometres from the town of Gander, has led to the discovery of multiple, thick, extensively veined and altered, gold-bearing zones which are from 1.0 metres to 24.0 metres in thickness. Gold assays from the zones include multiple vein zones over a core length of 44.45 metres in hole HP-04-01 with 0.75 g/t gold, including 5.85 metres of 2.51 g/t and 1.1 metres of 8.08 g/t, HP-04-02 includes 2.83 g/t gold over 3.1 metres, HP-04-03 includes significant intervals of 16.23 g/t gold over 2.4 metres and 2.44 g/t gold over 1.35 metres, HP-04-04 includes 3.43 g/t gold over 6.3 metres that includes 12.64 g/t gold over 1.25 metres, HP-04-07 has significant zones of 4.40 g/t gold over 1.7 metres including 15.26 g/t gold over 0.4 metres. Veined and altered zones are interpreted to extend over a minimum distance of four kilometres based on diamond drilling, trenching, gold bearing float and gold-in-soil anomalies. Rubicon has considered H-Pond to represent a significant new gold discovery which merits additional drilling and exploration. In the Spring of 2005 Rubicon completed 20-holes, 3,552 metre drilling program and has intersected additional high-grade gold up to 11.85 g/t gold over 0.80 metres (including 22.18 g/t gold over 0.40m, HP-05-09), 10.43 g/t gold over 1.85m (including 26.53 g/t gold over 0.70m, HP-05-11) and 10.14 g/t gold over 1.15 metres (including 14.48 g/t over 0.50m, HP-05-15). The zone has been extended an additional 350 metres along strike by wide spaced drilling (50-100m step-outs), increasing its strike extent to 450 metres and to a vertical depth of 250 metres. Twelve of the twenty holes that have tested the H-Pond prospect contained visible gold. At Pocket Ponds, located 3 kilometres south of the H-Pond prospect, a single drill hole, HP-05-28, intersected a visible gold bearing quartz vein (5.27 g/t gold over 1.55m, including 13.90 g/t gold over 0.55m) that correlates with quartz veining exposed by surface trenching with grab samples up to 25.5 g/t Au. This hole cored two additional quartz vein zones, one of which contains 0.50 g/t gold over 3.2 metres and is 100m down dip from the HP-04-07 Pocket Ponds discovery intersection (6.63 g/t gold over 1.7m). The gold bearing quartz veining is hosted by broad, steeply northwest dipping zones characterized by strong sericite and iron carbonate altered meta-sedimentary rocks.

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The veined and altered zones are now interpreted to extend over a minimum distance of 13 kilometres based on diamond drilling, trenching, gold bearing float and gold-in-soil anomalies. They believe the new gold discoveries show many similarities to the Bendigo-Ballarat gold deposits in Australia which have produced over 15 million ounces of gold. The Lachlan Prospect is the closest documented mineral occurrence on the governments website, the Lachlan is located 1.6km's to the northeast along the Joe Batt's Pond Linear and is exposed in a series of trenches approximately 400 metres south of the Trans Canada Highway (Paragon Minerals website, 2007). Detailed mapping and channel sampling has outlined two sub-parallel, steep dipping, northeast striking, 2 to 10 metre wide, 40+ metre long multiple quartz veined zones carrying significant gold values of up to 8.5 g/t Au over 0.5 metres. Individual veins vary in width from 5 to 80 centimeters. Alteration of the folded, fine grained metasedimentary host rocks consists of iron carbonate spotting and sericite; similar to the other prospects described above (Paragon Minerals website, 2007).

Location and Access

The Gander Lake Property (lic.017432m), (Fig.1) is located south of the Trans Canada Highway on the North shore of Gander Lake in Central Newfoundland and the communities of Glenwood and Appleton. The eight claims are situated within NTS Map Sheet 2D/15. The property is approximately five km's southeast of the community of Appleton. Access to the properties can be gained via old logging roads. The logging roads exit on the south side of the Trans Canada Highway and pass through portions of the properties. ATV trails at the end of the logging roads lead to cabins on the edge of Gander Lake, these atv trails give excellent access to the southern portion of the claims along the shoreline of Gander Lake. Several branches and old roads will have to be taken to access the property. The ATV trails and old logging roads will take you through the numerous portions of the property.

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Physiography

Topography and drainage slope gently to the Gander River. The property is covered by mixed spruce, balsam fir and birch. Alders are prevalent in low wet areas. The area displays a gently rolling topography, sloping gradually to the northeast. Average elevation is 50 to 75 m with rounded hills giving less than 50 m relief to the area. Ridges and drainage patterns are generally to the northeast. The Lakeside property encompasses a forested area on a relatively flat topography with minor rolling hills and a low angle rise north from Gander Lake at 50 m to higher ground at 120 m. Several small ponds with a length less than 200 m and several small creeks occur on the property and flow south towards Gander Lake. Gander River is the largest river in Eastern Newfoundland and flows northeasterly into the Notre Dame Bay. Access is available from the TCH via pick-up truck or quad. Two areas of thin bog occur at the centre of the property and are less than 1 km2 in area. Hills in the area are covered with young spruce and planted pine growth and a covering of moss, lichen, tamarack, juniper, berries and shrubs. Glacial directions from outcrop striae indicate a generally north to northeast movement for ice. Underlying soils are a thin till veneer up to 1 meter thick or deeper peat layers under more boggy areas. Outcrop is minimal with less than 15 % of the property bedrock exposed (Batterson, 2001).

Property Description

The property is comprised of one mineral licence of which this report is based on (017432m). Table I – Property information

Licence # Licence Holder Issue

Date Report Date

Claims #

Required Expenditures

017432mM

Eddie Quinlan 03/25/10 05/25/11 8 $1,600.00

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Regional Exploration History

The asbestos occurrence was first reported by S. E. Jenness who mapped the area in 1952 for the Newfoundland Government. Newfoundland and Labrador Corp. Ltd. - NALCO prospected the area during 1953 and 54. Evaluation of the magnesite deposits was the objective of this work. In 1974 and 75 International Mogul, in a joint venture with Nalco, carried out an airborne EM survey, diamond drilling, mapping and prospecting over NALCO property containing the Gander River Ultramafic Belt and surrounding areas. R.F Blackwood, geologist with the Provincial Dept. of Mines and Energy mapped the area (2E/2) during the summer of 78. NFLD Map 7929 shows the results of his work. Noranda Exploration Co. Ltd. staked this property, C.B. 3413, in January, 1987. The Gander River Ultrabasic Belt was mapped and defined by Jenness (1954). The Newfoundland and Labrador Development Corp. Ltd. prospected the general area to evaluate magnesite deposits in 1953 and 1954. In 1973, International Mogul Ltd. optioned property from Nalco and the Reid Newfoundland Company Limited - Mines and Forests (Nfld.). The same year, the Gander - Ragged Harbour ultramafic belt was flown by Kenting Earth Sciences Ltd. for Mogul using the Canso in-phase/quadrature measuring E.M. system. The most interesting airborne systems were followed-up by ground geophysical surveys (magnetometer and EM), regional mapping, soil and sediment sampling, and trenching. This work was done in 1974 in a joint venture with Bethelehem Copper Corporation Ltd. Mogul drilled 12 holes the following year to test their best prospects (File #Nfld. 909). No other exploration is known of at this time. The most recent geological mapping in the area was carried out by R.F. Blackwood for the Provincial Department of Mines and Energy (Maps 7929 and 80198) in 1978 and 1979. Fee Simple Grant, Reid Lot 78, reverted to Crown Land on May 24, 1983. Ionex Ltd. recorded claim block 4583 on January 23, 1987 for Kidd Creek Mines Ltd. Kidd Creek was issued licence No. 2991, C.B. 4583 on Feb. 23, 1987. License 2991 originally comprised 48 claims on one claim block (C. B. 4583), with a February 23rd, 1988 anniversary date. License 2991 was reduced to a 20 claim block (C. B. 5872) prior to the first anniversary date. Durring the 1987 field season Kidd Creek Mines Ltd. Did work that consisted of regional till sampling and prospecting (Kohlsmith, 1988). From June to September 1989, Falconbridge did work consisting of a 1:5000 scale grid mapping, prospecting, litho geochemical sampling and VLF survey (Kohlsmith, 1989). From February to March and September to December 1990, Falconbridge did work on license #2991 consisting of geophysical surveys, geological mapping (trenched/stripped area), relogging all of the old International Mogul (1975) drill core, and diamond drilling (Butler, 1991a).

