line cutting vlf rpt riggs twp...purpose of survey ground prospecting had revealed anomalous gold...

Assessment Report

VLF Survey

on the

Albert Lake Property

Riggs Township Claim # 4210361

Sault Ste. Marie Mining Division

Northeastern Ontario NTS 42c/8 (Franz)

Written by:

Graham Stone RR#1 Parry Sound, Ontario P2A 2W7

February 14, 2010

For

Chalice Diamond Corp

TABLE OF CONTENTS

Page Introduction-ownership, description and overview 1 Location and Access 1 General Geology 2 VLF-EM Survey (description of survey and field procedures) 2 Purpose of Survey 3 Personnel 3 Interpretation 3 Recommendations 4 Qualifying Statement 4 References 5 APPENDICES Appendix 1 – Key Location Map Appendix 2 – Grid Location Map Appendix 3 – Albert Lake VLF Profiles Map Appendix 4 – Albert Lake VLF Postings Map Appendix 5 – Albert Lake VLF Interpretation Map Appendix 6 – Survey Statistics Appendix 7 – Tabulated readings Appendix 8 – Relief from Forfeiture Appendix 9 – Nicholson_Gratton Agreement Appendix 10 – J. Walmsley as Agent Appendix 11 – EM16 Instrument Specifications

Introduction – Ownership, Description and Overview Since May 6, 2008, Chalice Diamond Corp. of Vancouver, British Columbia has held a beneficial interest in claim number 4210361 (7 units/112 ha), situated in Riggs Township. John R. Walmsley is authorized to act as agent on behalf of Gaston Gratton in the matter of applying and filing the assessment on all claims under option in the Wawa and Sault Ste Marie Mining district during the life of the option agreement. (See Appendix 10.) A relief from forfeiture was applied for and accepted, which extended the filing date from January 6, 2010 until March 5, 2010. The costs associated with conducting the work program outlined in this report are to be applied to claim number: 4210361 (7 units/112 ha) having an imminent due date of March 5, 2010. A VLF-EM survey was conducted over the property, (Claim # 4210361, Riggs Township,(G-2814) with subsequent processing and presentation of field data as posted values and profiles. Interpretation and recommendations for further follow-up are included. Access The claims are located @12kms due East of Missanabie Ontario in the Sault Ste. Marie Mining Division. From the town of Missanabie travel west, by snowmobile across Dog Lake for approximately 8km’s. Turn left on to the OFST snowmobile trail(F-Trail) and continue westerly for another 4kms. Turn South onto the OFST (D-Loop Trail) and continue another 3kms along the trail. Then turn left and travel east along old logging roads, some of which were very overgrown and needed to be brushed out so a skidoo could pass, for another 3.6kms. From this point a 200m trail had to be cut down onto Albert Lake. A further 500m snowmobile ride puts you in the central grid area. Total travel distance of 19.3kms. Snow conditions were bad in that there was only about a foot of snow so the trails could not be groomed and were very rough, making travel quite slow.

- 1 -

General Geology (after Srivastava and Bennett, 1978, GR174 OGS) Isoclinally folded metavolcanics with subordinate amounts of metasediments, intruded by small stocks and pods of gabbro-diorite underlie a large portion of the region. The metavolcanic sequence is part of the large northeast trending Michipicoten greenstone belt. Mafic to intermediate metavolcanics, primarily basalt flows and pyroclastic rocks, predominate in Riggs twp, and the western parts of West Twp. Many sills, dikes, and small stocks of feldspar and quartz feldspar porphyry occur within the metavolcanics. The metavolcanic belt is bounded in the northwest by a syntectonic trondhjemite and in the southeast by a younger trondhjemite pluton. Small posttectonic granodiorite and syenite stocks associated with lamprophyre occur within the mafic metavolcanic belt. All of these rocks are of Early Precambrian(Archean) age. Subsequently the entire area was intruded by diabase and basaltic dike swarms and an olivine gabbro stock of Middle to Late Precambrian age. Two major faults and a few small faults were noted and are marked by deep linear valleys, and dissected hills. Movement on the larger faults has produced some shearing, carbonization and iron staining. The bedrock is extensively covered by unconsolidated Pleisticene sediments consisting of ground and terminal moraine, and glaciofluvial and glaciolacustrine deposits. In general, therefore, bedrock outcrops in the area are very sparse. VLF-EM Survey (description of survey and field procedures) VLF-EM surveys employ fixed very low frequency radio transmitting stations located throughout the world, on frequencies in the band 15 to 25 KHz, operated for the purposes of military submarine communications. The VLF- transmitting antenna is vertical, producing a vertical current in the antenna, and propagating a horizontal magnetic field, containing both electric and magnetic components, known as a "surface wave", along the earth-air interface. Over terrain that is flat and non-conductive, the magnetic field component of the surface wave is horizontal and perpendicular to the direction of travel of this wave. However when the surface wave meets conductive bodies, secondary fields radiate from these conductive discontinuities, and the Geonics EM16 VLF instrumentation measures the tilt angles of the vertical components of the secondary fields; as an In-Phase and Quadrature(Out-of-Phase) readings in percent scale. The resultant secondary fields will be tilted upwards, (positive) out of the horizontal plane as the conductor is approached, and downwards, (negative) out of the horizontal plane on the opposite side of the conductor. Directly over the conductor the tilt will be zero. When the primary wave penetrates the conductive source, the wave becomes very short to a few tens of metres and is practically downwards into the upper edge of the conductor, thus readily locating the conductive source, (Geonics Ltd. 1997). Survey lines were put in using a compass and chain, and the line endpoints were waypointed using a handheld GPS unit. All points where lines hit the shoreline were also waypointed and flagged so the exact point on shore could be revisited. The VLF survey was performed on a control grid which was chained and flagged in 25m intervals with subsequent post processing and presentation of field data comprised of In-Phase and Quadrature (Out-of-Phase), in percent scale profiles, and also as posted values.

- 2 -

Purpose of Survey Ground prospecting had revealed anomalous gold values in two locations. The VLF-EM method was conducted to detect geological structures such as conductive mineralized zones, faults, contacts, intrusions, dipping beds, abrupt facies changes such as lateral changes in resistivity, either in bedrock or overburden. Personnel The following personnel worked on this property and conducting the following work activities summarized below: Personnel Activity Dates Worked Man-days Peter Smith logistics Feb 3, 2010 1 day Gridding Feb 6, 7, 8, 9, 2010 4 days Graham Stone Mobilization Feb 5, 2010 1 day VLF survey Feb 6, 7, 9, 2010 3 days Gridding Feb 8, 2010 1 day Demobilization Feb 10, 2010 1 day Logistics/ report Feb 1, 14, 15, 2010 3 days

Interpretation On the Albert Lake grid, there are 5 conductors that are easily discernable in the data. There are also a few others but they are much more subtle and questionable. The 5 conductors that will be discussed are labeled A, B, C, D, and E. Conductor A appears to be fairly strong on lines 100E and 200E and then either gets weaker or deeper towards L400E. Conductor C runs parallel to A but is slightly weaker and shorter. The quadrature response would suggest that these are both from a bedrock source. Conductor B appears to be moderately strong but may be partly due to conductive lake bottom as you near the shore. Conductor D is a fairly strong conductor with a good strike length of at least 500m. This would also appear to be a bedrock conductor. Conductor E has a strike length of over 300m and looks to be moderately strong.

- 3 -

Recommendations Further work in the form of geophysics should be carried out. These known conductive responses need to be surveyed to decide whether or not they are shear zones, bedrock conductors or lithological changes. HLEM would help to decide if they are worthwhile conductive targets, while Induced Polarization would give some idea as to the sulphide content. Ground prospecting would be advisable, however it looks like the overburden may be thick enough to hide any local bedrock.

Qualifying Statement I, Graham Stone, residing at RR #1, Parry Sound, ON, P2A 2W7 state the following with respects to this report:

I wrote this report and produced the accompanying tables and maps based on information provided by Chalice Diamond Corp. of 771 - 675 West Hastings Street Vancouver, British Columbia V6B 1N2.

That I hold no beneficial interest in these properties held by Golden Chalice Resources

Inc. as stated in this report. Respectfully Submitted

Graham Stone in Parry Sound, ON 14, February, 2010

- 4 -

References Geonics Limited, 1977: EM16 Operating Manual Bennett, G and Srivastava, P. 1978: Geology of Riggs and West Townships, District of Algoma; Ontario Geological Survey Report 174, 56p. Accompanied by Maps 2353, scale 1inch to ½ mile Or 1:31680.

- 5 -

Appendix 1

Key Location Map

Black 5 (urgeon ,

\ \_ River

Dog Lake 51. Ignace Islandi"""-....i Slate Islands

Bay .'-- .~'. I' - ,. ,. .

Pukaskwa National Park ,Neebing

Isle Royale @ake Superior! '. Michipicoten Island

\.

Beaver I, Iand

Fox Islands ,nt,," I, lands

Islands

@ Garmin Ltd. or its s. .aries 1995-2004

Kabinakagami Lake

M issinaibi Lake

• .( ... -

'" / ,

R\ver

Cockburn'Isiand

Island

Biscotasi

Elliot Lake

)ingLake

, Panache ,

Great la Qoche Island , Lake Manitou

Great Duck Islands

,enaCounly Regl

South Bay

Fitzwilliam Islands

Ge

,

Falls

Lady E'lelyn

Lake Toma,

, ,Capreol ,

Lac Nipissing

,

50 mi

GS

Text Box

Appendix 1 Key Location Map

Appendix 2

Grid Location Map

4210361

Dog LakeDog LakeDog Lake

Albert Lake

Little Brothers Lake

Old Cabin Lake

RIGGS

BRUYERE

4227864

1243427

1243425

1243431

4220840

3012012

4218074 42249554210459

4224502

4247651

3003549

4224503

4224956

4224575

4247652

3018210

418103

42180454227865

1218073

1243426

1229807

1243424

3003556

1230146 1218171

1243428

4224630

1218072

Chalice Diamond Corp 0 500 1,000 1,500 2,000250Meters

Appendix 2: Grid Location Map

Appendix 3

Albert Lake VLF Profile Map

RIGGS

4210361

4227864

4247652

1243424

1243427

705750

705750

706000

706000

706250

706250

706500

706500

706750

706750

707000

707000

707250

707250

707500

707500

5351

500

5351

500

5351

750

5351

750

5352

000

5352

000

5352

250

5352

250

5352

500

5352

500

Albert Lake

Chalice Diamond CorpAlbert Lake VLF Profile MapTransmitting Station: Cutler Maine NAA 24.0kHzInstrument: Geonics Model EM16 Serial # 10589Convention: North and East are PositiveBlack Line = InPhase Red Line = Quadrature