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From March to May 1991, Falconbridge did work consisting of 33 km of line cutting, with VLF-Mag, Max-Min II and Dipole-Dipole IP coverage, and 1515 m of diamond drilling (Licenses 2991, 4085). Approximately 5 km of dipole-dipole IP was conducted over license 3972 (Butler, 1991b). Prospecting was begun initially in the late fall of 1986. Rusty boulders with quartz veining, silicification, disseminated pyrite and arsenopyrite were located and traced to there source. Ground was staked and further prospecting took place in 1987, which identified areas to be trenched. Trenching uncovered several mineralized zones. Channel samples were sawed from bedrock to sample the zones. Approximately 1600 samples were collected from the B2 horizon. 54 km of picket line were cut and chained. Three geophysical surveys were run over the grid: IP, VLFEM, Magnetic (Graves, 1987). Noranda Exploration Company Limited discovered visible gold mineralization at the Bullet prospect in 1987 (Gower and Tallman, 1989). The prospect was trenched and tested with three diamond- drill holes. Subsequent work by Noranda in the fall of 1990 resulted in the discovery of spectacular quartz vein-hosted gold mineralization at the Knob prospect (Collins, 1991). Recent trenching has further uncovered the structurally complex vein system (Dean Sheppard, personal communication, 1992). Noranda Exploration Company Limited prospectors discovered the Bowater prospect in 1987. The company conducted detailed geological mapping, prospecting, trenching, soil geochemistry and diamond drilling which consisted of 3 holes totalling 194.4 m (Woldeabzghi, 1988). Licence # 4344 is now a Bristol Exploration Ltd. /Hemlo Gold Mines Inc. joint venture property which has been actively explored by Noranda Exploration Co. Ltd. since 1987. Gander River Minerals Inc. became interested in the property in early 1992 and subsequently entered into a six month agreement and an earn-in agreement with the joint venture partners. Upon approval from Norex in Corner Brook, the property was reduced from the original 88 claims to 36 during June of 1993 and the two previous licences (2821 and 3259) were grouped and a single licence issued. Between October 1992 and December 1993, Gander River Minerals carried out a program of trenching and diamond drilling which encompassed the initial six month commitment period and the first year of the earn-in agreement (Sheppard, 1993). During the period of January and February, 1994, Gander River Minerals drilled six additional diamond drill holes on The Knob prospect to extend the present strike and depth extent of the mineralized veining, thereby increasing the overall indicated tonnage of the prospect (Sheppard, 1994). Also during 1994 an IP geophysical survey was conducted over the Knob Prospect (Sheppard and Burton, 1994). After flow-through exploration funding dried up, the area lay idle until it reverted to the Crown in March, 1992. A ground staking rush resulted in a dispute over the claims staked, which was not resolved until four and one-half years later, in November, 1996, when Gander River Minerals was granted title to the property. No work was carried out

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by this company and the ground again reverted to the Crown in the spring of 1998. An eight claim-group was staked by the KriASK syndicate in October, 1998 and subsequent prospecting discoveries and data compilation resulted in the staking of a further 42 claims, for the present total of 50 claims covering 5km strike length along the Appleton Linear. Several significant high gold values have been discovered in soils in past years on the property. An initial program of line cutting, Geophysics (I.P.), soil sampling, and trenching is in progress to identify and test gold targets within the Appleton Linear Zone (United Carina Resources Corp.'s Web site, August 27, 1999). 10 ddh's totalling 550.2 m have been completed by the company on the Linear Group property covering the Dome, Road, and Lotto Showings (Press Release, United Carina Corp., Nov. 3, 1999). Gold mineralization was first discovered in the Jonathans Pond area by personnel from the Newfoundland Department of Mines and Energy (Blackwood, 1979; 1982). The area was staked by Westfield Minerals Limited in 1980 (Gagnon, 1981). The company conducted soil and stream sediment sampling, mapping, prospecting, trenching and carried out EM-16 surveys. The Jonathan's Pond area was subsequently staked by Noranda Exploration Company Limited in 1984 after a regional till sampling program outlined anomalous gold values (MacKenzie, 1985). The company conducted extensive exploration work consisting of geological mapping, geophysical and soil geochemical surveys trenching and diamond drilling. This work was hindered by extensive, thick overburden and limited exposure (McKenzie, 1985, Snow, 1988). High concentrations of gold grains occur within the tills throughout the Jonathan's Pond area (McKenzie, 1985; Snow, 1988). In 1988 Noranda Exploration Company Limited conducted an extensive overburden drilling program as an attempt to define the source of this gold. This project delineated at least two distinct glacial tills within the Jonathan's Pond area (Simpson, 1989). The oldest till comprises a westerly-derived compact, grey till which is overlain by a southerly-derived, brown sandy till. Simpson (1989) indicated that gold grains recovered from the older till were typically corroded and that some of the grains were weakly anomalous in silver. The younger till contained fresher grains which had anomalous silver concentrations. A number of target areas were identified, trenched and tested with five diamond-drill holes (Simpson, 1990). Results were described as not encouraging. The source of these grains has not been determined. Work was carried out by Kevin and Allan Keats and Peter Dimmell in the summer and fall on 1997. This work consisted of prospecting, geological mapping and limited till sampling and panning. Emphasis in the prospecting was placed on the general area of the Jonathan's Pond (Westfield) showing, an area of quartz breccia in black argillites carrying low gold values to the northwest and the area of highly anomalous, unexplained gold in till anomalies. Visible gold-bearing vein zones defined over a 450 m strike length - new zone defined at Pocket Ponds-