Survey Date: February 2010. Survey By: Graham StoneDatum: NAD83 Zn 16N

0 250 500 750 1,000125Meters

³

Claim Line found in field

Appendix 3

Appendix 4

Albert Lake VLF Postings Map

RIGGS

4210361

4227864

4247652

1243424

1243427

705500 705600 705700 705800 705900 706000 706100 706200 706300 706400 706500 706600 706700 706800 706900 707000 707100 707200 707300 707400

5351

500

5351

500

5351

600

5351

600

5351

700

5351

700

5351

800

5351

800

5351

900

5351

900

5352

000

5352

000

5352

100

5352

100

5352

200

5352

200

5352

300

5352

300

5352

400

5352

400

5352

500

5352

500

Albert Lake VLF Postings MapTransmitting Station: Cutler Maine NAA 24.0kHzInstrument: Geonics Model EM16 Serial # 10589Convention: North and East are PositiveBlack = InPhase Red = Quadrature


Chalice Diamond Corp

³

0 250 500 750 1,000125Meters


Albert Lake

Appendix 4

Appendix 5

VLF-EM Interpretation Map

RIGGS

4210361

4227864

4247652

1243424

1243427

705750

705750

706000

706000

706250

706250

706500

706500

706750

706750

707000

707000

707250

707250

707500

707500

5351

500

5351

500

5351

750

5351

750

5352

000

5352

000

5352

250

5352

250

5352

500

5352

500

Albert Lake

Chalice Diamond CorpAlbert Lake VLF Interpretation MapTransmitting Station: Cutler Maine NAA 24.0kHzInstrument: Geonics Model EM16 Serial # 10589Convention: North and East are PositiveBlack Line = InPhase Red Line = Quadrature


0 250 500 750 1,000125Meters

³


Appendix 5

Interpreted Conductor Axis

A

B

C

D

E

Appendix 6

Survey Statistics

Grid Albert LakeGrid point of origin: Zone, UTM & Datum NAD83 Zn16N Grid Point of Origin L1000E BL0N(706830E 5352243N)Survey Type VLF Em SurveyClaim 4210361Township RIGGS Project Chapleau Diamond ProjectN.T.S. 42 C/8Survey date February 2010Surveyed by Graham StoneSurvey Instrument Geonics EM16 Serial # 10589Transmitting Station: Cutler Maine NAATransmitting Frequency 24.0kHzLine Station reading interval 25 metresLine Spacing 100 metresTotal number of posted readings for grid 333Total Grid Km 8.325 KmProfile scale(%) 1cm = 50%Map by Graham StoneMap scale 1 to 10000Report writing by Graham StoneDate of report writing 10-Feb-10

Survey Statistics

Appendix 7

VLF-EM Tabulated Readings

Line Station InPhase Quadrature NAD83 Easting

NAD83 Northing Topography

1000E 0 -25 10 706830 5352243 shoreline

1000E -25 -27 10 * * lake

1000E -50 -32 11 * * lake

1000E -75 -40 10 * * lake

1000E -100 -26 15 * * lake

1000E -125 -12 22 * * lake

1000E -150 -30 22 * * lake

1000E -175 -33 22 * * lake

1000E -200 -23 20 * * lake

1000E -225 -6 15 * * lake

1000E -250 2 5 * * lake

1000E -275 9 -6 * * lake

1000E -300 10 -10 * * lake

1000E -325 8 -10 * * lake

1000E -350 2 -5 * * lake

1000E -375 -1 -4 * * lake

1000E -400 6 -10 * * lake

1000E -425 22 -18 * * lake

1000E -450 45 -20 * * lake

1000E -475 47 -21 * * lake

1000E -500 50 -15 * * lake

1000E -525 55 -5 * * lake

1000E -550 57 -2 706844 5351699 Lake_beside small island

1100E 0 -30 4 706917 5352246 lake

1100E -25 -30 6 * * lake

1100E -50 -33 8 * * lake

1100E -75 -34 8 * * lake

1100E -100 -34 12 * * lake

1100E -125 -24 14 * * lake

1100E -150 -18 17 * * lake

1100E -175 -11 18 * * lake

1100E -200 -6 16 * * lake

1100E -225 -3 15 * * lake

1100E -250 0 12 * * lake

1100E -275 0 12 * * lake

1100E -300 0 10 * * lake

1100E -325 2 8 * * lake

1100E -350 2 6 * * lake

1100E -375 3 2 * * lake

1100E -400 5 -5 * * lake

1100E -425 9 -11 * * lake

1100E -450 22 -16 * * lake

1100E -475 48 -15 * * lake

1100E -500 70 -8 * * lake

1100E -525 76 -4 706943 5351732 lake

1200E 0 -29 4 707013 5352262 lakeshore

1200E -25 -27 4 * * lake

1200E -50 -22 4 * * lake

1200E -75 -15 4 * * lake

1200E -100 -15 2 * * lake

1200E -125 -16 4 * * lake

1200E -150 -16 4 * * lake

1200E -175 -10 5 * * lake

1200E -200 -8 4 * * lake

1200E -225 -22 0 * * lake

1200E -250 -29 -2 * * lake

1200E -275 -32 0 * * lake

1200E -300 -27 4 * * lake

1200E -325 -25 6 * * lake

1200E -350 -20 6 * * lake

1200E -375 -24 3 * * lake

1200E -400 -30 3 * * lake

1200E -425 -22 5 * * lake

1200E -450 -17 8 * * lake

1200E -475 -15 8 * * lake

1200E -500 -14 10 * * lake

1200E -525 -25 7 707066 5351737 lake

900E -50 -40 10 706732 5352189 lake shore_swampy

900E -75 -50 10 * * lake shore_swampy

900E -100 -63 8 * * lake

900E -125 -50 12 * * lake

900E -150 -30 10 * * lake

900E -175 -5 4 * * lake

900E -200 30 -5 * * lake

900E -225 46 -12 * * lake

900E -250 41 -12 * * lake

900E -275 45 -4 * * lake

900E -300 35 0 * * lake

900E -325 15 -10 * * lake

900E -350 -5 -14 * * lake

900E -375 -26 -12 * * lake

900E -400 -27 -2 * * lake

900E -425 -10 -4 * * lake

900E -450 13 -12 * * lake

900E -475 32 -18 * * lake

900E -500 47 -18 * * lake

900E -525 55 -14 * * lake

900E -550 50 -12 706748 5351694 lake

800E -100 -55 10 706633 5352137 lake

800E -125 -50 10 * * lake

800E -150 -17 6 * * lake

800E -175 50 -4 * * lake

800E -200 80 -4 * * shore of island

800E -225 60 -3 * * island

800E -250 36 -8 * * island

800E -275 23 -10 * * island

800E -300 25 0 * * narrows between islands

800E -325 15 -4 * * narrows between islands

800E -350 2 -6 * * shore of island

800E -375 -10 -6 * * island

800E -400 -25 -8 * * island

800E -425 -37 -10 * * shore of island @ 412.5 S

800E -450 -42 -2 * * lake

800E -475 -20 0 * * lake

800E -500 2 -4 * * lake

800E -525 45 -10 * * lake

800E -550 50 -12 * * lake

800E -575 40 -16 * * lake

800E -600 32 -15 706658 5351643 lake

700E 150 -28 8 706514 5352376 Land

700E 125 -40 2 * * shoreline @ 137.5N

700E 100 -34 10 * * lake

700E 75 -41 10 * * lake

700E 50 -35 14 * * lake

700E 25 -11 12 * * lake

700E 0 8 7 * * lake

700E -25 15 8 * * lake

700E -50 -5 8 * * lake

700E -75 -6 10 * * lake

700E -100 -2 8 * * lake

700E -125 0 8 * * lake

700E -150 1 3 * * lake

700E -175 8 0 * * lake

700E -200 19 -6 * * lake

700E -225 22 -10 * * lake

700E -250 40 -7 * * lake

700E -275 30 -8 * * lake

700E -300 18 -8 * * lake

700E -325 7 -8 * * lake

700E -350 -3 -8 * * lake

700E -375 -12 -10 * * lake

700E -400 -17 -9 * * lake

700E -425 -16 -6 * * lake

700E -450 -22 -8 * * lake

700E -475 -25 -6 * * lake

700E -500 -15 -4 * * lake

700E -525 -17 -4 * * lake

700E -550 -14 -8 * * lake

700E -575 12 -8 * * lake

700E -600 35 -10 706562 5351640 lake

600E 50 -68 2 706428 5352276 shoreline

600E 25 -29 6 * * lake

600E 0 -5 6 * * lake

600E -25 8 6 * * lake

600E -50 -11 4 * * lake

600E -75 -20 6 * * lake

600E -100 -6 2 706434 5352126 lake

600E -125 2 0 * * lake

600E -150 7 0 * * lake

600E -175 16 -4 * * lake

600E -200 20 -6 * * lake

600E -225 15 -8 * * lake

600E -250 17 -8 * * lake

600E -275 18 -9 * * lake

600E -300 2 -11 * * lake