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H-Pond Project (Rubicon Minerals News Release January 17, 2005) The H-Pond prospect, located near Gander, Newfoundland, is characterized by multiple vein zones carrying gold over thicknesses from one to 24 metres. Significant intercepts from previous drilling include 16.23 g/t gold over 2.30 metres and 12.64 g/t gold over 1.25 metres. High-grade gold zones occur within extensively altered and veined sections e.g., 44.45 metres of 0.75 g/t gold, which indicates the presence of a large mineralized system. At Pocket Pond, located 3 kilometres south of the H-Pond prospect, a new vein zone has been exposed by trenching over a width of 15 metres and a strike length of 50 metres. Eighteen grab samples from the trenched area returned 1 sample with a value of 25.5 g/t gold, 6 samples greater than 5.0 g/t gold and 11 samples greater than 1.0 g/t gold. In addition, new surface sampling approximately six kilometres south of the H-Pond prospect has led to the discovery of mineralized vein systems documented in bedrock and float over a minimum 700 metre strike length. The extensive alteration zone associated with veining and mineralization is up to 100 metres wide with individual quartz veins up to 1.5 metres thick with visible gold noted in one location. Sampling to date (70 grabs and 36 channels) includes 38 samples greater than 1.0 g/t gold of which 19 samples are greater than 5.0 g/t gold with a maximum value of 56.9 g/t gold. The two best channel samples include 8.5 g/t and 6.8 g/t gold over 0.5 metres. These new discoveries are further indications that the H-Pond system is extensively developed on Rubicon claims. Rubicon controls approximately 19.7 kilometres of strike potential in this new discovery area. Previous drilling at the H-Pond prospect is characterized by multiple quartz vein zones carrying gold over thicknesses from 1 to 24 metres (see news release dated October 5, 2004). Previous drilling at Pocket Ponds (hole HP-04-07) intersected mineralized quartz veins averaging 6.63 g/t Au over 1.7 metres, including 25.25 g/t over 0.4 metres. H-Pond & Pocket Ponds Prospects (News Release April 13 2005, Rubicon Minerals) A recently completed 20-hole, 3,552 metre drilling program by Rubicon has intersected additional high-grade gold up to 11.85 g/t gold over 0.80 metres (including 22.18 g/t gold over 0.40m, HP-05-09), 10.43 g/t gold over 1.85m (including 26.53 g/t gold over 0.70m, HP-05-11) and 10.14 g/t gold over 1.15 metres (including 14.48 g/t over 0.50m, HP-05-15). The zone has been extended an additional 350 metres along strike by wide spaced drilling (50-100m step-outs), increasing its strike extent to 450 metres and to a vertical depth of 250 metres. Twelve of the twenty holes that have tested the H-Pond prospect contained visible gold. At Pocket Ponds, located 3 kilometres south of the H-Pond prospect, a single drill hole, HP-05-28, intersected a visible gold bearing quartz vein (5.27 g/t gold over 1.55m, including 13.90 g/t gold over 0.55m) that correlates with quartz veining exposed by surface trenching (up to 25.5 g/t in grabs, see news release dated January 17, 2005). This hole cored two additional quartz vein zones, one of which contains 0.50 g/t gold over 3.2 metres and is 100m down dip from the HP-04-07 Pocket Ponds discovery intersection (6.63 g/t gold over 1.7m).

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The gold bearing quartz veining is hosted by broad, steeply northwest dipping zones characterized by strong sericite and iron carbonate altered metasedimentary rocks. The veined and altered zones are now interpreted to extend over a minimum distance of 13 kilometres based on diamond drilling, trenching, gold bearing float and gold-in-soil anomalies (plans and sections to be posted at www.rubiconminerals.com). H-Pond Project (Rubicon Minerals News Release October 05, 2004) A recently completed 8-hole reconnaissance drilling program (1,396 metres) by Rubicon on its 100% controlled H-Pond project, located 10 kilometres from the town of Gander, has led to the discovery of multiple, thick, extensively veined and altered, gold-bearing zones which are from 1.0 metres to 24.0 metres in thickness (core length). Gold assays from the zones include multiple vein zones over a core length of 44.45 metres in hole HP-04-01 with 0.75 g/t gold, including 5.85 metres of 2.51 g/t and 1.1 metres of 8.08 g/t, HP-04-02 includes 2.83 g/t gold over 3.1 metres, HP-04-03 includes significant intervals of 16.23 g/t gold over 2.4 metres and 2.44 g/t gold over 1.35 metres, HP-04-04 includes 3.43 g/t gold over 6.3 metres that includes 12.64 g/t gold over 1.25 metres, HP-04-07 has significant zones of 4.40 g/t gold over 1.7 metres including 15.26 g/t gold over 0.4 metres. Veined and altered zones are interpreted to extend over a minimum distance of four kilometres based on diamond drilling, trenching, gold bearing float and gold-in-soil anomalies (graphics to be posted at www.rubiconminerals.com). Rubicon considers H-Pond to represent a significant new gold discovery which merits additional drilling and exploration. February 12, 2007 Paragon Minerals Corporation (PGR:TSX-V) is pleased to announce the results of a recently completed diamond drill program (nine holes, 2,107 metres) on its 100% owned JBP Linear property located 15 kilometres northwest of Gander, Newfoundland. Previous drilling on the property has identified a significant, gold-bearing vein system at the H-Pond and Pocket Ponds prospects. Significant results from previous drilling (core length) include 11.70 g/t Au over 3.40 metres (HP-04-03); 8.73 g/t Au over 2.10 metres (HP-04-04); 9.79 g/t Au over 1.15 metres (HP-05-15) and 1.02 g/t Au over 44.45 metres (HP-04-01). The current drill program was designed to further define the H-Pond Zone and to test a new area where a high-grade quartz float occurrence assaying up to 798.87 g/t gold (25.68 oz/t gold) was discovered in December 2005. H-Pond Drilling Paragon completed seven drill holes (1,439 metres) on the H-Pond Zone and successfully extended the known gold mineralization 250 metres to the south. The mineralization at H-Pond, which is interpreted to have a steep westerly plunge, now extends over a 700 metre strike length and to a depth of 250 metres. The zone is open in all directions. All seven holes intersected multiple, mineralized quartz veins over widths up to 18.35 metres (HP-06-34) that are enveloped by intense sericite, chlorite and iron

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carbonate alteration. Visible gold was recognized in four of the drill holes. Significant results (core length) include: HP06-29: 6.58 g/t gold over 1.00 metre within a broader zone of 2.41 g/t gold over 4.80 metres; HP06-30: 1.12 g/t gold over 1.00 metres within a broader zone of 0.44 g/t gold over 5.00 metres; HP06-32: 6.63 g/t gold over 0.60 metres within a broader zone of 0.96 g/t gold over 9.45 metres; HP06-33: 2.73 g/t gold over 0.50 metres; HP06-34: 6.43 g/t gold over 0.4 metres within a broader zone 0.79 g/t gold over 10.00 metres; and HP06-35: 12.29 g/t gold over 1.05 metres within a broader zone of 6.15 g/t gold over 2.30 metres New Target Areas Two reconnaissance drill holes (HP07-36, HP07-37) were completed on two target areas located 2.5 and 0.8 kilometres northeast and on trend with the H-Pond Prospect. Drill hole HP06-36 (303 metres), located 2.5 kilometres northeast of the H-Pond, targeted the area of the 2005 high-grade gold float discovery. The target area is marked by intensely iron carbonate and sericite-altered sediments exposed by trenching in 2006 and a coincident, broad (75 metre) airborne geophysical resistivity low. Drilling intersected a robust, sericite-carbonate altered zone over 41.5 metres that contained a 6.1 metre wide pyrite-arsenopyrite-bearing quartz vein zone. Assay results of the vein zone include 1.15 g/t gold over 0.30 metres. The source of the high-grade float remains unexplained, but is interpreted to be associated with the robust alteration and veining intersected in drilling. HP06-37 (365 metres) was collared 800 metres north and on trend with the H-Pond prospect. The drill hole targeted a distinct airborne geophysical resistivity low, coincident with iron-carbonate altered sediments and gold soil geochemical anomalies. Drilling successfully intersected broad zones of iron carbonate altered sediment that contain up to 15.5 metre wide quartz-veined zones. No significant gold assays were encountered. Drilling at the H-Pond Zone continues to return encouraging, economically significant