600E -325 -6 -8 * * lake

600E -350 2 -6 * * lake

600E -375 20 -4 * * lake

600E -400 15 2 * * lake

600E -425 5 -1 * * lake

600E -450 -12 -9 * * lake

600E -475 -19 -7 * * lake

600E -500 -23 -4 * * lake

600E -525 -25 0 * * lake

600E -550 -15 2 * * lake

600E -575 -9 0 * * lake

600E -600 0 -2 706465 5351635 lake

500E 100 -12 12 706329 5352323 gentle slope down to south/ mixed bush Bw/Sw/Po

500E 75 -10 10 * * gentle slope down to south/ mixed bush Bw/Sw/Po


500E 25 1 7 * * gentle slope down to south/ mixed bush Bw/Sw/Po

500E 0 10 8 706344 5352221 gentle slope down to south/ mixed bush Bw/Sw/Po

500E -25 10 8 * * gentle slope down to south/ mixed bush Bw/Sw/Po

500E -50 -5 4 * * gentle slope down to south/ mixed bush Bw/Sw/Po




500E -150 -5 -2 * * gentle slope down to south/ mixed bush Bw/Sw/Po

500E -175 4 -2 * * gentle slope down to south/ mixed bush Bw/Sw/Po





500E -300 35 -4 706348 5351929 shoreline

500E -325 30 -5 * * lake

500E -350 39 -5 * * lake

500E -375 35 -8 * * lake

500E -400 30 -9 * * lake

500E -425 17 -6 * * lake

500E -450 0 -13 * * lake

500E -475 -10 -6 * * lake

500E -500 -13 -4 * * lake

500E -525 -12 -2 * * lake

500E -550 -7 2 * * lake

500E -575 -5 1 * * lake

500E -600 1 0 706366 5351625 lake

400E 200 3 8 706226 5352418 gently rolling mixed bush Po/Bw/Sw

400E 175 -2 6 * * gently rolling mixed bush Po/Bw/Sw




400E 75 2 5 * * gently rolling mixed bush Po/Bw/Sw



400E 0 7 2 706231 5352217 gently rolling mixed bush Po/Bw/Sw

400E -25 5 0 * * gently rolling mixed bush Po/Bw/Sw



400E -100 18 -2 * * gently rolling mixed bush Po/Bw/Sw






400E -250 28 -4 706241 5351973 gently rolling mixed bush Po/Bw/Sw

300E 250 -4 3 706130 5352467 gentle slope down to south/ mixed bush Bw/Sw/Po







300E 75 -18 2 * * cedar swamp

300E 50 -11 2 * * cedar swamp

300E 25 -3 2 * * gentle slope up to south/ mixed bush Bw/Sw/Po

300E 0 6 0 706128 5352217 gentle slope up to south/ mixed bush Bw/Sw/Po

300E -25 8 -1 * * gentle slope up to south/ mixed bush Bw/Sw/Po









300E -250 38 0 706133 5351963 gentle slope up to south/ mixed bush Bw/Sw/Po

200E 250 -3 2 706034 5352468 gentle slope up to north/ mixed bush Bw/Sw/Po

200E 225 -5 2 * * gentle slope up to north/ mixed bush Bw/Sw/Po







200E 50 -33 -3 * * gentle slope up to north/ mixed bush Bw/Sw/Po

200E 25 -54 -4 * * Cedar/spruce swamp

200E 0 -25 0 706031 5352217 Cedar/spruce swamp

200E -25 2 0 * * flat swampy area

200E -50 16 -1 * * flat swampy area




200E -150 25 -2 * * flat open mature Poplar bush/gentle slope down to north




200E -250 24 -3 706036 5351970 flat open mature Poplar bush/gentle slope down to north

100E 250 -5 2 705937 5352463 old clearcut

100E 225 -4 2 * * old clearcut




100E 125 -10 0 * * old clearcut



100E 50 -13 -3 * * mixed cedar and spruce/flat

100E 25 -12 -2 * * mixed cedar and spruce/flat

100E 0 -20 -5 705931 5352217 mixed cedar and spruce/flat

100E -25 -10 -2 * * mixed cedar and spruce/flat

100E -50 9 -1 * * mixed cedar and spruce/flat

100E -75 36 2 * * mixed cedar and spruce/flat

100E -100 35 3 * * mixed cedar and spruce/flat

100E -125 24 1 * * mixed bush Bw/Po/Sw

100E -150 16 -3 * * mixed bush Bw/Po/Sw




100E -250 20 -2 705938 5351971 mixed bush Bw/Po/Sw

1300E 0 -3 8 707132 5352254 lake shore

1300E -25 -2 6 * * slope up to south mixed bush Bw/Sw




1300E -125 -18 3 * * rolling mixed bush Bw/Sw









1300E -350 -12 4 * * Steeper slope up to south mixed bush Bw/Sw







1300E -525 -8 2 Steeper slope up to south mixed bush Bw/Sw

1300E -550 -6 2 707147 5351727 Top of Hill

1400E 0 0 6 707229 5352253 rolling open Birch bush

1400E -25 -5 6 * * rolling open Birch bush




1400E -125 1 8 * * rolling open Birch bush









1400E -350 0 8 * * rolling open Birch bush





1400E -475 -10 2 * * slope down to North mixed bush Po/Bw/Sw



1400E -550 -7 4 707245 5351724 Top of hill

1500E 250 0 5 707311 5352509 rolling mixed bush

1500E 225 1 6 * * rolling mixed bush

1500E 200 1 5 * * rolling mixed bush

1500E 175 -3 5 * * rolling mixed bush

1500E 150 -2 4 * * rolling mixed bush

1500E 125 8 8 * * bottom of hill

1500E 100 5 6 * * slope down to north mixed bush Po/Bw/Sw

1500E 75 0 5 * * slope down to north mixed bush Po/Bw/Sw

1500E 50 -2 4 * * Top of hill

1500E 25 -3 4 * * flat

1500E 0 -5 4 707330 5352261 cliff up to south

1500E -25 -6 5 * * rolling mixed bush









1500E -250 4 10 * * rolling mixed bush

1500E -275 4 10 707347 5351987 rolling mixed bush

Post * * * 706200 5351614 400mE of #3(4210361)

Post * * * 706724 5351649 800mW of #2(4210361)

Post * * * 707063 5351699 400mW of #2(4210361)

Post * * * 706825 5352247 800mE_200mS of #4(4210361)

Post * * * 706800 5352316 800mE_100mS of #4(4210361)

Appendix 8

Relief from Forfeiture

MIL-17-S 01110

ORDER OF THE MINISTER

OF NORTHERN DEVELOPMENT, MINES AND FORESTRY In the Matter of

SECTION 185 OF THE MINING ACT, R.S.O. 1990

AND IN THE MATTER OF:

Cancelled unpatented mining claim 4210361, Riggs Township (G-2814), Sault Ste Marie Mining

Division, hereinafter referred to as the "Mining Claim";

AND IN THE MATTER OF:

An application for Relief from Forfeiture for the Mining Claim;

AND UPON:

Reviewing the material filed;

AND WHEREAS:

There is no adverse interest reported to me at this time;

AND WHEREAS:

The authority to grant Relief from Forfeiture pursuant to Subsection 185(1) of the Mining Act

has been delegated to the Director, Mineral Development and Lands Branch, Mines and Minerals

Division;

I HEREBY ORDER:

That the interest of the holder ofthe Mining Claim be relieved from forfeiture;

I HEREBY FURTHER ORDER:

That the time to perf 01111 and/or report assessment work is extended up to and including

March 5th 2010' , ,

I HEREBY FURTHER ORDER:

That all subsequent anniversary dates remain unchanged.

Cindy Blancher-Smith Director, Mineral Development and Lands Branch

Mines and Minerals Division Ministry ofNorthe111 Development Mines and

Forestry

Appendix 9

Nicholson Gratton Agreement

ALBERT LAKE PROPERTY

This Agreement is dated for reference the 1st day of December 2008

BETWEEN:

AND:

AND:

TERRANCE NICHOLSON #112 - 143A Great North Road Sault Ste. Marie, Ontario P6B 4Y9 Tel: (705) 779-2337

GASTON GRATTON P.O. Box 118 Wawa, Ontario POS 1 KO Tel: (705) 856-2034

(as to 50%)

(as to 50%)

(hereinafter referred to collectively as the "Optionors")

CHALICE DIAMOND CORP. #711 - 675 West Hastings Street Vancouver, British Columbia V6B 1 N2

(hereinafter referred to as the "Optionee")

OF THE FIRST PART

OF THE SECOND PART

WHEREAS the Optionors are the recorded and beneficial owners of certain mining claims situated in Ontario more particularly described in Schedule "A" attached hereto (the "Property");

AND WHEREAS the Optionors desire to grant and the Optionee is desirous of obtaining an option to acquire a 100% undivided interest in and to the Property upon terms and subject to the conditions herein contained.

NOW THEREFORE in consideration of the premises and the mutual covenants and agreements herein contained, the parties agree as follows:

1. GRANT OF OPTION

The Optionors grant to the Optionee the sole, exclusive and irrevocable right and option (the "Option") to acquire an undivided 100% right, title and interest in and to the Property, subject to the Royalty Interest pursuant to paragraph 6 hereof, in accordance with the terms of this Agreement.

2. OPTION ONLY

This is an option only and except as specifically provided otherwise, nothing herein contained shall be construed as obligating the Optionee to do any acts or make any payments hereunder and any act or acts, or payment or payments as shall be made hereunder shall not be construed as obligating the Optionee to do any further act or make any further payment. If this Agreement is terminated before the Optionee has earned its 100% interest in the Property the Optionee shall not be bound thereafter in debt, damages or otherwise under this Agreement and all payments theretofore paid by the Optionee shall be retained by the Optionors as the sole consideration for entering into this Agreement and for the rights conferred on the Optionee thereby.

3. TERMS OF THE OPTION

In order to maintain the Option in good standing and earn 100% right, title and undivided interest in and to the Property the Optionee, subject to paragraph 2, shall:

(a) pay to the Optionors $20,000 12 months from the date of Regulatory Approval;

(b) pay to the Optionors a further $20,000 on or before the date which is 24 months from the date of Regulatory Approval; and

(c) pay to the Optionors a final $20,000 on or before the date which is 36 months from the date of Regulatory Approval.

(d) issue to the Optionors 100,000 common shares of the Optionee upon receipt of Regulatory Approval;

07/18/2008 00:24 70 57797r -71155 ~.j:; i i; JU!(h;;,jtl;, .,~, ~ _ _ ; _ '_'"

NICHOLSON PAGE 01

Page 6

29. PRIOR AGREEMENTS

This Agreement supersedes all prior agreements between the parties hereto with respec to the Property, which

said prior agreements shall be deemed to be null and void upon the execution hereof.

30. EXECUTION IN COUNTERPARTS

This Agreement may be executed in any number Of counterparts with the same effect as f all parties had signed

the same document.

IN WITNESS WHEREOF the parties hereto have executed these presents as of the d y and year first above

written.