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intercepts that are linked by extensive and robust iron carbonate and sericite alteration systems over a minimum strike length of 5.3 kilometres from the Pocket Pond prospect in the south to the high-grade gold float prospect to the north. Other gold showings to the south of Pocket Pond extend the gold system another 5.7 kilometres to the south for a total strike length of 11.8 kilometres. The higher-grade gold drill intercepts at H-Pond are typically contained within broader, quartz-veined zones that also carry gold mineralization. September 13, 2007 - Second parallel gold trend outlined by geophysical survey - Paragon Minerals Corporation (TSX.V-PGR) is pleased to announce that the Company has commenced a 1500-metre diamond drill program on the Company's 100%-owned JBP Linear Project located near Gander, Newfoundland. The JBP Linear property represents an emerging gold belt in central Newfoundland with previous drill intercepts of 11.70 g/t gold over 3.40 metres (HP-04-03); 8.73 g/t gold over 2.10 metres (HP-04-04); 9.79 g/t gold over 1.15 metres (HP-05-15) and 1.02 g/t gold over 44.45 metres (HP-04-01) and quartz float surface samples of up to 768 g/t gold. Exploration work completed to date on the JBP Linear property has clearly established the association of gold mineralization at the H-Pond Prospect with a distinct Induced Polarization (IP) geophysical signature. Results from a previous IP orientation survey indicate that subtle IP chargeability highs can be very effective in locating gold mineralization within distinct IP resistivity lows, the latter marking the surrounding carbonate-sericite alteration to the mineralization. In July, the Company completed an IP survey to better define drill targets in the area between the H-Pond and Pocket Ponds Prospects (located three kilometres apart). Results of the survey indicate a favourable IP geophysical trend between the two gold prospects and a new parallel trend, the West Pocket Pond Linear, located approximately 500 metres to the west of the H-Pond Linear trend. Prospecting along the West Pocket Pond Linear trend has returned quartz float grab samples of up to 252 g/t gold. The proposed drill program is targeting the highest priority targets along these two trends December 20, 2007 Paragon Minerals Corporation (PGR.TSX-V) JBP Linear Project Paragon completed three drill holes (424.0 metres) that targeted a geophysical IP trend with coincident anomalous gold-bearing soil and quartz vein float samples in the Pocket Pond East area. All three drill holes intersected a zone of gold-bearing quartz vein mineralization located 215 metres north and along strike of the previous drilling (3 holes) at the Pocket Pond East prospect. The most significant intersection was in drill hole HP07-39 where multiple, near surface quartz veins containing visible gold were

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intersected over a 12.6 metre interval. The northern extension to the Pocket Pond East prospect remains open along strike and to depth with multiple, untested targets along the geophysical IP trend. A fourth drill hole (HP07-41, 265.5 metres) located 500 metres to the west, in the Pocket Pond West area, intersect minor quartz vein zones. Significant gold assay results include:

Drill hole

Section From (m)

To (m) Interval (m)* Gold (g/t) **

HP07-38

11100N 56.35 59.70 3.35 1.03

including 59.10 59.70 0.60 3.58

HP07-39

11216N 22.80 35.40 12.60 1.89

including 22.80 26.00 3.20 3.84

22.80 23.45 0.65 5.62

25.50 26.00 0.50 14.36

34.40 34.90 0.50 5.14

HP07-40

11300N 74.90 76.40 1.50 5.30

including 74.90 75.40 0.50 6.10

75.90 76.40 0.50 7.99 May 7, 2008 - 255 g/t gold (7.4 oz/t gold) intersected over 0.5 metres - Paragon Minerals Corporation ("Paragon", PGR.TSX-V) and partner Sprott Resource Corp. ("Sprott", SCP.TSX) are pleased to announce that they have completed the first 2,135 metres of a planned 2,750 metre drill program on the JBP Linear property and Appleton Linear property, collectively the "JBP-Appleton Linear Project". The contiguous properties are located approximately 15 kilometres northwest of Gander, Newfoundland. Drilling is scheduled to resume in late May after the spring thaw. As part of this first drill program, thirteen drill holes were completed on the JBP Linear

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property. Drilling was aimed at testing a favourable IP geophysical trend that extends between the H-Pond and Pocket Pond gold prospects (located 3 kilometres apart) and a parallel IP geophysical trend (West Pocket Pond Trend) located 500 metres to the west. Drilling at the Pocket Pond gold prospect (8 holes, 1,323.7 metres) further outlined a significant gold-bearing quartz zone that now extends over a 950 metres strike length. The multiple quartz vein zones, measuring up to 19.5 metres in thickness are enveloped within a broader zone of moderate to intense sericite-carbonate alteration. The Pocket Pond zone is open along strike and to depth and is interpreted to be in the same structural/alteration corridor as H-Pond gold prospect which has a 700-metre strike length. Significant assays from the Pocket Pond zone include:

• 1.89 g/t gold over 12.6 metres including 14.36 g/t gold over 0.50 metres (HP07-39) • 12.43 g/t gold over 3.4 metres including 84.77 g/t gold over 0.50 metres

(HP08-44) • 11.11 g/t gold over 11.90 metres including 255.0 g/t gold over 0.50 metres

(HP08-48) (Note: True thickness interpreted to be 90-100% of core length; HP07-39 previously reported) "The recent drilling continues to demonstrate the robust nature of this gold-bearing quartz vein system on the JBP Linear property, particularly at the Pocket Pond gold prospect. The new drilling has extended this gold prospect significantly and we are seeing some local zones of high-grade gold mineralization along this trend" said Michael Vande Guchte, President and CEO of Paragon. "Given the coarse and high grade nature of the gold in these types of systems we need to expose these vein zones at surface and collect larger samples to better determine the gold distribution". Two drill holes (351.6 metres) tested the West Pocket Pond Trend where prospecting has returned quartz float grab samples of up to 252.0 g/t gold. The two drillholes intersect significant quartz vein zones measuring up to 10 metres in thickness over broad intervals up to 90 metres wide. No significant gold assays were reported. Paragon and partner Sprott will review the result of the drilling at the JBP Linear property and prepare plans for continued exploration on the property. Drilling will resume later this month on the adjacent Appleton Linear property to target the extension and down-plunge potential of four known gold prospects on the property. Historical drilling at these prospects intersected high-grade, gold--bearing quartz vein systems with significant gold intercepts of 27.25 g/t gold over 1.10 metres, 18.62 g/t gold over 8.60 metres, 21.25 g/t gold over 2.70 metres and 16.30 g/t gold over 2.3 metres (core length). The previous drilling tested the mineralization over short strike lengths and shallow depths and remains open in all directions.

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December 12, 2008 Paragon Minerals Corporation ("Paragon"; PGR.TSX-V) reports that Sprott Resource Corp. ("Sprott"; SCP.TSX) has notified the company that it has elected to withdraw from the exploration agreement covering the JBP-Appleton Linear Gold Project in central Newfoundland as it no longer fits their corporate strategy. The JBP Linear property and Appleton Linear property will revert 100% back to Paragon. The 2008 exploration program funded by Sprott on the JBP Linear property further extended the Pocket Pond goldbearing quartz vein system over a strike length of 950 metres. Intersections include 12.43 g/t gold over 3.4 metres including 84.77 g/t gold over 0.50 metres and 11.11 g/t gold over 11.90 metres including 255.0 g/t gold over 0.50 metres (see news release dated May 7, 2008). The vein system remains open in all directions. Drilling at the Appleton Linear property (6 holes, 625 metres) extended the vein system at three of the gold prospects tested. The most notable at the Keats-Baseline gold showing where drilling extended the gold-bearing quartz vein zone over a 280 metres strike length (see the company website for additional details).

Previous Property Exploration 2002: Rubicon personnel discovered a gold-bearing angular quartz float measuring 6”x 4”x 2” with a fingernail-size flake of coarse gold. The float is located just to the north of the vein system that is exposed on Gander Lake. Abundant gold flakes were panned from the sediment overlying the vein system on the edge of Gander Lake. A total of twenty one rock samples were collected and analyzed for gold, 11 of these returned values greater than 5 ppb Au. The highest value was 1.67 g/t Au (sample # 45775). 2003: During the field season 21 soil samples were collected along a traverse across the property with sample intervals approximately 50 meters apart. Three of these samples assayed >5 ppb Au, the highest value was 210 ppb Au from sample RB221. An additional 27 rock samples were collected and 11 of these samples assayed above background, with the greatest value returned from quartz float with 2.7 g/t Au (RNF14702). Work conducted from March to December 2005 on the reporting licence has included prospecting, rock and soil sampling. A total of 37 rock samples of mineralized quartz float and outcrop were collected during the previous field season (see Figure 4). Of the total, 20 samples were elevated above background (5 ppb Au) for gold, five samples assayed over 1 g/t Au. These samples included two float samples mineralized with 10% arsenopyrite, sample

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RNF13984 (1.7 g/t Au) and RNF13985 (1.4 g/t Au); and three outcrop grabs, sample RNF39006 from Uncle Al’s Showing with 5-10% pyrite assayed 5.9 g/t Au, and two other samples (RNF39009 and RNF39011) both with 2-3% pyrite returned gold values of 7.9 g/t and 1.0 g/t Au respectively. A B-horizon soil recce grid was completed to ensure coverage of the entire property by completing eight sample lines orientated 300-120 and spaced 200 meters apart (Figure 5). This orientation was chosen to perpendicularly intersect the Joe Batt’s Pond Linear, a regional structure that is closely associated with gold mineralization. One line with the same orientation cuts the northeast corner of the licence and is a continuation of a grid on licence 10966M. In total 346 soil samples were collected, of these 12 assayed greater than the background gold value of 5 ppb, and four assayed greater than 50 ppb. Samples SNF62937, SNF62124, SNF62068 and SNF62276 returned values of 87, 75, 73 and 54 ppb Au respectively. A pattern to the mineralization is not visually obvious, however a plot of the arsenic values (Figure 6) shows a distinct cluster of elevated samples creating an anomaly up to 200 meters wide and 1000 meters long orientated approximately 30-210. This anomaly is directly related to the Joe Batt’s Pond Linear and may define a halo around significant mineralization. The presence of a wide gold bearing quartz vein system that is well exposed only along Gander Lake, coarse gold discovered in angular float and outcrop samples assaying up to 7.9g/t Au RNF39009, combined with a soil sample survey with elevated gold and arsenic values along the Joe Batts Pond Linear all strongly support the need for a detailed exploration program In 2002 Spruce Ridge Resources acquired twenty nine contiguous claims covering what is now a portion of the Lakeside Property. The current exploration program was designed as a grass-roots preliminary review of the property to ascertain the occurrence of gold in quartz veins. During a nine day field program, fifty seven soils and nine rock samples were collected. Areas of outcrop that existed on the property and accessible from existing access roads and along traverses were evaluated for gold in quartz vein mineralization. A total of sixty six samples were collected. of these samples nine were grab samples from quartz veins and fifty seven were soil samples. The results from the initial sampling activities identified some anomalous values for gold. These samples are grab in nature and do not indicate the full extent of possible gold mineralization of the Pine Grove property. Of the nine rock samples collected, only two of the nine grab samples assayed over 30ppb with the highest value recorded at 136ppb (sample 11515) or roughly 0.14 gm/tonne followed by 63 ppb (sample 8695). The remaining samples assayed 5 to 21 ppb. In soils only two of the fifty seven assayed over 5ppb with values of 17 (sample 8661) and 46 ppb (sample 8666). A total of 41 rock samples were collected. The property was not completely prospected or sampled during the second year of activities. Of the rock samples collected 10 of the 41 assayed above 13ppb with the highest recorded at 5395 ppb (sample 51608)

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followed by 1375 ppb (sample 51607. The remaining 5ppb to 148ppb. In 2005/2006 the work program consisted mainly of trenching, five exploratory trenches were planned and permitted for. Only three of the trenches were completed due to weather conditions. Trench #1 had a total of 32 grab samples taken from zones of altered and sheared greywacke with quartz stringers up to 15cm wide. The minerals present were pyrite, trace chalcopyrite and trace galena. The highest assays from these samples were sample # 65100 (108 ppb Au, 894 ppm As) and sample # 65101 (169 ppb Au and 1005ppm As). Trench #2 encountered 2.5 meter wide quartz breccia zone with pyrite and arsenic pyrite. Due to the amounts of snow only three grab samples were taken with no significant gold values encountered. Trench # 3 was trenched 150 meters to the north of trench #2 in hope of intersecting the same quartz breccia zone. The zone was intersected again only three grab samples were taken due to the amount of snow. The highest value from these samples was sample # 65074 whcih ran 1216ppb gold (1.2g/t Au). The last two trenches proposed were not dug due to large amounts of snow.