SIGNED and DELIVERED by

TERRANe HOLs~resence of:

nature

ft/?otf/r 'qvC ~ 1P ~ame (printed)

;23it £!6t !rNf' Address

SIGNED and DELIVERED by

GASTON GRAnON in the presence of:

Signature

Name (printed)

Address

) ) } } ) ) ) ) ) ) )

} ) ) ) ) ) ) ) ) ) )

CHALICE" DI:~" )

p~ ~ ~ AI?n mpbell, Director )

GASTON GRA nON

11/25/2008 10.32 FAX 7 585B18n~ ',','A\',',~ GE!iERAL INS I4J 002/002

Page 6

29. PRIOR AGREEMENTS

Tilis Agreement supersedes all prior agreements betvveen the parties hereto with respect to the Property. which said prior agreements shall be deemed to be null and Voie upon the execution hereof,

30. EXECUTION IN COUNTERPARTS

This Agreement may be executed in any number of counterparts with the same effect as if all parties had signed the same dOGumeri\,

IN WITNESS WHEREOF the parties hereto have executed these presents as of the day and year first above written,

SIGNED and DEUVERED by TERRANCE NICHOLSON in the presence of:

Signature

Name (printed) TERRANCE NICHOLSON

Address

CHALICE DIAMOND CORP.

Per: _....,..,..----,._ Alan Cami;oell. Director

SCHEDULE "A"

REFERRED TO IN THE AGREEMENT DATED FOR REFERENCE THE 1st DAY OF DECEMBER 2008 BETWEEN TERRANCE NICHOLSON, GASTON GRATTON AND CHALICE DIAMOND CORP.

The Property consists of the following claims in the Sault Ste. Marie Mining Division, Ontario, as described below.

Township Claim Number # of Units Recording Date Expiry Date

Riggs 4210361 7 January 3, 2008 January 3, 2010

Bruyere 4218074 16 January 3, 2008 January 3, 2010

Total Units 23

Appendix 10

J. Walmsley as Agent

''''" .. c. .. c. ...... ... ..

To wbom It may eoneem

Since May 6, 2008, Chalice Diamond Corp. as held a beneficial interest in the claims - Bruyere Twp. 4218074 SSM and Riggs Twp .4210361 SSM. 3i

an agreement.

10hn R. Walmsley is authorized to act AS agent on behalf of Out on Granon in the matter of applyinB and fUlins the ASsessment on all claims under option to Golden Chalice Diamond Corp. in the Wawa and Sault Sle. Marie Mining District during the life of the option asreement(s).

Oaston Gratton 1anuary 6, 2010

." .. " " ...

K:Zl "l-101)l.OZ

Appendix 11

EM16 Instrument Specifications

CEONICS LIMITED :~2 Thorncliffe Park Drive, Toronto 17, Ontario, Canada. Tel. (416) 425-1821, Cables: Geonics

EM 16VLF ELECTROMAGNETIC UNIT

Pioneered exclusively by Geonics Limited the VLF-method of electromagnetic surveying by utilization of the uniform horizontal fields generated by an existing network of reliable, fully operational Very Low Frequency trans mitting stations has proved to be a major advance in geophysical exploration.

Very extensive world-wide experience since the beginning of 1965 by a large and rapidly increasing number of users, including a high proportion of major mining and exploration companies, has provided conclusive evidence of the effective ness oLthe technique and the EM 16 has gained general acceptance as a basic electromagnetic tool. This evidence has also indicated the response of dissemin ated bodies, to the VLF-method.

The unique self-contained EM 16 offers the unrivalled combination of LIGHT WEIGHT, ONE-fVlAN OPERATION and DEEP PENETRATION allowing rapid, economical surveys. Assessing the data is simplified due to the use of the uniform horizontal primary field. The patented design feature of the measurement of both the in-phase and out-of-phase (quadrature) component of the vertical field provides the information necessary for comprehensive interpretation of the field results.

SPECIFICATIONS

Source of primary field:

Transmitting stations used:

Operating frequency range:

Parameters measured:

Method of reading:

VLF transmitting stations.

Any desired station frequency supplied with the instrument in the form of plug-in tuning units. Two tuning units can be plugged in at one time. A switch selects either station.

About 15-25 kHz

(1) The vertical in-phase component (tangent of the tilt angle of the polarization ellipsoid).(2) The vertical out-of-phase (quadrature) component the short axis of the polarization ellipsoid compared to the long axis).

In-phase from a mechanical in clinometer; out-of-phase from a calibrated dial. Nulling by audio tone.

Scale range:

Readability:

Reading timu:

Operating temperature range:

Power Supply:

Dimensions:

Weight:

Instrument supplied with:

Shipping weight:

In-phase ± 15CKi; Out-of-phase ± 40X

10 — 40 seconds depending on signal strength.

-40 to 500C

6 size AA (penlight) alkaline cells. Life about 200 hours.

16 x 5.5 x 3.5 in (42 x 14 x 9 cm)

2.5lbs(1.1 kg)

Monotonic speaker, carrying case, manual of operation, 3 station selector plug-in tuning units (additional frequencies are optional), set of-batteries.

10 lbs(4.5 kg)

I· .•••

GEONICS LIMITED 2 Thorncliffe Park Drive, Toronto 17, Ontario, Canada.