Newfoundland Geology The island of Newfoundland lies at the north-eastern edge of the Appalachian Orogen. Newfoundland is divided into three major tectonic-stratigraphic subdivisions: the Humber Zone, Central Mobile Belt and the Avalon Zone (Williams, 1978). The Humber Zone, underlying the north-western part of the island is separated from the south-eastern Avalon Zone by the Central Mobile Belt (Fig.2). The Humber Zone, with it’s Precambrian crystalline basement of late Grenvillian gneisses and plutonic rocks is overlain with Palaeozoic (Eocambrian to Ordovician )shelf facies clastic and carbonate rock sequences (Ermer, P. 1986 ). The Avalon Zone consists of a Precambrian basement of late Hadrynian meta-volcanic, meta-sedimentary and plutonic rock overlain by early Palaeozoic (Eocambrian to Ordovician) shallow marine sedimentary strata (Williams, H. 1972). The Central Mobile Belt records the formation, development and later destruction of the early Paleozoic ocean Impetus (Harland and Gayer, 1972). The Central Mobile belt is divided into the Dunnage Zone and the Gander Zone and consists of island/back-arc volcanic, sedimentary, amphibolites and plutonic rocks ranging in age from early Ordovician to Jurassic. The pre-Silurian rocks of this zone record the intra-oceanic events of island arc and back arc basins. Two geological sub zones, the Notre Dame and Exploits make up this zone. They are separated by a large terrain boundary, (The Red

21

Indian Line) with the Notre Dame Sub zone to the west and the Exploits to the east. The Exploits sub zone represents remnants of the southeast flank of the Iapetus Ocean and is in contact and in part overlies the continentally derived sedimentary rocks of the Gander Zone. The sedimentary rocks of the Gander Zone are said to have been deposited at or near the eastern continental margin of the Iapetus Ocean (Colman - Sadd, 1980).

Regional Geology The reporting licence is situated in the Dunnage tectonostratigraphic zone of the Newfoundland Appalachians (Figure 2), approximately nine kilometres west of the Grub Line. Rocks of the Dunnage Zone consist of volcanic, volcaniclastic and sedimentary rocks of island-arc and back-arc affinity interpreted to represent vestiges of the Iapetus Ocean (Williams et al., 1988). Evolution of the Dunnage is divided into pre to synaccretionary and post-accretionary phases (Swinden, 1990). The initial Cambrian to Mid-Ordovician pre to syn-accretionary phase is marked by a periods of volcanism and sedimentation in island-arc and back-arc basins. The syn-accretionary phase (initial closure of Iapetus Ocean) resulted in the structural emplacement of Notre Dame subzone rocks over the continent of Laurentia (Taconic Orogeny, Stevens 1970) and the Exploits subzone rocks over the Gondwana continental margin (Penobscot Orogeny, Colman-Sadd et al., 1992). Continued closure of Iapetus during the Late Ordovician to Early Silurian corresponds to a period of sedimentation in fault bounded basins (Dean, 1978; Kean et al., 1981). Post-accretion activation and reactivation of large strike-slip faults led to deposition of Silurian fluviatile sedimentary and terrestrial volcanic rocks (Szybinski et al., 1990; Coyle and Strong, 1987). Siluro-Devonian deformation (Salinic orogeny) resulted in crustal thickening that caused regional greenschist and amphibolite grade metamorphism and crustal melting that resulted in widespread plutonism (Dean, 1978; Dallmeyer et al., 1983). Subsequent, possibly Alleghenian, Carboniferous faulting produced shallow pull-apart basins in which continental and shallow water sediments were deposited (Dean, 1978, Kean et al., 1981). The area is underlain with the Middle Ordovician aged Davidsville Group a portion of the Botwood Zone. The Botwood Zone contains two groups, the Davidsville and Botwood Groups which have recently been the target for gold exploration. The Botwood Zone is non-conformably overlying ultramafic rocks of the Gander River Ultramafic Belt (The Grub Line) which is a three to four kilometre structural divide between two major Tectonostratigraphic zones. The Botwood and Gander Zones. This structure is interpreted to be a low to high angle west dipping fault that trends approximately north northeast through the Gander lake area. The Davidsville Group represents the ancient south-eastern margin of the Appalachian Orogen (after Blackwood, 1983). Regional deformation, metamorphism and

22

reactivation of major fault systems are identified by a northeast trending, penetrative cleavage that is usually axial planar to isoclinal folds of underlying metasediments. The sinuous nature of the Gander Lake suggests that the regional deformation may assist with the development of dilation zones where gold in quartz veining may exists.

Property Geology The property lies wholly within Davidsville Group turbiditic sediments including intervals of slate, siltstone and sandstone-greywacke that are interpreted to conformably overlie and be imbricated with the Gander River Complex (Figure 3). Where exposed, the rocks are thin to medium bedded with occasional thick bedded coarser massive beds. The best exposures on the property occur along the north shore of Gander Lake. Upright, north plunging folds are evident in outcrop. A major quartz vein and stockwork system appears to be generally subparallel to the north-northeast striking and west dipping schistosity. Strong carbonate and sericite alteration is intimately associated with parts of the quartz vein system. Arsenopyrite-pyrite occurs in the veins and within the altered host rocks to the veins. Minor sphalerite and galena was also noted. Quartz veining and gold mineralization typically occurs within milky white massive veins with minor to massive mineralization. Vein structures can be described as shear controlled veins that cut across greywackes at a relatively high angle. Veins tend to pinch and swell and locally are tension gashed adjacent to small shear zones. Locally quartz veins appear to be brecciated and suggest multi episode fluid flow. Typically these veins are less than 15cm wide but, can be seen up to 1m wide in outcrops along the lake shore. Alteration of the host rocks typically suggest silicification, carbonatization and spotted iron oxide halos.

Current Program and Results

Licence no. 017432m was visited several times during 2010. A total of twelve samples were collected during the visits to the property. All samples were analyzed for gold and an 30 ICP element package. All samples were from subcrop and localized float. Six of the rock samples were below the detection limit for gold with slightly anomalous

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arsenic values. The other six samples were above the detection limit for gold but, all were >1000ppb Au. The best results were 761ppb Au, 718 ppb Au and 304 ppb Au, anomalous arsenic was detected in six of the samples. There is no real correlation with the gold and arsenic in the rocks sampled. The samples were collected from subcrop boulders along a defined boulder trend, which correlates with the H-Pond Trend to the northeast. The samples consisted of mainly quartz with minor fragments of altered sediment, minor fragments contained identical carbonate (spotty) alterations has the mineralization seen in drill core and on surface in the H-Pond Trend property to the northeast. Although results were relatively low, the results confirmed that there is gold in the quartz boulder trend. This trend will have to be prospected from the northeast and to the southwest within the property. .

Conclusion and Recommendations:

The most recent work along the JBP Trend has discovered several bonanza grade quartz boulders that contain abundant visible gold (up to 798.8g/t Au). These boulders are 2.7 km's along trend from the main H Pond and Pocket Pond showings. Most of these showings consisted of float and subcrop boulder containing visible gold, arseneopyrite, pyrite and sulphosalts. The majority of the mineralization was discovered on the north side of the Trans Canada Highway. Since the main discovery several high grade showings in outcrop and float have been discovered on the south side of the Trans Canada Highway. Visible gold was found in float on the shores of Gander Lake which is eleven kilometres along strike from H Pond. Numerous showings have been found just south of the Trans Canada Highway along this same trend. Although results were relatively low for the Lakeside property (017432m). A high percentage of the samples collected were above the detection limit for gold. These samples were collected along a quartz boulder trend, which aligns with the H-Pond Trend to the northeast. The initial discovery of the H-Pond trend consisted of quartz boulders mineralized with arseneopyrite, pyrite and sulphosalts, then visible gold was discovered within these boulders. Since the initial discovery numerous boulders have been found containing abundant coarse visible gold assaying over 23 oz/ton Au. Trenching has exposed some of the mineralization in bedrock within the trend, the veins carry abundant visible gold in bedrock. Drilling has also been ongoing within the trend and has been successful in defining the trend. The trend is located in a major mineralized gold system that has been traced for over fifthteen kilometres. Parallel mineralized trends have also been outlined along this system.

24

The parallel trends have been somewhat outlined within the Lakeside properties (015472m, 015473m, 015574m & 017432m) to date, high grade mineralization has been discovered within licence. 015472m (up to 30.0g/t Au, Quinlan Prospecting Inc sampling) and 017432m (visible gold in float and samples from outcrop up to 7.9g/t Au Rubicon Minerals Corp sampling). Along with the high grade (visible gold) discovered in outcrop on the edge of the lake and the high grade mineralization (7.9g/t Au in outcrop and visible gold float) discovered within the property. The Lakeside properties have an excellent potential for the discovery of other gold showings in outcrop, due to the number of known anomalous gold samples that were collected within the property and with the previous exploration and drill programs within the Joe Batt's Pond Linear Property (H Pond Trend) by Paragon Minerals (spin off company from Rubicon Minerals) discovering more mineralization along strike in both directions, further exploration is highly recommended for this property. It is recommended that all anomalous gold & arsenic rock sample areas be revisited and thoroughly prospected, The areas with anomalous gold and arsenic soils that were collected by Rubicon Minerals personnel will have to be prospected. Soil sampling is recommended in the areas outside of the soil sampling program that was done by Rubicon Minerals where any anomalous gold and or arsenic has been detected in float. If any further gold or arsenic mineralization is found, these areas will have to be further investigated by mechanical trenching.

25

References:

Blackwood, R F 1979: Gander River project. In Preliminary project reports for 1979. Mineral Development Division, Department of Mines and Energy, Government of Newfoundland and Labrador Report, pages 13-16. [GSB# NFLD/1025] Blackwood, R F 1979: Geology of the Gander River area [2E/2], Newfoundland. In Report of Activities for 1978. Mineral Development Division, Department of Mines and Energy, Government of Newfoundland and Labrador Report 79-01, pages 38-42. [GSB# NFLD/0416] Blackwood, R.F. 1982: Geology of the Gander Lake (2D/15) and Gander River (2E/2) area, Newfoundland Department of Mines and Energy, Mineral development Division, Report 82-4, 56 pages. Blackwood, R F and Gibbons, R V 1982: Geology of the Gander Lake [2D/15] and Gander River [2E/2] area. Mineral Development Division, Department of Mines and Energy, Government of Newfoundland and Labrador Report 82-04, 63 pages. [GSB# NFLD/1312] Butler, D J 1991: First and fifth year assessment report on geological, geochemical and geophysical exploration for the Gander Project for licence 2991 on claim block 5872, licence 3972 on claim block 7295 and licence 4085 on claim blocks 7430-7431 in the Twin Ponds area, north-central Newfoundland. Falconbridge Limited Unpublished report, 130 pages. [GSB#002D/15/0263] Collins, C J 1991: Fourth and fifth year assessment report on geological, geochemical, trenching and diamond drilling exploration for the Glenwood Project for licence 2821 on claim block 4655 and licence 3259 on claim block 3775 in the Gander River and Gander River Outflow areas, Newfoundland. Springer Resources Unpublished report, 168 pages. [GSB# 002D/15/0256 Colman-Sadd, S.P, 1980: Geology of south central Newfoundland and evolution of the eastern margin of Iapetus: American Journal of Sci. Volume 280, p. 991 - 1017.

26

Colman-Sadd, S.P. and Crisby-Whittle, L.V.J. 2001: Partial bedrock geology dataset for the island of Newfoundland, Open file NFLD/2616, version 3.0 (CD-ROM). Colman-Sadd, S P, Dunning, G R and Dec, T 1992: Dunnage-Gander relationships and Ordovician Orogeny in central Newfoundland: a sediment provenance and U/Pb age study. American Journal of Science, vol. 292, 1992, pages 317-355. Coyle, M. and Strong, D.F. 1987: Geology of the Springdale Group: a newly recognized Silurian epicontinentaltype caldera in Newfoundland. Canadian Journal of Earth Sciences, Volume 24, p. 1135-1148. Dallmeyer, R.D., Kean, B.F., Odom, A.L., and Jayasinghe, N.R., 1983: Age and contact-metamorphic effects of the Overflow Pond Granite: an undeformed pluton in the Dunnage Zone of the Newfoundland Appalachians. Canadian Journal of Earth Sciences, Volume 20, p. 1639-1645. 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 Mines and Energy, Geological Survey, Open File NFLD/2687, version 1.0. Dean, P.L., 1978: The volcanic stratigraphy and metallogeny of Notre Dame Bay. Memorial University of Newfoundland, St. John’s Newfoundland, Geology Report 7, 204 pages. Ermer, P., 1986: Geology of the Long Range Inlier in the Sandy Lake map area: In Current Research, Part B: Geol. Sur. Can., Paper 86-1B, p- 19-29 Evans, D T W 1991: Metallogenic study of gold mineralization in the eastern Dunnage Zone, central Newfoundland. In Report of Activities 1991. Geological Survey Branch, Department of Mines and Energy, Government of Newfoundland and Labrador In Report of Activities, pages 85-87. [GSB# NFLD/2489]

Gagnon, J 1981: Report on geological, geochemical and geophysical exploration for licence 1534 and 1638-1648 on the Jonathans Pond claims in the Gander area, Newfoundland. Atlantic Analytical Services Limited and Westfield Minerals Limited Unpublished report [GSB# 002E/02/0410]

27

Graves, G 1987: First year assessment report on prospecting, geochemical, geophysical and trenching exploration for licence 2897 on claim blocks 4515, 4517 and 4520 and licence 2917 on claim blocks 4553-4554 in the Gander River Outflow and Gander Lake areas, Newfoundland. Noranda Exploration Company Limited Unpublished report, 228 pages. [GSB# 002D/15/0189] Graves, G 1987: First year assessment report on prospecting, geochemical, geophysical and trenching exploration for licence 2897 on claim blocks 4515, 4517 and 4520 and licence 2917 on claim blocks 4553-4554 in the Gander River Outflow and Gander Lake areas, Newfoundland. Noranda Exploration Company Limited Unpublished report, 228 pages. [GSB# 002D/15/0189] Harland, W.B, Gayer, R. A., 1972: The Artic Caledonides and Earlier Oceans: Geol. Mag., Vol. 109, p289-314. Hibbard, J. and Gibbons, R.V. 1983: Geology of the Baie Verte Peninsula, Mineral Development Division, Department of Mines and Energy, Government of Newfoundland and Labrador Department of Mines and Energy, Mineral Development Division, Memoir 02, 297 pages [GSB#NFLD/1497 Jenness, S.E. 1958: Geology of the lower Gander River Ultrabasic belt, Newfoundland (parts of 2D/15, 2E/01, 2E/02, 2E/08). Geological Survey of Newfoundland, Report 11, 58 pages. Kean, B.F. Dean, P.L. and Strong, D.F. 1981: Regional geology of the Central Volcanic Belt of Newfoundland. Geological Association of Canada, Special Paper 22, p. 65-78. Keats, Kevin 2002/ 2004/2005: First, Second & Third Year Assessment Reports on licence 8656m for Spruce Ridge Resources GSB file # 002D/15/0501, 002D/15/0654 & 002D/15/0625 Kohlsmith, R L 1988: First year assessment report on geological and geochemical exploration for the Gander project for licence 2991 on claim block 5872 in the Joe Batts Pond area, Newfoundland. Kidd Creek Mines Limited Unpublished report, 30 pages. [GSB# 002D/15/0187]