EM16 VLF ELECTROMAGNETIC UNIT

Pioneered exclusively by Geonics Limited the VLF·method of electromagnetic surveying by utilization of the uniform horizontal fields generated by an existing network of reliable, fully operational Very Low Frequency trans· mitting stations has proved to be a major advance in geophysical exploration ..

Very extensive world-wide experience since the beginning of 1965 by a large and rapidly increasing number of users, including a high proportion of major mining and exploration companies, has provided conclusive evidence of the effectiveness of Jthe technique and the EM 16 has gained general acceptance as a basic electromagnetic tool. This evidence has also indicated the response of disseminated bodies_ to the VLF-method.

; "':,

(he unique self-contained EM 16 offers the unrivalled combination of LIGHT ~> .• '

WEiGHT, ONE-MAN OPERATIOili and DEEP PENETRATION dllowii19 rapid, economical surveys_ Assessing the data is simplified due to the use of the uniform , .. ' horizontal primary field. The patented design feature of the measurement of ~;; . both the in-phase and out-of-phase (quadrature) component of the vertical field provides the information necessary for comprehensive interpretation of the field results_

SPECIFICATIONS

Source of primary field:

Transmitting stations used:

Operating frequency range:

Parameters measured:

Method of reading:

I

VlF transmitting stations. Scale range:

Any desired station frequency supplied with the instrument in the Readability: form of plug-in tuning units. Two tuning units can be plugged in at Reading timll: one time. A switch selects either station_

Operating temperature range: About 15 - 25 kHz

11 I The vertical in-phase component !tangent of the tilt angle of the

Power Supply:

polariz!ltion ellipsoid). Dimensions:

12/ The vertical out-of-phase Iquadraturel component the Weight: short axis of the polilrization ellipsoid compared to the long Instrument supplied with: axis).

In-phase from a mechanical inclinometer; out-of-phase from a calibrated dial. Nulling by audio tone. Shipping weight:

. \

Tel. (416) 425-1821, Cables: Ceonics

In-phase ± 150%; Out-of-phase ± 40%.

± 1%

10 .- 40 seconds depending on signal strength.

6 size AA Ipenlight) alkaline cells. Life about 200 hours.

16 x 5.5 x 3.5 in 142 x 14 x 9 em)

2.5 Ibs 11.1 kg)

Monotonic speaker, carrying case, manual of operation, 3 station selector plug-in tuning units (additionill frequencies are optionaJl, set of .biltteries.

10 Ibs 14.5 kg)

SIMPLE ONE- MAN OPERATION

IHCDl

STATION SELECTOR

after selection of 2 VLF stations and insertion of proper plug-in units, knob rotation allows switching.

vertical coil

horizontal - coil

RECEIVING COILS

vertical receiving coil circuit in instrument picks up any vert- ,cal signal present. Horizontal receiving coil circuit, after auto matic 90O signal phase shift, feeds signal into out-of-phase dial in series with the receiving coil.

IN-PHASE DIAL

shows the tilt-angle of the instru ment for minimum signal. This angle is the measure of the vertical in-phase signal expressed in percentage when compared to the horizontal field.

"l 1 T"T10 - O -f 10

OUT-OF-PHASE DIAL

is calibrated in percentage markings and nulls the vertical quadrature signal in the vertical coil circuit.

AREAS OF VLF SIGNALS

A Coverage shown only for well-known stations. Other reliable, fully operational stations exist. For full informa tion regarding VLF signals in your area consult Geonics Limited. Extensive field experience has proved that the

1 -. above circles of coverage are very conservative and are ^ actually much larger in extent.

EM16 PROFILE over Lockport Mine property, Newfoundland

Additional case histories on request.

\n i-rrrn

SIMPLE ONEMAN OPERATION

STATION SELECTOR

after selection of 2 V LF stations and insertion of proper plug-in units. knob rotation allows switching.

RECEIVING COILS

vertical receiving coil circuit in instrument picks up any vert.cal signal present. Horizontal receiving coil circuit, after automatic 900 signal phase shift, feeds signal into out-of-phase dial in series with the receiving coil.

IN-PHASE DIAL

shows the tilt-angle of the instrument for minimum signal. This angle is the measure of the vertical in-phase signal expressed in percentage when compared to the horizontal field.

J

1"1 'I 'I 10 - 0 + 10

~--;

OUT-OF-PHASE DIAL

is calibrated in percentage markings and nulls the vertical quadrature signal in the vertical coil circuit.

""T'.r. .... '""7r:n I\~I=I\'T.

',\ 1'.~.

AREAS OF VLF SIGNALS

6. Coverage shown only for well-known stations. Other reliable, fully operational stations exist. For full informa· tion regarding VLF signals in your area consult Geonics Limited. Extensive field experience has proved that the above circles of coverage are very conservative and are actually much larger in extent.

EM 16 PROFILE over Lockport Mine property, Newfoundland

'60t

'SOt

'" '40% • .ot

.JO% • JOt

'20% RECONUISUCE liRE OttO • lOt

'IOt 'IOt

3W 4W -lOt -lOt

-20% -20t NO GIO\.OGY

-JOt AVAllAIU 'JO%

-40% -40%

Additional case histories on request. 6.0'

line cutting vlf rpt riggs twp...purpose of survey ground prospecting had revealed anomalous gold...

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