28

MacKenzie, A C and Averill, S 1985: First year assessment report on geological, geochemical and geophysical exploration for licence 2472 on claim blocks 3798-3800 in the Jonathans Pond area, Newfoundland. Noranda Exploration Company Limited Unpublished report, 180 pages. [GSB# 002E/0532] Paragon Mineral Corp Website: News Press releases: February 12, 2007, June 19, 2007, September 13, 2007, December 20, 2007, May 7, 2008, December 12, 2008 Regular, Michael - Geologist 2003: First Year Assessment Report on licence 8660m for Spruce Ridge Resources GSB file # Nfld/2882, 17 pages. Rubicon Minerals, Website: News Press releases: October 05, 2004, April 13, 2005, January 17, 2005 and November 02, 2006 Sheppard, D 1993: Seventh year assessment report on geochemical and diamond drilling exploration for licence 4344 on claim block in the Gander River area, Newfoundland. Gander River Minerals Incorporated, Bristol Exploration Limited, and Hemlo Gold Mines Incorporated Unpublished report, 75 pages. [GSB# 002D/15/0284] Sheppard, D 1994: Eighth year assessment report on diamond drilling exploration for licence 4344 on claim blocks 8136-8137 in the Gander River area, Newfoundland. Bristol Exploration Limited and Hemlo Gold Mines Incorporated Unpublished report, 46 pages. [GSB# 002D/15/0296] Sheppard, D and Burton, G B 1994: Eighth year supplementary assessment report on geophysical exploration for licence 4344 on claim block in the Gander River area, Newfoundland, 2 reports. Bristol Exploration Limited and Hemlo Gold Mines Incorporated Unpublished report, 37 pages. [GSB# 002D/15/0298] Tallman, P and Gower, D 1989: Second and third year assessment report on geochemical, geophysical, trenching and diamond drilling exploration for the Glenwood/White Bay project for licence 2821 on claim block 4655 and licence 3259 on claim block 3775 in the Gander River Outflow and Gander Lake areas, Newfoundland. Noranda Exploration Company Limited Unpublished report, 74 pages. [GSB# 002D/15/0218]

29

Simpson, A 1989: Second and fifth year assessment report on geological, geochemical and geophysical exploration for licence 2472 on claim blocks 3460-3461 and 3463 and licence 2967 on claim blocks 3468 and 3439 in the Jonathans First Pond and Jonathans Second Pond areas, northeastern Newfoundland. Noranda Exploration Company Limited Unpublished report, 299 pages. [GSB# 002E/02/0636] Simpson, A 1990: Third and sixth year assessment report on geological, trenching and diamond drilling exploration for licence 2472 on claim blocks 3460-3463 and licence 2967 on claim blocks 3468-3469 in the Jonathans First Pond, Jonathans Second Pond and Jonathans Pond River areas, northeastern Newfoundland. Major General Resources Unpublished report, 66 pages. [GSB# 002E/02/0705] Snow, P 1988: First and fourth year assessment report on geological, geochemical, trenching and diamond drilling exploration for licence 2472 on claim blocks 3460-3461 and 3463 and licence 2965 on claim blocks 3438 and 3471 in the Jonathans Pond area, northeastern Newfoundland. Noranda Exploration Company Limited Unpublished report, 111 pages. [GSB# 002E/02/0582] Paragon Mineral Corp Website: News Press releases: February 12, 2007, June 19, 2007, September 13, 2007, December 20, 2007, May 7, 2008, December 12, 2008 Williams. H. 1978: Tectonic Lithofacies of the Appalachian Orogen: Memorial University of Newfoundland, Map 1 Williams, H. 1972: Stratigraphy of the Botwood map area, north-eastern Newfoundland. Geological Survey of Canada, Open File 113, 103 pages Woldeabzghi, T 1988: Second year assessment report on geological, geochemical, geophysical, trenching and diamond drilling exploration for licence 2821 on claims in the Glenwood and Gander River

30

Figures

Figure.1

Property Location Map

017432m

Figure. 2

Newfoundland Geology Map

Figure. 3

Regional Geology Map

Figure. 3A

Regional Geology Map Legend

Figure. 4

Sample Location Map 017432m

Figure. 5

Showing Location Map

Figure. 6

Rubicon Minerals Rock Sample Location Map

Figure. 7

Rubicon Minerals Gold in Soils Map

Figure. 8

Rubicon Minerals As in Soils Map

Appendices:

Appendix I

Expenditures

Licence no. 017432m

Personnel Man days $ TOTAL

Prospectors 23 $5,550.00

Expenses & Rentals Meals, trucks & etc. $2,800.00

Analytical Costs Samples $489.48

Assaying & Shipping 12

Subtotal $8,839.48

15% overhead $1,325.92

Grand Total $10,165.40

Required Assessment ($) $1,600.00

Excess (Deficit) ($) $8,565.40

Appendix II

List of Personnel and Contractors

Personnel

NAME LOCATION TITLE

Eddie Quinlan Birchy Bay, NL Prospector

Andy Budden Baytona, NL Prospector

Roland Quinlan Birchy Bay, NL Prospector

Phillip Freake Birchy Bay, NL Geological Technician

Contractors

Name Location Description/Title

Quinlan Prospecting Inc. Birchy Bay, NL Prospector Supplier

Eastern Analytical Ltd Springdale, NL Geochemical Laboratory

DRL Coachlines Lewisporte, NL Sample Shipping

Appendix III

Analytical Certificates

Appendix IV

Sample Descriptions

Sample # Sample Type Easting Northing Licence Rock Type Description16710 Subcrop 660891 5422775 017432m q-vein shale outcrop adjacent to block, 20cm x 15cm, leached, carb, min cpy-pb, py in sections, sulphosalts16711 Subcrop 660669 5422550 017432m q-vein swampy area, highly leached, carb, trace asp16712 Subcrop 660627 5422638 017432m q-vein highly leached, carb, trace clots of asp, green chlorite, 1.0m x 0.5m block16713 Subcrop 660627 5422638 017432m q-vein same block, trace py16714 Subcrop 660627 5422638 017432m q-vein same block no visible sulphies16715 Subcrop 660628 5422643 017432m q-vein leached, minor rust, shale, min py with pb16716 Subcrop 660638 5422679 017432m q-vein 20cm x 20cm, highly leached, carb, no visible sulphides16717 Subcrop 660529 5422503 017432m q-vein 0.6m x 0.5m, highly leached, carb, trace pb, min py-asp16718 Subcrop 660404 5422195 017432m q-vein 0.6m x 0.4m, in small brook, leached, min carb, trace asp, min py & sulphosalts16719 Subcrop 660558 5422133 017432m q-vein 15cm x 20cm, by Suely's VG, carb, leached, min to 1% asp in sections16720 Subcrop 660667 5422756 017432m q-vein 20cm x 20cm, min carb, gray shale, min clots of coarse asp16721 Subcrop 660766 5422848 017432m q-vein 20cm x 20cm, leached, carb rich, min shale, min py